By Nixon H.B. No. 172
Substitute the following for H.B. No. 172:
By Nixon C.S.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) A claimant may bring a suit
1-18 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. WAIVER OF SOVEREIGN IMMUNITY. The state
2-9 waives its sovereign immunity to suit under common law only to the
2-10 extent authorized by Section 111.002.
2-11 Sec. 111.004. VENUE. A suit brought under this chapter
2-12 shall be brought in Travis County.
2-13 Sec. 111.005. SERVICE OF CITATION. In a suit brought under
2-14 this chapter, service of citation and other required process must
2-15 be made on:
2-16 (1) the attorney general; and
2-17 (2) the unit of state government with which the
2-18 claimant contracted.
2-19 Sec. 111.006. PREJUDGMENT INTEREST. Article 1.05, Title 79,
2-20 Revised Statutes (Article 5069-1.05, Vernon's Texas Civil
2-21 Statutes), applies to a judgment awarded to a claimant under this
2-22 chapter, except that the applicable rate of interest may not exceed
2-23 6 percent.
2-24 Sec. 111.007. SETTLEMENT. The attorney general may settle
2-25 or compromise a suit brought under this chapter.
2-26 Sec. 111.008. PAYMENT OF JUDGMENT OR SETTLEMENT. (a) A
2-27 unit of state government shall pay a judgment or settlement under
3-1 this chapter from money appropriated to the unit of state
3-2 government that the unit of state government is authorized to use
3-3 for the goods, services, or property obtained under the contract on
3-4 which the suit was based.
3-5 (b) To the extent money described by Subsection (a) is not
3-6 available to make the payment, the judgment or settlement may be
3-7 paid only from money appropriated by the legislature for payment of
3-8 the judgment or settlement.
3-9 Sec. 111.009. EXECUTION ON STATE PROPERTY NOT AUTHORIZED.
3-10 This chapter does not authorize execution on property owned by the
3-11 state or a unit of state government.
3-12 Sec. 111.010. APPLICATION OF OTHER LAWS. Chapter 107 does
3-13 not apply to a suit brought under this chapter.
3-14 SECTION 2. This Act takes effect September 1, 1997.
3-15 SECTION 3. (a) This Act applies only to a suit based on a
3-16 written contract described by Section 111.002, Civil Practice and
3-17 Remedies Code, as added by this Act, entered into by a unit of
3-18 state government on or after the effective date of this Act. A
3-19 suit based on a contract entered into before the effective date of
3-20 this Act is governed by the law as it existed immediately before
3-21 the effective date of this Act, and that law is continued in effect
3-22 for this purpose.
3-23 (b) For purposes of this section, a contract is entered into
3-24 after the effective date of this Act if it is executed or renewed
3-25 after the effective date of this Act.
3-26 SECTION 4. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
4-1 emergency and an imperative public necessity that the
4-2 constitutional rule requiring bills to be read on three several
4-3 days in each house be suspended, and this rule is hereby suspended.