C.S.S.B. 1017 78(R)    BILL ANALYSIS


C.S.S.B. 1017
By: Wentworth
Civil Practices
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

In May 2002, the Texas Supreme Court held that Section 89.004, Local
Government Code, does not clearly and unambiguously waive immunity from
suit for claims against counties.  

C.S.S.B. 1017 prohibits a person from filing suit against a county or
certain county officials unless the person follows certain procedures.
This bill also amends Subchapter A, Chapter 262, Local Government Code, to
clearly state that a county may sue or be sued. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

CSSB 1017 amends Section 89.004(a), Local Government Code, to prohibit a
person from filing suit on a claim against a county or an elected or
appointed county official in the official's capacity as an appointed or
elected official unless the person has presented the claim to the
commissioners court and the commissioners court neglects or refuses to pay
all or part of the claim before the 60th day after the date of the
presentation of the claim. It amends Subchapter A, Chapter 262, Local
Government Code, by adding Section 262.007, which authorizes a county that
is a party to a written contract to sue or be sued, plead or be impleaded,
or defend or be defended on a claim arising under the contract.  Requires
a suit on a contract brought by a county to be brought in the name of the
county, and a suit on a contract brought against a county to identify the
county by name.  The total amount of money recoverable may not exceed an
amount equal to the sum of the balance due and owed by the county under
the contact, the reasonable value of change orders, and reasonable
attorney's fees.  An award of damages under this section may not include
consequential or exemplary damages.  Clarifies that this section does not
waive a defense to a party to a contract, other than a bar against suit
based on sovereign immunity. 

EFFECTIVE DATE

September 1, 2003

COMPARISON OF ORIGINAL TO SUBSTITUTE

CSSB 1017 differs from the engrossed version by limiting the total amount
of money recoverable from a county  to an amount equal to the sum of the
balance due and owed by the county, the reasonable value of change orders,
and reasonable attorney's fees.  It also adds that an award of damages
under this section may not include consequential or exemplary damages. The
substitute narrows the applicability to written contracts for the sales of
goods or for engineering or construction services.