Legislative Updates - 84th Legislative Session

 Jerry Bullard
Adams, Lynch & Loftin, P.C. 
Co-Chair, Legislative Liaison Committee, State Bar of Texas Appellate Section


As a service to interested members of the bench and bar, the author produces an e-newsletter that includes summarized information and links to relevant bills in order to keep recipients up to date on what is happening in Austin and how proposed legislation might affect the practice of civil trial and appellate lawyers and the judiciary. For those interested in receiving the e-newsletter, please contact Jerry D. Bullard at either of the following addresses: jdb@all-lawfirm.com or j.bullard1@verizon.net.

Available updates:
June 22, 2015
June 1, 2015
May 25, 2015
May 16, 2015
May 10, 2015
May 3, 2015
April 26, 2015
April 19, 2015
April 12, 2015
April 5, 2015
March 29, 2015
March 22, 2015
March 15, 2015
March 8, 2015
March 1, 2015
February 22, 2015
February 15, 2015
February 10, 2015
February 1, 2015
January 23, 2015
January 4, 2015
December 1, 2014
November 17. 2014

 
                                                                     Legislative Update
                                                                             June 22, 2015
 

The final deadline associated with the regular session has come and gone. Governor Abbott signed into law all of the sixteen (16) monitored bills that passed. A link to the final version of each bill, as well as an overview and the effective date of each bill, are set forth below. (Note: If you would rather jump-down to a category of passed bills instead of perusing the list from top-to-bottom, you can click on the subject heading.)

Attorneys - Practice of Law

Damages

Deceptive Trade Practices Act

Defamation

Evictions

Health Care Liability

Internet Activity

Judiciary/Court Administration

Patent Infringement Claims

Probate Court Proceedings

Trial Court Procedure

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), amends section 82.037 of the Government Code and revises the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.”

· Effective Date: May 15, 2015. Applies only to attorney oaths taken after May 15th.

HB 7 - Repeal of Occupation Tax

· Summary: HB 7, filed by Rep. Drew Darby (R - San Angelo), addresses the use of certain statutorily-dedicated revenue and includes provisions that would repeal various occupation taxes, including the $200 attorney tax.

· Effective Date: September 1, 2015. The changes in the law made by HB 7 do not affect a surcharge, additional fee, additional charge, fee increase, tax, or late fee imposed before the effective date.

Damages

SB 735 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

· Summary: SB 735, filed by Sen. Troy Fraser (R - Horseshoe Bay), amends section 41.011 of the Texas Civil Practice and Remedies Code (CPRC) to define “net worth” to mean “the total assets of a person minus the total liabilities of the person on a date determined appropriate by the trial court.” SB 735 also adds section 41.0115 to the CPRC, which would provide as follows:

“Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for exemplary damages. Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery. (b) If a trial court authorizes discovery under Subsection (a), the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence. (c) When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by Subsection (a).”

By way of floor amendment, the House amended SB 735 to include the following language: “If a party requests net worth discovery under this section, the court shall presume that the requesting party has had adequate time for the discovery of facts relating to exemplary damages for purposes of allowing the party from whom net worth discovery is sought to move for summary judgment on the requesting party’s claim for exemplary damages under Rule 166a(i), Texas Rules of Civil Procedure.”

· Effective Date: September 1, 2015. The changes in the law made by SB 735 apply only to an action filed on or after the effective date.

Deceptive Trade Practices Act

HB 1265 - Deceptive Trade Act or Practice Involving a Solicitation in Connection with a Good or Service

· Summary: HB 1265, filed by Rep. Gene Wu (D - Houston), amends section 17.46(b) of the Business & Commerce Code to provide that the term “false, misleading, or deceptive acts or practices” will include the following:

(28) delivering or distributing a solicitation in connection with a good or service that represents that the solicitation is sent on behalf of a governmental entity when it is not, or resembles a governmental notice or form that represents or implies that a criminal penalty may be imposed if the recipient does not remit payment for the good or service;

(29) delivering or distributing a solicitation in connection with a good or service that resembles a check or other negotiable instrument or invoice, unless the portion of the solicitation that resembles a check or other negotiable instrument or invoice includes the following notice, clearly and conspicuously printed in at least 18-point type: "SPECIMEN-NON-NEGOTIABLE;"

(30) in the production, sale, distribution, or promotion of a synthetic substance that produces and is intended to produce an effect when consumed or ingested similar to, or in excess of, the effect of a controlled substance or controlled substance analogue, as those terms are defined by section 481.002 of the Health and Safety Code, making a deceptive representation or designation about the synthetic substance, or causing confusion or misunderstanding as to the effects the synthetic substance causes when consumed or ingested; or

(31) a licensed public insurance adjuster directly or indirectly soliciting employment, as defined by section 38.01 of the Penal Code, for an attorney, or a licensed public insurance adjuster entering into a contract with an insured for the primary purpose of referring the insured to an attorney without the intent to actually perform the services customarily provided by a licensed public insurance adjuster, provided that this subdivision may not be construed to prohibit a licensed public insurance adjuster from recommending a particular attorney to an insured.

· Effective Date: September 1, 2015. The changes enacted by HB 1265 apply only to a cause of action that accrues on or after the effective date.

HB 2573 - Deceptive Trade Practice Related to the Use of Certain Words to Imply that a Person who is not an Attorney is Authorized to Practice Law

· Summary: HB 2573, filed by Rep. Eric Johnson (D - Dallas), amends section 17.46(b) of the Business & Commerce Code to provide that the term "false, misleading, or deceptive acts or practices" will include the translation into a foreign language of a title or other word, including "attorney," "lawyer," "licensed," "notary," and "notary public," in any written or electronic material, including an advertisement, a business card, a letterhead, stationery, a website, or an online video, in reference to a person who is not an attorney in order to imply that the person is authorized to practice law.

· Effective Date: September 1, 2015. Applies only to a cause of action that accrues on or after the effective date.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), amends Chapter 73 of the Civil Practice and Remedies Code (CPRC) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following section: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions.”

· Effective Date: May 28, 2015. The changes resulting from the passage of SB 627 apply only to “accurate reporting by a newspaper or other periodical or broadcaster made on or after the effective date.” The “accurate reporting by a newspaper or other periodical or broadcaster made before the effective date” will be governed by the law applicable to reporting immediately before May 28th.

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), amends section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question is being used for residential purposes only. HB 3364 essentially adds back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill also repeals section 24.007(b), which was enacted in 2011 and authorized appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Effective Date: January 1, 2016. Applies to a final judgment rendered on or after that date.

Health Care Liability

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), amends the definition of “health care liability claim” in Chapter 74 of the CPRC to exclude personal injury claims filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Effective Date: September 1, 2015. The change in law made by HB 1403 applies only to a cause of action that accrues on or after September 1st.

Internet Activity

SB 1135 - Creation of Civil and Criminal Liability for Disclosure or Promotion of Intimate Visual Material

· Summary: SB 1135 (a/k/a Relationship Privacy Act), filed by Sen. Sylvia Garcia (D- Houston), Sen. Joan Huffman (R - Houston), and Sen. Judith Zaffirini (D - Laredo), adds Chapter 98B to the CPRC and section 21.16 to the Penal Code and creates a new criminal offense and civil cause of action for "revenge porn." In a civil case, a defendant will be liable for damages to a person depicted in “intimate visual material” if:

(1) the defendant discloses intimate visual material without the effective consent of the depicted person;

(2) the intimate visual material was obtained by the defendant or created under circumstances in which the depicted person had a reasonable expectation that the material would remain private;

(3) the disclosure of the intimate visual material causes harm to the depicted person; and

(4) the disclosure of the intimate visual material reveals the identity of the depicted person in any manner, including through: (a) any accompanying or subsequent information or material related to the intimate visual material; or (b) information or material provided by a third party in response to the disclosure of the intimate visual material.

A defendant will also be liable for damages to a person depicted in intimate visual material under SB 1135 if the defendant, knowing the character and content of the material, promotes intimate visual material on a website or other forum for publication that is owned or operated by the defendant.

A person damaged by the disclosure or promotion of the intimate visual material can collect actual and exemplary damages, costs and attorney’s fees. The unlawful disclosure of the intimate visual material will also be a Class A misdemeanor under section 21.16 of the Penal Code.

· Effective Date: September 1, 2015. Changes to the CPRC under SB 1135 apply only to a cause of action that accrues on or after the effective date. Changes to the Penal Code apply to visual material disclosed or promoted, or threatened to be disclosed, on or after the effective date, regardless of whether the visual material was created or transmitted to the actor before, on, or after that date.

Judiciary/Court Administration

HB 1 - General Appropriations Bill

· Summary: The Legislature passed a state budget (i.e., HB 1) that appropriates $796.8 million for the judiciary during the next biennium and includes funding for many of the judiciary’s initiatives. The $796.8 million for the judiciary, which represents only 0.38% of the entire state budget, is $32.8 more than the appropriations made by the Legislature in 2013 (a 4.3% increase over the last biennium). HB 1 includes funding for the following:

· Basic Civil Legal Services – The Supreme Court will receive $61.4 million over the next biennium for basic civil legal services, of which $10 million will be dedicated for legal aid for sexual assault victims and $1.5 million for veterans.

· EFileTexas.gov – HB 1 provides an estimated $45.5 million in General Revenue–Dedicated Funds, an increase of $17.0 million, for vendor payments to manage the eFiling system and assist courts in implementing the mandate requiring the electronic filing of cases by attorneys in appellate, district, county-level, and statutory probate courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts will receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

· Effective Date: September 1, 2015.

SB 455 - Creation of a Special Three-Judge District Court

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), amends the Texas Government Code to create a procedural mechanism that allows the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel will be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system, or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts.

A petition filed by the Attorney General under SB 455 stays all proceedings in the district court in which the case was filed until the Chief Justice acts on the petition. Within a reasonable time after receipt of a petition from the Attorney General, the Chief Justice must grant the petition and issue an order transferring the case to the special three-judge court.

SB 455 also provides that the three-judge district court will consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen by the Chief Justice sits. The three-judge court must sit in the county in which the case was filed and will be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

Appeals from an appealable interlocutory order or final judgment of the three-judge court will be directly to the Supreme Court. The Supreme Court may adopt rules for appeals from the three-judge court.

· Effective Date: September 1, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), amends the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail, and applies to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail does not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams.

· Effective Date: September 1, 2015.

SB 1139 - Operation and Administration of and Practice in Courts in the Judicial Branch and Increase of Filing Fees

· Summary: SB 1139, filed by Sen. Joan Huffman (R - Houston), is an omnibus bill that, among other things, creates several new district courts and county courts at law, addresses the composition of juvenile boards, and raises the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Effective Date: Various sections of SB 1139 are effective on September 1, 2015; others will be effective on January 1, 2016. The section related to the increase in filing fees will be effective on September 1st and applies to fees that become payable on or after that date.

Patent Infringement Claims

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), amends the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." SB 1457 defines a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" means that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 does not create a private cause of action. Instead, it authorizes the AG to bring an action if the AG believes that the prohibition against bad faith claims of patent infringement has been violated. The AG may also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

SB 1457 specifically states that it does not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the “knowing” institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA will be a Class A misdemeanor.

· Effective Date: September 1, 2015.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), requires the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals.

· Effective Date: September 1, 2015.

Trial Court Procedure

HB 1692 - Doctrine of Forum Non Conveniens

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), amends sections 71.051(e) and (h) of the CPRC to provide that a court may not stay or dismiss a plaintiff’s claim under the forum non conveniens provisions of the CPRC if the plaintiff is either a legal resident of Texas or a “derivative claimant” of a legal Texas resident. The determination of whether a claim may be stayed or dismissed must be made “with respect to each plaintiff without regard to whether the claim of any other plaintiff may be stayed or dismissed” and “without regard to a plaintiff’s country of citizenship or national origin.” If the case involves both plaintiffs who are legal Texas residents and plaintiffs who are not, the trial court must consider the factors provided by the forum non conveniens provisions of the CPRC and determine whether to deny the motion or to stay or dismiss the claim of any plaintiff who is not a legal Texas resident.

HB 1692 eliminates the “legal resident” definition from the CPRC and adds a definition for “derivative claimant,” which means “a person whose damages were caused by personal injury to or the wrongful death of another.” The bill also adds an exclusion to the definition of “plaintiff” stating that the term does not include “a representative, administrator, guardian, or next friend who is not otherwise a derivative claimant of a legal resident of this state.”

· Effective Date: June 16, 2015. The changes in the law implemented by HB1692 will apply only to an action commenced on or after June 16th.

Legislative Update
June 1, 2015

The regular session of the 84th Legislature has come to a close. According to the Texas Legislative Reference Library, a total of 6,476 bills and resolutions were introduced during the session. Of that total, over 1,300 bills were passed and sent to Governor Abbott, some of which have already been signed into law. The Governor has until Sunday, June 21, 2015, to sign, veto, or let become law without signature legislation that was passed during the regular session.

In addition to the normal subject headings, I have created the following categories to describe the disposition of all monitored bills: Bills Signed by the Governor; Bills That Passed; and Bills that Failed to Pass. Hopefully, the creation of such categories will make the updates easier to review. I will send out a final update after June 21st in order to summarize the final disposition of all passed legislation.

As in past updates, the bill number links in the “Week in Review” will take you to the summaries for each bill.

Week in Review

The House and/or Senate took action on various monitored bills/resolutions. The actions taken were as follows:

Sent to the Governor:

HB 7 – Repeal of Occupation Tax

HB 1265 – Deceptive Trade Act or Practice Involving a Solicitation in Connection with a Good or Service

HB 1403 – Defining Health Care Liability Claim for Purposes of Certain Claims

HB 1692 – Doctrine of Foreign Non Conveniens

HB 2573 – Deceptive Trade Practice Related to the Use of Certain Words to Imply that a Person who is not an Attorney is Authorized to Practice Law

HB 3364 – Appeals of Eviction Suit Judgments

SB 512 – Promulgation of Forms for Use in Probate Matters

SB 735 – Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

SB 1135 – Creation of Civil and Criminal Liability for Disclosure or Promotion of Intimate Visual Material

SB 1139 – Operation and Administration of and Practice in Courts in the Judicial Branch and Increase of Filing Fees

SB 1457 – Bad Faith Patent Infringement Claims

Signed by the Governor:

SB 455 – Creation of a Special Three-Judge District Court

SB 627 – Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action

SB 1116 – Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

BILLS SIGNED BY THE GOVERNOR

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), amends section 82.037 of the Government Code and revises the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and HB 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis for SB 534: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On May 15, 2015, Governor Abbott signed SB 534 into law. It is effective immediately (i.e., May 15th). (Senate/Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee.)(House/Committee History: On April 30th, after having been considered by and voted out of Judiciary & Civil Jurisprudence on April 28th, the full House passed SB 534 without amendment, thereby making it eligible for the Governor to sign into law. The Senate had unanimously passed SB 534 on March 24th).)

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the Civil Practice and Remedies Code (CPRC) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill, HB 1766, was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On May 28, 2015, Governor Abbott signed SB 627 into law. It is effective immediately (i.e., May 28th). (Senate/Committee History: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 627 begins around the 1:35:55 mark. On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel. On April 22, 2015, the full Senate unanimously passed SB 627.)(House/Committee History: After passage in the Senate, the bill was sent to the House and referred to Judiciary & Civil Jurisprudence, where it was unanimously voted out of committee without amendments on May 12th. The full House unanimously passed SB 627 on May 15th.)

· Bill Analysis for HB 1766: House Research Organization

· Fiscal Note for HB 1766: Legislative Budget Board

· Status of HB 1766: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1766 out of committee on April 23, 2015. The committee substitute made the bill identical to the version adopted by the Senate. (Committee History: The committee conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 1766: Witness List. TTLA, TLR, and the Texas Association of Broadcasters were among those who either testified or registered as being for the bill. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1766 begins around the 2:45 mark.)

Judiciary/Court Administration

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Center

· Status of SB 455: Governor Abbott signed SB 455 into law on May 28, 2015. It will be effective on September 1, 2015. (Senate/Committee History: On April 28th, State Affairs unanimously voted SB 455 out of committee. On May 4th, the full Senate, by a 21-10 vote, passed the bill without amendment. The committee had conducted a public hearing on April 20, 2015. Several witnesses either testified or registered a position on the bill. The only witness who testified was a TTLA representative, who spoke in favor of the bill. TLR registered as being for the bill, while a representative of the NAACP and a Mexican American Legal Defense and Educational Fund representative registered as being against SB 455. All of the witnesses who either testified or registered a position on SB 455 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 455 begins around the 22:55 mark.) (House/Committee History: SB 455 was referred to Judiciary & Civil Jurisprudence on May 5th, which subsequently voted SB 455 out of committee without amendment on May 12th. The full House passed the bill (without amendment) on May 19th.)

· Bill Analysis for HB 1091: House Research Organization

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark.)

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis for SB 1116: Senate Research Center

· Fiscal Note for SB 1116: Legislative Budget Board

· Status of SB 1116: Governor Abbott signed SB 1116 into law on May 20, 2015. It will be effective on September 1, 2015. (Senate/Committee History: State Affairs unanimously voted a committee substitute for SB 1116 out of committee on April 22, 2015. On April 30th, the full Senate unanimously passed SB 1116. While in committee, State Affairs conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Video Archive. Testimony about SB 1116 begins around the 55:30 mark. On April 30th, the full Senate unanimously passed SB 1116.)(House/Committee History: On May 4th, SB 1116 was referred to Judiciary & Civil Jurisprudence in the House, who promptly voted it out of committee (unanimously and without amendment) on May 7th. The full House unanimously passed SB 1116 on May 15th.)

· Bill Analysis for HB 2822: House Research Organization

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence unanimously voted HB 2822 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 2822 begins around the 11:26:10 mark.)

BILLS THAT PASSED

The subject-matter groupings below are for the bills that passed and are awaiting the Governor’s signature. The status of each bill has been updated below and, where appropriate, links to text of the bill, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of passed bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading. Any recent subject heading or bill summary additions are denoted with a “++.”)

Attorneys - Practice of Law

Damages

Deceptive Trade Practices Act++

Evictions

Health Care Liability

Internet Activity++

Judiciary/Court Administration

Patent Infringement Claims

Probate Court Proceedings

Trial Court Procedure

Attorneys – Practice of Law

HB 2089 - Repeal of Occupation Tax (Companion: SB 765; Similar Bill: HB 7)

· Summary: HB 2089, filed by Rep. Drew Darby (R - San Angelo), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. Multiple representatives have joined in on the bill. The companion bill, SB 765, was filed by Sen. Kevin Eltife (R - Tyler). HB 7, also filed by Rep. Darby, relates to the use of certain statutorily-dedicated revenue and includes provisions that would repeal various occupation taxes, including the attorney tax.

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: On April 23, 2015, the House unanimously passed HB 2089. The bill was received by the Senate and referred to Finance on April 28th. (Committee History: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The committee approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015.)

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Video Archive (March 3rd) and Senate Video Archive (Public Testimony - March 4th) . Testimony about SB 765 in the March 3rd hearing begins around the 10:45 mark; public testimony in the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill died in committee.

· Bill Analysis for HB 7: Senate Research Center

· Fiscal Note for HB 7: Legislative Budget Board

· Status of HB 7: The House originally passed HB 7 on April 28, 2015. The Senate passed the bill, as amended, on May 26th. The House subsequently approved the Senate amendments to HB 7 on May 29th. HB 7 was sent to Governor Abbott on June 1, 2015. If signed by the Governor, the changes in the law addressed in HB 7 will be effective on September 1, 2015. The changes in the law made by HB 7 would not affect a surcharge, additional fee, additional charge, fee increase, tax, or late fee imposed before the effective date.

Damages

SB 735 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: HB 969)

· Summary: SB 735, filed by Sen. Troy Fraser (R - Horseshoe Bay), would amend section 41.011 of the Texas Civil Practice and Remedies Code (CPRC) to define “net worth” to mean “the total assets of a person minus the total liabilities of the person on a date determined appropriate by the trial court.” SB 735 also seeks to add section 41.0115 to the CPRC, which would provide as follows:

“Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for exemplary damages. Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery. (b) If a trial court authorizes discovery under Subsection (a), the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence. (c) When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by Subsection (a).”

By way of floor amendment, the House amended SB 735 to include the following language: “If a party requests net worth discovery under this section, the court shall presume that the requesting party has had adequate time for the discovery of facts relating to exemplary damages for purposes of allowing the party from whom net worth discovery is sought to move for summary judgment on the requesting party’s claim for exemplary damages under Rule 166a(i), Texas Rules of Civil Procedure.”

The companion to the original bill, HB 735, was filed by Rep. Ken King (R - Hemphill).

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: SB 735 was sent to Governor Abbott on May 30, 2015. If signed by the Governor, the changes in the law addressed in SB 735 would become effective on September 1, 2015. The changes in the law made by SB 735 would apply only to an action filed on or after the effective date. (Senate/Committee History: By a 7-2 vote, State Affairs voted SB 735 out of committee on April 22, 2015. The committee conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from TLR, the Texas Public Policy Foundation, and other business organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Video Archive. Testimony about SB 735 begins around the 2:37:40 mark. By a 20-11 vote, the full Senate passed SB 735 on April 28, 2015.)(House/Committee History: In the House, the bill was referred to Judiciary & Civil Jurisprudence on May 4th and then was unanimously voted out of committee, without amendment, by a 5-4 vote on May 13th. By a 93-44 vote, the full House passed an amended version of SB 735 on May 22, 2015.)

· Bill Analysis for HB 969: House Research Organization

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: The Judiciary & Civil Jurisprudence committee conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and other business organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 969 begins around the 3:30:35 mark. On April 23rd, by a 5-4 vote, Judiciary & Civil Jurisprudence voted a committee substitute for HB 969 out of committee.

Deceptive Trade Practices Act

++HB 1265 - Deceptive Trade Act or Practice Involving a Solicitation in Connection with a Good or Service

· Summary: HB 1265, filed by Rep. Gene Wu (D - Houston), would amend section 17.46(b) of the Business & Commerce Code to provide that the term “false, misleading, or deceptive acts or practices” will include the following:

(28) delivering or distributing a solicitation in connection with a good or service that represents that the solicitation is sent on behalf of a governmental entity when it is not, or resembles a governmental notice or form that represents or implies that a criminal penalty may be imposed if the recipient does not remit payment for the good or service;

(29) delivering or distributing a solicitation in connection with a good or service that resembles a check or other negotiable instrument or invoice, unless the portion of the solicitation that resembles a check or other negotiable instrument or invoice includes the following notice, clearly and conspicuously printed in at least 18-point type: "SPECIMEN-NON-NEGOTIABLE;"

(30) in the production, sale, distribution, or promotion of a synthetic substance that produces and is intended to produce an effect when consumed or ingested similar to, or in excess of, the effect of a controlled substance or controlled substance analogue, as those terms are defined by section 481.002 of the Health and Safety Code, making a deceptive representation or designation about the synthetic substance, or causing confusion or misunderstanding as to the effects the synthetic substance causes when consumed or ingested; or

(31) a licensed public insurance adjuster directly or indirectly soliciting employment, as defined by section 38.01 of the Penal Code, for an attorney, or a licensed public insurance adjuster entering into a contract with an insured for the primary purpose of referring the insured to an attorney without the intent to actually perform the services customarily provided by a licensed public insurance adjuster, provided that this subdivision may not be construed to prohibit a licensed public insurance adjuster from recommending a particular attorney to an insured.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: The Senate passed HB 1265 on May 27, 2015. The House passed the bill on May 29th. HB 1265 was sent to Governor Abbott on June 1, 2015. If signed by the Governor, the changes made by HB 1265 would become effective on September 1, 2015 and apply only to a cause of action that accrues on or after the effective date.

++HB 2573 - Deceptive Trade Practice Related to the Use of Certain Words to Imply that a Person who is not an Attorney is Authorized to Practice Law

· Summary: HB 2573, filed by Rep. Eric Johnson (D - Dallas), amends section 17.46(b) of the Business & Commerce Code to provide that the term "false, misleading, or deceptive acts or practices" will include the translation into a foreign language of a title or other word, including "attorney," "lawyer," "licensed," "notary," and "notary public," in any written or electronic material, including an advertisement, a business card, a letterhead, stationery, a website, or an online video, in reference to a person who is not an attorney in order to imply that the person is authorized to practice law.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: The Senate passed HB 2573 on May 26, 2015. The House passed the bill on May 28th. HB 2573 was sent to Governor Abbott on May 30, 2015. If signed by the Governor, the changes made by HB 2573 would become effective on September 1, 2015 and apply only to a cause of action that accrues on or after the effective date.

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 3364 was sent to Governor Abbott on May 30, 2015. If signed by the Governor, the changes made by HB 3664 would be effective on January 1, 2016 and apply to a final judgment rendered on or after that date. (House/Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015 and unanimously voted the bill out of committee, without amendment, on April 29th. No witnesses testified on HB 3364; however, a few witnesses registered as being for the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3364 begins around the 3:48:15 mark. On May 12, 2015, HB 3364 was unanimously passed by the full House.)(Senate/Committee History: On May 14th, the bill was referred to State Affairs in the Senate and a public hearing was conducted on May 22, 2015. No one testified on, for, or against the bill; however, a representative from the Texas Association of Realtors(TAR) registered as being in support of the bill. By a 6-0 vote (3 members absent), State Affairs subsequently voted the bill out of committee without amendments. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive Witness List. Testimony about HB 3364 begins around the 32:40 mark. The Senate unanimously passed HB 3364 on May 27th)

Health Care Liability

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir. [Note: The committee substitute for HB 1403 that was adopted by the Judiciary & Civil Jurisprudence Committee would also require the expert report required under 74.351(a) to “address at least one theory of direct liability asserted against each physician or health care provider against whom a theory of direct liability is asserted.” However, the report requirement was subsequently removed from the bill via a floor amendment.]

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 1403 was sent to the Governor on May 27th. If signed by the Governor, the changes in the law addressed by HB 1403 will become effective on September 1, 2015. The change in law made by HB 1403 will apply only to a cause of action that accrues on or after the effective date. (Senate/Committee History: On May 14th, the bill was referred to State Affairs in the Senate. A public hearing was conducted on May 22, 2015. Only one witness testified at the hearing-- a representative from TLR testified in support of the bill. Representatives of TTLA, Texas Association of Business, and Texas Alliance for Patient Access registered (but did not testify) in support of the bill. On May 22nd, by a 7-0 vote (2 members absent), the bill was voted out of committee without amendment. The full Senate subsequently passed the bill on May 24th. For those who are interested in watching the Senate State Affairs committee hearing, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive Witness List. Testimony about HB 1403 begins around the 56:30 mark.)(House/Committee History: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1403 out of committee on April 23, 2015 and the full House passed HB 1403 on May 13th by a 141-1 vote. The Judiciary & Civil Jurisprudence committee conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified in support of HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 1403 begins around the 11:10:45 mark. On May 13, 2015, the full House passed HB 1403 by a 141-1 vote.)

Internet Activity

++SB 1135 - Creation of Civil and Criminal Liability for Disclosure or Promotion of Intimate Visual Material

· Summary: SB 1135 (a/k/a Relationship Privacy Act), filed by Sen. Sylvia Garcia (D- Houston), Sen. Joan Huffman (R - Houston), and Sen. Judith Zaffirini (D - Laredo), would add Chapter 98B to the Civil Practice and Remedies Code and section 21.16 to the Penal Code and create a new criminal offense and civil cause of action for "revenge porn," a trend in which an ex-partner, seeking revenge, posts intimate sexual pictures of a former significant other on the Internet. In a civil case, a defendant would be liable for damages to a person depicted in intimate visual material if:

(1) the defendant discloses intimate visual material without the effective consent of the depicted person;

(2) the intimate visual material was obtained by the defendant or created under circumstances in which the depicted person had a reasonable expectation that the material would remain private;

(3) the disclosure of the intimate visual material causes harm to the depicted person; and

(4) the disclosure of the intimate visual material reveals the identity of the depicted person in any manner, including through: (a) any accompanying or subsequent information or material related to the intimate visual material; or (b) information or material provided by a third party in response to the disclosure of the intimate visual material.

A defendant would also be liable for damages to a person depicted in intimate visual material under SB 1135 if the defendant, knowing the character and content of the material, promotes intimate visual material on a website or other forum for publication that is owned or operated by the defendant.

A person damaged by the disclosure or promotion of the intimate visual material could collect actual and exemplary damages, costs and attorney’s fees. The unlawful disclosure of the intimate visual material would also be a Class A misdemeanor under section 21.16 of the Penal Code.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: The Senate unanimously passed SB 1135 on April 14, 2015. The House unanimously passed the bill on May 26th. The bill was sent to the Governor on May 29th. If signed by Governor Abbott, the effective date of SB 1135 will be on September 1, 2015. Changes to the CPRC in the law under SB 1135 apply only to a cause of action that accrues on or after the effective date. Changes to the Penal Code apply to visual material disclosed or promoted, or threatened to be disclosed, on or after the effective date, regardless of whether the visual material was created or transmitted to the actor before, on, or after that date.

Judiciary/Court Administration

HB 1 - Appropriations (Appellate Court Budget Only)

· Summary/Status: On May 29, 2015, the House and Senate voted to adopt the conference committee report for HB 1,which appropriates $796.8 million for the judiciary during the next biennium and includes appropriations for many of the judiciary’s initiatives. The $796.8 million for the judiciary, which represents only 0.38% of the entire state budget, is $32.8 more than the appropriations made by the Legislature in 2013 (a 4.3% increase over the last biennium). HB 1 includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.5 million for veterans.

· EFileTexas.gov – HB 1 provides an estimated $45.5 million in General Revenue–Dedicated Funds, an increase of $17.0 million, for vendor payments to manage the eFiling system and assist courts in implementing the mandate requiring the electronic fi ling of cases by attorneys in appellate, district, county-level, and statutory probate courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

· Bill History: The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.)

++SB 1139 - Operation and Administration of and Practice in Courts in the Judicial Branch and Increase of Filing Fees

· Summary: SB 1139, filed by Sen. Joan Huffman (R - Houston), would, among other things, create several new district courts and county courts at law, address the composition of juvenile boards, and raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 30, 2015, the Senate adopted the conference committee report. On May 31st, the House adopted the conference committee report. SB 1139 was sent to Governor Abbott on June 1st. If signed by the Governor, there are various changes addressed in SB 1139 that will become effective on September 1, 2015; others would be effective on January 1, 2016. The section related to the increase in filing fees would be effective on September 1, 2015, and apply to fees that become payable on or after September 1st.

Patent Infringement Claims

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would not create a private cause of action. Instead, it would authorize the Attorney General to bring an action if the Attorney General believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the “knowing” institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA will be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: SB 1457 was sent to Governor Abbott on May 26, 2015. If signed by the Governor, SB 1457 will be effective on September 1, 2015. (Senate/Committee History: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Broadcast Archive. Testimony about SB 1457 begins around the 39:10:00 mark. On April 15, 2015, the committee unanimously voted the committee substitute out of committee. The substitute deleted the criminal penalties for barratry. On April 21, 2015, the full Senate unanimously passed SB 1457)(House/Committee History: Judiciary & Civil Jurisprudence had considered the bill in public hearing on May 19th and unanimously (8-0) voted the bill out of committee on May 20th. At the public hearing, only two witnesses testified on SB 1457—a TTLA representative who testified in support of the bill and a representative from the Attorney General’s Office who provided resource testimony. Numerous individuals registered their support for the bill without providing testimony. No one opposed it. For those who are interested, here is a link to the House Broadcast Archive and the Witness List. Testimony about SB 1457 begins around the 58:15 mark. On May 22nd, the full House passed the bill (without amendment) by a 138-2 vote.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), requires the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. [A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston). The bill was referred to Judiciary & Civil Jurisprudence on March 13, 2015.]

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: SB 512 was sent to Governor Abbott on May 26, 2015. (Senate/Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Broadcast Archive. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015. On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote.)(House/Committee History: Judiciary & Civil Jurisprudence took public testimony on SB 512 on May 19th and unanimously (8-0) voted the bill out of committee on May 20th. On May 22nd, the full House passed the bill (without amendment) by a 138-2 vote. During the committee hearing, only three individuals testified on SB 512—all were in favor of the bill. Numerous individuals registered their support for the bill without providing testimony. No one opposed it. For those who are interested, here is a link to the House Broadcast Archive and the Witness List. Testimony about SB 512 begins around the 2:39 mark.)

Trial Court Procedure

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), amends sections 71.051(e) and (h) of the CPRC to provide that a court may not stay or dismiss a plaintiff’s claim under the forum non conveniens provisions of the CPRC if the plaintiff is either a legal resident of Texas or a “derivative claimant” of a legal Texas resident. The determination of whether a claim may be stayed or dismissed must be made “with respect to each plaintiff without regard to whether the claim of any other plaintiff may be stayed or dismissed” and “without regard to a plaintiff’s country of citizenship or national origin.” If the case involves both plaintiffs who are legal Texas residents and plaintiffs who are not, the trial court must consider the factors provided by the forum non conveniens provisions of the CPRC and determine whether to deny the motion or to stay or dismiss the claim of any plaintiff who is not a legal Texas resident.

HB 1692 eliminates the “legal resident” definition from the CPRC and adds a definition for “derivative claimant,” which means “a person whose damages were caused by personal injury to or the wrongful death of another.” The bill also adds an exclusion to the definition of “plaintiff” stating that the term does not include “a representative, administrator, guardian, or next friend who is not otherwise a derivative claimant of a legal resident of this state.”

The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1692: House Research Organization

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: HB 1692 was sent to Governor Abbott on May 26th. If signed by the Governor, the bill will be effectively immediately. (House/Committee History: On May 11, 2015, the full House passed HB 1692 by a 132-5 vote. On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark.)(Senate/Committee History: HB 1692 was forwarded to the Senate and referred to State Affairs on May 12th. The committee took public testimony on May 18th. There were numerous witnesses that either testified or registered a position on, for, or against the bill. Organizations such as the Texas NAACP, the ACLU, and Texas Justice Center opposed the bill, while business, trade organizations, and interest groups such Shell Oil, Conoco Phillips, Ford Motor Company, Texas Civil Justice League, and Texans for Lawsuit Reform supported the bill. For those interested in watching the hearing and reviewing the complete list of witnesses, here are the links to the video and the witness list: Senate Video Archive and Witness List. Testimony about HB 1692 begins around the 9:40 mark. On May 19th, the committee voted (8-1) HB 1692 out of committee without amendment. On May 22nd, the full Senate passed HB 1692 (without amendment) by a 27-4 vote.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

BILLS THAT FAILED

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. The bill was never put to a full House vote. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. On May 4th, the bill was referred to State Affairs in the Senate and a public hearing was conducted on May 21, 2015. No one testified on, for, or against the bill. A representative for Texans for Lawsuit Reform (TLR) registered as being against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive and Witness List. Testimony about HB 230 begins around the 47:00 mark. The bill died in committee. (House Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would have placed limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would have also applied to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would have permitted a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would have added section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would have been a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would have amended the Government Code by adding section 82.025 and would have permitted an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Fiscal Note for HB 2045: Legislative Budget Board

· Status of HB 2045: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 2045 begins around the 49:20 mark. The bill died in committee.

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would have amended the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would have received a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have been required to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would have created its own rules to carry out the bill's provisions. The bill specifically required the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would have added a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would have meant a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would have added Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 2512 begins around the 2:50:00 mark. The bill died in committee.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would have amended the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 12, 2015, the full Senate unanimously voted to pass SJR 8. The resolution was subsequently sent to the House and was referred to Judiciary & Civil Jurisprudence on May 14th. Judiciary & Civil Jurisprudence took public testimony on SJR 8 on May 19th and unanimously (8-0) voted the resolution out of committee on May 21st. SJR 8 was eligible for full House deliberation. Only three individuals testified on SJR 8—all appeared as resource witnesses. Two individuals registered without testifying—one in support of the bill (a representative of Guardianship Reform Advocates for the Disabled & Elderly) and one opposed (a representative from the Bexar County District Attorney’s Office). For those who are interested, here is a link to the House Broadcast Archive and the Witness List. Testimony about SJR 8 begins around the 2:54:30 mark.)(Senate Committee History: State Affairs conducted a public hearing on May 7, 2015 and unanimously voted the resolution out of committee on May 8th. Here is the witness list and a link to the archive broadcast of the hearing: Senate Video Archive Witness List. Testimony about SJR 8 begins around the 1:29:40 mark.)

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would have amended section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would have applied only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would have been reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Construction industry representatives testified in support of HB 1784, while TTLA and representatives of the cities of Fort Worth and Austin opposed the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1784 begins around the 1:53:20 mark. A committee substitute was proposed, but has yet to be posted. The bill died in committee.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would have amended Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill died in committee.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would have amended the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not have applied to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill died in committee.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would have amended sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would have (a) substituted the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) changed the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would have prohibited a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would have violated a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Analysis for HB 670: House Research Organization

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: On May 7, 2015, Judiciary & Civil Jurisprudence voted HB 670 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would have prohibited a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 also would have required a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel Actions

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would have amended section 73.005 of the CPRC by adding subsections (b) and (c), which would have changed section 73.005 to read as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would have eliminated straight ticket voting for judicial offices. HB 25 was virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 died in committee.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 died in committee.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would have amended section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 3880 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 3880, filed by Rep. Craig Goldman (R - Fort Worth), would have repealed sections 172.021(e) and (g) of the Elections Code, which would have eliminated the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 2754) was filed by Rep. Giovanni Capriglione (R – Southlake). A public hearing was held in front of Elections at the same time as HB 3880. The committee voted HB 2754 out of committee on April 16, 2015 without amendment. It was passed by the full House (135-4) on May 8th. Here is the status and analysis for the bill: Status of HB 2754 Bill Analysis.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 3880 out of committee (by a 6-0 vote, with one absent) without amendments. It was passed by the full House (135-4) on May 8th and has been sent to the Senate. (House Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3880 begins around the 3:14:00 mark.)

Family Law

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would have prohibited a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would have violated a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 531 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: HB 562)

· Summary: SB 531, filed by Sen. Donna Campbell (R - New Braunfels), would have prohibited a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would have been “contrary to the public policy of [Texas].” Under the bill, the application of a law would be contrary to public policy if it would: (1) violate a fundamental right guaranteed by the United States Constitution; (2) violate a fundamental right guaranteed by the Texas constitution; (3) violate good morals or natural justice; or (4) be prejudicial to the general interests of the citizens of Texas. The companion bill to the original version of SB 531 (HB 562) was filed by Rep. Jeff Leach (R - Plano).

· Bill Analysis for SB 531: Senate Research Center

· Fiscal Note for SB 531: Legislative Budget Board

· Bill Status for SB 531: State Affairs voted SB 531 out of committee on May 18, 2015 and the full Senate subsequent passed the bill on May 22, 2015. In the House, Judiciary & Civil Jurisprudence voted SB 531 out of committee on May 23rd. The bill has been sent to Calendars for consideration. (Senate Committee History: State Affairs conducted a hearing on the bill on May 4, 2015. Numerous individuals and groups either testified or registered a position on SB 531. Here is the witness list and a link to the archived broadcast of the hearing: Senate Video Archive Witness List. Testimony about SB 531 begins around the 2:14:10 mark.)

· Bill Analysis for HB 562: House Research Organization

· Fiscal Note for HB 562: Legislative Budget Board

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562 (as amended) out of committee by a 7-2 vote. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would have amended the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would have required an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would have amended the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would have amended section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would have otherwise been liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would have been eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

SB 1600 - Limit on Award of Attorney's Fees in Certain Proceedings against the State or State Agency (Companion: HB 3641)

· Summary: SB 1600, filed by Sen. Lois Kolkhorst (R - Brenham), would have amended the Texas Uniform Declaratory Judgments Act (DJA) and limit the amount of attorney’s fees awarded in cases seeking declaratory relief against the state or a state agency to an amount “not to exceed to exceed $250,000.” The companion bill, HB 3641, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1600: Senate Research Center

· Fiscal Note for SB1600: Legislative Budget Board

· Status of SB 1600: On April 29th, by a 7-1 vote, State Affairs voted SB 1600 out of committee. The committee had conducted a public hearing on April 20, 2015. Several witnesses registered a position on the bill. TTLA and the Texas NAACP were among those organizations registering their opposition to the bill while TLR and the Texas Conservative Coalition registered as being in favor of the bill. A representative from the Attorney General’s Office was the only testifying witness. All of the witnesses who either testified or registered a position on SB 1600 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1600 begins around the 32:20 mark.

· Fiscal Note for HB 3641: Legislative Budget Board

· Status of HB 3641: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Only a representative from the Attorney General’s Office testified on HB 3641. A representative of TLR registered as being for the bill while TTLA registered as being opposed to the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3641 begins around the 3:55:20 mark. The bill died in committee.

Government Settlement Agreements

HB 1630 - Limitations on Settlement Agreements with Governmental Units

· Summary: HB 1630, filed by Rep. Ramon Romero, Jr. (D - Fort Worth), would have prohibited a state or local governmental unit from entering 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; and (2) a condition of the settlement requires the 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. HB 1630 would have also:

o Prohibited a governmental unit from disclosing the personal information of a party seeking affirmative relief unless the party agrees to the disclosure.

o Provided that a provision in a settlement agreement that is in violation of the non-disclosure prohibition is void and unenforceable.

o Provided that the bill does not affect information that is privileged or confidential under other law.

o Provided that evidence of furnishing (or offering or promising to furnish) or accepting (or offering or promising to accept) a valuable consideration in compromising or attempting to compromise a disputed claim against a governmental unit is not admissible to prove liability for or the invalidity of the claim or its amount.

o Provided that evidence of conduct or statements made in settlement negotiations is likewise not admissible; that such prohibitions do not require the exclusion of any evidence otherwise discoverable merely because it is presented during settlement negotiations, or when the evidence is offered for another purpose, such as proving bias or prejudice or interest of a witness or a party, negating a contention of undue delay, or proving an effort to obstruct a criminal investigation or prosecution.

o Provided that the changes in the law made by HB 1630 would have applied to the settlement of a claim or action with respect to the cause of action upon which the claim or action was based and accrued on or after the effective date of the bill (i.e., September 1, 2015).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: By a vote of 117-26, the full House passed HB 1630 on May 13, 2015 and forwarded the bill to the Senate. On May 22nd, State Affairs took public testimony on the bill. A representative from the Texas Conference of Urban Counties was the only individual to testify and take a position on the bill (TCUC was opposed). Others registering a position on the bill included the Texas Press Association, the Freedom of Information Foundation of Texas, and a member of the Tarrant County Criminal District Attorney’s Office (all in favor of the bill) and a representative from the Tarrant County Commissioners Court (against the bill). For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive Witness List. Testimony about HB 1630 begins around the 54:10 mark. State Affairs subsequently voted the bill out of committee, without amendment, by an 8-1 vote. (House Committee History: The Judiciary & Civil Jurisprudence committee conducted a public hearing on April 14, 2015. Several witnesses testified/registered either for, on or against HB 1630. A representative from the Texas Conference of Urban Counties was the only individual to testify, and indicated that TCUC was opposed to the bill. Others registering a position on the bill were the Texas Press Association and Texas Association of Broadcasters (in favor of the bill) and representatives from the Texas Municipal League, Harris County, Texas Association of Counties, and the Tarrant and Bexar County Commissioners Courts). Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 1630 begins around the 2:16:10 mark. On April 16, 2015, the Judiciary & Civil Jurisprudence unanimously voted HB 1630 out of committee without amendments.)

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would have amended the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would have included “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill also would have amended the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would have amended the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not have applied if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant failed to provide an affidavit of damages as defined by SB 1166; or (3) the insurer paid to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would have required a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intended to seek in a suit no later than the 30th day before the date the claimant commenced the suit against the insurer. However, if a claimant ultimately sought damages that exceeded the amount in the claimant’s affidavit, the claimant would have been required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant filed a pleading seeking the excess amount.

Under SB 1166, a claimant also could have filed a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim did not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case could not have exceeded two times the disputed amount of the claim. If a suit seeking damages was filed as a small claims case as provided by the Government Code, an insurer could have elected to waive the insurer’s right to appeal no later than the 15th day after the date the suit was filed against the insurer.

Finally, SB 1166 also would have amended section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would have been liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 also would have added the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court would determine the amount of attorney’s fees awarded, but the amount of attorney’s fees had to bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would have begun to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney could not share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

SB 1628 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: HB 3646)

· Summary: SB 1628, was filed by Sen. Larry Taylor (R - Friendswood), would have amended various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would have no longer included an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would have been “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would have been required to provide written notice to the insurer at least 61 days prior to filing suit that included a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured would accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice had to contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured would cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured would accept in full and final satisfaction of the claim.

o Established a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal or abatement.

o Established a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, HB 3646, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: On April 30th, the full Senate passed SB 1628 by a 21-10 vote. It was referred to the Insurance (House) on May 4th, which subsequently adopted a committee substitute that was voted out of committee on May 15th. (Senate Committee History: Business & Commerce voted a committee substitute for SB 1628 out of committee on April 20, 2015. The committee conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1628 begins around the 6:20 mark.)

· Fiscal Note for HB 3646: Legislative Budget Board

· Status of HB 3646: Insurance conducted a public hearing on April 22, 2015. There were numerous individuals and groups registered to testify for HB 3646, but the witness list has yet to be posted. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3646 begins around the 3:27:55 mark. A committee substitute was proposed, but has yet to be posted. The bill died in committee.

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would have amended section 542.062 of the Insurance Code and limited the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance (DOI) would have been required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the DOI, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would have amended the Insurance Code by adding provisions that prohibited an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not have been a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would have been required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages had become reasonably clear.

Also, under HB 3822, prejudgment interest would have started to accrue on the earlier of: (1) the 180th day after the date the claimant notified the insurer of the claim; or (2) the date on which suit was filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would have been considered presented when the insurer received notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would have created a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which statutory county court, district and appellate justices/judges are selected for office. The joint committee would have been required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 was similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 2088 out of committee, but it failed to pass in the House on May 14th. The committee had conducted a public hearing on the bill on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 2088: Witness List. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2088 begins around the 1:35:45 mark.

Judiciary/Court Administration

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which was also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would have established deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would have given the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court failed to request a response and one hundred eighty (180) days if it did not request briefing. The Court would have been required to grant or deny the petition no later than three hundred (300) days after the petition was filed if the Court requested briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition had been granted and a decision was pending, it could have placed the petition on hold until the Court decided the prior case. At such time, the Court would have been required to publish the names of the parties to the petitions and the issues the Court had determined to be related. Once a decision had been issued in the case for which a petition was placed on hold, the Court had thirty (30) days to grant or deny the petition.

The bill also would have required the Supreme Court to issue a decision for all cases in which the Court granted a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition was granted in June or later, the Court could’ve carried the case into the next term under “extraordinary circumstances” but had to explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over had to be decided no later than December 31st of the next term.

SB 64 also required the Court to adopt written procedures that allocated responsibilities to individual justices. The chief justice would have been required to enforce the procedures and deadlines against individual justices. Such enforcement options included the prohibition of a justice from participating in future oral arguments, the reassignment of opinions, the prohibition of a justice from participating in a new case, and the referral of justices to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would have required the courts of appeals to announce whether oral argument had been granted in a civil appeal no later than sixty (60) days after the “final brief” was filed. Oral argument had to be held no later than one hundred twenty (120) days after the date the final brief was filed, and the court had to issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announced that oral argument was denied.

The chief justice of each court of appeals would have been required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appealed fails to comply, the Chief Justice could prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not receive credit for state service for the time period during which the court was prohibited from accepting appeals, and the Legislative Budget Board and Governor would have been required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would have been required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would have required the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would have created a commission to review Texas laws to identify each statute and state agency rule that required an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would have been required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule served a legitimate state purpose, other than the convenience of the state agency, that superseded the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Bill Analysis for HB 1427: House Research Organization

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), sought to amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy was provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would have raised the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 28th, State Affairs voted SB 1970 out of committee by an 8-1 vote. The committee had conducted a public hearing on April 23, 2015. A few witnesses appeared to testify or register a position on the bill. The only witness who testified for the bill was a single probate court judge. A representative of the Family Law Foundation registered as being opposed to SB 1970. All of the witnesses who either testified or registered a position on SB 1970 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1970 begins around the 34:45 mark.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would have amended the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy was $200,000 or more be tried before a jury of twelve (12) members. The bill also would have required that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court was located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) was sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On April 15th, the full Senate passed SB 824. The bill was sent to the House, referred to Judiciary & Civil Jurisprudence on April 27th, and was considered in a formal meeting of the committee on May 7th. Judiciary & Civil Jurisprudence voted SB 824 out of committee, without amendment, by an 8-1 vote on May 13th. (Senate Committee History: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would have created the Texas Redistricting Commission (“TRC”), which would have been responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC also would have been responsible for reapportioning judicial districts in the event the Judicial Districts Board failed to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would have required justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would have created a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. The chancery court would have had no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill were:

o The chancery court would be composed of seven (7) judges who were appointed by the governor for staggered six (6) year terms. The judges would have been selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would have been required to have at least 10 years of experience in complex business law.

o The court clerk would have been located in Travis County, but individual judges would have been based in the county seat of their respective counties.

o Current venue rules would have applied, but cases could have been heard in an agreed-upon county or where the court may have decided to be more convenient or necessary.

o There would have been a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would have handled appeals from the chancery trial court, would have been composed of seven (7) justices from current court of appeals justices that were appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would have served six (6) year terms and would have heard cases in panels of three (3) randomly-selected justices. Appeals from the CCA would have gone to the Supreme Court.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author had originally intended to amend the bill once it reaches the House floor; however, the committee held another public meeting on April 21st and adopted the amended bill. Under the amendments, the bill would (1) exempt certain types of cases from the chancery court’s subject matter jurisdiction (e.g., cases brought under the Estates Code, Family Code, the DTPA, and Title 9 (Trusts) of the Property Code) and (2) increase the minimum amount in controversy to $10 million dollars for certain types of chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: After the initial public hearing, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section was given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), was essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would have affected the manner in which appellate justice/judge campaigns were financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could have requested public financing by filing a petition signed by a specific number of qualified voters who also made a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declared that a candidate had met the eligibility standards, the candidate was entitled to begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would have been composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would have created the Fifteenth District Court of Appeals, which would have sat in Edinburg and been composed of Cameron, Hidalgo, and Willacy counties. The court would have consisted of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would have been reduced to three (3) justices.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 7th, Judiciary & Civil Jurisprudence voted HB 2730 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on April 21, 2015. There were several individuals and groups registered to testify for, on, or against HB 2730: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2730 begins around the 1:04:00 mark.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would have amended section 25.0003(c)(1) of the Government Code and modified the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would have been included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would have amended Chapter 22 of the Government Code and essentially required that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would have added the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Former Chief Justice Tom Phillips was one of the individuals who testified in support of HB 3430. A representative for the Texas Criminal Defense Lawyers Association testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3430 begins around the 2:16:30 mark. The bill died in committee.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would have amended the Texas Constitution and required the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 died in committee.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would have increased the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HJR 90 begins around the 2:28:25 mark. The resolution died in committee.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), sought to regulate “civil justice funding” transactions and “civil justice funding companies,” and to permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction was documented via a written contract that complied with the requirements set forth in the statute. The bill specified that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3454 begins around the 5:15 mark. The bill died in committee.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would have added Chapter 354 to the Finance Code and established statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would have been defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would have required litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which had to be on the front page of the agreement under appropriate headings, would have included the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would have added Chapter 2005 to the Business & Commerce Code and prohibited bad faith patent infringement claims. More specifically, SB 1187 would have prohibited a person from sending a demand letter that made, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) filed a lawsuit alleging patent infringement; (2) threatened to file a lawsuit if the alleged patent infringement was not resolved; or (3) made a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person made a claim of patent infringement in bad faith if: (1) the claim was objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knew or should have known that the claim was objectively baseless. However, a claim of patent infringement would have been presumed to be made in good faith if the claim was made by a person who held a certificate of authority issued by the Attorney General under Chapter 2005 or was a claim for relief arising under federal law.

SB 1187 would not have created a private cause of action, but authorized the Attorney General to enforce any violations of Chapter 2005. The bill also would have created two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Video Archive. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill died in committee.

· Status of HB 3176: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Several witnesses testified and/or registered as being either for, on, or against the bill. Here is a witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HB 3176 begins around the 5:09:40 mark. A committee substitute was proposed, but it has yet to be posted. It is my understanding that the committee substitute would give the AG power to investigate demands made in bad faith. The bill died in committee.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would have amended Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would have added section 82.0045 to the CPRC and provided that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 also would have allowed the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposed a constitutional amendment that would have placed terms limits on legislators (12 years) and would have limited the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 also sought to impose term limits on almost the entire Texas judiciary. For example, SJR 6 would have barred Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not have been subject to the term limits imposed under the current version of SJR 6. SJR 6 would has also applied to "every district office or office of a political subdivision of this state that is filled by popular election," which appeared to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would have been ineligible for re-election if they had served eight years or more. SJR 6 would have become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would have prohibited a person who had been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not have limited a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Status of HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution died in committee.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would have amended section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would have amended the CPRC to add section 15.021, which would have provided that a lawsuit against the State of Texas or a state agency could be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would have added section 17.302 to the CPRC and permitted a court to authorize service of process via electronic communication through a “social media presence” if substituted service was authorized under the Texas Rules of Civil Procedure. HB 241 also sought to require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted HB 241 out of committee, without amendment, on April 23, 2015. (Committee History: The committee conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark.)

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would have amended CPRC section 15.020 and required a court to transfer an action to another county if the parties consented to the transfer and the motion to transfer was filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would have amended the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would have amended the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 3008 out of committee without amendment. The committee had conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3008 begins around the 3:19:30 mark.



Legislative Update

May 25, 2015

There are seven (7) days left in the 84th legislative session. As additional internal deadlines come and go, more bills are falling by the wayside. Of course, it would be premature to say a bill is absolutely dead as long as the Legislature is in session, but any bill originating in the House or Senate that has yet to receive a vote on the floor of either chamber does not have a realistic chance of surviving the regular session unless the text of the bill is added onto another bill via amendment.

In an effort to separate the wheat from the chaff in this update, I have moved the fifty-three (53) monitored bills that are on the verge of extinction to a section entitled “Bills Likely to Fail.” The remaining eighteen (18) monitored bills, even those that are on life support, are listed in the “Bills Still Pending” section. Although only one of the monitored bills has actually made it across the finish line, I have also created a “Bills Signed by the Governor” section.

As in past updates, the bill number links in the “The Week in Review” and “The Week Ahead” sections will take you to the summaries for each bill in the “Bills Still Pending” section.

The Week in Review

The House and/or Senate took action on various monitored bills/resolutions. The actions taken were as follows:

Sent to the Governor for Consideration:

SB 455 – Creation of a Special Three-Judge District Court

SB 627 – Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action

SB 1116 – Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge

Passed by the full Senate or House:

SB 455 – Creation of a Special Three-Judge District Court (voted out of House committee, passed by full House, and sent to Governor)

SB 512 – Promulgation of Forms for Use in Probate Matters (voted out of House committee and passed by full House)

SB 531 – Application of Foreign Laws and Foreign Forum Selection in Family Law Cases (voted out of Senate committee, passed by full Senate, and voted out of House committee)

SB 735 – Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (passed by full House)

SB 1457 – Bad Faith Patent Infringement Claims (voted out of House committee and passed by full House)

HB 1403 – Defining Health Care Liability Claim for Purposes of Certain Claims (voted out of Senate committee and passed by the full Senate)

HB 1692 – Doctrine of Foreign Non Conveniens (voted out of Senate committee and passed by the full Senate)

Voted Out of Committee Only:

SJR 8 – Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes (voted out of House committee)

HB 3364 – Appeals of Eviction Suit Judgments (voted out of Senate committee)

Hearing:

HB 230 – Recovery of Attorney's Fees in Certain Civil Cases

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

Currently, no monitored bills/resolutions are scheduled for public committee hearing this week.

BILLS SIGNED BY THE GOVERNOR

SB 534 - Oath of Persons Admitted to Practice Law in Texas

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), amends section 82.037 of the Government Code and revises the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and HB 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis for SB 534: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On May 15, 2015, Governor Abbott signed SB 534 into law. (Senate/Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee.)(House/Committee History: On April 30th, after having been considered by and voted out of Judiciary & Civil Jurisprudence on April 28th, the full House passed SB 534 without amendment, thereby making it eligible for the Governor to sign into law. The Senate had unanimously passed SB 534 on March 24th).)

BILLS STILL PENDING

The subject-matter groupings below are for bills still pending. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of pending bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading.)

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Constitutional Challenges to Texas Statutes

Damages

Defamation/Libel

Elections

Evictions

Family Law

Government Settlement Agreements

Health Care Liability

Insurance

Judiciary/Court Administration

Patent Infringement Claims

Probate Court Proceedings

Trial Court Procedure

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. On May 4th, the bill was referred to State Affairs in the Senate and a public hearing was conducted on May 21, 2015. No one testified on, for, or against the bill. A representative for Texans for Lawsuit Reform (TLR) registered as being against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive. Testimony about HB 230 begins around the 47:00 mark. The bill was left pending. (House Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

Attorneys – Practice of Law

HB 2089 - Repeal of Occupation Tax (Companion: SB 765)

· Summary: HB 2089, filed by Rep. Drew Darby (R - San Angelo), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. Multiple representatives have joined in on the bill. The companion bill, SB 765, was filed by Sen. Kevin Eltife (R - Tyler).

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: On April 23, 2015, the House unanimously passed HB 2089. The bill was received by the Senate and referred to Finance on April 28th. (Committee History: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The committee approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015.)

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Video Archive (March 3rd) and Senate Video Archive (Public Testimony - March 4th) . Testimony about SB 765 in the March 3rd hearing begins around the 10:45 mark; public testimony in the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 12, 2015, the full Senate unanimously voted to pass SJR 8. The bill was subsequently sent to the House and was referred to Judiciary & Civil Jurisprudence on May 14th. Judiciary & Civil Jurisprudence took public testimony on SJR 8 on May 19th and unanimously (8-0) voted the bill out of committee on May 21st and is eligible for full Senate deliberation. Only three individuals testified on SJR 8—all appeared as resource witnesses. Two individuals registered without testifying—one in support of the bill (a representative of Guardianship Reform Advocates for the Disabled & Elderly) and one opposed (a representative from the Bexar County District Attorney’s Office). For those who are interested, here is a link to the House Broadcast Archive and the Witness List. Testimony about SJR 8 begins around the 2:54:30 mark.)( (Senate Committee History: State Affairs conducted a public hearing on May 7, 2015 and unanimously voted the resolution out of committee on May 8th. Here is the witness list and a link to the archive broadcast of the hearing: Senate Video Archive Witness List. Testimony about SJR 8 around the 1:29:40 mark.)

Damages

SB 735 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: HB 969)

· Summary: The original version of SB 735, filed by Sen. Troy Fraser (R - Horseshoe Bay), sought to amend section 41.011 of the CPRC by eliminating “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. However, the committee substitute approved by the State Affairs committee did two different things: (1) it defined “net worth” to mean “the total assets of a person minus the total liabilities of the person on a date determined appropriate by the trial court;” and (2) it added section 41.0115 to the CPRC and would provide as follows:

“Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for exemplary damages. Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery. (b) If a trial court authorizes discovery under Subsection (a), the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence. (c) When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by Subsection (a).”

On the House floor, SB 735 was further amended to include the following language: “If a party requests net worth discovery under this section, the court shall presume that the requesting party has had adequate time for the discovery of facts relating to exemplary damages for purposes of allowing the party from whom net worth discovery is sought to move for summary judgment on the requesting party’s claim for exemplary damages under Rule 166a(i), Texas Rules of Civil Procedure.”

The companion to the original bill, HB 735, was filed by Rep. Ken King (R - Hemphill).

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: By a 20-11 vote, the full Senate passed SB 735 on April 28, 2015. In the House, the bill was referred to Judiciary & Civil Jurisprudence on May 4th and then was unanimously voted out of committee, without amendment, by a 5-4 vote on May 13th. By a 93-44 vote, the full House passed an amended version of SB 735 on May 22, 2015. (Senate Committee History: By a 7-2 vote, State Affairs voted SB 735 out of committee on April 22, 2015. The committee conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from TLR, the Texas Public Policy Foundation, and other business organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Video Archive. Testimony about SB 735 begins around the 2:37:40 mark.)

· Bill Analysis for HB 969: House Research Organization

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: The Judiciary & Civil Jurisprudence committee conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and other business organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 969 begins around the 3:30:35 mark. On April 23rd, by a 5-4 vote, Judiciary & Civil Jurisprudence voted a committee substitute for HB 969 out of committee.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill, HB 1766, was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On April 22, 2015, the full Senate unanimously passed SB 627. The full House unanimously passed SB 627 on May 15th. The bill has been sent to Governor Abbott for consideration. (Committee History: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 627 begins around the 1:35:55 mark. On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel. After passage in the Senate, the bill was sent to the House and referred to Judiciary & Civil Jurisprudence, where it was unanimously voted out of committee without amendments on May 12th.)

· Bill Analysis for HB 1766: House Research Organization

· Fiscal Note for HB 1766: Legislative Budget Board

· Status of HB 1766: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1766 out of committee on April 23, 2015. The committee substitute made the bill identical to the version adopted by the Senate. (Committee History: The committee conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 1766: Witness List. TTLA, TLR, and the Texas Association of Broadcasters were among those who either testified or registered as being for the bill. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1766 begins around the 2:45 mark.)

Elections

HB 3880 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 3880, filed by Rep. Craig Goldman (R - Fort Worth), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 2754) was filed by Rep. Giovanni Capriglione (R – Southlake). A public hearing was held in front of Elections at the same time as HB 3880. The committee voted HB 2754 out of committee on April 16, 2015 without amendment. It was passed by the full House (135-4) on May 8th. Here is the status and analysis for the bill: Status of HB 2754 Bill Analysis.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 3880 out of committee (by a 6-0 vote, with one absent) without amendments. It was passed by the full House (135-4) on May 8th and has been sent to the Senate. (House Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3880 begins around the 3:14:00 mark.)

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 12, 2015, HB 3364 was unanimously passed by the full House. On May 14th, the bill was referred to State Affairs in the Senate and a public hearing was conducted on May 22, 2015. No one testified on, for, or against the bill; however, a representative from the Texas Association of Realtors(TAR) registered as being in support of the bill. By a 6-0 vote (3 members absent), State Affairs subsequently voted the bill out of committee without amendments. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive Witness List. Testimony about HB 3364 begins around the 32:40 mark. (House Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015 and unanimously voted the bill out of committee, without amendment, on April 29th. No witnesses testified on HB 3364; however, a few witnesses registered as being for the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3364 begins around the 3:48:15 mark.)

Family Law

SB 531 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: HB 562)

· Summary: SB 531, filed by Sen. Donna Campbell (R - New Braunfels), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would be “contrary to the public policy of [Texas].” Under the bill, the application of a law would be contrary to public policy if it would: (1) violate a fundamental right guaranteed by the United States Constitution; (2) violate a fundamental right guaranteed by the Texas constitution; (3) violate good morals or natural justice; or (4) be prejudicial to the general interests of the citizens of Texas. The companion bill to the original version of SB 531 (HB 562) was filed by Rep. Jeff Leach (R - Plano).

· Bill Analysis for SB 531: Senate Research Center

· Fiscal Note for SB 531: Legislative Budget Board

· Bill Status for SB 531: State Affairs voted SB 531 out of committee on May 18, 2015 and the full Senate subsequent passed the bill on May 22, 2015. In the House, Judiciary & Civil Jurisprudence voted SB 531 out of committee on May 23rd. The bill has been sent to Calendars for consideration. (Senate Committee History: State Affairs conducted a hearing on the bill on May 4, 2015. Numerous individuals and groups either testified or registered a position on SB 531. Here is the witness list and a link to the archived broadcast of the hearing: Senate Video Archive Witness List. Testimony about SB 531 begins around the 2:14:10 mark.)

· Bill Analysis for HB 562: House Research Organization

· Fiscal Note for HB 562: Legislative Budget Board

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562 (as amended) out of committee by a 7-2 vote. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

Government Settlement Agreements

HB 1630 - Limitations on Settlement Agreements with Governmental Units

· Summary: HB 1630, filed by Rep. Ramon Romero, Jr. (D - Fort Worth), would prohibit a state or local governmental unit from entering 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; and (2) a condition of the settlement requires the 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. HB 1630 would also:

o Prohibit a governmental unit from disclosing the personal information of a party seeking affirmative relief unless the party agrees to the disclosure.

o Provide that a provision in a settlement agreement that is in violation of the non-disclosure prohibition is void and unenforceable.

o Provide that the bill does not affect information that is privileged or confidential under other law.

o Provide that evidence of furnishing (or offering or promising to furnish) or accepting (or offering or promising to accept) a valuable consideration in compromising or attempting to compromise a disputed claim against a governmental unit is not admissible to prove liability for or the invalidity of the claim or its amount.

o Provide that evidence of conduct or statements made in settlement negotiations is likewise not admissible; that such prohibitions do not require the exclusion of any evidence otherwise discoverable merely because it is presented during settlement negotiations, or when the evidence is offered for another purpose, such as proving bias or prejudice or interest of a witness or a party, negating a contention of undue delay, or proving an effort to obstruct a criminal investigation or prosecution.

o Provide that the changes in the law made by HB 1630 would apply to the settlement of a claim or action with respect to the cause of action upon which the claim or action is based accrues on or after the effective date of the bill (i.e., September 1, 2015).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: By a vote of 117-26, the full House passed HB 1630 on May 13, 2015 and forwarded the bill to the Senate. On May 22nd, State Affairs took public testimony on the bill. A representative from the Texas Conference of Urban Counties was the only individual to testify and take a position on the bill (TCUC was opposed). Others registering a position on the bill included the Texas Press Association, the Freedom of Information Foundation of Texas, and a member of the Tarrant County Criminal District Attorney’s Office (all in favor of the bill) and a representative from the Tarrant County Commissioners Court (against the bill). For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive Witness List. Testimony about HB 1630 begins around the 54:10 mark. State Affairs subsequently voted the bill out of committee, without amendment, by an 8-1 vote. (House Committee History: The Judiciary & Civil Jurisprudence committee conducted a public hearing on April 14, 2015. Several witnesses testified/registered either for, on or against HB 1630. A representative from the Texas Conference of Urban Counties was the only individual to testify, and indicated that TCUC was opposed to the bill. Others registering a position on the bill were the Texas Press Association and Texas Association of Broadcasters (in favor of the bill) and representatives from the Texas Municipal League, Harris County, Texas Association of Counties, and the Tarrant and Bexar County Commissioners Courts). Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 1630 begins around the 2:16:10 mark. On April 16, 2015, the Judiciary & Civil Jurisprudence unanimously voted HB 1630 out of committee without amendments.)

