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A BILL TO BE ENTITLED
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AN ACT
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relating to the arbitration of a controversy between members of an |
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association or corporation and between an association or |
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corporation and its members. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.002, Civil Practice and Remedies Code, is |
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amended by adding to subsection (2) to read as follows: |
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"(2) incorporated under the Texas Non-Profit Corporation Act |
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(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or a |
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nonprofit corporation incorporated under Articles 1399-1407 |
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Revised Civil Statutes." |
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SECTION 2. Section 173.003, Civil Practice and Remedies Code, is |
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amended by adding to Subsection (c) to read as follows: |
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(c) A provision in the bylaws of a nonprofit corporation |
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incorporated under the Texas Non-Profit Corporation Act (Article |
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1396-1.01 et seq., Vernon's Texas Civil Statutes) or a nonprofit |
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corporation incorporated under Articles 1399-1407 Revised Civil |
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Statutes that requires a member of the corporation to arbitrate at |
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common law a controversy that subsequently arises between members, |
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or between the corporation and its members, is a valid, |
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enforceable, and irrevocable agreement by a member of the |
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corporation to arbitrate the controversy. |
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SECTION 3. If any provision of this Act or its application to any |
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person or circumstance is held invalid, the invalidity does not |
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affect other provisions or applications of this Act that can be |
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given effect without the invalid provision or application, and to |
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this end the provisions of this Act are declared to be severable. |
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SECTION 4. This Act takes effect immediately if it receives a vote |
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of two-thirds of all the members elected to each house, as provided |
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by Section 39, Article III, Texas Constitution. If this Act does |
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not receive the vote necessary for immediate effect, this Act takes |
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effect on the 91st day after the last day of the legislative |
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session. |
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______________________________ ______________________________ |