By Puente H.B. No. 638
74R1770 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to arbitration agreements in certain contracts.
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;
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 $200,000 <$50,000> or less, unless said individual and the other
1-24 party or parties agree in writing to submit to arbitration and such
2-1 written agreement is signed by the parties to such agreement and
2-2 their 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 shall not be submitted to arbitration under this Act.
2-7 SECTION 2. This Act takes effect September 1, 1995, and
2-8 applies only to a contract entered into on or after that date. A
2-9 contract entered into before the effective date of this Act is
2-10 governed by the law in effect at the time the contract was entered
2-11 into, and that law is continued in effect for that purpose.
2-12 SECTION 3. The importance of this legislation and the
2-13 crowded condition of the calendars in both houses create an
2-14 emergency and an imperative public necessity that the
2-15 constitutional rule requiring bills to be read on three several
2-16 days in each house be suspended, and this rule is hereby suspended.