Senate Research Center   H.B. 2312
By: Bosse (Cain)


During the 76th legislative session, the legislature established an
administrative procedure for disputes arising on contract claims against
the state. In February 2001 the Texas Supreme Court ruled in General
Services Commission v. Little-Tex Insulation Company Inc. that the
administrative procedure established by the legislature for certain breach
of contract claims against the state was intended to be the exclusive
method available for resolving those cases.  This decision narrowed the
ability of the legislature to waive sovereign immunity.  H.B. 2312
clarifies the ability of the legislature to waive sovereign immunity.  


This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 


SECTION 1.  Amends Section 2260.002, Government Code, to provide that this
chapter does not apply to a contract executed or awarded on or before
August 30, 1999, or a contract that does not include the contract provision
required by Section 2260.004. 

SECTION 2.  Amends Section 2260.003(a), Government Code, to prohibit the
total amount of money recoverable on a claim for breach of contract under
this chapter from, after deducting the amount specified in Subsection (b),
exceeding an amount equal to the sum of the amount or fair market value of
orders or requests for additional work made by a unit of state government
to the extent that the orders or requests for additional work were actually

SECTION 3.  Amends Section 2260.005, Government Code, to provide that the
procedures contained in this chapter, subject to Section 2260.007, are
exclusive and required prerequisites to suit in accordance with Chapter
107, Civil Practice and Remedies Code. 

SECTION 4.  Amends Chapter 2260A, Government Code, by adding Section
2260.007, as follows: 

Sec. 2260.007.  LEGISLATIVE PERMISSION TO SUE.  Provides that the
legislature, notwithstanding Section 2260.005, has the authority to deny or
grant a waiver of immunity to suit against a unit of state government by
statute, resolution, or any other means the legislature may determine
appropriate.  Provides that does not and may not be interpreted to: 
  _divest the legislature of the authority to grant permission to sue a
unit of state government on the terms, conditions, and procedures that the
legislature may specify in the measure granting permission; 

  _require that the legislature, in granting or denying permission to sue a
unit of state government, comply with this chapter; or  

   _limit in any way the effect of a legislative grant of permission to sue
a unit of state government unless the grant itself provides that this
chapter may have that effect. 

SECTION 5.  Effective date: upon passage or September 1, 2001.
Makes application of this Act prospective, except for Section 2260.002(2),
Government Code, as amended by this Act, which applies according to its own