H.B. No. 1268
 
 
 
 
AN ACT
  relating to the award of attorney's fees under the terms of certain
  contracts with a governmental entity.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 2252, Government Code, is
  amended by adding Section 2252.904 to read as follows:
         Sec. 2252.904.  ATTORNEY'S FEES. (a) In this section:
               (1)  "Governmental contract" means a contract awarded
  by a governmental entity for general construction, an improvement,
  a service, or a public works project or for a purchase of supplies,
  materials, or equipment.
               (2)  "Governmental entity" means:
                     (A)  the state;
                     (B)  a municipality, county, public school
  district, or special-purpose district or authority;
                     (C)  a district, county, or justice of the peace
  court;
                     (D)  a board, commission, department, office, or
  other agency in the executive branch of state government, including
  an institution of higher education as defined by Section 61.003,
  Education Code;
                     (E)  the legislature or a legislative agency; or
                     (F)  the Supreme Court of Texas, the Texas Court
  of Criminal Appeals, a court of appeals, or the State Bar of Texas
  or another judicial agency having statewide jurisdiction.
         (b)  A governmental contract may not provide for the award of
  attorney's fees to the governmental entity in a dispute in which the
  entity prevails unless the contract provides for the award of
  attorney's fees to each other party to the contract if that party
  prevails in the dispute.
         (c)  A contract provision that violates this section is void
  and unenforceable.
         SECTION 2.  The change in law made by this Act applies only
  to a contract executed on or after the effective date of this Act. A
  contract executed before the effective date of this Act is governed
  by the law in effect immediately before the effective date of this
  Act, and that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1268 was passed by the House on April
  26, 2007, by the following vote:  Yeas 142, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1268 was passed by the Senate on May
  18, 2007, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor