An act to provide financial assistance for the development and maintenance of effective, fair, inexpensive, and expeditious mechanisms for the resolution for minor disputes.
PL 96-190 (S.423), enacted 02/12/1980

PUBLIC LAW 96-190—FEB. 12, 1980 
94 STAT. 17 
Public Law 96-190 
96th Congress 
An Act 
To provide financial assistance for the develoi)ment and maintenance of effective, 
fair, inexpensive, and expeditious mechanisms for the resolution for minor 
disputes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Dispute Resolution Act". 
SEC. 2. (a) The Congress 
finds 
and declares that— 
(1) for the majority of Americans, mechanisms for the resolu-
tion of minor disputes are largely unavailable, inaccessible, 
ineffective, expensive, or unfair, 
(2) the inadequacies of dispute resolution mechanisms in the 
United States have resulted in dissatisfaction and many types of 
inadequately resolved grievances and disputes; 
(3) each individual dispute, such as that between neighbors, a 
consumer and seller, and a landlord and tenant, for which 
adequate resolution mechanisms do not exist may be of relatively 
small social or economic magnitude, but taken collectively such 
disputes are of enormous social and economic consequence; 
(4) there is a lack of necessary resources or expertise in many 
areas of the Nation to develop new or improved consumer dispute 
resolution mechanisms, neighborhood dispute resolution mecha* 
nisms, and other necessary dispute resolution mechanisms; 
(5) the inadequacy of dispute resolution mechanisms through-
out the United States is contrary to the general welfare of die 
people; 
(6) neighborhood, local, or community based dispute resolution 
mechanisms can provide and promote expeditious, inexpensive, 
equitable, and voluntary resolution of disputes, as well £is serve 
as models for other dispute resolution mechanisms; and 
(7) the utilization of neighborhood, local, or community 
resources, including volunteers (and particularly senior citizens) 
and available building space such as space in public facilities, can 
provide for accessible, cost-effective resolution of minor disputes. 
(b) It is the purpose of this Act to assist the States and other 
interested parties m providing to all persons convenient access to 
dispute resolution mechanisms which are effective, fair, inexpensive, 
and expeditious. 
DEFINITIONS 
SEC. 3. For purposes of 
this Act— 
(1) the term "Advisory Board" means the Dispute Resolution 
Advisory Board established under section 7(a); 
(2) the term "Attorney General" means the Attorney General 
of the United States (or the designee of the Attorney Ueneral of 
the United States); 
Feb. 12, 1980 
[S. 423] 
Dispute 
Resolution Act. 
28 use app. 
28 use app. 
28 use app. 
94 STAT. 18 
PUBLIC LAW 96-190—FEB. 12, 1980 
(3) the term "Center" means the Dispute Resolution Resource 
Center established under section 6(a); 
(4) the term "dispute resolution mechanism" means— 
(A) a court with jurisdiction over minor disputes; 
(B) a forum which provides for arbitration, mediation, 
conciliation, or a similar procedure, which is available to 
resolve a minor dispute; or 
(C) a governmental agency or mechanism with the objec-
tive of resolving minor disputes; 
(5) the term "grant recipient" means any State or local 
government, any State or local governmental agency, and any 
nonprofit organization which receives a grant under section 8; 
(6) the term "local" means of or pertaining to any political 
subdivision of a State; and 
(7) the term "State" means the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, or any of the 
territories and possessions of the United States. 
CRITERIA FOR DISPUTE RESOLUTION MECHANISMS 
28 use app. 
