By: Uher H.B. No. 845 73R4210 CAE-F 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.