Texas 2023 - 88th Regular

Texas House Bill HB3949 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 3949
2	2
3	3
4	4	AN ACT
5	5	relating to arbitration of certain controversies involving members
6	6	of certain nonprofit entities.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. The heading to Chapter 173, Civil Practice and
9	9	Remedies Code, is amended to read as follows:
10	10	CHAPTER 173. ARBITRATION OF CERTAIN CONTROVERSIES INVOLVING
11	11	[BETWEEN] MEMBERS OF CERTAIN NONPROFIT ENTITIES
12	12	SECTION 2. Section 173.002, Civil Practice and Remedies
13	13	Code, is amended to read as follows:
14	14	Sec. 173.002. SCOPE OF CHAPTER. (a) This chapter applies
15	15	only to the arbitration of a controversy between members of an
16	16	association or corporation or between a corporation and its members
17	17	if the association or corporation [that] is:
18	18	(1) exempt from the payment of federal income taxes
19	19	under Section 501(a) of the Internal Revenue Code of 1986 by being
20	20	listed as an exempt organization under Section 501(c) of the code;
21	21	or
22	22	(2) incorporated under:
23	23	(A) the Texas Non-Profit Corporation Act
24	24	(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes); or
25	25	(B) Subchapter C, Chapter 23, Business
26	26	Organizations Code.
27	27	(b) This chapter does not apply to the arbitration of a
28	28	controversy between:
29	29	(1) members of:
30	30	(A) a property owners' association, as defined by
31	31	Section 209.002, Property Code;
32	32	(B) a condominium council of owners, as defined
33	33	by Section 81.002, Property Code; or
34	34	(C) a condominium unit owners' association
35	35	organized under Section 82.101, Property Code; or
36	36	(2) an association or council of owners described by
37	37	Subdivision (1) and a member of that association or council of
38	38	owners.
39	39	SECTION 3. Section 173.003(c), Civil Practice and Remedies
40	40	Code, is amended to read as follows:
41	41	(c) A provision in the bylaws of a nonprofit corporation
42	42	incorporated under the Texas Non-Profit Corporation Act (Article
43	43	1396-1.01 et seq., Vernon's Texas Civil Statutes) or under
44	44	Subchapter C, Chapter 23, Business Organizations Code, that
45	45	requires a member of the corporation to arbitrate at common law a
46	46	controversy that subsequently arises between members or between the
47	47	corporation and its members is a valid, enforceable, and
48	48	irrevocable agreement by a member of the corporation to arbitrate
49	49	the controversy.
50	50	SECTION 4. The changes in law made by this Act apply only to
51	51	a controversy arising on or after the effective date of this Act. A
52	52	controversy arising before the effective date of this Act is
53	53	governed by the law in effect on the date the controversy arose, and
54	54	that law is continued in effect for that purpose.
55	55	SECTION 5. This Act takes effect immediately if it receives
56	56	a vote of two-thirds of all the members elected to each house, as
57	57	provided by Section 39, Article III, Texas Constitution. If this
58	58	Act does not receive the vote necessary for immediate effect, this
59	59	Act takes effect September 1, 2023.
60	60	______________________________ ______________________________
61	61	President of the Senate Speaker of the House
62	62	I certify that H.B. No. 3949 was passed by the House on May
63	63	11, 2023, by the following vote: Yeas 142, Nays 1, 2 present, not
64	64	voting.
65	65	______________________________
66	66	Chief Clerk of the House
67	67	I certify that H.B. No. 3949 was passed by the Senate on May
68	68	24, 2023, by the following vote: Yeas 31, Nays 0.
69	69	______________________________
70	70	Secretary of the Senate
71	71	APPROVED: _____________________
72	72	Date
73	73	_____________________
74	74	Governor