By Haywood S.B. No. 1816 75R8168 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to class actions. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subtitle B, Title 2, Civil Practice and Remedies 1-5 Code, is amended by adding Chapter 24 to read as follows: 1-6 CHAPTER 24. CLASS ACTIONS 1-7 Sec. 24.001. DEFINITIONS. In this chapter: 1-8 (1) "Claimant" means the representative of the persons 1-9 seeking relief in a class action suit. 1-10 (2) "Defendant" means the representative of the 1-11 persons defending against a claim in a class action suit. 1-12 Sec. 24.002. SCOPE OF CHAPTER. This chapter applies to a 1-13 class action suit brought in any court in this state other than a 1-14 federal court. 1-15 Sec. 24.003. ATTORNEY'S FEES. (a) The court shall 1-16 determine the method of payment for the attorney representing the 1-17 class on certification of the class action. 1-18 (b) The court may determine as a method of payment: 1-19 (1) a flat fee; 1-20 (2) an hourly rate; or 1-21 (3) a percentage of a settlement or judgment amount. 1-22 Sec. 24.004. OPT-IN CLASS. (a) A court may allow, on 1-23 petition from claimant or defendant, that: 1-24 (1) a person eligible to become a member of the class 2-1 may become a member only if the person, after receiving proper 2-2 notice, affirmatively requests that the person be included in the 2-3 class; and 2-4 (2) an eligible person who does not affirmatively 2-5 request to be included in the class not become a member of the 2-6 class. 2-7 (b) Notice under this section must include an explanation of 2-8 the effect of the class action suit on the right of the person who 2-9 does not affirmatively request to be included in the class to seek 2-10 redress in another manner. 2-11 Sec. 24.005. FUTURE DAMAGES. (a) A court may not award 2-12 future damages in a class action suit unless it is shown to the 2-13 court that it is reasonably likely that the defendant will dissolve 2-14 or will otherwise be unable or unavailable to pay damages that may 2-15 be awarded in the future. 2-16 (b) A court that awards future damages under Subsection (a) 2-17 shall require that all future damages be paid: 2-18 (1) under an insurance policy; 2-19 (2) in annual payments, as determined by the court, 2-20 made to an escrow account; or 2-21 (3) subject to Subsection (c), in a lump-sum payment. 2-22 (c) The court may not allow future damages to be paid in a 2-23 lump-sum payment unless it is shown to the court that the damages 2-24 will be incurred before the first anniversary of the date the 2-25 lump-sum payment is made. 2-26 Sec. 24.006. CONFLICT WITH RULES. Notwithstanding Section 2-27 22.004, Government Code, the supreme court may not amend or adopt 3-1 rules in conflict with this chapter. 3-2 SECTION 2. This Act takes effect September 1, 1997, and 3-3 applies only to a class action suit certified on or after that 3-4 date. A class action suit certified before the effective date of 3-5 this Act is governed by the law applicable to the suit immediately 3-6 before the effective date of this Act, and that law is continued in 3-7 effect for that purpose. 3-8 SECTION 3. The importance of this legislation and the 3-9 crowded condition of the calendars in both houses create an 3-10 emergency and an imperative public necessity that the 3-11 constitutional rule requiring bills to be read on three several 3-12 days in each house be suspended, and this rule is hereby suspended.