H.B. No. 175
    1-1                                AN ACT
    1-2  relating to the protection of a public employee who reports a
    1-3  violation of law.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 554.001, Government Code, is amended to
    1-6  read as follows:
    1-7        Sec. 554.001.  DEFINITIONS.  In this chapter:
    1-8              (1)  "Law" means:
    1-9                    (A)  a state or federal statute;
   1-10                    (B)  an ordinance of a local governmental entity
   1-11  <body>; or
   1-12                    (C)  a rule adopted under a statute or ordinance.
   1-13              (2)  "Local governmental entity <government>" means a
   1-14  political subdivision of the state, including a:
   1-15                    (A)  <a> county;
   1-16                    (B)  <a> municipality;
   1-17                    (C)  <a> public school district; or
   1-18                    (D)  <a> special-purpose district or authority.
   1-19              (3)  "Personnel action" means an action that affects a
   1-20  public employee's compensation, promotion, demotion, transfer, work
   1-21  assignment, or performance evaluation.
   1-22              (4) <(3)>  "Public employee" means an employee or
   1-23  appointed officer <a person> other than an independent contractor
   1-24  who is paid to perform<, for compensation, performs> services for a
    2-1  state or local governmental entity <body under a written or oral
    2-2  contract>.
    2-3              (5) <(4)>  "State governmental entity <agency>" means:
    2-4                    (A)  a board, commission, department, office, or
    2-5  other agency in the executive branch of state government, created
    2-6  under the constitution or a statute of the state, including an
    2-7  institution of higher education, as defined by Section 61.003,
    2-8  Education Code;
    2-9                    (B)  the legislature or a legislative agency; or
   2-10                    (C)  the Texas Supreme Court, the Texas Court of
   2-11  Criminal Appeals, a court of appeals, a state judicial agency, or
   2-12  the State Bar of Texas.
   2-13        SECTION 2.  Section 554.002, Government Code, is amended to
   2-14  read as follows:
   2-15        Sec. 554.002.  RETALIATION PROHIBITED FOR REPORTING VIOLATION
   2-16  OF LAW.  (a)  A state <agency> or local governmental entity
   2-17  <government> may not suspend or terminate the employment of, or
   2-18  take other adverse personnel action <discriminate> against, a
   2-19  public employee who in good faith reports a violation of law by the
   2-20  employing governmental entity or another public employee to an
   2-21  appropriate law enforcement authority.
   2-22        (b)  In this section, a report is made to an appropriate law
   2-23  enforcement authority if the authority is a part of a state or
   2-24  local governmental entity or of the federal government that the
   2-25  employee in good faith believes is authorized to:
   2-26              (1)  regulate under or enforce the law alleged to be
   2-27  violated in the report; or
    3-1              (2)  investigate or prosecute a violation of criminal
    3-2  law.
    3-3        SECTION 3.  Section 554.003, Government Code, is amended to
    3-4  read as follows:
    3-5        Sec. 554.003.  RELIEF AVAILABLE TO PUBLIC EMPLOYEE.  (a)  A
    3-6  public employee whose employment is suspended or terminated or who
    3-7  is subjected to an adverse personnel action <discriminated against>
    3-8  in violation of Section 554.002 is entitled to sue for:
    3-9              (1)  injunctive relief;
   3-10              (2)  actual damages;
   3-11              (3)  <exemplary damages;>
   3-12              <(4)>  court costs; and
   3-13              (4) <(5)>  reasonable attorney fees.
   3-14        (b)  In addition to relief under Subsection (a), a public
   3-15  employee whose employment is suspended or terminated in violation
   3-16  of this chapter is entitled to:
   3-17              (1)  reinstatement to the employee's former position or
   3-18  an equivalent position;
   3-19              (2)  compensation for wages lost during the period of
   3-20  suspension or termination; and
   3-21              (3)  reinstatement of fringe benefits and seniority
   3-22  rights lost because of the suspension or termination.
