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The Committee on Commerce (Justice) recommended the following

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amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1.  Section 682.501, Florida Statutes, is created to

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read:

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     682.501 Florida Consumer Arbitration Act.--Sections

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682.501-682.521 may be cited as the "Florida Consumer Arbitration

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Act."

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     Section 2.  Section 682.502, Florida Statutes, is created to

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read:

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     682.502 Definitions.--As used in ss. 682.501-682.521, the

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term:

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     (1) "Arbitration organization" means an association,

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agency, board, commission, or other entity that is neutral and

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initiates, sponsors, or administers an arbitration proceeding or

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is involved in the appointment of an arbitrator.

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     (2) "Arbitrator" means a neutral individual appointed to

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render an award, alone or with others, in a controversy that is

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subject to an agreement to arbitrate.

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     (3) "Consumer" means a party to an arbitration agreement

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who, in the context of that arbitration agreement, is an not a

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business, but an individual who seeks or acquires, including by

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lease, any goods or services primarily for personal, family, or

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household purposes, including, but not limited to, transactions

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involving banking, credit cards, home loans, and other financial

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services, healthcare services, brokerage services, home

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construction and improvements, insurance, communications,

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purchases or leases of motor vehicles and other personal

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property, and purchases or leases of real property. This

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definition may not be construed to restrict the ability of

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consumers to pursue arbitration on a group basis or render this

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definition inapplicable to arbitrations involving multiple

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consumer parties.

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     (4) "Consumer arbitration agreement" means a standardized

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contract between a party who is a consumer and a party who is

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not a consumer, written by the party who is not a consumer,

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which includes a provision requiring that disputes arising after

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the contract is signed be submitted to binding arbitration.

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     (5) "Court" means any court of competent jurisdiction of

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this state. The making of an agreement or provision for

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arbitration subject to this act and providing for arbitration in

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this state shall, whether made within or outside this state,

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confer jurisdiction on the court to enforce the agreement or

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provision under this act, refuse to enforce the agreement, enter

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judgment on an award duly rendered in an arbitration thereunder,

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or vacate, modify, or correct an award rendered thereunder for

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such cause and in the manner provided in this act.

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     (6) "Evident partiality" means that a reasonable person

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would conclude that the arbitrator was partial to one party to

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the arbitration, or it may be reasonably inferred that the

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arbitrator would tend to favor one of the parties to a dispute.

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This definition does not require the party alleging such

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partiality to prove that the arbitrator was actually prejudiced.

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     (7) "Financial interest" means holding a position in a

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business as officer, director, trustee, or partner, holding any

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position in management, or owning more than 5 percent of the

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total interest in a business.

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     (8) "Knowledge" means actual knowledge.

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     (9) "Person" means an individual, corporation, business

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trust, estate, trust, partnership, public corporation, limited

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liability company, association, joint venture, or a government,

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governmental subdivision, agency, or instrumentality, or any

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other legal or commercial entity.

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     (10) "Record" means information inscribed on a tangible

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medium or stored in an electronic or other medium and

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retrievable in perceivable form.

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     Section 3.  Section 682.503, Florida Statutes, is created to

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read:

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     682.503 Application in general.--

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     (1) Except as otherwise provided in ss. 682.501-682.521,

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the provisions of this act apply to consumer arbitration

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agreements. Notwithstanding any provision of ss. 682.01-682.022

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to the contrary, the provisions of ss. 682.01-682.022 do not

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apply to any arbitration agreement to which ss. 682.501-682.521

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apply.

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     (2) Every provision in an insurance policy requiring

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arbitration or restricting a party or beneficiary from enforcing

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any right under the policy by usual legal proceedings or

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limiting the time to do so is void and unenforceable.

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     (3) A provision for mandatory binding arbitration within

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any arbitration agreement is void and unenforceable except to

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the extent federal law provides for its enforceability.

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     Section 4.  Section 682.504, Florida Statutes, is created to

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read:

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     682.504 Effect of agreement to arbitrate; nonwaivable

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provisions.--

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     (1) Except as otherwise provided in subsections (2) and

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(3), a party to an agreement to arbitrate or to an arbitration

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proceeding may waive, or the parties may vary the effect of, the

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requirements of ss. 682.501-682.521 to the extent permitted by

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law.

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     (2) Before a controversy arises that is subject to an

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agreement to arbitrate, a party to the agreement may not:

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     (a) Waive or agree to vary the effect of the requirements

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of s. 682.503, s. 682.506, , s. 682.508, s. 682.512(1) s.

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682.514, or s. 682.518; or

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     (b) Waive the right under s. 682.510 of a party to an

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agreement to arbitrate to be represented by a lawyer at any

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proceeding or hearing under ss. 682.501-682.521. However, an

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employer and a labor organization may waive the right to

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representation by a lawyer in a labor arbitration.

