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A BILL TO BE ENTITLED
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AN ACT
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relating to the adjudication of claims arising under written |
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contracts with local governmental entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.151(2), Local Government Code, is |
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amended to read as follows: |
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(2) "Contract subject to this subchapter" means a |
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written contract that is properly executed on behalf of a local |
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governmental entity and states [stating] the essential terms for an |
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[of the] agreement: |
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(A) for providing goods or services to or from |
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the local governmental entity; |
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(B) for utility services or infrastructure; |
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(C) affecting real property; |
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(D) relating to annexation, including an |
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agreement to forgo annexation; |
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(E) under Chapter 311, Tax Code; or |
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(F) under Chapter 212, 245, 372, 375, 378, 383, |
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or 395 [that is properly executed on behalf of the local
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governmental entity]. |
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SECTION 2. Section 271.153, Local Government Code, is |
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amended to read as follows: |
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Sec. 271.153. LIMITATIONS ON ADJUDICATION AWARDS. (a) |
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Except as provided by Subsection (c), the [The] total amount of |
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money awarded in an adjudication brought against a local |
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governmental entity for breach of a contract subject to this |
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subchapter is limited to the following: |
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(1) the balance due and owed by the local governmental |
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entity under the contract as it may have been amended, including any |
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amount owed as compensation for the increased cost to perform the |
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work as a direct result of owner-caused delays or acceleration; |
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(2) the amount owed for change orders or additional |
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work the contractor is directed to perform by a local governmental |
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entity in connection with the contract; and |
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(3) interest as allowed by law. |
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(b) Except as provided by Subsection (c), damages [Damages] |
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awarded in an adjudication brought against a local governmental |
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entity arising under a contract subject to this subchapter may not |
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include: |
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(1) consequential damages, except as expressly |
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allowed under Subsection (a)(1); |
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(2) exemplary damages; or |
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(3) damages for unabsorbed home office overhead. |
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(c) In an adjudication brought against a local governmental |
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entity for a breach of a contract involving the provision of |
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services by the local governmental entity or involving a contract |
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described by Section 271.151(2)(B)-(F), the relief awarded, |
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including the total amount of money awarded, is limited to: |
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(1) monetary damages as provided by Subsection (a); |
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(2) contractual remedies, including actual damages, |
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compensatory damages, consequential damages, liquidated damages, |
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and specific performance; or |
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(3) equitable relief, including injunction and writ of |
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mandamus. |
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SECTION 3. The changes in law made by this Act apply to a |
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claim that arises under a contract executed before the effective |
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date of this Act only if sovereign immunity from suit and from |
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liability has not been waived with respect to the claim before the |
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effective date of this Act. A claim that arises under a contract |
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executed before the effective date of this Act and with respect to |
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which sovereign immunity from suit and from liability has been |
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waived is governed by the law in effect on the date the contract was |
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executed, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |