BILL NUMBER: SB 1707	CHAPTERED  07/12/02

	CHAPTER  176
	FILED WITH SECRETARY OF STATE  JULY 12, 2002
	APPROVED BY GOVERNOR  JULY 11, 2002
	PASSED THE ASSEMBLY  JUNE 27, 2002
	PASSED THE SENATE  MAY 23, 2002

INTRODUCED BY   Committee on Judiciary (Senators Escutia (Chair),
Kuehl, O'Connell, Peace, and Sher)

                        FEBRUARY 21, 2002

   An act to amend Section 1281.85 of the Code of Civil Procedure,
relating to arbitration.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1707, Committee on Judiciary.    Arbitration:  standards of
ethics.
   Existing law, beginning July 1, 2002, requires a person serving as
a neutral arbitrator pursuant to an arbitration agreement to comply
with the ethics standards for arbitrators adopted by the Judicial
Council.  Existing law also requires these standards to be consistent
with the standards established for arbitrators in the judicial
arbitration program, and authorizes these standards to expand the
general disclosure and disqualification requirements imposed by law
for contract arbitration.  Existing law further requires these
standards to address the disclosure of interests, relationships, or
affiliations that may constitute conflicts of interest, including
prior service as an arbitrator or other dispute resolution neutral
entity, disqualifications, acceptance of gifts, and establishment of
future professional relationships.
   This bill would specify that these provisions do not apply to an
arbitration conducted pursuant to the terms of a public or private
sector collective bargaining agreement.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1281.85 of the Code of Civil Procedure is
amended to read:
   1281.85.  (a) Beginning July 1, 2002, a person serving as a
neutral arbitrator pursuant to an arbitration agreement shall comply
with the ethics standards for arbitrators adopted by the Judicial
Council pursuant to this section.  The Judicial Council shall adopt
ethical standards for all neutral arbitrators effective July 1, 2002.
  These standards shall be consistent with the standards established
for arbitrators in the judicial arbitration program and may expand
but may not limit the disclosure and disqualification requirements
established by this chapter.  The standards shall address the
disclosure of interests, relationships, or affiliations that may
constitute conflicts of interest, including prior service as an
arbitrator or other dispute resolution neutral entity,
disqualifications, acceptance of gifts, and establishment of future
professional relationships.
   (b) Subdivision (a) does not apply to an arbitration conducted
pursuant to the terms of a public or private sector collective
bargaining agreement.