78R3823 KEG-D

By:  Mercer                                                       H.B. No. 995



A BILL TO BE ENTITLED

AN ACT

relating to the protection of public employees who report a waste of 
funds from retaliation by a state or local governmental entity.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 554.002, Government Code, is amended to 
read as follows: 
	Sec. 554.002.  RETALIATION PROHIBITED FOR REPORTING 
VIOLATION OF LAW OR WASTE OF FUNDS.  (a)  A state or local 
governmental entity may not suspend or terminate the employment of, 
or take other adverse personnel action against, a public employee 
who in good faith reports:
		(1)  a violation of law by the employing governmental 
entity or another public employee to an appropriate law enforcement 
authority; or
		(2)  a waste of funds by the employing governmental 
entity or another public employee to an appropriate governmental 
official or entity.
	(b)  A [In this section, a] report under Subsection (a)(1) is 
made to an appropriate law enforcement authority if the authority 
is a part of a state or local governmental entity or of the federal 
government that the employee in good faith believes is authorized 
to:
		(1)  regulate under or enforce the law alleged to be 
violated in the report;  or
		(2)  investigate or prosecute a violation of criminal 
law.                  
	(c)  The comptroller by rule shall define, in a manner that 
serves the public interest, "waste of funds" for the purposes of 
this section.
	SECTION 2.  Section 554.004, Government Code, is amended to 
read as follows: 
	Sec. 554.004.  BURDEN OF PROOF; PRESUMPTION; AFFIRMATIVE 
DEFENSE. (a) A public employee who sues under this chapter has the 
burden of proof, except that if the suspension or termination of, or 
adverse personnel action against, a public employee occurs not 
later than the 90th day after the date on which the employee reports 
a violation of law or a waste of funds, the suspension, termination, 
or adverse personnel action is presumed, subject to rebuttal, to be 
because the employee made the report.
	(b)  It is an affirmative defense to a suit under this 
chapter that the employing state or local governmental entity would 
have taken the action against the employee that forms the basis of 
the suit based solely on information, observation, or evidence that 
is not related to the fact that the employee made a report of a 
violation of law or a waste of funds protected under this chapter 
[of a violation of law].
	SECTION 3.  The heading to Chapter 554, Government Code, is 
amended to read as follows:

CHAPTER 554.  PROTECTION FOR REPORTING VIOLATION [VIOLATIONS] OF 
LAW OR WASTE OF FUNDS
	SECTION 4.  Not later than December 1, 2003, the comptroller 
of public accounts shall prescribe a meaning for the term "waste of 
funds" under Section 554.002, Government Code, as amended by this 
Act.
	SECTION 5.  This Act takes effect September 1, 2003, and 
applies to a report of a waste of funds by a public employee made on 
or after December 1, 2003.