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Relating to adjudication of claims arising from certain written contracts with state agencies.
The Legislative Budget Board does not anticipate any significant fiscal impact to the state.
HB 1185 would remove a statutory requirement that there must be an express provision in a contract for state agencies to waive sovereign immunity for purposes of adjudicating breach of contract claims and awarding attorney's fees. The bill would allow the award of "reasonable and necessary attorney’s fees that are equitable and just" if a state agency is in breach of a contract regardless of whether the contract contains an express provision to waive sovereign immunity.
Texas Action supports HB 1185 as it advocates the principles of the free market and personal responsibility. State agencies should be held accountable for a breach of contract in the same way a private actor would be. When the state participates in the marketplace, the rules of the marketplace should apply equally to it as they do to a private corporation.
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