By Wentworth S.B. No. 1443
75R9130 GWK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to arbitration of certain claims against the Texas
1-3 Department of Criminal Justice arising from the construction of
1-4 certain state correctional facilities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. DEFINITIONS. In this Act:
1-7 (1) "Commission" means the Correctional Facilities
1-8 Construction Claims Commission.
1-9 (2) "State prison construction contractor" means a
1-10 person who as a prime contractor or subcontractor contracts with
1-11 the Texas Department of Criminal Justice to provide goods or
1-12 services in furtherance of the construction of a state correctional
1-13 facility the funding for which is provided for with proceeds from
1-14 the issuance of bonds authorized under Section 49-h(e), Article
1-15 III, Texas Constitution.
1-16 SECTION 2. CORRECTIONAL FACILITIES CONSTRUCTION CLAIMS
1-17 COMMISSION. (a) The Correctional Facilities Construction Claims
1-18 Commission is established.
1-19 (b) The commission consists of three members appointed by
1-20 the governor from a list of not less than six nominees provided by
1-21 the chief justice of the Supreme Court of Texas to the governor.
1-22 Each member must be a retired state or federal district or
1-23 appellate judge who is experienced in the adjudication of
1-24 construction contract disputes.
2-1 (c) The governor shall designate one member of the
2-2 commission as the presiding officer of the commission to serve in
2-3 that capacity at the pleasure of the governor.
2-4 (d) A member of the commission serves on a full-time basis
2-5 and is compensated as provided by the General Appropriations Act.
2-6 SECTION 3. GENERAL POWERS AND DUTIES OF COMMISSION. (a)
2-7 The commission may issue orders and take actions as necessary to
2-8 discharge its duties, including administering oaths, examining
2-9 witnesses, receiving evidence, issuing process, and levying
2-10 appropriate procedural sanctions on parties.
2-11 (b) Records of proceedings of the commission shall be
2-12 available to the public in the same manner and to the same extent
2-13 as records of proceedings conducted in a district court are
2-14 available to the public. Chapters 551 and 2001, Government Code,
2-15 do not apply to commission proceedings.
2-16 (c) The commission may employ staff as necessary for the
2-17 discharge of its duties and may contract with any person or state
2-18 agency other than the Texas Department of Criminal Justice for
2-19 administrative and support services.
2-20 SECTION 4. PROCEEDINGS; PARTIES. (a) The commission shall
2-21 conduct quasi-judicial, binding arbitration proceedings in
2-22 accordance with generally recognized construction contract
2-23 arbitration practice to determine what amount of money, if any,
2-24 shall be paid on an eligible claim submitted to the commission by a
2-25 state prison construction contractor.
2-26 (b) The commission shall establish procedures that are not
2-27 governed by but generally conform to the Texas Rules of Civil
3-1 Procedure and the Texas Rules of Civil Evidence.
3-2 (c) Parties to an arbitration proceeding before the
3-3 commission may settle at any time during the proceeding, at which
3-4 time the commission shall enter an agreed order incorporating the
3-5 terms of the parties' settlement.
3-6 SECTION 5. EFFECT OF ORDER. The commission shall issue an
3-7 order containing findings of fact and conclusions of law and
3-8 announcing its decision as to the amount if any the state shall pay
3-9 to a state prison construction contractor bringing an eligible
3-10 claim. An arbitration award may not include punitive or exemplary
3-11 damages. A decision of the commission is final and binding on all
3-12 parties to the proceeding and a party may not appeal the decision.
3-13 A commission order is enforceable in the same manner as is an order
3-14 of a district court.
3-15 SECTION 6. PAYMENT OF AWARD. (a) A state prison
3-16 construction contractor receiving an arbitration award from the
3-17 commission is entitled to payment in full from the proceeds of
3-18 general obligation bonds issued pursuant to Section 49-h(e),
3-19 Article III, Texas Constitution. No other state funds may be used
3-20 to satisfy an arbitration award under this Act. If sufficient
3-21 funds are not available from bond proceeds to satisfy all
3-22 arbitration awards granted by the commission, the commission shall
3-23 divide on a prorata basis available funds among the state prison
3-24 construction contractors receiving arbitration awards.
3-25 (b) The comptroller shall disburse funds from the state
3-26 treasury in satisfaction of an arbitration award as soon as
3-27 practicable after receipt from the commission of a certified copy
4-1 of the commission order making the award.
4-2 (c) The Texas Public Finance Authority shall issue general
4-3 obligation bonds previously authorized by Section 49-h(e), Article
4-4 III, Texas Constitution, to the extent necessary to finance any
4-5 arbitration award under this Act. The issuance of bonds, if
4-6 necessary, and the disbursement of funds from bond proceeds to
4-7 satisfy an arbitration award under this Act do not require the
4-8 approval of the bond review board or the attorney general.
4-9 SECTION 7. NO WAIVER OF SOVEREIGN IMMUNITY. This Act is
4-10 intended to provide an administrative process for resolving claims
4-11 against the state without resort to civil suit. This Act may not
4-12 be construed as a waiver of the state's sovereign immunity from
4-13 civil suit.
4-14 SECTION 8. TIME LIMIT. All proceedings before the
4-15 commission shall be completed on or before June 1, 1998. On
4-16 completion of its duties, the commission shall forward a final
4-17 report of its activities and findings to the governor, the
4-18 lieutenant governor, and the speaker of the house of
4-19 representatives. The report may include recommendations deemed
4-20 appropriate by the commission regarding future administration of
4-21 contracts for construction of state correctional facilities.
4-22 SECTION 9. EMERGENCY. The importance of this legislation
4-23 and the crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
4-26 days in each house be suspended, and this rule is hereby suspended,
4-27 and that this Act take effect and be in force from and after its
5-1 passage, and it is so enacted.