TITLE 37. PUBLIC SAFETY AND CORRECTIONS

Part 1. TEXAS DEPARTMENT OF PUBLIC SAFETY

Chapter 34. NEGOTIATION AND MEDIATION OF CERTAIN CONTRACT DISPUTES

Subchapter B. NEGOTIATION OF CONTRACT DISPUTES

37 TAC §34.22, §34.24

The Texas Department of Public Safety proposes amendments to §34.22 and §34.24, concerning Negotiation of Contract Disputes. Proposed amendments to §34.22 and §34.24 are necessary in order to make the department's administrative rules consistent with the amendments to Chapter 2260 of the Texas Government Code pursuant to HB 1940 from the 79th Regular Session.

Oscar Ybarra, Chief of Finance, has determined that, for each year of the first five-year period the proposed rule amendments are in effect, there will be no fiscal implications for state or local government, or local economies.

Mr. Ybarra also has determined that, for each year of the first five-year period the proposed rule amendments are in effect, the public benefit anticipated as a result of enforcing the rule amendments will be current and updated rules. There is no adverse economic impact anticipated for individuals, small businesses, or micro-businesses.

The department has determined that Chapter 2007 of the Government Code does not apply to these proposed rule amendments. Accordingly, the department is not required to complete a takings impact assessment regarding these rule amendments.

Comments on the proposal may be submitted to Kevin Jones, CTPM, Procurement & Contract Administrator, Texas Department of Public Safety, P.O. Box 4087, Austin, Texas 78773-0130, (512) 424-2071.

The amendments are proposed pursuant to Texas Government Code, §411.004(3), which authorizes the Public Safety Commission to adopt rules considered necessary for carrying out the department's work; and Texas Government Code, §2260.052(c).

Texas Government Code, §411.004(3), and §2260.052(c) are affected by this proposal.

§34.22.Counterclaim.

(a) - (c) (No change.)

(d) The notice of counterclaim shall be delivered to the contractor no later than the deadline provided in §2260.051(d) of the Texas Government Code. The statutory deadline depends on the date of the contract upon which the counterclaim is based [ 90 days after the department's receipt of the contractor's notice of claim ].

(e) (No change.)

§34.24.Timetable.

(a) (No change.)

(b) Subject to subsection (c) of this section, the parties shall begin negotiations by the deadline provided in §2260.052(a) of the Texas Government Code. The statutory deadline depends on the date of the contract upon which the claim, as well as any counterclaim, is based. [ within a reasonable period of time, not to exceed 60 days following the later of: ]

[ (1) the date of termination of the contract;]

[ (2) the completion date, or substantial completion date in the case of construction projects, in the original contract; or]

[ (3) the date the department receives the contractor's notice of claim.]

(c) The department may delay negotiations until after the 180th day after the date of the event giving rise to the claim of breach of contract by delivering written notice to the contractor that the commencement of negotiations will be delayed and providing written notice to the contractor of the date that the department anticipates it will be prepared to begin negotiation. However, this subsection only applies to claims, as well as any counterclaims, involving a breach of a contract entered into by the department before September 1, 2005.

(d) - (g) (No change.)

(h) The parties may agree to mediate the dispute at any time before the deadline provided in §2260.056(a) of the Texas Government Code and [ 270th day after the department receives the contractor's notice of claim or ] before the expiration of any extension agreed to by the parties pursuant to subsection (f) of this section. The statutory deadline depends on the date of the contract upon which the claim, as well as any counterclaim, is based. The mediation shall be governed by Subchapter C of this chapter.

(i) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 21, 2007.

TRD-200701968

Thomas A. Davis, Jr.

Director

Texas Department of Public Safety

Earliest possible date of adoption: July 1, 2007

For further information, please call: (512) 424-2135