   3-23        (c)  In a suit under this chapter against an employing state
   3-24  or local governmental entity, a public employee may not recover
   3-25  compensatory damages for future pecuniary losses, emotional pain,
   3-26  suffering, inconvenience, mental anguish, loss of enjoyment of
   3-27  life, and other nonpecuniary losses in an amount that exceeds:
    4-1              (1)  $50,000, if the employing state or local
    4-2  governmental entity has fewer than 101 employees in each of 20 or
    4-3  more calendar weeks in the calendar year in which the suit is filed
    4-4  or in the preceding year;
    4-5              (2)  $100,000, if the employing state or local
    4-6  governmental entity has more than 100 and fewer than 201 employees
    4-7  in each of 20 or more calendar weeks in the calendar year in which
    4-8  the suit is filed or in the preceding year;
    4-9              (3)  $200,000, if the employing state or local
   4-10  governmental entity has more than 200 and fewer than 501 employees
   4-11  in each of 20 or more calendar weeks in the calendar year in which
   4-12  the suit is filed or in the preceding year; and
   4-13              (4)  $250,000, if the employing state or local
   4-14  governmental entity has more than 500 employees in each of 20 or
   4-15  more calendar weeks in the calendar year in which the suit is filed
   4-16  or in the preceding year.
   4-17        (d)  If more than one subdivision of Subsection (c) applies
   4-18  to an employing state or local governmental entity, the amount of
   4-19  monetary damages that may be recovered from the entity in a suit
   4-20  brought under this chapter is governed by the applicable provision
   4-21  that provides the highest damage award.
   4-22        SECTION 4.  Chapter 554, Government Code, is amended by
   4-23  adding Section 554.0035 to read as follows:
   4-24        Sec. 554.0035.  WAIVER OF IMMUNITY.  A public employee who
   4-25  alleges a violation of this chapter may sue the employing state or
   4-26  local governmental entity for the relief provided by this chapter.
   4-27  Sovereign immunity is waived and abolished to the extent of
    5-1  liability for the relief allowed under this chapter for a violation
    5-2  of this chapter.
    5-3        SECTION 5.  Section 554.004, Government Code, is amended to
    5-4  read as follows:
    5-5        Sec. 554.004.  BURDEN OF PROOF; PRESUMPTION; AFFIRMATIVE
    5-6  DEFENSE.  (a)  A public employee who sues under this chapter has
    5-7  the burden of proof, except that if the suspension or termination
    5-8  of, or adverse personnel action against, a public employee occurs
    5-9  not later than the 90th day after the date on which the employee
   5-10  reports a violation of law, the suspension, <or> termination, or
   5-11  adverse personnel action is presumed, subject to rebuttal, to be
   5-12  because the employee made the report.
   5-13        (b)  It is an affirmative defense to a suit under this
   5-14  chapter that the employing state or local governmental entity would
   5-15  have taken the action against the employee that forms the basis of
   5-16  the suit based solely on information, observation, or evidence that
   5-17  is not related to the fact that the employee made a report
   5-18  protected under this chapter of a violation of law.
   5-19        SECTION 6.  Section 554.006, Government Code, is amended to
   5-20  read as follows:
   5-21        Sec. 554.006.  USE <EXHAUSTION> OF GRIEVANCE OR APPEAL
   5-22  PROCEDURES.  (a)  A public <An> employee <of a local government>
   5-23  must initiate action under the <exhaust that government's>
   5-24  grievance or appeal procedures of the employing state or local
   5-25  governmental entity relating to suspension or termination of
   5-26  employment or adverse personnel action <unlawful discrimination>
   5-27  before suing under this chapter.
    6-1        (b)  The employee must invoke the applicable grievance or
    6-2  appeal procedures not later than the 90th day after the date on
    6-3  which the alleged violation of this chapter:
    6-4              (1)  occurred; or
    6-5              (2)  was discovered by the employee through reasonable
    6-6  diligence.
    6-7        (c)  Time used by the employee in acting under <exhausting>
    6-8  the grievance or appeal procedures is excluded, except as provided
    6-9  by Subsection (d), from the period established by Section 554.005.
   6-10        (d)  If a final decision is not rendered before the 61st day
   6-11  after the date procedures are initiated under Subsection (a), the
   6-12  employee may elect to:
   6-13              (1)  exhaust the applicable procedures under Subsection
   6-14  (a), in which event the employee must sue not later than the 30th
   6-15  day after the date those procedures are exhausted to obtain relief
   6-16  under this chapter; or
   6-17              (2)  terminate procedures under Subsection (a), in
   6-18  which event the employee must sue within the time remaining under
   6-19  Section 554.005 to obtain relief under this chapter <This section
   6-20  does not apply if a final decision is not rendered before the 31st
   6-21  day after the date on which the employee initiated the grievance or
   6-22  appeal>.
