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78R2941 SGA-D

By:  Nixon                                                        H.B. No. 1591



A BILL TO BE ENTITLED

AN ACT

relating to the resolution of certain contract claims against the 
state.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2260.104(e), Government Code, is amended 
to read as follows:
	(e)  In a contested case hearing under this subchapter:                        
		(1)  the decision may not be appealed except for abuse 
of discretion; and
		(2)  the state agency may not change the finding of fact 
or conclusion of law, nor vacate or modify an order as provided in 
Section 2001.058(e).
	SECTION 2.  Section 2260.105(a), Government Code, is amended 
to read as follows:
	(a)  Notwithstanding Section 2260.003(c)(4), the [The] unit 
of state government shall pay the amount of the claim or part of the 
claim,including the reasonable cost of attorney's fees in bringing 
the claim, if[:
		[(1)]  the administrative law judge finds, by a 
preponderance of the evidence, that under the laws of this state the 
claim or part of the claim is valid[; and
		[(2)  the total amount of damages, after taking into 
account any counterclaim, is less than $250,000].
	SECTION 3.  Section 2260.1055(a), Government Code, is 
amended to read as follows:
	(a)  If, after a hearing, the administrative law judge 
determines that a claim involves damages and attorney's fees the 
total amount of which is [of $250,000 or] more than the unit of 
state government has available from money appropriated to it for 
the payment of contract claims and for payment of the contract that 
is the subject of the claim, the administrative law judge shall 
issue a written report containing the administrative law judge's 
findings and recommendations to the legislature.
	SECTION 4.  Section 2260.104(f), Government Code, is 
repealed.               
	SECTION 5.  This Act takes effect September 1, 2003, and 
applies only to a contested case hearing commenced on or after the 
effective date of this Act.  A contested case hearing commenced 
before the effective date of this Act is governed by the law 
applicable to the contested case hearing immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.