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     (3) A party to an agreement to arbitrate or an arbitration

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proceeding may not waive, or the parties may not vary the effect

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of, the requirements of this section, s. 682.503(1) or (3), s.

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682.505, s. 682.513, s. 682.516, , s. 682.515, , or s. 682.519,

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except that, if there exists an agreement to arbitrate disputes

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over insurance obligations by two or more people engaged in the

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business of insurance, including, but not limited to,

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reinsurers, self-insurers, or reinsurance intermediaries, or any

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combination thereof, the parties to the agreement may waive the

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right to vacate under s. 682.515.

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     (4) A party to an agreement to arbitrate or to an

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arbitration proceeding may not narrow the grounds for vacating

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an award set forth in s. 682.515, except in a subsequent

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agreement for consideration made after the controversy that is

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at issue in the arbitration has arisen.

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     (5) A party to an agreement that submits to having or

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agrees to have a court decide an issue subject to arbitration has

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waived his or her right to arbitrate. This includes, but is not

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limited to, initiating a suit or responding to a suit in any

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manner other than by a motion to compel arbitration.

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     Section 5.  Section 682.505, Florida Statutes, is created to

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read:

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     682.505 Proceedings to compel and to stay arbitration.-- A

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party to an agreement or provision for arbitration which is

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subject to this act who claims the neglect or refusal of another

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party to comply, or who claims that the agreement or provision

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does not apply, may make application to the court for an order

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determining applicability of the agreement or provision to the

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case or controversy or the application of this act. The court

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shall summarily hear and determine the issue. If the court is

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satisfied that no substantial issue exists as to the making of

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the agreement or provision, that an arbitratable issue exists,

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that the arbitration agreement is not void as against public

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policy, or that the right to arbitration has not been waived, it

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shall grant the application.

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     Section 6.  Section 682.506, Florida Statutes, is created to

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read:

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     682.506 Notice and initiation of arbitration.--

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     (1) A person gives notice to another party by delivering

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notice to the party's place of residence by certified or

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registered mail, return receipt requested and obtained, or by

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in-hand delivery, with notice of service of process.     

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     (2) Unless initiated by a consumer, a person or entity

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initiates an arbitration proceeding by giving notice in a record

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to the other parties to the agreement to arbitrate by certified

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or registered mail, return receipt requested and obtained, or by

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service as authorized for the commencement of a civil action.

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The notice must describe the nature of the controversy and the

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remedy sought.

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     Section 7.  Section 682.507, Florida Statutes, is created to

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read:

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     682.507 Appointment of arbitrators by court.--

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     (1) The parties shall select the arbitrator or arbitrators

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after the arbitration has been initiated. If the parties are

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unable to come to an agreement, the court shall appoint one or

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more arbitrators or an umpire deemed by both parties to be

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acceptable.

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     (2) An individual may not serve as an arbitrator if the

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individual has, at the time of arbitration or at some time in

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the past, a direct and material interest in the outcome of the

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arbitration proceeding, an existing relationship with a party,

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or any other interest more than a de minimis interest which

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could be affected by the proceeding.

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     (3) An individual may not serve as an arbitrator if the

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arbitration service through which the individual has been

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contracted has an interest, direct or indirect, including a

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financial interest in the outcome of the arbitration.

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     Section 8.  Section 682.508, Florida Statutes, is created to

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read:

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     682.508 Disclosure by arbitrator.--

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     (1) Before accepting appointment, an individual or

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arbitration organization who is requested to serve as an

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arbitrator shall disclose to all parties to the agreement to

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arbitrate, the arbitration proceeding, and to any other

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arbitrators involved in the proceedings any facts that might

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affect, or appear to affect, the impartiality of the arbitrator

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in the arbitration proceeding, including:

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     (a) Any personal or financial interest in the outcome of

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the arbitration proceeding.

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     (b) Any existing or past relationship with any of the

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parties to the agreement to arbitrate or the arbitration

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proceeding, their counsel or representatives, a witness, or

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other arbitrators, including the number of past arbitrations

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conducted involving either party, the outcomes of those past

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arbitrations, and the dates of decision.

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     (2) The parties must be informed that information

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concerning the arbitration service provider's past cases is

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available in a hard copy or on the provider's website.

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     (3) An arbitrator has a continuing obligation to disclose

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to all parties to the agreement to arbitrate and the arbitration

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proceeding and to any other arbitrators involved in the

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proceeding any facts that the arbitrator learns after accepting

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appointment which might affect, or appear to affect, the

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impartiality of the arbitrator, including, but not limited to,

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the information or facts required to be disclosed under

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subsection (1).

