By: Brown S.B. No. 651
73R3472 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the arbitration of certain disputes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Article 224, Revised Statutes, is amended to read
1-5 as follows:
1-6 Art. 224. VALIDITY OF ARBITRATION AGREEMENTS. A written
1-7 agreement to submit any existing controversy to arbitration or a
1-8 provision in a written contract to submit to arbitration any
1-9 controversy thereafter arising between the parties is valid,
1-10 enforceable and irrevocable, save upon such grounds as exist at law
1-11 or in equity for the revocation of any contract. A court shall
1-12 refuse to enforce an agreement or contract provision to submit a
1-13 controversy to arbitration if the court finds it was unconscionable
1-14 at the time the agreement or contract was made. Provided, however,
1-15 that none of the provisions of this Act shall apply to:
1-16 (a) any collective bargaining agreement between an
1-17 employer and a labor union; or
1-18 (b) any <contract for the acquisition by an individual
1-19 person or persons (as distinguished from a corporation, trust,
1-20 partnership, association, or other legal entity) of real or
1-21 personal property, or services, or money or credit where the total
1-22 consideration therefor to be paid or furnished by the individual is
1-23 $50,000 or less, unless said individual and the other party or
1-24 parties agree in writing to submit to arbitration and such written
2-1 agreement is signed by the parties to such agreement and their
2-2 attorneys;>
2-3 <(c) any claim for personal injury except upon the
2-4 advice of counsel to both parties as evidenced by a written
2-5 agreement signed by counsel to both parties. A> claim for workers'
2-6 compensation insurance benefits <shall not be submitted to
2-7 arbitration under this Act>.
2-8 SECTION 2. This Act takes effect September 1, 1993, and
2-9 applies only to contracts entered into and claims filed on or after
2-10 that date. Contracts entered into and claims filed before the
2-11 effective date of this Act are covered by the law in effect
2-12 immediately before the effective date of this Act, and that law is
2-13 continued in effect for that purpose.
2-14 SECTION 3. The importance of this legislation and the
2-15 crowded condition of the calendars in both houses create an
2-16 emergency and an imperative public necessity that the
2-17 constitutional rule requiring bills to be read on three several
2-18 days in each house be suspended, and this rule is hereby suspended.