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A BILL TO BE ENTITLED
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AN ACT
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relating to certain unlawful acts involving state money or property |
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and actions by the state and private persons to prosecute those |
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acts; providing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 10, Government Code, is |
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amended by adding Chapter 2116 to read as follows: |
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CHAPTER 2116. UNLAWFUL ACTS INVOLVING STATE MONEY OR PROPERTY |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 2116.001. DEFINITIONS. In this chapter: |
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(1) "Claim" includes any request or demand, under a |
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contract or otherwise, for state money or property. |
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(2) "Documentary material" means: |
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(A) the original or a copy of any book, record, |
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report, memorandum, paper, communication, tabulation, chart, or |
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other document; |
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(B) data compilations stored in or accessible |
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through computer or other information retrieval systems, together |
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with instructions and all other materials necessary to use or |
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interpret the data compilations; and |
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(C) any product of discovery. |
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(3) "Product of discovery" means: |
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(A) the original or a copy of a deposition, |
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interrogatory, document, thing, result of inspection of land or |
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other property, examination, or admission that is obtained by any |
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method of discovery in a judicial or administrative proceeding of |
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an adversarial nature; |
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(B) a digest, analysis, selection, compilation, |
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or derivation of any item listed in Paragraph (A); and |
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(C) an index, instruction, or other aid or means |
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of access to any item listed in Paragraph (A). |
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(4) "Qui tam action" means an action brought by a |
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private person against a person for the commission of an unlawful |
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act under Section 2116.101. |
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(5) "State" means state government as defined by |
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Section 101.001, Civil Practice and Remedies Code. |
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(6) "State money or property" means money or property: |
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(A) that belongs to the state; or |
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(B) that: |
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(i) the state provides or has provided to a |
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contractor, grantee, or other recipient or for which the state will |
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reimburse the contractor, grantee, or other recipient; and |
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(ii) is to be spent or used on the state's |
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behalf or to advance a state program. |
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Sec. 2116.002. WHEN PERSON ACTS KNOWINGLY. (a) In this |
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chapter, a person acts "knowingly" with respect to information if |
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the person: |
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(1) has knowledge of the information; |
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(2) acts with conscious indifference to the truth or |
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falsity of the information; or |
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(3) acts in reckless disregard of the truth or falsity |
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of the information. |
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(b) Proof of the person's specific intent to commit an |
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unlawful act under Section 2116.101 is not required in a civil or |
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administrative proceeding under this chapter to show that the |
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person acted "knowingly" with respect to information. |
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Sec. 2116.003. CERTAIN ACTIONS BARRED. A person other than |
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the attorney general may not bring an action under this chapter |
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against an officer or employee of the state. |
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Sec. 2116.004. CHAPTER NOT APPLICABLE TO MEDICAID FRAUD. |
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This chapter does not apply to an unlawful act described by Section |
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36.002, Human Resources Code, relating to Medicaid fraud. |