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     (4) If an arbitrator fails to comply with subsection (1)

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or subsection (3), or if an arbitrator reveals facts that could

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affect the impartiality of the arbitrator, the party may make a

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motion to the court for an expedited order to remove the

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arbitrator and appoint a successor.

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     (5) If circumstances do not exist which would affect the

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impartiality of any designated arbitrator, such arbitrator shall

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sign an oath provided by the court affirming the absence of such

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present or preexisting ties.

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     Section 9.  Section 682.509, Florida Statutes, is created to

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read:

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     682.509 Majority action by arbitrators.--The powers of the

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arbitrators shall be exercised by a majority of their number, but

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all of them shall conduct the hearing under s. 682.510 and

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682.511.

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     Section 10.  Section 682.510, Florida Statutes, is created

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to read:

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     682.510 Arbitration process.--

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     (1) An arbitrator must conduct an arbitration in a manner

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that is fundamentally fair. "Fundamental fairness" includes

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notice, an opportunity to be heard, an opportunity to present

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relevant and material evidence, an opportunity for argument

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before the decisionmakers, and an unbiased decisionmaker. A

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party has the right to be represented by an attorney at any

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arbitration proceeding or hearing subject to this act. A waiver

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made before the proceeding or hearing has no effect. Any

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consumer who is a party to an arbitration agreement must be

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provided with information concerning institutions which might

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offer assistance in an arbitration proceeding, such as bar

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associations, legal service associations, civil rights

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organizations, and trade unions.

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     (2) After the court has made determinations under s.

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682.505, the authority conferred upon the arbitrator includes

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the power to hold conferences with the parties to the

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arbitration proceeding before the hearing and, among other

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matters, determine the admissibility, relevance, materiality,

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and weight of any evidence. The scope of discovery and the

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procedure for any hearings and trials shall be governed by Rule

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7.020, Florida Small Claims Rules. The parties to an arbitration

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proceeding may, after the arbitration has been instituted,

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stipulate in writing to apply arbitration, discovery, or

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evidentiary rules that vary from this part.

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     (3) Unless after a dispute arises both parties settle the

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dispute or in cases of extreme hardship, both parties or their

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attorneys must be physically present at all hearings and

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conferences with the arbitrator.

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     Section 11.  Section 682.511, Florida Statutes, is created

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to read:

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     682.511 Hearing.--:

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     (1)(a) The arbitrator shall give notice as to the a time

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and place for the hearing not less than 30 days before the date

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of the initial hearing, and not less than 10 days before the

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date of any subsequent hearings. Notice shall include a

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statement that a party is entitled to representation. Appearance

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at the hearing does not waive a party's right to object to the

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proceeding on the basis of insufficient notice or lack of

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notice. The hearing shall be conducted by all of the arbitrators

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and an umpire, if applicable. If, during the course of the

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hearing, an arbitrator ceases to act for any reason, a

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replacement arbitrator must be appointed in accordance with s.

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682.507 for the purpose of continuing the proceeding and

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resolving the controversy. The arbitrators may adjourn the

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hearing from time to time upon their own motion and shall do so

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upon the request of any party to the arbitration for good cause

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shown. An umpire authorized to hear and decide the cause upon

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failure of the arbitrators to agree upon an award shall, in the

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course of his or her jurisdiction, have like powers and be

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subject to like limitations thereon.

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     (2) The parties are entitled to be heard, present evidence

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material to the controversy, and cross-examine witnesses

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appearing at the hearing, unless otherwise stipulated by the

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parties after the cause of action has arisen and the arbitration

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proceeding has been instituted.

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     Section 12.  Section 682.512, Florida Statutes, is created

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to read:

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     682.512 Witnesses, subpoenas, depositions, discovery.--

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     (1) An arbitrator, or an umpire authorized to hear and

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decide the cause upon failure of the arbitrators to agree upon

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an award, in the course of his or her jurisdiction, may issue

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subpoenas for the attendance of witnesses and for the production

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of books, records, documents, and other evidence, and shall have

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the power to administer oaths. Subpoenas so issued shall be

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served and, upon application to the court by a party to the

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arbitration, the arbitrators, or the umpire, enforced in the

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manner provided by law for the service and enforcement of

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subpoenas in a civil action. The issuance of a subpoena must be

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included in the record of the arbitration.

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     (2) The arbitrator may order a party to the arbitration

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proceeding to comply with the arbitrator's discovery-related

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orders, issue subpoenas for the attendance of a witness and for

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the production of records and other evidence at a discovery

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proceeding, and take action against a noncomplying party to the

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extent a court could if the controversy were the subject of a

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civil action in this state.

