By Chisum H.B. No. 3464
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the enforcement and validity of certain out-of-state
1-3 transactions and associations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter D, Chapter 35, Business & Commerce
1-6 Code, is amended by adding Section 35.49 to read as follows:
1-7 Sec. 35.49. PROHIBITED OUT-OF-STATE CONTRACTS. (a) A
1-8 contract entered into in another state for the provision of goods
1-9 or services may not be enforced in this state if providing the
1-10 goods or services would violate the law of this state or is against
1-11 the public policy of this state.
1-12 (b) A judgment that arises under a contract that was entered
1-13 into in another state to provide goods or services that is
1-14 unenforceable in this state under Subsection (a) may not be
1-15 enforced in this state.
1-16 SECTION 2. Subchapter A, Chapter 36, Business & Commerce
1-17 Code, is amended by adding Section 36.04 to read as follows:
1-18 Sec. 36.04. CERTAIN PROHIBITED OUT-OF-STATE BUSINESS
1-19 ENTITIES. A professional business association formed or
1-20 established under the laws of another state may not do business in
1-21 this state or be recognized in this state if the requirements for
1-22 the formation of the professional business association in the other
2-1 state are not substantially similar to the requirements for the
2-2 formation of a professional business association in this state.
2-3 SECTION 3. The Texas Non-Profit Corporation Act (Article
2-4 1396-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
2-5 adding Article 2.01A to read as follows:
2-6 Art. 2.01A. ACTS AGAINST PUBLIC POLICY OF STATE. A
2-7 non-profit corporation, including a charitable non-business entity,
2-8 formed under the laws of another state that seeks to operate in
2-9 this state is prohibited from operating in this state if:
2-10 (1) the non-profit corporation is formed of members
2-11 who would be ineligible to form such an entity in this state; or
2-12 (2) the purpose for which the non-profit corporation
2-13 was formed is illegal or against the public policy of this state.
2-14 SECTION 4. This Act takes effect September 1, 1997.
2-15 SECTION 5. The importance of this legislation and the
2-16 crowded condition of the calendars in both houses create an
2-17 emergency and an imperative public necessity that the
2-18 constitutional rule requiring bills to be read on three several
2-19 days in each house be suspended, and this rule is hereby suspended.