79R1080 MTB-F

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.  DISPUTE RESOLUTION
	Sec. 2166.601.  DEFINITION.  In this subchapter, 
"contractor" includes a design professional, subcontractor, and 
vendor.
	Sec. 2166.602.  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.
	Sec. 2166.603.  CONSTRUCTION WITH OTHER LAW.  This 
subchapter does not apply to a claim for breach of contract to which 
Chapter 2260 applies.
	Sec. 2166.604.  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;
		(2)  promote collaborative problem solving; and                        
		(3)  provide for the use of neutral third party 
facilitators and mediators to reach final and binding resolutions 
to disputes in a prompt, fair, and efficient manner.
	(c)  The commission shall contract with a dispute resolution 
organization or a construction dispute resolution professional to 
design, implement, and administer the program created under this 
subchapter.
	Sec. 2166.605.  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 
applicable, be used to resolve a dispute arising under the 
contract.
	SECTION 2.  Subchapter M, Chapter 2166, Government Code, as 
added by this Act, applies only to a contract that was entered into 
on or after the effective date of this Act. A contract entered into 
before the effective date of this Act is governed by the law 
applicable to the contract immediately before the effective date of 
this Act, and that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.