ggc 4 Any grant recipient which desires to use any fmancial 
assistance received under this Act in connection with establishing or 
maintaining a dispute resolution m.echanism shall provide satisfac-
tory assurances to the Attorney General that the dispute resolution 
mechanism will provide for— 
(1) assistance to persons using the dispute resolution mecha-
nism; 
(2) the resolution of disputes at times and locations which are 
convenient to persons the dispute resolution mechanism is 
intended to serve; 
(3) adequate arrangements for participation by persons who 
are limited by language barriers or other disabilities; 
(4) reasonable, fair, and readily understandable forms, rules, 
and procedures, which shall include, where appropriate, those 
which would— 
(A) ensure that all parties to a dispute are directly in-
volved in the resolution of the dispute, and that the resolu-
tion is adequately implemented; 
(B) promote, where feasible, the voluntary resolution of 
disputes (including the resolution of disputes by the parties 
before resorting to the dispute resolution mechanism estab-
lished by the grant recipient); 
(C) promote the resolution of disputes by persons not 
ordinarily involved in the judicial system; 
(D) provide an easy way for any person to determine the 
proper name in which, and the proper procedure by which, 
any person may be made a party to a dispute resolution 
proceeding; 
(E) permit the use of dispute resolution mechanisms by the 
business community if State law so permits; and 
(F) ensure reasonable privacy protection for individuals 
involved in the dispute resolution process; 
(5) the dissemination of information relating to the avail-
ability, location, and use of other redress mechanisms in the 
event that dispute resolution efforts fail or the dispute involved 
does not come within the jurisdiction of the dispute resolution 
mechanism; 
PUBLIC LAW 96-190—FEB. 12, 1980 
94 STAT. 19 
(6) consultation and cooperation with the community and with 
governmental agencies; and 
(7) the establishment of programs or procedures for effectively, 
economically, and appropriately communicating to dispu-
tants the availability and location of the dispute resolution 
mechanism. 
DEVELOPMENT OF DISPUTE RESOLUTION MECHANISMS 3Y STATES 
SEC. 5. Each State is hereby encouraged to develop— 
(1) sufficient numbers and types of readily available dispute 
resolution mechanisms which meet the criteria established in 
section 4; and 
(2) a public information program which effectively communi-
cates to potential users the availability and location of such 
dispute resolution mechanisms. 
28 u s e app. 
Public 
information 
program. 
ESTABUSHMENT OF PROGRAM; DISPUTE RESOLUTION RESOURCE CENTER 
SEC. 6. (a) The Attorney General shall establish a Dispute Resolu- 28 use app. 
tion Program in the Department of Justice. Such program shall 
include establishment of a Dispute Resolution Resource Center and a 
Dispute Resolution Advisory Board and the provision of financial 
assistance under section 8. 
(b) The Center— 
Functions. 
(1) shall serve as a national clearinghouse for the exchange of 
information concerning the improvement of existing dispute 
resolution mechanisms and the establishment of new dispute 
resolution mechanisms; 
(2) shall provide technical assistance to State and local govern-
ments and to grant recipients to improve existing dispute 
resolution mechanisms and to establish new dispute resolution 
mechanisms; 
(3) shall conduct research relating to the improvement of 
existing dispute resolution mechanisms and to the establishment 
of new dispute resolution mechanisms, and shall encourage the 
development of new dispute resolution mechanisms; 
(4) shall undertake comprehensive surveys of the various State Surveys. 
and local governmental dispute resolution mechanisms and 
major privately operated dispute resolution mechanisms in the 
States, which shall determine— 
(A) the nature, number, and location of dispute resolution 
mechanisms in each State; 
(B) the annual expenditure and operating authority for 
each such mechanism; 
(C) the existence of any program for informing the poten-
tial users of the availability of each such mechanism; 
(D) an assessment of the present use of, and projected 
demand for, the services offered by each such mechanism; 
and 
(E) other relevant data relating to the types of disputes 
addressed by each such mechanism including the average 
cost and time expended in resolving various types of 
disputes; 
(5) shall identify, after consultation with the Advisory Board, 
those dispute resolution mechanisms or aspects thereof which— 
(A) are most fair, expeditious, and inexpensive to ail 
parties in the resolution of disputes; and 
94 STAT. 20 
PUBLIC LAW 96-190—FEB. 12, 1980 
Grants and 
contracts. 
Detailed Federal 
employees. 
Travel expenses 
and allowances. 
