HBA-BSM C.S.H.C.R. 211 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.C.R. 211
By: Telford
Civil Practices
5/9/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Gibson Recycling, Inc. alleges that it entered into an agreement with the
Texas Natural Resource Conservation Commission (TNRCC) under the waste tire
recycling program (program) to recycle waste tires.  Gibson Recycling, Inc.
asserts that it performed  its obligations  under the program and TNRCC
failed to perform its obligations under the agreement and program.  Gibson
Recycling, Inc.  also alleges that TNRCC has caused Gibson Recycling, Inc.
to undergo an audit on its  operations under the waste tire recycling
program,  the audit division of TNRCC purposely manipulated the figures to
show that Gibson Recycling had been overpaid by TNRCC, while Gibson
Recycling  alleges it was not overpaid.  Gibson Recycling, Inc. contends
that TNRCC  has failed to pay $400,000 to which it is lawfully entitled
under the program, and Gibson Recycling Inc. also claims it has sustained
damages as a  result of TNRCC's actions. House Concurrent Resolution 211
grants Gibson Recycling, Inc. permission to sue TNRCC and the State of
Texas. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Concurrent Resolution 211 grants permission to Gibson Recycling, Inc.
to sue the State of  Texas and the Texas Natural Resource Conservation
Commission (TNRCC).  The resolution limits  the remedies available to
Gibson Recycling, Inc. in the suit to the  remedies traditionally available
for breach of contract, but specifies that Gibson Recycling, Inc. may not
recover punitive or exemplary  damages resulting from any breach of
contract.  The resolution prohibits  the total of all damages awarded in
the suit including any court costs, attorney's fees, and prejudgment
interest awarded under law from exceeding the amount of damages awarded to
TNRCC in a counterclaim or counterclaims made in connection  with that
suit, if any, plus $1 million.  The resolution authorizes Gibson Recycling,
Inc. and TNRCC to submit the matter to binding arbitration, and establishes
that the executive director of the Texas Natural  Resource Conservation
Commission be served process. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.C.R. 211 differs from the original bill by establishing a limit on
the total amount of all damages.