1-1                                   AN ACT
 1-2     relating to the resolution of certain contract claims against the
 1-3     state.
 1-5           SECTION 1. Section 2260.002, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 2260.002.  APPLICABILITY. This chapter does not apply
 1-8     to:
 1-9                 (1)  a claim for personal injury or wrongful death
1-10     arising from the breach of a contract;
1-11                 (2)  a contract executed or awarded on or before August
1-12     30, 1999; or
1-13                 (3)  a contract that does not include the contract
1-14     provision required by Section 2260.004.
1-15           SECTION 2. Section 2260.003(a), Government Code, is amended
1-16     to read as follows:
1-17           (a)  The total amount of money recoverable on a claim for
1-18     breach of contract under this chapter may not, after deducting the
1-19     amount specified in Subsection (b), exceed an amount equal to the
1-20     sum of:
1-21                 (1)  the balance due and owing on the contract price;
1-22     and
1-23                 (2)  the amount or fair market value of orders or
1-24     requests [, including orders] for additional work made by a unit of
 2-1     state government to the extent that the orders or requests for
 2-2     additional work were actually performed.
 2-3           SECTION 3. Section 2260.005, Government Code, is amended to
 2-4     read as follows:
 2-5           Sec. 2260.005.  EXCLUSIVE PROCEDURE. Subject to Section
 2-6     2260.007, the [The] procedures contained in this chapter are
 2-7     exclusive and required prerequisites to suit in accordance with
 2-8     Chapter 107, Civil Practice and Remedies Code.
 2-9           SECTION 4. Subchapter A, Chapter 2260, Government Code, is
2-10     amended by adding Section 2260.007 to read as follows:
2-11           Sec. 2260.007.  LEGISLATIVE PERMISSION TO SUE. (a)
2-12     Notwithstanding Section 2260.005, the legislature retains the
2-13     authority to deny or grant a waiver of immunity to suit against a
2-14     unit of state government by statute, resolution, or any other means
2-15     the legislature may determine appropriate.
2-16           (b)  This chapter does not and may not be interpreted to:
2-17                 (1)  divest the legislature of the authority to grant
2-18     permission to sue a unit of state government on the terms,
2-19     conditions, and procedures that the legislature may specify in the
2-20     measure granting the permission;
2-21                 (2)  require that the legislature, in granting or
2-22     denying permission to sue a unit of state government, comply with
2-23     this chapter; or
2-24                 (3)  limit in any way the effect of a legislative grant
2-25     of permission to sue a unit of state government unless the grant
2-26     itself provides that this chapter may have that effect.
2-27           SECTION 5.  (a)  This Act takes effect immediately if it
 3-1     receives a vote of two-thirds of all the members elected to each
 3-2     house, as provided by Section 39, Article III, Texas Constitution.
 3-3     If this Act does not receive the vote necessary for immediate
 3-4     effect, this Act takes effect September 1, 2001.
 3-5           (b)  Except for Section 2260.002(2), Government Code, as
 3-6     amended by this Act, which applies according to its own terms, this
 3-7     Act applies only to a contract executed on or after the effective
 3-8     date of this Act.  A contract executed before the effective date of
 3-9     this Act is governed by the law applicable to the contract
3-10     immediately before the effective date of this Act, and that law is
3-11     continued in effect for that purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2312 was passed by the House on May
         2, 2001, by the following vote:  Yeas 144, Nays 0, 2 present, not
                                                 Chief Clerk of the House
               I certify that H.B. No. 2312 was passed by the Senate on May
         17, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
                                                 Secretary of the Senate
         APPROVED:  __________________________