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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3452 was passed by the House on May
11, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3452 was passed by the Senate on May
26, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor