II 

116TH CONGRESS 

1ST SESSION S. 635 

To restore statutory rights to the people of the United States from forced 

arbitration. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2019 

Mr. LEAHY (for himself, Mr. BLUMENTHAL, Mr. DURBIN, Mr. WHITEHOUSE, 

Mr. MARKEY, Ms. HIRONO, and Mr. COONS) introduced the following bill; 

which was read twice and referred to the Committee on the Judiciary 

A BILL 

To restore statutory rights to the people of the United States 

from forced arbitration. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Restoring Statutory 

5 Rights and Interests of the States Act of 2019’’. 

6 SEC. 2. FINDINGS AND INTENT. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) Chapter 1 of title 9, United States Code 

9 (commonly known as the ‘‘Federal Arbitration 

10 Act’’), represented an exercise of legislative power 


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1 that required courts to recognize private voluntary 

2 agreements to arbitrate commercial disputes at a 

3 time when the courts were refusing to do so on 

4 grounds that arbitration represented a usurpation of 

5 the authority of the courts to resolve legal disputes. 

6 (2) The Federal Arbitration Act did not, and 

7 should not have been interpreted to, supplant or nul8 lify the legislatively created rights and remedies that 

9 Congress, exercising its power under article I of the 

10 Constitution of the United States, has granted to 

11 the people of the United States for resolving dis12 putes in State and Federal courts. 

13 (3) Recent court decisions, including AT&T Mo14 bility LLC v. Concepcion, 563 U.S. 333 (2011) and 

15 American Express Co. v. Italian Colors Restaurant, 

16 133 S. Ct. 2304 (2013), have interpreted the Fed17 eral Arbitration Act to broadly preempt rights and 

18 remedies established under substantive State and 

19 Federal law. As a result, these decisions have en20 abled business entities to avoid or nullify legal duties 

21 created by congressional enactment, resulting in mil22 lions of people in the United States being unable to 

23 vindicate their rights in State and Federal courts. 

24 (4) States have a compelling interest in enact25 ing rights and remedies to protect the welfare of 


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1 their citizens, and the Federal Arbitration Act 

2 should not be, and should not have been, interpreted 

3 to preempt State legislation that enacted rights and 

4 remedies to protect the welfare of their citizens. 

5 (b) INTENT OF CONGRESS.—In enacting this Act, it 

6 is the intent of Congress— 

7 (1) to restate and reinstitute the primacy of 

8 congressional and State legislative bodies as the cre9 ators of the rights and remedies available to all the 

10 people of the United States; 

11 (2) to clarify that congressionally established 

12 rights and remedies may not be waived prior to the 

13 institution of a dispute by the party intended to be 

14 protected by such statute; and 

15 (3) to reinstate and reaffirm existing rights and 

16 remedies of the people of the United States enacted 

17 since the enactment of the Federal Arbitration Act 

18 regarding access to the courts that have, or may 

19 have been, abrogated or diminished. 

20 SEC. 3. ARBITRATION OF FEDERAL STATUTORY CAUSES OF 

21 ACTION. 

22 (a) ADJUDICATION OF FEDERAL STATUTORY RIGHTS

23 OF ACTION.—Section 2 of title 9, United States Code, is 

24 amended— 


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1 (1) by striking ‘‘A written’’ and inserting ‘‘(a) 

2 IN GENERAL.—Except as provided in subsection (b), 

3 a written’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 

6 a written provision that requires arbitration of a claim for 

7 damages or injunctive relief brought by an individual or 

8 small business concern (as defined in section 3 of the 

9 Small Business Act (15 U.S.C. 632)), in either an indi10 vidual or representative capacity, arising from the alleged 

11 violation of a Federal or State statute, the Constitution 

12 of the United States, or a constitution of a State, unless 

13 the written agreement to arbitrate is entered into by both 

14 parties after the claim has arisen and pertains solely to 

15 an existing claim. 

16 ‘‘(c) INTERACTION WITH STATE LAW.—In sub17 section (a), the term ‘grounds as exist at law or in equity 

18 for the revocation of a contract’ includes a Federal or 

19 State statute, or the finding of a Federal or State court, 

20 that prohibits the agreement to arbitrate on grounds that 

21 the agreement is unconscionable, invalid because there was 

22 no meeting of the minds, or otherwise unenforceable as 

23 a matter of contract law or public policy. 

24 ‘‘(d) VALIDITY AND ENFORCEABILITY.—A deter25 mination as to whether this chapter applies to an agreeVerDate Sep 11 2014 00:36 Mar 09, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S635.IS S635

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1 ment to arbitrate shall be made by a court, rather than 

2 an arbitrator, irrespective of whether the party resisting 

3 arbitration challenges the agreement to arbitrate specifi4 cally or in conjunction with other terms of the contract 

5 containing such agreement.’’. 

6 SEC. 4. VACATING AN AWARD MADE IN VIOLATION OF SEC7 TION 2 OF TITLE 9, UNITED STATES CODE. 

8 Section 10(a) of title 9, United States Code, is 

9 amended— 

10 (1) in paragraph (3), by striking ‘‘or’’ at the 

11 end; 

12 (2) in paragraph (4), by striking the period at 

13 the end and inserting ‘‘; or’’; and 

14 (3) by adding at the end the following: 

15 ‘‘(5) where the arbitration took place in viola16 tion of section 2.’’. 

17 SEC. 5. APPLICABILITY. 

18 This Act, and the amendments made by this Act, 

19 shall apply with respect to any dispute or claim that arises 

20 on or after the date of enactment of this Act. 

Æ 


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