79R1957 MFC-D
By: West S.B. No. 503
A BILL TO BE ENTITLED
AN ACT
relating to making the award of an arbitration an open record.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.086(b), Civil Practice and Remedies
Code, is amended to read as follows:
(b) During the period an arbitration is pending before the
arbitrators or at or after the conclusion of the arbitration, a
party may file an application for a court order, including an order:
(1) that was referred to or that would serve a purpose
referred to in Subsection (a);
(2) to require compliance by an adverse party or any
witness with an order made under this chapter by the arbitrators
during the arbitration;
(3) to require the issuance and service under court
order, rather than under the arbitrators' order, of a subpoena,
notice, or other court process:
(A) in support of the arbitration; or
(B) in an ancillary proceeding in rem, including
by attachment, garnishment, or sequestration, in the manner of and
subject to the conditions under which the proceeding may be
conducted ancillary to a civil action in a district court;
(4) to require security for the satisfaction of a
court judgment that may be later entered under an award;
(5) to support the enforcement of a court order
entered under this chapter;
(6) to seal the award of the arbitration under Section
177.053; or
(7) [(6)] to obtain relief under Section 171.087,
171.088, 171.089, or 171.091.
SECTION 2. Title 7, Civil Practice and Remedies Code, is
amended by adding Chapter 177 to read as follows:
CHAPTER 177. OPEN RECORDS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 177.001. OPEN RECORDS POLICY. (a) It is this state's
policy to provide open access to the records of all decisions in
civil disputes, whether adjudicated or arbitrated, to create
precedential guidance for future cases.
(b) It is this state's policy to ensure that a person's right
to the fair and impartial hearing and resolution of a civil
complaint is not infringed. To protect that right, it is in the
public interest and the purpose of this chapter to require the
provision of information needed to evaluate whether the public
policy supporting mandatory arbitration is being served and to
establish a basic system for evaluating and ensuring the
accountability of arbitrators and arbitration services providers.
(c) Arbitration awards that qualify may be sealed in
accordance with Section 177.053 in order to ensure that procedures
relating to records in arbitration cases are commensurate with
those within the court system.
Sec. 177.002. DEFINITIONS. In this chapter:
(1) "Arbitration" means the procedure for dispute
resolution described by Section 154.027.
(2) "Arbitration services provider" means a person
that holds itself out as:
(A) managing, coordinating, or administering
arbitrations;
(B) providing the services of arbitrators;
(C) making referrals or appointments to
arbitrators; or
(D) providing lists of arbitrators.
(3) "Arbitrator" means a neutral individual who hears
the claims of the parties to a dispute and renders a decision and
who is:
(A) chosen by the parties to the dispute;
(B) appointed by a court; or
(C) selected by an arbitration services provider
under an agreement of the parties or applicable rules.
(4) "Office of court administration" means the Office
of Court Administration of the Texas Judicial System.
Sec. 177.003. APPLICABILITY. The requirements of this
chapter supplement, in any arbitration held in this state, the
arbitration law of this state and any other state and the Federal
Arbitration Act (9 U.S.C. Sections 1-16), as amended, and apply to
any arbitration subject to those laws.
[Sections 177.004-177.050 reserved for expansion]
SUBCHAPTER B. AWARD FILING PROCEDURES
Sec. 177.051. AWARD FILING. For each arbitration, the
arbitrator who conducts the arbitration or, if an arbitration
services provider administers the arbitration, the services
provider shall file the arbitration award before the 31st day after
the date of the arbitration award with the office of court
administration.
Sec. 177.052. AWARD INFORMATION. The award filed must
contain the following information:
(1) the names of the parties to the dispute;
(2) the name of each party's attorney, if any;
(3) the name of the arbitrator conducting the
arbitration;
(4) the name of the arbitration services provider
administering the arbitration, if any;
(5) the arbitrator's award; and
(6) the date of the arbitrator's award.
Sec. 177.053. SEALING OF AWARD. (a) Except as provided by
this section, a party to an arbitration may apply to a court in the
county in which the arbitration is held to have the arbitrator's
award sealed in accordance with the standards and procedures under
Paragraphs 1 through 6, Rule 76a, Texas Rules of Civil Procedure.
(b) The party seeking to have an award sealed or unsealed
shall post notice as required by Paragraph 3, Rule 76a, Texas Rules
of Civil Procedure, except that on the day notice is posted the
party must:
(1) file a verified copy of the posted notice with the
clerk of the court in which the motion to seal or unseal was filed
and with the office of court administration; and
(2) notify all other parties to the arbitration of the
motion to seal or unseal by a method of service described by Rule
21a, Texas Rules of Civil Procedure.
(c) A party to an arbitration may request that the court
issue a temporary sealing order according to the method of
Paragraph 5, Rule 76a, Texas Rules of Civil Procedure, if the
requesting party notifies all other parties to the arbitration by a
method of service described by Rule 21a, Texas Rules of Civil
Procedure.
(d) The court receiving the application shall treat the
award of the arbitrator as if it were a court record under Paragraph
2, Rule 76a, Texas Rules of Civil Procedure.
(e) If the court grants or denies the application for
sealing the award, the court shall notify the parties to the
dispute, the arbitrator, the arbitration services provider, if any,
the clerk of the court, and the office of court administration of
its decision.
(f) If the court grants the request for sealing, the parties
to the dispute, the arbitrator, the arbitration services provider,
if any, the clerk of the court, and the office of court
administration shall treat the award as if it were a court record
sealed under Rule 76a, Texas Rules of Civil Procedure, and may not
disclose it unless the award is later unsealed.
(g) The rules for unsealing of court records, continuing
jurisdiction, and appeal under Paragraphs 6, 7, and 8, Rule 76a,
Texas Rules of Civil Procedure, apply to an award sealed under this
section.
[Sections 177.054-177.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT PROVISIONS
Sec. 177.101. LATE FILING FEE. (a) The director of the
office of court administration, under the supervision of the chief
justice, shall implement procedures for the collection of a fee not
to exceed $100 for the late filing of an arbitration award in
accordance with rules adopted by the supreme court for the
efficient administration of justice.
(b) A party to an arbitration, or an attorney for the party,
may report an overdue filing of the arbitration award to the office
of court administration.
Sec. 177.102. LATE AWARD FILERS; INELIGIBILITY FOR
ARBITRATION ADMINISTRATION. (a) An arbitrator or arbitration
services provider that has failed more than three times in the
preceding 12-month period to timely file arbitration awards is
ineligible to administer a court-ordered arbitration.
(b) The office of court administration shall compile and
publish at least twice each year an updated list of arbitrators or
arbitration services providers that are ineligible to administer a
court-ordered arbitration under Subsection (a).
(c) The director of the office of court administration,
under the supervision of the chief justice, shall implement
procedures by which an arbitrator or arbitration services provider
can be removed from the published list in accordance with rules
adopted by the supreme court for the efficient administration of
justice.
SECTION 3. (a) For the purpose of this section, the date an
arbitration is commenced is the date an arbitrator is selected or
appointed.
(b) The changes in law made by this Act apply only to an
arbitration commenced on or after the effective date of this Act.
An arbitration commenced before the effective date of this Act is
governed by the law applicable to arbitrations immediately before
that date, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect January 1, 2006.