BILL NUMBER: AB 1176	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Tran

                        FEBRUARY 22, 2005

   An act to add Section 1286.3 to, and to repeal Title 9.2
(commencing with Section 1296) of Part 3 of, the Code of Civil
Procedure, relating to arbitration.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1176, as introduced, Tran.   Arbitration.
   Existing law sets forth limited grounds for vacation of an
arbitration award, including the procurement of the award by
corruption, fraud, or other undue means. However, with respect to a
construction contract with a public agency, the parties may expressly
agree in writing that in any arbitration to resolve a dispute
relating to the contract, the arbitrator's award shall be supported
by law and substantial evidence. If the contract so provides, the
court is required to vacate an award that is not supported by law and
substantial evidence.
   This bill would authorize the parties to any contract to expressly
agree in writing that in any arbitration to resolve a dispute
relating to the contract, the arbitrator's award shall be supported
by law and substantial evidence, and would require the court, where
the contract so provides, to vacate an award that is not supported by
law and substantial evidence.
   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 1286.3 is added to the  Code of Civil Procedure
, to read:
   1286.3.  The parties to any contract may expressly agree in
writing that in any arbitration to resolve a dispute relating to the
contract, the arbitrator's award shall be supported by law and
substantial evidence. If the agreement so provides, a court shall,
subject to Section 1286.4, vacate the award if after review of the
award it determines either that the award is not supported by
substantial evidence or that it is based on an error of law.
  SEC. 2.  Title 9.2 (commencing with Section 1296) of Part 3 of the
Code of Civil Procedure  is repealed.