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[Sections 2116.005-2116.050 reserved for expansion] |
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SUBCHAPTER B. INVESTIGATION BY THE ATTORNEY GENERAL |
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Sec. 2116.051. RESPONSIBILITY OF THE ATTORNEY GENERAL. The |
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attorney general shall diligently investigate the commission of an |
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unlawful act under Section 2116.101 and may bring an action against |
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the person committing the unlawful act in Travis County or a county |
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in which any part of the unlawful act occurred for civil remedies |
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under Section 2116.102 or 2116.201. |
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Sec. 2116.052. INVESTIGATION. (a) The attorney general |
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may take action under Subsection (b) if the attorney general has |
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reason to believe that: |
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(1) a person has information or custody or control of |
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documentary material relevant to the subject matter of an |
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investigation of an alleged unlawful act under Section 2116.101; |
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(2) a person is committing, has committed, or is about |
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to commit an unlawful act under Section 2116.101; or |
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(3) it is in the public interest to conduct an |
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investigation to ascertain whether a person is committing, has |
|
committed, or is about to commit an unlawful act under Section |
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2116.101. |
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(b) In investigating an unlawful act under this section, the |
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attorney general may: |
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(1) require the person to file on a prescribed form a |
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statement in writing, under oath or affirmation, as to all the facts |
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and circumstances concerning the alleged unlawful act and other |
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information considered necessary by the attorney general; |
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(2) examine under oath a person in connection with the |
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alleged unlawful act; and |
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(3) execute in writing and serve on the person a civil |
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investigative demand requiring the person to produce the |
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documentary material and permit inspection and copying of the |
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material under Section 2116.053. |
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(c) The office of the attorney general may not release or |
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disclose information that is obtained under Subsection (b)(1) or |
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(2) or any documentary material or other record derived from the |
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information except: |
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(1) by court order for good cause shown; |
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(2) with the consent of the person who provided the |
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information; |
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(3) to an employee of the attorney general; |
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(4) to an agency of this state, the United States, or |
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another state; |
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(5) to any attorney representing the state under |
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Section 2116.055 or in a civil action brought under Subchapter D; |
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(6) to a political subdivision of this state; or |
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(7) to a person authorized by the attorney general to |
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receive the information. |
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(d) The attorney general may use documentary material |
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derived from information obtained under Subsection (b)(1) or (2), |
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or copies of that material, as the attorney general determines |
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necessary in the enforcement of this chapter, including |
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presentation before a court. |
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(e) If a person fails to file a statement as required by |
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Subsection (b)(1) or fails to submit to an examination as required |
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by Subsection (b)(2), the attorney general may file in a district |
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court of Travis County a petition for an order to compel the person |
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to file the statement or submit to the examination within a period |
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stated by court order. Failure to comply with an order entered |
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under this subsection is punishable as contempt. |
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(f) An order issued by a district court under this section |
