Texas 2009 - 81st Regular

Texas Senate Bill SB1183 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6515 TJS-D
2	2	By: Wentworth S.B. No. 1183
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the waiver of sovereign immunity for certain claims
8	8	arising under written contracts with state agencies.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 5, Civil Practice and Remedies Code, is
11	11	amended by adding Chapter 114 to read as follows:
12	12	CHAPTER 114. ADJUDICATION OF CLAIMS ARISING UNDER WRITTEN
13	13	CONTRACTS WITH STATE AGENCIES
14	14	Sec. 114.001. DEFINITIONS. In this chapter:
15	15	(1) "Adjudication" of a claim means the bringing of a
16	16	civil suit and prosecution to final judgment in county or state
17	17	court and includes the bringing of an arbitration proceeding and
18	18	prosecution to final resolution in accordance with any mandatory
19	19	procedures established in the contract subject to this chapter for
20	20	the arbitration proceedings.
21	21	(2) "Contract subject to this chapter" means a written
22	22	contract stating the essential terms of the agreement for providing
23	23	goods or services to the state agency that is properly executed on
24	24	behalf of the state agency.
25	25	(3) "State agency" means an agency, department,
26	26	commission, bureau, board, office, council, court, or other entity
27	27	that is in any branch of state government and that is created by the
28	28	constitution or a statute of this state, including a university
29	29	system or a system of higher education. The term does not include a
30	30	county, municipality, court of a county or municipality, special
31	31	purpose district, or other political subdivision of this state.
32	32	Sec. 114.002. APPLICABILITY. This chapter applies only to
33	33	a claim for breach of contract in which the matter in controversy
34	34	exceeds $250,000, exclusive of interest.
35	35	Sec. 114.003. WAIVER OF IMMUNITY TO SUIT FOR CERTAIN
36	36	CLAIMS. A state agency that is authorized by statute or the
37	37	constitution to enter into a contract and that enters into a
38	38	contract subject to this chapter waives sovereign immunity to suit
39	39	for the purpose of adjudicating a claim for breach of an express or
40	40	implied provision of the contract, subject to the terms and
41	41	conditions of this chapter.
42	42	Sec. 114.004. LIMITATIONS ON ADJUDICATION AWARDS. (a) The
43	43	total amount of money awarded in an adjudication brought against a
44	44	state agency for breach of an express or implied provision of a
45	45	contract subject to this chapter is limited to the following:
46	46	(1) the balance due and owed by the state agency under
47	47	the contract as it may have been amended, including any amount owed
48	48	as compensation for the increased cost to perform the work as a
49	49	direct result of owner-caused delays or acceleration;
50	50	(2) the amount owed for change orders or additional
51	51	work required to carry out the contract; and
52	52	(3) interest as allowed by law.
53	53	(b) Damages awarded in an adjudication brought against a
54	54	state agency arising under a contract subject to this chapter may
55	55	not include:
56	56	(1) consequential damages, except as allowed under
57	57	Subsection (a)(1);
58	58	(2) exemplary damages; or
59	59	(3) damages for unabsorbed home office overhead.
60	60	Sec. 114.005. CONTRACTUAL ADJUDICATION PROCEDURES
61	61	ENFORCEABLE. Adjudication procedures, including requirements for
62	62	serving notices or engaging in alternative dispute resolution
63	63	proceedings before bringing a suit or an arbitration proceeding,
64	64	that are stated in the contract subject to this chapter or that are
65	65	established by the state agency and expressly incorporated into the
66	66	contract are enforceable except to the extent those procedures
67	67	conflict with the terms of this chapter.
68	68	Sec. 114.006. NO WAIVER OF OTHER DEFENSES. This chapter
69	69	does not waive a defense or a limitation on damages available to a
70	70	party to a contract, other than a bar against suit based on
71	71	sovereign immunity.
72	72	Sec. 114.007. NO WAIVER OF IMMUNITY TO SUIT IN FEDERAL
73	73	COURT. This chapter does not waive sovereign immunity to suit in
74	74	federal court.
75	75	Sec. 114.008. NO WAIVER OF IMMUNITY TO SUIT FOR TORT
76	76	LIABILITY. This chapter does not waive sovereign immunity to a
77	77	claim arising from a cause of action for negligence.
78	78	Sec. 114.009. NO GRANT OF IMMUNITY TO SUIT. Nothing in this
79	79	chapter shall constitute a grant of immunity to suit to a state
80	80	agency.
81	81	Sec. 114.010. NO RECOVERY OF ATTORNEY'S FEES. Attorney's
82	82	fees incurred by a state agency or any other party in the
83	83	adjudication of a claim by or against a state agency shall not be
84	84	awarded to any party in the adjudication unless the state agency has
85	85	entered into a written agreement that expressly authorizes the
86	86	prevailing party in the adjudication to recover its reasonable and
87	87	necessary attorney's fees.
88	88	Sec. 114.011. VENUE. A suit under this chapter may be
89	89	brought in a district court in:
90	90	(1) a county in which a substantial part of the events
91	91	or omissions giving rise to the claim occurred; or
92	92	(2) Travis County.
93	93	SECTION 2. Section 2260.002, Government Code, is amended to
94	94	read as follows:
95	95	Sec. 2260.002. APPLICABILITY. This chapter does not apply
96	96	to:
97	97	(1) a claim for personal injury or wrongful death
98	98	arising from the breach of a contract; [or]
99	99	(2) a contract executed or awarded on or before August
100	100	30, 1999; or
101	101	(3) a claim for breach of contract in which the matter
102	102	in controversy exceeds $250,000, exclusive of interest.
103	103	SECTION 3. (a) Chapter 114, Civil Practice and Remedies
104	104	Code, as added by this Act, applies only to a claim arising under a
105	105	contract executed on or after September 1, 2009. A claim that
106	106	arises under a contract executed before September 1, 2009, is
107	107	governed by the law as it existed on the date the contract is
108	108	executed, and the former law is continued in effect for that
109	109	purpose.
110	110	(b) Nothing in this Act is intended to create, rescind,
111	111	expand, or limit any waiver of sovereign immunity to suit
112	112	applicable to a contract executed before September 1, 2009.
113	113	SECTION 4. This Act takes effect September 1, 2009.