By Luna                                                S.B. No. 234
       74R3732 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to claims against the state.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 5, Civil Practice and Remedies Code, is
    1-5  amended by adding Chapter 111 to read as follows:
    1-6                CHAPTER 111.  CLAIMS AGAINST THE STATE
    1-7                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-8        Sec. 111.001.  DEFINITIONS.  In this chapter:
    1-9              (1)  "Claimant" means a person with a claim described
   1-10  by Section 111.002(a).
   1-11              (2)  "Unit of state government" means the state or an
   1-12  agency, department, commission, bureau, board, office, council,
   1-13  court, or other entity that is in any branch of state government
   1-14  and that is created by the constitution or a statute of this state,
   1-15  including a university system or institution of higher education as
   1-16  defined by Section 61.003, Education Code.  The term does not
   1-17  include a county, municipality, court of a county or municipality,
   1-18  special purpose district, or other political subdivision of this
   1-19  state.
   1-20        Sec. 111.002.  SCOPE OF CHAPTER.  (a)  This chapter applies
   1-21  to a claim made against a unit of state government for which, if
   1-22  the facts on which the claim is based were true and if the unit of
   1-23  state government were liable to the same extent as a private person
   1-24  under the laws of this state, the unit of state government would be
    2-1  liable.
    2-2        (b)  This chapter applies without regard to the legal theory
    2-3  on which the claim is based.
    2-4        (c)  This chapter does not apply to a claim brought under
    2-5  Chapter 554, Government Code, or to a claim for which a unit of
    2-6  state government may be held liable under another law.
    2-7        Sec. 111.003.  SOVEREIGN IMMUNITY PRESERVED.  (a)  This
    2-8  chapter does not waive the state's sovereign immunity from suit.
    2-9        (b)  This chapter waives the state's sovereign immunity from
   2-10  liability only to the extent damages are awarded against a unit of
   2-11  state government under Subchapter B.
   2-12          (Sections 111.004-111.010 reserved for  expansion
   2-13                  SUBCHAPTER B.  BINDING ARBITRATION
   2-14        Sec. 111.011.  ARBITRATION AUTHORIZED.  A claimant may
   2-15  obtain an award of damages against a unit of state government
   2-16  through binding arbitration to the extent authorized by this
   2-17  subchapter.
   2-18        Sec. 111.012.  NOTICE; REQUEST FOR ARBITRATION.  A claimant
   2-19  may notify a unit of state government of a claim and request
   2-20  arbitration under this chapter.  The claimant shall mail a copy of
   2-21  the notice to the office of the attorney general in Travis County.
   2-22        Sec. 111.013.  SUBMISSION OF CLAIM TO ARBITRATION.  Not later
   2-23  than the 90th day after the date on which the attorney general
   2-24  receives the notice, the attorney general shall submit the claim to
   2-25  arbitration.
   2-26        Sec. 111.014.  ARBITRATION.  An arbitration under this
   2-27  chapter between the unit of state government and another person
    3-1  shall be binding arbitration conducted by a panel of three
    3-2  arbitrators.
    3-3        Sec. 111.015.  ARBITRATION PROCEDURES.  (a)  The panel shall
    3-4  be selected and the arbitration shall be decided in accordance with
    3-5  rules adopted by the chief administrative law judge of the State
    3-6  Office of Administrative Hearings.  The chief administrative law
    3-7  judge may appoint an advisory panel to assist in development of the
    3-8  rules.
    3-9        (b)  The attorney general shall represent the unit of state
   3-10  government in an arbitration conducted under this chapter.  The
   3-11  claimant may be represented by an attorney.
   3-12        (c)  The claimant shall pay the cost of an arbitration
   3-13  conducted under this chapter.
   3-14        Sec. 111.016.  ARBITRATION AWARD.  (a)  The arbitration panel
   3-15  shall make an award of damages to a claimant if the panel finds
   3-16  that, under the laws of this state, the unit of state government
   3-17  would be liable to the claimant if the unit of state government
   3-18  were a private person.
   3-19        (b)  An arbitration panel may not make an award of exemplary
   3-20  damages under this subchapter.
   3-21        Sec. 111.017.  APPEAL.  A party to an arbitration conducted
   3-22  under this chapter may not appeal the award of the arbitration
   3-23  panel.
   3-24           (Sections 111.018-111.020 reserved for expansion
   3-25         SUBCHAPTER C.  PAYMENT OF AWARD OF ARBITRATION PANEL
   3-26        Sec. 111.021.  APPROPRIATION REQUIRED.  An award of an
   3-27  arbitration panel issued under this chapter is payable only by a
    4-1  legislative appropriation for the claim.
    4-2        SECTION 2.  Section 101.001(2), Civil Practice and Remedies
    4-3  Code, is amended to read as follows:
    4-4              (2)  "Governmental unit" means<:>
    4-5                    <(A)  this state and all the several agencies of
    4-6  government that collectively constitute the government of this
    4-7  state, including other agencies bearing different designations, and
    4-8  all departments, bureaus, boards, commissions, offices, agencies,
    4-9  councils, and courts;>
   4-10                    <(B)>  a political subdivision of this state,
   4-11  including any city, county, school district, junior college
   4-12  district, levee improvement district, drainage district, irrigation
   4-13  district, water improvement district, water control and improvement
   4-14  district, water control and preservation district, freshwater
   4-15  supply district, navigation district, conservation and reclamation
   4-16  district, soil conservation district, communication district,
   4-17  public health district, and river authority<; and>
   4-18                    <(C)  any other institution, agency, or organ of
   4-19  government the status and authority of which are derived from the
   4-20  Constitution of  Texas or from laws passed by the legislature under
   4-21  the constitution>.
   4-22        SECTION 3.  Section 101.023, Civil Practice and Remedies
   4-23  Code, is amended to read as follows:
   4-24        Sec. 101.023.  LIMITATION ON AMOUNT OF LIABILITY.  (a)
   4-25  <Liability of the state government under this chapter is limited to
   4-26  money damages in a maximum amount of $250,000 for each person and
   4-27  $500,000 for each single occurrence for bodily injury or death and
    5-1  $100,000 for each single occurrence for injury to or destruction of
    5-2  property.>
    5-3        <(b)>  Except as provided by Subsection (b) <(c)>, liability
    5-4  of a governmental unit <of local government> under this chapter is
    5-5  limited to money damages in a maximum amount of $100,000 for each
    5-6  person and $300,000 for each single occurrence for bodily injury or
    5-7  death and $100,000 for each single occurrence for injury to or
    5-8  destruction of property.
    5-9        (b) <(c)>  Liability of a municipality under this chapter is
   5-10  limited to money damages in a maximum amount of $250,000 for each
   5-11  person and $500,000 for each single occurrence for bodily injury or
   5-12  death and $100,000 for each single occurrence for injury to or
   5-13  destruction of property.
   5-14        SECTION 4.  Section 101.027(c), Civil Practice and Remedies
   5-15  Code, is amended to read as follows:
   5-16        (c)  A governmental unit <This state or a political
   5-17  subdivision of the state> may not require an employee to purchase
   5-18  liability insurance as a condition of employment if the
   5-19  governmental unit <state or the political subdivision> is insured
   5-20  by a liability insurance policy.
   5-21        SECTION 5.  Section 101.052, Civil Practice and Remedies
   5-22  Code, is amended to read as follows:
   5-23        Sec. 101.052.  LEGISLATIVE.  This chapter does not apply to a
   5-24  claim based on <an act or omission of the legislature or a member
   5-25  of the legislature acting in his official capacity or to> the
   5-26  legislative functions of a governmental unit.
   5-27        SECTION 6.  Section 101.102(c), Civil Practice and Remedies
    6-1  Code, is amended to read as follows:
    6-2        (c)  In a suit under this chapter <against the state,
    6-3  citation must be served on the secretary of state.  In other
    6-4  suits>, citation must be served as in other civil cases unless no
    6-5  method of service is provided by law, in which case service may be
    6-6  on the administrative head of the governmental unit being sued.  If
    6-7  the administrative head of the governmental unit is not available,
    6-8  the court in which the suit is pending may authorize service in any
    6-9  manner that affords the governmental unit a fair opportunity to
   6-10  answer and defend the suit.
   6-11        SECTION 7.  Section  101.103, Civil Practice and Remedies
   6-12  Code, is amended to read as follows:
   6-13        Sec. 101.103.  LEGAL REPRESENTATION.  <(a)  The attorney
   6-14  general shall defend each action brought under this chapter against
   6-15  a governmental unit that has authority and jurisdiction coextensive
   6-16  with the geographical limits of this state.  The attorney general
   6-17  may be fully assisted by counsel provided by an insurance carrier.>
   6-18        <(b)>  A governmental unit <having an area of jurisdiction
   6-19  smaller than the entire state> shall employ its own counsel
   6-20  according to the organic act under which the unit operates, unless
   6-21  the governmental unit has relinquished to an insurance carrier the
   6-22  right to defend against the claim.
   6-23        SECTION 8.  Section 101.105(a), Civil Practice and Remedies
   6-24  Code, is amended to read as follows:
   6-25        (a)  A cause of action under this chapter may be settled and
   6-26  compromised by the governmental unit if<, in a case involving the
   6-27  state the governor determines, or if, in other cases> the governing
    7-1  body of the governmental unit determines<,> that the compromise is
    7-2  in the best interests of the governmental unit.
    7-3        SECTION 9.  The following laws are repealed:
    7-4              (1)  Section 101.054, Civil Practice and Remedies Code;
    7-5              (2)  Section 101.109, Civil Practice and Remedies Code;
    7-6  and
    7-7              (3)  Chapter 107, Civil Practice and Remedies Code.
    7-8        SECTION 10.  This Act takes effect September 1, 1995, and
    7-9  applies only to a claim that accrues on or after that date.  A
   7-10  claim that accrued before the effective date of this Act is
   7-11  governed by the law applicable to the claim immediately before the
   7-12  effective date of this Act, and that law is continued in effect for
   7-13  that purpose.
   7-14        SECTION 11.  The importance of this legislation and the
   7-15  crowded condition of the calendars in both houses create an
   7-16  emergency and an imperative public necessity that the
   7-17  constitutional rule requiring bills to be read on three several
   7-18  days in each house be suspended, and this rule is hereby suspended.