(B) are suitable for general adoption; 
(6) shall make recommendations, after consultation with the 
Advisory Board, regarding the need for new or improved dispute 
resolution mechanisms and similar mechanisms; 
(7) shall identify, after consultation with the Advisory Board, 
the types of minor disputes which are most amenable to resolu-
tion through specific dispute resolution techniques, in order to 
assist the Attorney General in determining the types of projects 
which shall receive financial assistance under section 8; 
(8) shall, as soon as practicable after the date of the enactment 
of this Act, undertake an information program to advise poten-
tial grant recipients, and the chief executive officer, attorney 
general, and chief judicial officer of each State, of the availability 
of funds, and eligibility requirements, under this Act; 
(9) may make grants to, or enter into contracts with, to the 
extent or in such amounts as are provided in appropriation Acts, 
public agencies, institutions of higher education, and qualified 
persons to conduct research, demonstrations, or special projects 
designed to carry out the provisions of paragraphs (1) through (7); 
and 
(10) in awarding such grants and entering into such contracts, 
shall have as one of its major priorities dispute resolution 
mechanisms that resolve consumer disputes. 
(c) Upon request of the Center, the Community Relations Service of 
the Department of Justice and the Federal Mediation and Concilia-
tion Service are authorized to assist the Center in performing its 
functions under this section. 
(d) Upon the request of the Attorney General, not more than a total 
of ten Federal employees from the various executive agencies (as 
defined in section 105 of title 5, United States Code) may be detailed 
to the Center to assist the Center to perform its functions under this 
Act. The head of any such agency, with the consent of the employee 
concerned, may enter into an agreement with the Attorney General 
to provide for the detail of any employee of his agency for a period of 
not more than five years, notwithstanding the time limitation con-
tained in section 3341 of title 5, United States Code. An employee 
detailed under this section is considered, for the purpose of preserv-
ing his allowances, privileges, rights, seniority, and other benefits, an 
employee of the agency from which detailed. Such employee is 
entitled to pay, allowances, and other benefits from funds available to 
the agency from which such employee is detailed, except that the 
Department of Justice shall pay to such employee all travel expenses 
and allowances payable for services performed during the detail. 
DISPUTE RESOLUTION ADVISORY BOARD 
28 use app. 
SEC. 7. (a) The Attorney General shall establish a Dispute 
Resolution Advisory Board in the Department of Justice. 
Functions. 
(b) The Advisory Board shall— 
(1) advise the Attorney General with respect to the administra-
tion of the Center under section 6 and the administration of the 
financial assistance program under section 8; 
(2) consult with the Center in accordance with the provisions of 
section 6(b)(5), section 6(b)(6), and section 6(b)(7); and 
(3) consult with the Attorney General in accordance with the 
provisions of sections 80b)(4) and 9(d). 
Membership. 
(c)(1) The Advisory Board shall consist of nine members appointed 
by the Attorney General, and shall be composed of persons from State 
PUBLIC LAW 96-190—FEB. 12, 1980 
94 STAT. 21 
governments, local governments, business organizations, the aca-
demic or research community, neighborhood organizations, commu-
nity organizations, consumer organizations, the legal profession, and 
State courts. 
(2) A vacancy in the Advisory Board shall be filled in the same 
manner as the original appointment. 
(3)(A) Except as provided in subparagraph (B), members of the 
Advisory Board shall be appointed for terms which expire at the end 
ofSeptemberSO, 1984. 
(B) Any member appointed to fill a vacancy occurring before the 
expiration of the term for which the predecessor of such member was 
appointed shall be appointed only for the remainder of the term. 
(d) While away from their homes or regular places of business in 
the performance of services for the Advisory Board, members of the 
Advisory Board shall be allowed travel expenses, including per diem 
in lieu of subsistence, in the same manner as persons employed 
intermittently in the Federal Government service are allowed 
expenses under section 5703 of title 5, United States Code. The 
members of the Advisory Board shall receive no compensation for 
their services except as provided in this subsection. 
(e) The Chairman of the Federal Trade Commission may advise and 
consult with the Attorney General, and may consult with the Center, 
regarding matters within its jurisdiction. 
Vacancies. 
Terms. 
Travel expenses 
and per diem. 
Grant 
applications. 
