82R4259 TJS-D
	By: Wentworth	S.B. No. 562

	A BILL TO BE ENTITLED
	AN ACT
	relating to the waiver of sovereign immunity for certain claims
	arising under written contracts with state agencies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Title 5, Civil Practice and Remedies Code, is
	amended by adding Chapter 114 to read as follows:
	CHAPTER 114.  ADJUDICATION OF CLAIMS ARISING UNDER WRITTEN
	CONTRACTS WITH STATE AGENCIES
	Sec. 114.001.  DEFINITIONS.  In this chapter:
	(1)  "Adjudication" of a claim means the bringing of a
	civil suit and prosecution to final judgment in county or state
	court and includes the bringing of an arbitration proceeding and
	prosecution to final resolution in accordance with any mandatory
	procedures established in the contract subject to this chapter for
	the arbitration proceedings.
	(2)  "Contract subject to this chapter" means a written
	contract stating the essential terms of the agreement for providing
	goods or services to the state agency that is properly executed on
	behalf of the state agency.
	(3)  "State agency" means an agency, department,
	commission, bureau, board, office, council, court, or other entity
	that is in any branch of state government and that is created by the
	constitution or a statute of this state, including a university
	system or a system of higher education. The term does not include a
	county, municipality, court of a county or municipality, special
	purpose district, or other political subdivision of this state.
	Sec. 114.002.  APPLICABILITY.  This chapter applies only to
	a claim for breach of contract in which the matter in controversy
	exceeds $250,000, exclusive of interest.
	Sec. 114.003.  WAIVER OF IMMUNITY TO SUIT FOR CERTAIN
	CLAIMS.  A state agency that is authorized by statute or the
	constitution to enter into a contract and that enters into a
	contract subject to this chapter waives sovereign immunity to suit
	for the purpose of adjudicating a claim for breach of an express or
	implied provision of the contract, subject to the terms and
	conditions of this chapter.
	Sec. 114.004.  LIMITATIONS ON ADJUDICATION AWARDS.  (a)  The
	total amount of money awarded in an adjudication brought against a
	state agency for breach of an express or implied provision of a
	contract subject to this chapter is limited to the following:
	(1)  the balance due and owed by the state agency under
	the contract as it may have been amended, including any amount owed
	as compensation for the increased cost to perform the work as a
	direct result of owner-caused delays or acceleration;
	(2)  the amount owed for change orders or additional
	work required to carry out the contract; and
	(3)  interest as allowed by law.
	(b)  Damages awarded in an adjudication brought against a
	state agency arising under a contract subject to this chapter may
	not include:
	(1)  consequential damages, except as allowed under
	Subsection (a)(1);
	(2)  exemplary damages; or
	(3)  damages for unabsorbed home office overhead.
	Sec. 114.005.  CONTRACTUAL ADJUDICATION PROCEDURES
	ENFORCEABLE.  Adjudication procedures, including requirements for
	serving notices or engaging in alternative dispute resolution
	proceedings before bringing a suit or an arbitration proceeding,
	that are stated in the contract subject to this chapter or that are
	established by the state agency and expressly incorporated into the
	contract are enforceable except to the extent those procedures
	conflict with the terms of this chapter.
	Sec. 114.006.  NO WAIVER OF OTHER DEFENSES.  This chapter
	does not waive a defense or a limitation on damages available to a
	party to a contract, other than a bar against suit based on
	sovereign immunity.
	Sec. 114.007.  NO WAIVER OF IMMUNITY TO SUIT IN FEDERAL
	COURT.  This chapter does not waive sovereign immunity to suit in
	federal court.
	Sec. 114.008.  NO WAIVER OF IMMUNITY TO SUIT FOR TORT
	LIABILITY.  This chapter does not waive sovereign immunity to a
	claim arising from a cause of action for negligence.
	Sec. 114.009.  NO GRANT OF IMMUNITY TO SUIT.  Nothing in this
	chapter shall constitute a grant of immunity to suit to a state
	agency.
	Sec. 114.010.  NO RECOVERY OF ATTORNEY'S FEES.  Attorney's
	fees incurred by a state agency or any other party in the
	adjudication of a claim by or against a state agency shall not be
	awarded to any party in the adjudication unless the state agency has
	entered into a written agreement that expressly authorizes the
	prevailing party in the adjudication to recover its reasonable and
	necessary attorney's fees.
	Sec. 114.011.  VENUE. A suit under this chapter may be
	brought in a district court in:
	(1)  a county in which a substantial part of the events
	or omissions giving rise to the claim occurred; or
	(2)  Travis County.
	SECTION 2.  Section 2260.002, Government Code, is amended to
	read as follows:
	Sec. 2260.002.  APPLICABILITY.  This chapter does not apply
	to:
	(1)  a claim for personal injury or wrongful death
	arising from the breach of a contract; [or]
	(2)  a contract executed or awarded on or before August
	30, 1999; or
	(3)  a claim for breach of contract to which Chapter
	114, Civil Practice and Remedies Code, applies.
	SECTION 3.  (a)  Chapter 114, Civil Practice and Remedies
	Code, as added by this Act, applies only to a claim arising under a
	contract executed on or after September 1, 2011.  A claim that
	arises under a contract executed before September 1, 2011, is
	governed by the law applicable to the claim immediately before the
	effective date of this Act, and that law is continued in effect for
	that purpose.
	(b)  Nothing in this Act is intended to create, rescind,
	expand, or limit any waiver of sovereign immunity to suit
	applicable to a contract executed before September 1, 2011.
	SECTION 4.  This Act takes effect September 1, 2011.