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.