I 

114TH CONGRESS 

2D SESSION H. R. 4899 

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

arbitration. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 12, 2016 

Mr. JOHNSON of Georgia (for himself, Mr. CONYERS, Ms. JUDY CHU of California, Ms. JACKSON LEE, and Mr. CICILLINE) 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 2016’’. 

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 

9 which Congress, exercising its power under article I 

10 of the Constitution of the United States, has grant11 ed to the people of the United States for resolving 

12 disputes in State and Federal courts. 

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

15 American Express Co. v. Italian Colors Restaurant, 

16 133 S.Ct. 2304 (June 20, 2013), have interpreted 

17 the Federal Arbitration Act to broadly preempt 

18 rights and remedies established under substantive 

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

20 have enabled business entities to avoid or nullify 

21 legal duties created by congressional enactment, re22 sulting in millions of people in the United States 

23 being unable to vindicate their rights in State and 

24 Federal courts. 


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1 (4) States have a compelling interest in enact2 ing rights and remedies to protect the welfare of 

3 their citizens, and the Federal Arbitration Act 

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

5 to preempt State legislation that enacted rights and 

6 remedies to protect the welfare of their citizens. 

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

8 is the intent of Congress— 

9 (1) to restate and reinstitute the primacy of 

10 congressional and State legislative bodies as the cre11 ators of the rights and remedies available to all the 

12 people of the United States; 

13 (2) to clarify that congressionally established 

14 rights and remedies may not be waived prior to the 

15 institution of a dispute by the party intended to be 

16 protected by such statute; and 

17 (3) to reinstate and reaffirm existing rights and 

18 remedies of the people of the United States enacted 

19 since the enactment of the Federal Arbitration Act 

20 regarding access to the courts that have, or may 

21 have been, abrogated or diminished. 


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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 04:12 Apr 14, 2016 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4899.IH H4899

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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 deter5 mination as to whether this chapter applies to an agree6 ment to arbitrate shall be made by a court, rather than 

7 an arbitrator, irrespective of whether the party resisting 

8 arbitration challenges the agreement to arbitrate specifi9 cally or in conjunction with other terms of the contract 

10 containing 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 


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

2 on or after such date of enactment. 

Æ 


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