Honorable Jim Jackson, Chair, House Committee on Judiciary & Civil Jurisprudence
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
SB1216 by Estes (relating to determination of the validity and enforceability of a contract containing an arbitration agreement in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 2nd House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend the Family Code to require a court to promptly try a case relating to a contract containing an arbitration agreement for the dissolution of a marriage or the parent-child relationship, and may order arbitration only if the court determines the contract is valid and enforceable against the party seeking to avoid arbitration. A determination that a contract is valid and enforceable would not affect the court’s authority to stay arbitration or refuse to compel arbitration. The bill would include certain exceptions to the sections.
The Office of Court Administration (OCA) reported that because the bill would not affect a court’s right to stay or refuse to compel arbitration there should not be an increase in court filings; therefore, no significant fiscal impact on the courts is anticipated.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.