By Berlanga H.B. No. 3182
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to arbitration of a dispute with the General Services
1-3 Commission regarding certain building construction contracts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5.26(c), State Purchasing and General
1-6 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
1-7 amended to read as follows:
1-8 (c) Any contract covered by this section that is not
1-9 excepted by Sections 5.13 and 5.14 shall be considered to have an
1-10 arbitration clause as a part of the contract covering any dispute
1-11 or claim arising out of the contract, including a dispute or claim
1-12 relating to a breach of the contract. A party to a contract with a
1-13 claim or dispute against the other party shall give 30 days'
1-14 written notice of the nature and extent of the claim or dispute.
1-15 If the matters are not resolved within this notice period, either
1-16 party may commence arbitration by giving the other a written
1-17 request for arbitration and arbitrators shall be appointed. The
1-18 arbitrators shall be selected as provided in the contract. Each
1-19 arbitrator selected under this subsection must be a disinterested
1-20 person with no affiliation with a party to the arbitration. If the
1-21 contract does not provide for the selection of arbitrators, each
1-22 party shall appoint one arbitrator. The two appointed arbitrators
1-23 shall select a third arbitrator. <All arbitrators shall be
2-1 uninterested parties and have no affiliation with either party to
2-2 the contract.> The parties shall make their appointments within 10
2-3 business days after a written request for arbitration is delivered
2-4 from one party to another. The third arbitrator shall be appointed
2-5 within 10 business days after the appointment of the party
2-6 arbitrators. The arbitration shall be conducted within 60 <20>
2-7 business days after the appointments are made. The decision of the
2-8 arbitrators shall be binding on the parties. The arbitration shall
2-9 be governed by and may be compelled and enforced under the Texas
2-10 General Arbitration Act (Article 224 et seq., Revised Statutes) or
2-11 under the United States Arbitration Act (9 U.S.C. Section 1 et
2-12 seq.), if applicable. The arbitration award shall not include
2-13 punitive or exemplary damages nor attorney's fees. <Arbitration
2-14 may not be requested after the first anniversary of the completion
2-15 of the work under the contract.>
2-16 The Comptroller, with the assistance of the Center for Public
2-17 Policy Dispute Resolution of The University of Texas School of Law,
2-18 shall review the performance of the dispute resolution system
2-19 created herein and shall furnish a report to the 75th Legislature
2-20 in its Regular Session.
2-21 <This subsection expires on September 1, 1995, except that
2-22 the subsection remains in effect for the limited purpose of
2-23 governing an arbitration proceeding that begins before that date.
2-24 For the purpose of the expiration date, an arbitration proceeding
2-25 begins before September 1, 1995, if the written request for
3-1 arbitration is sent on or before August 31, 1995.>
3-2 SECTION 2. (a) The change in law made by this Act applies
3-3 only to arbitration of a claim or dispute for which a written
3-4 request for arbitration is delivered under Section 5.26(c), State
3-5 Purchasing and General Services Act (Article 601b, Vernon's Texas
3-6 Civil Statutes), on or after the effective date of this Act.
3-7 (b) Arbitration of a claim or dispute for which a written
3-8 request for arbitration is delivered under Section 5.26(c), State
3-9 purchasing and General Services Act (Article 601b, Vernon's Texas
3-10 Civil Statutes), before the effective date of this Act is covered
3-11 by the law in effect when the request was delivered, and the former
3-12 law is continued in effect for that purpose.
3-13 SECTION 3. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule regarding bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended,
3-18 and that this Act take effect and be in force from and after its
3-19 passage, and it is so enacted.