1-1  By:  Sibley                                           S.B. No. 1159
    1-2        (In the Senate - Filed March 9, 1995; March 15, 1995, read
    1-3  first time and referred to Committee on State Affairs;
    1-4  April 7, 1995, reported favorably by the following vote:  Yeas 11,
    1-5  Nays 0; April 7, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to arbitration of a dispute with the General Services
    1-9  Commission regarding certain building construction contracts.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Subsection (c), Section 5.26, State Purchasing
   1-12  and General Services Act (Article 601b, Vernon's Texas Civil
   1-13  Statutes), is amended to read as follows:
   1-14        (c)  Any contract covered by this section that is not
   1-15  excepted by Sections 5.13 and 5.14 shall be considered to have an
   1-16  arbitration clause as a part of the contract covering any dispute
   1-17  or claim arising out of the contract, including a dispute or claim
   1-18  relating to a breach of the contract.  A party to a contract with a
   1-19  claim or dispute against the other party shall give 30 days'
   1-20  written notice of the nature and extent of the claim or dispute.
   1-21  If the matters are not resolved within this notice period, either
   1-22  party may commence arbitration by giving the other a written
   1-23  request for arbitration and arbitrators shall be appointed.  The
   1-24  arbitrators shall be selected as provided in the contract.  Each
   1-25  arbitrator selected under this subsection must be a disinterested
   1-26  person with no affiliation with a party to the arbitration.  If the
   1-27  contract does not provide for the selection of arbitrators, each
   1-28  party shall appoint one arbitrator.  The two appointed arbitrators
   1-29  shall select a third arbitrator.  <All arbitrators shall be
   1-30  uninterested parties and have no affiliation with either party to
   1-31  the contract.>  The parties shall make their appointments within 10
   1-32  business days after a written request for arbitration is delivered
   1-33  from one party to another.  The third arbitrator shall be appointed
   1-34  within 10 business days after the appointment of the party
   1-35  arbitrators.  The arbitration shall be conducted within 60 <20>
   1-36  business days after the appointments are made.  The decision of the
   1-37  arbitrators shall be binding on the parties.  The arbitration shall
   1-38  be governed by and may be compelled and enforced under the Texas
   1-39  General Arbitration Act (Article 224 et seq., Revised Statutes) or
   1-40  under the United States Arbitration Act (9 U.S.C.  Section 1 et
   1-41  seq.), if applicable.  The arbitration award shall not include
   1-42  punitive or exemplary damages nor attorney's fees.  <Arbitration
   1-43  may not be requested after the first anniversary of the completion
   1-44  of the work under the contract.>
   1-45        The Comptroller, with the assistance of the Center for Public
   1-46  Policy Dispute Resolution of The University of Texas School of Law,
   1-47  shall review the performance of the dispute resolution system
   1-48  created herein and shall furnish a report to the 75th Legislature
   1-49  in its Regular Session.
   1-50        <This subsection expires on September 1, 1995, except that
   1-51  the subsection remains in effect for the limited purpose of
   1-52  governing an arbitration proceeding that begins before that date.
   1-53  For the purpose of the expiration date, an arbitration proceeding
   1-54  begins before September 1, 1995, if the written request for
   1-55  arbitration is sent on or before August 31, 1995.>
   1-56        SECTION 2.  (a)  The change in law made by this Act applies
   1-57  only to arbitration of a claim or dispute for which a written
   1-58  request for arbitration is delivered under Subsection (c), Section
   1-59  5.26, State Purchasing and General Services Act (Article 601b,
   1-60  Vernon's Texas Civil Statutes), on or after the effective date of
   1-61  this Act.
   1-62        (b)  Arbitration of a claim or dispute for which a written
   1-63  request for arbitration is delivered under Subsection (c), Section
   1-64  5.26, State Purchasing and General Services Act (Article 601b,
   1-65  Vernon's Texas Civil Statutes), before the effective date of this
   1-66  Act is covered by the law in effect when the request was delivered,
   1-67  and the former law is continued in effect for that purpose.
   1-68        SECTION 3.  The importance of this legislation and the
    2-1  crowded condition of the calendars in both houses create an
    2-2  emergency and an imperative public necessity that the
    2-3  constitutional rule requiring bills to be read on three several
    2-4  days in each house be suspended, and this rule is hereby suspended,
    2-5  and that this Act take effect and be in force from and after its
    2-6  passage, and it is so enacted.
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