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AN ACT
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relating to certain limitations on settlement agreements with a |
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governmental unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 5, Civil Practice and Remedies Code, is |
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amended by adding Chapter 116 to read as follows: |
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CHAPTER 116. SETTLEMENT OF CLAIM OR ACTION AGAINST GOVERNMENTAL |
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UNIT |
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Sec. 116.001. DEFINITION. In this chapter, "governmental |
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unit" has the meaning assigned by Section 101.001. |
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Sec. 116.002. CERTAIN SETTLEMENT TERMS PROHIBITED. (a) A |
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governmental unit may not enter into a settlement of a claim or |
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action against the governmental unit in which: |
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(1) the amount of the settlement is equal to or greater |
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than $30,000; |
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(2) the money that would be used to pay the settlement |
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is: |
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(A) derived from taxes collected by a |
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governmental unit; |
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(B) received from the state; or |
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(C) insurance proceeds received from an |
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insurance policy for which the premium was paid with taxes |
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collected by a governmental unit or money received from the state; |
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and |
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(3) a condition of the settlement requires a party |
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seeking affirmative relief against the governmental unit to agree |
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not to disclose any fact, allegation, evidence, or other matter to |
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any other person, including a journalist or other member of the |
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media. |
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(b) A settlement agreement provision entered into in |
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violation of Subsection (a) is void and unenforceable. |
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Sec. 116.003. EFFECT OF CHAPTER. This chapter does not |
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affect information that is privileged or confidential under other |
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law. |
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SECTION 2. The change in law made by this Act applies only |
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with respect to a claim or action that is based on a cause of action |
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that accrues on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 53 was passed by the House on April |
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26, 2017, by the following vote: Yeas 148, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 53 was passed by the Senate on May 19, |
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2017, by the following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |