SB 983

Abstract

Creates the Limitations on Forced Arbitration Act. Defines terms and contains statements of findings, purpose, and policy. Places conditions limiting the use of forced arbitration agreements on entities doing business with the State. Creates a rebuttable presumption that specified contract terms relating to forced arbitration agreements are unconscionable. Prohibits arbitration agreements in specified situations. Provides that, with specified exceptions, appellate courts do not have jurisdiction to review a trial court's interlocutory order denying a motion to compel arbitration or otherwise concluding that an arbitration agreement is unenforceable or does not apply to a particular claim. Makes other changes, including a corresponding change in the Uniform Arbitration Act. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person may initiate on behalf of the State an action alleging violations of the Act to recover civil penalties on behalf of the State and to seek injunctive, declaratory, or other equitable relief that the State would itself be entitled to seek. Allows such a person a percentage of the recovery. Adds provisions governing: the State's opportunity to intervene and proceed with the action; discovery; prohibition of duplicative actions; settlement; limitations on State actions initiated by a private party; res judicata; relationship to forced arbitration; and severability.