By Sibley S.B. No. 1159
74R5185 MJW-F
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
1-24 uninterested parties and have no affiliation with either party to
2-1 the contract.> The parties shall make their appointments within 10
2-2 business days after a written request for arbitration is delivered
2-3 from one party to another. The third arbitrator shall be appointed
2-4 within 10 business days after the appointment of the party
2-5 arbitrators. The arbitration shall be conducted within 60 <20>
2-6 business days after the appointments are made. The decision of the
2-7 arbitrators shall be binding on the parties. The arbitration shall
2-8 be governed by and may be compelled and enforced under the Texas
2-9 General Arbitration Act (Article 224 et seq., Revised Statutes) or
2-10 under the United States Arbitration Act (9 U.S.C. Section 1 et
2-11 seq.), if applicable. The arbitration award shall not include
2-12 punitive or exemplary damages nor attorney's fees. <Arbitration
2-13 may not be requested after the first anniversary of the completion
2-14 of the work under the contract.>
2-15 The Comptroller, with the assistance of the Center for Public
2-16 Policy Dispute Resolution of The University of Texas School of Law,
2-17 shall review the performance of the dispute resolution system
2-18 created herein and shall furnish a report to the 75th Legislature
2-19 in its Regular Session.
2-20 <This subsection expires on September 1, 1995, except that
2-21 the subsection remains in effect for the limited purpose of
2-22 governing an arbitration proceeding that begins before that date.
2-23 For the purpose of the expiration date, an arbitration proceeding
2-24 begins before September 1, 1995, if the written request for
2-25 arbitration is sent on or before August 31, 1995.>
2-26 SECTION 2. (a) The change in law made by this Act applies
2-27 only to arbitration of a claim or dispute for which a written
3-1 request for arbitration is delivered under Section 5.26(c), State
3-2 Purchasing and General Services Act (Article 601b, Vernon's Texas
3-3 Civil Statutes), on or after the effective date of this Act.
3-4 (b) Arbitration of a claim or dispute for which a written
3-5 request for arbitration is delivered under Section 5.26(c), State
3-6 Purchasing and General Services Act (Article 601b, Vernon's Texas
3-7 Civil Statutes), before the effective date of this Act is covered
3-8 by the law in effect when the request was delivered, and the former
3-9 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.