Earlier today the Senate passed HB 586 by Rep. Paul Workman (R-Austin) and Sen. Robert Deuell (R-Greenville), which waives the state’s sovereign immunity in disputes involving certain construction contract. The Senate amendments narrow the application of the bill to claims for breach of a contract for architectural, engineering, or construction services or materials in which the amount in controversy is $250,000 or more, exclusive of penalties, costs, expenses, pre-judgment interest, and attorney’s fees. The House version of the bill contained no floor. Additionally, the House version contained an election of remedies allowing a party to pursue an alternative claim under Chapter 2260, Government Code, whereas the Senate amendments make Chapter 114, CPRC, as added by the bill, the exclusive remedy for breach of contract claims to which the chapter applies.

Sen. Craig Estes (R-Wichita Falls) also attached SB 522, which makes significant changes to the contested case procedures under the Administrative Procedures Act, as a floor amendment to HB 586.

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