BILL ANALYSIS


                                                        S.B. 1159
                                                       By: Sibley
                                                    State Affairs
                                                         04-07-95
                                     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.