SRC-SLL C.S.H.B. 172 75(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 172
By: Nixon, Joe (Cain)
Jurisprudence
5-17-97
Committee Report (Substituted)


DIGEST 

Sovereign immunity protects the state from lawsuits.  In Texas, to seek
legal redress against the state, a party must seek permission to sue the
state from the legislature.  A critical exception to the governmental
immunity doctrine is that the state waives its immunity from liability
when it contracts.  However, even if there is no dispute about the state's
liability in a breach of contract claim, the doctrine of sovereign
immunity still bars a suit against the state unless the state has
expressly given its consent to be sued.  This bill will provide
regulations regarding project contract claims against a unit of state
government. 

PURPOSE

As proposed, C.S.H.B. 172 provides regulations regarding project contract
claims against a unit of state government. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 5, Civil Practice and Remedies Code, by adding
Chapter 111, as follows: 

CHAPTER 111.  CONTRACT CLAIMS AGAINST THE STATE

Sec.  111.001.  DEFINITION.  Defines "unit of state government," "project
contract," and "contractor." 

Sec.  111.002.  CLAIMS.  Authorizes a contractor to make a claim against a
unit of state government for breach of a project contract.  Sets forth
regulations for filing a claim.  Sets forth regulations regarding a
mediation and appeal of a claim.  Requires the unit of state government to
refer the claim to the State Office of Administrative Hearings for a
contested case hearing pursuant to Section 2003 et seq., Government Code,
as to the issues raised in the appeal.  Requires the proposal for
decision, if the proposal issued by the administrative law judge at the
State Office of Administrative Hearings makes an award of some portion of
the claim, to be forwarded to certain persons as a recommendation for an
appropriation to pay the amount of the award in the next appropriation to
the unit of state government. 

Sec.  111.003.  AWARDS.  Prohibits an award based on a claim made under
this chapter from exceeding the total value of the consideration the
contractor was to receive under the contract.  Prohibits an award from
being made for consequential or similar damages or exemplary or punitive
damages.  Provides that Article 5069-1.05 V.T.C.S., applies to an award
under this chapter.  Requires a contractor to make any claim under the
project contract not later than 90 days after the project contract is
completed. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Makes application of this Act prospective.
 
SECTION 4. Emergency clause.


SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 111.001, Civil Practice and Remedies Code, to redefine
"unit of state government," and to define "project contract" and
"contractor. 

Amends Section 111.002, Civil Practice and Remedies Code, to delete
proposed text.  Sets forth regulations regarding claims. 

Amends Section 111.003, Civil Practice and Remedies Code, to delete
proposed text.  Sets forth regulations regarding awards. 

SECTION 3.

Makes a nonsubstantive change.