By Pitts                                         H.B. No. 851

      75R3340 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to requiring alternative dispute resolution procedures in

 1-3     certain civil actions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 154, Civil Practice and

 1-6     Remedies Code, is amended by adding Section 154.004 to read as

 1-7     follows:

 1-8           Sec. 154.004.  MANDATORY MEDIATION NOT REQUIRED FOR CERTAIN

 1-9     DISPUTES.  The provisions of this chapter requiring a court to

1-10     refer a pending dispute for resolution by an alternative dispute

1-11     resolution procedure do not apply to:

1-12                 (1)  a criminal proceeding;

1-13                 (2)  a proceeding in probate;

1-14                 (3)  an uncontested divorce; or

1-15                 (4)  a suit for adoption.

1-16           SECTION 2.  Section 154.021, Civil Practice and Remedies

1-17     Code, is amended by amending Subsection (a) and adding Subsections

1-18     (c) and (d) to read as follows:

1-19           (a)  Except for a dispute listed under Section 154.004, a [A]

1-20     court shall [may], on its own motion [or the motion of a party],

1-21     refer a pending suit that has not been settled by the parties

1-22     before the 60th day after the latest date on which a defendant was

1-23     served [dispute] for resolution by an alternative dispute

1-24     resolution procedure including:

 2-1                 (1)  an alternative dispute resolution system

 2-2     established under Chapter 152 [26, Acts of the 68th Legislature,

 2-3     Regular Session, 1983 (Article 2372aa, Vernon's Texas Civil

 2-4     Statutes)];

 2-5                 (2)  a dispute resolution organization; or

 2-6                 (3)  a nonjudicial and informally conducted forum for

 2-7     the voluntary settlement of citizens' disputes through the

 2-8     intervention of an impartial third party, including those

 2-9     alternative dispute resolution procedures described under this

2-10     subchapter.

2-11           (c)  In a suit referred for resolution by an alternative

2-12     resolution procedure under Subsection (a), the parties shall

2-13     conduct the first session of the procedure not later than the 45th

2-14     day after the date of referral unless the court referring the suit

2-15     allows the first session to begin at a later date.  The parties

2-16     shall continue the procedure until the mediator certifies that a

2-17     settlement or impasse has been reached.

2-18           (d)  A court may, on its own motion or the motion of a party,

2-19     refer a pending dispute for voluntary resolution by an alternative

2-20     dispute resolution procedure described by Subsection (a) if the

2-21     dispute is excepted from mandatory referral to mediation under

2-22     Section 154.004.

2-23           SECTION 3.  Section 154.022, Civil Practice and Remedies

2-24     Code, is amended by amending the heading and Subsection (a) to read

2-25     as follows:

2-26           Sec. 154.022.  NONMANDATORY REFERRAL: NOTIFICATION AND

2-27     OBJECTION.  (a)  If a court determines that a pending dispute

 3-1     excepted from mandatory referral to mediation under Section 154.004

 3-2     is appropriate for referral under Section 154.021, the court shall

 3-3     notify the parties of its determination.

 3-4           SECTION 4.  Subchapter B, Chapter 154, Civil Practice and

 3-5     Remedies Code, is amended by adding Section 154.0221 to read as

 3-6     follows:

 3-7           Sec. 154.0221.  MANDATORY REFERRAL:  NOTIFICATION AND

 3-8     OBJECTION.  (a)  A court that requires the use of an alternative

 3-9     dispute resolution procedure under Section 154.021 shall notify the

3-10     parties of its determination of the procedure the parties are

3-11     required to use.

3-12           (b)  Any party may, not later than the 10th day after the

3-13     date the party receives the notice under Subsection (a), file a

3-14     written objection to the referral.

3-15           (c)  If the court finds that there is reasonable basis for an

3-16     objection filed under Subsection (b), the court shall refer the

3-17     dispute to another alternative dispute resolution procedure.

3-18           SECTION 5.  Section 154.071(b), Civil Practice and Remedies

3-19     Code, is amended to read as follows:

3-20           (b)  For a case that the court was required to refer to an

3-21     alternative dispute resolution procedure under Section 154.021, the

3-22     [The] court shall [in its discretion may] incorporate the terms of

3-23     the agreement in the court's final decree disposing of the case.

3-24     For a case excepted from mandatory mediation under Section 154.004,

3-25     the court in its discretion may incorporate the terms of the

3-26     agreement in the court's final decree disposing of the case.

3-27           SECTION 6.  This Act takes effect September 1, 1997, and

 4-1     applies only to a cause of action that accrues on or after that

 4-2     date.  An action that accrued before the effective date of this Act

 4-3     is governed by the law applicable to the action immediately before

 4-4     the effective date of this Act, and that law is continued in effect

 4-5     for that purpose.

 4-6           SECTION 7.  The importance of this legislation and the

 4-7     crowded condition of the calendars in both houses create an

 4-8     emergency and an imperative public necessity that the

 4-9     constitutional rule requiring bills to be read on three several

4-10     days in each house be suspended, and this rule is hereby suspended.