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HB 389 - State contracts; sovereign immunity; computer failure

Powell, Alan T (23rd)

Status Summary	HC:	Judy	SC:		FR:	02/02/99	LA:	02/03/99	H - Read 2nd Time

First Reader Summary

A BILL to amend Code Section 50-21-1 of the Official Code of Georgia Annotated, relating to waiver sovereign immunity for actions ex contractu, so as to provide that sovereign immunity is not waived as to actions based upon quasi-contract, quantum meruit, or mutual departure from contract terms; and for other purposes.

HB 389                                             LC 22 3394 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 50-21-1 of the Official Code of 
  1- 2  Georgia Annotated, relating to waiver of sovereign immunity 
  1- 3  for actions ex contractu, so as to provide that sovereign 
  1- 4  immunity is not waived as to actions based upon 
  1- 5  quasi-contract, quantum meruit, or mutual departure from 
  1- 6  contract terms; to provide that no damages shall be awarded 
  1- 7  for breach of contract due to failure of computer software 
  1- 8  or processor in specific ways; to provide for limitation and 
  1- 9  delegation of the authority to contract on behalf of the 
  1-10  state, departments and agencies of the state, and state 
  1-11  authorities; to provide a form for warrants designating 
  1-12  individuals as authorized to execute contracts; to provide 
  1-13  for related matters; to repeal conflicting laws; and for 
  1-14  other purposes. 
 
  1-15       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-16                           SECTION 1. 
 
  1-17  Code Section 50-21-1 of the Official Code of Georgia 
  1-18  Annotated, relating to waiver of sovereign immunity for 
  1-19  actions ex contractu, is amended by striking in its entirety 
  1-20  subsection (a) and inserting in its place the following: 
 
  1-21    "(a) The defense of sovereign immunity is waived as to any 
  1-22    action ex contractu for the breach of any written contract 
  1-23    existing on April 12, 1982, or thereafter entered into by 
  1-24    the state, departments and agencies of the state, and 
  1-25    state authorities.  Without limiting the above: 
 
  1-26      (1) The defense of sovereign immunity is not waived as 
  1-27      to any action based upon quasi-contract, quantum meruit, 
  1-28      or Code Section 13-4-4; 
 
  1-29      (2) Notwithstanding any express or implied term to the 
  1-30      contrary, in any action ex contractu for breach of a 
  1-31      written contract, it shall be a bar to the imposition of 
  1-32      any damages, direct or consequential, that the breach, 
  1-33      if any, was due to the failure of any computer software 
  1-34      or of any computer processor to accurately or properly 
 
 
                                 -1- 
 
 
 
  2- 1      recognize, calculate, display, sort, or otherwise 
  2- 2      process dates, times, or any other function; and 
 
  2- 3      (3) The authority to contract on behalf of the state, 
  2- 4      departments and agencies of the state, and state 
  2- 5      authorities shall be limited to the commissioner or 
  2- 6      chief executive officer of the department, agency, or 
  2- 7      authority for which the contract is to be issued and to 
  2- 8      those public officials and public employees who have 
  2- 9      been so designated and authorized by written warrant 
  2-10      issued by such commissioner or chief executive officer. 
  2-11      Without limiting the provisions of Code Section 45-6-5, 
  2-12      the public may conclusively rely upon the possession of 
  2-13      a valid warrant as evidence of the official's authority 
  2-14      to bind the department, agency, or authority so 
  2-15      designated.  On or before January 1, 2000, each state 
  2-16      department, agency, commission, and authority shall 
  2-17      adopt a policy which designates the officers authorized 
  2-18      to execute contracts or describes the procedure for 
  2-19      delegating such power.  Such policy must provide for 
  2-20      proof of the authority of each such person by a warrant 
  2-21      in substantially the following form: 
 
 
 
  2-22          _______________ is hereby designated as 
  2-23          contracting officer for  _______________ (insert 
  2-24          name of department, agency, commission, or 
  2-25          authority) with full power and authority to 
  2-26          execute contracts on behalf of said state 
  2-27          entity, subject to the following limitations: 
 
  2-28          (Insert 'None' or any limitations, for example, 
  2-29          contracts not exceeding a specified dollar 
  2-30          amount or a named project) 
 
  2-31          This warrant expires: _______________. 
 
 
 
 
  2-32                           SECTION 2. 
 
  2-33  All laws and parts of laws in conflict with this Act are 
  2-34  repealed. 
 
 
 
 
 
 
 
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