BILL ANALYSIS



S.B. 1159
By: Sibley (Berlanga)
May 18, 1995
Committee Report (Unamended)


BACKGROUND

During the 73rd Legislature the State Purchasing and General
Services Commission (GSC) created a dispute resolution system
intended to be a fairer and more cost effective way of settling
building contracts.  The GSC Sunset bill mandated arbitration
clauses in all of the agency's construction contracts.  So far, the
program has been marked by a notable lack of disputes and costs.  

The Sunset bill directed the comptroller to review the performance
of the system and furnish a report to the 75th Legislature.  The
bill included an expiration date of September 1, 1995 on the
system.

PURPOSE

As proposed, S.B. 1159 requires each arbitrator selected under this
subsection to be a disinterested person with no affiliation with a
party to the arbitration.  The bill also allows the General
Services Commission dispute resolution system to continue beyond
September 1, 1995

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 5.26(c), Article 601b, V.T.C.S. (State
Purchasing and General Services Act), to require any contract
covered by this section to be considered to have an arbitration
clause covering any dispute or claim, including a dispute or claim
relating to the breach of contract.  Requires each arbitrator
selected to be a disinterested person with no affiliation with a
party to the arbitration.  Expands time frame for conducting the
arbitration from 20 to 60 days.  Deletes the provision prohibiting
arbitration from being requested after the first anniversary of the
completion of the work under the contract.  Deletes the expiration
date of this subsection.  Makes nonsubstantive changes.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Emergency clause.
           Effective date: upon passage.

SUMMARY OF COMMITTEE ACTION

SB 1159 was considered by the Committee on State Affairs in a
public hearing on May 1, 1995.  The Chair laid out SB 1159 and
recognized Rep. Berlanga to explain the bill.  The following person
testified for the bill: Jim Sewell representing Association General
Contractors--Building.  the Chair recognized Rep. Berlanga to
close.  The Chair left SB 1159 pending.  SB 1159 was considered by
the Committee on State Affairs in a public hearing on May 16, 1995. 
The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed, by a record vote of:
9 ayes; 0 nays; 1 pnv; and 2 absent.