Honorable Robert Duncan, Chair, Senate Committee on State Affairs
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.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would add Section 171.027 to Chapter 171 of the Civil Practice and Remedies Code to require a court to try a case relating to a contract containing an arbitration agreement promptly, 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 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.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council