Health Care Liability

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir. [Note: The committee substitute for HB 1403 that was adopted by the Judiciary & Civil Jurisprudence Committee would also require the expert report required under 74.351(a) to “address at least one theory of direct liability asserted against each physician or health care provider against whom a theory of direct liability is asserted.” However, the report requirement was subsequently removed from the bill via a floor amendment.]

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 13, 2015, the full House passed HB 1403 by a 141-1 vote. On May 14th, the bill was referred to State Affairs in the Senate. A public hearing was conducted on May 22, 2015. Only one witness testified at the hearing-- a representative from TLR testified in support of the bill. Representatives of TTLA, Texas Association of Business, and Texas Alliance for Patient Access registered (but did not testify) in support of the bill. On May 22nd, by a 7-0 vote (2 members absent), the bill was voted out of committee without amendment. The full Senate subsequently passed the bill on May 24th. For those who are interested in watching the Senate State Affairs committee hearing, here is a link to the archived broadcast of the hearing and the list of witnesses who registered a position on the bill: Senate Video Archive Witness List. Testimony about HB 1403 begins around the 56:30 mark. (House Committee History: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1403 out of committee on April 23, 2015. The committee conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified in support of HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 1403 begins around the 11:10:45 mark.)

Insurance Claims

SB 1628 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: HB 3646)

· Summary: SB 1628, was filed by Sen. Larry Taylor (R - Friendswood), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal or abatement.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, HB 3646, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: On April 30th, the full Senate passed SB 1628 by a 21-10 vote. It was referred to the Insurance (House) on May 4th, which subsequently adopted a committee substitute that was voted out of committee on May 15th. (Senate Committee History: Business & Commerce voted a committee substitute for SB 1628 out of committee on April 20, 2015. The committee conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1628 begins around the 6:20 mark.)

· Fiscal Note for HB 3646: Legislative Budget Board

· Status of HB 3646: Insurance conducted a public hearing on April 22, 2015. There were numerous individuals and groups registered to testify for HB 3646, but the witness list has yet to be posted. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3646 begins around the 3:27:55 mark. A committee substitute was proposed, but has yet to be posted. The bill remains pending.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget was approved by the full Senate on April 14th. A conference committee was appointed to reconcile the differences between the two budgets. The conference committee has agreed upon a compromise version of the bill.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Center

· Status of SB 455: On May 4th, the full Senate, by a 21-10 vote, passed SB 455 without amendment. It was referred to Judiciary & Civil Jurisprudence (House) on May 5th, which subsequently voted SB 455 out of committee without amendment on May 12th. The full House passed the bill (without amendment) on May 19th. (Senate Committee History: On April 28th, State Affairs unanimously voted SB 455 out of committee and the full Senate, by a 21-10 vote, passed the bill without amendment. The committee had conducted a public hearing on April 20, 2015. Several witnesses either testified or registered a position on the bill. The only witness who testified was a TTLA representative, who spoke in favor of the bill. TLR registered as being for the bill, while a representative of the NAACP and a Mexican American Legal Defense and Educational Fund representative registered as being against SB 455. All of the witnesses who either testified or registered a position on SB 455 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 455 begins around the 22:55 mark.)

· Bill Analysis for HB 1091: House Research Organization

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark.)

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis for SB 1116: Senate Research Center

· Fiscal Note for SB 1116: Legislative Budget Board

· Status of SB 1116: On April 30th, the full Senate unanimously passed SB 1116. On May 4th, the bill was referred to Judiciary & Civil Jurisprudence in the House, who promptly voted it out of committee (unanimously and without amendment) on May 7th. The full House unanimously passed SB 1116 on May 15th. (Senate Committee History: State Affairs unanimously voted a committee substitute for SB 1116 out of committee on April 22, 2015. The committee had conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Video Archive. Testimony about SB 1116 begins around the 55:30 mark.)

· Bill Analysis for HB 2822: House Research Organization

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence unanimously voted HB 2822 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 2822 begins around the 11:26:10 mark.)

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) was sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On April 15th, the full Senate passed SB 824. The bill was sent to the House, referred to Judiciary & Civil Jurisprudence on April 27th, and was considered in a formal meeting of the committee on May 7th. Judiciary & Civil Jurisprudence voted SB 824 out of committee, without amendment, by an 8-1 vote on May 13th. (Senate Committee History: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

Patent Infringement Claims

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 21, 2015, the full Senate unanimously passed SB 1457. On May 22nd, the full House passed the bill (without amendment) by a 138-2 vote. Judiciary & Civil Jurisprudence had considered the bill in public hearing on May 19th and unanimously (8-0) voted the bill out of committee on May 20th. At the public hearing, only two witnesses testified on SB 1457—a TTLA representative who testified in support of the bill and a representative from the Attorney General’s Office who provided resource testimony. Numerous individuals registered their support for the bill without providing testimony. No one opposed it. For those who are interested, here is a link to the House Broadcast Archive and the Witness List. Testimony about SB 1457 begins around the 58:15 mark. (Senate Committee History: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Broadcast Archive. Testimony about SB 1457 begins around the 39:10:00 mark. On April 15, 2015, the committee unanimously voted the committee substitute out of committee. The substitute deleted the criminal penalties for barratry.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. [A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston). The bill was referred to Judiciary & Civil Jurisprudence on March 13, 2015.]

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. On May 22nd, the full House passed the bill (without amendment) by a 138-2 vote. (House Committee History: Judiciary & Civil Jurisprudence took public testimony on SB 512 on May 19th and unanimously (8-0) voted the bill out of committee on May 20th. Only three individuals testified on SB 512—all were in favor of the bill. Numerous individuals registered their support for the bill without providing testimony. No one opposed it. For those who are interested, here is a link to the House Broadcast Archive and the Witness List. Testimony about SB 512 begins around the 2:39 mark.)(Senate Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Broadcast Archive. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

Trial Court Procedure

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1692: House Research Organization

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: On May 11, 2015, the full House passed HB 1692 by a 132-5 vote. On May 22nd, the full Senate passed 1692 (without amendment) by a 27-4 vote. (Senate Committee History: The bill was forwarded to the Senate and referred to State Affairs on May 12th. The committee took public testimony on May 18th. There were numerous witnesses that either testified or registered a position on, for, or against the bill. Organizations such as the Texas NAACP, the ACLU, and Texas Justice Center opposed the bill, while business, trade organizations, and interest groups such Shell Oil, Conoco Phillips, Ford Motor Company, Texas Civil Justice League, and Texans for Lawsuit Reform supported the bill. For those interested in watching the hearing and reviewing the complete list of witnesses, here is the link to the video and the : Senate Video Archive and Witness List. Testimony about HB 1692 begins around the 9:40 mark.)(House Committee History: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

BILLS LIKELY TO FAIL

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would be a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Fiscal Note for HB 2045: Legislative Budget Board

· Status of HB 2045: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 2045 begins around the 49:20 mark. The bill was left pending.

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 2512 begins around the 2:50:00 mark. The bill remains pending.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Construction industry representatives testified in support of HB 1784, while TTLA and representatives of the cities of Fort Worth and Austin opposed the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1784 begins around the 1:53:20 mark. A committee substitute was proposed, but has yet to be posted. The bill was left pending.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Broadcast Archive. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill remains pending.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Analysis for HB 670: House Research Organization

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: On May 7, 2015, Judiciary & Civil Jurisprudence voted HB 670 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel Actions

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

Family Law

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

SB 1600 - Limit on Award of Attorney's Fees in Certain Proceedings against the State or State Agency (Companion: HB 3641)

· Summary: SB 1600, filed by Sen. Lois Kolkhorst (R - Brenham), would amend the Texas Uniform Declaratory Judgments Act (DJA) and limit the amount of attorney’s fees awarded in cases seeking declaratory relief against the state or a state agency to an amount “not to exceed to exceed $250,000.” The companion bill, HB 3641, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1600: Senate Research Center

· Fiscal Note for SB1600: Legislative Budget Board

· Status of SB 1600: On April 29th, by a 7-1 vote, State Affairs voted SB 1600 out of committee. The committee had conducted a public hearing on April 20, 2015. Several witnesses registered a position on the bill. TTLA and the Texas NAACP were among those organizations registering their opposition to the bill while TLR and the Texas Conservative Coalition registered as being in favor of the bill. A representative from the Attorney General’s Office was the only testifying witness. All of the witnesses who either testified or registered a position on SB 1600 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1600 begins around the 32:20 mark.

· Fiscal Note for HB 3641: Legislative Budget Board

· Status of HB 3641: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Only a representative from the Attorney General’s Office testified on HB 3641. A representative of TLR registered as being for the bill while TTLA registered as being opposed to the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3641 begins around the 3:55:20 mark. The bill was left pending.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which statutory county court, district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 2088 out of committee, but it failed to pass in the House on May 14th. The committee had conducted a public hearing on the bill on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 2088: Witness List. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2088 begins around the 1:35:45 mark.

Judiciary/Court Administration

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Bill Analysis for HB 1427: House Research Organization

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 28th, State Affairs voted SB 1970 out of committee by an 8-1 vote. The committee had conducted a public hearing on April 23, 2015. A few witnesses appeared to testify or register a position on the bill. The only witness who testified for the bill was a single probate court judge. A representative of the Family Law Foundation registered as being opposed to SB 1970. All of the witnesses who either testified or registered a position on SB 1970 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Video Archive. Testimony about SB 1970 begins around the 34:45 mark.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author had originally intended to amend the bill once it reaches the House floor; however, the committee held another public meeting on April 21st and adopted the amended bill. Under the amendments, the bill would (1) exempt certain types of cases from the chancery court’s subject matter jurisdiction (e.g., cases brought under the Estates Code, Family Code, the DTPA, and Title 9 (Trusts) of the Property Code) and (2) increase the minimum amount in controversy to $10 million dollars for certain types of chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: After the initial public hearing, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section was given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 7th, Judiciary & Civil Jurisprudence voted HB 2730 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on April 21, 2015. There were several individuals and groups registered to testify for, on, or against HB 2730: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2730 begins around the 1:04:00 mark.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Former Chief Justice Tom Phillips was one of the individuals who testified in support of HB 3430. A representative for the Texas Criminal Defense Lawyers Association testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3430 begins around the 2:16:30 mark. The bill was left pending.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HJR 90 begins around the 2:28:25 mark. The resolution was left pending.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3454 begins around the 5:15 mark. The bill was left pending.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Video Archive. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill remains pending.

· Status of HB 3176: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Several witnesses testified and/or registered as being either for, on, or against the bill. Here is a witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HB 3176 begins around the 5:09:40 mark. A committee substitute was proposed, but it has yet to be posted. It is my understanding that the committee substitute would give the AG power to investigate demands made in bad faith. The bill was left pending.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Status of HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted HB 241 out of committee, without amendment, on April 23, 2015. (Committee History: The committee conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark.)

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 3008 out of committee without amendment. The committee had conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3008 begins around the 3:19:30 mark.

 
Legislative Update
May 16, 2015 

As you might expect, there was a flurry activity in the House this past week as legislators attempted to get pending bills out of committee or put to a vote on the House floor (or both) before critical deadlines passed. Last Thursday (May 14th) was the last day for bills that originated in the House to be considered on the floor of the House in order to have a realistic chance of surviving the regular session. Many of the monitored House bills did not make it out of committee or receive a vote by May 14th, so they will die unless the text of the bills can be added to another bill via amendment or a companion bill in the Senate is passed. A few of the notable bills that did not reach the House floor for a vote were HB 241 (Service of Citation through Social Media), HB 562 (Application of Foreign Laws and Foreign Forum Selection in Family Law Cases), and HB 1603 (Creation of Chancery Courts).

On the other hand, several monitored bills continued to move through the legislative process. For example, SJR 8 (Constitutional Amendment Authorizing the Legislature to Require a Court to Provide Notice to the Attorney General of Constitutional Challenges to State Statutes) was passed by the Senate. SB 627 (Certain Privileged Publications are Not Grounds for Libel Actions), SB 1116 (Relating to Notices or Documents sent by Mail/Email by a Court, Court Clerk, or Judge), HB 3364 (Appeals of Eviction Suit Judgments), and HB 1403 (Defining Health Care Liability Claims for Purposes of Certain Claims) were passed by the House. House and Senate committees also voted two (2) other monitored bills out of committee. And finally, on May 15th, SB 534 (Oath of Persons Admitted to Practice Law in Texas) was signed into law by Governor Abbott.

As in past updates, the bill number links above and in the “The Week in Review” and “The Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

The Week in Review

The following seven (7) monitored bills/resolutions were voted out of committee or passed by the Senate/House:

SJR 8 – Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes (passed by Senate)

SB 627 – Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (voted out of House committee and subsequently passed by the full House)

SB 735 – Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (voted out of House committee)

SB 824 – Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (voted out of House committee)

SB 1116 – Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (passed by House),

HB 3364 – Appeals of Eviction Suit Judgments (passed by House)

HB 1403 – Defining Health Care Liability Claim for Purposes of Certain Claims (passed by House)

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

The following three (3) monitored bills/resolutions are currently scheduled for public hearing this week:

SB 512 – Promulgation of Forms for Use in Probate Matters

SB 1457 – Bad Faith Patent Infringement Claims

HB 1692 – Doctrine of Foreign Non Conveniens

Of course, others bills not currently scheduled for hearing could be heard during the upcoming week. However, by next Saturday (May 23rd), House committees must have heard and voted all Senate bills out of committee or they will die.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections

Evictions

Family Law

Governmental Immunity

Health Care Liability

Insurance

Judicial Selection

Judiciary/Court Administration

Lawsuit Financing/Lending

Patent Infringement Claims++

Probate Court Proceedings++

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure++

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. On May 4th, the bill was referred to State Affairs in the Senate. (House Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would be a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis for SB 534: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On May 15, 2015, Governor Abbott signed SB 534 into law. (Senate/Senate Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee.)(House/House Committee History: On April 30th, after having been considered by and voted out of Judiciary & Civil Jurisprudence on April 28th, the full House passed SB 534 without amendment, thereby making it eligible for the Governor to sign into law. The Senate had unanimously passed SB 534 on March 24th).)

· Bill Analysis for HB 1644: House Research Organization

· Fiscal Note for HB 1644: Legislative Budget Board

· Status of HB 1644: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1644 out of committee without amendment. (Committee History: The committee conducted a public hearing on the bill on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark.)

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4th) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: On April 23, 2015, the House unanimously passed HB 2089. The bill was received by the Senate and referred to Senate Finance on April 28th. (Committee History: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The committee approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015.)

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Fiscal Note for HB 2045: Legislative Budget Board

· Status of HB 2045: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 2045 begins around the 49:20 mark. The bill was left pending.

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2512 begins around the 2:50:00 mark. The bill remains pending,

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 12, 2015, the full Senate unanimously voted to pass SJR 8. The bill was subsequently sent to the House and was referred to Judiciary & Civil Jurisprudence on May 14th. (Committee History: State Affairs conducted a public hearing on May 7, 2015 and unanimously voted the resolution out of committee on May 8th. Here is the witness list and a link to the archive broadcast of the hearing: Senate Broadcast Archive Witness List. Testimony about SJR 8 around the 1:29:40 mark.)

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Construction industry representatives testified in support of HB 1784, while TTLA and representatives of the cities of Fort Worth and Austin opposed the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1784 begins around the 1:53:20 mark. A committee substitute was proposed, but has yet to be posted. The bill was left pending.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill remains pending.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: The original version of HB 969, filed by Rep. Ken King (R - Hemphill), sought to amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. However, the committee substitute approved by the Judiciary & Civil Jurisprudence committee does two different things: (1) it would define “net worth” to mean “the total assets of a person minus the total liabilities of the person on a date determined appropriate by the trial court;” and (2) it would add section 41.0115 to the CPRC and would provider as follows:

“Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for exemplary damages. Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery. (b) If a trial court authorizes discovery under Subsection (a), the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence. (c) When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by Subsection (a).”

The companion to the original bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Analysis for HB 969: House Research Organization

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: By a 5-4 vote, Judiciary & Civil Jurisprudence voted the committee substitute for HB 969 out of committee on April 23, 2015. (Committee History: conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 969 begins around the 3:30:35 mark.)

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: By a 20-11 vote, the full Senate passed SB 735 on April 28, 2015. In the House, the bill was referred to Judiciary & Civil Jurisprudence on May 4th and then unanimously voted out of committee, without amendments, by a 5-4 vote on May 13th. (Senate Committee History: By a 7-2 vote, State Affairs voted SB 735 out of committee on April 22, 2015. The committee conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 735 begins around the 2:37:40 mark.)

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Analysis for HB 670: House Research Organization

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: On May 7, 2015, Judiciary & Civil Jurisprudence voted HB 670 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On April 22, 2015, the full Senate unanimously passed SB 627. The bill was subsequently sent to the House and referred to Judiciary & Civil Jurisprudence. In a formal meeting (i.e., not a public hearing), the committee unanimously voted the bill out of committee without amendments. The full House unanimously passed SB 627 on May 15th. (Senate Committee History: The committee conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel.)

· Bill Analysis for HB 1766: House Research Organization

· Fiscal Note for HB 1766: Legislative Budget Board

· Status of HB 1766: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1766 out of committee on April 23, 2015. The committee substitute makes the bill identical to the version adopted by the Senate. (Committee History: The committee conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 1766: Witness List. TTLA, TLR, and the Texas Association of Broadcasters were among those who either testified or registered as being for the bill. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1766 begins around the 2:45 mark.)

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880 Bill Analysis) was filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. The committee voted HB 3880 out of committee on April 16, 2015 without amendment. It was passed by the full House (135-4) on May 8th: Status of HB 3880.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 2754 out of committee (by a 6-0 vote, with one absent) without amendments. (Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark.)

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 12, 2015, HB 3664 was unanimously passed by the full House. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015 and unanimously voted it out of committee, without amendment, on April 29th. No witnesses testified on HB 3364; however, a few witnesses registered as being for the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3364 begins around the 3:48:15 mark.)

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: The committee substitute for the original version of HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would be “contrary to the public policy of [Texas].” Under the bill, the application of a law would be contrary to public policy if it would: (1) violate a fundamental right guaranteed by the United States Constitution; (2) violate a fundamental right guaranteed by the Texas constitution; (3) violate good morals or natural justice; or (4) be prejudicial to the general interests of the citizens of Texas. The companion bill to the original version of HB 562 (SB 531) was filed by Sen. Donna Campbell (R - New Braunfels). SB 531 is similar to HB 899, which is summarized below.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562, as amended, out of committee by a 7-2 vote. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

· Bill Analysis for SB 531: Senate Research Center

· Fiscal Note for SB 531: Legislative Budget Board

· Bill Status for SB 531: State Affairs conducted a hearing on the bill on May 4, 2015. Numerous individuals and groups either testified or registered a position on SB 531. Here is the witness list and a link to the archived broadcast of the hearing: Senate Broadcast Archive Witness List. Testimony about SB 531 begins around the 2:14:10 mark. The bill was left pending.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

SB 1600 - Limit on Award of Attorney's Fees in Certain Proceedings against the State or State Agency (Companion: HB 3641)

· Summary: SB 1600, filed by Sen. Lois Kolkhorst (R - Brenham), would amend the Texas Uniform Declaratory Judgments Act (DJA) and limit the amount of attorney’s fees awarded in cases seeking declaratory relief against the state or a state agency to an amount “not to exceed to exceed $250,000.” The companion bill, HB 3641, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1600: Senate Research Center

· Fiscal Note for SB1600: Legislative Budget Board

· Status of SB 1600: On April 29th, by a 7-1 vote, State Affairs voted SB 1600 out of committee. The committee had conducted a public hearing on April 20, 2015. Several witnesses registered a position on the bill. TTLA and the Texas NAACP were among those organizations registering their opposition to the bill while TLR and the Texas Conservative Coalition registered as being in favor of the bill. A representative from the Attorney General’s Office was the only testifying witness. All of the witnesses who either testified or registered a position on SB 1600 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1600 begins around the 32:20 mark.

· Fiscal Note for HB 3641: Legislative Budget Board

· Status of HB 3641: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Only a representative from the Attorney General’s Office testified on HB 3641. A representative of TLR registered as being for the bill while TTLA registered as being opposed to the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3641 begins around the 3:55:20 mark. The bill was left pending.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir. [Note: The committee substitute for HB 1403 that was adopted by the Judiciary & Civil Jurisprudence Committee would also require the expert report required under 74.351(a) to “address at least one theory of direct liability asserted against each physician or health care provider against whom a theory of direct liability is asserted.” However, the report requirement was subsequently removed from the bill via a floor amendment.]

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 13, 2015, the full House passed HB 1403 by a 141-1 vote. (Committee History: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1403 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified for HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 1403 begins around the 11:10:45 mark.)

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Fiscal Note for HB 3646: Legislative Budget Board

· Status of HB 3646: Insurance conducted a public hearing on April 22, 2015. There were numerous individuals and groups registered to testify for HB 3646, but the witness list has yet to be posted. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3646 begins around the 3:27:55 mark. A committee substitute was proposed, but has yet to be posted. The bill remains pending.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: On April 30th, the full Senate passed SB 1628 by a 21-10 vote. It was referred to Insurance (House) on May 4th. (Senate Committee History: Business & Commerce voted a committee substitute for SB 1628 out of committee on April 20, 2015. The committee conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 6:20 mark.)

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which statutory county court, district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 2088 out of committee, but it failed to pass in the House on May 14th. The committee had conducted a public hearing on the bill on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 2088: Witness List. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2088 begins around the 1:35:45 mark.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget was approved by the full Senate on April 14th. A conference committee has been appointed to reconcile the differences between the two budgets. Deliberations are ongoing.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Center

· Status of SB 455: On May 4th, the full Senate, by a 21-10 vote, passed SB 455 without amendment. It was referred to Judiciary & Civil Jurisprudence (House) on May 5th. (Senate Committee History: On April 28th, State Affairs unanimously voted SB 455 out of committee and the full Senate, by a 21-10 vote, passed the bill without amendment. The committee had conducted a public hearing on April 20, 2015. Several witnesses either testified or registered a position on the bill. The only witness who testified was a TTLA representative, who spoke in favor of the bill. TLR registered as being for the bill, while a representative of the NAACP and a Mexican American Legal Defense and Educational Fund representative registered as being against SB 455. All of the witnesses who either testified or registered a position on SB 455 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 455 begins around the 22:55 mark.)

· Bill Analysis for HB 1091: House Research Organization

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark.)

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Bill Analysis for HB 1427: House Research Organization

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis for SB 1116: Senate Research Center

· Fiscal Note for SB 1116: Legislative Budget Board

· Status of SB 1116: On April 30th, the full Senate unanimously passed SB 1116. On May 4th, the bill was referred to Judiciary & Civil Jurisprudence in the House, who promptly voted it out of committee (unanimously and without amendment) on May 7th. The full House unanimously passed SB 1116 on May 15th. (Senate Committee History: State Affairs unanimously voted a committee substitute for SB 1116 out of committee on April 22, 2015. The committee had conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 1116 begins around the 55:30 mark.)

· Bill Analysis for HB 2822: House Research Organization

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence unanimously voted HB 2822 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2822 begins around the 11:26:10 mark.)

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 28th, State Affairs voted SB 1970 out of committee by an 8-1 vote. The committee had conducted a public hearing on April 23, 2015. A few witnesses appeared to testify or register a position on the bill. The only witness who testified for the bill was a single probate court judge. A representative of the Family Law Foundation registered as being opposed to SB 1970. All of the witnesses who either testified or registered a position on SB 1970 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1970 begins around the 34:45 mark.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On April 15th, the full Senate passed SB 824. The bill was sent to the House and referred to Judiciary & Civil Jurisprudence on April 27th and was considered in a formal meeting of the committee on May 7th. It was subsequently voted out of committee, without amendment, by an 8-1 vote. (Senate Committee History: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author had originally intended to amend the bill once it reaches the House floor; however, the committee held another public meeting on April 21st and adopted the amended bill. Under the amendments, the bill would (1) exempt certain types of cases from the chancery court’s subject matter jurisdiction (e.g., cases brought under the Estates Code, Family Code, the DTPA, and Title 9 (Trusts) of the Property Code) and (2) increase the minimum amount in controversy to $10 million dollars for certain types of chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: After the initial public hearing, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section was given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 7th, Judiciary & Civil Jurisprudence voted HB 2730 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on April 21, 2015. There were several individuals and groups registered to testify for, on, or against HB 2730: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2730 begins around the 1:04:00 mark.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Former Chief Justice Tom Phillips was one of the individuals who testified in support of HB 3430. A representative for the Texas Criminal Defense Lawyers Association testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3430 begins around the 2:16:30 mark. The bill was left pending.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HJR 90 begins around the 2:28:25 mark. The resolution was left pending.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3454 begins around the 5:15 mark. The bill was left pending.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill remains pending.

· Status of HB 3176: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Several witnesses testified and/or registered as being either for, on, or against the bill. Here is a witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HB 3176 begins around the 5:09:40 mark. A committee substitute was proposed, but it has yet to be posted. It is my understanding that the committee substitute would give the AG power to investigate demands made in bad faith. The bill was left pending.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 21, 2015, the full Senate unanimously passed SB 1457. It was referred to Judiciary & Civil Jurisprudence on May 5th and a hearing has been scheduled for May 19th at 2:00 p.m. or upon final recess/adjournment of the House. Here is the meeting notice: Notice of Public Hearing House Live Broadcast. (Senate Committee History: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1457 begins around the 39:10:00 mark. On April 15, 2015, the committee unanimously voted the committee substitute out of committee. The substitute deleted the criminal penalties for barratry.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 was sent to the House and referred to Judiciary & Civil Jurisprudence, which had scheduled the bill for public hearing on May 12th but was cancelled at the last minute. The hearing has been rescheduled for May 19th. Here is the meeting notice: Notice of Public Hearing House Live Broadcast. (Senate Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcast. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Status of HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted HB 241 out of committee, without amendment, on April 23, 2015. (Committee History: The committee conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark.)

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1692: House Research Organization

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: On May 11, 2015, the full House passed HB 1692 by a 132-5 vote. The bill was forwarded to the Senate and referred to State Affairs on May 12th. The committee has scheduled a public hearing on the bill at 9:00 a.m. on Monday, May 18th. Here is the notice of hearing: Notice of Hearing. For those interested in watching the proceeding, here is the link to the video: Senate Live Video. (House Committee History: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 3008 out of committee without amendment. The committee had conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3008 begins around the 3:19:30 mark.

 
Legislative Update
May 10, 2015 

There are now twenty-two (22) days left in the regular session. Tomorrow (Monday, May 11th) is the last day for House committees to report House bills and joint resolutions in order for the measures to have any realistic chance of being placed on a House calendar for purposes of receiving a vote by the full House. Of course, the text of any House bill not voted out of committee before that date could still find its way onto another bill by way of amendment or a Senate companion bill, if any, can continue to move through the process.

Last week, two of the monitored bills, HB 1692 (Doctrine of Forum Non Conveniens) and HB 3880 (Requirements for Placement on General Primary Election Ballot as a Candidate for Judicial Office), were passed by the House. Meanwhile, House and Senate committees took public testimony on four (4) monitored bills and voted three (3) others out of committee.

As in past updates, I’ve included bill number links in the “The Week in Review” and “The Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

The Week in Review

The following four (4) monitored bills received public hearings last week:

SB 531 – Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting

Parent-Child Relationship

SJR 8 – Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional

Challenge to State Statutes

HB 3176 – Patent Infringement Claims

HJR 90 – Constitutional Amendment to Abolish the Court of Criminal Appeals

The following five (5) bills were voted out of committee or passed by the Senate/House:

SB 1116 – Notices or Documents Sent by Mail or Electronic Mail by a Court, Clerk or Judge (voted out of House committee)

HB 670 – Application of Foreign Laws and Foreign Forum Selection in Texas (voted out of committee)

HB 1692 – Doctrine of Forum Non Conveniens (passed by the House)

HB 2730 – Creation of the Fifteenth Court of Appeals (voted out of committee)

HB 3880 – Requirements for Placement on General Primary Election Ballot as a Candidate for Judicial Office (passed by the House)

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

The following monitored bill/resolution is currently scheduled for public hearing this week:

SB 512 – Promulgation of Forms for Use in Probate Matters

Of course, others could be scheduled for hearing during the week.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections

Evictions

Family Law

Governmental Immunity

Health Care Liability

Insurance

Judicial Selection

Judiciary/Court Administration

Lawsuit Financing/Lending

Patent Infringement Claims

Probate Court Proceedings++

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. On May 4th, the bill was referred to State Affairs in the Senate. (House Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would be a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis for SB 534: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On April 30th, after having been considered by and voted out of Judiciary & Civil Jurisprudence on April 28th, the full House passed SB 534 without amendment, thereby making it eligible for the Governor to sign into law. The Senate had unanimously passed SB 534 on March 24th. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee).

· Bill Analysis for HB 1644: House Research Organization

· Fiscal Note for HB 1644: Legislative Budget Board

· Status of HB 1644: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1644 out of committee without amendment. (Committee History: The committee conducted a public hearing on the bill on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark.)

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4th) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: On April 23, 2015, the House unanimously passed HB 2089. The bill was received by the Senate and referred to Senate Finance on April 28th. (Committee History: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The committee approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015.)

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Fiscal Note for HB 2045: Legislative Budget Board

· Status of HB 2045: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 2045 begins around the 49:20 mark. The bill was left pending.

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2512 begins around the 2:50:00 mark. The bill remains pending,

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: State Affairs conducted a public hearing on May 7, 2015. Here is the witness list and a link to the archive broadcast of the hearing: Senate Broadcast Archive Witness List. Testimony about SJR 8 around the 1:29:40 mark. The resolution of was left pending.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Construction industry representatives testified in support of HB 1784, while TTLA and representatives of the cities of Fort Worth and Austin opposed the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1784 begins around the 1:53:20 mark. A committee substitute was proposed, but has yet to be posted. The bill was left pending.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill remains pending.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: The original version of HB 969, filed by Rep. Ken King (R - Hemphill), sought to amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. However, the committee substitute approved by the Judiciary & Civil Jurisprudence committee does two different things: (1) it would define “net worth” to mean “the total assets of a person minus the total liabilities of the person on a date determined appropriate by the trial court;” and (2) it would add section 41.0115 to the CPRC and would provider as follows:

“Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for exemplary damages. Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery. (b) If a trial court authorizes discovery under Subsection (a), the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence. (c) When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by Subsection (a).”

The companion to the original bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Analysis for HB 969: House Research Organization

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: By a 5-4 vote, Judiciary & Civil Jurisprudence voted the committee substitute for HB 969 out of committee on April 23, 2015. (Committee History: conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 969 begins around the 3:30:35 mark.)

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: By a 20-11 vote, the full Senate passed SB 735 on April 28, 2015. In the House, the bill was Judiciary & Civil Jurisprudence on May 4th. On May 7th, SB 735 failed to receive an affirmative vote in committee. (Senate Committee History: By a 7-2 vote, State Affairs voted SB 735 out of committee on April 22, 2015. The committee conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 735 begins around the 2:37:40 mark.)

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Analysis for HB 670: House Research Organization

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: On May 7, 2015, Judiciary & Civil Jurisprudence voted HB 670 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On April 22, 2015, the full Senate unanimously passed SB 627. The bill was subsequently sent to the House and has been referred to Judiciary & Civil Jurisprudence. (Senate Committee History: The committee conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel.)

· Bill Analysis for HB 1766: House Research Organization

· Fiscal Note for HB 1766: Legislative Budget Board

· Status of HB 1766: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1766 out of committee on April 23, 2015. The committee substitute makes the bill identical to the version adopted by the Senate. (Committee History: The committee conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 1766: Witness List. TTLA, TLR, and the Texas Association of Broadcasters were among those who either testified or registered as being for the bill. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1766 begins around the 2:45 mark.)

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880 Bill Analysis) was filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. The committee voted HB 3880 out of committee on April 16, 2015 without amendment. It was passed by the full House (135-4) on May 8th.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 2754 out of committee (by a 6-0 vote, with one absent) without amendments. (Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark.)

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015 and unanimously voted it out of committee on April 29th. No witnesses testified on HB 3364; however, a few witnesses registered as being for the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3364 begins around the 3:48:15 mark. The bill was left pending.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: The committee substitute for the original version of HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would be “contrary to the public policy of [Texas].” Under the bill, the application of a law would be contrary to public policy if it would: (1) violate a fundamental right guaranteed by the United States Constitution; (2) violate a fundamental right guaranteed by the Texas constitution; (3) violate good morals or natural justice; or (4) be prejudicial to the general interests of the citizens of Texas. The companion bill to the original version of HB 562 (SB 531) was filed by Sen. Donna Campbell (R - New Braunfels). SB 531 is similar to HB 899, which is summarized below.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562, as amended, out of committee by a 7-2 vote. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

· Bill Analysis for SB 531: Senate Research Center

· Fiscal Note for SB 531: Legislative Budget Board

· Bill Status for SB 531: State Affairs conducted a hearing on the bill on May 4, 2015. Numerous individuals and groups either testified or registered a position on SB 531. Here is the witness list and a link to the archived broadcast of the hearing: Senate Broadcast Archive Witness List. Testimony about SB 531 begins around the 2:14:10 mark. The bill was left pending.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

SB 1600 - Limit on Award of Attorney's Fees in Certain Proceedings against the State or State Agency (Companion: HB 3641)

· Summary: SB 1600, filed by Sen. Lois Kolkhorst (R - Brenham), would amend the Texas Uniform Declaratory Judgments Act (DJA) and limit the amount of attorney’s fees awarded in cases seeking declaratory relief against the state or a state agency to an amount “not to exceed to exceed $250,000.” The companion bill, HB 3641, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1600: Senate Research Center

· Fiscal Note for SB1600: Legislative Budget Board

· Status of SB 1600: On April 29th, by a 7-1 vote, State Affairs voted SB 1600 out of committee. The committee had conducted a public hearing on April 20, 2015. Several witnesses registered a position on the bill. TTLA and the Texas NAACP were among those organizations registering their opposition to the bill while TLR and the Texas Conservative Coalition registered as being in favor of the bill. A representative from the Attorney General’s Office was the only testifying witness. All of the witnesses who either testified or registered a position on SB 1600 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1600 begins around the 32:20 mark.

