By Nixon H.B. No. 172 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to contract claims against a unit of state government. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 5, Civil Practice and Remedies Code, is 1-5 amended by adding Chapter 111 to read as follows: 1-6 CHAPTER 111. CONTRACT CLAIMS AGAINST THE STATE 1-7 Sec. 111.001. DEFINITION. In this chapter, "unit of state 1-8 government" means the state or an agency, department, commission, 1-9 bureau, board, office, council, court, or other entity that is in 1-10 any branch of state government and that is created by the 1-11 constitution or a statute of this state, including a university 1-12 system or institution of higher education as defined by Section 1-13 61.003, Education Code. The term does not include a county, 1-14 municipality, court of a county or municipality, special-purpose 1-15 district, or other political subdivision of this state. 1-16 Sec. 111.002. PERMISSION TO SUE GRANTED; SOVEREIGN IMMUNITY 1-17 FROM SUIT FOR CERTAIN CLAIMS. (a) Subject to Section 111.003, a 1-18 claimant may bring a suit against a unit of state government that: 1-19 (1) alleges that the unit of state government has 1-20 breached a written contract with the claimant for: 1-21 (A) goods; or 1-22 (B) engineering or construction services; and 1-23 (2) is brought to recover money damages or, if 1-24 applicable, to compel alternative dispute resolution. 2-1 (b) The total amount of damages awarded to a claimant in a 2-2 suit brought under this section may not exceed the total value of 2-3 consideration the claimant was to receive under the contract, 2-4 including any charge accepted by the unit of state government. 2-5 (c) An award of the following damages is not authorized: 2-6 (1) consequential or similar damages; or 2-7 (2) exemplary or punitive damages. 2-8 Sec. 111.003. ALTERNATIVE DISPUTE RESOLUTION SYSTEM. If the 2-9 affected unit of state government has established an alternative 2-10 dispute resolution process applicable to the subject matter of the 2-11 claim, a claimant may not bring suit for money damages under 2-12 Section 111.002 before complying with the alternative dispute 2-13 resolution process. 2-14 Sec. 111.004. WAIVER OF SOVEREIGN IMMUNITY. The state 2-15 waives its sovereign immunity to suit under common law only to the 2-16 extent authorized by Section 111.002. 2-17 Sec. 111.005. VENUE. A suit brought under this chapter 2-18 shall be brought in Travis County. 2-19 Sec. 111.006. SERVICE OF CITATION. In a suit brought under 2-20 this chapter, service of citation and other required process must 2-21 be made on: 2-22 (1) the attorney general; and 2-23 (2) the unit of state government with which the 2-24 claimant contracted. 2-25 Sec. 111.007. PREJUDGMENT INTEREST. Article 1.05, Title 79, 2-26 Revised Statutes (Article 5069-1.05, Vernon's Texas Civil 2-27 Statutes), applies to a judgment awarded to a claimant under this 3-1 chapter, except that the applicable rate of interest may not exceed 3-2 six percent. 3-3 Sec. 111.008. SETTLEMENT. The attorney general may settle 3-4 or compromise a suit brought under this chapter. 3-5 Sec. 111.009. PAYMENT OF JUDGMENT OR SETTLEMENT. (a) A 3-6 unit of state government shall pay a judgment or settlement under 3-7 this chapter from money appropriated to the unit of state 3-8 government that the unit of state government is authorized to use 3-9 for the goods, services, or property obtained under the contract on 3-10 which the suit was based. 3-11 (b) To the extent money described by Subsection (a) is not 3-12 available to make the payment, the judgment or settlement may be 3-13 paid only from money appropriated by the legislature for payment of 3-14 the judgment or settlement. 3-15 Sec. 111.010. EXECUTION ON STATE PROPERTY NOT AUTHORIZED. 3-16 This chapter does not authorize execution on property owned by the 3-17 state or a unit of state government. 3-18 Sec. 111.011. APPLICATION OF OTHER LAWS. Chapter 107 does 3-19 not apply to a suit brought under this chapter. 3-20 SECTION 2. This Act takes effect September 1, 1997. 3-21 SECTION 3. (a) This Act applies only to a suit based on a 3-22 written contract described by Section 111.002, Civil Practice and 3-23 Remedies Code, as added by this Act, entered into by a unit of 3-24 state government on or after the effective date of this Act. A 3-25 suit based on a contract entered into before the effective date of 3-26 this Act is governed by the law as it existed immediately before 3-27 the effective date of this Act, and that law is continued in effect 4-1 for this purpose. 4-2 (b) For purposes of this section, a contract is entered into 4-3 after the effective date of this Act if it is executed or renewed 4-4 after the effective date of this Act. 4-5 SECTION 4. The importance of this legislation and the 4-6 crowded condition of the calendars in both houses create an 4-7 emergency and an imperative public necessity that the 4-8 constitutional rule requiring bills to be read on three several 4-9 days in each house be suspended, and this rule is hereby suspended.