   6-23        SECTION 7.  Section 554.007, Government Code, is amended to
   6-24  read as follows:
   6-25        Sec. 554.007.  WHERE SUIT BROUGHT.  (a)  A public employee of
   6-26  a state governmental entity may sue under this chapter in a
   6-27  district court of the county in which the cause of action arises
    7-1  <employee resides> or in a district court of Travis County.
    7-2        (b)  A public employee of a local governmental entity may sue
    7-3  under this chapter in a district court of the county in which the
    7-4  cause of action arises or in a district court of any county in the
    7-5  same geographic area that has established with the county in which
    7-6  the cause of action arises a council of governments or other
    7-7  regional commission under Chapter 391, Local Government Code.
    7-8        SECTION 8.  Section 554.008, Government Code, is amended by
    7-9  amending Subsection (a) and by adding Subsections (d) and (e) to
   7-10  read as follows:
   7-11        (a)  A supervisor who in violation of this chapter suspends
   7-12  or terminates the employment of a public employee or takes an
   7-13  adverse personnel action against the employee <in violation of this
   7-14  chapter> is liable for a civil penalty not to exceed $15,000
   7-15  <$1,000>.
   7-16        (d)  A civil penalty assessed under this section shall be
   7-17  paid by the supervisor and may not be paid by the employing
   7-18  governmental entity.
   7-19        (e)  The personal liability of a supervisor or other
   7-20  individual under this chapter is limited to the civil penalty that
   7-21  may be assessed under this section.
   7-22        SECTION 9.  Section 554.009(a), Government Code, is amended
   7-23  to read as follows:
   7-24        (a)  A state <agency> or local governmental entity
   7-25  <government> shall inform its employees of their rights under this
   7-26  chapter by posting a sign in a prominent location in the workplace.
   7-27        SECTION 10.  Chapter 554, Government Code, is amended by
    8-1  adding Section 554.010 to read as follows:
    8-2        Sec. 554.010.  AUDIT OF STATE GOVERNMENTAL ENTITY AFTER SUIT.
    8-3  (a)  At the conclusion of a suit that is brought under this chapter
    8-4  against a state governmental entity subject to audit under Section
    8-5  321.013 and in which the entity is required to pay $10,000 or more
    8-6  under the terms of a settlement agreement or final judgment, the
    8-7  attorney general shall provide to the state auditor's office a
    8-8  brief memorandum describing the facts and disposition of the suit.
    8-9        (b)  Not later than the 90th day after the date on which the
   8-10  state auditor's office receives the memorandum required by
   8-11  Subsection (a), the auditor may audit or investigate the state
   8-12  governmental entity to determine any changes necessary to correct
   8-13  the problems that gave rise to the whistleblower suit and shall
   8-14  recommend such changes to the Legislative Audit Committee, the
   8-15  Legislative Budget Board, and the governing board or chief
   8-16  executive officer of the entity involved.  In conducting the audit
   8-17  or investigation, the auditor shall have access to all records
   8-18  pertaining to the suit.
   8-19        SECTION 11.  The changes in law made by this Act apply only
   8-20  to a suspension or termination of employment of a public employee
   8-21  or to other adverse personnel action taken against a public
   8-22  employee on or after the effective date of this Act.  A suspension
   8-23  or termination of employment of a public employee or other adverse
   8-24  personnel action against the employee, within the meaning of the
   8-25  law changed by this Act, that is taken before the effective date of
   8-26  this Act is governed by the law existing on the date the
   8-27  suspension, termination, or other adverse personnel action
    9-1  occurred, and the former law is continued in effect for that
    9-2  purpose.
    9-3        SECTION 12.  The importance of this legislation and the
    9-4  crowded condition of the calendars in both houses create an
    9-5  emergency and an imperative public necessity that the
    9-6  constitutional rule requiring bills to be read on three several
    9-7  days in each house be suspended, and this rule is hereby suspended,
    9-8  and that this Act take effect and be in force from and after its
    9-9  passage, and it is so enacted.