Texas 2011 - 82nd Regular

Texas Senate Bill SB562

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the waiver of sovereign immunity for certain claims arising under written contracts with state agencies.

Impact

The introduction of SB562 could significantly affect the legal landscape surrounding contracts with state agencies. By permitting lawsuits against state agencies for breach of contract under stipulated conditions, it opens the door for more accountability in public contracts. The bill includes specific provisions that limit the types of damages that can be awarded, which may mitigate concerns from state agencies regarding uncontrolled liability. Importantly, it maintains the principle of sovereign immunity in other legal contexts, including federal court and torts, thereby creating a more nuanced approach to state accountability.

Summary

SB562, titled 'Relating to the waiver of sovereign immunity for certain claims arising under written contracts with state agencies', is a legislative proposal aimed at modifying how claims against state agencies are adjudicated. The bill introduces a framework that allows for the waiver of sovereign immunity in cases where there are breaches of contracts valued above $250,000. This means that, for certain claims, state agencies could be held accountable in civil court for failing to meet the terms of their contracts, potentially increasing their liability under specific circumstances.

Sentiment

The sentiment surrounding SB562 has revealed a division among legislators. Supporters argue that the bill enhances accountability and provides a necessary mechanism for redress to those wronged by state agencies, fostering trust in public contracting processes. Conversely, critics may perceive it as a potential overreach, fearing it could lead to increased litigation against state agencies and subsequently strain public resources. Notably, the sentiment also encapsulates concerns regarding balancing accountability with the operational stability of state agencies.

Contention

There are notable points of contention within the discussions on SB562. The primary concern revolves around the implications of waiving sovereign immunity for significant contracts. While proponents view this as a necessary shift toward greater state accountability, opponents caution against the potential for excessive litigation. The discourse emphasizes the need for a careful balance between providing individuals with recourse for grievances and maintaining operational efficiency within state agencies, further complicating the conversation around public sector contract management.

Companion Bills

TX HB1041

Identical Relating to the waiver of sovereign immunity for certain claims arising under written contracts with state agencies.

Similar Bills

TX SB543

Relating to oversight of and requirements applicable to state contracts and other state financial and accounting issues; authorizing fees.

TX HB1426

Relating to certain requirements applicable to contracts entered into by, and the contract management process of, state agencies.

TX SB1680

Relating to certain requirements applicable to contracts entered into by state agencies.

CA AB483

Fixed term installment contracts: early termination fees.

TX SB68

Relating to contracting issues of state agencies, including ethics issues related to state contracting.

CA SB770

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CA SB272

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NJ A2517

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