LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Patricia Gray, Chair            IN RE:  House Bill No. 172, Committee Report 1st House, Substituted
          Committee on Civil Practices                              By: Nixon, Joe
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB172 ( Relating 
to contract claims against a unit of state government.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB172-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated.


         

         
 
Fiscal Analysis

The bill would amend Title 5, Civil Practice 
and Remedies Code, by adding Chapter 111 which would waive the 
state's sovereign immunity in suits against the state alleging 
breach of a written contract for goods or engineering or construction 
services, and is brought to recover money damages or, if applicable, 
to compel alternative dispute resolution.  Damages would be 
limited to the amount of the contract, including any charge 
accepted by the unit of state government.  The Attorney General 
would be allowed to settle a suit brought under the provisions 
of the bill.  

State agencies would pay judgments or settlements 
brought about by the bill out of funds appropriated for the 
property, goods, or services that the contract would provide. 
 If agencies cannot pay such claims, the Legislature would be 
authorized to appropriate funds for the payment of these claims. 
 Venue for suits authorized under this bill would be in Travis 
County.

The cost to the state for claims arising pursuant 
to the bill would depend on the extent to which the Legislature 
appropriates funds for judgments or settlements that state agencies 
cannot pay.  The Office of the Attorney General could provide 
the additional legal services required utilizing current resources.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   302   Office of the Attorney General
                                         781   Higher Education Coordinating Board
                                         303   General Services Commission
                                         
                      LBB Staff:   JK ,PE ,JC