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.