· Fiscal Note for HB 3641: Legislative Budget Board

· Status of HB 3641: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Only a representative from the Attorney General’s Office testified on HB 3641. A representative of TLR registered as being for the bill while TTLA registered as being opposed to the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3641 begins around the 3:55:20 mark. The bill was left pending.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir. The committee substitute for HB 1403 that was adopted by the Judiciary & Civil Jurisprudence Committee would also require the expert report required under 74.351(a) to “address at least one theory of direct liability asserted against each physician or health care provider against whom a theory of direct liability is asserted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1403 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified for HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 1403 begins around the 11:10:45 mark.)

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Fiscal Note for HB 3646: Legislative Budget Board

· Status of HB 3646: Insurance conducted a public hearing on April 22, 2015. There were numerous individuals and groups registered to testify for HB 3646, but the witness list has yet to be posted. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3646 begins around the 3:27:55 mark. A committee substitute was proposed, but has yet to be posted. The bill remains pending.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: On April 30th, the full Senate passed SB 1628 by a 21-10 vote. It was referred to Insurance (House) on May 4th. (Senate Committee History: Business & Commerce voted a committee substitute for SB 1628 out of committee on April 20, 2015. The committee conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 6:20 mark.)

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which statutory county court, district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 2088 out of committee. The committee had conducted a public hearing on the bill on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 2088: Witness List. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2088 begins around the 1:35:45 mark.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget was approved by the full Senate on April 14th. A conference committee has been appointed to reconcile the differences between the two budgets.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Center

· Status of SB 455: On May 4th, the full Senate, by a 21-10 vote, passed SB 455 without amendment. It was referred to Judiciary & Civil Jurisprudence (House) on May 5th. (Senate Committee History: On April 28th, State Affairs unanimously voted SB 455 out of committee and the full Senate, by a 21-10 vote, passed the bill without amendment. The committee had conducted a public hearing on April 20, 2015. Several witnesses either testified or registered a position on the bill. The only witness who testified was a TTLA representative, who spoke in favor of the bill. TLR registered as being for the bill, while a representative of the NAACP and a Mexican American Legal Defense and Educational Fund representative registered as being against SB 455. All of the witnesses who either testified or registered a position on SB 455 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 455 begins around the 22:55 mark.)

· Bill Analysis for HB 1091: House Research Organization

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark.)

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Bill Analysis for HB 1427: House Research Organization

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis for SB 1116: Senate Research Center

· Fiscal Note for SB 1116: Legislative Budget Board

· Status of SB 1116: On April 30th, the full Senate unanimously passed SB 1116. On May 4th, the bill was referred to Judiciary & Civil Jurisprudence in the House, who promptly voted it out of committee (unanimously and without amendment) on May 7th. (Senate Committee History: State Affairs unanimously voted a committee substitute for SB 1116 out of committee on April 22, 2015. The committee had conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 1116 begins around the 55:30 mark.)

· Bill Analysis for HB 2822: House Research Organization

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence unanimously voted HB 2822 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2822 begins around the 11:26:10 mark.)

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 28th, State Affairs voted SB 1970 out of committee by an 8-1 vote. The committee had conducted a public hearing on April 23, 2015. A few witnesses appeared to testify or register a position on the bill. The only witness who testified for the bill was a single probate court judge. A representative of the Family Law Foundation registered as being opposed to SB 1970. All of the witnesses who either testified or registered a position on SB 1970 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1970 begins around the 34:45 mark.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On April 15th, the full Senate passed SB 824. The bill was sent to the House and referred to Judiciary & Civil Jurisprudence on April 27th and was considered in a formal meeting of the committee on May 7th. It was left pending. (Senate Committee History: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author had originally intended to amend the bill once it reaches the House floor; however, the committee held another public meeting on April 21st and adopted the amended bill. Under the amendments, the bill would (1) exempt certain types of cases from the chancery court’s subject matter jurisdiction (e.g., cases brought under the Estates Code, Family Code, the DTPA, and Title 9 (Trusts) of the Property Code) and (2) increase the minimum amount in controversy to $10 million dollars for certain types of chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: After the initial public hearing, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section was given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On May 7th, Judiciary & Civil Jurisprudence voted HB 2730 out of committee, without amendment, by a 5-3 vote (1 absent). The committee conducted a public hearing on April 21, 2015. There were several individuals and groups registered to testify for, on, or against HB 2730: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2730 begins around the 1:04:00 mark.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Former Chief Justice Tom Phillips was one of the individuals who testified in support of HB 3430. A representative for the Texas Criminal Defense Lawyers Association testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3430 begins around the 2:16:30 mark. The bill was left pending.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HJR 90 begins around the 2:28:25 mark. The resolution was left pending.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3454 begins around the 5:15 mark. The bill was left pending.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill remains pending.

· Status of HB 3176: Judiciary & Civil Jurisprudence conducted a public hearing on May 5, 2015. Several witnesses testified and/or registered as being either for, on, or against the bill. Here is a witness list and a link to the archived broadcast of the hearing: House Broadcast Archive. Witness List. Testimony about HB 3176 begins around the 5:09:40 mark. A committee substitute was proposed, but it has yet to be posted. It is my understanding that the committee substitute would give the AG power to investigate demands made in bad faith. The bill was left pending.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 21, 2015, the full Senate unanimously passed SB 1457. It was referred to Judiciary & Civil Jurisprudence on May 5th. (Senate Committee History: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1457 begins around the 39:10:00 mark. On April 15, 2015, the committee unanimously voted the committee substitute out of committee. The substitute deleted the criminal penalties for barratry.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 was sent to the House and referred to Judiciary & Civil Jurisprudence, which has scheduled the bill for public hearing on May 12th at 2:00 p.m. or upon recess/final adjournment of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast. (Senate Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcast. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Status of HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted HB 241 out of committee, without amendment, on April 23, 2015. (Committee History: The committee conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark.)

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1692: House Research Organization

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: On May 8, 2015, the full House passed HB 1692. (Committee History: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 3008 out of committee without amendment. The committee had conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3008 begins around the 3:19:30 mark.

 
Legislative Update
May 3, 2015

As the Legislature enters the last month of the regular session, legislators find themselves one week away from the first of many important end-of-session deadlines. Monday, May 11th is the last day for House committees to report House bills and joint resolutions, so we are likely to see a lot of House committee activity this week.

Last week, one of the monitored bills, SB 534 (Oath of Persons Admitted to Practice Law in Texas), was passed by the House without amendment, thereby making it the first monitored bill to pass both chambers. Meanwhile, House and Senate committees took public testimony on eight (8) monitored bills and voted six (6) others out of committee. The following four (4) bills were passed by the full Senate and will be sent to the House for consideration: SB 455 (Creation of a Special Three-Judge District Court), SB 735 (Availability and Use of Evidence in Connection with an Award of Exemplary Damages); SB 1116 (Notices or Documents Sent by Mail or Electronic Mail by a Court, Justice, Judge, or Clerk of a Judicial Clerk); and SB 1628 (Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance).

As in past updates, I’ve included bill number links in the “The Week in Review” and “The Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

The Week in Review

The following eight (8) monitored bills received public hearings last week:

SB 534 – Oath of Persons Admitted to Practice Law in Texas

HB 1784 – Construction Defect Claims

HB 2045 – Eligibility of Attorneys Licensed by Another State to Take the State Bar Exam

HB 3008 – Elimination of Wrongful Birth Cause of Action

HB 3364 – Appeals of Judgments in Eviction Suits

HB 3430 – Jurisdiction of the Supreme Court and Court of Criminal Appeals

HB 3454 – Assignment of Rights in an Individual’s Legal Claim

HB 3641 – Limit on Award of Attorney's Fees in Certain Proceedings against the State or a State Agency

The following six (6) bills were voted out of committee:

HB 1403 – Defining Health Care Liability Claim for Purposes of Certain Claims

HB 2088 – Interim Study Regarding the Method by Which Judges and Justices are Selected

HB 3008 – Elimination of Wrongful Birth Cause of Action

HB 3364 – Appeals of Judgments in Eviction Suits

SB 1600 – Limit on Award of Attorney's Fees in Certain Proceedings against the State or a State Agency

SB 1970 – Increase of Statewide Electronic Filing Fees

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

The following four (4) monitored bills/resolutions are currently scheduled for public hearing this week:

SB 531 – Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting

Parent-Child Relationship

SJR 8 – Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional

Challenge to State Statutes

HB 3176 – Patent Infringement Claims

HJR 90 – Constitutional Amendment to Abolish the Court of Criminal Appeals

Where applicable, the status and summary for each of these bills, as well as all other monitored bills, have been updated.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes++

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections

Evictions

Family Law++

Governmental Immunity

Health Care Liability

Insurance

Judicial Selection

Judiciary/Court Administration++

Lawsuit Financing/Lending

Patent Infringement Claims++

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would be a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis for SB 534: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On April 30th, after having been considered by and voted out of Judiciary & Civil Jurisprudence on April 28th, the full House passed SB 534 without amendment, thereby making it eligible for the Governor to sign the bill into law. The Senate had unanimously passed SB 534 on March 24th. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee).

· Bill Analysis for HB 1644: House Research Organization

· Fiscal Note for HB 1644: Legislative Budget Board

· Status of HB 1644: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1644 out of committee without amendment. (Committee History: The committee conducted a public hearing on the bill on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark.)

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4th) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: On April 23, 2015, the House unanimously passed HB 2089. The bill was received by the Senate and referred to Senate Finance on April 28th. (Committee History: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The committee approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015.)

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Fiscal Note for HB 2045: Legislative Budget Board

· Status of HB 2045: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 2045 begins around the 49:20 mark. The bill was left pending.

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2512 begins around the 2:50:00 mark. The bill remains pending,

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of State Affairs on May 4, 2015 at 9:00 a.m.. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcast.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Construction industry representatives testified in support of HB 1784, while TTLA and representatives of the cities of Fort Worth and Austin opposed the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1784 begins around the 1:53:20 mark. A committee substitute was proposed, but has yet to be posted. The bill was left pending.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill remains pending.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: The original version of HB 969, filed by Rep. Ken King (R - Hemphill), sought to amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. However, the committee substitute approved by the Judiciary & Civil Jurisprudence committee does two different things: (1) it would define “net worth” to mean “the total assets of a person minus the total liabilities of the person on a date determined appropriate by the trial court;” and (2) it would add section 41.0115 to the CPRC and would provider as follows:

“Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for exemplary damages. Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery. (b) If a trial court authorizes discovery under Subsection (a), the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence. (c) When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by Subsection (a).”

The companion to the original bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Analysis for HB 969: House Research Organization

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: By a 5-4 vote, Judiciary & Civil Jurisprudence voted the committee substitute for HB 969 out of committee on April 23, 2015. (Committee History: conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 969 begins around the 3:30:35 mark.)

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: By a 20-11 vote, the full Senate passed SB 735 on April 28, 2015. (Committee History: By a 7-2 vote, State Affairs voted SB 735 out of committee on April 22, 2015. The committee conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 735 begins around the 2:37:40 mark.)

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark. HB 670 remains pending.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On April 22, 2015, the full Senate unanimously passed SB 627. The bill was subsequently sent to the House and has been referred to Judiciary & Civil Jurisprudence. (Senate Committee History: The committee conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel.)

· Bill Analysis for HB 1766: House Research Organization

· Fiscal Note for HB 1766: Legislative Budget Board

· Status of HB 1766: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1766 out of committee on April 23, 2015. The committee substitute makes the bill identical to the version adopted by the Senate. (Committee History: The committee conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 1766: Witness List. TTLA, TLR, and the Texas Association of Broadcasters were among those who either testified or registered as being for the bill. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1766 begins around the 2:45 mark.)

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. The committee voted HB 3880 out of committee on April 16, 2015 without amendment.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 2754 out of committee (by a 6-0 vote, one absent) without amendments. (Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark.)

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015 and unanimously voted it out of committee on April 29th. No witnesses testified on HB 3364; however, a few witnesses registered as being for the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3364 begins around the 3:48:15 mark. The bill was left pending.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: The committee substitute for the original version of HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would be “contrary to the public policy of [Texas].” Under the bill, the application of a law would be contrary to public policy if it would: (1) violate a fundamental right guaranteed by the United States Constitution; (2) violate a fundamental right guaranteed by the Texas constitution; (3) violate good morals or natural justice; or (4) be prejudicial to the general interests of the citizens of Texas. The companion bill to the original version of HB 562 (SB 531) was filed by Sen. Donna Campbell (R - New Braunfels). SB 531 is similar to HB 899, which is summarized below.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562, as amended, out of committee by a 7-2 vote. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

· Bill Analysis for SB 531: Senate Research Center

· Fiscal Note for SB 531: Legislative Budget Board

· Bill Status for SB 531: Scheduled for public hearing in front of State Affairs on May 4, 2015 at 9:00 a.m.. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcast

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

SB 1600 - Limit on Award of Attorney's Fees in Certain Proceedings against the State or State Agency (Companion: HB 3641)

· Summary: SB 1600, filed by Sen. Lois Kolkhorst (R - Brenham), would amend the Texas Uniform Declaratory Judgments Act (DJA) and limit the amount of attorney’s fees awarded in cases seeking declaratory relief against the state or a state agency to an amount “not to exceed to exceed $250,000.” The companion bill, HB 3641, was filed by Rep. John Smithee (R - Amarillo),

· Bill Analysis for SB 1600: Senate Research Center

· Fiscal Note for SB1600: Legislative Budget Board

· Status of SB 1600: On April 29th, by a 7-1 vote, State Affairs voted SB 1600 out of committee. The committee had conducted a public hearing on April 20, 2015. Several witnesses registered a position on the bill. TTLA and the Texas NAACP were among those organizations registering their opposition to the bill while TLR and the Texas Conservative Coalition registered as being in favor of the bill. A representative from the Attorney General’s Office was the only testifying witness. All of the witnesses who either testified or registered a position on SB 1600 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1600 begins around the 32:20 mark.

· Fiscal Note for HB 3641: Legislative Budget Board

· Status of HB 3641: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Only a representative from the Attorney General’s Office testified on HB 3641. A representative of TLR registered as being for the bill while TTLA registered as being opposed to the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3641 begins around the 3:55:20 mark. The bill was left pending.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir. The committee substitute for HB 1403 that was adopted by the Judiciary & Civil Jurisprudence Committee would also require the expert report required under 74.351(a) to “address at least one theory of direct liability asserted against each physician or health care provider against whom a theory of direct liability is asserted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1403 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified for HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 1403 begins around the 11:10:45 mark.)

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Fiscal Note for HB 3646: Legislative Budget Board

· Status of HB 3646: Insurance conducted a public hearing on April 22, 2015. There were numerous individuals and groups registered to testify for HB 3646, but the witness list has yet to be posted. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3646 begins around the 3:27:55 mark. A committee substitute was proposed, but has yet to be posted. The bill remains pending.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: On April 30th, the full Senate passed SB 1628 by a 21-10 vote. (Committee History: Business & Commerce voted a committee substitute for SB 1628 out of committee on April 20, 2015. The committee conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 6:20 mark.)

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 2088 out of committee. The committee had conducted a public hearing on the bill on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 2088: Witness List. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2088 begins around the 1:35:45 mark.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget was approved by the full Senate on April 14th. A conference committee has been appointed to reconcile the differences between the two budgets.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Center

· Status of SB 455: On April 28th, State Affairs unanimously voted SB 455 out of committee and the full Senate, by a 21-10 vote, passed the bill without amendment. The committee had conducted a public hearing on April 20, 2015. Several witnesses either testified or registered a position on the bill. The only witness who testified was a TTLA representative, who spoke in favor of the bill. TLR registered as being for the bill, while a representative of the NAACP and a Mexican American Legal Defense and Educational Fund representative registered as being against SB 455. All of the witnesses who either testified or registered a position on SB 455 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 455 begins around the 22:55 mark. A committee substitute was offered, but has yet to be posted.

· Bill Analysis for HB 1091: House Research Organization

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark.)

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Bill Analysis for HB 1427: House Research Organization

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis for SB 1116: Senate Research Center

· Fiscal Note for SB 1116: Legislative Budget Board

· Status of SB 1116: On April 30th, the full Senate unanimously passed SB 1116. (Committee History: State Affairs unanimously voted a committee substitute for SB 1116 out of committee on April 22, 2015. The committee had conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 1116 begins around the 55:30 mark.)

· Bill Analysis for HB 2822: House Research Organization

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence unanimously voted HB 2822 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2822 begins around the 11:26:10 mark.)

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 28th, State Affairs voted SB 1970 out of committee by an 8-1 vote. The committee had conducted a public hearing on April 23, 2015. A few witnesses appeared to testify or register a position on the bill. The only witness who testified for the bill was a single probate court judge. A representative of the Family Law Foundation registered as being opposed to SB 1970. All of the witnesses who either testified or registered a position on SB 1970 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1970 begins around the 34:45 mark. The bill was left pending.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On April 15th, the full Senate passed SB 824. The bill was sent to the House and referred to Judiciary & Civil Jurisprudence on April 27th. (Senate Committee History: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author had originally intended to amend the bill once it reaches the House floor; however, the committee held another public meeting on April 21st and adopted the amended bill. The amendments exempt certain types of cases from the subject matter jurisdiction of the chancery court and increased the minimum amount in controversy for chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: After the initial public hearing, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section was given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 21, 2015. There were several individuals and groups registered to testify for, on, or against HB 2730: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2730 begins around the 1:04:00 mark. The bill was left pending.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Former Chief Justice Tom Phillips was one of the individuals who testified in support of HB 3430. A representative for the Texas Criminal Defense Lawyers Association testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3430 begins around the 2:16:30 mark. The bill was left pending.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on May 5, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3454 begins around the 5:15 mark. The bill was left pending.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill remains pending.

· Status of HB 3176: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on May 5, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 21, 2015, the full Senate unanimously passed SB 1457. (Committee History: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1457 begins around the 39:10:00 mark. On April 15, 2015, the committee unanimously voted the committee substitute out of committee. The substitute deleted any criminal penalty for barratry.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 was sent to the House and referred to Referred to Judiciary & Civil Jurisprudence. (Senate Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcast. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Status of HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted HB 241 out of committee, without amendment, on April 23, 2015. (Committee History: The committee conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark.)

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1692: House Research Organization

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 29th, Judiciary & Civil Jurisprudence voted HB 3008 out of committee without amendment. The committee had conducted a public hearing on April 28, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 3008 begins around the 3:19:30 mark.



Legislative Update
April 26, 2015
 

As we head into the last month of the regular session, efforts to vote and report out monitored bills continue to accelerate. Last week, Senate and House committees took public testimony on six (6) monitored bills. Nine (9) bills were voted out of committee, while the full Senate and House passed three (3) bills: SB 627 (Publications that are Privileged and Not Grounds for Libel Action), SB 1457 (Bad Faith Patent Infringement Claims), and HB 2089 (Repeal of Certain Occupation License Fees and Taxes).

As in past updates, I’ve included bill number links in the “The Week in Review” and “The Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

The Week in Review

The following six (6) monitored bills received public hearings last week (except for HB 1766, all remain pending in committee):

HB 1766 – Publications that are Privileged and Not Grounds for Libel Action

HB 2088 – Interim Study Regarding the Method by Which Judges and Justices are Selected

HB 2730 – Creation of Fifteenth District Court of Appeals

HB 3646 – Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance

SB 455 – Creation of a Special Three-Judge District Court

SB 1970 – Increase of Statewide Electronic Filing Fees

The following nine (9) bills were voted out of committee:

HB 241 – Substituted Service of Citation Through Social Media

HB 969 and SB 735 – Availability and Use of Evidence in Connection with an Award of Exemplary Damages

HB 1403 – Definition of Health Care Liability Claim for the Purposes of Certain Laws Governing Those Claims

HB 1603 – Creation of the Chancery Court and Court of Chancery Appeals (second vote to amend the original bill)

HB 1766 – Publications that are Privileged and Not Grounds for Libel Action

HB 2822 and SB 1116 – Notices or Documents Sent by Mail or Electronic Mail by a Court, Justice, Judge, or Clerk of a Judicial Clerk

SB 1628 – Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance

SB 627 (Publications that are Privileged and Not Grounds for Libel Action) and SB 1457 (Bad Faith Patent Infringement Claims) were unanimously passed by the full Senate on April 22nd and April 21st respectively. On April 23, 2015, the House unanimously passed HB 2089 (Repeal of Certain Occupation License Fees and Taxes).

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

The following six (6) monitored bills are scheduled for public hearing this week:

HB 1784 – Construction Defect Claims

HB 2045 – Eligibility of Attorneys Licensed by Another State to Take the State Bar Exam

HB 3008 – Elimination of Wrongful Birth Cause of Action

HB 3364 – Appeals of Judgments in Eviction Suits

HB 3430 – Jurisdiction of the Supreme Court and Court of Criminal Appeals

HB 3454 – Assignment of Rights in an Individual’s Legal Claim

Where applicable, the status and summary for each of these bills, as well as all other monitored bills, have been updated.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law++

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims++

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections

Evictions++

Family Law

Governmental Immunity

Health Care Liability

Insurance

Judicial Selection

Judiciary/Court Administration++

Lawsuit Financing/Lending++

Patent Infringement Claims

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure

Wrongful Birth/Life Causes of Action++

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would be a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On March 24, 2015, the Senate unanimously passed SB 534. It has now been referred to the House. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee).

· Bill Analysis for HB 1644: House Research Organization

· Fiscal Note for HB 1644: Legislative Budget Board

· Status of HB 1644: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1644 out of committee without amendment. (Committee History: The committee conducted a public hearing on the bill on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark.)

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4th) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: On April 23, 2015, the House unanimously passed HB 2089. (Committee History: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The committee approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015.)

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Fiscal Note for HB 2045: Legislative Budget Board

· Status of HB 2045: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 28, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2512 begins around the 2:50:00 mark. The bill remains pending,

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 28, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill remains pending.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: By a 5-4 vote, Judiciary & Civil Jurisprudence voted the committee substitute for HB 969 out of committee on April 23, 2015. (Committee History: conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 969 begins around the 3:30:35 mark. The committee substitute has yet to be posted.)

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: By a 7-2 vote, State Affairs voted SB 735 out of committee on April 22, 2015. (Committee History: The committee conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 735 begins around the 2:37:40 mark.)

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark. HB 670 remains pending.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On April 22, 2015, the full Senate unanimously passed SB 627. (Committee History: The committee conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel.)

· Fiscal Note for HB 1766: Legislative Budget Board

· Status of HB 1766: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1766 out of committee on April 23, 2015. The committee substitute has yet to be posted. (Committee History: The committee conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 1766: Witness List. TTLA, TLR, and the Texas Association of Broadcasters were among those who either testified or registered as being for the bill. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1766 begins around the 2:45 mark.)

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. The committee voted HB 3880 out of committee on April 16, 2015 without amendment.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 2754 out of committee (by a 6-0 vote, one absent) without amendments. (Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark.)

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 28, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are both similar to HB 899, which is summarized below.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562, as amended, out of committee by a 7-2 vote. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted a committee substitute for HB 1403 out of committee on April 23, 2015. The committee substitute has yet to be posted. (Committee History: The committee conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified for HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 1403 begins around the 11:10:45 mark.)

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Fiscal Note for HB 3646: Legislative Budget Board

· Status of HB 3646: Insurance conducted a public hearing on April 22, 2015. There were numerous individuals and groups registered to testify for HB 3646, but the witness list has yet to be posted. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 3646 begins around the 3:27:55 mark. A committee substitute was proposed, but has yet to be posted. The bill was left pending.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: Business & Commerce voted a committee substitute for SB 1628 out of committee on April 20, 2015. (Committee History: The committee conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 6:20 mark.)

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 21, 2015. There were numerous individuals and groups that either testified or registered a position on HB 2088: Witness List. No one testified against the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2088 begins around the 1:35:45 mark. The bill was left pending.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget was approved by the full Senate on April 14th.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Center

· Status of SB 455: State Affairs conducted a public hearing on April 20, 2015. Several witnesses either testified or registered a position on the bill. The only witness who testified was a TTLA representative, who spoke in favor of the bill. TLR registered as being for the bill, while a representative of the NAACP and a Mexican American Legal Defense and Educational Fund representative registered as being against SB 455. All of the witnesses who either testified or registered a position on SB 455 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 455 begins around the 22:55 mark. A committee substitute was offered, but has yet to be posted. The bill was left pending.

· Bill Analysis for HB 1091: House Research Organization

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark.)

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis for SB 1116: Senate Research Center

· Fiscal Note for SB 1116: Legislative Budget Board

· Status of SB 1116: State Affairs unanimously voted a committee substitute for SB 1116 out of committee on April 22, 2015. (Committee History: The committee conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 1116 begins around the 55:30 mark.)

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence unanimously voted HB 2822 out of committee on April 23, 2015. (Committee History: The committee conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2822 begins around the 11:26:10 mark.)

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: State Affairs conducted a public hearing on April 23, 2015. A few witnesses appeared to testify or register a position on the bill. The only witness who testified for the bill was a single probate court judge. A representative of the Family Law Foundation registered as being opposed to SB 1970. All of the witnesses who either testified or registered a position on SB 1970 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archive Broadcast. Testimony about SB 1970 begins around the 34:45 mark. The bill was left pending.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author intends to amend the bill once it reaches the House floor. The amendments are intended to exempt certain types of cases from the subject matter jurisdiction of the chancery court and increase the minimum amount in controversy for chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: During the weeks of April 6th and April 13th respectively, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section has been given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 21, 2015. There were several individuals and groups registered to testify for, on, or against HB 2730: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2730 begins around the 1:04:00 mark. The bill was left pending.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 28, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 28, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill remains pending.

· Status of HB 3176: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 21, 2015, the full Senate unanimously passed SB 1457. (Committee History: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1457 begins around the 39:10:00 mark. On April 15, 2015, the committee unanimously voted the committee substitute out of committee. The substitute deleted any criminal penalty for barratry.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 has been sent to the House for consideration. (Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcast. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Status of HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence unanimously voted HB 241 out of committee, without amendment, on April 23, 2015. (Committee History: The committee conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark.)

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Analysis for HB 1692: House Research Organization

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 28, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

 
Legislative Update
April 19, 2015

There are now less than forty-five (45) days remaining in the regular session. As critical calendaring deadlines approach (especially in the House), we can expect to see a considerable amount of effort to vote and report out bills quickly over the next several days. No rest for the weary.

Last week, Senate and House committees took public testimony on six (6) monitored bills. Six (6) other bills were voted out of committee, with two of the more notable bills being HB 562 (Application of Foreign Laws/Forum Selection in Family Law Proceedings) and HB 1603 (Chancery Courts). With regard to HB 1603, last week the State Bar of Texas approved both the Judicial Section’s request to oppose HB 1603 and the Business Law Section’s request to support the bill. (Note: Other organizations that have taken a position on HB 1603 are described in the bill summary below.)

As in past updates, I’ve included bill number links in the “The Week in Review” and “The Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

The Week in Review

The following eight (8) monitored bills received public hearings last week (all were left pending):

HB 419 – Federal Income Tax Liability for Certain Damages Awarded in Certain Civil Cases

HB 969 and SB 735 – Availability and Use of Evidence in Connection with an Award of Exemplary Damages

HB 1403 – Definition of Health Care Liability Claim for the Purposes of Certain Laws Governing Those Claims

HB 2822 and SB 1116 – Notices or Documents Sent by Mail or Electronic Mail by a Court, Justice, Judge, or Clerk of a Judicial Clerk

HB 2512 – Adoption of the Uniform Collaborative Law Act

SB 1628 – Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (hearing on committee substitute)

The following nine (9) bills were voted out of committee:

HB 562 – Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

HB 1603 – Creation of the Chancery Court and Court of Chancery Appeals

HB 1644 – Oath of Persons Admitted to Practice Law in Texas

HB 1091 – Creation of a Special Three-Judge District Court

HB 1494 – Filing the Reporter’s Record

HB 1692 – Doctrine of Forum Non Conveniens

HB 2754 – Filing Requirements for Candidates for Certain Judicial Offices

SB 627 – Publications that are Privileged and Not Grounds for Libel Action

SB 1457 – Bad Faith Patent Infringement Claims (Patent Trolling)

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

The following five (5) monitored bills are scheduled for public hearing this week:

HB 1766 – Publications that are Privileged and Not Grounds for Libel Action

HB 2088 – Interim Study Regarding the Method by Which Judges and Justices are Selected

HB 2730 – Creation of Fifteenth District Court of Appeals

HB 3646 – Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance

SB 455 – Creation of a Special Three-Judge District Court

Where applicable, the status and summary for each of these bills, as well as all other monitored bills, have been updated.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel++

Elections

Evictions

Family Law

Governmental Immunity

Health Care Liability

Insurance++

Judicial Selection++

Judiciary/Court Administration++

Lawsuit Financing/Lending

Patent Infringement Claims

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1494 out of committee without amendment. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark.)

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17th.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit unless the referral complied with State Bar rules and is evidenced by a written contract between the parties who are subject to the referral. A violation of this law would be a Class A misdemeanor. The original version of the bill prohibited referrals without exception.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the committee substitute out of committee and sent the bill to Calendars on April 7th. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Fiscal Note for SB 534: Legislative Budget Board

· Status of SB 534: On March 24, 2015, the Senate unanimously passed SB 534. It has now been referred to the House. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee).

· Fiscal Note for HB 1644: Legislative Budget Board

· Status of HB 1644: On April 16, 2015, Judiciary & Civil Jurisprudence unanimously voted HB 1644 out of committee without amendment. (Committee History: The committee conducted a public hearing on the bill on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark.)

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis for SB 765: Senate Research Center

· Fiscal Note for SB 765: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4th. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4th) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Bill Analysis for HB 2089: House Research Organization

· Fiscal Note for HB 2089: Legislative Budget Board

· Status of HB 2089: Licensing & Administrative Procedures approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015. The bill was sent to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark.)

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Status of HB 2045: Referred to Judiciary & Civil Jurisprudence on March 13, 2015

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for, on, or against the bill. Two individuals/attorneys testified in favor of HB 2512. Representatives from TTLA, TADC, and TEX-ABOTA all testified against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2512 begins around the 2:50:00 mark. The bill remains pending,

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either against or on the bill, most of which (all insurance and/or contractor representatives) were against it. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 419 begins around the 1:39:00 mark. A committee substitute was proposed that reportedly includes a 2-year limitation period for defendants to be liable for compensation under this bill, but has yet to be posted. The bill remains pending.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Fiscal Note for HB 969: Legislative Budget Board

· Status of HB 969: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified or registered either for, on or against HB 969. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative also testified, but did not take a position on HB 969. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 969 begins around the 3:30:35 mark. A committee substitute was offered, but has yet to be posted. The bill remains pending,

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Status of SB 735: State Affairs conducted a public hearing on April 13, 2015. Several witnesses testified or registered either for, on or against SB 735. Representatives from Texans for Lawsuit Reform, the Texas Public Policy Foundation, and businesses/organizations were in favor of the bill. A TTLA representative testified against the bill. A TADC representative testified, but did not take a position on SB 735. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 735 begins around the 2:37:40 mark. A committee substitute was offered, but has yet to be posted. The bill remains pending.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark. HB 670 remains pending.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. On April 16, 2015, the committee voted on the bill but it failed to pass out of committee.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the following sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Analysis for SB 627: Senate Research Center

· Fiscal Note for SB 627: Legislative Budget Board

· Status of SB 627: On April 15, 2015, State Affairs approved a committee substitute for SB 627, which sought to further clarify that a journalist accurately reporting on third party allegations regarding matters of public concern could use the accuracy of such reporting as a defense to libel. (Committee History: The committee conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark.)

· Bill Analysis for SB 627: Senate Research Center

· Status of HB 1766: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 21, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. The committee voted HB 3880 out of committee on April 16, 2015 without amendment.

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16, 2015, Elections voted HB 2754 out of committee (by a 6-0 vote, one absent) without amendments. (Committee History: The committee conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark.)

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are both similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 562, as amended, out of committee by a 7-2 vote. As of April 17th, the amended version has not been posted. (Committee History: The committee conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark.)

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 899 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th and sent it to Calendars on April 14th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 956 was scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, the bill was pulled so no action was taken.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Several witnesses testified either for or against the bill. Representatives from TLR and the Texas Nurses Association testified for HB 1403. TTLA testified against the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 1403 begins around the 11:10:45 mark. A committee substitute was proposed and, according to the bill’s author, another substitute is forthcoming. The bill was left pending,

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Status of HB 3646: Scheduled for public hearing in front of Insurance on April 22, 2015 at 11:00 a.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: Business & Commerce conducted its first public hearing on SB 1628 on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 1:50:40 mark.

