HBA-NIK H.B. 2456 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2456 By: Hartnett Civil Practices 3/14/1999 Introduced BACKGROUND AND PURPOSE In Williams v. Khalaf, 802 S.W. 2d 651 (Tex. 1990), the Texas Supreme Court held Section 16.004, Civil Procedures and Remedies Code, to establish a four-year statute of limitations for fraud and breach of fiduciary duty. Prior to that holding, Texas courts held that fraud and breach of fiduciary duty were subject to a two-year statute of limitations. Numerous courts after Williams have held that the four-year statute of limitations also applies. H.B. 2456 codifies the holding by the Texas Supreme Court that puts a four-year statute of limitations on actions to be taken for fraud and breach of fiduciary duty. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 16.004(a), Civil Practice and Remedies Code, as follows: (a) Adds fraud and breach of fiduciary duty to the actions a person must bring suit on no later than four years after the day the cause of action accrues. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.