By: Chisum H.B. No. 1330
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a dispute resolution program for state
building construction contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2166, Government Code, is amended by
adding Subchapter M to read as follows:
SUBCHAPTER M. NONBINDING DISPUTE RESOLUTION AND AVOIDANCE
Sec. 2166.601. DEFINITION. In this subchapter,
"contractor" has the meaning assigned by Section 2260.001.
Sec. 2166.602. STATE POLICY. It is the policy of this state
to use alternative dispute resolution procedures as a method to
avoid and attempt to resolve disputes relating to construction
contracts in a prompt and efficient manner without infringing on
the parties' rights to a fair and impartial hearing of the claim.
Sec. 2166.603. APPLICATION OF SUBCHAPTER. This subchapter
applies to all building construction projects of the state,
including projects otherwise exempted from all or part of this
chapter under Section 2166.003 or 2166.004, except projects to
which Section 201.112, Transportation Code, applies.
Sec. 2166.604. CONSTRUCTION WITH OTHER LAW. The program
established under this subchapter is an alternative to the
procedures in Chapter 2260.
Sec. 2166.605. NONBINDING DISPUTE RESOLUTION AND AVOIDANCE
PROGRAM. (a) The commission by rule shall develop and implement a
nonbinding dispute resolution and avoidance program for use by
contractors and state agencies to avoid and attempt to resolve
disputes arising under a contract for a building construction
project. In developing the nonbinding dispute resolution and
avoidance program, the commission shall consider the size, scope,
and complexity of the construction projects included in the
program.
(b) The program must:
(1) encourage the prevention and avoidance of
construction project disputes through the use of partnering,
facilitation, dispute review boards, or other similar methods;
(2) promote collaborative problem solving;
(3) provide for the use of trained mediators and
facilitators to encourage settlement; and
(4) provide for the use of neutral third party
arbitrators or adjudicators to attempt to reach resolutions in a
prompt, fair, and efficient manner for disputes that are not
settled.
(c) The commission may contract with a dispute resolution
center or organization, an institution of higher education, or a
qualified construction industry professional to design, implement,
and administer the program created under this subchapter.
Sec. 2166.606. REQUIRED PROVISION IN BUILDING CONSTRUCTION
PROJECT CONTRACT. Each state agency shall include as a term of a
building construction project contract, including a contract for
the design of a building construction project, a provision stating
that the program created under this subchapter must, when elected
under Section 2166.607, be used to attempt to resolve a dispute
arising under the contract.
Sec. 2166.607. ELECTION OF PROGRAM. (a) At any time before
a contractor files a request for a contested case under Subchapter
C, Chapter 2260, to attempt to resolve a dispute arising under a
contract for a building construction project, the contractor may
elect to use the nonbinding dispute resolution program established
under this subchapter.
(b) An election to use the nonbinding dispute resolution
program under Subsection (a) to attempt to resolve a dispute is
binding on all parties to a contract for a building construction
project in relation to the dispute that is the basis for the
election.
Sec. 2166.608. PROGRAM USE ON OTHER PROJECTS. A state or
local government entity may adopt by rule the nonbinding dispute
resolution and avoidance program developed under this subchapter
for use on projects not covered by this subchapter.
Sec. 2166.609. SOVEREIGN IMMUNITY. This subchapter does not
waive sovereign immunity to suit or liability.
SECTION 2. Section 2260.004(a), Government Code, is amended
to read as follows:
(a) Each unit of state government that enters into a
contract to which this chapter applies shall include as a term of
the contract a provision stating that the dispute resolution
process used by the unit of state government under this chapter, or
if applicable and elected under Section 2166.607 the nonbinding
dispute resolution program established under Subchapter M, Chapter
2166, must be used to attempt to resolve a dispute arising under the
contract.
SECTION 3. Section 2260.005, Government Code, is amended to
read as follows:
Sec. 2260.005. EXCLUSIVE PROCEDURES [PROCEDURE]. Subject
to Section 2260.007 and Subchapter M, Chapter 2166, the procedures
contained in this chapter are exclusive and required prerequisites
to suit in accordance with Chapter 107, Civil Practice and Remedies
Code.
SECTION 4. (a) Subchapter M, Chapter 2166, Government
Code, as added by this Act, applies only to a contract entered into
on or after March 1, 2006. A contract entered into before March 1,
2006, is governed by the law applicable to the contract immediately
before that date, and that law is continued in effect for that
purpose.
(b) The Texas Building and Procurement Commission shall
develop and implement the program required by Subchapter M, Chapter
2166, Government Code, as added by this Act, not later than March 1,
2006.
SECTION 5. This Act takes effect September 1, 2005.