79R1961 AJA-D

By:  West                                                         S.B. No. 505



A BILL TO BE ENTITLED

AN ACT

relating to registration of arbitrators and arbitration services 
providers with the secretary of state.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 7, Civil Practice and Remedies Code, is 
amended by adding Chapter 180 to read as follows:

CHAPTER 180.  REGISTRATION OF ARBITRATORS AND ARBITRATION

SERVICES PROVIDERS

SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 180.001.  DEFINITIONS.  In this chapter:                           
		(1)  "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.                                  
		(2)  "Arbitrator" means a neutral individual, 
including a member of a panel of neutral individuals, 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.
		(3)  "Consumer arbitration" means an arbitration that 
arises out of or relates to a transaction in which an individual 
acquires or seeks to acquire credit or the purchase or lease of 
goods or services primarily intended to be used for personal, 
family, or household purposes.
		(4)  "Employment arbitration" means an arbitration 
arising out of or relating to an employment relationship or 
prospective employment relationship other than a grievance or 
arbitration proceeding that is subject to a collective bargaining 
agreement.
	Sec. 180.002.  APPLICABILITY.  (a)  Except as provided by 
Subsection (b), this chapter applies only to a consumer or 
employment arbitration conducted in this state to which Chapter 171 
or the Federal Arbitration Act (9 U.S.C. Sections 1-16) applies.
	(b)  This chapter does not apply to an arbitration conducted 
or administered by a self-regulatory organization as defined by the 
Securities Exchange Act of 1934 (15 U.S.C. Section 78c), as 
amended, the Commodity Exchange Act (7 U.S.C. Section 1 et seq.), as 
amended, or regulations adopted under those acts.
	(c)  The requirements of this chapter supplement, in any 
arbitration held in this state, Chapter 171, the arbitration law of 
any other state, and the Federal Arbitration Act (9 U.S.C. Sections 
1-16), as amended.

[Sections 180.003-180.050 reserved for expansion]

SUBCHAPTER B.  REGISTRATION WITH SECRETARY OF STATE
	Sec. 180.051.  REGISTRATION REQUIREMENTS; PUBLIC 
INFORMATION.  (a)  Each arbitrator or arbitration services provider 
shall register annually with the office of the secretary of state in 
the format required by the secretary of state, providing the 
arbitrator or arbitration services provider's name, mailing 
address, and phone number.  The arbitrator or arbitration services 
provider shall submit a $10 fee with the initial registration 
submitted under this subsection.
	(b)  The secretary of state shall maintain an updated list of 
arbitrators and arbitration services providers and make the list 
available to the public.
	Sec. 180.052.  INELIGIBILITY TO CONDUCT OR ADMINISTER 
ARBITRATION.  An arbitrator or arbitration services provider who is 
not registered with the office of the secretary of state as required 
by Section 180.051 is ineligible to be appointed by a court to 
arbitrate or administer an arbitration under Section 171.041(b).
	SECTION 2.  (a)  For the purposes of this section, the date 
an arbitration is commenced is the date an arbitrator, as defined by 
Section 180.001, Civil Practice and Remedies Code, as added by this 
Act, is selected or appointed.
	(b)  This Act applies only to an arbitration commenced on or 
after January 1, 2006.  An arbitration commenced before January 1, 
2006, is governed by the law applicable to arbitrations immediately 
before the effective date of this Act, and that law is continued in 
effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.