By Bivins S.B. No. 274
76R3661 DAK-F
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 26 to read as follows:
1-6 CHAPTER 26. CLASS ACTIONS INVOLVING JURISDICTION
1-7 OF STATE AGENCY
1-8 Sec. 26.001. DEFINITIONS. In this chapter:
1-9 (1) "Agency statute" means a statute of this state
1-10 administered or enforced by a state agency.
1-11 (2) "Claimant" means a party seeking recovery of
1-12 damages, including a plaintiff, counterclaimant, cross-claimant, or
1-13 third-party plaintiff.
1-14 (3) "Defendant" means a party from whom a claimant
1-15 seeks recovery of damages.
1-16 (4) "Rule" has the meaning assigned by Section
1-17 2001.003, Government Code.
1-18 (5) "State agency" means a board, commission,
1-19 department, office, or other agency that:
1-20 (A) is in the executive branch of state
1-21 government;
1-22 (B) was created by the constitution or a statute
1-23 of this state; and
1-24 (C) has statewide jurisdiction.
2-1 Sec. 26.002. APPLICABILITY. This chapter applies only to a
2-2 civil action in which:
2-3 (1) a claimant seeks recovery of damages on behalf of
2-4 a class of claimants; and
2-5 (2) the interpretation, application, or violation of
2-6 an agency statute or rule is involved for at least one defendant.
2-7 Sec. 26.003. HEARING. (a) A court may, on motion of a party
2-8 or its own motion, conduct a hearing to determine whether an action
2-9 should be dismissed or abated under this chapter.
2-10 (b) The court shall notify the named parties to the action
2-11 of the date and place of the hearing at least 21 days before the
2-12 date of the hearing.
2-13 Sec. 26.004. DISMISSAL FOR FAILURE TO EXHAUST ADMINISTRATIVE
2-14 REMEDIES. A court shall dismiss an action if the court determines
2-15 that a claimant failed to exhaust the claimant's administrative
2-16 remedies before filing the action.
2-17 Sec. 26.005. DISMISSAL OR ABATEMENT IF STATE AGENCY
2-18 JURISDICTION INVOLVED. (a) A court shall abate or dismiss an
2-19 action unless the court determines that:
2-20 (1) the interpretation, application, or violation of
2-21 an agency statute or rule involves only questions of law; and
2-22 (2) the agency may not make any findings of fact or
2-23 conclusions of law or issue any orders that would aid the court in
2-24 resolving the action.
2-25 (b) A court shall dismiss an action if the court determines
2-26 that a state agency may order in a contested case, as defined by
2-27 Section 2001.003, Government Code, all or part of the relief the
3-1 claimant seeks.
3-2 (c) A court that abates an action under this section:
3-3 (1) shall refer specific issues or claims within the
3-4 state agency's jurisdiction to the agency for action; and
3-5 (2) may direct the state agency to report to the court
3-6 periodically concerning the disposition of the matters referred to
3-7 the agency.
3-8 Sec. 26.006. PERIOD OF ABATEMENT. (a) The court shall
3-9 provide that the period of abatement is at least six months, or a
3-10 longer period of time that the court may specify, from the date the
3-11 court enters the order of abatement.
3-12 (b) The court may extend the period of abatement if the
3-13 court determines that the state agency is proceeding diligently to
3-14 resolve the matters the court referred to the agency.
3-15 (c) The period of abatement ends when:
3-16 (1) the state agency takes its final action on the
3-17 matters the court referred to the agency; or
3-18 (2) the court determines the agency is not proceeding
3-19 diligently to resolve the matters the court referred to the agency.
3-20 Sec. 26.007. PROCEEDING AFTER END OF ABATEMENT; DISMISSAL.
3-21 (a) At the end of the period of abatement, including any extension
3-22 granted by the court, the court may proceed with the action.
3-23 (b) A court shall dismiss an action if the court determines:
3-24 (1) the state agency granted all or a substantial part
3-25 of the relief sought by the claimant; or
3-26 (2) relief granted by the state agency is an adequate
3-27 substitute for the relief sought by the claimant.
4-1 (c) Relief awarded to a claimant may be adequate even if the
4-2 relief does not include exemplary damages, multiple damages,
4-3 attorney's fees, or costs of court.
4-4 SECTION 2. Subchapter A, Chapter 22, Government Code, is
4-5 amended by adding Section 22.015 to read as follows:
4-6 Sec. 22.015. CLASS ACTIONS. The supreme court by rule may
4-7 allow certification of a class of persons for the purpose of
4-8 settling an action that is different from the persons that may have
4-9 been certified as a class for the purpose of litigating the action.
4-10 SECTION 3. Section 22.225(d), Government Code, is amended to
4-11 read as follows:
4-12 (d) A writ of error is allowed from the supreme court for an
4-13 appeal from an interlocutory order described by Section 51.014(3)
4-14 or (6) [Section 51.014(6)], Civil Practice and Remedies Code.
4-15 SECTION 4. This Act takes effect September 1, 1999, and
4-16 applies only to an action commenced on or after that date. An
4-17 action that commenced before the effective date of this Act is
4-18 governed by the law applicable to the action immediately before the
4-19 effective date of this Act, and that law is continued in effect for
4-20 that purpose.
4-21 SECTION 5. The importance of this legislation and the
4-22 crowded condition of the calendars in both houses create an
4-23 emergency and an imperative public necessity that the
4-24 constitutional rule requiring bills to be read on three several
4-25 days in each house be suspended, and this rule is hereby suspended.