By Hamric H.B. No. 1775 76R3724 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to civil actions against and the liability of governmental 1-3 officials for damages arising from their decisions and 1-4 communications. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Title 5, Civil Practice and Remedies Code, is 1-7 amended by adding Chapter 113 to read as follows: 1-8 CHAPTER 113. DECISIONS AND COMMUNICATIONS BY 1-9 GOVERNMENTAL OFFICIALS 1-10 Sec. 113.001. DEFINITIONS. In this chapter: 1-11 (1) "Claimant" means a party seeking recovery of 1-12 damages or injunctive or declaratory relief, including a plaintiff, 1-13 counterclaimant, cross-claimant, or third-party plaintiff. 1-14 (2) "Defendant" means a party from whom a claimant 1-15 seeks recovery of damages or injunctive or declaratory relief. 1-16 (3) "Governmental agency" means: 1-17 (A) this state, another state of the United 1-18 States, or the United States; 1-19 (B) a court, institution, agency, political 1-20 subdivision, or organ of government established by the constitution 1-21 or laws of this state, of another state of the United States, or of 1-22 the United States, including a department, bureau, board, 1-23 commission, office, or council; or 1-24 (C) a law enforcement agency. 2-1 Sec. 113.002. LIMITATION ON LIABILITY. (a) Except as 2-2 provided by Section 113.003, a person who is an elected or 2-3 appointed official of a governmental agency is not liable in an 2-4 individual capacity for monetary damages or subject to injunctive 2-5 or declaratory relief arising from: 2-6 (1) a decision by the person in the person's capacity 2-7 as an elected or appointed official; or 2-8 (2) a communication to any person, including a 2-9 governmental agency, a public official, or public information 2-10 media, that relates to a matter reasonably of concern to the person 2-11 in the person's capacity as an elected or appointed official. 2-12 (b) The limitation provided by Subsection (a): 2-13 (1) does not limit liability of an elected or 2-14 appointed official in the person's official capacity; and 2-15 (2) is in addition to any other defense or limitation 2-16 on liability conferred by applicable law. 2-17 (c) This section does not create a cause of action. 2-18 Sec. 113.003. GOOD FAITH REQUIRED. (a) The limitation on 2-19 liability in Section 113.002 does not apply if a claimant shows by 2-20 clear and convincing evidence that the person did not make the 2-21 decision or communication in good faith. 2-22 (b) A communication by a person is made in good faith if, at 2-23 the time the communication was made, the person had a reasonable 2-24 basis in fact for making the communication. 2-25 (c) A decision is made by a person in good faith if, at the 2-26 time the decision was made, the person had a reasonable basis to 2-27 believe that the decision: 3-1 (1) was authorized by law; and 3-2 (2) was in the best interest of the governmental 3-3 agency of which the person is an elected or appointed official. 3-4 Sec. 113.004. BURDEN OF PLEADING. (a) The claimant in an 3-5 action arising from a communication or decision described in 3-6 Section 113.002 has the burden of pleading with particularity all 3-7 material facts that the claimant contends establish the right to 3-8 recovery, including all facts supporting the contention that the 3-9 communication or decision was not made in good faith. 3-10 (b) Each fact asserted by the claimant in the pleading must 3-11 be verified by affidavit made on personal knowledge unless the 3-12 truth of the fact appears of record. 3-13 (c) The court shall, on motion by the defendant or its own 3-14 motion, review the pleadings to determine compliance with this 3-15 section. 3-16 Sec. 113.005. VENUE. Venue for an action arising from a 3-17 communication or decision described in Section 113.002 is only in: 3-18 (1) if the defendant is a natural person, the county 3-19 of the defendant's residence; 3-20 (2) if the defendant is not a natural person, the 3-21 county in which the defendant's principal office is located; or 3-22 (3) if the defendant is a natural person who is not a 3-23 resident of this state or if the defendant is not a natural person 3-24 and does not have an office in this state, the county in which the 3-25 communication or decision was made. 3-26 Sec. 113.006. MOTION FOR SECURITY FOR COSTS AND EXPENSES. 3-27 (a) In an action arising from a communication or decision described 4-1 in Section 113.002, the defendant may at any time file a motion 4-2 seeking security for costs and litigation expenses. 4-3 (b) The court shall hear the motion on or before the 30th 4-4 day after the date it is filed unless the court determines that 4-5 docket conditions require a later hearing. 4-6 (c) The court shall grant the motion unless the claimant 4-7 proves, by a preponderance of the evidence, that the communication 4-8 or decision was not made in good faith. 4-9 (d) On granting the motion, the court shall require the 4-10 claimant to post security in an amount sufficient to secure the 4-11 defendant's: 4-12 (1) court costs; 4-13 (2) reasonable attorney's fees; 4-14 (3) reasonable expert witness fees; and 4-15 (4) other reasonable litigation expenses. 4-16 (e) The court may review and adjust the amount of the 4-17 security at any time on motion of any party. 4-18 (f) The court shall promptly dismiss the action with 4-19 prejudice if the claimant does not post security in the required 4-20 amount on or before the 14th day after the date the court signs the 4-21 order requiring security. 4-22 (g) During the pendency of a motion for security and pending 4-23 the posting of any security required by the motion, all discovery 4-24 proceedings are stayed. The court may, on motion and for good 4-25 cause shown, permit certain discovery that it specifies to be 4-26 conducted. 4-27 Sec. 113.007. LIABILITY FOR COSTS, EXPENSES, AND DAMAGES. 5-1 (a) A defendant who prevails in an action arising from a 5-2 communication or decision described in Section 113.002 may recover 5-3 from the claimant the defendant's: 5-4 (1) court costs; 5-5 (2) reasonable attorney's fees; 5-6 (3) reasonable expert witness fees; and 5-7 (4) other reasonable litigation expenses. 5-8 (b) In addition to recovering under Subsection (a), a 5-9 defendant may recover from the claimant: 5-10 (1) actual damages if the defendant shows that the 5-11 action was brought in violation of Chapter 10; and 5-12 (2) exemplary damages if the defendant shows that the 5-13 action was brought: 5-14 (A) for the purpose of harassment; 5-15 (B) to inhibit the defendant's communication or 5-16 decision; 5-17 (C) to retaliate for the defendant's 5-18 communication or decision; 5-19 (D) to interfere with the defendant's exercise 5-20 of protected constitutional rights; or 5-21 (E) to wrongfully injure the defendant in 5-22 another manner. 5-23 SECTION 2. This Act takes effect September 1, 1999, and 5-24 applies only to a cause of action that commences on or after that 5-25 date. An action that commenced before the effective date of this 5-26 Act is governed by the law applicable to the action immediately 5-27 before the effective date of this Act, and that law is continued in 6-1 effect for that purpose. 6-2 SECTION 3. The importance of this legislation and the 6-3 crowded condition of the calendars in both houses create an 6-4 emergency and an imperative public necessity that the 6-5 constitutional rule requiring bills to be read on three several 6-6 days in each house be suspended, and this rule is hereby suspended.