Civil Practice and Remedies Code §102.002

(a) A local government may pay actual damages awarded against an employee of the local government if the damages: (1) result from an act or omission of the employee in the course and scope of his employment for the local government; and (2) arise from a cause of action for negligence. (b) The local government may also pay the court costs and attorney's fees awarded against an employee for whom the local government may pay damages under this section. (c) Except as provided by Subsection (e), a local government may not pay damages awarded against an employee that: (1) arise from a cause of action for official misconduct; or (2) arise from a cause of action involving a wilful or wrongful act or omission or an act or omission constituting gross negligence. (d) A local government may not pay damages awarded against an employee to the extent the damages are recoverable under an insurance contract or a self-insurance plan authorized by statute. (e) A local government that does not give a bond under Section 1105.101 (b), Estates Code, shall pay damages awarded against an employee of the local government arising from a cause of action described by Subsection (c) if the liability results from the employee's appointment as guardian of the person or estate of a ward under the Estates Code and the action or omission for which the employee was found liable was in the course and scope of the person's employment with the local government.