By Armbrister                                    S.B. No. 846

      75R5054 MLS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the waiver of sovereign immunity in certain contract

 1-3     actions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Title 5, Civil Practice and Remedies Code, is

 1-6     amended by adding Chapter 111 to read as follows:

 1-7         CHAPTER 111.  PERMISSION TO SUE THE STATE; CONTRACT ACTIONS

 1-8           Sec. 111.001.  DEFINITIONS.  In this chapter:

 1-9                 (1)  "Claimant" means a person with a claim described

1-10     by Section 111.002.

1-11                 (2)  "Unit of state government" means the state or an

1-12     agency, department, bureau, board, commission, office, council,

1-13     court, institution of higher education as that term is defined by

1-14     Section 61.003, Education Code, or another entity that is created

1-15     by the constitution or a statute of this state and that has

1-16     statewide jurisdiction.

1-17           Sec. 111.002.  APPLICABILITY.  This chapter applies only to a

1-18     cause of action arising from the breach of a contract with a unit

1-19     of state government.

1-20           Sec. 111.003.  PERMISSION TO SUE; SOVEREIGN IMMUNITY FROM

1-21     SUIT FOR CERTAIN CLAIMS.  (a)  A claimant may bring an action

1-22     against a unit of state government that alleges that the unit of

1-23     state government has breached a contract with the claimant.

1-24           (b)  The total amount of damages awarded to a claimant in a

 2-1     suit brought under this chapter may not exceed the total value of

 2-2     the contract.

 2-3           Sec. 111.004.  WAIVER OF SOVEREIGN IMMUNITY.  The state

 2-4     waives its sovereign immunity from suit and liability under common

 2-5     law to the extent authorized by Section 111.003.

 2-6           Sec. 111.005.  INAPPLICABILITY TO CERTAIN CLAIMS.  This

 2-7     chapter does not apply to a claim for personal injury or wrongful

 2-8     death arising from a breach of contract.

 2-9           Sec. 111.006.  VENUE.  A suit brought under this chapter

2-10     shall be brought in Travis County.

2-11           Sec. 111.007.  LIMITATIONS PERIOD.  A claimant must bring

2-12     suit under this chapter not later than two years after the date the

2-13     cause of action accrues.

2-14           Sec. 111.008.  SERVICE OF CITATION.  In an action to which

2-15     this chapter applies, service of citation and other required

2-16     process must be made on the attorney general and on the

2-17     administrative head of the unit of state government with which the

2-18     person contracted.

2-19           Sec. 111.009.  PAYMENT OF JUDGMENT OR SETTLEMENT.  A unit of

2-20     state government shall pay a judgment or settlement under this

2-21     chapter from money appropriated to the unit of state government

2-22     that the unit of state government is authorized to use for the

2-23     goods, services, or property obtained under the contract on which

2-24     the suit was based.

2-25           SECTION 2.  This Act takes effect September 1, 1997.

2-26           SECTION 3.  (a) This Act applies to:

2-27                 (1)  a contract entered into on or after the effective

 3-1     date of this Act; and

 3-2                 (2)  a contract entered into not more than four years

 3-3     before the effective date of this Act.

 3-4           (b)  A contract entered into more than four years before the

 3-5     effective date of this Act is governed by the law as it existed

 3-6     immediately before the effective date of this Act, and that law is

 3-7     continued in effect for that purpose.

 3-8           SECTION 4.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended.