73R4210 CAE-F
          By Uher                                                H.B. No. 845
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the application of and choice of law or arbitration
    1-3  under the Deceptive Trade Practices-Consumer Protection Act.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 17.45, Business & Commerce Code, is
    1-6  amended by adding Subdivision (11) to read as follows:
    1-7              (11)  "Professional service" means:
    1-8                    (A)  service in the scope of the practice of
    1-9  accounting, architecture, law, pharmacy, brokerage of real estate,
   1-10  or professional engineering as defined by the laws of the state;
   1-11                    (B)  service performed by a licensed architect,
   1-12  certified public accountant, lawyer, pharmacist, real estate
   1-13  broker, or professional engineer in connection with the person's
   1-14  professional employment or practice; or
   1-15                    (C)  any service that exclusively involves the
   1-16  providing of advice, judgment, opinion, or similar professional
   1-17  skill that is delivered under the terms of a written contract, the
   1-18  fee for which service has a cumulative total of $25,000 or more and
   1-19  that is provided by a person who has been in the business of
   1-20  rendering that service for at least five consecutive years.
   1-21        SECTION 2.  Section 17.49, Business & Commerce Code, is
   1-22  amended by adding Subsection (c) to read as follows:
   1-23        (c)  Notwithstanding any other law, nothing in this
   1-24  subchapter applies to a claim for damages caused by the negligent
    2-1  rendering of a professional service the essence of which is the
    2-2  providing of advice, judgment, opinion, or similar professional
    2-3  skill, regardless of whether the service involves or results in one
    2-4  or more goods except as to an express representation of a material
    2-5  fact in a printed advertisement, radio advertisement, or television
    2-6  advertisement made by a person who provides a professional service
    2-7  or someone acting on the person's behalf.
    2-8        SECTION 3.  Subchapter E, Chapter 17, Business & Commerce
    2-9  Code, is amended by adding Section 17.64 to read as follows:
   2-10        Sec. 17.64.  CHOICE OF LAW AND ARBITRATION.  The public
   2-11  policy of this state encourages the resolution of existing or
   2-12  future disputes, controversies, or claims through alternate dispute
   2-13  resolution procedures, including common-law and statutory
   2-14  arbitration.  Notwithstanding Section 17.42 and Section 17.44 of
   2-15  this code or any other provision of this subchapter, this
   2-16  subchapter does not invalidate or void an otherwise enforceable
   2-17  contractual choice of law provision or an agreement to resolve by
   2-18  arbitration or other alternate dispute resolution procedure an
   2-19  existing or future dispute, controversy, or claim under this
   2-20  subchapter.   An agreement to arbitrate shall be liberally
   2-21  construed in favor of arbitration.  If a contract indicates that
   2-22  the parties intended to resolve by arbitration an existing or
   2-23  future dispute, controversy, or claim arising out of or relating to
   2-24  a transaction that is the basis for the consumer's dispute,
   2-25  controversy, or claim under this subchapter, the consumer's
   2-26  dispute, controversy, or claim under this subchapter that arises
   2-27  out of or relates to that transaction is subject to arbitration
    3-1  even though some or all of the dispute, controversy, or claim under
    3-2  this subchapter is ancillary to or arises independently of the
    3-3  transaction.
    3-4        SECTION 4.  This Act takes effect September 1, 1993.
    3-5        SECTION 5.  The changes in the law made by this Act apply
    3-6  only to an action commenced on or after the effective date of this
    3-7  Act or to an action pending on the effective date of this Act for
    3-8  which judgment has not been entered.
    3-9        SECTION 6.  The importance of this legislation and the
   3-10  crowded condition of the calendars in both houses create an
   3-11  emergency and an imperative public necessity that the
   3-12  constitutional rule requiring bills to be read on three several
   3-13  days in each house be suspended, and this rule is hereby suspended.
   3-14                       COMMITTEE AMENDMENT NO. 1
   3-15        Amend H.B. 845 in the following manner:
   3-16        Insert the phrase "insurance agent," after the term
   3-17  "certified public accountant," on page 1, SECTION 1, line 12.
   3-18                                                              Averitt