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1 a statement of such determination. The clerk promptly shall

2 refer any

such case to arbitration and in no event more

3 than one hundred and twenty days after such determination.

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"(b) The arbitration shall be conducted before a panel

5 of three arbitrators, unless the parties agree to have it 6 conducted before a single arbitrator. The parties may by 7 agreement select any person or persons to conduct the 8 arbitration. If, within seven days after the action has been 9 referred to arbitration, the parties have not notified the 10 clerk of the court that they have made such a selection, the 11 arbitrator or arbitrators shall be chosen by the clerk by a 12 process of random selection from among the persons certified 13 by the court.

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"(c) A person selected to be an arbitrator shall be 15 disqualified for bias or prejudice as provided in section 144 16 and shall disqualify himself in any action in which he would 17 be required under section 455 to disqualify himself if he 18 were a justice, judge, magistrate, or referee in bankruptcy. 19 "§ 646. Arbitration hearing

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"(a) The arbitration hearing shall commence not later 21 than thirty days after the action is referred to arbitration 22 and shall be concluded promptly.

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"(b) Rule 45 of the Federal Rules of Civil Procedure 24 shall apply to subpenas for attendance of witnesses and the 25 production of documentary evidence at an arbitration hearing

1 under this chapter. The arbitrators shall have the power 2 to administer oaths and affirmations.

3 "(c) The Federal Rules of Evidence may be used as 4 guides to the admissibility of evidence in an arbitration 5 hearing. Notwithstanding the provisions of the Federal 6 Rules of Evidence, relevant evidence that is not privileged 7 may be admitted in an arbitration hearing.

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"(d) A party may have a recording and transcript made 9 of the arbitration hearing at his expense. If a party has a 10 transcript or a tape recording made, he shall furnish a copy 11 of the transcript or tape recording without charge to any 12 other party.

13 "§ 647. Arbitration award and judgment

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"The arbitration award shall be filed with the court 15 promptly after the hearing is concluded and shall be entered 16 as the judgment of the court after the time for requesting a 17 trial de novo pursuant to section 648 has expired, unless a 18 party demands a trial de novo before the court pursuant to 19 that section. The judgment so entered shall be subject to the 20 same provisions of law, and shall have the same force and 21 effect, as a judgment of the court in a civil action, except 22 that it shall not be subject to appeal.

23 "§ 648. Trial de novo

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"(a) Within twenty days after the filing of the arbitra

1 tion award with the court, any party may demand a trial

2 de novo in the district court.

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"(b) Upon a demand for a trial de novo, the action shall

4 be placed in the calendar of the court and treated for all 5 purposes as if it had not been referred to arbitration, and 6 any right of trial by jury that a party would otherwise have 7 shall be preserved inviolate.

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"(c) At the trial de novo the court shall not admit 9 evidence that there had been an arbitration proceeding, the 10 nature or amount of the award, or any other matter con11 cerning the conduct of the arbitration proceeding, except 12 that testimony given at an arbitration hearing may be used 13 for impeachment at a trial de novo.

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"(d) If the party who demanded a trial de novo fails 15 to obtain a judgment in the district court, exclusive of interest 16 and costs, more favorable to him than the arbitration award, 17 he shall be assessed the costs of the arbitration proceeding, 18 including the amount of the arbitration fees, and—

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"(1) if he is a plaintiff and the arbitration award were in his favor, he shall pay to the court an amount equivalent to interest on the arbitration award from the

time it was filed; or

"(2) if he is a defendant, he shall pay to the plain

tiff interest on the arbitration award from the time it was filed.

1 "8649. Definitions

2 "As used in this chapter

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"(a) ‘Judicial Conference' means the Judicial Conference of the United States;

"(b) 'district court' means a district court created

under chapter 5 of this title and the United States Dis

trict Court for the District of the Canal Zone, the District Court of Guam, and the District Court of the Virgin Islands;

"(c) 'Director' means the Director of the Administrative Office of the United States Courts;

"(d) 'arbitrator' means an arbitrator certified pursuant to section 642 to conduct arbitration pursuant to this chapter; and

"(e) the United States is a party to a civil action if it is a party directly, or through its agency or department, or through its officer or employee in his official capacity.".

(b) The analysis at the beginning of part III of title 20 28, United States Code, is amended by adding after the item 21 relating to chapter 43 the following new item:

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"44. Arbitration.".

(c) The analysis at the beginning of title 28, United

23 States Code, is amended by adding after the item relating to 24 chapter 43 the following new item:

30-434 - 78 - 2

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"44. Arbitration

651".

SEC. 4. Section 202 (a) of title 18, United States Code,

2 is amended by deleting the words "a part-time United 3 States Commissioner" and inserting in lieu thereof the words 4 "an arbitrator certified pursuant to section 642 of title 28". SEC. 5. Arbitration in accordance with the provisions of 6 chapter 44 of title 28, United States Code, shall be imple7 mented on a test basis pursuant to this section for three years 8 in no fewer than five nor more than eight representative 9 districts to be designated by the Chief Justice of the United 10 States, after consultation with the Attorney General. The 11 selection of test districts shall be made on the basis of con12 siderations such as the number of civil and criminal cases 13 filed and tried annually in the district, the case backlog in 14 the district, the number of civil cases that would be referred 15 to arbitration that are filed and tried annually in the district, 16 the number of district court judges and magistrates sitting 17 in the district, and the geographical location of the district. SEC. 6. The Judicial Conference of the United States is

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19 authorized to develop model procedures consistent with the 20 provisions of this Act for the conduct of arbitration proceed21 ings under this Act.

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SEC. 7. (a) The Federal Judicial Center shall advise

23 and consult with the Judicial Conference of the United

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