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§ 109.004.Payment of Claim by Agency

Title 5. Governmental Liability · Chapter 109. Appropriations for Payment of Claims Against State Agencies · Last amended 2001 · Last verified August 29, 2026

In one sentenceSection 109.004 requires an agency to pay a claim only from its General Appropriations Act money, subject to per-claim and annual limits, unless the Legislature identified and funded the claim.

Full Text of § 109.004

Text sizeJump to: (a) (b) (c) (d)

(a)This section does not apply to the payment of a claim if the legislature has specifically:
(1)identified the claim; and
(2)appropriated money to pay the claim.
(b)Subject to Subsections (c) and (d), a state agency may pay a claim subject to this chapter only from money appropriated to that agency in the General Appropriations Act.
(c)The amount paid under this section by a state agency for a single claim may not exceed a limitation imposed by the General Appropriations Act on the amount that may be paid by the agency on a single claim.
(d)The total of all amounts paid by a state agency from money appropriated to the agency for any fiscal year under this section may not exceed a limitation imposed by the General Appropriations Act on the amount that may be paid under this section by a state agency for that fiscal year.
End

Plain-English Summary

The payment provision, and its two ceilings are set outside this code.

The section does not apply where the legislature has specifically identified the claim and appropriated money to pay it.

That exception preserves the private-bill route. A claim the Legislature has considered and funded by name is paid as directed, outside this machinery.

Otherwise, a state agency may pay a claim only from money appropriated to that agency in the General Appropriations Act.

"Only from" is exclusive. No other source is available, which is what makes the claim a charge on the agency’s own budget.

Two limits apply, and both come from the appropriations act rather than from this chapter.

The amount paid for a single claim may not exceed a limitation the General Appropriations Act imposes, and the total paid in a fiscal year may not exceed a limitation that act imposes.

Placing the figures in the appropriations act rather than in the statute is a deliberate choice. The limits can be reset each biennium without amending this code, which is how budget provisions are usually handled.

It also means the limits are not findable here. A reader wanting to know what an agency can pay must look at the current appropriations act.

The annual cap is the more consequential of the two. An agency that reaches it cannot pay further claims that year from its own money, and the claimant waits for an appropriation.

That is the practical position for many claimants against the state, and it is why judgments against state agencies are often satisfied long after they are rendered.

Frequently Asked Questions

How does an agency pay a claim?

Only from money appropriated to it in the General Appropriations Act, subject to per-claim and annual limits set in that act.

Where are the limits?

In the General Appropriations Act, not in this chapter, so they can be reset each biennium.

What if the Legislature funded the claim by name?

The section does not apply, and the claim is paid as the Legislature directed.

Amendment History

  • Added by Acts 1993, 73rd Leg., ch. 1005, Sec. 1, eff. Sept. 1, 1993.
  • Amended by Acts 2001, 77th Leg., ch. 1414, Sec. 2, eff. Sept. 1, 2001.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source