HBA-ATS H.B. 3450 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3450 By: Hilderbran Civil Practices 4/19/1999 Introduced BACKGROUND AND PURPOSE Section 242.252 (Election of Arbitration), Health and Safety Code, authorizes the Texas Department of Human Services to elect arbitration in a dispute with a licensed nursing or convalescent home or related institution that relates to renewal of a license, suspension or revocation of a license, assessment of a civil penalty, assessment of a monetary penalty under, or assessment of a penalty. An arbitration order is binding and final on all parties, except for a right to appeal under Section 242.267 (Court Vacating Order). If the court finds that the order was procured by corruption, fraud, or misrepresentation, the decision of the arbitrator was arbitrary or capricious and against the weight of the evidence or the order exceeded the jurisdiction of the arbitrator, then the court is required to vacate the order. Although the statute provides a mechanism for vacating an order, it fails to provide a legal mechanism to enforce an order. Consequently, a party that has an order rendered against it may choose not to abide the order. H.B. 3450 requires the district court in which a suit to vacate an arbitrator's order has been filed, upon application of a party, to enter a judgment in conformity with the arbitration award, unless grounds are urged for vacating the order. The court's judgment must be enforced as any other judgment or decree. In addition, the court may award costs of the application and of any subsequent proceedings. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 242, Health and Safety Code, by adding Section 242.269, as follows: Sec. 242.269. ENFORCEMENT OF ARBITRATION ORDER. Requires the district court in which a suit to vacate an arbitrator's order has been filed, upon application of a party, to enter a judgment in conformity with the arbitration award, unless, within the time limits imposed under Section 242.067 (Report Recommending Administrative Penalty), grounds are urged for vacating the order under Section 242.067. Requires this judgment to be enforced as any other judgment or decree. Authorizes the court to award costs of the application and of any subsequent proceedings. SECTION 2. CIVIL CAUSES OF ACTION. Makes application of this Act prospective. SECTION 3. EFFECTIVE DATE. Effective date: September 1, 1999. SECTION 4. EMERGENCY. Emergency clause.