BILL NUMBER: AB 1067	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jackson

                        FEBRUARY 23, 2001

   An act to add Sections 1281.85 and 1286.5 to the Code of Civil
Procedure, relating to arbitration.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1067, as introduced, Jackson.  Arbitration.
   Existing law provides for arbitration proceedings as a means of
alternative dispute resolution.
   This bill would require arbitrators to meet minimum qualifications
and comply with ethical standards established by the Legislature.
   Existing law provides grounds and conditions for the vacation of
arbitration awards.
   This bill would expand these grounds and conditions by requiring a
court to vacate an arbitration award and hold a de novo hearing on
the matter if it determines the award is the result of legal or
factual error by the arbitrator that has resulted in an injustice to
the party, the agreement or contract with the consumer party contains
a mandatory pre-dispute binding arbitration provision in a
standardized contract drafted by or on behalf of the nonconsumer
party, and the petition to vacate and hold a trial de novo is filed
by the consumer party.  This bill would define, for the purposes of
this section, a consumer party.  This bill would not allow the
provisions of this section to be waived by contract or otherwise.
This bill would require an arbitrator to include in the award a
written explanation of the basis for the award, including findings of
fact and conclusions of law.  This bill would not apply to
arbitration proceedings conducted under a collective bargaining
agreement between employers and employees or between their respective
representatives.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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


  SECTION 1.  Section 1281.85 is added to the Code of Civil
Procedure, to read:
   1281.85.  Arbitrators shall meet minimum qualification standards
and comply with ethical standards established by the Legislature.
  SEC. 2.  Section 1286.5 is added to the Code of Civil Procedure, to
read:
   1286.5.  (a) In addition to any remedies and rights available
under Sections 1286.2 and 1286.4, a court shall vacate an arbitration
award and hold a de novo hearing on the matter if it determines all
of the following exist:
   (1) The award is the result of legal or factual error by the
arbitrator that has resulted in an injustice to the party.
   (2) The agreement or contract with the consumer party contains a
mandatory pre-dispute binding arbitration provision in a standardized
contract drafted by or on behalf of the nonconsumer party.
   (3) The petition to vacate and hold a trial de novo is filed by
the consumer party.
   (b) For purposes of this section, a "consumer party" is any of the
following:
   (1) An individual who seeks or acquires by purchase or lease, any
goods or services, including financial services, as defined in
Section 1761 of the Civil Code, primarily for personal, family, or
household purposes.
   (2) An individual who is an enrollee or subscriber in a health
care service plan within the meaning of Section 1345 of the Health
and Safety Code.
   (3) An employee in a dispute arising out of or relating to the
employee's employment.
   (c) The provisions of this section may not be waived by contract
or otherwise.
   (d) For purposes of this section, an arbitrator shall include with
his or her award a written explanation of the basis for the award,
including findings of fact and conclusions of law.
   (e) This section does not apply to arbitration proceedings
conducted under a collective bargaining agreement between employers
and employees or between their respective representatives.