By Hilderbran                                         H.B. No. 3452
         76R8311 MCK-F                           
                                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].
1-23           (c)  The department may elect arbitration under this
1-24     subchapter by filing the election with the court in which the
 2-1     lawsuit is pending and by notifying the institution of the election
 2-2     not later than the date that the institution may elect arbitration
 2-3     under Subsection (b).
 2-4           (d)  Except as provided by this subsection, arbitration may
 2-5     not be used to resolve a lawsuit under this subchapter that alleges
 2-6     that there has been a death, serious bodily injury, sexual abuse,
 2-7     or physical abuse of a resident.  The department may elect
 2-8     arbitration in a lawsuit that alleges that there has been a death,
 2-9     serious bodily injury, sexual abuse, or physical abuse of a
2-10     resident only if the affected institution agrees to arbitration.
2-11     The affected institution must respond to the department's request
2-12     for arbitration not later than the 10th day after the date the
2-13     department files the request for arbitration.
2-14           (e)  If arbitration is not permitted under this subchapter or
2-15     the election of arbitration is not timely filed:
2-16                 (1)  the court will dismiss the arbitration election
2-17     and retain jurisdiction of the lawsuit; and
2-18                 (2)  the State Office of Administrative Hearings shall
2-19     dismiss the arbitration and has no jurisdiction over the lawsuit.
2-20           (f)  An election to engage in arbitration under this
2-21     subchapter is irrevocable and binding on the institution and the
2-22     department.
2-23           SECTION 2.  This Act takes effect September 1, 1999, and
2-24     applies only to a cause of action that accrues on or after that
2-25     date.  A cause of action that accrues before the effective date of
2-26     this Act is governed by the law in effect on the date the cause of
2-27     action accrues, and that law is continued in effect for that
 3-1     purpose.
 3-2           SECTION 3.  The importance of this legislation and the
 3-3     crowded condition of the calendars in both houses create an
 3-4     emergency and an imperative public necessity that the
 3-5     constitutional rule requiring bills to be read on three several
 3-6     days in each house be suspended, and this rule is hereby suspended.