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  83R5290 KEL-D
 
  By: Eiland H.B. No. 2714
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a waiver of sovereign immunity by public institutions
  of higher education with respect to certain contracts paid using
  institutional funds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 51.002, Education Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  The governing board of an institution may not claim
  sovereign immunity in any lawsuit for a claim arising under a
  contract paid wholly or partly with money described by Subsection
  (a), and the institution is liable for damages under that claim to
  the extent that money described by Subsection (a) available to the
  institution is unencumbered by preexisting legal obligations.
         SECTION 2.  The change in law made by this Act applies only
  to a civil cause of action that accrues on or after the effective
  date of this Act. An action that accrued before the effective date
  of this Act is governed by the law in effect at the time the action
  accrued, and that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2013.