80R3019 ATP-F

By: Turner H.B. No. 1478

A BILL TO BE ENTITLED

AN ACT

relating to the waiver of immunity from suit of certain local government entities for claims arising under employment law.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Chapter 271, Local Government Code, is amended to read as follows:

CHAPTER 271. PURCHASING, [AND] CONTRACTING, AND RELATED AUTHORITY

OF MUNICIPALITIES, COUNTIES, AND CERTAIN

OTHER LOCAL GOVERNMENTS

SECTION 2. The heading to Subchapter I, Chapter 271, Local Government Code, is amended to read as follows:

SUBCHAPTER I. ADJUDICATION OF CONTRACT OR EMPLOYMENT-RELATED

CLAIMS AGAINST [ARISING UNDER WRITTEN CONTRACTS WITH] LOCAL

GOVERNMENTAL ENTITIES

SECTION 3. Section 271.152, Local Government Code, is amended to read as follows:

Sec. 271.152. WAIVER OF IMMUNITY TO SUIT FOR CERTAIN CLAIMS. A local governmental entity that is authorized by statute or the constitution to enter into a contract and [that] enters into a contract subject to this subchapter, or that is governed by a state statute or local ordinance affecting the employment rights of a local governmental entity's employees, waives sovereign immunity to suit for the purpose of adjudicating a claim for breach of the contract or a violation of statute or ordinance, subject to the terms and conditions of this subchapter.

SECTION 4. Section 271.153, Local Government Code, is amended by adding Subsection (c) to read as follows:

(c) The total amount of money awarded in an adjudication brought against a local governmental entity for violation of a statute or ordinance affecting the employment rights of a local governmental entity's employees is limited to:

(1) the amount necessary to make the affected individual whole for any violation of rights found to have occurred; and

(2) interest as allowed by law.

SECTION 5. Section 271.155, Local Government Code, is amended to read as follows:

Sec. 271.155. NO WAIVER OF OTHER DEFENSES. This subchapter does not waive a defense or a limitation on damages available to a person [party to a contract], other than a bar against suit based on sovereign immunity.

SECTION 6. Section 271.159, Local Government Code, is amended to read as follows:

Sec. 271.159. NO RECOVERY OF ATTORNEY'S FEES. (a) Attorney's fees incurred by a local governmental entity or any other party in the adjudication of a claim under a contract subject to this subchapter by or against a local governmental entity shall not be awarded to any party in the adjudication unless the local governmental entity has entered into a written agreement that expressly authorizes the prevailing party in the adjudication to recover its reasonable and necessary attorney's fees by specific reference to this section.

(b) Attorney's fees incurred by a local governmental entity or any other party in the adjudication of a claim under a statute or ordinance affecting the employment rights of a local governmental entity's employees shall not be awarded to any party in the adjudication unless authorized by a statute outside this subchapter.

SECTION 7. The changes in law made by this Act to Subchapter I, Chapter 271, Local Government Code, apply to any action alleging a violation of Title 5, Local Government Code, or another state statute or a local ordinance affecting employment that has not been finally adjudicated on the effective date of this Act.

SECTION 8. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.