By: Sibley S.B. No. 1159
A BILL TO BE ENTITLED
AN ACT
1-1 relating to arbitration of a dispute with the General Services
1-2 Commission regarding certain building construction contracts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (c), Section 5.26, State Purchasing
1-5 and General Services Act (Article 601b, Vernon's Texas Civil
1-6 Statutes), is amended to read as follows:
1-7 (c) Any contract covered by this section that is not
1-8 excepted by Sections 5.13 and 5.14 shall be considered to have an
1-9 arbitration clause as a part of the contract covering any dispute
1-10 or claim arising out of the contract, including a dispute or claim
1-11 relating to a breach of the contract. A party to a contract with a
1-12 claim or dispute against the other party shall give 30 days'
1-13 written notice of the nature and extent of the claim or dispute.
1-14 If the matters are not resolved within this notice period, either
1-15 party may commence arbitration by giving the other a written
1-16 request for arbitration and arbitrators shall be appointed. The
1-17 arbitrators shall be selected as provided in the contract. Each
1-18 arbitrator selected under this subsection must be a disinterested
1-19 person with no affiliation with a party to the arbitration. If the
1-20 contract does not provide for the selection of arbitrators, each
1-21 party shall appoint one arbitrator. The two appointed arbitrators
1-22 shall select a third arbitrator. <All arbitrators shall be
1-23 uninterested parties and have no affiliation with either party to
1-24 the contract.> The parties shall make their appointments within 10
2-1 business days after a written request for arbitration is delivered
2-2 from one party to another. The third arbitrator shall be appointed
2-3 within 10 business days after the appointment of the party
2-4 arbitrators. The arbitration shall be conducted within 60 <20>
2-5 business days after the appointments are made. The decision of the
2-6 arbitrators shall be binding on the parties. The arbitration shall
2-7 be governed by and may be compelled and enforced under the Texas
2-8 General Arbitration Act (Article 224 et seq., Revised Statutes) or
2-9 under the United States Arbitration Act (9 U.S.C. Section 1 et
2-10 seq.), if applicable. The arbitration award shall not include
2-11 punitive or exemplary damages nor attorney's fees. <Arbitration
2-12 may not be requested after the first anniversary of the completion
2-13 of the work under the contract.>
2-14 The Comptroller, with the assistance of the Center for Public
2-15 Policy Dispute Resolution of The University of Texas School of Law,
2-16 shall review the performance of the dispute resolution system
2-17 created herein and shall furnish a report to the 75th Legislature
2-18 in its Regular Session.
2-19 <This subsection expires on September 1, 1995, except that
2-20 the subsection remains in effect for the limited purpose of
2-21 governing an arbitration proceeding that begins before that date.
2-22 For the purpose of the expiration date, an arbitration proceeding
2-23 begins before September 1, 1995, if the written request for
2-24 arbitration is sent on or before August 31, 1995.>
2-25 SECTION 2. (a) The change in law made by this Act applies
2-26 only to arbitration of a claim or dispute for which a written
2-27 request for arbitration is delivered under Subsection (c), Section
3-1 5.26, State Purchasing and General Services Act (Article 601b,
3-2 Vernon's Texas Civil Statutes), on or after the effective date of
3-3 this Act.
3-4 (b) Arbitration of a claim or dispute for which a written
3-5 request for arbitration is delivered under Subsection (c), Section
3-6 5.26, State Purchasing and General Services Act (Article 601b,
3-7 Vernon's Texas Civil Statutes), before the effective date of this
3-8 Act is covered by the law in effect when the request was delivered,
3-9 and the former law is continued in effect for that purpose.
3-10 SECTION 3. The importance of this legislation and the
3-11 crowded condition of the calendars in both houses create an
3-12 emergency and an imperative public necessity that the
3-13 constitutional rule requiring bills to be read on three several
3-14 days in each house be suspended, and this rule is hereby suspended,
3-15 and that this Act take effect and be in force from and after its
3-16 passage, and it is so enacted.