By Hilderbran                                         H.B. No. 3452
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to binding arbitration to resolve certain disputes
 1-3     involving certain residential and custodial facilities licensed by
 1-4     the Texas Department of Human Services.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 242.252, Health and Safety Code, is
 1-7     amended to read as follows:
 1-8           Sec. 242.252.  ELECTION OF ARBITRATION.  (a)  Except as
 1-9     provided by Subsection (d), an [An] affected institution may elect
1-10     binding arbitration of any dispute to which this subchapter
1-11     applies.  Arbitration under this subchapter is an alternative to a
1-12     contested case hearing or to a judicial proceeding relating to the
1-13     assessment of a civil penalty.
1-14           (b)  An affected institution may elect arbitration under this
1-15     subchapter by filing the election with the court in which the
1-16     lawsuit is pending and sending notice of the election to the
1-17     department and the office of the attorney general.  The election
1-18     must be filed not later than the 10th day after the date on which
1-19     the answer is due or the date on which the answer is filed,
1-20     whichever is sooner [after a notice of hearing relating to any
1-21     dispute described by Section 242.251 is received by the
1-22     institution].  If a civil penalty is requested after the initial
1-23     filing of a Section 242.094 lawsuit through the filing of an
1-24     amended or supplemental pleading, an affected institution must
 2-1     elect arbitration not later than the 10th day after the date on
 2-2     which the amended or supplemental pleading is served on the
 2-3     affected institution or its counsel.
 2-4           (c)  The department may elect arbitration under this
 2-5     subchapter by filing the election with the court in which the
 2-6     lawsuit is pending and by notifying the institution of the election
 2-7     not later than the date that the institution may elect arbitration
 2-8     under Subsection (b).
 2-9           (d)  Arbitration may not be used to resolve a dispute related
2-10     to an affected institution that has had an award levied against it
2-11     in the previous five years.
2-12           (e)  If arbitration is not permitted under this subchapter or
2-13     the election of arbitration is not timely filed:
2-14                 (1)  the court will dismiss the arbitration election
2-15     and retain jurisdiction of the lawsuit; and
2-16                 (2)  the State Office of Administrative Hearings shall
2-17     dismiss the arbitration and has no jurisdiction over the lawsuit.
2-18           (f)  An election to engage in arbitration under this
2-19     subchapter is irrevocable and binding on the institution and the
2-20     department.
2-21           SECTION 2.  This Act takes effect September 1, 1999, and
2-22     applies only to a cause of action that accrues on or after that
2-23     date.  A cause of action that accrues before the effective date of
2-24     this Act is governed by the law in effect on the date the cause of
2-25     action accrues, and that law is continued in effect for that
2-26     purpose.
2-27           SECTION 3.  The importance of this legislation and the
 3-1     crowded condition of the calendars in both houses create an
 3-2     emergency and an imperative public necessity that the
 3-3     constitutional rule requiring bills to be read on three several
 3-4     days in each house be suspended, and this rule is hereby suspended.