FINANCIAL ASSISTANCE 
SEC. 8, (a) The Attorney General may provide financial assistance 28 use app 
in the form of grants to applicants who have submitted, in accordance 
with subsection (c), applications for the purpose of improving existing 
dispute resolution mechanisms or establishing new dispute resolu-
tion mechanisms, 
O
t
>
) As soon as practicable after the date of the enactment of this 
Act, the Attorney General shall prescribe— 
(1) the form and content of applications for financial assistance 
to be submitted in accordance with subsection (c); 
(2) the time schedule for submission of such applications; 
(3) the procedures for approval of such applications, and for 
notification to each State of financial assistance awarded to 
applicants in the State for any fiscal year; 
(4) after consultation with the Advisory Board, the specific 
criteria for awarding grants to applicants under this section, 
which shall— 
(A) be consistent with the criteria established in section 4; 
(B) take into account— 
(i) the population and population density of the States 
in which applicants for financial assistance available 
under this section are located; 
(ii) the financial need of States and localities in which 
such applicants are located; 
(iii) the need in the State or locality involved for the 
t3T)e of dispute resolution mechanism proposed; 
(iv) the national need for experience with the t3rpe of 
dispute resolution mechanism proposed; and 
(v) the need for obtaining experience in each region of 
the Nation with dispute resolution mechanisms in a 
diversity of situations, including rural, suburban, and 
urban situations; and 
Development of 
criteria. 
94 STAT. 22 
PUBLIC LAW 96-190—FEB. 12, 1980 
Reports. 
Publication in 
Federal 
Register. 
Application 
contents. 
Use of assistance 
funds. 
(C) provide that one of the major priorities of the Attorney 
General shall be the funding of dispute resolution mecha-
nisms that resolve consumer disputes; 
(5)(A) the form and content of such reports to be filed under 
this section as may be reasonably necessary to monitor compli-
ance with the requirements of this Act and to evaluate the 
effectiveness of projects funded under this Act; and 
(B) the procedures to be followed by the Attorney General in 
reviewing such reports; 
(6) the manner in which financial assistance received under 
this section may be used, consistent with the purposes specified 
in subsection (e); and 
(7) procedures for publishing in the Federal Register a notice 
and summary of approved applications. 
(c) Any State or local government, State or local governmental 
agency, or nonprofit organization shall be eligible to receive a grant 
for financial assistance under this section. Any such entity which 
desires to receive a grant under this section may submit an applica-
tion to the Attorney General in accordance with the specific criteria 
established by the Attorney General under subsection (b)(4). Such 
application shall— 
(1) set forth a proposed plan demonstrating the manner in 
which the financial assistance will be used— 
(A) to establish a new dispute resolution mechanism which 
satisfies the criteria specified in section 4; or 
(B) to improve an existing dispute resolution mechanism 
in order to bring such mechanism into compliance with such 
criteria; 
(2) set forth the types of disputes to be resolved by the dispute 
resolution mechanism; 
(3) identify the person responsible for administering the proj-
ect set forth in the application; 
(4) include an estimate of the cost of the proposed project; 
(5) provide for the establishment of fiscal controls and fund 
accounting of Federal financial assistance received under this 
Act; 
(6) provide for the submission of reports in such form and 
containing such information as the Attorney General may re-
quire under subsection (b)(5)(A); 
(7) set forth the nature and extent of participation of interested 
parties, including representatives of those individuals whose 
disputes are to be resolved by the mechanism, in the develop-
ment of the application; and 
(8) describe the qualifications, period of service, and duties of 
persons who will be charged with resolving or assisting in the 
resolution of disputes. 
(d) The Attorney General, in determining whether to approve any 
application for financial assistance to carry out a project under this 
section, shall give special consideration to projects which are likely to 
continue in operation after expiration of the grant made by the 
Attorney General. 
(e)(1) Financial assistance available under this section may be used 
only for the following purposes— 
(A) compensation of personnel engaged in the administration, 
adjudication, conciliation, or settlement of minor disputes, 
including personnel whose function is to assist in the preparation 
and resolution of claims and the collection of judgments; 
PUBLIC LAW 96-190—FEB. 12, 1980 
94 STAT. 23 
(B) recruiting, organizing, training, and educating personnel 
described in subparagraph (A); 
(C) improvement or leasing of buildings, rooms, and other 
facilities and equipment and leasing or purchase of vehicles 
needed to improve the settlement of minor disputes; 
(D) continuing monitoring and study of the mechanisms and 
settlement procedures employed in the resolution of minor 
disputes in a State; 
(E) research and development of effective, fair, inexpensive, 
and expeditious mechanisms and procedures for the resolution of 
minor disputes; 
(F) sponsoring programs of nonprofit organizations to carry out 
any of the provisions of this paragraph; and 
(G) other necessary expenditures directly related to the oper-
ation of new or improved dispute resolution mechanisms. 
