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