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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring legislative consent or approval of the |
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settlement or compromise of a claim or action against the state that |
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will involve state expenditures exceeding a certain amount. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 5, Civil Practice and Remedies Code, is |
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amended by adding Chapter 111 to read as follows: |
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CHAPTER 111. LIMITATION ON SETTLEMENT |
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OF CLAIM OR ACTION AGAINST THE STATE |
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Sec. 111.001. PURPOSE; APPLICABILITY. (a) The purposes of |
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this chapter include providing a means for the legislature to |
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determine the extent to which this state waives its sovereign |
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immunity with regard to a settlement of a claim or action against |
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the state that requires an expenditure of state funds. |
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(b) This chapter applies to any settlement described by |
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Section 111.003(a) of a claim or action against this state seeking |
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any relief under any theory of recovery, including a mandamus |
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action against a state officer or official, that is brought or may |
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be brought in or before any court, administrative agency, or other |
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tribunal. |
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(c) For purposes of this chapter, a reference to this state |
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includes any agency, institution, or other entity of state |
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government. |
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(d) This chapter does not apply to a refund of a tax, fee, or |
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any related penalty or interest. |
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Sec. 111.002. DEFINITION. In this chapter, "settlement" |
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includes a consent decree, an agreed judgment, or any other |
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settlement or compromise of a claim or action. |
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Sec. 111.003. LIMITATION ON SETTLEMENT WITHOUT LEGISLATIVE |
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CONSENT OR APPROVAL. (a) The attorney general or other attorney |
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representing this state may not enter into a settlement of a claim |
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or action against this state without the consent or approval of the |
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legislature in accordance with this chapter if the settlement: |
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(1) requires this state to pay total monetary damages |
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in an amount that exceeds $5,000,000; or |
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(2) commits this state to a course of action that in |
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reasonable probability will entail an expenditure of state funds in |
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an amount that exceeds $10,000,000 during the two-year period |
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beginning on the date that the state is to begin the course of |
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action under the settlement. |
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(b) A settlement described by Subsection (a) entered into |
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without the prior consent or approval of the legislature is void |
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unless the settlement is expressly conditioned on obtaining |
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subsequent approval by the legislature in accordance with this |
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chapter. |
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Sec. 111.004. FORM OF CONSENT OR APPROVAL. (a) The |
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legislature may consent to or approve a settlement described by |
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Section 111.003(a) only by a resolution adopted by both houses of |
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the legislature. |
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(b) Legislative consent under this chapter may but is not |
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required to be expressed in the form of a resolution granting |
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permission to sue the state that limits the relief to which a |
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claimant may be entitled or provides additional conditions to which |
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a grant of permission to sue is subject. |
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Sec. 111.005. APPROPRIATIONS. (a) An appropriation of |
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state funds to pay or comply with a settlement does not constitute |
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consent to or approval of the settlement for purposes of this |
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chapter. |
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(b) A resolution consenting to or approving a settlement |
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under this chapter does not and may not require the legislature to |
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appropriate a particular amount for a particular purpose. |
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Sec. 111.006. REPORT BY ATTORNEY GENERAL. Not later than |
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September 1 of each even-numbered year, the attorney general shall |
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send to the lieutenant governor, the speaker of the house of |
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representatives, and each member of the Senate Finance Committee |
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and the House Appropriations Committee a report describing each |
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claim or action pending as of September 1 of that year that has been |
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or that in the opinion of the attorney general may be settled in a |
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manner that will require prior consent or subsequent approval by |
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the legislature under this chapter. |
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SECTION 2. Chapter 111, Civil Practice and Remedies Code, |
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as added by this Act, applies only to a consent decree, agreed |
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judgment, or other settlement or compromise of a claim or action |
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entered into on or after the effective date of this Act. A consent |
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decree, agreed judgment, or other settlement or compromise of a |
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claim or action entered into before the effective date of this Act |
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is governed by applicable law in existence on the date the consent |
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decree, agreed judgment, or other settlement or compromise is |
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entered into. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |