district court shall promulgate its own procedures and cri-
teria for the selection of neutrals on its panels.
‘‘(b) QUALIFICATIONS AND TRAINING.—Each person
serving as a neutral in an alternative dispute resolution
process should be qualified and trained to serve as a neu-
tral in the appropriate alternative dispute resolution proc-
ess. For this purpose, the district court may use, among
others, magistrate judges who have been trained to serve
as neutrals in alternative dispute resolution processes, pro-
fessional neutrals from the private sector, and persons who
have been trained to serve as neutrals in alternative dis-
pute resolution processes. Until such time as rules are
adopted pursuant to chapter 131 of this title relating to
the disqualification of neutrals, each district court shall
issue rules relating to the disqualification of neutrals (in-
cluding, where appropriate, disqualification under section
455 of this title, other applicable law, and professional re-
sponsibility standards).’’.
SEC. 5. ACTIONS REFERRED TO ARBITRATION.
Section 654 of title 28, United States Code, is
amended to read as follows:
‘‘§ 654. Arbitration
‘‘(a) REFERRAL OF ACTIONS TO ARBITRATION.—
Notwithstanding any provision of law to the contrary and
except as provided in subsections (b) and (c) of section
652 and subsection (d) of this section, a district court may
allow the referral to arbitration of any civil action (includ-
ing any adversary proceeding in bankruptcy) pending be-
fore it, except that referral to arbitration may not be made
where—
‘‘(1) the action is based on an alleged violation
of a right secured by the Constitution of the United
States;
‘‘(2) jurisdiction is based in whole or in part on
section 1343 of this title; or
‘‘(3) the relief sought consists of money dam-
ages in an amount greater than $150,000.
‘‘(b) SAFEGUARDS IN CONSENT CASES.—Until such
time as rules are adopted pursuant to chapter 131 of this
title relating to procedures described in this subsection,
the district court shall by local rule establish procedures
to ensure that any civil action in which arbitration by con-
sent is allowed under subsection (a)—
‘‘(1) consent to arbitration is freely and know-
ingly obtained; and
‘‘(2) no party or attorney is prejudiced for re-
fusing to participate in arbitration.
‘‘(c) PRESUMPTIONS.—For purposes of subsection
(a)(3), a district court may presume damages are not in
excess of $150,000 unless counsel certifies that damages
exceed such amount.
‘‘(d) EXISTING PROGRAMS.—Nothing in this section
is deemed to affect any action in which arbitration is con-
ducted pursuant to section 906 of the Judicial Improve-
ments and Access to Justice Act (Public Law 100–102),
as in effect prior to the date of its repeal.’’.
SEC. 6. ARBITRATORS.
Section 655 of title 28, United States Code, is
amended to read as follows:
‘‘§ 655. Arbitrators
‘‘(a) POWERS OF ARBITRATORS.—An arbitrator to
whom an action is referred under section 654 shall have
the power, within the judicial district of the district court
which referred the action to arbitration—
‘‘(1) to conduct arbitration hearings;
‘‘(2) to administer oaths and affirmations; and
‘‘(3) to make awards.
‘‘(b) STANDARDS FOR CERTIFICATION.—Each dis-
trict court that authorizes arbitration shall establish
standards for the certification of arbitrators and shall cer-
tify arbitrators to perform services in accordance with
such standards and this chapter. The standards shall in-
clude provisions requiring that any arbitrator—
‘‘(1) shall take the oath or affirmation de-
scribed in section 453; and
‘‘(2) shall be subject to the disqualification
rules under section 455.
‘‘(c) IMMUNITY.—All individuals serving as arbitra-
tors in an alternative dispute resolution program under
this chapter are performing quasi-judicial functions and
are entitled to the immunities and protections that the law
accords to persons serving in such capacity.’’.
SEC. 7. SUBPOENAS.
Section 656 of title 28, United States Code, is
amended to read as follows:
‘‘§ 656. Subpoenas
‘‘Rule 45 of the Federal Rules of Civil Procedure (re-
lating to subpoenas) applies to subpoenas for the attend-
ance of witnesses and the production of documentary evi-
dence at an arbitration hearing under this chapter.’’.
SEC. 8. ARBITRATION AWARD AND JUDGMENT.
