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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 certain |
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written 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: |
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(A) a written contract stating the essential |
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terms of the agreement for providing goods or services to the local |
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governmental entity that is properly executed on behalf of the |
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local governmental entity; or |
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(B) a written contract, including a right of |
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first refusal, regarding the sale or delivery of not less than |
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1,000 acre-feet of reclaimed water by a local governmental entity |
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intended for industrial use. |
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SECTION 2. Section 271.153, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsection (c) to |
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read as follows: |
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(a) Except as provided by Subsection (c), the [The] total |
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amount of 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; |
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(3) reasonable and necessary attorney's fees that are |
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equitable and just; and |
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(4) interest as allowed by law, including interest as |
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calculated under Chapter 2251, Government Code. |
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(c) Actual damages, specific performance, or injunctive |
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relief may be granted in an adjudication brought against a local |
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governmental entity for breach of a contract described by Section |
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271.151(2)(B). |
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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 on or after 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 is governed by the |
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law in effect on the date the contract was executed, and the former |
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law is continued in effect for that 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, 2013. |