LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 12, 2011 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1216 by Estes (Relating to determination of the validity and enforceability of a contract containing an arbitration agreement in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend the Family Code to require a court to try a case relating to a contract containing an arbitration agreement relating to the dissolution of a marriage or the parent-child relationship promptly, and may order arbitration only if the court determines the contract is valid and enforceable against the party seeking to avoid arbitration. A determination that a contract is valid and enforceable would not affect the courts authority to stay arbitration or refuse to compel arbitration. The Office of Court Administration (OCA) reported that because the bill would not affect a courts right to stay or refuse to compel arbitration there should not be an increase in court filings; therefore, no significant fiscal impact on the courts is anticipated. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JOB, KJG, JB LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 12, 2011 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1216 by Estes (Relating to determination of the validity and enforceability of a contract containing an arbitration agreement in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 1st House, Substituted TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE: SB1216 by Estes (Relating to determination of the validity and enforceability of a contract containing an arbitration agreement in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 1st House, Substituted Honorable Robert Duncan, Chair, Senate Committee on State Affairs Honorable Robert Duncan, Chair, Senate Committee on State Affairs John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board SB1216 by Estes (Relating to determination of the validity and enforceability of a contract containing an arbitration agreement in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 1st House, Substituted SB1216 by Estes (Relating to determination of the validity and enforceability of a contract containing an arbitration agreement in suits for dissolution of marriage and certain suits affecting the parent-child relationship.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Family Code to require a court to try a case relating to a contract containing an arbitration agreement relating to the dissolution of a marriage or the parent-child relationship promptly, and may order arbitration only if the court determines the contract is valid and enforceable against the party seeking to avoid arbitration. A determination that a contract is valid and enforceable would not affect the courts authority to stay arbitration or refuse to compel arbitration. The Office of Court Administration (OCA) reported that because the bill would not affect a courts right to stay or refuse to compel arbitration there should not be an increase in court filings; therefore, no significant fiscal impact on the courts is anticipated. The bill would amend the Family Code to require a court to try a case relating to a contract containing an arbitration agreement relating to the dissolution of a marriage or the parent-child relationship promptly, and may order arbitration only if the court determines the contract is valid and enforceable against the party seeking to avoid arbitration. A determination that a contract is valid and enforceable would not affect the courts authority to stay arbitration or refuse to compel arbitration. The Office of Court Administration (OCA) reported that because the bill would not affect a courts right to stay or refuse to compel arbitration there should not be an increase in court filings; therefore, no significant fiscal impact on the courts is anticipated. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JOB, KJG, JB JOB, KJG, JB