SRC-SLL H.B. 172 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 172
By: Nixon, Joe (Cain)
Jurisprudence
5-17-97
Engrossed


DIGEST 

Sovereign immunity protects the state from lawsuits.  In Texas, to seek
legal redress against the state, a party must seek permission to sue the
state from the legislature.  A critical exception to the governmental
immunity doctrine is that the state waives its immunity from liability
when it contracts.  However, even if there is no dispute about the state's
liability in a breach of contract claim, the doctrine of sovereign
immunity still bars a suit against the state unless the state has
expressly given its consent to be sued.  This bill will provide
regulations regarding contract claims against a unit of state government. 

PURPOSE

As proposed, H.B. 172 provides regulations regarding contract claims
against a unit of state government. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 5, Civil Practice and Remedies Code, by adding
Chapter 111, as follows: 

CHAPTER 111.  CONTRACT CLAIMS AGAINST THE STATE

Sec.  111.001.  DEFINITION.  Defines "unit of state government."

Sec.  111.002.  PERMISSION TO SUE GRANTED; SOVEREIGN IMMUNITY FROM SUIT
FOR CERTAIN CLAIMS.  Authorizes a claimant, subject to Section 111.003, to
bring certain suits against a unit of state government.  Prohibits the
total amount of damages awarded to a claimant in a suit brought under this
section from exceeding the total value of consideration the claimant was
to receive under the contract, including any charge accepted by the unit
of state government.  Provides that an award of consequential or similar
damages, or an award of exemplary or punitive damages, is not authorized. 

Sec.  111.003.  ALTERNATIVE DISPUTE RESOLUTION SYSTEM.  Prohibits a
claimant from bring a suit for money damages under Section 111.002 before
complying with the alternative dispute resolution process if the affected
unit of state government has established an alternative dispute resolution
process applicable to the subject matter of the claim. 

Sec.  111.004.  WAIVER OF SOVEREIGN IMMUNITY.  Provides that the state
waives its sovereign immunity to suit under common law only to the extent
authorized by Section 111.002. 

Sec.  111.005.  VENUE.  Requires a suit brought under this chapter to be
brought in Travis County. 

Sec.  111.006.  SERVICE OF CITATION.  Sets forth regulations regarding
service of  citation. 

Sec.  111.007.  PREJUDGMENT INTEREST.  Provides that Article 5069-1.05,
V.T.C.S., applies to a judgment awarded to a claimant under this chapter,
except that the applicable rate of interest may not exceed six percent. 

Sec.  111.008.  SETTLEMENT.  Authorizes the attorney general to settle or
compromise a suit brought under this chapter. 

Sec.  111.009.  PAYMENT OF JUDGMENT OR SETTLEMENT.  Sets forth regulations
regarding the payment of judgment or settlement. 


Sec.  111.010.  EXECUTION ON STATE PROPERTY NOT AUTHORIZED.  Provides that
this chapter does not authorize execution on property owned by the state
or a unit of government. 

Sec.  111.011.  APPLICATION OF OTHER LAWS.  Provides that Chapter 107 does
not apply to a suit brought under this chapter. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Emergency clause.