By Dukes                                        H.B. No. 2507

      75R8639 SRC-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to false disparagement of a local governmental entity.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Title 4, Civil Practice and Remedies Code, is

 1-5     amended by adding Chapter 97 to read as follows:

 1-6                      CHAPTER 97.  FALSE DISPARAGEMENT

 1-7                       OF A LOCAL GOVERNMENTAL ENTITY

 1-8           Sec. 97.001.  DEFINITION.  In this chapter, "governmental

 1-9     entity" includes a municipality, county, school district, special

1-10     purpose district, or other political subdivision, including a mass

1-11     transit authority.

1-12           Sec. 97.002.  LIABILITY.  (a)  A person who is a public

1-13     official of a governmental entity is liable as provided by

1-14     Subsection (b) if:

1-15                 (1)  the person disseminates in any manner information

1-16     relating to another governmental entity or the governing board or

1-17     other official of another governmental entity;

1-18                 (2)  the person knows or has reason to believe the

1-19     information is false;

1-20                 (3)  the governmental entity that is the subject of the

1-21     information, or whose governing board or other official is the

1-22     subject of the information, is located in the same or an adjoining

1-23     county as the governmental entity of which the person is a public

1-24     official; and

 2-1                 (4)  the information states or implies that the

 2-2     governmental entity that is the subject of the information, or the

 2-3     governing board or other official that is the subject of the

 2-4     information, is guilty of mismanagement or is otherwise not worthy

 2-5     of public trust.

 2-6           (b)  A person who is liable under Subsection (a) is liable to

 2-7     the governmental entity that is the subject of the information, or

 2-8     to the board or other official that is the subject of the

 2-9     information, for damages and other appropriate relief arising from

2-10     the person's dissemination of the information.

2-11           Sec. 97.003.  PROOF.  In determining whether information is

2-12     false, the trier of fact shall consider whether the information was

2-13     based on reasonable and reliable inquiry, facts, or data.

2-14           Sec. 97.004.  PUBLIC RECORDS EXCLUSION.  A person is not

2-15     liable under this chapter  for the dissemination of information

2-16     consisting solely of information from the public records of the

2-17     governmental entity that is the subject of the information, or

2-18     whose board or other official is the subject of the information,

2-19     unless the manner in which the information is disseminated, or the

2-20     information is selected for dissemination, is for the purpose of

2-21     casting the governmental entity, board, or official in a false

2-22     light.

2-23           Sec. 97.005.  PERSONAL LIABILITY.  Liability under this

2-24     section is a personal liability of the individual even if the

2-25     information was disseminated by the person under the color of the

2-26     person's official status.  A governmental entity may not indemnify

2-27     or contribute to the defense of a person against whom liability is

 3-1     sought to be imposed under this chapter.

 3-2           SECTION 2.  This Act takes effect September 1, 1997, and

 3-3     applies only to information disseminated on or after that date.

 3-4           SECTION 3.  The importance of this legislation and the

 3-5     crowded condition of the calendars in both houses create an

 3-6     emergency and an imperative public necessity that the

 3-7     constitutional rule requiring bills to be read on three several

 3-8     days in each house be suspended, and this rule is hereby suspended.