Amend CSHB 1330 as follows:                                                  
	1.  On page 1, line 13, between "to" and "resolve", insert 
"avoid and".
	2.  On page 1, line 24, between "DISPUTE" and "RESOLUTION", 
insert "AVOIDANCE AND".
	3.  On page 2, line 2, between "to" and "resolve", insert 
"avoid and".
	4.  On page 2, line 4, between "dispute" and "resolution", 
insert "avoidance and".
	5.  On page 2, between lines 21 and 22, insert a new 
subsection (d) to read as follows:
	(d)  Only a party that is in a contractual relationship with 
the commission or using agency may use the resolution system under 
Subsection (b)(4).
	6.  On page 2, between lines 21 and 22, insert new sections 
2166.066 and 2166.067 to read as follows and renumber the sections 
that follow appropriately:
	Sec. 2166.606.  PAYMENT OF CLAIM.  (a)  The commission or 
using agency shall pay the amount of a claim or part of a claim 
brought under this subchapter if a mediated or negotiated 
settlement is reached or a third party arbitrator or adjudicator 
finds, by a preponderance of the evidence, that under the laws of 
this state the claim or part of the claim is valid or that payment is 
due.
	(b)  The commission or using agency shall pay a claim under 
this subchapter from money appropriated to it.  The amount 
negotiated, settled, or awarded shall be paid from money previously 
appropriated.  If the previously appropriated amount is 
insufficient to pay the claim fully, the balance of the claim shall 
be paid:
		(1)  from money appropriated to the commission or using 
agency in its next appropriation; or
		(2)  if the commission or using agency:                                
			(A)  requests permission from the Legislative 
Budget Board to pay the balance of the claim from money previously 
appropriated; and
			(B)  the Legislative Budget Board gives its 
approval to pay the claim.
	Sec. 2166.607.  REPORT AND RECOMMENDATION TO THE STATE OFFICE 
OF ADMINISTRATIVE HEARINGS.
	(a)  The third party arbitrator or adjudicator shall issue a 
written report to the State Office of Administrative Hearings if:
		(1)  the third party arbitrator or adjudicator finds a 
claim is valid under 2166.606; and
		(2)  the commission has certified to the arbitrator or 
adjudicator that money previously appropriated to the commission or 
using agency is insufficient to pay the claim.
	(b)  The State Office of Administrative hearings shall submit 
all written reports received under this subchapter to the 
Legislature.
	(c)  A contractor may submit the decision of the arbitrator or 
adjudicator to the State Office of Administrative Hearings for 
reporting to the Legislature if the arbitrator, adjudicator, 
commission, or using agency has not done so by the 15th day after 
the arbitrator or adjudicator has reached a decision.
	(d)  If after the State Office of Administrative Hearings has 
submitted a report under section 2166.607(b), the commission or 
using agency pays in full or in part the balance of the claim under 
section 2166.606(b), the paying commission or using agency shall 
report to the Legislature the amount of the payment that was made.
	7.  On page 2, line 27, strike "2166.607" and substitute 
"2166.609"
	8.  On page 3, between lines 9 and 10, insert the following 
new section 2166.610, to read as follows:
	Sec 2166.610.  A state or local governmental entity may adopt 
by rule the program developed under this chapter for use on projects 
not covered by this subchapter.