California 2019-2020 Regular Session Status: Enacted

SB 707 — Arbitration agreements: enforcement.

Last action — Chaptered by Secretary of State. Chapter 870, Statutes of 2019.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 22, 2019. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law regulates arbitrations conducted pursuant to an agreement, as specified. (1) In an employment or consumer arbitration in which the drafting party, as defined, is required to pay certain fees and costs before the arbitration can proceed, this bill would provide that if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. If the drafting party materially breaches the arbitration agreement and is in default of the arbitration, the bill would authorize the employee or consumer to either withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction, or to compel arbitration in which the drafting party is required to pay reasonable attorney's fees and costs related to the arbitration. If the employee or consumer proceeds with an action in a court of appropriate jurisdiction, the bill would provide that the statute of limitations with regard to all claims brought or that relate back to any claim brought in arbitration are tolled, as specified. The bill would further require the court to impose a monetary sanction on the drafting party who materially breaches an arbitration agreement, and would authorize the court to impose other sanctions, as specified. (2) In an employment or consumer arbitration in which the drafting party, as defined, is required to pay certain fees and costs during the pendency of an arbitration proceeding, this bill would provide that if those fees or costs are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. If the drafting party materially breaches the arbitration agreement and is in default of the arbitration, the bill would authorize the employee or consumer to unilaterally withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction, or to compel arbitration, as specified. If the employee or consumer proceeds with an action in a court of appropriate jurisdiction, the bill would provide that the statute of limitations with regard to all claims brought or that relate back to any claim brought in arbitration are tolled, as specified. The bill would require the court to impose a monetary sanction on the drafting party who materially breaches an arbitration agreement, and would authorize the court to impose other sanctions, as specified. If the employee or consumer compels arbitration, the bill would require the arbitrator to impose appropriate sanctions on the drafting party, including monetary sanctions, issue sanctions, evidence sanctions, or terminating sanctions. (3) Existing law requires a private arbitration company involved in consumer arbitration cases to collect and make certain information regarding those cases available to the public, as specified. This bill would additionally require a private arbitration company to collect and report demographic data in the aggregate relative to ethnicity, race, disability, veteran status, gender, gender identity, and sexual orientation of all arbitrators, as specified. (4) The bill would make related legislative findings and declarations, and would provide that if any provision or its application to any person or circumstance is held invalid, that invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 870, Statutes of 2019.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. In Senate. Ordered to engrossing and enrolling.

  5. Read third time. Passed. (Ayes 51. Noes 21. Page 3430.) Ordered to the Senate.

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 8. Noes 3.) (June 18).

  8. Referred to Com. on JUD.

  9. In Assembly. Read first time. Held at Desk.

  10. Read third time. Passed. (Ayes 29. Noes 8. Page 1331.) Ordered to the Assembly.

  11. Read second time. Ordered to third reading.

  12. Ordered to second reading.

  13. Read third time and amended.

  14. Read second time. Ordered to third reading.

  15. Ordered to second reading.

  16. Withdrawn from committee.

  17. Set for hearing May 13.

  18. Read second time and amended. Re-referred to Com. on APPR.

  19. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0. Page 800.) (April 23).

  20. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  21. Set for hearing April 23.

  22. April 30 hearing postponed by committee.

  23. Set for hearing April 30.

  24. Re-referred to Coms. on JUD. and APPR.

  25. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  26. Referred to Com. on RLS.

  27. Read first time.

  28. From printer. May be acted upon on or after March 27.

  29. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

  • Wieckowski · Primary
  • Hertzberg · Cosponsor
  • Bonta · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 2 co-sponsors · 119 not signed on · 9 voted No

Sponsors (1)

  • Wieckowski

Co-sponsors (2)

  • Hertzberg
  • Bonta

Not signed on (119)

119 members have not signed on to this bill.

