California Senate Bill 940
Session 20232024
Civil disputes.
Became Law
Became Law on Sep 29, 2024
Origin Chamber
Senate
Type
Bill
Bill Number
940
State
California
Session
20232024
Thomas J. Umberg
grade
Author
Motion Text
Unfinished Business SB940 Umberg Concurrence
Senate Roll Call Votes
Yes
Yes
Other
Yes
Yes
Yes
Yes
Yes
Other
Yes
Other
Yes
Summary
(1) Existing law, the Consumer Contract Awareness Act of 1990, defines a consumer contract as a writing prepared by a seller that provides for the sale or lease of goods or services or the extension of credit, as specified, for personal, family, or household purposes, among other provisions. The act requires a seller to deliver a copy of a consumer contract to the consumer at the time the contract is signed, and prohibits the waiver of any provisions of the act. Existing law prohibits an employer from requiring specified employees, as a condition of employment, to agree to a provision that would require the employee to adjudicate outside of California a claim arising in California or deprive the employee of the substantive protection of California law with respect to a controversy arising in California, as specified.
This bill, for contracts entered into, modified, or extended on or after January 1, 2025, would prohibit a seller from requiring a consumer, as a condition of entering into a contract, to agree to a provision that would require the consumer to arbitrate outside of California a claim arising in California or to arbitrate a controversy arising in California under the substantive law of a state other than California, as specified.
Existing law, the Small Claims Act, requires each superior court to have a small claims division, and provides that the small claims court has jurisdiction over specified actions.
This bill would give consumers the option to have a dispute adjudicated pursuant to the Small Claims Act if a consumer contract requires a dispute under the contract to be arbitrated and the dispute may be adjudicated pursuant to the Small Claims Act.
(2) Existing law, the California Arbitration Act, provides a statutory framework for the enforcement of contractual arbitration under California law. The act establishes that a written agreement to submit a present or future controversy to arbitration is valid, enforceable, and irrevocable, except to the extent that the contract could otherwise be revoked under general contract law principles. The act defines a neutral arbitrator as one who is selected jointly by the parties or by the parties' arbitrators, or is appointed by the court if the parties or their arbitrators cannot jointly select an arbitrator. The act requires a person selected to serve as a neutral arbitrator to disclose all matters that could cause a person aware of the facts to reasonably entertain a doubt as to the proposed neutral arbitrator's impartiality. The act requires the disclosure to include, among other things, whether or not the proposed neutral arbitrator has a current arrangement concerning prospective employment or other compensated service as a dispute resolution neutral with a party to the proceeding, or is participating in, or has participated within the last 2 years in, discussions regarding such prospective employment or service.
This bill, in a consumer arbitration case, would, except as specified, require the disclosure of any solicitation, as defined, made after January 1, 2025, and within the last 2 years by, or at the direction of, a private arbitration company to a party or lawyer for a party. The bill would prohibit the solicitation of a party or lawyer for a party during the pendency of the arbitration.
The act authorizes depositions to be taken and discovery obtained in arbitration proceedings, as specified. The act deems those deposition and discovery provisions to be incorporated into every agreement to arbitrate specified disputes and provides that those provisions are incorporated into other disputes only if the agreement so provides.
This bill would repeal the provisions deeming those deposition and discovery provisions to be incorporated into every agreement to arbitrate specified disputes and providing that those provisions are incorporated into other disputes only if the agreement so provides. The bill would make conforming changes.
(3) Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation governed by a board of trustees comprised of appointed and elected members. Existing law authorizes a law corporation to practice law if certain conditions are met.
This bill would require the State Bar to create a program to certify alternative dispute resolution firms, providers, or practitioners that includes specified components, including procedures for a firm, provider, or practitioner to become a certified alternative dispute resolution firm, provider, or practitioner, as specified, and different levels of tiers for certification, as specified. The bill would authorize the State Bar to charge a fee to cover the reasonable costs of administering the program, as specified.
01/17/24 - Introduced
January 17, 2024
03/12/24 - Amended Senate
March 12, 2024
04/01/24 - Amended Senate
April 1, 2024
05/02/24 - Amended Senate
May 2, 2024
06/12/24 - Amended Assembly
June 12, 2024
06/27/24 - Amended Assembly
June 27, 2024
08/08/24 - Amended Assembly
August 8, 2024
08/20/24 - Amended Assembly
August 20, 2024
08/30/24 - Enrolled
August 30, 2024
09/29/24 - Chaptered
September 29, 2024
04/26/24- Senate Judiciary
April 26, 2024
05/02/24- Sen. Floor Analyses
May 2, 2024
06/07/24- Assembly Judiciary
June 7, 2024
06/14/24- ASSEMBLY FLOOR ANALYSIS
June 14, 2024
06/28/24- ASSEMBLY FLOOR ANALYSIS
June 28, 2024
08/09/24- ASSEMBLY FLOOR ANALYSIS
August 9, 2024
08/21/24- ASSEMBLY FLOOR ANALYSIS
August 21, 2024
08/28/24- Sen. Floor Analyses
August 28, 2024
Sort by most recent
09/29/2024
California State Legislature
Chaptered by Secretary of State. Chapter 986, Statutes of 2024.
09/29/2024
California State Legislature
Approved by the Governor.
09/04/2024
California State Legislature
Enrolled and presented to the Governor at 4 p.m.
08/28/2024
Senate
Assembly amendments concurred in. (Ayes 31. Noes 6. Page 5587.) Ordered to engrossing and enrolling.
08/28/2024
Senate
In Senate. Concurrence in Assembly amendments pending.
08/27/2024
Assembly
Read third time. Passed. (Ayes 56. Noes 16. Page 6649.) Ordered to the Senate.
08/20/2024
Assembly
Ordered to third reading.
08/20/2024
Assembly
Read third time and amended.
08/08/2024
Assembly
Ordered to third reading.
08/08/2024
Assembly
Read third time and amended.
06/27/2024
Assembly
Ordered to third reading.
06/27/2024
Assembly
Read third time and amended.
06/13/2024
Assembly
Read second time. Ordered to third reading.
06/12/2024
Assembly
Read second time and amended. Ordered to second reading.
06/11/2024
Assembly
From committee: Do pass as amended. (Ayes 8. Noes 3.) (June 11).
06/03/2024
Assembly
Referred to Com. on JUD.
05/22/2024
Assembly
In Assembly. Read first time. Held at Desk.
05/21/2024
Senate
Read third time. Passed. (Ayes 30. Noes 9. Page 4080.) Ordered to the Assembly.
05/02/2024
Senate
Read second time and amended. Ordered to third reading.
05/01/2024
Senate
From committee: Do pass as amended. (Ayes 9. Noes 1. Page 3819.) (April 30).
04/09/2024
Senate
Set for hearing April 30.
04/01/2024
Senate
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
03/20/2024
Senate
Re-referred to Com. on JUD.
03/12/2024
Senate
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
02/14/2024
Senate
Referred to Com. on RLS.
01/18/2024
Senate
From printer. May be acted upon on or after February 17.
01/17/2024
Senate
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Sources
Record Created
Jan 18, 2024 12:16:24 PM
Record Updated
Oct 10, 2024 12:31:46 PM