By Hunter of Nueces H.B. No. 1554
74R3365 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to indemnification of certain government employees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 102.002(a) and (c), Civil Practice and
1-5 Remedies Code, are amended to read as follows:
1-6 (a) A local government may pay actual damages awarded
1-7 against an employee of the local government if the damages:
1-8 (1) result from an act or omission of the employee in
1-9 the course and scope of his employment for the local government;
1-10 and
1-11 (2) arise from a cause of action for:
1-12 (A) negligence or gross negligence; or
1-13 (B) an intentional act, including a cause of
1-14 action for a deprivation of a right, privilege, or immunity
1-15 guaranteed by the constitution or laws of this state or of the
1-16 United States.
1-17 (c) A local government may not pay damages awarded against
1-18 an employee that<:>
1-19 <(1)> arise from a cause of action for official
1-20 misconduct. For purposes of this subsection, "official misconduct"
1-21 has the meaning assigned by Section 21.002, Local Government Code.
1-22 The term includes any act that would be an offense under Section
1-23 39.02, Penal Code<; or>
1-24 <(2) arise from a cause of action involving a wilful
2-1 or wrongful act or omission or an act or omission constituting
2-2 gross negligence>.
2-3 SECTION 2. Section 102.003, Civil Practice and Remedies
2-4 Code, is amended to read as follows:
2-5 Sec. 102.003. Maximum Payments. (a) Except as provided by
2-6 Subsection (b), payments <Payments> under this chapter by a local
2-7 government may not exceed:
2-8 (1) the limits on amounts recoverable against the
2-9 local government established by Section 101.023 for personal
2-10 injury, death, or property damage; or
2-11 (2) $100,000 to any one person or $300,000 for any
2-12 single occurrence in any other <the> case <of personal injury or
2-13 death or $10,000 for a single occurrence of property damage>.
2-14 (b) Notwithstanding any other law, a local government may
2-15 pay damages awarded against an employee in any amount if the
2-16 payment:
2-17 (1) is made with current funds that were not
2-18 appropriated to the local government by the state; and
2-19 (2) is in the interest of the local government as
2-20 determined by its governing body.
2-21 SECTION 3. Section 104.001, Civil Practice and Remedies
2-22 Code, is amended to read as follows:
2-23 Sec. 104.001. State Liability; Persons Covered. In a cause
2-24 of action based on conduct described in Section 104.002, the state
2-25 shall indemnify the following persons, without regard to whether
2-26 the persons performed their services for compensation, for actual
2-27 damages, court costs, and attorney's fees adjudged against:
3-1 (1) an employee, a member of the governing board, or
3-2 any other officer of a state agency, institution, or department;
3-3 (2) a former employee, former member of the governing
3-4 board, or any other former officer of a state agency, institution,
3-5 or department who was an employee or officer when the act or
3-6 omission on which the damages are based occurred;
3-7 (3) a physician or psychiatrist licensed in this state
3-8 who was performing services under a contract with any state agency,
3-9 institution, or department or a racing official performing services
3-10 under a contract with the Texas Racing Commission when the act or
3-11 omission on which the damages are based occurred;
3-12 (4) a person serving on the governing board of a
3-13 foundation, corporation, or association at the request and on
3-14 behalf of an institution of higher education, as that term is
3-15 defined by Section 61.003(8), Education Code, not including a
3-16 public junior college; or
3-17 (5) the estate of a person listed in this section.
3-18 SECTION 4. (a) This Act takes effect September 1, 1995.
3-19 (b) This Act applies only to a claim for indemnity arising
3-20 from conduct that occurs on or after the effective date of this
3-21 Act. A claim for indemnity arising from conduct that occurred
3-22 before the effective date of this Act is governed by the law as it
3-23 existed immediately before the effective date of this Act, and that
3-24 law is continued in effect for that purpose.
3-25 SECTION 5. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended.