By: Romero, Jr., Capriglione H.B. No. 53
(Senate Sponsor - Huffman)
(In the Senate - Received from the House April 27, 2017;
May 11, 2017, read first time and referred to Committee on State
Affairs; May 15, 2017, reported favorably by the following vote:
Yeas 9, Nays 0; May 15, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to certain limitations on settlement agreements with a
governmental unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 5, Civil Practice and Remedies Code, is
amended by adding Chapter 116 to read as follows:
CHAPTER 116. SETTLEMENT OF CLAIM OR ACTION AGAINST GOVERNMENTAL
UNIT
Sec. 116.001. DEFINITION. In this chapter, "governmental
unit" has the meaning assigned by Section 101.001.
Sec. 116.002. CERTAIN SETTLEMENT TERMS PROHIBITED. (a) A
governmental unit may not enter into a settlement of a claim or
action against the governmental unit in which:
(1) the amount of the settlement is equal to or greater
than $30,000;
(2) the money that would be used to pay the settlement
is:
(A) derived from taxes collected by a
governmental unit;
(B) received from the state; or
(C) insurance proceeds received from an
insurance policy for which the premium was paid with taxes
collected by a governmental unit or money received from the state;
and
(3) a condition of the settlement requires a party
seeking affirmative relief against the governmental unit to agree
not to disclose any fact, allegation, evidence, or other matter to
any other person, including a journalist or other member of the
media.
(b) A settlement agreement provision entered into in
violation of Subsection (a) is void and unenforceable.
Sec. 116.003. EFFECT OF CHAPTER. This chapter does not
affect information that is privileged or confidential under other
law.
SECTION 2. The change in law made by this Act applies only
with respect to a claim or action that is based on a cause of action
that accrues on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2017.
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