By: White of Bell H.B. No. 3698
A BILL TO BE ENTITLED
AN ACT
relating to nonbinding dispute resolution proceedings conducted by
religious organizations or authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 154, Civil Practice and
Remedies Code, is amended by adding Section 154.074 to read as
follows:
Sec. 154.074. NONBINDING DISPUTE RESOLUTION THROUGH
RELIGIOUS ORGANIZATION OR AUTHORITY. (a) Notwithstanding Section
110.003, a religious organization or authority that provides a
nonbinding dispute resolution proceeding shall provide a
disclosure statement to each party to the proceeding. The
disclosure must state that:
(1) the organization or authority conducting the
nonbinding dispute resolution proceeding is not a court of law;
(2) a nonbinding dispute resolution proceeding that
results in a settlement agreement is not binding on the parties and
does not have the force of law unless and until a judge signs the
settlement agreement;
(3) after the parties have signed the settlement
agreement and the agreement is filed with the clerk of the court,
the agreement may be modified by agreement of the parties if the
disclosure is signed and witnessed in accordance with Subsection
(c) and attached to the agreement when filed;
(4) judges are bound by public policy imperatives and
will not sign a settlement agreement that is void on its face by
virtue of the application of foreign law to the dispute that
violates the public policy of this state, meaning an agreement that
violates good morals or natural justice or is prejudicial to the
general interests of the citizens of this state;
(5) the parties recognize that a judge who signs the
settlement agreement is unable to review the terms and conditions
of agreement formation for compliance with public policy standards
or procedural due process requirements and that only a court
hearing or binding arbitration process will provide review of
important aspects of a contract or marriage formation or
dissolution or an arbitration for:
(A) the validity and scope of any arbitration
agreement between the parties;
(B) compliance of an arbitration proceeding with
proper procedures and due process;
(C) whether any resulting decision is irrational
or void as against the public policy of this state;
(D) the entitlement of a party to adequate notice
and representation by an attorney;
(E) the obligation of an arbitrator to disclose
information relevant to the arbitrator's impartiality; and
(F) the inability of a party to agree to the
unreasonable restriction of the party's right to notice or
arbitrator disclosure or to waive the right to attorney
representation; and
(6) a party has the right to petition a court to
establish a fact or condition leading to or contained in the
settlement agreement, subject to the applicable statute of
limitations.
(b) A religious organization or authority that provides
nonbinding dispute resolution proceedings shall include in any and
all of the organization's or authority's training or governing
materials for nonbinding dispute resolution proceedings:
(1) a reference to the requirement that the parties to
a nonbinding dispute resolution proceeding sign the disclosure
statement described by Subsection (a);
(2) a copy of a form containing the required
disclosure statement; and
(3) a statement that child custody or child support
disputes may not be addressed through a nonbinding dispute
resolution proceeding.
(c) Each party to a nonbinding dispute resolution
proceeding provided by a religious organization or authority must
sign the disclosure statement described by Subsection (a) in the
presence of a subscribing witness before the proceeding commences.
If the parties file the resulting settlement agreement with the
clerk of a court to obtain the signature of a judge, the judge must
also sign the disclosure statement.
(d) A religious organization or authority that provides
nonbinding dispute resolution proceedings shall maintain all files
related to a nonbinding dispute resolution proceeding, regardless
of whether the proceeding resulted in a settlement agreement. The
files shall be kept at a physical location where the religious
organization or authority meets and, on request, presented for
review by any person.
(e) A religious organization or authority may not address
child custody or child support disputes through a nonbinding
dispute resolution proceeding.
SECTION 2. The change in law made by this Act applies only
to a nonbinding dispute resolution proceeding that is commenced on
or after the effective date of this Act. A nonbinding dispute
resolution proceeding that is commenced before the effective date
of this Act is governed by the law as it existed immediately before
that date, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.