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