80R4713 PAM-F
 
  By: Corte H.B. No. 3054
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the adjudication of claims arising under written
contracts with local governmental entities.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 271.151(2), Local Government Code, is
amended to read as follows:
             (2)  "Contract subject to this subchapter" means a
written contract that is properly executed on behalf of a local
governmental entity and states [stating] the essential terms for an
[of the] agreement:
                   (A)  for providing goods or services to or from
the local governmental entity;
                   (B)  for utility services or infrastructure;
                   (C)  affecting real property;
                   (D)  relating to annexation, including an
agreement to forgo annexation;
                   (E)  under Chapter 311, Tax Code; or
                   (F)  under Chapter 212, 245, 372, 375, 378, 383,
or 395 [that is properly executed on behalf of the local
governmental entity].
       SECTION 2.  Section 271.153, Local Government Code, is
amended to read as follows:
       Sec. 271.153.  LIMITATIONS ON ADJUDICATION AWARDS.  (a)
Except as provided by Subsection (c), the [The] total amount of
money awarded in an adjudication brought against a local
governmental entity for breach of a contract subject to this
subchapter is limited to the following:
             (1)  the balance due and owed by the local governmental
entity under the contract as it may have been amended, including any
amount owed as compensation for the increased cost to perform the
work as a direct result of owner-caused delays or acceleration;
             (2)  the amount owed for change orders or additional
work the contractor is directed to perform by a local governmental
entity in connection with the contract; and
             (3)  interest as allowed by law.
       (b)  Except as provided by Subsection (c), damages [Damages]
awarded in an adjudication brought against a local governmental
entity arising under a contract subject to this subchapter may not
include:
             (1)  consequential damages, except as expressly
allowed under Subsection (a)(1);
             (2)  exemplary damages; or
             (3)  damages for unabsorbed home office overhead.
       (c)  In an adjudication brought against a local governmental
entity for a breach of a contract involving the provision of
services by the local governmental entity or involving a contract
described by Section 271.151(2)(B)-(F), the relief awarded,
including the total amount of money awarded, is limited to:
             (1)  monetary damages as provided by Subsection (a);
             (2)  contractual remedies, including actual damages,
compensatory damages, consequential damages, liquidated damages,
and specific performance; or
             (3)  equitable relief, including injunction and writ of
mandamus.
       SECTION 3.  The changes in law made by this Act apply to a
claim that arises under a contract executed before the effective
date of this Act only if sovereign immunity from suit and from
liability has not been waived with respect to the claim before the
effective date of this Act. A claim that arises under a contract
executed before the effective date of this Act and with respect to
which sovereign immunity from suit and from liability has been
waived is governed by the law in effect on the date the contract was
executed, and the former law is continued in effect for that
purpose.
       SECTION 4.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.