SRC-SLL C.S.S.B. 1376 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1376
By: Ellis
Jurisprudence
4-14-97
Committee Report (Substituted)


DIGEST 

Currently, the Texas Department of Transportation has rules governing an
internal contract claims process.  This process has been extremely
effective in that, over the last nine fiscal years, only seven highway
construction claims have escalated to the point of a contested case
proceeding.  In an unpublished court opinion, the court held that the
court had no jurisdiction to hear a contract claim against the department.
Therefore, it is necessary to explicitly grant jurisdiction to district
courts to hear contract claims involving the department.  This bill will
provide procedures for contract claims with the Texas Department of
Transportation. 

PURPOSE

As proposed, C.S.S.B. 1376 provides procedures for contract claims with
the Texas Department of Transportation. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Transportation Commission in
SECTION 1 (Section 201.112(a), Transportation Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 201C, Transportation Code, by adding Section
201.112, as follows: 

Sec.  201.112.  CONTRACT CLAIMS.  Authorizes the Texas Transportation
Commission, by rule, to establish procedures for the informal resolution
of a claim arising out of a contract described by Section 22.018, Chapter
223, or Chapter 2254, Government Code.  Authorizes a person to request a
formal administrative hearing to resolve the claim if the person is
dissatisfied with the Texas Department of Transportation's (department)
resolution of the claim.  Requires an administrative law judge's proposal
for decision rendered under Chapter 2001, Government Code, to be submitted
to the executive director of the department (executive director) for
adoption.  Authorizes the executive director, notwithstanding any law to
the contrary, to change a finding of fact or conclusion of law made by the
administrative law judge, or to vacate or modify an order issued by the
administrative law judge.  Requires the executive director to provide a
written statement containing the reason and legal basis for a change made
under this subsection.  Provides that the executive director's final order
is subject to judicial review under Chapter 2001, Government Code, under
the substantial evidence rule.  Provides that this section does not waive
state immunity from liability. 

SECTION 2. Requires the procedure prescribed by SECTION 1 of this Act,
notwithstanding any other law, to constitute the exclusive remedy at law
for the resolution of a claim governed by that section. 

SECTION 3. Makes application of this Act prospective.

SECTION 4. Emergency clause.
  Effective date: upon passage.


 

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 201.112(a), Transportation Code, to authorize the
commission, by rule, to establish procedures for the informal resolution
of a claim arising out of a contract described by Section 22.018,
Government Code, among others. 

SECTION 2.

Requires the procedures in SECTION 1 to constitute the exclusive remedy at
law for the resolution of a claim governed by that section. 

SECTION 3.

Makes application of this Act prospective.  Renumbers SECTION 3 as SECTION
4.