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.