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.
2-7 * * * * *