Section 657 of title 28, United States Code, is
amended to read as follows:
‘‘§ 657. Arbitration award and judgment
‘‘(a) 
FILING
AND
EFFECT
OF
ARBITRATION
AWARD.—An arbitration award made by an arbitrator
under this chapter, along with proof of service of such
award on the other party by the prevailing party or by
the plaintiff, shall be filed promptly after the arbitration
hearing is concluded with the clerk of the district court
that referred the case to arbitration. Such award shall be
entered as the judgment of the court after the time has
expired for requesting a trial de novo. The judgment so
entered shall be subject to the same provisions of law and
shall have the same force and effect as a judgment of the
court in a civil action, except that the judgment shall not
be subject to review in any other court by appeal or other-
wise.
‘‘(b) SEALING OF ARBITRATION AWARD.—The dis-
trict court shall provide by local rule that the contents of
any arbitration award made under this chapter shall not
be made known to any judge who might be assigned to
the case until the district court has entered final judgment
in the action or the action has otherwise terminated.
‘‘(c) TRIAL DE NOVO OF ARBITRATION AWARDS.—
‘‘(1) TIME FOR FILING DEMAND.—Within 30
days after the filing of an arbitration award with a
district court under subsection (a), any party may
file a written demand for a trial de novo in the dis-
trict court.
‘‘(2) ACTION RESTORED TO COURT DOCKET.—
Upon a demand for a trial de novo, the action shall
be restored to the docket of the court and treated
for all purposes as if it had not been referred to ar-
bitration.
‘‘(3) EXCLUSION
OF
EVIDENCE
OF
ARBITRA-
TION.—The court shall not admit at the trial de
novo any evidence that there has been an arbitration
proceeding, the nature or amount of any award, or
any other matter concerning the conduct of the arbi-
tration proceeding, unless—
‘‘(A) the evidence would otherwise be ad-
missible in the court under the Federal Rules of
Evidence; or
‘‘(B) the parties have otherwise stipulated.
‘‘(d) TAXATION OF COSTS.—In any trial de novo de-
manded under subsection (c) in which arbitration was
done by consent of the parties, a district court may assess
costs, as provided in section 1920 of this title, and reason-
able attorneys fees against the party demanding the trial
de novo if—
‘‘(1) such party fails to obtain a judgment, ex-
clusive of interest and costs, in the court, which is
substantially more favorable to such party than the
arbitration award; and
‘‘(2) the court determines that the party’s con-
duct in seeking a trial de novo was in bad faith.’’.
SEC. 9. COMPENSATION OF ARBITRATORS AND NEUTRALS.
Section 658 of title 28, United States Code, is
amended to read as follows:
‘‘§ 658. Compensation of arbitrators and neutrals
‘‘(a) COMPENSATION.—The district court shall, sub-
ject to limits set by the Judicial Conference of the United
States, establish and pay the amount of compensation, if
any, that each arbitrator or neutral shall receive for serv-
ices rendered in each case under this chapter.
‘‘(b) TRANSPORTATION ALLOWANCES.—Under regu-
lations prescribed by the Director of the Administrative
Office of the United States Courts, a district court may
reimburse arbitrators for actual transportation expenses
necessarily incurred in the performance of duties under
this chapter.’’.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for each fis-
cal year such sums as may be necessary to carry out chap-
ter 44 of title 28, United States Code, as amended by this
Act.
SEC. 11. CONFORMING AMENDMENTS.
(a) LIMITATION ON MONEY DAMAGES.—Section 901
of the Judicial Improvements and Access to Justice Act
(28 U.S.C. 652 note) is amended by striking subsection
(c).
(b) OTHER CONFORMING AMENDMENTS.—(1) The
chapter heading for chapter 44 of title 28, United States
Code, is amended to read as follows:
‘‘CHAPTER 44—ALTERNATIVE
DISPUTE RESOLUTION’’.
(2) The table of contents for chapter 44 of title 28,
United States Code, is amended to read as follows:
‘‘Sec.
‘‘651.
Authorization of alternative dispute resolution.
‘‘652.
Jurisdiction.
‘‘653.
Neutrals.
‘‘654.
Arbitration.
‘‘655.
Arbitrators.
‘‘656.
Subpoenas.
‘‘657.
Arbitration award and judgment.
‘‘658.
Compensation of arbitrators and neutrals.
(3) The item relating to chapter 44 in the table of
chapters for Part III of title 28, United States Code, is
amended to read as follows:
‘‘44. Alternative Dispute Resolution ...........................................
651’’.
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