A public hearing on the committee substitute for SB 1628 was conducted on April 14, 2015. Much like the first hearing, many witnesses either testified (or registered a position without testifying) about the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcast. Testimony about SB 1628 begins around the 6:20 mark. The second hearing was scheduled only to take testimony on the committee substitute; however, the committee substitute has yet to be posted. The bill was left pending.

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 21, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget was approved by the full Senate on April 14th.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Fiscal Note for SB 455: Legislative Budget Board

· Analysis for SB 455: Senator Research Organization

· Status of SB 455: Scheduled for public hearing in front of State Affairs on April 20, 2015 at 12:00 p.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcast.

· Fiscal Note for HB 1091: Legislative Budget Board

· Status of HB 1091: On April 16, 2015, Judiciary & Civil Jurisprudence voted a committee substitute for HB 1091 out of committee (5-4 vote). (Committee History: The committee conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark. A committee substitute was discussed, but has yet to be posted.)

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1116: State Affairs conducted a public hearing on April 16, 2015. Only three witnesses testified on SB 1116 (one in support of the bill; two simply “on” the bill), while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List Senate Archived Broadcast. Testimony about SB 1116 begins around the 55:30 mark. A committee substitute was proposed, but a copy has yet to be posted. The bill was left pending.

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Judiciary & Civil Jurisprudence conducted a public hearing on April 14, 2015. Only one witness testified on HB 2822, while several registered support for the bill. Here is the witness list and a link to the archived broadcast of the hearing: Witness List House Archived Broadcast. Testimony about HB 2822 begins around the 11:26:10 mark. The bill was left pending,

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Status: Referred to State Affairs on March 25, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Status of HB 427: Referred to Redistricting on February 16, 2015.

· Status of HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 16th, Business & Industry voted HB 1603 out of committee (by a 4-3 vote). The bill’s author intends to amend the bill once it reaches the House floor. The amendments are intended to exempt certain types of cases from the subject matter jurisdiction of the chancery court and increase the minimum amount in controversy for chancery court cases. (Committee History: The committee conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark.) Note: During the weeks of April 6th and April 13th respectively, the SBOT granted the requests of the Litigation Section and Judicial Section to oppose HB 1603. The Business Law Section has been given permission to support the bill.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 21, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcast.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: HB 3426 had been scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015. However, no action was taken by the committee as the author had asked that the hearing be rescheduled.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 18, 2015.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be posted. The bill remains pending.

· Status of HB 3176: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 15, 2015, a committee substitute was voted unanimously out of State Affairs. (Committee History: A public hearing was conducted on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1457 begins around the 39:10:00 mark. The committee substitute deleted any criminal penalty for barratry.)

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 has been sent to the House for consideration. (Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcast. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Bill Status for HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark. The bill remains pending.

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: On April 16, 2015, Judiciary & Civil Jurisprudence voted HB 1692 out of committee by a 5-4 vote. (Committee History: The committee conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark. A committee substitute was submitted; however, the amendments to the bill have yet to be posted.)

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015. 

Legislative Update
April 12, 2015

Last week, Senate and House committees took public testimony on five (5) monitored bills and voted two (2) out of committee. Also, the House passed one of the bills (HB 230 – Recovery of Attorney’s Fees in Certain Civil Cases) by a 133-10-2 vote. Nine (9) bills are scheduled for public hearing this week.

As in past updates, I’ve included bill number links in the “The Week in Review” and “The Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

The Week in Review

The following five (5) monitored bills received public hearings last week (all were left pending):

HB 1091 – Creation of a Special Three-Judge District Court

HB 1494 – Filing the Reporter’s Record

HB 1692 – Doctrine of Forum Non Conveniens

SB 1187 – Patent Infringement Claims (Patent Trolling)

SB 1457 – Bad Faith Patent Infringement Claims (Patent Trolling)

The following three (3) bills were either passed by the House/Senate or voted out of committee and will head to the full Senate/House for consideration:

HB 230 – Recovery of Attorney’s Fees in Certain Civil Cases (passed by the House and sent to the Senate)

HB 1195 – Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding (voted out of committee)

HB 2089 – Repeal of Occupation Tax (voted out of committee)

The status of each bill, as well as the others that experienced some form of activity last week, have been updated below.

The Week Ahead

The following nine (9) monitored bills are scheduled for public hearing this week:

HB 419 – Federal Income Tax Liability for Certain Damages Awarded in Certain Civil Cases

HB 899 – Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

HB 956 – Scope of a Health Care Liability Claim

HB 969 and SB 735 – Availability and Use of Evidence in Connection with an Award of Exemplary Damages

HB 1403 – Definition of Health Care Liability Claim for the Purposes of Certain Laws Governing Those Claims

HB 2822 – Notices or Documents Sent by Mail or Electronic Mail by a Court, Justice, Judge, or Clerk of a Judicial Clerk

HB 2512 – Adoption of the Uniform Collaborative Law Act

HB 3426 – Concurrent Jurisdiction of a Statutory County Court with a District Court in Certain Civil Cases

Where applicable, the status and summary for each of these bills, as well as all other monitored bills, have been updated.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Certificate of Merit

Collaborative Law++

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages++

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections

Evictions

Family Law++

Governmental Immunity

Health Care Liability++

Insurance

Judicial Selection

Judiciary/Court Administration++

Lawsuit Financing/Lending

Patent Infringement Claims++

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure++

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on April 7, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1494 begins around the 1:41:00 mark. The bill was left pending.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 230 was passed by the full House on April 9th. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17, 2015.)

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 2nd, General Investigating & Ethics voted the bill out of committee and sent the bill to Calendars. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark.)

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Status of SB 534: On March 24, 2015, the Senate unanimously passed SB 534. It has now been referred to the House. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee).

· Status of HB 1644: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark. HB 1644 remains pending.

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4, 2015) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Status of HB 2089: Licensing & Administrative Procedures approved a committee substitute for HB 2089 and voted it out of committee on April 6, 2015. (Committee History: The committee had conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark.)

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Status of HB 2045: Referred to Judiciary & Civil Jurisprudence on March 13, 2015

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar. (Committee History: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark.)

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820: Witness List. TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Fiscal Note for HB 969: Legislative Budget Board

· Bill Status for HB 969: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

· Bill Analysis for SB 735: Senate Research Center

· Fiscal Note for SB 735: Legislative Budget Board

· Bill Status for SB 735: Scheduled for public hearing in front of State Affairs on April 13, 2015 at 9:00 a.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark. HB 670 remains pending.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. HJR 32 remains pending.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Status of SB 627: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. The bill remains pending,

· Bill Analysis for SB 627: Senate Research Center

· Status of HB 1766: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but never was put to a vote before the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 remains pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 remains pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. HB 3880 remains pending.

· Fiscal Note: Legislative Budget Board

· Bill Status: Elections conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark. The bill remains pending.

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are both similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark. The bill remains pending.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: The committee on Juvenile Justice & Family Issues voted HB 1195 out of committee (without amendments) on April 8th. (Committee History: The committee had conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark.)

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior to filing suit that includes a sworn statement containing the following information: (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer of certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Status of HB 3646: Referred to Insurance on March 27, 2015.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: Business & Commerce conducted a public hearing on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1628 begins around the 1:50:40 mark. SB 1628 remains pending.

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary/Status: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1 (the section of CSHB 1 related to the judiciary is located at pp. 485-528). The $793 million for the judiciary is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

On April 9th, the Senate Finance Committee considered the House’s budget and approved (unanimously) a committee substitute that mirrored the Senate’s version of the budget. The Senate’s version of the budget has been forwarded to the full Senate for consideration.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of a Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status for SB 455: Referred to State Affairs on February 9, 2015.

· Bill Status for HB 1091: Judiciary & Civil Jurisprudence conducted a public hearing on April 7, 2015. Several witnesses testified (or registered a position without testifying) about the bill. Most of those who testified or registered a position about the bill opposed it, including TTLA, the Texas Family Law Foundation, and TEX-ABOTA. All of the witnesses who either testified or registered a position on HB 1091 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1091 begins around the 5:41:50 mark. A committee substitute was discussed, but has not been published. The bill was left pending.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: HB 1427 was voted out of committee, without amendments, on April 2, 2015. (Committee History: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark.)

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1116: Referred to State Affairs on March 16, 2015.

· Fiscal Note for HB 2822: Legislative Budget Board

· Status of HB 2822: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

SB 1970 - Increase of Statewide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Status: Referred to State Affairs on March 25, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: On March 17th, Judiciary & Civil Jurisprudence unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar. (Committee History: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark.)

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: On March 31, 2015, a committee substitute was voted unanimously out of State Affairs and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury. (Committee History: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark.)

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Fiscal Note: Legislative Budget Board

· Bill Status: Business & Industry conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark. HB 1603 remains pending. (Note: During the week of April 6th, the SBOT Litigation Section has obtained permission from the SBOT’s Board of Directors to oppose HB 1603. It is my understanding that the Judicial Section of the SBOT will be seeking permission to oppose the bill as well.)

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 14, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 remains pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, each of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Supreme Court would hear death penalty cases en banc.

· Status of HJR 90: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 18, 2015.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Bill Analysis of SB 1187: Senate Research Center

· Fiscal Note for SB 1187: Legislative Budget Board

· Status of SB 1187: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1187 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be published. The bill remains pending.

· Status of HB 3176: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement. However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe the patent. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for a license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: State Affairs conducted a public hearing on April 9, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the Senate Archive Broadcast. Testimony about SB 1457 begins around the 39:10:00 mark. A committee substitute was offered that deletes any criminal penalty for barratry, but has yet to be published. The bill remains pending.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 has been sent to the House for consideration. (Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcasts. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Bill Status for HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution remains pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark. The bill remains pending.

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: Judiciary & Civil Jurisprudence conducted a public hearing on April 7, 2015. Those who testified either for, on, or against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1692 begins around the 4:14:00 mark. A committee substitute was submitted. The bill remains pending.

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Legislative Update
April 5, 2015

For the most part, it was a relatively slow and non-controversial week for our monitored bills; however, the House did approve its version of the budget, which allocated additional funds for the judicial branch. As noted in last week’s update, I’ve included bill number links in the “Week in Review” and “Week Ahead” sections that will take you to the summaries for each bill in the “Monitored Legislation” section.

Week in Review

The following four (4) monitored bills received public hearings last week (all were left pending):

SB 1628 – Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance

SB 1702 – Elimination of Straight Ticket Voting for Judicial Offices (companion to HB 25).

HB 2089 – Repeal of the Occupation Tax

HB 2754 – Filing Requirements for Candidates for Certain Judicial Offices

The following three (3) monitored bills were voted out of committee and will head to the full Senate/House for consideration:

SB 824 – Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Note: The companion bill, HB 1122, was previously voted out of committee.)

HB 1427 – Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court

HB 2624 – Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

On the fiscal front, by a 141-5 vote, the House passed a budget that appropriated $793 million for the judiciary in the next biennium, which is $32 million more than proposed in the original budget and an almost 4% increase over the last biennium. The House-approved budget (CSHB 1) includes funding for the following:

· Basic Civil Legal Services – The Supreme Court would receive $61.4 million over the next biennium for basic civil legal services, of which $10 million would be dedicated for legal aid for sexual assault victims and $1.75 million for veterans.

· EFileTexas.gov – The Office of Court Administration (OCA) would receive $28.8 million for the biennium for EFileTexas.gov, which would be funded by $14.4 million collected each year from the $20 e-filing fee that litigants pay when they file civil lawsuits. OCA would also receive in excess of $900,000 each fiscal year to establish four new child protection courts.

· “Similar Funding for Same Size Courts” Block Grant – The intermediate appellate courts would receive the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant.

The status of each bill, as well as the others that received hearings last week, have been updated below.

Week Ahead

The following three (3) monitored bills are scheduled for public hearing this week:

HB 1091 – Creation of Special Three-Judge District Court

HB 1494 – Filing the Reporter’s Record

HB 1692 – Doctrine of Forum Non Conveniens

The status and summary for each of these bills have been appropriate.

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure++

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections

Evictions

Family Law

Governmental Immunity

Health Care Liability

Insurance

Judicial Selection

Judiciary/Court Administration++

Lawsuit Financing/Lending

Patent Infringement Claims

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure++

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 7, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17, 2015 and has been sent to the Local & Consent Calendar.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

· Fiscal Note: Legislative Budget Board

· Bill Status: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark. The bill was left pending.

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Status of SB 534: On March 24, 2015, the Senate unanimously passed SB 534. It has now been referred to the House. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee).

· Status of HB 1644: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark. HB 1644 was left pending.

SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4, 2015) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Status of HB 2089: Licensing & Administrative Procedures conducted a public hearing on March 30, 2015. Several testified or registered in support of the bill. No one opposed it. Those who testified or registered in support of HB 2089 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony on HB 2089 begins around the 2:07:25 mark. The bill remains pending.

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Status of HB 2045: Referred to Judiciary & Civil Jurisprudence on March 13, 2015

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Fiscal Note: Legislative Budget Board

· Bill Status: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark. On April 1st, HB 2624 was voted out of committee without amendments and was recommended for the Local & Consent calendar.

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820 (Witness List). TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Status for HB 969: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

· Bill Status for SB 735: Referred to State Affairs on March 2, 2015.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark. HB 670 was left pending.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. HJR 32 was left pending.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Status of SB 627: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. The bill remains pending,

· Bill Analysis for SB 627: Senate Research Center

· Status of HB 1766: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but was never voted on by the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the bill. Those who did testify (or registered a position on the bill) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 was left pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: State Affairs conducted a public hearing on March 30, 2015. Most witnesses who testified about the bill opposed it. Those who did testify (or registered a position without testifying) are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1702 begins around the 1:42:00 mark. SB 1702 was left pending.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth). A public hearing was held in front of Elections at the same time as HB 2754. HB 3880 was left pending.

· Fiscal Note: Legislative Budget Board

· Bill Status: Elections conducted a public hearing on March 30, 2015. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2754 begins around the 3:14:00 mark. The bill was left pending.

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are both similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark. The bill was left pending.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Juvenile Justice & Family Issues conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill. At this time, a complete witness list has been published. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark. The bill was left pending.

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior filing suit that includes a sworn statement that includes (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of the attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of the attorney ’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Status of HB 3646: Referred to Insurance on March 27, 2015.

· Bill Analysis for SB 1628: Senate Research Center

· Fiscal Note for SB 1628: Legislative Budget Board

· Status of SB 1628: Business & Commerce conducted a public hearing on March 31, 2015. Many witnesses either testified (or registered a position without testifying) about the bill. Most of those who testified were against the bill; most who registered a position without testifying supported the bill. All of the witnesses who either testified or registered a position on SB 1628 are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Broadcast Archive. Testimony about SB 1628 begins around the 1:50:40 mark. SB 1628 was left pending.

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: On April 1, 2015, the House voted (141-5) to pass its budget, which appropriated $793 million for the judiciary during the next biennium and included the above-referenced appropriations as recommended by the Appropriations Committee: CSHB 1. The section of CSHB 1 related to the judiciary is located at pp. 485-528. The Senate’s budget is still in committee.

The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status for SB 455: Referred to State Affairs on February 9, 2015.

· Bill Status for HB 1091: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 7, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one individual for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark. A committee substitute has been proposed, but not published. HB 1427 was voted out of committee, without amendments, on April 2, 2015.

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1116: Referred to State Affairs on March 16, 2015.

· Status of HB 2822: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

SB 1970 - Increase of State Wide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Status: Referred to State Affairs on March 25, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark. On March 17th, the committee unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar.

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark. On March 31, 2015, the committee substitute was voted unanimously out of committee and recommended for the local and uncontested calendar. Like the House version, the committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000, thus negating the need to use a twelve-person jury.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Fiscal Note: Legislative Budget Board

· Bill Status: Business & Industry conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. It is my understanding that the SBOT Litigation Section also intends to oppose HB 1603. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark. HB 1603 was left pending.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals

Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 was left pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

· Status of HJR 90: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 18, 2015.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1187: Referred to State Affairs on March 17, 2015.

· Status of HB 3176: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement; However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Status: Referred to State Affairs on March 19, 2015.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 has been sent to the House for consideration. (Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcasts. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Bill Status for HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution was left pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark. The bill remains pending.

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 1692: Legislative Budget Board

· Status of HB 1692: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on April 7, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

 

 
Legislative Update
March 29, 2015

Week in Review

As you may recall, several monitored bills were scheduled for public hearing last week. The following two bills received a great deal of attention and motivated many individuals to appear at the Capitol to testify: HB 562 (Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship) and HB 1603 (Creation of the Chancery Court and Court of Chancery Appeals). Each bill continues to generate both support and opposition, so they will be worth watching closely as the legislative process moves forward. In the interim, the status of each bill, as well as the others that received hearings last week, have been updated below.

On the non-controversial front, the Senate passed SB 534 (Oath of Persons Admitted to Practice Law in Texas) by a unanimous vote and SB 512 (Promulgation of Forms for Use in Probate Matters) by a near-unanimous vote (30-1). Both bills now move to the House for consideration.

Week Ahead

The following four (4) monitored bills are scheduled for public hearing this week:

SB 1628 – Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance

SB 1702 – Elimination of Straight Ticket Voting for Judicial Offices (companion to HB 25).

HB 2089 – Repeal of the Occupation Tax

HB 2754 – Filing Requirements for Candidates for Certain Judicial Offices

Monitored Legislation

The subject-matter groupings below that include bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill. (Note: If you would rather jump-down to a category of bills instead of perusing the entire list from top-to-bottom, you can click on the subject heading below.)

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law++

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

Defamation/Libel

Elections++

Evictions

Family Law

Governmental Immunity

Health Care Liability

Insurance++

Judicial Selection

Judiciary/Court Administration

Lawsuit Financing/Lending

Patent Infringement Claims

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Analysis: House Research Organization

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee without amendments on March 17, 2015 and has been sent to the Local & Consent Calendar.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

· Fiscal Note: Legislative Budget Board

· Bill Status: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one testified for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1531 begins around the 2:08:00 mark. The bill was left pending.

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Status of SB 534: On March 24, 2015, the Senate unanimously passed SB 534. It has now been referred to the House. (Committee History: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee on March 16, 2015).

· Status of HB 1644: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several testified in support of the bill. No one opposed it. Those who testified are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1644 begins around the 1:02:35 mark. HB 1644 was left pending.

++ SB 765 - Repeal of Occupation Tax (Companion: HB 2089)

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals. The companion bill, HB 2089, was filed by Rep. Drew Darby (R - San Angelo), but multiple representatives have joined in on the bill.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 765: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4, 2015) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

· Status of HB 2089: Referred to Licensing & Administrative Procedures on March 13, 2015. The bill is scheduled for public hearing on Monday, March 30th at 2:00 p.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam (Companion: HB 2045)

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas. The companion bill, HB 2045, was filed by Rep. James White (R - Woodville).

· Status of SB 1430: Referred to State Affairs on March 18, 2015.

· Status of HB 2045: Referred to Judiciary & Civil Jurisprudence on March 13, 2015

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Fiscal Note: Legislative Budget Board

· Bill Status: Higher Education conducted a public hearing on March 25, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 2624 begins around the 26:50 mark. HB 2624 was left pending.

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the witness list and a link to the archived broadcast of the hearing: House Broadcast Archive Witness List. Testimony about HB 1353 begins around the 10:00 mark.

· Status of SB 1579: Referred to State Affairs on March 23, 2015.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820 (Witness List). TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Status for HB 969: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

· Bill Status for SB 735: Referred to State Affairs on March 2, 2015.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Fiscal Note for HB 670/HJR 32: Legislative Budget Board

· Status of HB 670: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Several individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 670 begins around the 1:31:40 mark. HB 670 was left pending.

· Status of HJR 32: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals testified either for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 32 begins around the 1:02:35 mark. HJR 32 was left pending.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Status of SB 627: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. The bill remains pending,

· Bill Analysis for SB 627: Senate Research Center

· Status of HB 1766: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Elections

++ HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but was never voted on by the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note for HB 25 / SB 1702: Legislative Budget Board

· Status of HB 25: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Very few individuals testified either for, against, or on the resolution. Those who did testify are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 25 begins around the 5:40 mark. HB 25 was left pending.

· Bill Analysis for SB 1702: Senate Research Center

· Status of SB 1702: Referred to State Affairs on March 23, 2015 and is scheduled for public hearing on Monday, March 30th at 9:00 a.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

++ HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth).

· Fiscal Note: Legislative Budget Board

· Bill Status: HB 2754 is scheduled for public hearing in front of Elections on March 30, 2015 at 2:00 or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are both similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Judiciary & Civil Jurisprudence conducted a public hearing on March 24, 2015. Numerous individuals either testified for, against, or on the bill. They are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 562 begins around the 1:59:20 mark. HB 562 was left pending.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Juvenile Justice & Family Issues conducted a public hearing on March 25, 2015. A representative of the Texas Family Law Foundation testified in opposition to HB 1195. No other witnesses testified, but several individuals registered their position on the bill. At this time, a complete witness list has been published. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1195 begins around the 22:35:00 mark. HB 1195 was left pending.

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

++ HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance (Companion: SB 1628)

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior filing suit that includes a sworn statement that includes (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of the attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of the attorney ’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer certain claims for damages to or loss of real property or tangible personal property.

The companion bill, SB 1628, was filed by Sen. Larry Taylor (R - Friendswood).

· Status of HB 3646: Referred to Insurance on March 27, 2015.

· Status of SB 1628: Referred to Business & Commerce on March 23, 2015 and is scheduled for public hearing on March 31, 2015 at 8:00 a.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts.

HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage (Companion: HB 3533)

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

The companion bill, HB 3533, was filed by Rep. Sergio Munoz, Jr. (D - Mission).

· Status of HB 3822: Referred to Insurance on March 23, 2015.

· Status of HB 3533: Referred to Insurance on March 18, 2015.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status for SB 455: Referred to State Affairs on February 9, 2015.

· Bill Status for HB 1091: Referred to Judiciary & Civil Jurisprudence on March 4, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Fiscal Note for HB 1427: Legislative Budget Board

· Status of HB 1427: General Investigating & Ethics conducted a public hearing on March 26, 2015. No one individual for, against, or on the bill. Only one person registered to take a position on the bill and it was a registration of support. Here is the Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1427 begins around the 2:11:15 mark. A committee substitute has been proposed, but not published. The bill was left pending.

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1116: Referred to State Affairs on March 16, 2015.

· Status of HB 2822: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

SB 1970 - Increase of State Wide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

· Bill Status: Referred to State Affairs on March 25, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary: HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Analysis for HB 1122: House Research Organization

· Fiscal Note for HB 1122: Legislative Budget Board

· Status of HB 1122: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1122 begins around the 2:00 mark. On March 17th, the committee unanimously approved a committee substitute that would authorize a commissioners court to reduce the jurisdiction of the county court to $200,000 in those counties in which the county court has concurrent jurisdiction with the district court in civil cases in which the amount in controversy exceeds $200,000. The committee substitute for HB 1122 (CSHB 1122) has been sent to the Local & Consent Calendar.

· Bill Analysis for SB 824: Senate Research Center

· Fiscal Note for SB 824: Legislative Budget Board

· Status of SB 824: State Affairs conducted a public hearing on March 23, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 824 begins around the 36:44 mark. A committee substitute was introduced, but was left pending.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Fiscal Note: Legislative Budget Board

· Bill Status: Business & Industry conducted a public hearing on March 24, 2015. Several witnesses testified and/or registered as being either for, on, and against the bill. Those testifying in support of HB 1603 included former Chief Justice Tom Phillips and a representative from the Texas Business Law Foundation. Those testifying against the bill included representatives from TTLA, TADC, and TEX-ABOTA. Here is a complete list of those who testified or otherwise registered a position on the bill: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 1603 begins around the 2:28:30 mark. HB 1603 was left pending.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals

Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 was left pending.

· Status of HB 3932: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

· Status of HJR 90: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 18, 2015.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1187: Referred to State Affairs on March 17, 2015.

· Status of HB 3176: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement; However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Status: Referred to State Affairs on March 19, 2015.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: On March 24, 2015, the full Senate passed SB 512 by a 30-1 vote. SB 512 has been sent to the House for consideration. (Committee History: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archive Broadcasts. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015.)

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Bill Status for HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution was left pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

· Bill Status: Referred to State Affairs on March 23, 2015.

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Broadcast Archive. Testimony about HB 241 begins around the 13:20 mark. The bill remains pending.

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Status of HB 1692: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

· Status of SB 1942: Referred to State Affairs on March 25, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 23, 2015.


 Legislative Update
March 22, 2015

As expected, now that the bill filing deadline has passed, the process of conducting public hearings on legislative proposals is in full swing. There are several monitored bills scheduled for hearing this week. I have also added two new bills to the list: HB 3646 (Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance) and HB 3697 (Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims). The added bills and those scheduled for hearing this week are denoted with an “++”.

The Week in Review

Of the monitored bills, public hearings occurred only for HB 1353 (Certificate of Merit) and HJR 38 (Term Limits for Certain Statewide Offices) last week. The status of HB 1353 and HJR 38 have been updated below.

The Week Ahead

The following ten (10) monitored bills are scheduled for public hearing this week:

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting

Parent-Child Relationship

HB 670 and HJR 32 - Application of Foreign Laws and Foreign Forum Selection in Texas

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

HB 1427 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

HB 1644 - Oath of Persons Admitted to Practice Law in Texas

HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

SB 824 - Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court

Monitored Legislation

The subject-matter groupings below that include new bills or bills scheduled for hearing have been marked with an “++”. The status of each bill has been updated below and, where appropriate, links to hearing notices, witness lists, bill analyses, video/audio broadcasts, and other related documents have been posted for each bill.

Appellate Procedure

Attorney's Fees/Fee Agreements++

Attorneys - Practice of Law++

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages

Deceptive Trade Practices Act

Decisions Based on Foreign Laws (Non-Family Law Proceedings)++

Defamation/Libel

Elections++

Evictions

Family Law++

Governmental Immunity

Health Care Liability

Insurance++

Judicial Selection

Judiciary/Court Administration++

Lawsuit Financing/Lending

Patent Infringement Claims

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions

Trial Court Procedure

Wrongful Birth/Life Causes of Action

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 230 begins around the 1:47:30 mark. HB 230 was voted out of committee on March 17, 2015.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

++HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

· Bill Status: Scheduled for public hearing in front of General Investigating & Ethics on March 26, 2015 at 10:30 a.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Attorneys – Practice of Law

++SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Status of SB 534: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill was unanimously voted out of committee on March 16, 2015 and has been placed on the intent calendar.

· Status of HB 1644: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 24, 2015 at 2:00 p.m. or upon adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

SB 765 - Repeal of Occupation Tax

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4, 2015) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas.

· Bill Status: Referred to State Affairs on March 18, 2015.

++ HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

· Bill Status: Referred to Higher Education on March 16, 2015. Scheduled for public hearing on March 24, 2015 at 8:00 a.m.. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Judiciary & Civil Jurisprudence conducted a public hearing on March 17, 2015. Here is the meeting agenda, witness list, and a link to the live broadcast of the hearing: Notice of Public Hearing House Archive Broadcasts Witness List. Testimony about HB 1353 begins around the 10:00 mark.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820 (Witness List). TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Status for HB 969: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

· Bill Status for SB 735: Referred to State Affairs on March 2, 2015.

Deceptive Trade Practices Act

HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

++ HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Status for HB 670: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 24, 2015 at 2:00 p.m. or upon adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

· Status of HJR 32: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 24, 2015 at 2:00 p.m. or upon adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Status for SB 627: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. The bill remains pending,

· Bill Analysis for SB 627: Senate Research Center

· Bill Status for HB 1766: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

Elections

++ HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but was never voted on by the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Status of HB 25: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 24, 2015 at 2:00 p.m. or upon adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth).

· Bill Status: Referred to Elections on March 16, 2015.

Evictions

HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Family Law

++ HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 24, 2015 at 2:00 p.m. or upon adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

· Status of SB 1090: Referred to State Affairs on March 16, 2015.

++ HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Scheduled for public hearing in front of Juvenile Justice & Family Issues on March 25, 2015 at 10:30 a.m. or upon adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Insurance Claims

SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

· Bill Status: Referred to Business & Commerce on March 17, 2015.

++ HB 3646 - Insurance Claims and Certain Prohibited Acts and Practices Relating to the Business of Insurance

· Summary: HB 3646, filed by Rep. John Smithee (R - Amarillo), would amend various sections of the Insurance Code to do, among other things, the following:

o The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.”

o An insurer would be “solely responsible” for any “unfair method of competition or an unfair or deceptive act or practice in the business of insurance” committed by an individual employed by the insurer as an adjuster or a third-party individual or entity engaged by the insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

o An insured seeking damages in an action against an insurer would be required to provide written notice to the insurer at least 61 days prior filing suit that includes a sworn statement that includes (1) the specific damage items and the amount alleged to be owed by the insurer; (2) the amount of the attorney’s fees the insured reasonably incurred in asserting the claim against the insurer; and (3) the amount that the insured will accept in full and final satisfaction of the claim. If the sworn statement included damage amounts sought by the insured not previously submitted to the insurer, the notice must contain: (1) a sworn statement signed by the insured stating the specific damage items, the amount alleged to be owed by the insured, and the reason the damage items were not previously submitted to the insurer; (2) copies of reports, estimates, photographs, and other items reasonably supporting the insured ’s additional damage items; (3) a statement that the insured will cooperate in allowing the insurer to inspect the insured property for purposes of investigating the additional damage items; (4) the amount of the attorney ’s fees the insured reasonably incurred in asserting the claim against the insurer; and (5) a stated amount that the insured will accept in full and final satisfaction of the claim.

o Establish a requirement in which a failure to provide requisite notice prior to filing suit would, in certain circumstances, be subject to dismissal.

o Establish a 2-year statute of limitations for providing notice to an insurer certain claims for damages to or loss of real property or tangible personal property.

++ HB 3697 - Texas Department of Insurance Study of Claims Data and Recovery of Attorney's Fees in First Party Claims

· Summary: HB 3697, filed by Rep. Brooks Landgraf (R - Odessa), would section 542.062 of the Insurance Code and limit the recovery of attorney's fees in first party insurance claims to an amount equal to the recoverable economic damages. Under HB 3697, the Department of Insurance would be required to research and evaluate claims data made in the past five years to compare and establish an understanding between first party claims made, legal actions filed by claimants to recover damages, and complaints made by claimants to the Department, if any.

· Bill Status: Referred to Insurance on March 19, 2015.

HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status for SB 455: Referred to State Affairs on February 9, 2015.

· Bill Status for HB 1091: Referred to Judiciary & Civil Jurisprudence on March 4, 2015.

++ SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Status of HB 1427: Scheduled for public hearing in front of General Investigating & Ethics on March 26, 2015 at 10:30 a.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1116: Referred to State Affairs on March 16, 2015.

· Status of HB 2822: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

SB 1970 - Increase of State Wide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

++ HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note: Legislative Budget Board

· Bill Status for HB 1122: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 1122 begins around the 2:00 mark. A committee substitute has voted out of committee on March 17, 2015, but has yet to be published.

· Bill Analysis for SB 824: Senate Research Center.

· Bill Status for SB 824: State Affairs has scheduled a public hearing on March 23, 2015 at 9:00 a.m.. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

++ HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Bill Status: Scheduled for public hearing in front of Business & Industry on March 24, 2015 at 2:00 p.m. or upon final adjournment/recess of the House. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 16, 2015.

HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals

Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HJR 62 begins around the 1:09 mark. HJR 62 was left pending.

· Status of HB 3932: Filed on March 13, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

Lawsuit Financing/Lending

HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

Patent Infringement Claims

SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

· Status of SB 1187: Referred to State Affairs on March 17, 2015.

SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement; However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

· Bill Status: Referred to State Affairs on March 19, 2015.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Status of SB 512: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archived Broadcasts. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196. The bill was unanimously voted out of committee on March 16, 2015 and placed on the intent calendar.

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Fiscal Note: Legislative Budget Board

· Bill Status for HJR 38: State Affairs conducted a public hearing on the bill on March 18, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HJR 38 begins around the 2:07:45 mark. The resolution was left pending.

Survival Actions

HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 17, 2015.

Trial Court Procedure

SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 241 begins around the 13:20 mark. The bill remains pending.

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Status of HB1692: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”

  

 
Legislative Update
March 15, 2015 

As expected, the floodgates opened last week as legislators filed just over 2,600 bills and joint resolutions in order to meet the bill filing deadline. As of last Friday, the total number of bills/resolutions filed this session reached 6,300. I am still in the process of reviewing the newly filed bills in greater detail, but I suspect that I’ve identified most of the bills that I intend to monitor (though I may add a few more upon request or upon further study).

The Week in Review

Committee Hearings

Last week, public testimony was taken on several monitored bills, including HB 230 (Recovery of Attorney’s Fees in Certain Civil Cases), HB 241 (Substitute Service of Citation through Social Media), HB 1122 (Number of Jurors in Statutory County Court Cases), and SB 512 (Promulgation of Probate Forms). The list below includes an update on each of these bills, as well as a link to the video stream, witness list, bill analysis, and other related documents that have been posted for each bill.

New Bills

Over twenty (20) bills have been added to the monitoring list this week. Instead of listing them individually here, I have added them to the list below and marked them with “++”. Also, in an attempt to make the updates a bit easier to peruse, I have added the following subject-matter links for those that prefer to go directly to a specific group of bills instead of having to scroll down the list. The subject-matter groups that include new bills have also been marked with an “++”.

