83R18694 TJB-F
By: Ritter H.B. No. 3511
A BILL TO BE ENTITLED
AN ACT
relating to the adjudication of claims arising under certain
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) a written contract stating the essential
terms of the agreement for providing goods or services to the local
governmental entity that is properly executed on behalf of the
local governmental entity; or
(B) a written contract, including a right of
first refusal, regarding the sale or delivery of not less than
1,000 acre-feet of reclaimed water by a local governmental entity
intended for industrial use.
SECTION 2. Section 271.153, Local Government Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(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;
(3) reasonable and necessary attorney's fees that are
equitable and just; and
(4) interest as allowed by law, including interest as
calculated under Chapter 2251, Government Code.
(c) Actual damages, specific performance, or injunctive
relief may be granted in an adjudication brought against a local
governmental entity for breach of a contract described by Section
271.151(2)(B).
SECTION 3. The changes in law made by this Act apply to a
claim that arises under a contract executed on or after the
effective date of this Act. A claim that arises under a contract
executed before the effective date of this Act 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, 2013.