78R5416 RCJ-F

By:  Oliveira                                                     H.B. No. 1637


A BILL TO BE ENTITLED
AN ACT
relating to the formation, organization, management, and records of certain business organizations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article 2.23, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended by adding Section C-1 and amending Sections D, G, and H to read as follows: C-1. Members or managers may take action at a meeting of the members or managers or without a meeting in any manner permitted by the articles of organization, regulations, or this Act. Unless otherwise provided by the articles of organization or the regulations, an action is effective if it is taken by: (1) an affirmative vote of those persons having not fewer than the minimum number of votes that would be necessary to take the action at a meeting at which all members or managers, as the case may be, entitled to vote on the action were present and voted; or (2) consent of each member of the limited liability company, which may be established by: (a) the member's failure to object to the action in a timely manner, if the member has full knowledge of the action; (b) consent to the action in writing signed by the member; or (c) any other means reasonably evidencing consent. D. Except as provided in the articles of organization or the regulations, the affirmative vote, approval, or consent of a majority of all the members is required to: (1) [change the status of the limited liability company from one in which management is reserved to the members to one in which management is vested in one or more managers, or vice versa; [(2) issue any additional membership interests in the limited liability company subsequent to the issuance of membership interests to the initial members of the limited liability company; [(3)] approve any merger, consolidation, share or interest exchange, or other transaction authorized by or subject to the provisions of Part Ten of this Act; (2) [(4)] voluntarily cause the dissolution of the limited liability company; [(5) authorize any transaction, agreement, or action on behalf of the limited liability company that is unrelated to its purpose as set forth in the regulations or articles of organization or that otherwise contravenes the regulations;] or (3) [(6)] authorize any act that would make it impossible to carry on the ordinary business of the limited liability company. G. Except as provided in the articles of organization or the regulations, if [no capital has been paid into] the limited liability company has no members, has not received any capital, and has not otherwise commenced business, a majority of the managers named in the articles of organization may amend the articles of organization or dissolve the limited liability company. Except as provided by the articles of organization or the regulations, if the limited liability company has not received any capital, the limited liability company has not otherwise commenced business, and [or if] the management has been reserved to the members, a majority of the members named in the articles of organization may amend the articles of organization or dissolve the limited liability company. In such event, the persons adopting such amendments to the articles of organization or authorizing such dissolution shall sign and file with the Secretary of State the articles of amendment provided for in Articles 3.06 and 3.07 of this Act and the articles of dissolution provided for in Articles 6.05, 6.07, and 6.08 of this Act, as appropriate. H. Except as provided in the articles of organization or the regulations, if any capital has been paid into the limited liability company or the limited liability company has otherwise commenced business, the affirmative vote, approval, or consent of all members is required to amend the articles of organization. SECTION 2. Article 4.01, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: Art. 4.01. ADMISSION OF MEMBERS AND ISSUANCE OF MEMBERSHIP INTERESTS. A. A limited liability company may have one or more members. In connection with the formation of a limited liability company, a person [acquiring an interest as a member] becomes a member on the latter of: (1) the date of formation of the limited liability company; or (2) the date stated in the records of the limited liability company as the date that the person becomes a member or, if no date is stated in those records, on the date that the person's admission is first reflected in the records of the limited liability company. B. After the formation of a limited liability company, a person becomes a new member: (1) in the case of a person who is not an assignee of a membership interest, including a person acquiring a membership interest directly from the limited liability company and a person to be admitted as a member of the limited liability company without acquiring a membership interest, on compliance with the provisions of the regulations governing admission of new members or, if the regulations contain no relevant admission provisions, on the written consent of all members; and (2) in the case of an assignee of a membership interest, as provided by Section A of Article 4.07 of this Act. B-1. After the formation of a limited liability company, the limited liability company may issue a membership interest in the limited liability company to a person on compliance with the provisions of the regulations governing issuance of membership interests or, if the regulations contain no relevant issuance provisions, upon the consent of all members. B-2. (1) The regulations may provide that a person may be admitted as a member of a limited liability company and acquire a membership interest in the limited liability company, including a person who will be the sole member, without: (a) making a contribution to the limited liability company; or (b) assuming an obligation to make a contribution to the limited liability company. (2) If one or more persons own a membership interest in a limited liability company, the regulations