Section 206. Arbitration

(a) Threshold questions under CPLR article 75. If
  an action of which the court has jurisdiction has  been  duly  commenced
  therein,  and  there  arise in such action any questions relating to the
  arbitrability of the controversy,  the  court  shall  have  jurisdiction
  completely  to  dispose  of  such questions and CPLR article 75 shall be
  applicable thereto. But the court shall not  have  jurisdiction  of  the
  special  proceeding,  as  set  forth  in  CPLR § 7502 (a), used to bring
  before a court the  first  application  arising  out  of  an  arbitrable
  controversy, except as provided in subdivision (b).
    (b)  Proceedings  on  award under CPLR article 75. Where a controversy
  has been duly arbitrated and an award made therein is for  relief  which
  is within the court's jurisdiction, the court shall have jurisdiction of
  proceedings  under  CPLR  §§  7510  through  7514,  relating to judicial
  recognition  of  such  awards,  which  provisions  shall  be  applicable
  thereto.
    (c)  Arbitration  distinct from CPLR article 75. The rules may provide
  systems of arbitration and conciliation of  claims  within  the  court's
  jurisdiction  without  reference  to  CPLR  article  75. Where the chief
  administrator of the courts has provided  by  rule  for  an  alternative
  method of dispute resolution by arbitration and has established by order
  this arbitration program in any county in this court, applicable in each
  such  county  to  civil  actions  for  a sum of money only, except those
  commenced in small claims parts and not subsequently  transferred  to  a
  regular part of court, that on or after the effective date of such order
  are noticed for trial or commenced in this court, all such actions shall
  be heard and decided by a panel of arbitrators where the recovery sought
  for  each  cause of action is ten thousand dollars or less, exclusive of
  costs and interest.