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is subject to appeal to the court of appeals. |
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Sec. 2116.053. CIVIL INVESTIGATIVE DEMAND. (a) An |
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investigative demand must: |
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(1) state the rule or statute under which the alleged |
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unlawful act is being investigated and the general subject matter |
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of the investigation; |
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(2) describe the class or classes of documentary |
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material to be produced with reasonable specificity to fairly |
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indicate the documentary material demanded; |
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(3) prescribe a return date within which the |
|
documentary material is to be produced; and |
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(4) identify an authorized employee of the attorney |
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general to whom the documentary material is to be made available for |
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inspection and copying. |
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(b) A civil investigative demand may require disclosure of |
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any documentary material that is discoverable under the Texas Rules |
|
of Civil Procedure. |
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(c) Service of an investigative demand may be made by: |
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(1) delivering an executed copy of the demand to the |
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person to be served or to a partner, an officer, or an agent |
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authorized by appointment or by law to receive service of process on |
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behalf of that person; |
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(2) delivering an executed copy of the demand to the |
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principal place of business in this state of the person to be |
|
served; or |
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(3) mailing by registered or certified mail an |
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executed copy of the demand addressed to the person to be served at |
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the person's principal place of business in this state or, if the |
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person has no place of business in this state, to the person's |
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principal office or place of business. |
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(d) Documentary material demanded under this section shall |
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be produced for inspection and copying during normal business hours |
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at the office of the attorney general or as agreed by the person |
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served and the attorney general. |
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(e) The office of the attorney general may not produce for |
|
inspection or copying or otherwise disclose the contents of |
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documentary material obtained under this section except: |
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(1) by court order for good cause shown; |
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(2) with the consent of the person who produced the |
|
information; |
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(3) to an employee of the attorney general; |
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(4) to an agency of this state, the United States, or |
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another state; |
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(5) to any attorney representing the state under |
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Section 2116.055 or in a civil action brought under Subchapter D; |
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(6) to a political subdivision of this state; or |
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(7) to a person authorized by the attorney general to |
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receive the information. |
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(f) The attorney general shall prescribe reasonable terms |
|
and conditions allowing the documentary material to be available |
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for inspection and copying by the person who produced the material |
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or by an authorized representative of that person. The attorney |
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general may use the documentary material or copies of it as the |
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attorney general determines necessary in the enforcement of this |
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chapter, including presentation before a court. |
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(g) A person may file a petition, stating good cause, to |
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extend the return date for the demand or to modify or set aside the |
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demand. A petition under this section shall be filed in a district |
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court of Travis County and must be filed before the earlier of: |
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(1) the return date specified in the demand; or |
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(2) the 20th day after the date the demand is served. |
