LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 17, 1997 TO: Honorable Patricia Gray, Chair IN RE: House Bill No. 172 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-As Introduced No significant fiscal implication to the State is anticipated. 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. Damages are limited to the amount of the contract. 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. 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: 781 Higher Education Coordinating Board 303 General Services Commission 302 Office of the Attorney General LBB Staff: JK ,PE ,RN ,JC