79R7434 MTB-F


By:  Chisum                                                       H.B. No. 1330

Substitute the following for H.B. No. 1330:                                   

By:  Keffer of Eastland                                       C.S.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.  DISPUTE RESOLUTION
	Sec. 2166.601.  DEFINITION.  In this subchapter, 
"contractor" includes a construction manager, design-build firm, 
general contractor, subcontractor, and vendor.
	Sec. 2166.602.  STATE POLICY.  It is the policy of this state 
to favor the use of alternative dispute resolution procedures as a 
method 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.  DISPUTE RESOLUTION PROGRAM.  (a) The 
commission by rule shall develop and implement a dispute resolution 
program for use by contractors and state agencies to resolve 
disputes arising under a contract for a building construction 
project.  In developing the dispute resolution 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 reach final and binding 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 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 resolve a dispute arising under a contract for a 
building construction project, the contractor may elect to use the 
dispute resolution program established under this subchapter.
	(b)  An election under Subsection (a) 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.
	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 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.  PREREQUISITE TO SUIT [EXCLUSIVE PROCEDURE]. 
Subject to Section 2260.007, 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.