Appellate Procedure

Attorney's Fees/Fee Agreements

Attorneys - Practice of Law++

Certificate of Merit

Collaborative Law

Constitutional Challenges to Texas Statutes

Construction Defect Claims

Damages++

Deceptive Trade Practices Act++

Decisions Based on Foreign Laws (Non-Family Law Proceedings)++

Defamation/Libel++

Elections++

Evictions++

Family Law++

Governmental Immunity

Health Care Liability

Insurance Claims++

Judicial Selection

Judiciary/Court Administration++

Lawsuit Financing/Lending++

Patent Infringement Claims++

Probate Court Proceedings

Product Liability Claims

Qualifications for Public Office/Term Limits

Survival Actions++

Trial Court Procedure++

Wrongful Birth/Life Causes of Action++

The Week Ahead

Of the monitored bills, only HB 1353 (Certificate of Merit) has been scheduled for hearing this week. The status of HB 1353 has been updated below and links to hearing notices and video broadcasts are provided. Now that the bill filing period has ended, committees in both the House and Senate will begin to hear and pass out bills for further consideration.

Monitored Bills

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision. The bill would further provide that the amendment to Chapter 38.001 does not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified either for or on the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 230 begins around the 1:47:30 mark. The bill remains pending.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will be deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will be “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory from making or receiving any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

· Bill Status: Referred to General Investigating & Ethics on March 10, 2015.

Attorneys – Practice of Law

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin), would amend section 82.037 of the Government Code and revise the oath taken by all attorneys admitted to practice law in Texas so as to require attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Status of SB 534: On March 2, 2015, State Affairs conducted a hearing on SB 534. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill remains pending.

· Status of HB 1644: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

SB 765 - Repeal of Occupation Tax

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals.

· Bill Analysis: Senate Research Center

· Fiscal Note: Legislative Budget Board

· Bill Status: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4, 2015) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the list of witnesses who testified about the bill: Witness List. The bill remains pending.

++ SB 1430 – Eligibility of Attorneys Licensed Outside of State to Take Bar Exam

· Summary: SB 1430, filed by Sen. Bob Hall (R - Rockwall), would amend the Government Code by adding section 82.025 and would permit an attorney licensed to practice law in another state to take the Texas bar examination regardless of whether the attorney has completed the study of law in an approved law school if the attorney: (1) is a United States citizen; and (2) satisfies all other requirements to be licensed in Texas.

++ HB 2624 - Effects of Default on a Student Loan Administered by Higher Education Coordinating Board on License Renewals

· Summary: HB 2624, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), would amend the Education Code to prevent licensed professionals (including licensed attorneys) who are in default on student loans administered by the Texas Higher Education Coordinating Board (THECB) from having their professional licenses renewed. Under the bill, THCEB would receive a list of licensees from the applicable licensing board/agency to determine if any of the licensees are in default on their loans and then send a default list back to the licensing board/agency. A person who was in default could enter a repayment plan with the THECB, at which time the licensing board/agency could still renew the license as long as the licensee was current on repayments. The licensing agency would have to provide a hearing before non-renewing a license. Under HB 2624, the licensing board/agency would create its own rules to carry out the bill's provisions. The bill specifically requires the Supreme Court to create the rules for non-renewing law licenses.

Certificate of Merit

HB 1353 - Certificates of Merit for Certain Professionals (Companion: SB 1579)

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would add a definition of “claimant” to CPRC section 150.001, which is the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.” The companion bill, SB 1579, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Status of HB 1353: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 17, 2015 at 2:00 p.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

Collaborative Law

HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is the legislative response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Damages

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

++ HB 820 - Liability for Damages Arising from Certain Motor Vehicle Accidents

· Summary: HB 820, filed by Rep. Ed Thompson (R - Pearland), would amend the CPRC by adding Chapter 72A, which would prevent an uninsured driver who was in a car accident from recovering exemplary and noneconomic damages in a lawsuit for bodily injury, death or property damage. The same prohibition would apply to derivative claims arising out of the accident, such as claims for wrongful death or loss of consortium or companionship. However, the prohibition would not apply to claims brought by the uninsured driver in a representative capacity (e.g., as next friend if the uninsured driver’s minor child was injured) or if the at-fault driver was driving drunk, acted willfully or was grossly negligent, had fled the scene, or was committing a felony when the accident happened.

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 3, 2015. There were numerous individuals and groups registered to testify both for and against HB 820 (Witness List). TTLA and Texas Watch provided oral testimony in opposition to the bill. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 820 begins around the 3:30 mark. A committee substitute was proposed, but the bill remains pending.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC and eliminate “the net worth of defendant” as one of the elements considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Status for HB 969: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

· Bill Status for SB 735: Referred to State Affairs on March 2, 2015.

Deceptive Trade Practices Act

++ HB 2898 - Relating to Certain DTPA Procedures, Civil Penalties, and Remedies

· Summary: HB 2898, filed by Rep. Sarah Davis (R - Houston), would amend sections 17.45(9) and (13) of the Business & Commerce Code in order to modify the definitions of “intentionally” and “knowingly” and certain portions of the provisions related to the consumer protection division of the AG’s office (i.e., sections 17.47, 17.60, and 17.61). More specifically, HB 2898 would (a) substitute the phrase “misleading nature” for the word “unfairness” in the “knowingly” definition in section 17.45(9); and (b) change the definition of “intentionally” to read as follows:

(13) "Intentionally" means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or misleading nature [unfairness] of the act or practice giving rise to the consumer ’s claim [,] or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer’s claim, coupled with the specific intent that the consumer act in detrimental reliance on the act, practice, condition, defect, or failure [falsity or deception or in detrimental ignorance of the unfairness]. Intention may be inferred from objective manifestations that indicate that the person acted intentionally or from facts showing that a defendant acted with flagrant disregard of prudent and fair business practices to the extent that the defendant should be treated as having acted intentionally.

The remaining changes specifically relate to the enforcement provisions applicable to the AG’s office.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Status for HB 670: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

· Status of HJR 32: Referred to Judiciary & Civil Jurisprudence on March 3, 2015.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation/Libel

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Status for SB 627: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying for and against the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. The bill remains pending,

· Bill Analysis for SB 627: Senate Research Center

· Bill Status for HB 1766: Filed on February 23, 2015.

++ HB 4116 - Defense to Libel Actions

· Summary: HB 4116, filed by Rep. Todd Hunter (R - Corpus Christi), would amend section 73.005 of the CPRC by adding subsections (b) and (c), which would result in section 73.005 reading as follows:

Sec. 73.005. TRUTH A DEFENSE. (a) The truth of the statement in a publication on which a libel action is based is a defense to the action. (b) Subject to subsection (c), it is a defense to a libel action that the publication accurately reported the allegations of a third party regarding a matter of public concern. (c) Subsection (b) does not apply if: (i) the publication was made with actual malice; and (ii) the fact that the allegation was made is not itself a matter of public concern.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices (Companion: SB 1702)

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but was never voted on by the full Senate. The companion bill, SB 1702, was filed by Sen. Joan Huffman (R - Houston).

· Status of HB 25: Referred to Judiciary & Civil Jurisprudence on March 3, 2015.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 5, 2015.

++ HB 2754 - Filing Requirements for Candidates for Certain Judicial Offices

· Summary: HB 2754, filed by Rep. Giovanni Capriglione (R - Southlake), would repeal sections 172.021(e) and (g) of the Elections Code, which would eliminate the petition requirement for certain judicial candidates. Specifically, under HB 2754, candidates for the following judicial offices would no longer have to include a petition with their application and fee to get on the general primary election ballot:

o Chief Justice or justice of the Supreme Court;

o Presiding Judge or judge of the Court of Criminal Appeals;

o Chief justice or justice of a court of appeals in an appellate district in which a county with a population of more than one million is wholly or partly situated;

o district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 1.5 million;

o judge of a statutory county court in a county with a population of more than 1.5 million; and

o justice of the peace in a county with a population of more than 1.5 million.

A similar (though not identical) bill (HB 3880) has been filed by Rep. Craig Goldman (R - Fort Worth).

Evictions

++ HB 3364 - Appeals of Eviction Suit Judgments

· Summary: HB 3364, filed by Rep. Mike Schofield (R - Houston), would amend section 24.007 of the Property Code to prohibit appeals of county court judgments in eviction suits on the issue of possession unless the premises in question are being used for residential purposes only. HB 3364 would add back in to section 24.007(a) the same language that was removed from the statute in 2011. The bill would also repeal section 24.007(b), which was enacted in 2011 and authorizes appeals of final judgments of a county court, statutory county court, statutory probate court, or district court in an eviction suit.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

++ SB 1090 - Application of Foreign Laws and Foreign Forum Selection in a Marriage/Divorce Proceeding or a Suit Affecting the Parent-Child Relationship (Companion Bill: HB 3943)

· Summary: SB 1090, filed by Sen. Bob Hall (R - Rockwall), is similar to HB 562 (discussed above). The primary difference between SB 1090 and HB 562 is that SB 1090 would amend the Family Code to strictly prohibit a court, arbitrator, or administrative adjudicator from basing a decision on a foreign law and from enforcing a contract provision involving a marriage or parent-child relationship that is based on a foreign law, regardless of whether the provision is substantive or procedural (i.e., forum selection or governing law clauses). SB 1090 does not limit the prohibition to only those instances in which the application of the foreign law violates a fundamental right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute. The companion bill, HB 3943, was filed by Rep. Matt Rinaldi (R - Irving).

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a disclosure form promulgated by the State Bar of Texas (SBOT); and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the SBOT may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Status: Referred to Juvenile Justice & Family Issues on March 3, 2015.

Governmental Immunity

HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of the CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644). It is the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed against an employer by an employee not covered by worker’s compensation insurance or the employee’s surviving spouse or heir.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

Insurance Claims

++ SB 1166 - Recovery of Damages for Delayed Payment of Certain Insurance Claims

· Summary: SB 1166, filed by Sen. Van Taylor (R - Plano), would amend the “Prompt Payment of Claims” section of the Insurance Code to provide additional instances in which an insurer would not be liable for damages due to a delay in paying on a first party claim. Under SB 1166, the damages-for-delay provisions would not apply if: (1) the amount of damages awarded as a result of arbitration or litigation is less than 80 percent of a settlement offer (as defined by section 42.001 of the CPRC) made by an insurer and rejected by the claimant; (2) a claimant fails to provide an affidavit of damages as defined by SB 1166; or (3) the insurer pays to the claimant the amount of damages awarded as a result of an appraisal no later than the 15th business day after the date the damages are awarded in the appraisal.

The “affidavit of damages” provisions in SB 1166 would require a claimant to provide an insurer with an affidavit containing the dollar amount of all damages the claimant intends to seek in a suit no later than the 30th day before the date the claimant commences the suit against the insurer. However, if a claimant ultimately seeks damages that exceed the amount in the claimant’s affidavit, the claimant would be required to provide the insurer with written notice of the excess amount by affidavit no later than the 15th day before the date the claimant files a pleading seeking the excess amount.

Under SB 1166, a claimant could also file a claim seeking damages as a “small claims case” (as provided by section 27.060 of the Government Code) if the disputed amount of the insurance claim does not exceed the maximum amount allowed for a small claims case as determined by the Texas Rules of Civil Procedure. However, the total amount awarded in an action filed as a small claims case may not exceed two times the disputed amount of the claim. If a suit seeking damages is filed as a small claims case as provided by the Government Code, an insurer may elect to waive the insurer’s right to appeal no later than the 15th day after the date the suit is filed against the insurer.

Finally, SB 1166 would also amend section 542.060 of the Insurance Code to modify the damages provisions of that section. In addition to paying the amount of the claim, an insurer would be liable for interest only on the “disputed amount” of the claim, for reasonable and necessary attorney’s fees, and, in small claims cases, for court costs if the insurer did not waive its right to appeal any judgment entered in the small claims case. SB 1166 would also add the following to the damages section of the “Prompt Payment of Claims” section of the Insurance Code: (1) the court will determine the amount of attorney’s fees awarded, but the amount of attorney’s fees must bear a reasonable relationship to the damages awarded by the trier of fact based on the disputed amount of the claim; (2) any interest awarded would begin to accrue on the date the claimant provided the affidavit of damages; and (3) an attorney cannot share attorney’s fees awarded with the claimant.

++ HB 3822 - Recovery under Uninsured/Underinsured Insurance Coverage

· Summary: HB 3822, filed by Rep. Garnet Coleman (D - Houston), would amend the Insurance Code by adding provisions that prohibit an insurer from requiring, as a prerequisite to asserting an uninsured/underinsured motorist claim, a judgment or other legal determination establishing the other motorist's liability or uninsured/underinsured status. Further, a judgment or other legal determination would not be a prerequisite to asserting a claim for unfair/deceptive acts or practices or for violations of the prompt payment of claims provisions of the Insurance Code. Under HB 3822, an insurer would be required to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim once liability and damages have become reasonably clear.

Also, under HB 3822, prejudgment interest would begin to accrue on the earlier of: (1) the 180th day after the date the claimant notifies the insurer of the claim; or (2) the date on which suit is filed against the insurer to recover uninsured/underinsured motorist benefits. Further, for purposes of recovering attorney's fees under section 38.002 of the CPRC, a claim for uninsured/underinsured motorist coverage would be considered presented when the insurer receives notice of the claim.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a five (5) members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The preliminary House and Senate budgets for 2016 and 2017 included slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that included (1) additional funds for the Supreme Court to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. A Senate Finance subcommittee has also accepted the Supreme Court’s and intermediate appellate courts’ request for these additional funds.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status for SB 455: Referred to State Affairs on February 9, 2015.

· Bill Status for HB 1091: Referred to Judiciary & Civil Jurisprudence on March 4, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals. The commission would be required to make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Status of SB 524: Referred to Business & Commerce on February 18, 2015.

· Status of HB 1427: Referred to General Investigating & Ethics on March 10, 2015.

++ SB 967 - Authority of a District Clerk to Collect Fees for Providing Electronic Copies of Certain Court Records

· Summary: SB 967, filed by Sen. Paul Bettencourt (R - Houston), would amend section 51.318 of the Government Code to prohibit a district clerk from charging a fee for noncertified electronic copies of any electronic document on file or of record in the clerk’s office, unless the copy is provided in a bulk distribution.

· Bill Status: Referred to State Affairs on March 10, 2015.

++ SB 1116 - Notices or Documents Sent by Mail or Email by a Court, Court Clerk, or Judge (Companion: HB 2822)

· Summary: SB 1116, filed by Sen. Royce West (D - Dallas), would amend the Government Code to authorize a “court, justice, judge, magistrate, or clerk” to send any notice or document using mail or electronic mail and would apply to all civil and criminal statutes requiring delivery of a notice or document. However, authorized methods of delivery of electronic mail would not include facsimiles, instant messaging, messages on a social network website (including Facebook and Twitter), telegraphs, telephone messages, text messages, videoconferencing, voice messages, or webcams. The companion bill, HB 2822, was filed by Rep. John Smithee (R - Amarillo).

++ SB 1970 - Increase of State Wide Electronic Filing Fees

· Summary: SB 1970, filed by Sen. Joan Huffman (R - Houston), would raise the statewide electronic filing system fund fee collected by various courts from $20 to $30.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion the districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing of jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Fiscal Note: Legislative Budget Board

· Bill Status for HB 1122: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 1122 begins around the 2:00 mark. A committee substitute has been proposed, but has yet to be published. The bill remains pending.

· Bill Status for SB 824: Referred to State Affairs on March 3, 2015.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), would create a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by the parties and the court. Some of the other notable components of the bill are:

o The chancery court would be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges would be selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and would be required to have at least 10 years of experience in complex business law.

o The court clerk would be located in Travis County, but individual judges would be based in the county seat of their respective counties.

o Current venue rules would apply, but cases could be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which would handle appeals from the chancery trial court, would be composed of seven (7) justices from current court of appeals justices that are appointed by the governor based on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3) randomly-selected justices. Appeals from the CCA would go to the Supreme Court.

· Bill Status: Referred to Business & Industry on March 9, 2015.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) and died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate could begin receiving distributions from the fund and could no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

· Bill Status: Referred to Elections on March 9, 2015.

++ HB 2730 - Creation of Fifteenth District Court of Appeals

· Summary: HB 2370, filed by Rep. Phil Stephenson (R - Rosenberg), would create the Fifteenth District Court of Appeals, which would sit in Edinburg and be composed of Cameron, Hidalgo, and Willacy counties. The court would consist of three (3) justices. Under HB 2370, the number of justices on the Thirteenth District Court of Appeals would be reduced to three (3) justices.

++ HB 3426 - Jurisdiction of Statutory County Courts at Law

· Summary: HB 3426, filed by Rep. Gilbert Pena (R - Pasadena), would amend section 25.0003(c)(1) of the Government Code and modify the jurisdiction of statutory county courts at law in the following manner:

“civil cases in which the matter in controversy exceeds $500 but does not exceed $200,000, excluding interest [, statutory or punitive damages and penalties, and attorney ’s fees and costs, as alleged on the face of the petition].”

In other words, under HB 3426, statutory or punitive damages, attorney’s fees, and costs would be included in determining the amount in controversy for purposes of determining jurisdiction.

++ HB 3430 - Jurisdiction of Supreme Court and Court of Criminal Appeals

· Summary: HB 3430, filed by Rep. Mike Schofield (R - Houston), would amend Chapter 22 of the Government Code and essentially require that the Supreme Court be given an opportunity to review any constitutional rulings by the Court of Criminal Appeals before the rulings became final and effective. More specifically, HB 3430 would add the following sections 22.1025 and 22.002(f) to the Government Code:

Sec. 22.1025: “(a) Any ruling by the court of criminal appeals that any statute, rule, or procedure violates either the state or federal constitutions shall not be final and shall have no effect until the later of: (1) 60 days following the ruling; or (2) The denial or dismissal of a petition filed in the supreme court pursuant to Section 22.002(f) of the Government Code.”

Section 22.002(f): “Whenever the court of criminal appeals determines that a statute, rule, or procedure is unconstitutional, the supreme court, on the petition of the attorney general or a district or county attorney, has original civil jurisdiction to issue writs of quo warranto and mandamus to correct any error in the court of criminal appeals ’ determination.” Section 22.002(f) would apply regardless of whether (1) the CCA rules under the Texas Constitution, U.S. Constitution, or both; (2) the constitutional ruling by the CCA is characterized as criminal or civil; or (3) the ruling by the CCA is characterized as final or non-final.

++ HJR 62 - Constitutional Amendment Regarding the Recording and Publication of Certain Supreme Court and Court of Criminal Appeals

Proceedings (Related Bill: HB 3932)

· Summary: HJR 62, filed by Rep. Rep. Terry Canales (D- Edinburg), would amend the Texas Constitution and require the Supreme Court and Court of Criminal Appeals to make a video recording (or other electronic visual and audio recording) of each oral argument, proceeding, and open meeting of each court and post the recording on each court’s website. Rep. Canales subsequently filed HB 3932 to correct some of the issues raised by the Judiciary & Civil Jurisprudence during the March 10th hearing on HJR 62 (discussed below).

· Fiscal Note: Legislative Budget Board

· Status of HJR 62: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. Although no witnesses testified against the concept, there was much discussion about the scope of the resolution (e.g., whether “proceedings” would encompass internal conferences, etc.) and whether a constitutional amendment was the correct vehicle to impose the recording requirement. The Supreme Court already records oral argument and other public meetings and posts the recordings on its website, so much of the discussion centered around the CCA. For those interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HJR 62 begins around the 1:09 mark.

· Status of HB 3932: Filed on March 13, 2015.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

Lawsuit Financing/Lending

++ HB 3454 - Assignment of Rights in an Individual's Legal Claim

· Summary: HB 3454, filed by Rep. Senfronia Thompson (D - Houston), seeks to regulate “civil justice funding” transactions and “civil justice funding companies,” and would permit a civil justice funding company to enter into a “non-recourse transaction in which [the] civil justice funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim” provided that the transaction is documented via a written contract that complies with the requirements set forth in the statute. The bill specifies that a civil justice funding transaction may not be considered a loan or subject to state laws governing loans (including limits on interest rates). A similar bill (HB 1254) was filed by Rep. Thompson in 2013, but it died in committee.

++ HB 3218 - Litigation Finance Agreements

· Summary: HB 3218, filed by Rep. Anna Hernandez (D - Houston), would add Chapter 354 to the Finance Code and establish statutory requirements for “litigation financing agreements.” Under HB 3218, a litigation financing agreement would be defined as an agreement under which “money is provided to or on behalf of a consumer by a litigation financing company for a purpose other than prosecuting the consumer’s legal claim” and “the repayment of the money is in accordance with a litigation financing transaction the terms of which are included as part of the litigation financing agreement.”

HB 3218 would require litigation financing agreements to: (1) be in writing; (2) contain the initials of the consumer on each page; and (3) be “otherwise complete” when presented to the consumer for signature. Other required terms and disclosures, which must be on the front page of the agreement under appropriate headings, would include the following: (1) the funded amount to be paid to the consumer by the litigation financing company; (2) an itemization of one-time charges; (3) the total amount to be assigned by the consumer to the company, including the funded amount and all charges; and (4) a payment schedule that: (a) includes the funded amount and charges; and (b) lists all dates and the amount due at the end of each 180-day period from the funding date until the due date of the maximum amount due to the company by the consumer to satisfy the amount owed under the agreement.

A similar bill (HB 1595) was voted out of committee last session, but was never voted on by the entire House.

Patent Infringement Claims

++ SB 1187 - Patent Infringement Claims (Companion: HB 3176)

· Summary: SB 1187, filed by Sen. Van Taylor (R - Plano), would add Chapter 2005 to the Business & Commerce Code and prohibit bad faith patent infringement claims. More specifically, SB 1187 would prohibit a person from sending a demand letter that makes, in bad faith, a claim of patent infringement against a Texas resident, and in connection with the claim: (1) files a lawsuit alleging patent infringement; (2) threatens to file a lawsuit if the alleged patent infringement is not resolved; or (3) makes a demand for compensation or damages or payment of a license fee based on the alleged patent infringement. For purposes of SB 1187, a person makes a claim of patent infringement in bad faith if: (1) the claim is objectively baseless, meaning that no reasonable litigant could reasonably expect success on the merits; and (2) the person making the claim knows or should have known that the claim is objectively baseless. However, a claim of patent infringement would be presumed to be made in good faith if the claim is made by a person who holds a certificate of authority issued by the Attorney General under Chapter 2005 or is a claim for relief arising under federal law.

SB 1187 would not create a private cause of action, but would authorize the Attorney General to enforce any violations of Chapter 2005. The bill would also create two information databases-- one for persons sending demand letters and another for the demand letters themselves, both of which would be maintained by the Secretary of State.

The companion bill, HB 3176, was filed by Rep. John Smithee (R - Amarillo).

++ SB 1457 - Bad Faith Patent Infringement Claims

· Summary: SB 1457, filed by Sen. Robert Nichols (R - Jacksonville), would amend the Business and Commerce Code by adding an additional subchapter to the DTPA entitled "Bad Faith Claims of Patent Infringement." Like SB 1187/HB 3176, the bill would prohibit bad faith claims of patent infringement; However, unlike SB 1187/HB 3176, SB 1457 would define a bad faith claim as one that includes an allegation of infringement and (a) falsely states that the sender has filed a lawsuit in connection with the claim; (b) the claim is objectively baseless; and (c) the communication is likely to materially mislead the recipient because it does not include the identity of the person asserting the claim, the patent that is alleged to have been infringed, and at least one product, service or activity that is alleged to infringe. Under SB 1457, "objectively baseless" would mean that (a) the sender does not have a current right to license the patent or to enforce the patent; (b) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (c) the infringing activity occurred after the patent expired.

SB 1457 would authorize the Attorney General to bring an action if it believes that the prohibition against bad faith claims of patent infringement has been violated. The Attorney General could also seek injunctive relief and a civil penalty not to exceed $50,000 for each violation as well as reimbursement to the State of Texas of the “reasonable value of investigating and prosecuting a violation” and restitution to the victim for “legal and professional expenses related to the violation.”

The bill specifically states that it would not prohibit a person with rights to license and enforce a patent from notifying others of their ownership, offering it for license, notifying any person of infringement under federal law, or seeking compensation for past or present infringement or for license to the patent. Finally, SB 1457 also provides that the knowing institution of a suit or claim for patent infringement that constitutes a bad faith claim of patent infringement under the DTPA would be a Class A misdemeanor.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court to promulgate appropriate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Status of SB 512: State Affairs conducted a public hearing on the bill on March 9, 2015. Those who testified about the bill are listed here: Witness List. For those who are interested in listening to the proceedings, here is a link to the archived broadcast (audio only) of the hearing: Senate Archived Broadcasts. Testimony about SB 512 begins around the 2:16 mark. A committee substitute was offered to make the bill identical to HB 2196.

· Status of HB 2196: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045 to the CPRC and provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Bill Status for HJR 38: Referred to State Affairs on March 3, 2015.

Survival Actions

++ HB 3416 - Authority of Certain Persons to Bring a Survival Action

· Summary: HB 3416, filed by Rep. Larry Phillips (R - Sherman), would amend section 71.021 of the CPRC by adding the following section (b-1): “A legal representative of the estate of the injured person may bring the action or, if no action is filed by a legal representative of the estate, one or more heirs may bring the action for the benefit of all heirs and the estate of the injured person.”

Trial Court Procedure

++ SB 1534 – Venue in Lawsuits Filed Against the State of Texas or State Agency

· Summary: SB 1534, filed by Rep. Konni Burton (R - Colleyville), would amend the CPRC to add section 15.021, which would provide that a lawsuit against the State of Texas or a state agency may be brought in either Travis County or “a county in which the court of appeals is held for a court of appeals district that includes the county in which the plaintiff: (a) resided at the time of the accrual of the cause of action; or (b) resides at the time the suit is brought.”

HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would add section 17.302 to the CPRC and permit a court to authorize service of process via electronic communication through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would also require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Fiscal Note: Legislative Budget Board

· Bill Status: Judiciary & Civil Jurisprudence conducted a public hearing on March 10, 2015. There was a considerable amount of discussion about the appropriateness of serving a defendant via social media. Those who testified for and against the bill are listed here: Witness List. For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: House Archived Broadcasts. Testimony about HB 241 begins around the 13:20 mark. The bill remains pending.

HB 1692 - Doctrine of Forum Non Conveniens (Companion: SB 1942)

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) of the CPRC and provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.” The companion bill (SB 1942) was filed by Sen. Joan Huffman (R - Houston).

· Status of HB1692: Referred to Judiciary & Civil Jurisprudence on March 12, 2015.

HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 and require a court to transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 13, 2015.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 9, 2015.

++ HB 3008 - Elimination of Wrongful Birth Cause of Action

· Summary: HB 3008, filed by Rep. Ron Simmons (R - Carrollton), would amend the CPRC to expressly prohibit a cause of action and damages arising on a claim that “but for the act or omission of another, a person would not have been permitted to have been born alive but would have been aborted.”



Legislative Update
March 8, 2015

We are entering the home stretch in terms of bill filing. Legislators have until this Friday, March 13th, to file new bills. As of last Friday, the bill/resolution count had reached 3,699, which is only 80 or so ahead of the pace set by the 82nd Legislature in 2011 and over 400 more than the 83rd Legislature had filed at the same point during those two sessions. If the past two sessions are any indication, it would not be surprising to see between 2,250 and 2,750 bills and resolutions filed this week. So, let the good times roll!

The Week in Review

Committee Hearings

Last week, public testimony was taken on several bills that we’ve been tracking, including SB 534 (Attorney’s Oath), SB 627 (Amendment to Defamation Mitigation Act), and SB 765 (Repeal of the Occupation Tax). The list below includes an update on each of these bills, as well as a link to the video stream, witness list, bill analysis, and other related documents that have been posted for each bill.

New Bills

Several note-worthy civil justice-related bills have been added to the tracking list this week. They are as follows: (1) HB 241, which would permit substitute service of citation through social media; (2) SB 765, which would repeal numerous occupation taxes (including the attorney tax); (3) HB 1353, which would amend definitions in the certificate of merit statute; (4) HB 1784, which relates to construction defect claims and would extend the statute of repose to certain classes of individuals; (5) HB 2211, which would amend the venue statute as it relates to agreed-upon venue in civil actions; (6) HB 2375, which would amend the Texas Tort Claims Act to expand negligence liability for governmental entities; and (7) HB 2512, which would provide for the adoption of a uniform collaborative law act. The aforementioned bills have been added to the list below and are denoted with “++”.

Also, several bills have been scheduled for hearing this week (e.g., HB 230 – Recovery of Attorney’s Fees in Certain Civil Cases; HB 241 – Substitute Service of Citation through Social Media; HB 1122 – Number of Jurors in Statutory County Court Cases; and SB 512 – Promulgation of Probate Forms). Where applicable, the status of each bill has been updated below and links to hearing notices and video broadcasts are provided.

Monitored Bills

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

Attorneys

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin) but joined by multiple other senators, would amend section 82.037 of the Government Code and the oath taken by all attorneys admitted to practice law in Texas so as to require to attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Bill Status for SB 534: State Affairs conducted a hearing on SB 534 on March 2, 2015. All who appeared before the committee, including representatives from the Texas Trial Lawyers Association (TTLA), the Texas Association of Defense Counsel (TADC), and the Texas Chapters of the American Board of Trial Advocates (TEX-ABOTA), testified in support of the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 534 begins around the 44:55 mark. The bill remains pending.

++ SB 765 - Repeal of Occupation Tax

· Summary: SB 765, filed by Sen. Kevin Eltife (R - Tyler), would repeal the $200 annual attorney occupation tax, as well as other occupation taxes on licensed professionals.

· Bill Analysis: Senate Research Center

· Bill Status: Senate Finance conducted a hearing on many “tax relief” bills, including SB 765, on March 3, 2015. Public testimony was taken on March 4, 2015. For those who are interested in watching the proceedings, here is a link to the archived broadcasts of the hearings: Senate Archived Broadcasts (March 3rd) and Senate Archived Video (Public Testimony - March 4, 2015) . Testimony about SB 765 at the March 3rd hearing begins around the 10:45 mark; public testimony at the March 4th hearing begins around the 1:19:20 mark. Here is the Fiscal Note and Witness List for SB 765. The bill remains pending.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision of the state. The bill would further provide that the amendment to Chapter 38.001 would not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

· Bill Status: Scheduled for public hearing in front of House Judiciary and Civil Jurisprudence on March 10, 2015 at 2:00 p.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

· Bill Status: Referred to House Judiciary and Civil Jurisprudence on March 5, 2015.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory may not make or receive any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

Certificate of Merit

++ HB 1353 - Certificates of Merit for Certain Professionals

· Summary: HB 1353, filed by Rep. Charlie Geren (R - Fort Worth), would amend CPRC §150.001 to add a definition of “claimant” to the statute that requires a person to file an affidavit of a third-party licensed architect, engineer, landscape architect, or land surveyor with a claim for damages arising out of the provision of professional services by a licensed or registered professional. For purposes of the statute, “claimant” would mean a party, including a plaintiff, counter-claimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. The current statute uses only the undefined term “plaintiff.”

Collaborative Law

++ HB 2512 - Adoption of the Uniform Collaborative Law Act

· Summary: HB 2512, filed by Rep. Bill Zedler (R - Arlington), would add Chapter 160 to the CPRC and adopt the Uniform Collaborative Law Act in order to clarify rules about the mechanics of collaborative law. Collaborative law is a voluntary process that is intended to provide for a form of limited scope representation in which an attorney is retained solely for the purpose of reaching a settlement, and expressly not for the purpose of litigation.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is likely in response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Construction Defect Claims

++ HB 1784 - Construction Defect Claims

· Summary: HB 1784, filed by Rep. Paul Workman (R - Austin), would amend section 41.015 of the CPRC to establish a 10-year statute of repose for construction defect claims against the person who actually designed, administered, constructed, or repaired an improvement to real property. The statute of repose would apply only to the actual costs incurred in curing a construction defect and the amount of damages for cost to cure would be reduced by 10% on each anniversary date of substantial completion of the construction of repair that occurs before the date the action is filed. An award of exemplary damages, multiplied damages, or other damages computed on the basis of the amount of damages for the cost to cure the defect would have to reflect any reduction made under section 41.015.

Damage Awards

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

· Bill Status for HB 969: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

· Bill Status for SB 735: Referred to State Affairs on March 2, 2015.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas (Related Constitutional Amendment: HJR 32)

· Summary: HB 670 and HJR 32, filed by Rep. Dan Flynn (R - Canton), are similar to bills and related resolutions filed in 2011 and 2013 that failed to pass. HB 670 and HJR 32 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Status for HB 670: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

· Status of HJR 32: Referred to Judiciary & Civil Jurisprudence on March 3, 2015.

HB 828 - Application of Foreign or International Laws or Doctrines

· Summary: HB 828, filed by Rep. Bill Zedler (R - Arlington), would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on either “a foreign or international law or doctrine” or “a prior ruling or decision that was based on a foreign or international law or doctrine.” HB 828 would also require a court to “uphold and apply the Constitution of the United States, the constitution of this state, federal laws, and the laws of this state, including the doctrine that is derived from the First Amendment to the United States Constitution and known as the church autonomy doctrine.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 23, 2015.

Defamation Mitigation Act

SB 627 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: HB 1766)

· Summary: SB 627, filed by Sen. Joan Huffman (R - Houston), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (HB 1766) was filed by Rep. Todd Hunter (R - Corpus Christi).

· Bill Status for SB 627: State Affairs conducted a public hearing on March 2, 2015. There were numerous individuals and groups testifying both for and against the bill (Witness List). For those who are interested in watching the proceedings, here is a link to the archived broadcast of the hearing: Senate Archived Broadcasts. Testimony about SB 627 begins around the 1:35:55 mark. The bill remains pending,

· Bill Analysis for SB 627: Senate Research Center

· Bill Status for HB 1766: Filed on February 23, 2015.

Elections

HB 25 - Elimination of Straight Ticket Voting for Judicial Offices

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas), would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but was never voted on by the full Senate.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 3, 2015.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would a require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a certain disclosure form promulgated by the State Bar of Texas; and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the State Bar of Texas may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

· Bill Status: Referred to Juvenile Justice & Family Issues on March 3, 2015.

Governmental Immunity

++ HB 2375 - Liability of a Governmental Unit for Personal Injury and Death Caused by the Governmental Unit’s Negligence

· Summary: HB 2375, filed by Rep. Harold Dutton, Jr. (D - Houston), would amend section 101.021(2) of CPRC and waive immunity under the Texas Tort Claims Act (TTCA) for acts of employees that cause personal injury or death due to “the negligence of the governmental unit” if the governmental unit would otherwise be liable if it were a private person. Under HB 2375, negligence arising from “a condition or use of tangible personal or real property” would be eliminated from the TTCA.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

· Bill Status: Referred to Judiciary & Civil Jurisprudence on March 2, 2015.

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed by against an employer by an employee not covered by worker’s compensation insurance or the employee ’s surviving spouse or heir.

Judicial Selection

HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a 5 members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The House and Senate have released preliminary budgets for 2016 and 2017 that would include slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

Following the recommendations of the House Appropriations Subcommittee on Articles I, IV & V, the full Appropriations Committee adopted the Subcommittee's Recommendations that (1) the Supreme Court receive additional funds to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims and (2) the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. The Senate Finance Committee has yet to make a decision.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status for SB 455: Referred to State Affairs on February 9, 2015.

· Bill Status for HB 1091: Referred to Judiciary & Civil Jurisprudence on March 4, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals and make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Bill Status: Referred to Business & Commerce on February 18, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount of in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing a jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

· Bill Status for HB 1122: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 10, 2015 at 2:00 p.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

· Bill Status for SB 824: Referred to State Affairs on March 3, 2015

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), creates a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by parties and the court. Some of the other notable components of the bill are:

o The chancery court will be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges are selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and must have at least 10 years of experience in complex business law.

o Court clerk will be located in Travis County, but individual judges will be based in the county seat of their respective counties.

o Current venue rules will apply, but cases may be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which handles appeals from the chancery trial court, will be composed of seven (7) justices from current court of appeals justices that are appointed by the governor base on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3), which are selected randomly. Appeals from the CCA would go to the Supreme Court.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) that died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate may begin receiving distributions from the fund and may no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court, as the Court considers appropriate, to promulgate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2) the probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals. A similar, though not identical, bill (HB 2196) has been filed in the House by Rep. Senfronia Thompson (R - Houston).

· Bill Analysis: Senate Research Center

· Bill Status: Scheduled for public hearing in front of State Affairs on March 9, 2015 at 9:00 a.m.. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts.

Product Liability Claims

HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045, which would provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, which is another piece of legislation filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

· Bill Status for HJR 38: Referred to State Affairs on March 3, 2015.

Trial Court Procedure

++ HB 241 - Substituted Service of Citation Through Social Media

· Summary: HB 241, filed by Rep. Jeff Leach (R - Plano), would amend the CPRC and add section 17.302 to permit a court to authorize service of process via electronic communication sent to a defendant through a “social media presence” if substituted service is authorized under the Texas Rules of Civil Procedure. HB 241 would require the Supreme Court to promulgate rules to provide for substituted service through social media. Rep. Leach filed a similar bill in 2013 (HB 1989), but it died in committee.

· Bill Status: Scheduled for public hearing in front of Judiciary & Civil Jurisprudence on March 10, 2015 at 2:00 p.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing House Live Broadcasts.

HB 1692 - Doctrine of Forum Non Conveniens

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) to provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.”

++HB 2211 - Agreed Venue Selection in Civil Actions

· Summary: HB 2211, filed by Rep. John Wray (R - Waxahachie), would amend CPRC section 15.020 to require a court transfer an action to another county if the parties consent to the transfer and the motion to transfer is filed before trial begins.

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

 

 
Legislative Update
March 1, 2015

We are now ten (10) days away from the deadline to file new bills, which means there has been (and will continue to be) a noticeable uptick in the number of bills filed each day. On Friday, the bill/resolution count reached 2,989.

The Week in Review

Appellate Court Budgets – House Appropriations/Article IV Subcommittee

Last week, the House Appropriations Subcommittee on Articles I, IV & V recommended to the full Appropriations Committee that the Supreme Court receive additional funds to provide raises for legal staff and to provide basic civil legal services to veterans and sexual assault victims. The Subcommittee also recommended that the Appropriations Committee grant the intermediate appellate courts’ request for the additional $6.4 million dollars needed to fund the remaining half of the “similar funding for same size courts” block grant. On Wednesday, the Appropriations Committee adopted those recommendations. Here are the recommendations for the judiciary: Subcommittee Recommendations.

New Bills

There were four (4) new civil justice-related bills filed last week that are worthy of tracking. They are as follows: (1) HB 25, which would eliminate straight ticket voting for judicial offices; 2) HB 1766/SB 627, which would amend the Defamation Mitigation Act to add the publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations to the list of publications that are privileged and not grounds for a libel action; 3) HB 1988, which would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product; and 4) HB 2088, which would create a joint interim committee on judicial selection to study and review the method by which district and appellate justices/judges are selected for office. The aforementioned bills have been added to the list below and are denoted with “++”.

Also, several bills were referred to committee last week while others have been scheduled for hearing this week (e.g., SB 534 - Attorney’s Oath and SB 627 – Amendment to Defamation Mitigation Act). Where applicable, the status of each bill has also been updated and links provided to hearing notices and to video broadcasts.

Monitored Bills

Appellate Procedure

HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision of the state. The bill would further provide that the amendment to Chapter 38.001 would not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

Bill Status: Referred to House Judiciary and Civil Jurisprudence on February 10, 2015.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory may not make or receive any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

Attorney’s Oath

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companions: HB 1644; HB 1909)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin) but joined by multiple other senators, would amend section 82.037 of the Government Code and the oath taken by all attorneys admitted to practice law in Texas so as to require to attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” Companion bills, HB 1644 and 1909, were filed by Rep. John Smithee (R - Amarillo) and Rep. Todd Hunter (R - Corpus Christi) respectively.

· Bill Analysis: Senate Research Center

· Bill Status for SB 534: Scheduled for public hearing in front of State Affairs on March 2, 2015 at 9:00 a.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is likely in response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Damage Awards

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages (Companion: SB 735)

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.” The companion bill, SB 735, was filed by Sen. Troy Fraser (R - Horseshoe Bay).

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

· Summary: HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

Defamation Mitigation Act

++ HB 1766 - Relating to Certain Publications that are Privileged and Not Grounds for a Libel Action (Companion: SB 627)

· Summary: HB 1766, filed by Rep. Todd Hunter (R - Corpus Christi), would amend Chapter 73 of the CPRC (Defamation Mitigation Act) to add the “publication of allegations made by a third party regarding matters of public concern, regardless of the truth or falsity of the allegations” to the list of publications that are privileged and not grounds for a libel action. It would also add the follows sections: “[t]his section does not abrogate or lessen any other defense, remedy, immunity, or privilege available under other constitutional, statutory, case, or common law or rule provisions” and “[t]his section shall be construed liberally to effectuate its purpose and intent fully.” The companion bill (SB 627) was filed by Sen. Joan Huffman (R - Houston).

· Bill Status for SB 627: Scheduled for public hearing in front of State Affairs on March 2, 2015 at 9:00 a.m. Here is the meeting notice and a link to the live broadcast of the hearing: Notice of Public Hearing Senate Live Broadcasts.

· Bill Analysis for SB 627: Senate Research Center

Elections

++ HB 25 - Elimination of Straight Ticket Voting for Judicial Offices

· Summary: HB 25, filed by Rep. Kenneth Sheets (R - Dallas) , would eliminate straight ticket voting for judicial offices. HB 25 is virtually identical to SB 103 filed last session, which was voted out of committee but was never voted on by the full Senate.

HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)*

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

· Bill Status for HB 562: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 26, 2015.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would a require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a certain disclosure form promulgated by the State Bar of Texas; and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the State Bar of Texas may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed by against an employer by an employee not covered by worker’s compensation insurance or the employee ’s surviving spouse or heir.

Judicial Selection

++ HB 2088 - Interim Study Regarding the Method by Which Judges and Justices are Selected

· Summary: HB 2088, filed by Rep. Justin Rodriguez (D - San Antonio), would create a joint interim committee on judicial selection (consisting a 5 members from both the House and Senate) to study and review the method by which district and appellate justices/judges are selected for office. The joint committee would be required to report its findings and recommendation to the governor, lieutenant governor, and speaker of the House by January 6, 2017. HB 2088 is similar to HB 2772 that passed last session and was signed by Governor; however, the joint committee never met and a report was never generated.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The House and Senate have released preliminary budgets for 2016 and 2017 that would include slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals and make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Bill Status: Referred to Business & Commerce on February 18, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

· Bill Status for HB 427: Referred to Redistricting on February 16, 2015.

· Bill Status for HJR 49: Referred to Redistricting on February 26, 2015.

HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court (Companion: SB 824)

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount of in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing a jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located. The companion bill (SB 824) was filed by Sen. Joan Huffman (R - Houston).

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), creates a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by parties and the court. Some of the other notable components of the bill are:

o The chancery court will be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges are selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and must have at least 10 years of experience in complex business law.

o Court clerk will be located in Travis County, but individual judges will be based in the county seat of their respective counties.

o Current venue rules will apply, but cases may be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which handles appeals from the chancery trial court, will be composed of seven (7) justices from current court of appeals justices that are appointed by the governor base on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3), which are selected randomly. Appeals from the CCA would go to the Supreme Court.

HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) that died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate may begin receiving distributions from the fund and may no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court, as the Court considers appropriate, to promulgate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2)Athe probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals.

· Bill Status: Referred to State Affairs on February 11, 2015.

Product Liability Claims

++ HB 1988 - Liability of Manufacturers and Sellers for Misuse of Products

· Summary: HB 1988, filed by Rep. Drew Springer (R - Gainesville), would amend Chapter 82 of the CPRC to address the liability of a product manufacturer or seller for the subsequent misuse of a product. More specifically, the bill would add section 82.0045, which would provide that, in a products liability action, a manufacturer or seller would not be liable “for any claim arising out of harm caused by misuse of a product by a person other than the manufacturer or seller.” HB 1988 would also allow the court to, on its own motion and after reasonable notice to the parties, dismiss a claim filed after September 1, 2015, “if the court finds by a preponderance of the evidence that the claim was caused by misuse of a product by a person other than the manufacturer or the seller.”

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, which is another piece of legislation filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

Trial Court Procedure

HB 1692 - Doctrine of Forum Non Conveniens

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) to provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.”

Wrongful Life/Birth Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

 


Legislative Update
February 22, 2015 

Last week was another busy one for the judiciary and those keeping tabs on civil justice system filings as Chief Justice Nathan Hecht formally addressed the Legislature for the first time as Chief Justice; the appellate courts justices went through another budget hearing (this time in the House); and additional legislative proposals were placed in the pipeline. On Friday, the bill/resolution count reached 2,452.

The Week in Review

State of the Judiciary Address

On Wednesday, Chief Justice Hecht delivered the State of the Judiciary address before a joint session of the Texas Senate and House. Chief Justice Hecht encouraged legislative support for various issues, including truancy reform measures, the exploration of mechanisms for the Legislature and the Judiciary to improve their understanding of the writing and interpretation of statutes, civil legal aid services for veterans, studying ways to encourage new lawyers to devote their practices to providing legal services at more affordable rates, and to fully fund the appellate courts. Here is a transcript of CJ Hecht’s full address: State of Judiciary Address.

Appellate Court Budget Hearing – House Appropriations Subcommittee

Also on Wednesday, representatives from the Supreme Court, Court of Criminal Appeals (CCA), and the Courts of Appeals appeared before the House Appropriations Subcommittee on Articles I, IV & V to testify on budget recommendations for the judicial portion of the budget (Article IV). An overview of the proposed budget and the additional funds that are being requested by the Supreme Court and the Courts of Appeals is summarized in the “Monitored Bills” section below. Here are the handouts from the meeting: Committee Meeting Handouts. For those who are interested in watching the proceedings, here is the archived committee broadcast: Appropriations Subcommittee Hearing. The hearing begins with testimony about the Supreme Court and CCA; testimony about the intermediate appellate courts begins around the 47:30 mark.

New Bills

There were six (6) new civil justice-related bills filed last week that are worthy of tracking. They are as follows: (1) HB 1444, which eliminates straight ticket voting in counties where the population exceeds 1,000,000; (2) HB 1494, which gives a court reporter at least sixty (60) days to file a reporter’s record in routine appeals; (3) HB 1531, which makes it a Class B misdemeanor for a legislator or an executive officer elected in a statewide election who is licensed to practice law to make or receive a referral fee; (4) HB 1603, which creates a chancery court and a court of chancery appeals; (5) HB 1656, which creates a public finance system for appellate court campaigns; and (6) HB 1692, which modifies the statutory forum non conveniens doctrine. The aforementioned bills have been added to the list below and are denoted with “++”. Also, several bills were referred to committee last week. The status of each bill has also been updated.

Monitored Bills

Appellate Procedure

++ HB 1494 - Filing of the Reporter's Record

· Summary: HB 1494, filed by Rep. Bryan Hughes (R - Mineola), would amend section 52.047 of the Government Code to state that a court reporter would not be required to file an official transcript of a trial before the 60th day after the date a notice of appeal is filed. However, this amendment would not apply to accelerated or interlocutory appeals.

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code (CPRC) to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision of the state. The bill would further provide that the amendment to Chapter 38.001 would not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

Bill Status: Referred to House Judiciary and Civil Jurisprudence on February 10, 2015.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

++ HB 1531 - Referrals for Legal Services by Legislators and Executive Officers

· Summary: HB 1531, filed by Rep. Charlie Geren (R - Fort Worth), would add section 572.063 to the Government Code and prohibit a member of the legislature or an executive officer elected in a statewide election who is a member of the State Bar of Texas or who is licensed to practice law in another state or a United States territory may not make or receive any referral for legal services for monetary compensation or any other benefit. A violation of this law would be a Class B misdemeanor.

Attorney’s Oath

SB 534 - Oath of Persons Admitted to Practice Law in Texas (Companion: HB 1644)

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin) but joined by multiple other senators, would amend section 82.037 of the Government Code and the oath taken by all attorneys admitted to practice law in Texas so as to require to attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.” The companion bill, HB 1644, was filed by Rep. John Smithee (R - Amarillo).

· Bill Status for SB 534: Referred to State Affairs on February 18, 2015.

Causes of Action

HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the CPRC to expressly eliminate “wrongful life” and “wrongful birth” causes of action.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. [Note: SJR 8 is likely in response to the 2013 decision by the CCA holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution]. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Damage Awards

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the CPRC to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

· Bill Status: Referred to Judiciary & Civil Jurisprudence on February 19, 2015.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 969 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.”

Elections

++ HB 1444 - Elimination of Straight-Party Voting in Certain Counties

· Summary: HB 1444, filed by Rep. Jason Villalba (R - Dallas), would amend section 52.071 of the Election Code to eliminate straight ticket voting for judicial offices and local executive offices in counties with a population over 1,000,000.

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

· Summary: HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)*

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are similar to HB 899, which is summarized below.

· Bill Status for SB 531: Referred to State Affairs on February 18, 2015.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior sessions that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would a require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a certain disclosure form promulgated by the State Bar of Texas; and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the State Bar of Texas may require. HB 1195 is essentially the same bill that Rep. Bohac filed in 2013 (HB 3470), which died in committee.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the CPRC in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed by against an employer by an employee not covered by worker’s compensation insurance or the employee ’s surviving spouse or heir.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The House and Senate have released preliminary budgets for 2016 and 2017 that would include slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans. The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remaining half of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the CCA and the Supreme Court should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015

SB 455 - Creation of Special Three-Judge District Court (Companion: HB 1091)

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

The companion bill, HB 1091, was filed by Rep. Mike Schofield (R - Houston).

· Bill Status: Referred to State Affairs on February 9, 2015.

SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion: HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Third Court of Appeals and make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

· Bill Status: Referred to Business & Commerce on February 18, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

· Bill Status: Referred to Redistricting on February 16, 2015.

HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount of in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing a jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located.

HB 1416 - Judicial Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the CCA (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

++HB 1603 - Creation of the Chancery Court and Court of Chancery Appeals to Hear Certain Cases

· Summary: HB 1603, filed by Rep. Jason Villalba (R - Dallas), creates a statewide specialized civil trial court and an appellate court to hear certain business-related litigation cases, such as actions against businesses, accusations of wrongdoing by businesses or their members, disputes between businesses, violations of Business Organizations Code, Finance Code, and Business & Commerce Code. This court would have no jurisdiction over governmental entities (absent the government entity invoking or consenting to jurisdiction) or personal injury cases unless agreed to by parties and the court. Some of the other notable components of the bill are:

o The chancery court will be composed of seven (7) judges who are appointed by the governor for staggered six (6) year terms. The judges are selected from a list of qualified candidates compiled by a bipartisan advisory council (Chancery Court Nominations Advisory Council) and must have at least 10 years of experience in complex business law.

o Court clerk will be located in Travis County, but individual judges will be based in the county seat of their respective counties.

o Current venue rules will apply, but cases may be heard in an agreed-upon county or where the court may decide to be more convenient or necessary.

o There would be a removal procedure for cases filed in a district court.

o The Courts of Chancery Appeals, which handles appeals from the chancery trial court, will be composed of seven (7) justices from current court of appeals justices that are appointed by the governor base on a list of qualified candidates compiled by the advisory council. Justices would serve six (6) year terms and would hear cases in panels of three (3), which are selected randomly. Appeals from the CCA would go to the Supreme Court.

++HB 1656 - Public Financing of Campaigns for Appellate Judicial Offices

· Summary: HB 1656, filed by Rep. Rafael Anchia (D - Dallas), is essentially the same bill that Rep. Anchia filed in 2013 (HB 1126) that died in committee. HB 1656 would affect the manner in which appellate justice/judge campaigns are financed by providing a public financing option for eligible candidates. Specifically, under HB 1656, a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign. Once the Texas Ethics Commission (TEC) declares that a candidate has met the eligibility standards, the candidate may begin receiving distributions from the fund and may no longer accept contributions from private contributors or benefit from the direct campaign expenditures on the candidate’s behalf. The fund would be composed of any amounts appropriated or gifted, as well as by civil penalties levied by the TEC.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the CCA and give jurisdiction of criminal appeals to the Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

Probate Court Proceedings

SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court, as the Court considers appropriate, to promulgate forms and instructions for the use of certain forms by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2)Athe probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals.

· Bill Status: Referred to State Affairs on February 11, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, which is another piece of legislation filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and CCA judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person may be Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status of SJR 24: Referred to State Affairs on February 2, 2015.

Trial Court Procedure

++ HB 1692 - Doctrine of Forum Non Conveniens

· Summary: HB 1692, filed by Rep. Kenneth Sheets (R - Dallas), would amend section 71.051(e) to provide that, in determining whether a case should be dismissed under the forum non conveniens provisions, the “plaintiff’s choice of a forum…shall be given substantial deference, provided that the plaintiff is a legal resident of the state and the underlying litigation has a significant connection to this state.” HB 1692 would also eliminate the “legal resident” definition and add to the definition of “plaintiff” the following: “an intervenor, beneficiary, next friend, or other derivative party to the plaintiff ’s claim” and “a decedent ’s estate, if the decedent was not a legal resident of this state at the time of death.”

 
 

 
 
Legislative Update
February 15, 2015

We are now just a month away from the March 13th deadline to file bills and resolutions. On Friday, February 13th, the bill/resolution count reached 2,023. There were several noteworthy bills filed last week, most of which will be summarized in this update.

I would also remind everyone that Chief Justice Nathan Hecht is scheduled to deliver the State of the Judiciary Address on Tuesday, February 18th at 11 a.m. in the House Chamber. Those who want to watch or listen in can do so here: House Live Broadcast.

The Week in Review

There were seven (7) bills/resolutions filed last week that are worthy of tracking. They are as follows: (1) SB 512, which requires the Supreme Court to promulgate forms for certain probate proceedings; (2) SB 534, which amends the oath administered to attorneys admitted to practice law in Texas to include an oath of civility; (3) SB 524 and HB1427, which create a commission to study laws and agency rules that require proceedings to be filed in Travis County and make recommendations as to whether changes to those laws need to be made; (4) HB 1367, which expressly eliminates wrongful birth/life causes of action; (5) HB 1403, which excepts from the definition of “health care liability claim” employee personal injury claims against employers who do not provide worker’s compensation coverage; (6) HB 1416, which requires Supreme Court justices and Court of Criminal Appeals judges to recuse themselves for accepting certain political contributions; and (7) HJR 90, which amends the constitution to eliminate the Court of Criminal Appeals. The aforementioned bills have been added to the list below and are denoted with an asterisk. Also, several bills were referred to committee last week. The status of each bill listed has also been updated.

Monitored Bills

Attorney’s Fees/Fee Agreements

HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision of the state. The bill would further provide that the amendment to Chapter 38.001 would not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

Bill Status: Referred to House Judiciary and Civil Jurisprudence on February 10, 2015.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

Attorney’s Oath

* SB 534 - Oath of Persons Admitted to Practice Law in Texas

· Summary: SB 534, filed by Sen. Kirk Watson (D - Austin) but joined by multiple other senators, would amend section 82.037 of the Government Code and the oath taken by all attorneys admitted to practice law in Texas so as to require to attorneys to conduct themselves “with integrity and civility in dealing and communicating with the court and all parties.”

Causes of Action

* HB 1367 - Elimination of Wrongful Life/Birth Causes of Action

· Summary: HB 1367, filed by Rep. Gilbert Pena (R - Pasadena), would amend the Civil Practice & Remedies to expressly eliminate “wrongful life” and “wrongful birth” causes of action in Texas.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Damage Awards

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the Civil Practice & Remedies Code to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 3098 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.”

Decisions Based on Foreign Laws (Non-Family Law Proceedings)

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

· Summary: HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

Family Law

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship (Companion: SB 531)*

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. The companion bill, SB 531, was filed by Sen. Donna Campbell (R - New Braunfels). HB 562 and SB 531 are similar to HB 899, which is summarized below.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior session that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would a require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a certain disclosure form promulgated by the State Bar of Texas; and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the State Bar of Texas may require.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the Civil Practice and Remedies Code (CPRC) in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

* HB 1403 - Defining Health Care Liability Claim for Purposes of Certain Claims

· Summary: HB 1403, filed by Rep. Kenneth Sheets (R - Dallas), would amend the definition of “health care liability claim” in Chapter 74 of the CPRC to not include a personal injury claim filed by against an employer by an employee not covered by worker’s compensation insurance or the employee ’s surviving spouse or heir.

Judiciary/Court Administration

HB 1 / SB 2 - Appropriations Bills (Appellate Court Budget Only)

· Summary: The House and Senate have released preliminary budgets for 2016 and 2017 that would include slight funding cuts for the judiciary. As originally filed, the House would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate would give the judiciary $753.1 million, a 1.4 percent decrease.

The Supreme Court has asked for additional funds in order to do, among other things, the following: (1) provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees; and (2) provide legal services for veterans.

The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remainder of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Sen. Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the Court of Criminal Appeals (CCA) and the Texas Supreme Court (SC) should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015

SB 455 - Creation of Special Three-Judge District Court

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

· Bill Status: Referred to State Affairs on February 9, 2015.

* SB 524 - Review of State Laws Requiring an Action or Proceeding to be Brought in Travis County or a Travis County Court (Companion:

HB 1427)

· Summary: SB 524, filed by Sen. Brian Birdwell (R - Granbury) and Sen. Juan "Chuy" Hinojosa (D - McAllen), would create a commission to review Texas laws to identify each statute and state agency rule that requires an action or proceeding to be brought or considered in Travis County, a Travis County district or statutory county court, or the Court of Appeals for the Third Court of Appeals District and make recommendations on whether the location of the action or proceeding in each statute or state agency rule serves a legitimate state purpose, other than the convenience of the state agency, that supersedes the interests of persons required to travel to Travis County to attend or participate in the action or proceeding or whether the identified statute or state agency rule should be revised to authorize an action or proceeding to be brought or considered in another Texas county. The companion bill, HB 1427, was filed by Rep. Richard Raymond (D - Laredo).

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount of in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing a jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located.

* HB 1416 - Judicial Requiring Recusal Based on Political Contributions

· Summary: HB 1416, authored by Rep. Richard Raymond (D - Laredo), would require justices on the Supreme Court and judges on the Court of Criminal Appeals (but apparently not intermediate appellate court justices) to “recuse himself or herself from any case in which the justice or judge has in the preceding four years accepted political contributions…in a total amount of $2,500 or more” from “(1) a party to the case, (2) attorney of record in the case, (3) the law firm of an attorney of record in the case, (4) the managing agent of a party to the case, (5) a member of the board of directors of a party to the case, or (6) a general-purpose committee…that is established or administered by a person who is a party to the case.” Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee.

HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

* HJR 90 - Constitutional Amendment to Abolish the Court of Criminal Appeals

· Summary: HJR 90, also filed by Rep. Richard Raymond (D - Laredo), would abolish the Court of Criminal Appeals and give jurisdiction of criminal appeals to the Texas Supreme Court. Similar legislation was filed in 2009, 2011, and 2013, all of which died in committee. Under HJR 90, death penalty cases would be appealed directly to the Supreme Court, while all other criminal cases would go through the court of appeals. In non-death penalty cases that make it to the Supreme Court, the justices would sit in panels of three. The Court would hear death penalty cases en banc.

Probate Court Proceedings

* SB 512 - Promulgation of Forms for Use in Probate Matters

· Summary: SB 512, filed by Sen. Judith Zaffirini (D - Laredo), would require the Supreme Court, as the Court considers appropriate, to promulgate forms and instructions for the use of those forms for use by individuals representing themselves in certain probate matters or making certain wills, including forms for use in: (1)Aa small estate affidavit proceeding under the Estates Code; (2)Athe probate of a will as a muniment of title under the Estates Code; and (3) the making of a will for married and unmarried individuals.

· Bill Status: Referred to State Affairs on February 11, 2015.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, which is another piece of legislation filed by Sen. Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person Maybe Elected or Appointed to Hold Certain State Offices (Companion: HJR 38)

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms. The companion resolution, HJR 38, was filed by Rep. Lyle Larson (R - San Antonio).

· Bill Status: Referred to State Affairs on February 2, 2015.

 
 

 
Legislative Update
February 10, 2015

As new bills continue to roll in, the Legislature continues to roll on. Today’s update provides a brief overview of last week’s activities and identifies a few new pieces of legislation that are worthy of our attention. I have also modified the “Monitored Bills’ section to group the bills by subject matter. Hopefully, that’ll make the update a bit more reader-friendly.

The Week in Review

Appellate Court Budgets

The House and Senate have released preliminary budgets for 2016 and 2017 that would include slight funding cuts for the judiciary. If I am reading the budgets correctly, the House budget would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate budget would give the judiciary $753.1 million, a 1.4 percent decrease.

Last week, Chief Justice Nathan Hecht, along with Court of Criminal Appeals (CCA) Presiding Judge Sharon Keller, the chief justices of the intermediate appellate courts and representatives from various judicial branch agencies, testified before a Senate Committee on Finance about the Senate’s budget recommendations for the 2016-17 biennium.

At the hearing, the Supreme Court asked for additional funds that would be used to provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees. There was also a request for additional funding to provide legal services for veterans.

The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remainder of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

For those who are interested, you can watch the archived video from the February 2nd Senate Finance hearing by clicking on the “Senate Committee on Finance (Part I)” link on the following page: Senate Video Archives. Testimony about the Supreme Court’s budget begins at the 1:20:00 mark. Testimony regarding the intermediate appellate courts begins at the 2:16:00 mark.

February 10, 2015

As new bills continue to roll in, the Legislature continues to roll on. Today’s update provides a brief overview of last week’s activities and identifies a few new pieces of legislation that are worthy of our attention. I have also modified the “Monitored Bills’ section to group the bills by subject matter. Hopefully, that’ll make the update a bit more reader-friendly.

The Week in Review

Appellate Court Budgets

The House and Senate have released preliminary budgets for 2016 and 2017 that would include slight funding cuts for the judiciary. If I am reading the budgets correctly, the House budget would appropriate $761.5 million to the judiciary for the biennium, a 0.3 percent decrease compared with the last budget. The Senate budget would give the judiciary $753.1 million, a 1.4 percent decrease.

Last week, Chief Justice Nathan Hecht, along with Court of Criminal Appeals (CCA) Presiding Judge Sharon Keller, the chief justices of the intermediate appellate courts and representatives from various judicial branch agencies, testified before a Senate Committee on Finance about the Senate’s budget recommendations for the 2016-17 biennium.

At the hearing, the Supreme Court asked for additional funds that would be used to provide raises for staff attorneys, non-legal staff and clerks, as well as provide an increase in the travel budget for Supreme Court committees. There was also a request for additional funding to provide legal services for veterans.

The intermediate appellate courts jointly requested an additional $6.4 million dollars to fulfill the remainder of their request for funds under the “similar funding for same size courts” model. [Note: Last session, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half of the funding originally requested by the courts under the “similar funding for same size courts” model. The additional funds were used, in part, to provide targeted salary increases for legal and non-legal staff at the courts to restore some salaries and staff positions, as well as operating costs that were cut in previous fiscal years.] Further, in addition to the similar-funding-for-same-size-courts funds, the Austin and Fort Worth courts requested funds to hire more staff attorneys to help manage their respective caseloads.

For those who are interested, you can watch the archived video from the February 2nd Senate Finance hearing by clicking on the “Senate Committee on Finance (Part I)” link on the following page: Senate Video Archives. Testimony about the Supreme Court’s budget begins at the 1:20:00 mark. Testimony regarding the intermediate appellate courts begins at the 2:16:00 mark.

House Committee Appointments

On February 4th, Speaker Joe Straus announced his House Committee assignments. Here is the link to the committee list: House Committee Assignments.

State of the Judiciary Address

Chief Justice Hecht is scheduled to deliver the State of the Judiciary Address on February 18th at 11 am in the House Chamber.

Monitored Bills

I have added the following six (6) bills/resolutions to the monitoring list that merit attention: (1) HB 230, which relates to the recovery of attorney’s fees in certain civil cases; (2) HB 1195, which relates to disclosures by an attorney before accepting representation in divorce proceedings; (3) SB 443, which requires the Texas Judicial Council to study and make recommendations on consolidating the Court of Criminal Appeals and the Texas Supreme Court; (4) SB 455, which relates to the creation of special three-judge district courts in certain cases; (5) HB 1122, which increases the number of jurors required in certain civil cases pending in statutory county court; and (6) HJR 81, which creates a constitutional amendment to change the terms of district court judges to six years. The added bills are denoted with an asterisk and summarized below.

Attorney’s Fees/Fee Agreements

*HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision of the state. The bill would further provide that the amendment to Chapter 38.001 would not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Damage Awards

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the Civil Practice & Remedies Code to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 3098 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.”

Decisions Based on Foreign Laws

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. This bill is similar to HB 899, which is summarized below.

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

· Summary: HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior session that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

Family Law

* HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would a require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a certain disclosure form promulgated by the State Bar of Texas; and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the State Bar of Texas may require.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the Civil Practice and Remedies Code (CPRC) in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

Judiciary/Court Administration

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

* SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the Court of Criminal Appeals (CCA) and the Texas Supreme Court (SC) should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015

* SB 455 - Creation of Special Three-Judge District Court

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

· Bill Status: Referred to State Affairs on February 9, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

* HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount of in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing a jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located.

* HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, which is another piece of legislation filed by Senator-elect Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person Maybe Elected or Appointed to Hold Certain State Offices

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms.

· Bill Status: Referred to State Affairs on February 2, 2015.

On February 4th, Speaker Joe Straus announced his House Committee assignments. Here is the link to the committee list: House Committee Assignments.

State of the Judiciary Address

Chief Justice Hecht is scheduled to deliver the State of the Judiciary Address on February 18th at 11 am in the House Chamber.

Monitored Bills

I have added the following six (6) bills/resolutions to the monitoring list that merit attention: (1) HB 230, which relates to the recovery of attorney’s fees in certain civil cases; (2) HB 1195, which relates to disclosures by an attorney before accepting representation in divorce proceedings; (3) SB 443, which requires the Texas Judicial Council to study and make recommendations on consolidating the Court of Criminal Appeals and the Texas Supreme Court; (4) SB 455, which relates to the creation of special three-judge district courts in certain cases; (5) HB 1122, which increases the number of jurors required in certain civil cases pending in statutory county court; and (6) HJR 81, which creates a constitutional amendment to change the terms of district court judges to six years. The added bills are denoted with an asterisk and summarized below.

