79R5424 MFC-F

By:  West, Royce                                                  S.B. No. 675


A BILL TO BE ENTITLED
AN ACT
relating to agreements that waive the right to demand a jury trial. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 30, Civil Practice and Remedies Code, is amended by adding Section 30.006 to read as follows: Sec. 30.006. WAIVER OF RIGHT TO DEMAND JURY TRIAL. (a) A provision waiving the right to demand a jury trial in a written agreement evidencing or relating to a consumer transaction in which an individual consumer acquires or seeks to acquire goods or services primarily for personal, household, or family use is not enforceable unless the waiver: (1) applies equally to all parties to the agreement; (2) is not unconscionable; and (3) contains the following statement in bold, underlined, capitalized, 16-point type: "BY ENTERING INTO THIS AGREEMENT YOU ARE WAIVING YOUR RIGHT TO DEMAND A JURY TRIAL. THE LAW DOES NOT REQUIRE THAT YOU WAIVE THIS RIGHT." (b) A party who asserts that an individual consumer has waived the right to demand a jury trial in a written agreement relating to a consumer transaction has the burden of proof to show that the waiver is enforceable under Subsection (a). (c) On motion of a party in a proceeding relating to a consumer transaction, the court shall conduct a hearing to determine the enforceability of a waiver provision under this section. SECTION 2. This Act applies only to a written agreement entered into on or after the effective date of this Act. A written agreement entered into before the effective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2005.