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.