Bill Text: TX HB3949 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to arbitration of certain controversies involving members of certain nonprofit entities.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-12 - Effective immediately [HB3949 Detail]
Download: Texas-2023-HB3949-Introduced.html
Bill Title: Relating to arbitration of certain controversies involving members of certain nonprofit entities.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-12 - Effective immediately [HB3949 Detail]
Download: Texas-2023-HB3949-Introduced.html
88R16041 TYPED | ||
By: Raney | H.B. No. 3949 |
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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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