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.