Texas Senate Bill SB1463

Texas 2017 - 85th Regular

Caption

Relating to settlement of claims and actions against a governmental unit.

Impact

Under SB1463, any settlement agreement that violates this provision will be deemed void and unenforceable. Furthermore, the bill specifies that evidence arising from settlement negotiations cannot be used to establish liability, which provides additional protections for governmental units during legal disputes. This change in law is particularly significant as it establishes clear guidelines on how settlements with governmental units are to be handled in Texas, potentially altering how claims are resolved and reported.

Summary

SB1463 introduces new regulations regarding the settlement of claims against governmental units in Texas. The bill prohibits governmental units from entering into settlements that require an individual or entity to agree to confidentiality about the facts, allegations, or evidence pertaining to a claim if the settlement amount is equal to or exceeds $30,000. This move is aimed at enhancing transparency in governmental operations and ensuring that the public has access to important information about legal settlements involving their government.

Contention

The discussions around SB1463 reflect a tension between the need for governmental accountability and the legal protections that entities might seek during negotiations. Proponents of the bill argue that it fortifies public rights to know about settlements that involve taxpayer money, while critics may view it as risking the ability of governmental units to negotiate settlements that could be beneficial for both parties. This bill could spark ongoing dialogue about the balance between transparency and effective governance in the face of legal challenges.