(2) Financial assistance available under this section may not be 
used for the compensation of attorneys for the representation of 
disputants or claimants or for otherwise providing assistance in any 
adversary capacity. 
(f)(1) In the case of an application for financial assistance under this 
section submitted by a local government or governmental agency, the 
Attorney General shall furnish notice of such application to the chief 
executive officer, attorney general, and chief judicial officer of the 
State in which such applicant is located at least thirty days before the 
approval of such application. The chief executive officer, attorney 
general, and chief judicial officer of the State shall be given an 
opportunity to submit written comments to the Attorney General 
regarding such application and the Attorney General shall take such 
comments into consideration in determining whether to approve such 
application. 
(2) In the case of an application for financial assistance under this 
section submitted by a nonprofit organization, the Attorney General 
shall furnish notice of such application to the chief executive officer, 
attorney general, and chief judicial officer of the State in which the 
applicant is located and to the chief executive officers of the units of 
general local government in which such applicant is located at least 
thirty days before the approval of such application. The chief execu-
tive officer, attorney general, and chief judicial officer of the State, 
and the chief executive officers of the units of general local govern-
ment shall be given an opportunity to submit written comments to 
the Attorney General regarding such application and the Attorney 
General shall take such comments into consideration in determining 
whether to approve such application. 
(g)(1) Upon the approval of an application by the Attorney General 
under this section, the Attorney General shall disburse to the grant 
recipient involved such portion of the estimated cost of the approved 
project as the Attorney General considers appropriate, except that 
the amount of such disbursement shall be subject to the provisions of 
paragraph (2). 
(2) The Federal share of the estimated cost of any project approved 
under this section shall not exceed— 
(A) 100 per centum of the estimated cost of the project, for the 
first and second fiscal years for which funds are available for 
grants under this section; 
(B) 75 per centum of the estimated cost of the project, for the 
third fiscal year for which funds are available for such grants; 
and 
Restriction on 
financial 
assistance. 
Notice of 
application to 
State officers. 
Estimated 
project cost, 
disbursement. 
Federal share. 
94 STAT. 24 
PUBLIC LAW 96-190—FEB. 12, 1980 
Payments. 
Notice and 
hearing on 
project 
compliance. 
Independent 
study, contract. 
Report to 
Congress. 
(C) 60 per centum of the estimated cost of the project, for the 
fourth fiscal year for which funds are available for such grants. 
(3) Payments made under this subsection may be made in install-
ments, in advance, or by way of reimbursement, with necessary 
adjustments on account of underpayment or overpayment. Such 
payments shall not be used to compensate for any administrative 
expense incurred in submitting an application for a grant under this 
section. 
(4) In the case of any State or local government, or State or local 
governmental agency, which desires to receive financial assistance 
under this section, such government or agency may not receive any 
such financial assistance for any fiscal year if its expenditure of non-
Federal funds for other than nonrecurrent expenditures for the 
establishment and administration of dispute resolution mechanisms 
will be less than its expenditure for such purposes in the preceding 
fiscal year, unless the Attorney General determines that a reduction 
in expenditures is reasonable. 
(h) Whenever the Attorney General, after giving reasonable notice 
and opportunity for hearing to any grant recipient, finds that the 
project for which such grant was received no longer complies with the 
provisions of this Act, or with the relevant application as approved by 
the Attorney General, the Attorney General shall notify such grant 
recipient of such findings and no further payments may be made to 
such grant recipient by the Attorney General until the Attorney 
General is satisfied that such noncompliance has been, or promptly 
will be, corrected. The Attorney General may authorize the continu-
ance of payments with respect to any program pursuant to this Act 
which is being carried out by such grant recipient and which is not 
involved in the noncompliance. 
