HBA-BSM C.S.H.C.R. 211 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.C.R. 211 By: Telford Civil Practices 5/9/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Gibson Recycling, Inc. alleges that it entered into an agreement with the Texas Natural Resource Conservation Commission (TNRCC) under the waste tire recycling program (program) to recycle waste tires. Gibson Recycling, Inc. asserts that it performed its obligations under the program and TNRCC failed to perform its obligations under the agreement and program. Gibson Recycling, Inc. also alleges that TNRCC has caused Gibson Recycling, Inc. to undergo an audit on its operations under the waste tire recycling program, the audit division of TNRCC purposely manipulated the figures to show that Gibson Recycling had been overpaid by TNRCC, while Gibson Recycling alleges it was not overpaid. Gibson Recycling, Inc. contends that TNRCC has failed to pay $400,000 to which it is lawfully entitled under the program, and Gibson Recycling Inc. also claims it has sustained damages as a result of TNRCC's actions. House Concurrent Resolution 211 grants Gibson Recycling, Inc. permission to sue TNRCC and the State of Texas. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Concurrent Resolution 211 grants permission to Gibson Recycling, Inc. to sue the State of Texas and the Texas Natural Resource Conservation Commission (TNRCC). The resolution limits the remedies available to Gibson Recycling, Inc. in the suit to the remedies traditionally available for breach of contract, but specifies that Gibson Recycling, Inc. may not recover punitive or exemplary damages resulting from any breach of contract. The resolution prohibits the total of all damages awarded in the suit including any court costs, attorney's fees, and prejudgment interest awarded under law from exceeding the amount of damages awarded to TNRCC in a counterclaim or counterclaims made in connection with that suit, if any, plus $1 million. The resolution authorizes Gibson Recycling, Inc. and TNRCC to submit the matter to binding arbitration, and establishes that the executive director of the Texas Natural Resource Conservation Commission be served process. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.C.R. 211 differs from the original bill by establishing a limit on the total amount of all damages.