By: Cain S.B. No. 1786
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to project contract claims against a unit of state
1-2 government.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Title 5, Civil Practice and Remedies Code, is
1-5 amended by adding Chapter 111 to read as follows:
1-6 CHAPTER 111. CONTRACT CLAIMS AGAINST THE STATE
1-7 Sec. 111.001. DEFINITION. In this chapter: (a) "Unit of
1-8 state government" means the state or an agency, department,
1-9 commission, bureau, board, office, council, court or other entity
1-10 that is in any branch of state government and that is created by
1-11 the constitution or a statute of this state, including a university
1-12 system or institution of higher education as defined by Section
1-13 61.003, Education Code. The term does not include a county,
1-14 municipality, court of a county or municipality, special purpose
1-15 district, or other political subdivision of this state, and does
1-16 not include the Texas Department of Transportation.
1-17 (b) "Project Contract" means a contract between a unit of
1-18 state government and a Contractor for a Project as defined in Sec.
1-19 2166.001(3) Government Code.
1-20 (c) "Contractor" means an individual, partnership,
1-21 corporation, limited liability company or partnership or other
2-1 business entity that is a party to a written contract with a unit
2-2 of state government for a Project which was entered after
2-3 competitive bidding.
2-4 Sec. 111.002 CLAIMS. (a) A Contractor may make a claim
2-5 against a unit of state government for breach of a Project
2-6 Contract.
2-7 (b) A claim may be made by filing a petition with the chief
2-8 administrative officer of the unit of state government. The
2-9 petition shall contain a concise statement of the facts relied on
2-10 by the Contractor, the relief or remedy desired, a copy of the
2-11 Project Contract and other
2-12 contract documents which pertain to the claim and be sworn to by
2-13 the contractor or its representative or attorney.
2-14 (c) The chief administrative officer shall examine the claim
2-15 and, if requested by the Contractor, meet with the Contractor in an
2-16 effort to resolve the claim. Within 30 days after receipt of the
2-17 claim, the chief administrative officer shall respond to the claim
2-18 providing the factual and legal basis for the position of the unit
2-19 of state government as to the claim.
2-20 (d) If the Contractor is not satisfied with the response to
2-21 the claim by the unit of state government, the Contractor may file
2-22 an appeal with the unit of state government. The appeal shall set
2-23 forth the factual and legal basis for the claim and request that
2-24 the claim be referred to the State Office of Administrative
2-25 Hearings for a contested case hearing.
3-1 (e) The unit of the government shall refer the claim to the
3-2 State Office of Administrative Hearings for a contested case
3-3 hearing pursuant to Sec. 2001 et. seq. Government Code as to the
3-4 issues raised in the petition and appeal. The unit of state
3-5 government shall be represented by the Attorney General.
3-6 (f) The final order of the unit of state government on the
3-7 claim may be appealed as any other order of the unit in a contested
3-8 case.
3-9 Section 111.003 AWARDS. (a) An award based on a claim made
3-10 under this chapter may not exceed the total value of the
3-11 consideration the Contractor was to receive under the Contract.
3-12 (b) An award may not be made for consequential or similar
3-13 damages or for exemplary or punitive damages.
3-14 (c) Article 1.05, Title 79, Revised Statutes (Article
3-15 5069-1.05 Vernon's Texas Civil Statutes) applies to an award under
3-16 this chapter.
3-17 (d) A Contractor must make any claim under the Project
3-18 Contract not later than 90 days after the Project Contract is
3-19 completed.
3-20 (e) A unit of state government shall pay an award under this
3-21 chapter from money appropriated to it for the performance of the
3-22 contract on which the claim was based. To the extent money is not
3-23 available to pay the award, the award may be paid only from money
3-24 appropriated by the legislature for payment of the award.
3-25 (f) This chapter does not authorize execution on property
4-1 owned by the state or a unit of state government.
4-2 Section 111.04 SOVEREIGN IMMUNITY. The state waives its
4-3 sovereign immunity to suit under common law only to the extent
4-4 provided in this chapter.
4-5 Section 111.05 OTHER LAWS. Chapter 107 does not apply to a
4-6 claim made under this chapter.
4-7 SECTION 2. This Act takes effect September 1, 1997.
4-8 SECTION 3. (a) This Act applies only to a suit based on a
4-9 Project Contract entered into by a unit of state government on or
4-10 after the effective date of this Act. A suit based on a Project
4-11 Contract entered into before the effective date of this Act is
4-12 governed by the law as it existed immediately before the effective
4-13 date of this Act, and that law is continued in effect for this
4-14 purpose.
4-15 (b) For purposes of this section, a Project Contract is
4-16 entered into after the effective date of this Act it if is executed
4-17 or renewed after the effective date of this Act.
4-18 SECTION 4. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended.