80R8570 KSD-F

By: Macias H.B. No. 2537

A BILL TO BE ENTITLED

AN ACT

relating to liability for hiring an employee or an independent contractor who has been convicted of a nonviolent criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 6, Civil Practice and Remedies Code, is amended by adding Chapter 145A to read as follows: CHAPTER 145A. LIABILITY FOR HIRING CERTAIN EMPLOYEES AND INDEPENDENT CONTRACTORS

Sec. 145A.001. DEFINITIONS. In this chapter:

(1) "Employee" means a person other than an independent contractor who, for compensation, performs services for an employer under a written or oral contract for hire, whether express or implied.

(2) "Independent contractor" has the meaning assigned by Section 91.001, Labor Code.

(3) "Nonviolent offense" means an offense other than:

(A) an offense under Title 5, Penal Code, or Chapter 29, Penal Code; or

(B) any offense conviction for which registration as a sex offender is required under Chapter 62, Code of Criminal Procedure.

Sec. 145A.002. LIMITATIONS ON LIABILITY FOR HIRING EMPLOYEE OR INDEPENDENT CONTRACTOR CONVICTED OF A NONVIOLENT OFFENSE. (a) A cause of action may not be brought against an employer, general contractor, premises owner, or other third party solely for hiring an employee or independent contractor who has been convicted of a nonviolent offense.

(b) In a negligent hiring action against an employer, general contractor, premises owner, or other third party for the acts of an employee or independent contractor that is based on a theory of liability other than that described by Subsection (a), the fact that the employee or independent contractor was convicted of a nonviolent offense before the employee or independent contractor's employment or contractual obligation with the employer, general contractor, premises owner, or other third party, as applicable, may not be introduced into evidence.

(c) This section does not preclude any existing cause of action for failure of an employer or other person to provide adequate supervision of an employee or independent contractor, except that the fact that the employee or independent contractor has been convicted of a nonviolent criminal offense may be introduced into evidence in the suit only if the employer:

(1) knew of the conviction or was grossly negligent in not knowing of the conviction; and

(2) the conviction was directly related to the nature of the employee's or independent contractor's work and the conduct that gave rise to the alleged injury that is the basis of the suit.

(d) The protections provided to an employer, general contractor, premises owner, or third party under this section do not apply in a suit concerning:

(1) the misuse of funds or property of a person other than the employer, general contractor, premises owner, or third party, by an employee or independent contractor, if, on the date the employee or independent contractor was hired, the employee or independent contractor had been convicted of a crime that includes fraud or the misuse of funds or property as an element of the offense, and it was foreseeable that the position for which the employee or independent contractor was hired would involve discharging a fiduciary responsibility in the management of funds or property;

(2) the misappropriation of funds by an employee or independent contractor, if the employee or independent contractor was hired as an attorney and, on the date the employee or independent contractor was hired, the employee or independent contractor had been convicted of a crime that includes fraud or the misuse of funds or property as an element of the offense; or

(3) a violent offense or an improper use of excessive force by an employee or independent contractor, if the employee or independent contractor was hired to serve as a law enforcement officer or security guard.

(e) This section applies to the hiring of an individual as a guard at a prison or jail facility.

(f) This section may not be construed to create a cause of action or expand any existing cause of action.

SECTION 2. The changes in law made by this Act apply only to a cause of action that accrues on or after the effective date of this Act. A cause of action that accrues before the effective date of this Act is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2007.