Texas House Bill HB382

Texas 2013 - 83rd Regular

Caption

Relating to certain limitations on settlement agreements with a governmental unit.

Impact

The enactment of HB 382 will significantly alter how governmental units handle legal settlements. With the requirement to disclose information related to these settlements, representatives of governmental units will need to reevaluate their negotiation strategies. The legislation is designed to protect the public's right to know the details behind large payouts made by their government, which could influence public trust in governmental operations. Furthermore, this change could deter governmental units from settling claims in a manner that conceals issues of public interest, promoting a more transparent legal process.

Summary

House Bill 382 introduces specific limitations on settlement agreements involving governmental units in Texas. The bill stipulates that any settlement amount equal to or greater than $30,000 must not include conditions that require the claimant to refrain from disclosing any facts, allegations, or evidence to third parties, including the media. This provision aims to enhance transparency and accountability in the governmental settlement processes. If such conditions are included, the settlement agreement would be rendered void and unenforceable under the new law, thereby disallowing any governmental entity from entering into secretive settlements associated with significant financial claims.

Contention

The main points of contention surrounding HB 382 focus on the balance between transparency and the operational needs of governmental units. Proponents argue that transparency fosters accountability, thus preventing misuse of public funds and protecting public interests. On the other hand, opponents might contend that the bill could hinder the ability of governmental units to effectively negotiate settlements by exposing them to public scrutiny, potentially leading to larger liabilities or discouraging them from settling altogether. This raises concerns about administrative efficiency and the ramifications for public entities when faced with legal claims.

Last_action

The bill was voted on during the Third Reading in the House on May 10, 2013, where it received 86 votes in favor and 50 against, indicating a significant, though not overwhelming, level of support amidst a divided legislature.