Texas 2009 - 81st Regular

Texas House Bill HB2044 Compare Versions

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1	1	81R23369 TJS-D
2	2	By: Keffer H.B. No. 2044
3	3	Substitute the following for H.B. No. 2044:
4	4	By: Gallego C.S.H.B. No. 2044
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an action on certain contracts for information about
10	10	property recoverable by the state.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 403, Government Code, is
13	13	amended by adding Section 403.0197 to read as follows:
14	14	Sec. 403.0197. ACTION ON CONTRACT. (a) If a contract
15	15	executed under Section 403.0195 on or before September 1, 2009,
16	16	involves royalties or other proceeds of production attributable to
17	17	state-owned lands or mineral interests and does not result in the
18	18	state filing suit or taking other action to recover on the claim
19	19	that is the subject of the contract before the expiration of five
20	20	years after the date on which the contract is executed, the
21	21	contracting person may file a civil action on the claim that is the
22	22	subject of the contract. An action brought under this section is on
23	23	behalf of both the contracting person and the state and must be
24	24	brought in the name of the person and the state.
25	25	(b) A person bringing an action under this section shall
26	26	serve a copy of the petition and a written disclosure of
27	27	substantially all material evidence and information the person
28	28	possesses on the attorney general in compliance with the Texas
29	29	Rules of Civil Procedure.
30	30	(c) The petition shall be filed in camera and, except as
31	31	provided by Subsection (e) or (f), shall remain under seal until at
32	32	least the 180th day after the date the petition is filed or the date
33	33	on which the state elects to intervene, whichever is earlier. The
34	34	petition may not be served on the defendant until the court orders
35	35	service on the defendant.
36	36	(d) The state may elect to intervene and proceed with the
37	37	action not later than the 180th day after the date the attorney
38	38	general receives the petition and the material evidence and
39	39	information.
40	40	(e) At the time the state elects to intervene, the attorney
41	41	general may file a motion with the court requesting that the
42	42	petition remain under seal for an extended period.
43	43	(f) The state may, for good cause shown, move the court to
44	44	extend the 180-day deadline under Subsection (c) or (d). A motion
45	45	under this subsection may be supported by affidavits or other
46	46	submissions in camera.
47	47	(g) An action under this section may be dismissed before the
48	48	end of the period during which the petition remains under seal only
49	49	if the court and the attorney general consent in writing to the
50	50	dismissal and state their reasons for consenting.
51	51	(h) A defendant is not required to file in accordance with
52	52	the Texas Rules of Civil Procedure an answer to a petition filed
53	53	under this section until the petition is unsealed and served on the
54	54	defendant.
55	55	(i) Not later than the last day of the period prescribed by
56	56	Subsection (d) or an extension of that period as provided by
57	57	Subsection (e) or (f), the state shall:
58	58	(1) proceed with the action; or
59	59	(2) notify the court that the state declines to take
60	60	over the action.
61	61	(j) If the state declines to take over the action, the
62	62	person bringing the action may proceed without the state's
63	63	participation. On request by the state, the state is entitled to be
64	64	served with copies of all pleadings filed in the action and be
65	65	provided at the state's expense with copies of all deposition
66	66	transcripts. If the person bringing the action proceeds without
67	67	the state's participation, the court, without limiting the status
68	68	and right of that person, may permit the state to intervene at a
69	69	later date on a showing of good cause.
70	70	(k) If the state proceeds with the action, the state has the
71	71	primary responsibility for prosecuting the action and is not bound
72	72	by an act of the person bringing the action. The person bringing
73	73	the action has the right to continue as a party to the action,
74	74	subject to the limitations in this section.
75	75	(l) The state may dismiss the action notwithstanding the
76	76	objections of the person bringing the action if:
77	77	(1) the attorney general notifies the person that the
78	78	state has filed a motion to dismiss; and
79	79	(2) the court provides the person with an opportunity
80	80	for a hearing on the motion.
81	81	(m) The state may settle the action with the defendant
82	82	notwithstanding the objections of the person bringing the action if
83	83	the court determines, after a hearing, that the proposed settlement
84	84	is fair, adequate, and reasonable under all the circumstances. On a
85	85	showing of good cause, the hearing may be held in camera.
86	86	(n) On a showing by the state that unrestricted
87	87	participation during the course of the litigation by the person
88	88	bringing the action would interfere with or unduly delay the
89	89	state's prosecution of the case, or would be repetitious,
90	90	irrelevant, or for purposes of harassment, the court may impose
91	91	limitations on the person's participation, including:
92	92	(1) limiting the number of witnesses the person may
93	93	call;
94	94	(2) limiting the length of the testimony of witnesses
95	95	called by the person;
96	96	(3) limiting the person's cross-examination of
97	97	witnesses; or
98	98	(4) otherwise limiting the participation by the person
99	99	in the litigation.
100	100	(o) On a showing by the defendant that unrestricted
101	101	participation during the course of the litigation by the person
102	102	bringing the action would be for purposes of harassment or would
103	103	cause the defendant undue burden or unnecessary expense, the court
104	104	may limit the participation by the person in the litigation.
105	105	(p) A person bringing an action under this section may
106	106	recover an amount not greater than five percent of the amount of the
107	107	revenue or the value of the other property that the state recovers
108	108	as a result of the person bringing the action.
109	109	(q) Recovery by a person under this section shall be from
110	110	the proceeds of the action, including the proceeds of any
111	111	settlement. The court shall determine necessary expenses, fees,
112	112	and costs to be awarded under this subsection only after the
113	113	defendant has been found liable in the action. A person who
114	114	receives a payment under this section is entitled to receive from
115	115	the defendant an amount for:
116	116	(1) reasonable expenses;
117	117	(2) reasonable attorney's fees; and
118	118	(3) costs that the court finds to have been
119	119	necessarily incurred.
120	120	(r) This section does not apply to a claim against a
121	121	governmental unit, as defined by Section 101.001, Civil Practice
122	122	and Remedies Code.
123	123	(s) This section expires January 1, 2015.
124	124	SECTION 2. Notwithstanding the expiration of Section
125	125	403.0197, Government Code, as added by this Act, an action that is
126	126	commenced under that section on or before December 31, 2014, is
127	127	governed by that section, and that section is continued in effect
128	128	for that purpose.
129	129	SECTION 3. This Act takes effect immediately if it receives
130	130	a vote of two-thirds of all the members elected to each house, as
131	131	provided by Section 39, Article III, Texas Constitution. If this
132	132	Act does not receive the vote necessary for immediate effect, this
133	133	Act takes effect September 1, 2009.