Attorney’s Fees/Fee Agreements

*HB 230 - Recovery of Attorney's Fees in Certain Civil Cases

· Summary: HB 230, filed by Rep. Jessica Farrar (D - Houston), would amend Chapter 38.001 of the Civil Practice and Remedies Code to (1) add “other legal entity” to the list of those from whom attorney’s fees can be recovered; and (2) expressly provide that Chapter 38.001 does not authorize the recovery of attorney’s fees from the state, an agency or institution of the state, or a political subdivision of the state. The bill would further provide that the amendment to Chapter 38.001 would not affect any other statute that permits the recovery of attorney’s fees from the governmental entities listed in the statute.

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

· Summary: HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

Constitutional Challenges to Texas Statutes

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

· Summary: SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

· Bill Status: Referred to State Affairs on January 27, 2015.

Damage Awards

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

· Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the Civil Practice & Remedies Code to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

· Summary: HB 969, filed by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 3098 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.”

Decisions Based on Foreign Laws

HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship

· Summary: HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. This bill is similar to HB 899, which is summarized below.

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

· Summary: HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

· Summary: Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior session that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

Family Law

* HB 1195 - Disclosure by an Attorney Before Accepting Representation in a Marriage Dissolution Proceeding

· Summary: HB 1195, filed by Rep. Dwayne Bohac (R - Houston), would a require an attorney to disclose certain information to a prospective client before agreeing to represent that client in a divorce proceeding. More specifically, HB 1195 would amend the Family Code to require: (1) the attorney to provide a prospective client with a certain disclosure form promulgated by the State Bar of Texas; and (2) the client to acknowledge in writing that the client has received and understands the disclosure. The disclosure must include information about arbitration, mediation, collaborative law, and alternatives to retaining an attorney for the dissolution of a marriage, as well as any other information that the State Bar of Texas may require.

Health Care Liability

HB 956 - Scope of a Health Care Liability Claim

· Summary: HB 956, filed by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to a series of Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the Civil Practice and Remedies Code (CPRC) in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

Judiciary/Court Administration

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

· Summary: SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

· Bill Status: Referred to State Affairs on January 26, 2015.

* SB 443 - Study and Recommendations on Consolidating the Court of Criminal Appeals and the Texas Supreme Court

· Summary: SB 443, filed by Sen. Kirk Watson (D - Austin), would require the Judicial Council to study and make recommendations as to whether the Court of Criminal Appeals (CCA) and the Texas Supreme Court (SC) should be consolidated or whether one court should be abolished and its functions and jurisdiction transferred to the other court.

· Bill Status: Referred to State Affairs on February 9, 2015

* SB 455 - Creation of Special Three-Judge District Court

· Summary: SB 455, filed by Sen. Brandon Creighton (R - Conroe), would amend the Government Code to create a procedural mechanism that would allow the Attorney General to petition the Chief Justice of the Supreme Court for the formation of a special three-judge panel to hear certain types of cases in which the State of Texas or an officer or agency of the State is a defendant. Proceedings in front of a three-judge panel would be mandatory in cases involving a claim that either (1) challenges the finances or operations of the public school system; or (2) involves the apportionment of districts for the Texas House, Texas Senate, U.S. Congress, State Board of Education, or the apportionment of state judicial districts. Three-judge panel proceedings would be discretionary in other cases in which the Attorney General certifies that the outcome of the case either (1) significantly impacts the finances of the State; (2) significantly alters the operations of important statewide policies or programs; or (3) is otherwise of exceptional statewide importance such that the case should not be decided by a single district judge. Under SB 455, the Chief Justice’s decision to either deny the AG’s petition or order that a discretionary proceeding be heard by a special three-judge district court would be considered final and not appealable; however, appeals “from an appealable interlocutory order of final judgment” of the three-judge court would be directly to the Supreme Court.

SB 455 provides that the three-judge district court would consist of the district judge to whom the case was assigned at the time the petition to the Chief Justice was submitted, a district judge chosen by the Chief Justice who has been elected by the voters of a county other than the county in which the case was filed, and a justice of a court of appeals chosen by the Chief Justice who has been elected by the voters of a judicial district other than the district in which the case was filed or in which the district judge chosen under the section sits. The three-judge court would be required to sit in the county in which the case was filed and would be subject to the Texas Rules of Civil Procedure; provided, however, that the Supreme Court may promulgate rules for the operation of the three-judge courts.

· Bill Status: Referred to State Affairs on February 9, 2015.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

· Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

* HB 1122- Number of Jurors Required in Certain Civil Cases Pending in Statutory County Court

· Summary. HB 1122, filed by Rep. Travis Clardy (R - Nacogdoches), would amend the Government Code to require that civil cases pending in a statutory county court in which the amount of in controversy is $200,000 or more be tried before a jury of twelve (12) members. The bill would also require that the drawing a jury panels, the selection of jurors, and the related practice and procedure conform to that prescribed by law for district courts in the county where the statutory county court is located.

* HJR 81 - Constitutional Amendment to Change the Terms of District Court Judges to Six Years

· Summary: HJR 81, filed by Rep. Richard Raymond (D - Laredo), would increase the terms of district court judges from four years to six years. A similar bill was filed in 2013, but failed to get out of committee.

Qualifications for Public Office and Term Limits

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

· Summary: SJR 6, which is another piece of legislation filed by Senator-elect Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

· Bill Status: Referred to State Affairs on January 27, 2015.

SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person Maybe Elected or Appointed to Hold Certain State Offices

· Summary: SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms.

· Bill Status: Referred to State Affairs on February 2, 2015.

 
 

 
Legislative Update
February 1, 2015

In addition to the filing of more bills, the pace of legislative activity began to pick up a bit last week as Senate bills began getting assigned to committees. Three (3) bills/resolutions on our list have been referred to the Senate Committee on State Affairs (i.e., SB 64 – the “Appellate Court Accountability Act”; SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices; and SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes), all of which are summarized below. Hearings have yet to be scheduled on these bills/resolutions.

From a judicial branch perspective, the first committee hearing of significance will occur tomorrow (Monday, February 2nd) when Chief Justice Nathan Hecht, along with CCA Presiding Judge Sharon Keller, the chief justices of the state’s intermediate appellate courts and representatives from various judicial branch agencies, will testify before the Senate Committee on Finance on budget recommendations for the 2016-17 biennium. The introduced version of SB 2 is known as the Senate's "base budget." The House version is HB 1. Information about the proposed 2016-2017 budgets from both chambers, including summaries of the House Budget Estimates for Articles IV-X and Senate Budget Estimates for Articles IV-X (Article IV is the judiciary) can be found on the Legislative Budget Board’s website. For those who are interested, you can watch the video by visiting the Senate website and clicking on the Senate Committee on Finance link when it is posted. The hearing is scheduled to begin at 10:00 a.m. Here’s the posted agenda: Notice of Public Hearing. Of course, I’ll provide an overview of what transpires at the hearing in the next update.

Monitored Bills

I have added three (3) bills/resolutions to the monitored list that merit attention: (1) HB 562, which is another bill that would restrict the application of foreign law and foreign forum selection clauses in certain family law cases; (2) HB 956, which seeks to clarify the definition of a health care liability claim; and (3) HB 969, which seeks to change the type of evidence that can be considered in awarding exemplary damages. The added bills are denoted with an asterisk.

Senate Bills

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

Summary:
SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.
Supreme Court Deadlines
SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

Bill Status: Referred to State Affairs on January 26, 2015.
SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

Summary:
SJR 6, which is another piece of legislation filed by Senator-elect Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.
Bill Status: Referred to State Affairs on January 27, 2015.


SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

Summary:
SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).
Bill Status: Referred to State Affairs on January 27, 2015.


SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person Maybe Elected or Appointed to Hold Certain State Offices

Summary:
SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms.

House Bills

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

Summary:
HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247. HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

Summary: HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the Civil Practice & Remedies Code to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

Summary: HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

*HB 562 - Application of Foreign Laws and Foreign Forum Selection in Proceeding involving Marriage, a Suit for Dissolution of a Marriage/Affecting Parent-Child Relationship

Summary:
HB 562, filed by Rep. Jeff Leach (R - Plano), would prohibit a court or arbitrator in a family law matter from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution or the constitution or a statute of Texas. This bill is similar to HB 899, which is summarized below.

HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

S
ummary: HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

Summary:
Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior session that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

*HB 956 - Scope of a Health Care Liability Claim

Summary:
HB 956, authored by Rep. Chris Turner (D - Arlington/Grand Prairie), is similar to the bill filed by Rep. Turner that failed to pass in 2013 (i.e., HB 2644) and is intended to be the legislative response to recent Supreme Court cases addressing the scope of “health care liability claims” under the Texas Medical Liability Act, including Texas West Oaks Hospital, L.P. v. Williams. Specifically, HB 956 would amend the terms “claimant” and “health care liability claim” in Chapter 74 of the Civil Practice and Remedies Code (CPRC) in an effort to “clarify” the meaning of those terms. Specifically, the term “claimant” would mean a “patient, including a deceased patient’s estate”, instead of “person, including a decedent’s estate.” The term “claimant” would include “both the patient and the party seeking recovery of damages” in cases in which “a party seeks recovery of damages related to injury of another person who is a patient, or other harm to the patient.” The bill would also amend the definition of “health care liability claim” to specify that such claims arise from “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, or health care, or safety directly related to health care…” [emphasis added] and that the term “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

*HB 969 - Availability and Use of Certain Evidence in Connection with an Award of Exemplary Damages

Summary:
HB 969, authored by Rep. Ken King (R - Hemphill), would amend section 41.011 of the CPRC to eliminate “the net worth of defendant” as one of the elements to considered in determining the amount of exemplary damages. Specifically, HB 3098 deletes “the net worth of the defendant” from the types of evidence to be considered by the trier of fact under section 41.0011(a) and adds the following subsection (c) to that section: “Evidence of the financial condition or net worth of a party is not relevant for the purpose of supporting a claim for or the amount of exemplary damages.”

 

 
Legislative Update
January 23, 2014

Now that the session is underway, the pace of bill filing will increase exponentially and, once again, we will get to experience the twists and turns that usually occur during legislative sessions. On Friday, January 23rd, the bill count reached 1,236. Since the last update, the House Committee on Judiciary and Civil Jurisprudence released its interim charges report, the Texas Senate replaced the “two-thirds rule,” Lt. Governor Dan Patrick announced committee assignments, and a handful of bills that may impact the civil justice system were filed, all of which are summarized herein.

Senate Committee Assignments/Elimination of the “Two-Thirds Rule”

On January 21st, the Senate voted to replace the 64-year-old “two thirds rule,” which required the approval of 21 Senators to allow a floor vote on a bill, with a “three-fifths rule”. Under the new rule, the approval of only 19 Senators will be necessary to bring a bill to the floor for a vote.

On January 23rd, Lt. Governor Patrick announced his Senate Committee assignments. Here is the link to the list: Senate Committee Assignments. House committee assignments will be announced in the near future.

Reports on Interim Charges

Earlier this month, the House Committee on Judiciary and Civil Jurisprudence released its interim report. Here are excerpts from the Committee’s recommendations following its study of charges relating to the terms and qualifications of appellate justices, the appointment of regional presiding judges, and the accessibility of probate courts to low-income individuals:

  • “The Committee believes that the term lengths for appellate court justices should be extended, possibly to 8 years. The committee further believes that the qualifications should be extended to require membership in the State Bar of Texas continuously for 10 years, and a potential appellate court candidate may not have been sanctioned as punishment for professional misconduct, had their license suspended based on a violation of the Texas Disciplinary Rules of Professional Conduct, or at any point been subject to disbarment.”
  • “The Committee finds that able, respected, and capable Regional Presiding Judges have been selected through the current system of gubernatorial appointment. Therefore, the Committee is unable to determine that there is an immediate problem with the present system. Nevertheless, the Committee does note that most states utilize systems in which such selection is made within the Judicial Branch itself. The Committee concludes that any change in the present system should be considered in the context of comprehensive changes or reform of the administrative responsibilities in the Judiciary.”
  • “The Committee agrees that access to the probate system can be greatly improved. The courts, and specifically probate courts, can seem overwhelming and unavailable, and much more needs to be done to expand access to the justice system, particularly with regard to those in a lower income bracket. The proposed will forms, along with education programs and ventures such as the Texas Title Project, are critical aspects of increasing accessibility to the probate courts.”

Those who wish to read the full report can do so by clicking on the following link: Interim Report - House Committee on Judiciary and Civil Jurisprudence.

Pre-Filed Bills

I have added three bills/resolutions to the pre-filed bill list that merit attention: (1) SJR 24, which proposes a constitutional amendment to limit terms of office for most statewide elective offices to two consecutive terms; (2) HB 670, which would restrict the application of “foreign laws” and “foreign forum selection clauses;” and (3) HB 899, which would restrict the application of foreign law and foreign forum selection clauses in certain family law cases. The added bills are denoted with an asterisk. Otherwise, the prior list of bills is unchanged.

Senate Bills

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

SJR 6, which is another piece of legislation filed by Senator-elect Don Huffines (R – Dallas), proposes a constitutional amendment that would place terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

*SJR 24 - Constitutional Amendment Limiting to Two the Number of Consecutive Terms for Which a Person Maybe Elected or Appointed to Hold Certain State Offices

SJR 24, filed by Sen. Kevin Eltife (R - Tyler), would prohibit a person who has been elected or appointed to serve two consecutive terms in an office listed in Article IV, Section 1 of the Texas Constitution (i.e., Governor, Lieutenant Governor, Secretary of State, Comptroller of Public Accounts, Commissioner of the General Land Office, and Attorney General), as well as “any other statewide elective office, other than a statewide judicial office,” from serving for a third consecutive term. However, SJR would not limit a person ’s eligibility for election or appointment to serve nonconsecutive terms.

House Bills

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the Civil Practice & Remedies Code to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

*HB 670 - Application of Foreign Laws and Foreign Forum Selection in Texas

HB 670, filed by Rep. Dan Flynn (R - Canton), is similar to bills filed in 2011 and 2013 that failed to pass. HB 670 would prohibit a court, arbitrator, or administrative adjudicator from basing “a ruling or decision” on “a foreign law,” or otherwise enforcing contract provisions that either require the application of a foreign law to a dispute or require parties to litigate their dispute in a forum outside of the United States if such provisions would violate a right guaranteed by the United States Constitution or the Texas Constitution.

*HB 899 - Application of Foreign Laws and Foreign Forum Selection in Certain Family Law Proceedings

Like HB 670, HB 899, filed by Rep. Pat Fallon (R - Little Elm), is similar to failed bills filed in prior session that would prohibit a court or arbitrator in suits involving the dissolution of a marriage from making a ruling or decision based on a foreign law if the application of that law would violate a right guaranteed by the United States Constitution, the Texas Constitution, or a Texas statute.

 


 
Legislative Update
January 4, 2014

The 2015 legislative session is now upon us. The 84th Legislature convenes on Tuesday, January 13th. That means I’ll be invading your inboxes more often. As of January 2nd, 811 bills and resolutions have been filed, which is a bit ahead of the pace of last session in terms of pre-session filings. Of course, as things get underway in Austin, the number of bills will increase exponentially and we will begin to experience the twists and turns that usually occur during legislative sessions.

No additional judiciary-related bills of significance have been filed since my last update. However, I have added two bills (HB 419 and HB 427) to the pre-filed bill list that merit some attention. Also, for purposes of review, and for the benefit of those who have recently been added to the distribution list, this update contains information that appeared in previous updates (e.g., an overview of potential bills, an appellate court budget analysis, and a summary of the judiciary-related interim charges).

Pre-Filed Bills

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R – Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and one hundred eighty (180) days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and Governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the Governor, Lieutenant Governor, and Speaker of the House.

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

SJR 6, which is another piece of legislation filed by Senator-elect Don Huffines (R – Dallas) proposes a constitutional amendment that would impose terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

HB 419 - Federal Income Tax Liability for Damages Awarded in Civil Actions

HB 419, filed by Rep. Gene Wu (D – Houston), would amend Chapter 41 of the Civil Practice & Remedies Code to require a defendant to compensate a claimant for federal income tax liability arising out of a damages award.

HB 427/HJR 49 - Creation of Texas Redistricting Commission

HB 427 and HJR 49, filed by Rep. Donna Howard (D – Austin), would create the Texas Redistricting Commission (“TRC”), which would be responsible for adopting redistricting plans for the election of the Texas House of Representatives, the Texas Senate, and the members of the United States House of Representatives elected from the state of Texas following each federal census. The TRC would also be responsible for reapportioning judicial districts in the event the Judicial Districts Board fails to reapportion judicial districts.

Possible Bills

One can only speculate as to what bills of significance will be filed once the legislative session begins. However, there is some sense that measures introduced in prior sessions will be re-filed (e.g., bills related to voluntary compensation plans, consumer lawsuit lending, property & casualty insurance reform in the hailstorm context, and the clarification of the meaning of “health care liability claims”). There may also be bills related to judicial compensation, judicial selection, and others that are consistent with theresolutions adopted by the Texas Judicial Council in November memorializing the Council’s legislative priorities for 2015. These resolutions include, but are not limited to, the following:

  • Ensuring Adequate Court Funding – Urges the Legislature and County Commissioners Courts to provide adequate funding to the courts in order to permit the Judiciary to carry out their constitutional and statutorily-mandated responsibilities.
  • Adequate Funding for Court eFiling System – Recommends that the Legislature provide adequate funding to the Office of Court Administration (OCA) for e-Filing, including funding to allow OCA to procure an automated case management system for counties under 20,000 without means to do so, and provide grant funds to counties across Texas to implement mandatory e-Filing, primarily to less populous counties who are required to fully implement e-Filing between January and July 2016.
  • Additional State Funding for Indigent Defense – Recommends that the Legislature provide sufficient funding to (a) support the statewide Regional Public Defender Office for Capital Cases by providing $3.1 million annually from General Revenue to continue the development of and provide ongoing support to the program; (b) support the multi-county indigent defense technology grant program by providing $1.5 million annually from General Revenue to continue the development and expansion of the multi-county indigent defense technology grant program to more counties; (c) close the Fair Defense Act funding gap by providing $98.4 million annually from General Revenue to defray the unfunded increased costs associated with the passage of the Fair Defense Act of 2001; and (d) provide General Revenue to support regional public defender offices in rural counties operated by non-profit legal services corporations.
  • Judicial Compensation Commission Recommendations – Urges the Legislature to provide funding to increase state judicial compensation to the levels recommended by the Compensation Commission.
  • Grant Funding for Legal Services for Veterans – Urges the Legislature to provide adequate funding to increase direct legal assistance to veterans and their immediate families to be used for grants to organizations for legal aid, legal clinics, or other legal services.

Appellate Court Budgets

Last June, in what has become a biennial event, the Legislative Budget Board (“LBB”) and the Governor’s Office of Budget, Planning & Policy (“Governor’s Office”) advised appellate courts, state agencies, and institutions of higher education that their respective appropriations requests for next session should, as a starting point, not “exceed the sum of amounts expended in fiscal year 2014 and budgeted in fiscal year 2015” (with the understanding that they could be asked to further reduce their fiscal year 2015 budgets should state fiscal conditions warrant it) and that each agency must also submit a supplemental schedule detailing how they would reduce the baseline request by an additional 10 percent (in 5 percent increments).

As you all may recall, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half the funding requested by the courts under the “similar funding for same size courts” model. The additional funds are being used, in part, to provide targeted salary increases for legal and non-legal staff at the courts and to restore some salaries and staff positions, as well as operating costs, that were cut in previous fiscal years. In spite of the additional funds appropriated last session, the appellate courts continue to operate on razor-thin budgets and can ill-afford further reductions. In fact, for practically every court of appeals, an additional 10% cut would lead to the elimination of staff positions and adversely affect appellate court operations.

In response to LBB’s and Governor’s Office’s request, the courts submitted their respective budget requests and, in the process, reminded the Governor’s Office and LBB about the negative impact of any further budget reductions. The courts are also primed to ask the 84th Legislature to fulfill the rest of their request for funds under the “similar funding for same size courts” model. Time will tell if their efforts will be successful.

Interim Charges

As you may recall, Speaker Joe Straus and Lt. Governor David Dewhurst issued several interim charges for House and Senatecommittees to study before the 84th Legislature convenes. Those who are interested in perusing the entire list of charges for each chamber can click on the links above. Of the charges issued, only a few relate to the civil justice system. Those I have been monitoring are as follows:

House Committee on Judiciary & Civil Jurisprudence

  • Examine the constitutional qualifications and term lengths for appellate court judges, and consider whether changes would benefit the public and the judiciary.
  • Study the issue of whether Regional Presiding Judges should be appointed by the Chief Justice rather than the Governor.
  • Review the methods used by state agencies and courts to prepare and publish electronic legal materials. Examine the processes used to ensure reliability and permanence of these materials and strategies used to harmonize those processes with national standards, including possible adoption of the Uniform Electronic Legal Materials Act.
  • Study issues that inhibit the use of wills and access to the probate process in Texas, particularly for low-income individuals.

House Committee on Government Efficiency and Reform

  • Examine the public’s accessibility to government services and agencies through the use of mobile applications and online services. (Joint charge with the House Committee on Technology).

Senate Jurisprudence Committee

  • Monitor the implementation of statewide electronic filing as mandated by the Texas Supreme Court to determine if any additional training or resources are needed by local jurisdictions. In addition, identifying those jurisdictions that have imposed the local transaction fee, as created by House Bill 2302, to determine how it is being utilized and if its continued collection is necessary.

The committee reports for these interim charges have yet to be published, but should be before the session begins.

 

 

Legislative Update
December 1, 2014

Not much has happened on the bill-filing front since the last update. After the flurry of filing activity on opening day, the filing of bills has ebbed for the time being. As of Wednesday, November 26th, 567 bills and resolutions have been filed. In addition to the bills referenced in the November 16th update, the following resolution will be added to the bill monitoring list:

SJR 6 - Constitutional Amendment to Provide Qualifications for and Limit the Time that a Person May Serve in Certain Offices

SJR 6, which is another piece of legislation filed by Senator-elect Don Huffines (R – Dallas), proposes a constitutional amendment that would impose terms limits on legislators (12 years) and would limit the amount of time that a legislator could serve as Speaker of the House of Representatives or as a committee chair. SJR 6 would also impose term limits on almost the entire Texas judiciary. For example, SJR 6 would bar Supreme Court justices and Court of Criminal Appeals judges from re-election if they had previously been elected to two full terms; however, the intermediate appellate court justices would not be subject to the term limits imposed under the current version of SJR 6. SJR 6 would also apply to "every district office or office of a political subdivision of this state that is filled by popular election," which appears to include district judges, county court-at-law judges, justices of the peace and county and district attorneys. All would be ineligible for re-election if they had served eight years or more. SJR 6 would become effective in 2016.

Previously Identified Bills

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

SB 64, which is also known as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R-Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and 180 days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the governor, lieutenant governor, and speaker of the house.

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

Potential Bills

One can only speculate as to what bills of significance will be filed once the legislative session begins. However, there may be bills related to judicial compensation as well as others that are consistent with the resolutions adopted by the Texas Judicial Council last month memorializing the Council’s legislative priorities for 2015. These resolutions include, but are not limited to, the following:

  • Ensuring Adequate Court Funding – Urges the Legislature and County Commissioners Courts to provide adequate funding to the courts in order to permit the Judiciary to carry out their constitutional and statutorily-mandated responsibilities.
  • Adequate Funding for Court eFiling System – Recommends that the Legislature provide adequate funding to the Office of Court Administration (OCA) for e-Filing, including funding to allow OCA to procure an automated case management system for counties under 20,000 without means to do so, and provide grant funds to counties across Texas to implement mandatory e-Filing, primarily to less populous counties who are required to fully implement e-Filing between January and July 2016.
  • Additional State Funding for Indigent Defense – Recommends that the Legislature provide sufficient funding to (a) support the statewide Regional Public Defender Office for Capital Cases by providing $3.1 million annually from General Revenue to continue the development of and provide ongoing support to the program; (b) support the multi-county indigent defense technology grant program by providing $1.5 million annually from General Revenue to continue the development and expansion of the multi-county indigent defense technology grant program to more counties; (c) close the Fair Defense Act funding gap by providing $98.4 million annually from General Revenue to defray the unfunded increased costs associated with the passage of the Fair Defense Act of 2001; and (d) provide General Revenue to support regional public defender offices in rural counties operated by non-profit legal services corporations.
  • Judicial Compensation Commission Recommendations – Urges the Legislature to provide funding to increase state judicial compensation to the levels recommended by the Compensation Commission.
  • Grant Funding for Legal Services for Veterans – Urges the Legislature to provide adequate funding to increase direct legal assistance to veterans and their immediate families to be used for grants to organizations for legal aid, legal clinics, or other legal services.


Legislative Update
November 17, 2014

It’s almost time to turn our attention to the next legislative session. As I have done in years past, I’ll be monitoring bills filed during the upcoming session and searching for features that may significantly impact trial lawyers, appellate lawyers, and the judiciary. I hope you find them informative and user-friendly.

Filed Bills

Legislators began filing bills last week. As of Friday, 454 bills and resolutions have been filed covering a variety of topics (such as a texting-while-driving ban, increasing the minimum wage, open carry, term limits, and franchise tax modifications). There were only a handful of filings relating to the judiciary and the civil justice system. A few bills of note are as follows:

SB 64 - Relating to Appellate Court Procedures and Deadlines in Civil Actions

SB 64, which is also referred to as the “Appellate Court Accountability Act”, was filed by Senator-elect Don Huffines (R - Dallas). SB 64 would establish deadlines for the Supreme Court and intermediate courts of appeals to act on civil appeals.

Supreme Court Deadlines

SB 64 would give the Supreme Court ninety (90) days from the date of filing to deny a petition for review if the court does not request a response and 180 days if it does not request briefing. The Court would be required to grant or deny the petition no later than three hundred (300) days after the petition is filed if the Court requests briefing. If the Court determined that the issues presented in a petition were related to issues in another case for which a petition has been granted and a decision pending, it could place the petition on hold until the Court decided the prior case. At such time, the Court would be required to publish the names of the parties to the petitions and the issues the Court has determined to be related. Once a decision has been issued in the case for which a petition was placed on hold, the Court would have thirty (30) days to grant or deny the petition.

The bill would also require the Supreme Court to issue a decision for all cases in which the Court grants a petition during the ”term of court” (i.e., the State’s fiscal year) in which the petition for review was granted. If a petition is granted in June or later, the Court could carry the case into the next term under “extraordinary circumstances” but must explain the nature of the “extraordinary circumstances” in the order granting the petition. Any case carried over would have to be decided no later than December 31st of the next term.

SB 64 would also require the Court to adopt written procedures that allocate responsibilities to individual justices. The chief justice would be required to enforce the procedures and deadlines against individual justices. Such enforcement options would include prohibiting a justice from participating in future oral arguments, reassigning opinions, prohibiting a justice from participating in a new case, and referring a justice to the State Commission on Judicial Conduct.

Intermediate Appellate Court Deadlines

SB 64 would require the courts of appeals to announce whether oral argument has been granted in a civil appeal no later than sixty (60) days after the “final brief” is filed. Oral argument must be held no later than one hundred twenty (120) days after the date the final brief has been filed, and the court must issue its decision no later than ninety (90) days after oral argument (if granted) or the date the court announces that oral argument is denied.

The chief justice of each court of appeals would be required to enforce the deadlines in the same manner as the Chief Justice of the Supreme Court, as well as submit a quarterly report to the Chief Justice of the Supreme Court regarding the court’s compliance with the deadlines. If a court of appeals fails to comply, the Chief Justice may prohibit the filing of additional appeals in that court and order the transfer of appeals to other courts. If a court of appeals was prohibited from accepting new appeals, justices of that court would not be credited with state service for the time period during which the court would be prohibit from accepting appeals, and the Legislative Budget Board and governor would be required to reduce the non-complying court’s budget and shift money to courts receiving transfers. By January 31st of each year, the Chief Justice of the Supreme Court would be required to submit a compliance report with the governor, lieutenant governor, and speaker of the house.

SJR 8 - Constitutional Amendment Authorizing Legislature to Require a Court to Provide Notice to the Attorney General of a Constitutional Challenge to State Statutes

SJR 8, filed by Sen. Judith Zaffirini (D - Laredo), would amend the Texas Constitution to specifically authorize the Legislature to (1) require a court to notify the attorney general of a challenge to the constitutionality of a Texas statute, and (2) prescribe a reasonable period after notice is provided during which the court may not enter a judgment holding a statute unconstitutional. SJR 8 is likely in response to the 2013 decision by the Court of Criminal Appeals holding that section 402.010(a)-(b) of the Government Code, which prevents a court from entering a final judgment until the AG is notified of a constitutional challenge to a statute, violated the separation-of-powers principles set forth in the Texas Constitution. See Ex Parte Lo, 424 S.W.3d 10, 29 (Tex. Crim. App. 2013)(op. on reh’g). As you may recall, the Legislature passed legislation in 2011 (HB 2425) amending the Government Code to require courts to notify the AG when constitutional challenges to state statutes were raised. The law was amended in 2013 to place the burden of notifying the court of the pleading that should be served on the AG on the party raising the constitutional challenge (SB 392).

HB 247 - Limitations on Certain Actions Arising Out of Attorney's Fee Agreements

HB 247, filed by Rep. Richard Raymond (D - Laredo), would place limitations on claims that could be brought under contingent fee agreements that comply with the statute (i.e., agreements that expressly state the method by which a fee is determined; that litigation and other expenses will deducted from the recovery; and whether litigation expenses and other expenses are deducted before or after the contingent fee is calculated). The limitations in HB 247 would also apply to contingency fee agreements in which an attorney represents two or more clients and enters into an aggregate settlement agreement of the clients’ claims if the agreement expressly discloses: 1) the existence and nature of all claims or pleas involved; 2) the nature and extent of the participation of each client in the settlement; and 3) the amount of remittance to each client and the method by which the remittance will be determined.

HB 247 would permit a party to bring a claim arising out of an agreement subject to the statute only on the grounds that the agreement was obtained by corruption, coercion, force, fraud, or other undue means, or that the agreement was forged as provided by the Texas Penal Code. Further, in a claim arising out of the settlement of matters involving multiple clients that is brought on grounds other than those permitted by HB 247, the settlement will “irrebuttably presumed” to be: 1) fully disclosed, read, understood, and voluntarily entered into by all parties to the agreement; 2) fair, accepted, reasonable, and made in the best interests of the parties by the parties or through their attorneys; and 3) final and not subject to subsequent litigation.

On the motion of a party, a court will be required to dismiss with prejudice any action involving claims arising out of an agreement that is subject to HB 247 if the action is brought on grounds other than those permitted by HB 247.

Appellate Court Budgets

This past June, in what has become a biennial event, the Legislative Budget Board (“LBB”) and the Governor’s Office of Budget, Planning & Policy (“Governor’s Office”) advised appellate courts, state agencies, and institutions of higher education that their respective appropriations requests for next session should, as a starting point, not “exceed the sum of amounts expended in fiscal year 2014 and budgeted in fiscal year 2015” (with the understanding that they could be asked to further reduce their fiscal year 2015 budgets should state fiscal conditions warrant it) and that each agency must also submit a supplemental schedule detailing how they would reduce the baseline request by an additional 10 percent (in 5 percent increments).

As you all may recall, the 83rd Legislature passed a budget that included additional funding for intermediate appellate courts that represented half the funding requested by the courts under the “similar funding for same size courts” model. The additional funds are being used, in part, to provide targeted salary increases for legal and non-legal staff at the courts and to restore some salaries and staff positions, as well as operating costs, that were cut in previous fiscal years. In spite of the additional funds appropriated last session, the appellate courts continue to operate on razor-thin budgets and can ill-afford further reductions. In fact, for practically every court of appeals, an additional 10% cut would lead to the elimination of staff positions and adversely affect appellate court operations.

In response to LBB’s and Governor’s Office’s request, the courts submitted their respective budget requests and, in the process, reminded the Governor’s Office and LBB about the negative impact of any further budget reductions. The courts are also primed to ask the 84th Legislature to fulfill the rest of their request for funds under the “similar funding for same size courts” model. Time will tell if their efforts will be successful. Stay tuned.

Interim Charges

As you may recall, Speaker Joe Straus and Lt. Governor David Dewhurst issued several interim charges for House and Senate committees to study before the Legislature convenes in January 2015. Those who are interested in perusing the entire list of charges for each chamber can click on the links above. Of the charges issued to date, only a few relate to the civil justice system. Those I have been monitoring are as follows:
  • House Committee on Judiciary & Civil Jurisprudence:
    • Examine the constitutional qualifications and term lengths for appellate court judges, and consider whether changes would benefit the public and the judiciary.
    • Study the issue of whether Regional Presiding Judges should be appointed by the Chief Justice rather than the Governor.
    • Review the methods used by state agencies and courts to prepare and publish electronic legal materials. Examine the processes used to ensure reliability and permanence of these materials and strategies used to harmonize those processes with national standards, including possible adoption of the Uniform Electronic Legal Materials Act.
    • Study issues that inhibit the use of wills and access to the probate process in Texas, particularly for low-income individuals.
  • House Committee on Government Efficiency and Reform
    • Examine the public’s accessibility to government services and agencies through the use of mobile applications and online services. (Joint charge with the House Committee on Technology).
  • Senate Jurisprudence Committee
    • Monitor the implementation of statewide electronic filing as mandated by the Texas Supreme Court to determine if any additional training or resources are needed by local jurisdictions. In addition, identifying those jurisdictions that have imposed the local transaction fee, as created by House Bill 2302, to determine how it is being utilized and if its continued collection is necessary.

The committee reports for these interim charges have yet to be published, but will be before the legislative session begins.

 


 

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