ZEM C.S.H.B. 1425 75(R)BILL ANALYSIS CIVIL PRACTICES C.S.H.B. 1425 By: Dunnam 4-25-97 Committee Report (Substituted) BACKGROUND Arbitration in Texas is often governed by either or both the Texas Arbitration Act (TAA) and the Federal Arbitration Act (FAA) by virtue of its incorporation into agreements between two parties. A party who is improperly denied arbitration under an agreement that incorporates the TAA may file an interlocutory appeal pursuant to Section 171.017 of the Texas Civil Practice and Remedies Code. However, there is no such right to conduct an interlocutory appeal of such a denial of an agreement that incorporates the FAA. Rather, a party who is improperly denied arbitration under an agreement that incorporates the FAA must seek a writ of mandamus. When an agreement incorporates both the TAA and the FAA, and the Trial Court improperly denies arbitration, the proponent of arbitration must appeal the denial of the TAA and file a separate writ of mandamus of the FAA. This inconsistency exists in the entire arbitration process in regard to appellate review under each act. PURPOSE The purpose of this legislation is to eliminate inconsistencies between the appellate review process of matters governed by the Federal Arbitration Act those under the Texas Arbitration Act. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Repeals Section 171.017, Civil Practice and Remedies Code, which relates to appeals from arbitration orders or awards. SECTION 2. Applies prospectively; savings clause. SECTION 3. Effective date: September 1, 1997. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute repeals Sec. 171.017 of the Civil Practice and Remedies Code. relating to appeals from arbitration orders or awards instead of amending Sec. 51.014 of the Civil Practice and Remedies Code, relating to appeals from interlocutory orders.