1-1                                   AN ACT
 1-2     relating to the use of certain information regarding a current or
 1-3     former employee.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 3, Labor Code, is amended by adding Chapter
 1-6     103 to read as follows:
 1-7        CHAPTER 103.  DISCLOSURE BY EMPLOYER OF INFORMATION REGARDING
 1-8                    CERTAIN EMPLOYEES OR FORMER EMPLOYEES
 1-9           Sec. 103.001.  PURPOSE; LEGISLATIVE FINDING.  The legislature
1-10     finds that the disclosure by an employer of truthful information
1-11     regarding a current or former employee protects employment
1-12     relationships and benefits the public welfare.  It is the intent of
1-13     the legislature that an employer who makes a disclosure based on
1-14     information obtained by the employer that any employer would
1-15     reasonably believe to be true should be immune from civil liability
1-16     for that disclosure.
1-17           Sec. 103.002.  DEFINITIONS.  In this chapter:
1-18                 (1)  "Employee" means a person who performs services
1-19     for an employer, whether or not for compensation.
1-20                 (2)  "Employer" means a person who has one or more
1-21     employees or other individuals who perform services under a
1-22     contract of hire or service, whether expressed or implied, or oral
1-23     or written.
1-24                 (3)  "Job performance" means the manner in which an
 2-1     employee performs a position of employment and includes an analysis
 2-2     of the employee's  attendance at work, attitudes, effort,
 2-3     knowledge, behaviors, and skills.
 2-4                 (4)  "Prospective employee" means any person who has
 2-5     made an application, either oral or written, or has sent a resume
 2-6     or other correspondence indicating an interest in employment.
 2-7                 (5)  "Prospective employer" means an employer to whom a
 2-8     prospective employee has made an application, either oral or
 2-9     written, or sent a resume or other correspondence expressing an
2-10     interest in employment.
2-11           Sec. 103.003.  AUTHORIZED DISCLOSURE; APPLICATION TO CERTAIN
2-12     EMPLOYEES.  (a)  An employer may disclose information about a
2-13     current or former employee's job performance to a prospective
2-14     employer of the current or former employee on  the request of the
2-15     prospective employer or the employee.
2-16           (b)  An employer may not disclose information about a
2-17     licensed nurse or licensed vocational nurse that relates to conduct
2-18     that is protected under Article 4525d, Revised Statutes.  The
2-19     employer must provide an affected nurse an opportunity to submit a
2-20     statement of reasonable length to the employer to establish the
2-21     application of Article 4525d, Revised Statutes.
2-22           Sec. 103.004.  IMMUNITY FROM CIVIL LIABILITY; EMPLOYER
2-23     REPRESENTATIVES.  (a)  An employer who discloses information about
2-24     a current or former employee under Section 103.003 is immune from
2-25     civil liability for that disclosure or any damages proximately
2-26     caused by that disclosure unless it is proven by clear and
2-27     convincing evidence that the information disclosed was known by
 3-1     that employer to be false at the time the disclosure was made or
 3-2     that the disclosure was made with malice or in reckless disregard
 3-3     for the truth or falsity of the information disclosed.  For
 3-4     purposes of this subsection, "known" means actual knowledge based
 3-5     on information relating to the employee, including any information
 3-6     maintained in a file by the employer on that employee.
 3-7           (b)  This chapter applies to a managerial employee or other
 3-8     representative of the employer who is authorized to provide and who
 3-9     provides information in accordance with this chapter in the same
3-10     manner that it applies to an employer.
3-11           Sec. 103.005.  EMPLOYMENT REFERENCE.  This chapter does not
3-12     require an employer to provide an employment reference to or about
3-13     a current or former employee.
3-14           SECTION 2.  Chapter 103, Labor Code, as added by this Act,
3-15     applies only to a cause of action that accrues on or after the
3-16     effective date of this Act.  A cause of action that accrues before
3-17     that date is governed by the law as it existed immediately before
3-18     the effective date of this Act, and that law is continued in effect
3-19     for that purpose.
3-20           SECTION 3.  This Act takes effect September 1, 1999.
3-21           SECTION 4.  The importance of this legislation and the
3-22     crowded condition of the calendars in both houses create an
3-23     emergency and an imperative public necessity that the
3-24     constitutional rule requiring bills to be read on three several
3-25     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 341 was passed by the House on April
         15, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 341 on May 13, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 341 was passed by the Senate, with
         amendments, on May 11, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor