88R16041 TYPED
By: Raney H.B. No. 3949
A BILL TO BE ENTITLED
AN ACT
relating to the arbitration of a controversy between members of an
association or corporation and between an association or
corporation and its members.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.002, Civil Practice and Remedies Code, is
amended by adding to subsection (2) to read as follows:
"(2) incorporated under the Texas Non-Profit Corporation Act
(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or a
nonprofit corporation incorporated under Articles 1399-1407
Revised Civil Statutes."
SECTION 2. Section 173.003, Civil Practice and Remedies Code, is
amended by adding to Subsection (c) to read as follows:
(c) A provision in the bylaws of a nonprofit corporation
incorporated under the Texas Non-Profit Corporation Act (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes) or a nonprofit
corporation incorporated under Articles 1399-1407 Revised Civil
Statutes that requires a member of the corporation to arbitrate at
common law a controversy that subsequently arises between members,
or between the corporation and its members, is a valid,
enforceable, and irrevocable agreement by a member of the
corporation to arbitrate the controversy.
SECTION 3. If any provision of this Act or its application to any
person or circumstance is held invalid, the invalidity does not
affect other provisions or applications of this Act that can be
given effect without the invalid provision or application, and to
this end the provisions of this Act are declared to be severable.
SECTION 4. This Act takes effect immediately if it receives a vote
of two-thirds of all the members elected to each house, as provided
by Section 39, Article III, Texas Constitution. If this Act does
not receive the vote necessary for immediate effect, this Act takes
effect on the 91st day after the last day of the legislative
session.
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