SRC-SLL C.S.S.B. 1786 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1786
By: Cain
Jurisprudence
4-22-97
Committee Report (Substituted)


DIGEST 

Currently, contractors are not allowed by law to file a claim against a
unit of state government for breach of a project contract.  A state agency
can sue a contractor if the agency believes the contractor has breached
the contract; however, the contractor is denied similar recourse.  In
recent years, state agencies have become more likely to violate
contractual agreements.  In addition, fewer contractors are applying for
state jobs, and those contractors still bidding have translated their
risks into higher bids.  This bill will authorize contractors to file a
claim against a unit of state government for breach of a project contract. 

PURPOSE

As proposed, C.S.S.B. 1786 authorizes contractors to file a claim against
a unit of state government for breach of a project contract. 

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.  11.001.  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 a breach of a project claim.  Sets forth
procedures regarding a contractor's claim against a unit of state
government. 

Sec.  111.003.  AWARDS.  Sets forth regulations regarding an award based
on a claim made under this chapter.   

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 make a
nonsubstantive change. 

 Amends Section 111.002, Civil Practice and Remedies Code, to add
provisions regarding claims against a unit of state government that
provide for mediation and the forwarding of a proposal for decision to
certain persons. 

Amends Section 111.003, Civil Practice and Remedies Code, to delete
proposed text regarding the payment of an award. 

Deletes Sections 111.04 and 111.05, Civil Practice and Remedies Code,
regarding sovereign immunity and other laws.