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     (3) An arbitrator may issue a protective order to prevent

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the disclosure of privileged information, confidential

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information, and trade secrets only under circumstances in which

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a court could issue a protective order, and only if the

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arbitrator makes a finding on the record that any public

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interest in disclosure of information relevant to the protection

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of public health and physical or economic safety is outweighed

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by a specific and substantial harm that would result from

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disclosure.

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     (4) All provisions of law compelling a person under

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subpoena to testify apply.

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     (5) All witnesses must be under oath during testimony,

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including testimony given during a deposition.

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     (6) Fees for attendance as a witness shall be the same as

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for a witness in the circuit court.

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     (7) All materials produced, generated, considered, or in

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any way referenced as part of an arbitration proceeding shall be

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maintained by the arbitration company and accessible by any

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consumer seeking information as to the arbitration company for 10

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years after the arbitration proceeding has been fully and finally

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concluded, including the expiration of all appeals, if any.

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     Section 13.  Section 682.513, Florida Statutes, is created

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to read:

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     682.513 Award, Opinion, and Judgment.--

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     (1) An arbitrator or umpires award or opinion shall be in

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writing and contain a summary and findings of the issues raised

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and the damages awarded, if any. The award or opinion shall be

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issued within a reasonable time after the final hearing but not

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more than 60 days after the date of the final hearing, unless an

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extension is granted by the court upon a demonstration of good

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cause. The parties may, by written agreement, extend the

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deadline. The award shall be signed by the arbitrators joining

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in the award or by the umpire in the course of his or her

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jurisdiction. A copy of the award shall be delivered to each

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party to the arbitration personally or by registered or

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certified mail.

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     (2) The written award or opinion, and the agreement or

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provision for arbitration, shall be entered into the court record

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by filing with the clerk of the court having jurisdiction over

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the arbitration at such time as entry of judgment is sought. If a

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court file has not been previously opened, the party seeking

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entry of judgment shall pay the applicable filing fee and file

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the documents specified in this section before a judgment is

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entered.

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     (3) After a party to an arbitration proceeding receives

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notice of the filing of the arbitration opinion as required by

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subsection (2), the court shall confirm the opinion or award

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unless the court modifies or vacates an award as provided in ss.

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682.515 or 682.516.

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     (4) Upon the granting of an order directing a rehearing or

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confirming, vacating, modifying, or correcting an award, the

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judgment or decree shall be entered in conformity therewith and

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be enforced as any other judgment or decree.

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     (5) The judgment shall be recorded, docketed, and enforced

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as any other judgment in a civil action.

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     Section 14.  Section 682.514, Florida Statutes, is created

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to read:

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     682.514 Remedies; fees and expenses of arbitration.--

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     (1) An arbitrator may award any relief or damages allowed

354

by law and otherwise awardable under the legal standards that

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would apply to the same claim if brought in a court of law.

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     (2) Unless otherwise agreed by the parties to the

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arbitration after the dispute has arisen and the arbitration

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proceeding instituted, the circuit court shall establish the

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amount of compensation, if any, that each arbitrator or umpire

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shall receive for services rendered in each case. Such expenses

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and fees, together with other expenses incurred in the conduct

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of the arbitration, shall be reasonable and paid as provided in

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the award.

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     (3) An arbitrator shall award reasonable attorney's fees

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and other reasonable expenses of arbitration to the extent

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authorized by law in a civil action involving the same claim.

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     (4) Upon a showing by the consumer, evidenced by an

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affidavit including a statement of financial resources possessed

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by the consumer, that the consumer is unable to pay the costs of

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arbitration, the court may order such costs to be shared between

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the two parties in an equitable manner. A nonconsumer may be

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ordered to pay the entire cost of an arbitration if continuing

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the arbitration proceeding would create a financial hardship due

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to a consumer's lack of financial resources. This subsection

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does not apply to any voluntary arbitration proceeding begun by

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joint stipulation of the parties after a lawsuit has been

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instituted or conducted pursuant to s. 44.104.

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     Section 15.  Section 682.515, Florida Statutes, is created

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to read:

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     682.515 Vacating an award.--

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     (1) Upon application of a party, the court shall vacate an

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award if:

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     (a) The award was procured by corruption, fraud, or other

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undue or unjust means.

385

     (b) There exists evident partiality by an arbitrator or

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umpire, corruption in or by any of the arbitrators or umpire, or

387

misconduct prejudicing the rights of any party. Partiality may

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be demonstrated by the appearance of bias if bias is apparent

389

based upon established facts, or by facts disclosed pursuant to

390

s. 682.508. Such facts are not limited to those facts disclosed

391

by the arbitrator or arising during the course of the

392

arbitration. The mere nondisclosure of facts that demonstrate

393

potential arbitrator bias creates a presumption of partiality.

