LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

April 12, 2011

TO:	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 in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend the Family Code to require a court to try a case relating to a contract containing an arbitration agreement relating to the dissolution of a marriage or the parent-child relationship 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:

LBB Staff:

JOB, KJG, JB