(i) The Attorney General, to the extent or in such amounts as are 
provided in appropriation Acts shall enter into a contract for an 
independent study of the Dispute Resolution Program. The study 
shall evaluate the performance of such program and determine its 
effectiveness in carrying out the purpose of this Act. The study shall 
contain such recommendations for additional legislation as may be 
appropriate, and shall include recommendations concerning the 
continuation or termination of the Dispute Resolution Program. Not 
later than April 1, 1984, the Attorney General shall make public and 
submit to each House of the Congress a report of the results of the 
study. 
(j) No funds for assistance available under this section shall be 
expended until one year after the date of the enactment of this Act. 
28 u s e app. 
Restriction on 
Attorney 
General's 
authority. 
RECORDS; AUDIT; ANNUAL REPORT 
SEC, 9. (a) Each grant recipient shall keep such records as the 
Attorney General shall require, including records which fully dis-
close the amount and disposition by such grant recipient of the 
proceeds of such assistance, the total cost of the project or undertak-
ing in connection with which such assistance is given or used, the 
amount of that portion of the project or undertaking supplied by 
other sources, and such other records as will assist in effective 
financial and performance audits. 
O
t
>
) The Attorney General shall have access for purposes of audit 
and examination to any relevant books, documents, papers, and 
records of grant recipients. The authority of the Attorney General 
under this subsection is restricted to compiling information neces-
sary to the filing of the annual report required under this section. No 
PUBLIC LAW 96-190—FEB. 12, 1980 
94 STAT. 25 
information revealed to the Attorney General pursuant to such audit 
and examination about an individual or business which has utilized 
the dispute resolution mechanism of a grant recipient may be used in, 
or disclosed for, any administrative, civil, or criminal action or 
investigation against the individual or business except in an action or 
investigation arising out of and directly related to the program being 
audited and examined. 
(c) The Comptroller General of the United States, or any duly 
authorized representatives of the Comptroller General, shall have 
access to any relevant books, documents, papers, and records of grant 
recipients until the expiration of three years after the final year of 
the recipient of any financial assistance under this Act, for the 
purpose of financial and performance audits and examination. 
(d) The Attorney General, in consultation with the Advisory Board 
shall submit to the President and the Congress not later than one 
year after the date of the enactment of this Act, and on or before 
February 1 of each succeeding year, a report relating to the adminis-
tration of this Act during the preceding fiscal year. Such report shall 
include— 
(1) a list of all grants awarded; 
(2) a summary of any actions undertaken in accordance with 
section 8(h); 
(3) a listing of the projects undertaken during such fiscal year 
and the types of other dispute resolution mechanisms which are 
being created, and, to the extent feasible, a statement as to the 
success of all mechanisms in achieving the purpose of this Act; 
(4) the results of financial and performance audits conducted 
under this section; and 
(5) an evaluation of the effectiveness of the Center in imple-
menting this Act, including a detailed analysis of the extent to 
which the purpose of this Act has been achieved, together with 
recommendations with respect to whether and when the pro-
gram should be terminated and any recommendations for addi-
tional legislation or other action. 
Access to records 
by Comptroller 
General. 
Report to 
President and 
Congress. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 10. (a) To carry out the provisions of section 6 and section 7, 
there is authorized, to be appropriated to the Attorney General 
$1,000,000 for each of the fiscal years 1980,1981,1982,1983, and 1984. 
Ot)) To carry out the provisions of section 8, there is authorized to be 
appropriated to the Attorney General $10,000,000 for each of the 
fiscal years 1981,1982,1983, and 1984. 
28 u s e app. 
94 STAT. 26 
PUBLIC LAW 96-190—FEB. 12, 1980 
(c) Sums appropriated under this section are authorized to remain 
available until expended. 
Approved February 12, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT: No. 96-492, Pt. 1 (Comm. on Interstate and Foreign Commerce) and 
Pt. 2 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Apr. 5, considered and passed Senate. 
Dec. 10-12, considered and passed House, amended. 
Vol. 126 (1980): Jan. 30, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 16, No. 7 (1980): Feb. 12, Presidential statement.