394

     (c) The arbitrator or umpire, in the course of his or her

395

jurisdiction, exceeded his or her powers.

396

     (d) The arbitrator or umpire in the course of his or her

397

jurisdiction refused to postpone the hearing upon sufficient

398

cause shown for such postponement, refused to hear evidence

399

material to the controversy, or otherwise so conducted the

400

hearing contrary to the provisions of this act.

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     (e) No agreement or provision for arbitration subject to

402

this act exists.

403

     (f) The arbitration was conducted without proper notice of

404

the initiation of any stage of arbitration as required by this

405

act.

406

     (g) The arbitration award is inconsistent with applicable

407

law, violates public policy, is arbitrary or capricious or lacks

408

a rational basis, or is not supported by substantial evidence as

409

reflected in the record.

410

     (2) An application under this section shall be made within

411

90 days after date of delivery of a copy of the award to the

412

applicant, except that, if predicated upon corruption, fraud, or

413

other undue means, it shall be made within 90 days after such

414

grounds become known or should have become known. A court may

415

extend any time limitation in this subsection upon a showing of

416

good cause.

417

     (3) In vacating the award on grounds other than those

418

stated in paragraph (1)(e), the court may order a rehearing

419

before new arbitrators chosen as provided in the agreement or

420

provision for arbitration or by the court in accordance with s.

421

682.507, or, if the award is vacated on grounds other than those

422

provided in paragraph (1)(a) or paragraph (1)(e), the court may

423

order a rehearing before the arbitrator or umpire issuing the

424

award or his or her successors appointed in accordance with s.

425

682.507.

426

     Section 16.  Section 682.516, Florida Statutes, is created

427

to read:

428

     682.516 Modification or correction of award.--

429

     (1) Upon application made within 90 days after the date of

430

delivery of a copy of the award to the applicant, the court

431

shall modify or correct the award if:

432

     (a) There is an evident miscalculation of figures or an

433

evident mistake in the description of any person, thing, or

434

property referenced in the award.

435

     (b) The arbitrator or umpire has made an award upon a

436

matter not submitted to him or her, and the award may be

437

corrected without affecting the merits of the decision upon the

438

issues actually submitted.

439

     (c) The award is imperfect as a matter of form, not

440

affecting the merits of the controversy.

441

     (2) If the application is granted, the court shall modify

442

and correct the award so as to effect its intent and shall

443

confirm the award as modified and corrected. Otherwise, the

444

court shall confirm the award as made.

445

     (3) An application to modify or correct an award may be

446

joined in the alternative with an application to vacate the

447

award.

448

     (4) The filing of a motion to modify or correct an award

449

shall toll the time for taking any other action under this act

450

as to the award or opinion.

451

     Section 17.  Section 682.517, Florida Statutes, is created

452

to read:

453

     682.517 Venue.--Any application under this act may be made

454

to the court of the county in which the other party to the

455

agreement or provision for arbitration resides or has a place of

456

business, or, if she or he has no residence or place of business

457

in this state, to the court of any county. All applications under

458

this act subsequent to an initial application shall be made to

459

the court hearing the initial application unless the court orders

460

otherwise.

461

     Section 18.  Section 682.518, Florida Statutes, is created

462

to read:

463

     682.518 Appeals.--

464

     (1) A final appeal, or an interlocutory appeal if

465

appropriate, may be taken from a circuit or county court to the

466

appropriate court of appeals as a result of:

467

     (a) An order denying or granting an application to compel

468

arbitration made under s. 682.505, pursuant to Rule 9.130,

469

Florida Rules of Appellate Procedure;

470

     (b) An order denying or granting an application to stay

471

arbitration made under s. 682.505 pursuant to Rule 9.130,

472

Florida Rules of Appellate Procedure;

473

     (c) A decision regarding the impartiality or lack of

474

conflict on the part of the arbitrator;

475

     (d) An evidentiary ruling, except as provided in paragraph

476

(2)(a), after final award or decision;

477

     (e) An order confirming or denying confirmation of an

478

award;

479

     (f) An order modifying or correcting an award;

480

     (g) An order on a motion to vacate an award; or

481

     (h) A judgment or decree entered pursuant to ss. 682.501-

482

682.521.

483

     (2) The following may be reviewed by writ of certiorari:

484

     (a) A ruling concerning evidentiary privileges or

485

confidentiality rights of the parties; or

486

     (b) The granting of a protective order preventing the

487

disclosure of privileged information, confidential information,

488

or trade secrets under s. 682.512.

489

     (3) The appeal or petition for certiorari shall be taken

490

in the manner and to the same extent as from orders or judgments

491

in a civil action.

492

     Section 19.  Section 682.519, Florida Statutes, is created

493

to read:

494

     682.519 Relationship to Electronic Signatures in Global and

495

National Commerce Act.--Sections 682.501-682.521 modify, limit,

496

and supersede the federal Electronic Signatures in Global and

497

National Commerce Act, 15 U.S.C. s. 7001, et. seq., but do not

498

modify, limit, or supersede s. 101(c) of that act or authorize

499

electronic delivery of any of the notices described in s. 103(b)

500

of that act.

501

     Section 20.  Section 682.520, Florida Statutes, is created

502

to read:

503

     682.520 Regulation of arbitration service providers.--

504

     (1) Any arbitration organization that administers or is

505

otherwise involved in 10 or more consumer arbitrations per year

506

shall collect, publish at least quarterly, and make available to

507

the public in a searchable, sortable, and downloadable computer

508

database which permits searches using multiple search terms in

509

the same search, all of the information in paragraphs (a)-(i)

510

regarding each consumer arbitration occurring within the

511

immediately preceding 5 years. Such information shall be

512

prominently displayed, accessible, and easily comprehensible to

513

an ordinary user who has ordinary knowledge of computer

514

databases, at the Internet website of the arbitration

515

organization, and on paper upon request:

516

     (a) The name of any corporation or other business entity

517

that is a party to the arbitration.

518

     (b) The type and subject matter of the transaction giving

519

rise to the dispute involved, including, but not limited to,

520

goods, banking, insurance, health care, debt collection,

521

employment, and, if the dispute involves employment, the amount

522

of the employee's annual wage divided into the following ranges:

523

     1. Less than $100,000.

524

     2. From $100,000 to $250,000, inclusive.

525

     3. More than $250,000.

526

     (c) The name of the prevailing party.

527

     (d) The number of occasions, if any, that a corporation or

528

business entity that is a party to an arbitration has previously

529

been a party in an arbitration or mediation administered by the

530

arbitration organization.

531

     (e) Whether or not the consumer in each prior arbitration

532

was represented by an attorney and, if so, the identifying

533

information for that attorney, including the attorney's name,

534

law firm affiliation, business telephone number, and the address

535

of the attorney's law firm.

536

     (f) The date the arbitration organization received the

537

demand for arbitration, the date the arbitrator was appointed,

538

and the date of disposition by the arbitrator or arbitration

539

organization.

540

     (g) The type of disposition of the dispute, if known,

541

including withdrawal, abandonment, settlement, award after

542

hearing, award without hearing, default, or dismissal without

543

hearing.

544

     (h) The amount of the claim, the amount of the award, and

545

any other relief granted.

546

     (i) The name of the arbitrator, his or her fee for the

547

case, and the percentage of the arbitrator's fee allocated to

548

each party.

549

     (2) For information provided by the arbitration

550

organization in a computer-searchable format at the company's

551

Internet website and which may be downloaded without any fee,

552

the company may charge the actual cost of copying to any person

553

requesting the information on paper.

554

     (3) All fees and costs charged to or assessed in the state

555

against a consumer by an arbitration organization in a consumer

556

arbitration shall be waived for any person having a gross

557

monthly income that is less than 500 percent of the poverty line

558

as defined in 42 U.S.C. s. 9902(2).

559

     (4) Before requesting or obtaining any fee, an arbitration

560

organization shall provide written notice of the right to obtain

561

a waiver of fees in a manner calculated to bring the matter to

562

the attention of a reasonable consumer, including, but not

563

limited to, prominently placing a notice in its first written

564

communication to a consumer and in any invoice, bill, submission

565

form, fee schedule, rules, or code of procedure.

566

     (5) Any person requesting a waiver of fees or costs may

567

establish eligibility by making a declaration under oath on a

568

form provided by the arbitration organization indicating the

569

person's monthly income and the number of persons living in the

570

household. An arbitration organization may not require a

571

consumer to provide any further statement or evidence of

572

indigence. The form and the information contained therein is

573

confidential and may not be disclosed to any adverse party or

574

any nonparty to the arbitration.

575

     (6) An arbitration organization may not keep confidential

576

the number of waiver requests received or granted, or the total

577

amount of fees waived, and must disclose all fees charged.

578

     (7) An arbitrator or arbitration organization may not

579

administer an arbitration under any agreement or rule requiring

580

that a consumer who is a party to the arbitration pay the fees

581

and costs incurred by any opposing party if the consumer does

582

not prevail in the arbitration, including, but not limited to,

583

the fees and costs of the arbitrator, provider organization,

584

attorney, or witnesses.

