HB5477 Summary

• Amends the Uniform Arbitration Act to establish a 20-day window for parties to challenge arbitration validity after receiving notice of intention to arbitrate, after which objections are precluded.

• Requires drafting parties in consumer and employee arbitrations to pay initiation and continuation fees within 30 days of the due date or face material breach, default, and waiver of the right to compel arbitration.

• Allows consumers or employees whose arbitration is blocked by non-payment to withdraw and proceed in court, continue arbitration if the arbitrator agrees, or compel payment through court order, with statute of limitations tolled from initial filing.

• Imposes court sanctions including monetary damages, evidence sanctions (discovery prohibition), terminating sanctions (striking pleadings or default judgment), or contempt findings against drafting parties that materially breach fee obligations.

• Clarifies that any agreement penalizing parties for retaining attorneys in arbitration is null and void, and revises venue rules to allow proceedings in counties where any party resides, does business, or where arbitration is held or pending.