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(h) Except as provided by court order, a person on whom a |
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demand has been served under this section shall comply with the |
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terms of an investigative demand. |
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(i) A person who has committed an unlawful act under Section |
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2116.101 has submitted to the jurisdiction of this state, and |
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personal service of an investigative demand under this section may |
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be made on the person outside of this state. |
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(j) This section does not limit the authority of the |
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attorney general to conduct investigations or to access a person's |
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documentary materials or other information under another state or |
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federal law, the Texas Rules of Civil Procedure, or the Federal |
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Rules of Civil Procedure. |
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(k) If a person fails to comply with an investigative |
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demand, or if copying and reproduction of the documentary material |
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demanded cannot be satisfactorily accomplished and the person |
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refuses to surrender the documentary material, the attorney general |
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may file in a district court of Travis County a petition for an |
|
order to enforce the investigative demand. |
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(l) If a petition is filed under Subsection (k), the court |
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may determine the matter presented and may enter an order to |
|
implement this section. |
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(m) Failure to comply with a final order entered under |
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Subsection (k) is punishable by contempt. |
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(n) A final order issued by a district court under |
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Subsection (k) is subject to appeal to the court of appeals. |
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Sec. 2116.054. INJUNCTIVE RELIEF. (a) If the attorney |
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general has reason to believe that a person is committing, has |
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committed, or is about to commit an unlawful act under Section |
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2116.101, the attorney general may institute an action for an |
|
appropriate order to restrain the person from committing or |
|
continuing the unlawful act. |
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(b) An action under this section shall be brought in a |
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district court of Travis County, or in a county in which any part of |
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the unlawful act occurred, is occurring, or is about to occur. |
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Sec. 2116.055. ATTORNEY GENERAL AS RELATOR IN FEDERAL |
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ACTION. To the extent permitted by 31 U.S.C. Sections 3729-3733, |
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the attorney general may bring an action as relator under 31 U.S.C. |
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Section 3730 with respect to an act for which a person may be held |
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liable under 31 U.S.C. Section 3729. The attorney general may |
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contract with a private attorney to represent the state under this |
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section. |
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Sec. 2116.056. STANDARD OF PROOF. The standard of proof for |
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all elements of a cause of action under this chapter is |
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preponderance of the evidence. |
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Sec. 2116.057. CHAPTER 41, CIVIL PRACTICE AND REMEDIES |
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CODE, INAPPLICABLE TO ACTION UNDER THIS CHAPTER. Chapter 41, Civil |
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Practice and Remedies Code, is not applicable to a cause of action |
|
under this chapter. |
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[Sections 2116.058-2116.100 reserved for expansion] |
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SUBCHAPTER C. UNLAWFUL ACTS |
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Sec. 2116.101. LIABILITY FOR CERTAIN UNLAWFUL ACTS. (a) A |
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person is liable to the state for civil remedies as provided by |
|
Section 2116.102 if the person: |
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(1) knowingly presents or causes to be presented for |
|
payment or approval a false or fraudulent claim for state money or |
|
property; |
|
(2) knowingly makes, uses, or causes to be made or used |
|
a false record or statement to get a false or fraudulent claim for |
|
state money or property paid or approved; |
|
(3) has possession, custody, or control of state money |
|
or property and, with the intent to defraud the state or retain a |
|
known overpayment or to knowingly convert the money or property, |
|
permanently or temporarily, to an unauthorized use: |
|
(A) fails to deliver or return, or cause the |
|
delivery or return of, the money or property; or |
|
(B) delivers, returns, or causes to be delivered |
|
or returned less money or property than the amount due or owed; |
|
(4) is authorized to make or deliver a document |
|
certifying receipt of property used or to be used by the state and |
|
knowingly makes or delivers a receipt that falsely represents the |
|
property used or to be used; |
|
(5) knowingly buys, or receives as a pledge of an |
|
obligation or debt, state property from a state officer or employee |
|
who lawfully may not sell or pledge the property; |
|
(6) knowingly makes, uses, or causes to be made or used |
|
a false record or statement to conceal, avoid, or decrease an |
|
obligation to pay or transmit money or property to the state; |
|
(7) knowingly pays, directly or indirectly, overtly or |
|
covertly, any remuneration, including any bribe, kickback, or |
|
rebate, in cash or in kind, to a person for the purpose of |
|
influencing a decision regarding the selection, by contract or |
|
otherwise, of a supplier, provider, or vendor of goods or services |
|
to the state; |
|
(8) knowingly obstructs an investigation by the |
|
attorney general of any alleged violation set forth in this |
|
subsection; or |
|
(9) conspires to commit any violation set forth in |
|
this subsection. |
|
(b) All elements of the statutory cause of action created by |
|
this section are set forth in Subsection (a). No proof of any |
|
additional element of common law fraud or other cause of action is |
|
implied or required to establish liability for a violation of this |
|
section. |
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Sec. 2116.102. CIVIL REMEDIES. (a) Except as provided by |
|
Subsection (c), a person who commits an unlawful act under Section |
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2116.101 is liable to the state for: |
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(1) the amount of any payment or the value of any |
|
monetary or in-kind benefit realized, directly or indirectly, as a |
|
result of the unlawful act, including any payment made to a third |
|
party; |
|
(2) interest on the amount of the payment or the value |
|
of the benefit described by Subdivision (1) at the prejudgment |
|
interest rate in effect on the day the payment or benefit was |
|
received or paid, for the period from the date the payment or |
|
benefit was received or paid to the date the state recovers the |
|
amount of the payment or value of the benefit; |
|
(3) a civil penalty of not less than $5,000 and not |
|
more than $15,000 for each unlawful act committed by the person |
|
under Section 2116.101; |
|
(4) two times the amount of the payment or the value of |
|
the benefit described by Subdivision (1); and |
|
(5) if the defendant has been found liable in an action |
|
under this chapter or has settled an action under this chapter, |
|
fees, expenses, and costs reasonably incurred in obtaining relief |
|
or civil remedies or conducting investigations under this chapter, |
|
including court costs, reasonable attorney's fees, witness fees, |
|
and deposition fees as determined by the court only after the |
|
defendant is found liable or settles the action. |
|
(b) In determining the amount of the civil penalty under |
|
Subsection (a)(3), the trier of fact shall consider: |
|
(1) whether the person has previously violated this |
|
chapter; |
|
(2) the seriousness of the unlawful act committed by |
|
the person, including the nature, circumstances, extent, and |
|
gravity of the unlawful act; |
|
(3) whether the health or safety of the public or an |
|
individual was threatened by the unlawful act; and |
|
(4) the amount necessary to deter future unlawful |
|
acts. |
|
(c) The trier of fact may assess a total of not more than two |
|
times the amount of a payment or benefit described by Subsection |
|
(a)(1) if the trier of fact finds: |
|
(1) that the person committing the unlawful act |
|
furnished the attorney general with all information known to the |
|
person about the unlawful act not later than the 30th day after the |
|
date the person first obtained the information; |
|
(2) that the person committing the unlawful act fully |
|
cooperated with any investigation of the unlawful act; and |
|
(3) at the time the person furnished information about |
|
the unlawful act, a criminal prosecution, civil action, or |
|
administrative action had not commenced in relation to the unlawful |
|
act and the person did not have actual knowledge of the existence of |
|
an investigation into the unlawful act. |
|
(d) The attorney general may: |
|
(1) bring an action for civil remedies under this |
|
section or Section 2116.201 together with a suit for injunctive |
|
relief under Section 2116.054; or |
|
(2) bring an action for civil remedies independently |
|
of an action for injunctive relief. |
|
[Sections 2116.103-2116.150 reserved for expansion] |
|
SUBCHAPTER D. ACTIONS BY PRIVATE PERSONS |
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Sec. 2116.151. ACTION BY PRIVATE PERSON AUTHORIZED. (a) |
|
Subject to Section 2116.201, a private person may bring a civil |
|
action against a person committing an unlawful act under Section |
|
2116.101. |
|
(b) The action is a qui tam action on behalf of both the |
|
person and the state. |
|
(c) The qui tam action must be brought in the name of the |
|
state. |
|
(d) The qui tam action must be brought in the district court |
|
of Travis County. |
|
(e) No person other than the attorney general may intervene |
|
or bring a related action based on the facts underlying a pending |
|
action under this subchapter or a pending administrative penalty |
|
proceeding in which the state is a party. |
|
Sec. 2116.152. INITIATION OF ACTION. (a) A qui tam |
|
plaintiff shall serve a copy of the petition and a written |
|
disclosure of substantially all material evidence and information |
|
the person possesses on the attorney general in compliance with the |
|
Texas Rules of Civil Procedure. |
|
(b) The petition shall be filed in camera and, except as |
|
provided by Subsection (d) or (e), shall remain under seal until at |
|
least the 180th day after the date the petition is filed or the date |
|
on which the state elects to intervene, whichever is earlier. The |
|
petition may not be served on the defendant until the court orders |
|
service on the defendant. |
|
(c) The state may elect to intervene and proceed with the |
|
action not later than the 180th day after the date the attorney |
|
general receives the petition and the material evidence and |
|
information. |
|
(d) At the time the state intervenes, the attorney general |
|
may file a motion with the court requesting that the petition remain |
|
under seal for an extended period. |
|
(e) The state may, for good cause shown, move the court to |
|
extend the 180-day deadline under Subsection (b) or (c). A motion |
|
under this subsection may be supported by affidavits or other |
|
submissions in camera. |
|
(f) An action under this subchapter may be dismissed before |
|
the end of the period during which the petition remains under seal |
|
only if the court and the attorney general consent in writing to the |
|
dismissal and state their reasons for consenting. |
|
Sec. 2116.153. ANSWER BY DEFENDANT. A defendant is not |
|
required to file in accordance with the Texas Rules of Civil |
|
Procedure an answer to a petition filed under this subchapter until |
|
the petition is unsealed and served on the defendant. |
|
Sec. 2116.154. STATE'S ELECTION TO PROCEED. (a) Not later |
|
than the last day of the period described by Section 2116.152(c) or |
|
an extension of that period as provided by Section 2116.152(e), the |
|
state shall: |
|
(1) proceed with the action; or |
|
(2) notify the court that the state declines to take |
|
over the action. |
|
(b) If the state declines to take over the action, the court |
|
shall dismiss the action. |
|
Sec. 2116.155. ACTION CONDUCTED BY STATE. (a) This section |
|
applies to a qui tam action the state takes over under Section |
|
2116.154(a)(1). |
|
(b) The state has the primary responsibility for |
|
prosecuting the action and is not bound by an act of the qui tam |
|
plaintiff. |
|
(c) Subject to this section, the qui tam plaintiff is |
|
entitled to continue as a party to the action. |
|
(d) The attorney general may contract with a private |
|
attorney to represent the state in an action under this section with |
|
which the state elects to proceed. |
|
(e) Notwithstanding the objection of the qui tam plaintiff, |
|
the state may dismiss the action for good cause if: |
|
(1) the state notifies the qui tam plaintiff that a |
|
motion to dismiss has been filed; and |
|
(2) the court provides the qui tam plaintiff with an |
|
opportunity for a hearing on the motion. |
|
(f) Notwithstanding the objection of the qui tam plaintiff, |
|
the state may settle the action if the court determines, after |
|
notice and a hearing, that the proposed settlement is fair, |
|
adequate, and reasonable under all the circumstances. On a showing |
|
of good cause, the court may hold the hearing in camera. |
|
(g) On a showing by the state that unrestricted |
|
participation in the litigation of the action by the qui tam |
|
plaintiff would interfere with or unduly delay the state's |
|
prosecution of the case or would be repetitious, irrelevant, or for |
|
purposes of harassment, the court may impose limitations on the qui |
|
tam plaintiff's participation, including: |
|
(1) limiting the number of witnesses the qui tam |
|
plaintiff may call; |
|
(2) limiting the length of the testimony of witnesses |
|
called by the qui tam plaintiff; |
|
(3) limiting the qui tam plaintiff's cross-examination |
|
of witnesses; or |
|
(4) otherwise limiting the participation by the qui |
|
tam plaintiff in the litigation. |
|
(h) On a showing by the defendant that unrestricted |
|
participation in the litigation of the action by the qui tam |
|
plaintiff would be for purposes of harassment or would cause the |
|
defendant undue burden or unnecessary expense, the court may limit |
|
the participation by the qui tam plaintiff in the litigation. |
|
Sec. 2116.156. STAY OF CERTAIN DISCOVERY. (a) On a |
|
showing by the state that certain actions of discovery by the qui |
|
tam plaintiff would interfere with the state's investigation or |
|
prosecution of a criminal or civil matter arising out of the same |
|
facts, the court may stay the discovery for a period not to exceed |
|
60 days. |
|
(b) The court shall hear a motion to stay discovery under |
|
this section in camera. |
|
(c) The court may extend the period prescribed by Subsection |
|
(a) on a further showing in camera that the state has pursued the |
|
criminal or civil investigation or proceedings with reasonable |
|
diligence and that any proposed discovery in the civil action will |
|
interfere with the ongoing criminal or civil investigation or |
|
proceedings. |
|
Sec. 2116.157. AWARD TO QUI TAM PLAINTIFF. (a) If the |
|
state proceeds with an action under this subchapter, the qui tam |
|
plaintiff is entitled, except as provided by Subsection (b), to |
|
receive an award of at least 15 percent, but not more than 25 |
|
percent, of the proceeds of the action, depending on the extent to |
|
which the person substantially contributed to the prosecution of |
|
the action. |
|
(b) If the court finds on motion of the attorney general |
|
that the action is based primarily on disclosures of specific |
|
information, other than information provided by the qui tam |
|
plaintiff, relating to allegations or transactions in a civil or |
|
criminal hearing, in a legislative or administrative report, |
|
hearing, audit, or investigation, or from the news media, the court |
|
may award the amount the court considers appropriate but not more |
|
than 10 percent of the proceeds of the action. The court shall |
|
consider the significance of the information and the role of the qui |
|
tam plaintiff in advancing the case to litigation. |
|
(c) A payment to a qui tam plaintiff under this section |
|
shall be made from the proceeds of the action. A qui tam plaintiff |
|
receiving a payment under this section is also entitled to receive |
|
from the defendant an amount for reasonable expenses, reasonable |
|
attorney's fees, and costs that the court finds to have been |
|
necessarily incurred. The court's determination of expenses, fees, |
|
and costs to be awarded under this subsection shall be made only |
|
after the defendant is found liable in the action or settles the |
|
action. |
|
