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.