585

     (8) An arbitration organization may not administer a

586

consumer arbitration involving any consumer who resides in this

587

state, or provide any other services related to such a consumer

588

arbitration, if:

589

     (a) The arbitration organization has, or within the

590

preceding year has had, a financial interest in any party or

591

attorney for a party involved in the arbitration; or

592

     (b) Any party or attorney for a party in the arbitration

593

has, or within the preceding year has had, any type of financial

594

interest in the arbitration organization.

595

     (9) Any affected person or entity, including the Office of

596

the Attorney General, may request a court to enjoin an

597

arbitration organization from violating the provisions of this

598

section and order such restitution as appropriate. The

599

arbitration organization is liable for such person's or entity's

600

reasonable attorney's fees and costs if the person or entity

601

prevails.

602

     Section 21.  Section 682.521, Florida Statutes, is created

603

to read:

604

     682.521 Disclosure of arbitration costs.--

605

     (1) A party drafting an arbitration agreement shall

606

clearly and conspicuously disclose in the arbitration agreement

607

the following:

608

     (a) The filing fee.

609

     (b) The average daily cost for an arbitrator and hearing

610

room if the consumer elects to appear in person.

611

     (c) Other charges that the arbitrator or arbitration

612

service provider will assess in conjunction with an arbitration

613

when the consumer appears in person.

614

     (d) The proportion of these costs which each party bears

615

if the consumer prevails or if the consumer does not prevail.

616

     (2) Failure to provide disclosures pursuant to subsection

617

(1) constitutes a deceptive act pursuant to the Florida

618

Deceptive and Unfair Trade Practices Act. Further, the

619

information provided in the disclosure may be considered in a

620

determination of whether an arbitration agreement is

621

unconscionable or is otherwise not enforceable under applicable

622

law.

623

     (3) Any person or entity, including the Office of the

624

Attorney General, may request a court to enjoin the drafting

625

party from violating the provisions of this section as to

626

agreements into which it enters in the future. The drafting party

627

is liable to the person or entity bringing such an action for

628

that person or entity's reasonable attorney's fees and costs if

629

the court issues an injunction or if, after the action is

630

commenced, the drafting party voluntarily complies with the

631

Florida Deceptive and Unfair Trade Practices Act.

632

     Section 22.  This act shall take effect July 1, 2008.

633

634

================ T I T L E  A M E N D M E N T ================

635

And the title is amended as follows:

636

     Delete everything before the enacting clause

637

and insert:

638

A bill to be entitled

639

An act relating to arbitration; creating s. 682.501, F.S.;

640

providing a short title; creating s. 682.502, F.S.;

641

providing definitions; creating s. 682.503, F.S.;

642

providing for applicability of the act; providing that the

643

Florida Consumer Arbitration Act does not apply to certain

644

insurance policies; providing that mandatory binding

645

arbitration is void and unenforceable except as otherwise

646

provided by federal law; creating s. 682.504, F.S.;

647

providing for the effect of an arbitration agreement;

648

prohibiting the waiver of certain rights and requirements;

649

providing an exception to provisions prohibiting the

650

waiver of certain rights; providing that certain actions

651

constitute a waiver of the right to arbitrate; creating s.

652

682.505, F.S.; authorizing parties to agree to arbitration

653

of any controversy; providing for application to written

654

interlocal agreements; providing that the act does not

655

apply to certain agreements; creating s. 682.506, F.S.;

656

authorizing a party to comply with arbitration; providing

657

for a stay in arbitration proceedings; providing an order

658

of arbitration may not be refused under certain

659

circumstances; creating s. 682.507, F.S.; specifying

660

actions constituting notice; creating s. 682.508, F.S.;

661

providing procedures for initiating arbitration; creating

662

s. 682.509, F.S.; requiring that the court appoint

663

arbitrators if the parties do not agree on the selection

664

thereof; prohibiting certain persons from serving as an

665

arbitrator; creating s. 682.511, F.S.; requiring that an

666

arbitrator disclose any facts which may affect the

667

impartiality of the proceeding; providing grounds for

668

removal of an arbitrator; authorizing the court to order

669

the removal of the arbitrator and appoint a successor;

670

providing that failure to disclose an interest in the

671

outcome of a proceeding or to disclose a relationship with

672

a party constitutes evidence of partiality; creating s.

673

682.512, F.S.; providing for the consolidation of separate

674

arbitration proceedings; authorizing the court to

675

consolidate certain claims and allow certain other claims

676

to be resolved separately; creating s. 682.513, F.S.;

677

providing that the powers of arbitrators is exercised by

678

the majority of their number; creating s. 682.514, F.S.;

679

providing procedures for an arbitration proceeding;

680

requiring that all parties be physically present;

681

providing exceptions; providing for a summary disposition

682

of a claim or particular issue under certain

683

circumstances; creating s. 682.515, F.S.; providing

684

requirements for conducting an arbitration hearing;

685

creating s. 682.516, F.S.; providing that a party has a

686

right to be represented by an attorney at an arbitration

687

proceeding; requiring that the parties receive information

688

concerning available assistance; creating s. 682.517,

689

F.S.; authorizing an arbitrator to issue subpoenas for the

690

attendance of witnesses and production of documents and to

691

permit depositions; requiring that a subpoena be included

692

in the record of the arbitration; providing for

693

dispositions to be conducted under the Florida Rules of

694

Civil Procedure; providing for additional discovery, the

695

issuance of subpoenas, and other orders; authorizing an

696

arbitrator to issue a protective order under limited

697

circumstances; providing for enforcement of a subpoena or

698

order by a court; requiring that witnesses testify under

699

oath; providing for witness fees; requiring the

700

arbitration company to maintain all materials pertaining

701

to an arbitration proceeding for a specified period;

702

creating s. 682.518, F.S.; providing for judicial

703

enforcement of a pre-award ruling; creating s. 682.519,

704

F.S.; providing certain requirements for issuing an

705

arbitration award; requiring that the award contain

706

findings and damages, or other relief; requiring that the

707

award and written opinion be entered into the court of

708

record; creating s. 682.520, F.S.; authorizing the

709

arbitrators or umpire to modify or correct an arbitration

710

award; creating s. 682.521, F.S.; authorizing an

711

arbitrator to award punitive damages; requiring the

712

circuit court to establish the amount of compensation for

713

arbitrators and umpires; specifying limitations on

714

expenses and fees; authorizing an arbitrator to award

715

attorney's fees and other expenses of arbitration;

716

authorizing the court to order that the costs of

717

arbitration be shared among the parties; requiring an

718

arbitrator to specify the basis in fact and in law

719

authorizing an award for punitive damages; creating s.

720

682.522, F.S.; requiring the court to confirm an award;

721

creating s. 682.523, F.S.; providing circumstances under

722

which a court may vacate an award; authorizing the parties

723

to an arbitration to contract for judicial review of

724

errors of law in the award; providing processes by which a

725

court may vacate an award; authorizing the court to

726

conduct a rehearing for the vacating of an award under

727

certain circumstances; creating s. 682.524, F.S.;

728

authorizing the court to modify or correct an award;

729

requiring that a consumer seek to modify or vacate an

730

award issued under a consumer arbitration agreement within

731

a specified period; creating s. 682.525, F.S; providing

732

for the recording and enforcement of an award; creating s.

733

682.526, F.S.; providing requirements for the court clerk

734

to follow when preparing the judgment roll; creating s.

735

682.527, F.S.; providing requirements for an application  

736

to the court with regard to arbitration; creating s.

737

682.528, F.S.; defining the term "court"; providing for

738

jurisdiction; creating s. 682.529, F.S.; providing for

739

venue; creating s. 682.530, F.S.; providing for an appeal

740

from an arbitration; specifying rules which may be

741

reviewed by writ of certiorari; providing additional

742

circumstances under which an arbitration decision may be

743

appealed; creating s. 682.531, F.S.; specifying that the

744

act modifies, limits, and supersedes certain provisions of

745

federal law; creating s. 682.532, F.S.; requiring that

746

certain arbitration organizations make information

747

available to the public concerning the type and number of

748

disputes it handles; requiring that such information be

749

provided free of charge; requiring that an arbitration

750

organization waive the fees for low-income persons

751

involved in a consumer arbitration; requiring that an

752

arbitration organization provide notice of the right to

753

such waiver; requiring a declaration of oath of indigency;

754

prohibiting an arbitration organization from keeping

755

confidential the number of waiver requests received or

756

granted or the total amount of fees waived; requiring the

757

arbitration organization to disclose all fees charged;

758

prohibiting an arbitrator or arbitration organization from

759

requiring a consumer to pay the fees and costs incurred by

760

an opposing party; providing that an arbitration

761

organization may not administer a consumer arbitration

762

under certain circumstances; authorizing a person or

763

entity to request that a court enjoin an arbitration

764

organization from violating provisions of the act, and to

765

request that a court order restitution; providing that the

766

arbitration organization is liable for such person's or

767

entity's reasonable attorney's fees and costs under

768

certain circumstances; creating s. 682.533, F.S.;

769

requiring that a party drafting an arbitration agreement

770

disclose filing fees and costs; providing that failure to

771

make such disclosures constitutes a deceptive and unfair

772

trade practice; providing for the enforcement of such

773

provision by injunction; providing for applicability of

774

the act; providing an effective date.

3/31/2008  10:34:00 AM     16-06087-08