Show all 119 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed 51 Yea · 21 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 321604
Democratic 19003
Republican 0500
Total 512107
% of votes cast 65%27%0%9%
How each member voted (79)
Member Party Vote
Cooley — Yea
Smith — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Santiago — Yea
Chiu — Yea
Holden — Yea
Eggman — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Ting — Yea
Levine — Yea
McCarty — Yea
Low — Yea
Nazarian — Yea
Burke — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
O'Donnell — Yea
Weber — Yea
Salas — Nay
Fong — Nay
Brough — Nay
Kiley — Nay
Mayes — Nay
Mathis — Nay
Frazier — Nay
Bigelow — Nay
Cunningham — Nay
Voepel — Nay
Obernolte — Nay
Daly — Nay
Maienschein — Nay
Melendez — Nay
Waldron — Nay
Cooper — Not Voting
Rodriguez — Not Voting
Gray — Not Voting
Kamlager-Dove — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Not Voting
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Not Voting
Grayson, Timothy S. Democratic Not Voting
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Nay
Lackey, Tom Republican Nay

Official roll call →

Do pass.

Passed 8 Yea · 3 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 4201
Democratic 4000
Republican 0100
Total 8301
% of votes cast 67%25%0%8%
How each member voted (12)
Member Party Vote
Chiu — Yea
Holden — Yea
Chau — Yea
Obernolte — Nay
Kiley — Nay
Maienschein — Not Voting
Mark Stone — Yea
Gabriel, Jesse Democratic Yea
Kalra, Ash Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Nay

Official roll call →

Passed 29 Yea · 8 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 9000
Unaffiliated 20601
Republican 0200
Total 29801
% of votes cast 76%21%0%3%
How each member voted (38)
Member Party Vote
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Skinner — Yea
Allen — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Glazer — Yea
Chang — Yea
Pan — Yea
Moorlach — Nay
Bates — Nay
Morrell — Nay
Nielsen — Nay
Wilk — Nay
Borgeas — Not Voting
Rubio — Yea
Monning — Yea
Mark Stone — Nay
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Passed 8 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 4000
Unaffiliated 4000
Republican 0001
Total 8001
% of votes cast 89%0%0%11%
How each member voted (9)
Member Party Vote
Allen — Yea
Monning — Yea
Borgeas — Yea
Wieckowski — Yea
Caballero, Anna M. Democratic Yea
Jackson, Corey A. Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Jones, Brian W. Republican Not Voting

Official roll call →

Subjects

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Frequently asked questions

What does SB 707 do?
Existing law regulates arbitrations conducted pursuant to an agreement, as specified. (1) In an employment or consumer arbitration in which the drafting party, as defined, is required to pay certain fees and costs before the arbitration can proceed, this bill would provide that if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. If the drafting party materially breaches the arbitration agreement and is in default of the arbitration, the bill would authorize the employee or consumer to either withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction, or to compel arbitration in which the drafting party is required to pay reasonable attorney's fees and costs related to the arbitration. If the employee or consumer proceeds with an action in a court of appropriate jurisdiction, the bill would provide that the statute of limitations with regard to all claims brought or that relate back to any claim brought in arbitration are tolled, as specified. The bill would further require the court to impose a monetary sanction on the drafting party who materially breaches an arbitration agreement, and would authorize the court to impose other sanctions, as specified. (2) In an employment or consumer arbitration in which the drafting party, as defined, is required to pay certain fees and costs during the pendency of an arbitration proceeding, this bill would provide that if those fees or costs are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. If the drafting party materially breaches the arbitration agreement and is in default of the arbitration, the bill would authorize the employee or consumer to unilaterally withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction, or to compel arbitration, as specified. If the employee or consumer proceeds with an action in a court of appropriate jurisdiction, the bill would provide that the statute of limitations with regard to all claims brought or that relate back to any claim brought in arbitration are tolled, as specified. The bill would require the court to impose a monetary sanction on the drafting party who materially breaches an arbitration agreement, and would authorize the court to impose other sanctions, as specified. If the employee or consumer compels arbitration, the bill would require the arbitrator to impose appropriate sanctions on the drafting party, including monetary sanctions, issue sanctions, evidence sanctions, or terminating sanctions. (3) Existing law requires a private arbitration company involved in consumer arbitration cases to collect and make certain information regarding those cases available to the public, as specified. This bill would additionally require a private arbitration company to collect and report demographic data in the aggregate relative to ethnicity, race, disability, veteran status, gender, gender identity, and sexual orientation of all arbitrators, as specified. (4) The bill would make related legislative findings and declarations, and would provide that if any provision or its application to any person or circumstance is held invalid, that invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.
Who sponsors SB 707?
SB 707 is sponsored by Wieckowski, Hertzberg, and Bonta.
What is the current status of SB 707?
This bill has been enacted into law. Introduced February 22, 2019. Enacted.
Where can I track SB 707?
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