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Relating to limitations periods in arbitration proceedings.
The Legislative Budget Board does not anticipate any significant fiscal impact to the state.
HB 1744 would prevent a party from asserting a claim in an arbitration proceeding if they could not bring suit for the claim in court because of the expiration of the limitations period. The party may assert a claim in an arbitration proceeding after expiration of the applicable limitations period if they party brought suit for the claim in court before the expiration of the applicable limitations period and a court ordered the parties to arbitrate the claim. This essentially sets the limitations period for arbitration to match the limitations period for filing a lawsuit.
Texas Action supports HB 1744 because it advances the principle of limited government. A properly functioning civil court system is an essential function of a limited government. Having the same limitations periods apply to arbitration proceedings as to court proceedings ensures cohesion between the two methods of dispute resolution.