LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
May 5, 2003

TO:
Honorable Joe Nixon, Chair, House Committee on Civil Practices
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
SB1017 by Wentworth (Relating to the ability of a county to sue and be sued.), Committee Report 2nd House, Substituted

No fiscal implication to the State is anticipated.

The bill would prohibit a person from filing a suit against a county or an elected or appointed county official acting in their capacity as an elected or appointed county official unless the person first presents a claim to the commissioners court and the commissioners neglect or refuse to act on the claim before the sixtieth day after the date the claim is presented.

Further, the bill would authorize a county that is a party to a written contract for the sale of goods or for engineering or construction services to sue or be sued, plead or be impleaded, or defend or be defended on a claim arising under the contract. The bill would place a limit on the total amount of money that could be recovered from a county when a lawsuit for breach of contract has been filed.

The bill would take effect September 1, 2003.

Under current statute, a person with a claim against a county must present that claim to the commissioners court and the claim must be neglected or refused before the person is allowed to sue the county, but no time frame is identified. The proposed revised statute would set a specific time frame in which the county commissioners court must respond to a claim and would also add that a person could bring a claim, and if applicable later file suit, against an elected or appointed county official.

Under current statute, counties are immune from liability for contract suits. The proposed addition to statute would remove that immunity with relationship to contracts for the sale of goods or for engineering or construction services.

According to the Office of Court Administration, implementation of the bill would not result in a fiscal impact on the state, nor on the local court systems, but removing a county's immunity from liability for contract suits presents the potential for counties to incur costs in legal expenses and in any judgments a county may lose, within the limits set by the provisions of the bill.


Local Government Impact

Costs to a county would depend on whether or not there are lawsuits filed against the county, how many suits are filed, and the outcome of each trial.


Source Agencies:
212 Office of Court Administration, Texas Judicial Council
LBB Staff:
JK, GO, DLBa