I 

115TH CONGRESS 

1ST SESSION H. R. 1396 

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

arbitration. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2017 

Mr. CICILLINE (for himself, Mr. CONYERS, Ms. MAXINE WATERS of California, Mr. JOHNSON of Georgia, Ms. JACKSON LEE, Ms. SCHAKOWSKY, 

Mr. COHEN, Ms. JAYAPAL, Mr. RASKIN, Mr. TED LIEU of California, Ms. 

HANABUSA, Ms. BONAMICI, Mr. SEAN PATRICK MALONEY of New York, 

and Mr. GRIJALVA) introduced the following bill; which was 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 2017’’. 

6 SEC. 2. FINDINGS AND INTENT. 

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


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 1396 IH

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

2 (commonly known as the ‘‘Federal Arbitration 

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

4 that required courts to recognize private voluntary 

5 agreements to arbitrate commercial disputes at a 

6 time when the courts were refusing to do so on 

7 grounds that arbitration represented a usurpation of 

8 the authority of the courts to resolve legal disputes. 

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

10 should not have been interpreted to, supplant or nul11 lify the legislatively created rights and remedies 

12 which Congress, exercising its power under article I 

13 of the Constitution of the United States, has grant14 ed to the people of the United States for resolving 

15 disputes in State and Federal courts. 

16 (3) Recent court decisions, including AT&T Mo17 bility v. Concepcion, 563 U.S. 333 (2011) and 

18 American Express Co. v. Italian Colors Restaurant, 

19 133 S.Ct. 2304 (June 20, 2013), have interpreted 

20 the Federal Arbitration Act to broadly preempt 

21 rights and remedies established under substantive 

22 State and Federal law. As a result, these decisions 

23 have enabled business entities to avoid or nullify 

24 legal duties created by congressional enactment, re25 sulting in millions of people in the United States 


SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 1396 IH

1 being unable to vindicate their rights in State and 

2 Federal courts. 

3 (4) States have a compelling interest in enact4 ing rights and remedies to protect the welfare of 

5 their citizens, and the Federal Arbitration Act 

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

7 to preempt State legislation that enacted rights and 

8 remedies to protect the welfare of their citizens. 

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

10 is the intent of Congress— 

11 (1) to restate and reinstitute the primacy of 

12 congressional and State legislative bodies as the cre13 ators of the rights and remedies available to all the 

14 people of the United States; 

15 (2) to clarify that congressionally established 

16 rights and remedies may not be waived prior to the 

17 institution of a dispute by the party intended to be 

18 protected by such statute; and 

19 (3) to reinstate and reaffirm existing rights and 

20 remedies of the people of the United States enacted 

21 since the enactment of the Federal Arbitration Act 

22 regarding access to the courts that have, or may 

23 have been, abrogated or diminished. 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 1396 IH

1 SEC. 3. ARBITRATION OF FEDERAL STATUTORY CAUSES OF 

2 ACTION. 

3 (a) ADJUDICATION OF FEDERAL STATUTORY RIGHTS

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

5 amended— 

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

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

8 a written’’; and 

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

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

11 a written provision that requires arbitration of a claim for 

12 damages or injunctive relief brought by an individual or 

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

14 Small Business Act (15 U.S.C. 632)), in either an indi15 vidual or representative capacity, arising from the alleged 

16 violation of a Federal or State statute, the Constitution 

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

18 the written agreement to arbitrate is entered into by both 

19 parties after the claim has arisen and pertains solely to 

20 an existing claim. 

21 ‘‘(c) INTERACTION WITH STATE LAW.—For pur22 poses of subsection (a), the phrase ‘grounds as exist at 

23 law or in equity for the revocation of a contract’ shall in24 clude a Federal or State statute, or the finding of a Fed25 eral or State court, that prohibits the agreement to arbi26 trate on grounds that the agreement is unconscionable, inVerDate Sep 11 2014 03:32 Mar 11, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1396.IH H1396

SSpencer on DSK4SPTVN1PROD with BILLS
5 

•HR 1396 IH

1 valid because there was no meeting of the minds, or other2 wise unenforceable as a matter of contract law or public 

3 policy. 

4 ‘‘(d) VALIDITY AND ENFORCEABILITY.—A determi5 nation as to whether this chapter applies to an agreement 

6 to arbitrate shall be made by a court, rather than an arbi7 trator, irrespective of whether the party resisting arbitra8 tion challenges the agreement to arbitrate specifically or 

9 in conjunction with other terms of the contract containing 

10 such agreement.’’. 

11 SEC. 4. VACATING AN AWARD MADE IN VIOLATION OF SEC12 TION 2 OF TITLE 9, UNITED STATES CODE. 

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

14 amended— 

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

16 end; 

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

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

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

20 ‘‘(5) where the arbitration took place in viola21 tion of section 2.’’. 

22 SEC. 5. EFFECTIVE DATE. 

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

24 shall take effect on the date of enactment of this Act and 


SSpencer on DSK4SPTVN1PROD with BILLS
6 

•HR 1396 IH

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

2 on or after such date of enactment. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS