HBA-CMT H.B. 254 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 254 By: Longoria Civil Practices 3/6/2001 Introduced BACKGROUND AND PURPOSE Currently, no statute specifically addresses violations of a person's rights, as protected by Article I of the Texas Constitution, by a governmental unit or an employee of the governmental unit, acting in an official capacity. When such a violation occurs, there are no established procedures available for seeking legal resolution. House Bill 254 establishes governmental liability for such violations and the procedures to be followed to obtain a legal resolution. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 254 amends the Civil Practice and Remedies Code to add a chapter relating to governmental liability for certain violations of the Texas Constitution. H.B. 254 provides that a governmental unit is liable for compensatory damages if the governmental unit or an employee of the governmental unit acting in official capacity knowingly by act or omission violates the rights of a person under Article I of the Texas Constitution (Bill of Rights), and the violation resulted in property damage, personal injury, or death. The bill requires an action to be brought by or on behalf of the person who suffered the property damage or personal injury. In the case of a violation resulting in death, the bill requires the action to be brought in accordance with specified provisions in the Civil Practice and Remedies Code. The bill prohibits recovery of exemplary damages in any of the above actions. The bill waives and abolishes sovereign immunity to the extent liability is created under the chapter. The bill authorizes governmental units to purchase insurance policies protecting the unit from claims brought under the chapter and relinquish to an insurer the right to investigate, defend, compromise, and settle claims. The bill does not apply to a claim based on an action of the legislature, member of the legislature, a state court, or member of the state court acting in official capacity and does not apply to a claim based on the legislative or judicial functions of a governmental unit. H.B. 254 sets forth notice, jurisdictional, and procedural requirements for filing a suit under the chapter. In a suit against the state, the bill requires that citation be served on the secretary of state. The bill requires the attorney general to defend each action brought against a governmental unit that has authority and jurisdiction coextensive with the geographical limits of the state. If the jurisdiction of the governmental unit is smaller than the entire state the unit is required to employ its own counsel. H.B. 254 authorizes a cause of action to be settled and compromised by the governmental unit if, in a case involving the state, the governor determines that the compromise is in the best interests of the governmental unit, or in other cases, the governing body of the governmental unit determines that the compromise is in the best interests of the governmental unit. H.B. 254 sets forth provisions relating to the payment and collection of judgments, including the authorization of a governmental unit to levy ad valorem taxes for the payment of the judgement. EFFECTIVE DATE September 1, 2001.