10 TAC §§318.1 - 318.3
The Texas Residential Construction Commission (the "commission")
adopts on an emergency basis new rules at Title 10, Part 7, Chapter 318, Subchapter
A, Arbitrations between Homeowners and Builders, §§318.1 - 318.3,
regarding the filing of arbitration awards with the commission. Section 318.1
states the purpose of the rules. Section 318.2 defines arbitration and arbitrator
and §318.3 describes the instances in which the filing of arbitration
awards is mandatory and the instances in which it is voluntary.
The rules are adopted on an emergency basis to comply with new legislation,
House Bill 730 (Act effective September 1, 2003, 78th Legislature, Regular
Session, Chapter 458, §1.01). The new rules are adopted under new Chapter
437, Property Code (Act effective September 1, 2003, 78th Legislature, Regular
Session, Chapter 458, §1.01), which provides that after January 1, 2004,
certain persons must file arbitration awards relating to residential construction
with the commission. The adoption of the emergency rules permits the commission
to comply with the timetable prescribed by House Bill 730 and set out in Title
16, Property Code.
The statutory provisions affected by the emergency adoption are
those set forth in the Title 16, Property Code and House Bill 730, 78th Legislature.
No other statutes, articles, or codes are affected by the adoption.
§318.1.Purpose.
(a)
This subchapter applies only to a dispute between a homeowner
and a builder that involves an alleged construction defect.
(b)
This subchapter supplements Chapter 171, Civil Practices
and Remedies Code, and the Federal Arbitration Act (9 U.S.C. §§1
- 16), as amended.
§318.2.Definitions.
(a)
Arbitration--The procedure for dispute resolution described
by §154.027, Texas Civil Practices and Remedies Code, as it may be amended
from time to time.
(b)
Arbitrator--A neutral individual who hears the claims of
the parties to a dispute and renders a decision and who is:
(1)
chosen by the parties to the dispute; or
(2)
appointed by a court; or
(3)
selected by a third party under an agreement of the parties
to the dispute or in accordance with applicable rules.
§318.3.Filing of Arbitration Awards.
(a)
Mandatory. If an arbitration award to which this subchapter
applies is filed in a court of competent jurisdiction in this state, the filer
shall also file a summary of the arbitration award with the commission no
later than the thirtieth day after the date the award is made by the arbitrator.
(b)
The award summary shall include:
(1)
the names of the parties to the dispute;
(2)
the name of each party's attorney, if any;
(3)
the name of the arbitrator(s) who conducted the arbitration;
(4)
the name of the party who administered the arbitration,
if any;
(5)
the total fees charged to conduct the arbitration;
(6)
a general statement of each issue in dispute;
(7)
the arbitrator's determination, including the party that
prevailed in each issue in dispute; and
(8)
the date of the arbitrator's award.
(c)
An agreement to prohibit the disclosure of the information
listed in subsection (b) of this section is unenforceable.
(d)
If a person required to file an award under this section
and fails to do so in the time period required by subsection (a) of this section,
that person shall pay a late fee as established by the commission.
(e)
A party to an arbitration or an attorney for a party may
report to the commission the failure to file an award by the person responsible
for filing under subsection (a) of this section.
(f)
Voluntary filing. Any party to an arbitration award covered
by this section may voluntarily file the information contained in subsection
(b) of this section.
(g)
This section applies only to an arbitration award in an
arbitration that is initiated on or after January 1, 2004.
This agency hereby certifies that the emergency adoption
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of
the Secretary of State on February 23, 2004.
TRD-200401276
Susan Durso
General Counsel
Texas Residential Construction Commission
Effective Date: February 23, 2004
Expiration Date: June 21, 2004
For further information, please call: (512) 475-0595