BILL ANALYSIS



S.B. 1581
By: Turner, Jim (Gallego)
May 16, 1995
Committee Report (Unamended)


BACKGROUND

The Texas Supreme Court recently ruled that the Declaratory
Judgment Act waived sovereign immunity, thus allowing awards of
attorney's fees against governmental units.  This decision could
pose a significant financial burden on governmental units.  Also,
the possibility of such awards against the state makes it difficult
for the Attorney General to intervene in cases in which the
constitutionality of a statute, ordinance or franchise is
challenged.

PURPOSE

S.B. 1581 requires that when a court considers imposing attorney's
fees in a case involving a governmental unit, the court must take
into account the financial impact on the party against which fees
would be assessed.  Further, the bill would not allow attorney's
fees to be awarded against the state when the Attorney General
intervenes in a suit in order to defend the constitutionality of a
statute, ordinance or franchise.

RULEMAKING AUTHORITY

It is the Committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 37.009, Civil Practice and Remedies
Code, to require a court considering an award of attorney's fees in
a declaratory judgment suit involving a governmental unit to
consider the financial impact of the award on the party against
which fees would be assessed.  Also amends to specify that this
section does not authorize an award of attorney's fees against the
state in an action in which the Attorney General intervenes under
Section 37.006(b).

SECTION 2.  Provides that if any section, sentence, clause, or part
of the Act is held invalid, such invalidity shall not affect the
remainder.

SECTION 3.  Emergency clause.  Makes Act effective upon passage.

SUMMARY OF COMMITTEE ACTION

S.B. 1581 was considered by the Committee on Civil Practices in
formal meeting on May 16, 1995. The bill was reported favorably,
without amendment, with the recommendation that it do pass and be
printed by a record vote of five ayes, one nay, zero pnv, and three
absent.