(d) In this section, "proceeds of the action" means the |
|
amount recovered by the state under a judgment or settlement of the |
|
qui tam action or the resolution of an alternate remedy pursued by |
|
the state under Section 2116.201. The term does not include |
|
attorney's fees, costs, and expenses incurred in bringing the |
|
action. |
|
Sec. 2116.158. REDUCTION OF AWARD. (a) If the court finds |
|
that the qui tam plaintiff planned and initiated the unlawful act |
|
that is the basis of the qui tam action, the court may, to the extent |
|
the court considers appropriate, reduce the share of the proceeds |
|
of the action the qui tam plaintiff would otherwise receive under |
|
Section 2116.157, taking into account the qui tam plaintiff's role |
|
in advancing the case to litigation and any relevant circumstances |
|
pertaining to the violation. |
|
(b) If the qui tam plaintiff is convicted of criminal |
|
conduct arising from the person's role in the unlawful act, the |
|
court shall dismiss the qui tam plaintiff from the civil action and |
|
the qui tam plaintiff may not receive any share of the proceeds of |
|
the action. A dismissal under this subsection does not prejudice |
|
the right of the state to continue the qui tam action. |
|
Sec. 2116.159. STATE NOT LIABLE FOR CERTAIN EXPENSES. The |
|
state is not liable for expenses that a qui tam plaintiff incurs in |
|
bringing an action under this subchapter. |
|
Sec. 2116.160. RETALIATION BY EMPLOYER AGAINST PERSON |
|
BRINGING SUIT PROHIBITED. (a) A person who is discharged, demoted, |
|
suspended, threatened, harassed, or in any other manner |
|
discriminated against in the terms of employment by the person's |
|
employer because of a lawful act taken by the person in furtherance |
|
of a qui tam action under this chapter, including investigation |
|
for, initiation of, testimony for, or assistance in a qui tam action |
|
filed or to be filed, is entitled to all relief necessary to make |
|
the person whole, including: |
|
(1) reinstatement with the same seniority status the |
|
person would have had but for the discrimination; and |
|
(2) two times the amount of back pay, interest on the |
|
back pay, and compensation for any special damages sustained as a |
|
result of the discrimination, including litigation costs and |
|
reasonable attorney's fees. |
|
(b) A person may bring an action in the appropriate district |
|
court for the relief provided in this section. |
|
Sec. 2116.161. AWARD TO DEFENDANT FOR FRIVOLOUS ACTION; |
|
SOVEREIGN IMMUNITY. (a) Chapter 105, Civil Practice and Remedies |
|
Code, applies in an action under this subchapter with which the |
|
state proceeds. |
|
(b) Except as provided by Subsection (a), this subchapter |
|
does not waive sovereign immunity. |
|
Sec. 2116.162. CERTAIN CONTRACTS, AGREEMENTS, AND |
|
CONDITIONS OF EMPLOYMENT VOID. (a) Any contract, private |
|
agreement, or private term or condition of employment that has the |
|
purpose or effect of limiting or circumventing the right of a person |
|
to take otherwise lawful steps to initiate, prosecute, or support |
|
an action under Section 2116.151 is void to the full extent of that |
|
purpose or effect. |
|
(b) Subsection (a) does not preclude a contract or private |
|
agreement that is entered into: |
|
(1) with the state and a qui tam plaintiff under |
|
Section 2116.151 to settle claims of the state and the qui tam |
|
plaintiff under Section 2116.151; or |
|
(2) to settle a retaliation or discrimination claim |
|
under Section 2116.160 of a qui tam plaintiff under Section |
|
2116.151. |
|
[Sections 2116.163-2116.200 reserved for expansion] |
|
SUBCHAPTER E. ACTION BY STATE |
|
Sec. 2116.201. STATE MAY PURSUE ALTERNATE REMEDY. (a) |
|
Notwithstanding Section 2116.151, after a qui tam action is filed |
|
the state may elect to prosecute the unlawful act that is the |
|
subject of the action through any alternate remedy available to the |
|
state, including any administrative proceeding to determine an |
|
administrative penalty. |
|
(b) The attorney general may contract with a private |
|
attorney to represent the state under this section. |
|
(c) The qui tam plaintiff has the same rights in the other |
|
proceeding as the qui tam plaintiff would have had if the action had |
|
continued in the original forum, including a monetary award as |
|
provided by Subchapter D. |
|
(d) A finding of fact or conclusion of law made in the other |
|
proceeding that has become final is conclusive on all parties to the |
|
qui tam action. For purposes of this subsection, a finding or |
|
conclusion is final if: |
|
(1) the finding or conclusion has been finally |
|
determined on appeal to the appropriate court; |
|
(2) no appeal has been filed with respect to the |
|
finding or conclusion and all time for filing an appeal has expired; |
|
or |
|
(3) the finding or conclusion is not subject to |
|
judicial review. |
|
SECTION 2. Section 41.002(d), Civil Practice and Remedies |
|
Code, is amended to read as follows: |
|
(d) Notwithstanding any provision to the contrary, this |
|
chapter does not apply to: |
|
(1) Section 15.21, Business & Commerce Code (Texas |
|
Free Enterprise and Antitrust Act of 1983); |
|
(2) an action brought under the Deceptive Trade |
|
Practices-Consumer Protection Act (Subchapter E, Chapter 17, |
|
Business & Commerce Code) except as specifically provided in |
|
Section 17.50 of that Act; |
|
(3) an action brought under Chapter 36, Human |
|
Resources Code; [or] |
|
(4) an action brought under Chapter 21, Insurance |
|
Code; or |
|
(5) an action brought under Chapter 2116, Government |
|
Code. |
|
SECTION 3. This Act applies only to an unlawful act as |
|
described by Section 2116.101, Government Code, as added by this |
|
Act, that takes place on or after the effective date of this Act. An |
|
unlawful act takes place on or after the effective date of this Act |
|
only if all elements of the unlawful act take place on or after the |
|
effective date of this Act or all elements of the unlawful act took |
|
place before the effective date of this Act and are repeated in a |
|
continuing course of conduct after the effective date of this Act. |
|
SECTION 4. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2009. |