BILL NUMBER: AB 2915	CHAPTERED  09/29/02

	CHAPTER  1101
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2002
	PASSED THE ASSEMBLY  AUGUST 29, 2002
	PASSED THE SENATE  AUGUST 28, 2002
	AMENDED IN SENATE  AUGUST 26, 2002
	AMENDED IN SENATE  AUGUST 13, 2002
	AMENDED IN ASSEMBLY  MAY 14, 2002
	AMENDED IN ASSEMBLY  APRIL 30, 2002

INTRODUCED BY   Assembly Member Wayne

                        FEBRUARY 25, 2002

   An act to add Section 1284.3 to the Code of Civil Procedure,
relating to arbitration.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2915, Wayne.  Arbitration.
   Existing law regulates the conduct of arbitration proceedings,
providing for, among other things, the powers and duties of a neutral
arbitrator or arbitrators, the appointment of times and places for
hearings, the exchange of witness lists, and the right of
representation by counsel.
   This bill would prohibit a neutral arbitrator or private
arbitration company from administering any consumer arbitration that
requires a nonprevailing consumer who is a party to the arbitration
to pay the opposing party's costs or fees.  The bill would require a
private arbitration company to waive the fees and costs of
arbitration, exclusive of arbitrator fees, for an indigent consumer,
as defined.  The bill would also require a private arbitration
company to provide written notice to any consumer of the right to
obtain a fee waiver, as specified, and to keep specified information
concerning a consumer confidential, with certain exceptions.


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


  SECTION 1.  Section 1284.3 is added to the Code of Civil Procedure,
to read:
   1284.3.  (a) No neutral arbitrator or private arbitration company
shall administer a consumer arbitration under any agreement or rule
requiring that a consumer who is a party to the arbitration pay the
fees and costs incurred by an opposing party if the consumer does not
prevail in the arbitration, including, but not limited to, the fees
and costs of the arbitrator, provider organization, attorney, or
witnesses.
   (b) (1) All fees and costs charged to or assessed upon a consumer
party by a private arbitration company in a consumer arbitration,
exclusive of arbitrator fees, shall be waived for an indigent
consumer.  For the purposes of this section, "indigent consumer"
means a person having a gross monthly income that is less than 300
percent of the federal poverty guidelines.  Nothing in this section
shall affect the ability of a private arbitration company to shift
fees that would otherwise be charged or assessed upon a consumer
party to a nonconsumer party.
   (2) Prior to requesting or obtaining any fee, a private
arbitration company shall provide written notice of the right to
obtain a waiver of fees to a consumer or prospective consumer in a
manner calculated to bring the matter to the attention of a
reasonable consumer, including, but not limited to, prominently
placing a notice in its first written communication to the consumer
and in any invoice, bill, submission form, fee schedule, rules, or
code of procedure.
   (3) Any consumer requesting a waiver of fees or costs may
establish his or her eligibility by making a declaration under oath
on a form provided to the consumer by the private arbitration company
for signature stating his or her monthly income  and the number of
persons living in his or her household.  No private arbitration
company may require a consumer to provide any further statement or
evidence of indigence.
   (4) Any information obtained by a private arbitration company
about a consumer's identity, financial condition, income, wealth, or
fee waiver request shall be kept confidential and may not be
disclosed to any adverse party or any nonparty to the arbitration,
except a private arbitration company may not keep confidential the
number of waiver requests received or granted, or the total amount of
fees waived.
   (c) This section applies to all consumer arbitration agreements
subject to this article, and to all consumer arbitration proceedings
conducted in California.