may provide that a person may be admitted to the limited liability company as a member without acquiring a membership interest in the limited liability company. C. Any person may be a member unless the person lacks capacity apart from this Act. SECTION 3. Article 5.02-1, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: Art. 5.02-1. ALLOCATION OF PROFITS AND LOSSES. A. The profits and losses of a limited liability company shall be allocated among the members and among classes of members in the manner provided in the regulations. If the regulations do not otherwise provide, the profits and losses shall be allocated on the basis of the agreed value of the contributions made by each member, as [in accordance with the then current percentage or other interest in the limited liability company of the members] stated in limited liability company records of the kind described in Section A of Article 2.22 of this Act. SECTION 4. Article 5.05, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: Art. 5.05. WITHDRAWAL OR EXPULSION OF MEMBER. A. A member may withdraw or be expelled from a limited liability company only at the time or on the occurrence of events specified in the regulations. SECTION 5. Article 6.01, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: Art. 6.01. DISSOLUTION. A. Except as provided by Section B or C of this Article, a limited liability company shall be dissolved on the first of the following to occur: (1) the period, if any, fixed for the duration of the limited liability company expires; (2) the occurrence of events specified in the articles of organization or regulations to cause dissolution; (3) the action of the members to dissolve the limited liability company; (4) if no capital has been paid into the limited liability company and the limited liability company has not otherwise commenced business, the act of a majority of the managers or members named in the articles of organization to dissolve the limited liability company as provided by Section G of Article 2.23 of this Act; (5) except as otherwise provided in the regulations, [upon the death, expulsion, withdrawal pursuant to or as provided in the articles of organization or regulations, bankruptcy, or dissolution of a member or] the occurrence of any [other] event that [which] terminates the continued membership of the last remaining [a] member of [in] the limited liability company; or (6) entry of a decree of judicial dissolution under Section 6.02 of this Act. B. A limited liability company is not dissolved if an event of dissolution described by Subsection (1) or [,] (2)[, or (5)] of Section A of this Article occurs, there is at least one remaining member, and the business of the limited liability company is continued by the vote of the members or class as stated in the articles of organization or regulations of the limited liability company, or if not so stated, by all remaining members. Unless otherwise provided in the articles of organization or in the regulations, an election to continue the business of the limited liability company must be made within 90 days after the date of the occurrence of the event of dissolution. If an election to continue the business of the limited liability company is made following the termination of the period fixed for the duration of the limited liability company or the occurrence of events specified in the articles of organization to cause dissolution, the election is not effective unless an appropriate amendment is made by the limited liability company to its articles of organization during the three-year period following the date of the event of dissolution, extending the period fixed for the duration of the limited liability company or deleting the event specified in the articles of organization that caused the dissolution, as applicable. C. A limited liability company is not dissolved on the occurrence of an event of dissolution described by Subsection (5) of Section A of this Article if the legal representative or successor of the last remaining member agrees to continue the limited liability company and to become a member as of the date of the termination of the last remaining member's membership in the limited liability company or designates another person who agrees to become a member of the limited liability company as of the date of the termination. Unless otherwise provided in the articles of organization or in the regulations, the agreement of the legal representative or successor to continue the limited liability company and to become a member or the designation of another person who agrees to become a member must be made not later than 90 days after the date of termination of the last remaining member's membership in the limited liability company. SECTION 6. Article 6.06, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: Art. 6.06. REVOCATION OF VOLUNTARY DISSOLUTION PROCEEDINGS. A. At any time before the issuance of a certificate of dissolution by the Secretary of State, or not later than 120 days after the date of the issuance of the certificate of dissolution, a limited liability company may revoke voluntary dissolution proceedings by the written consent of all its members. A-1. After revocation of voluntary dissolution is authorized as provided in Section A of this Article, the limited liability company shall, if a certificate of dissolution of the limited liability company has been issued by the Secretary of State, deliver to the Secretary of State for filing not later than 120 days after the date the certificate was issued, the original and a copy of the articles of revocation of dissolution executed on behalf of the limited liability company by a manager or authorized member, that set forth: (1) the name of the limited liability company; (2) the date that the revocation of dissolution was authorized and, if the dissolution has become effective, the effective date of the dissolution that was revoked; and (3) a statement that the limited liability company elected to revoke voluntary dissolution proceedings by written consent of all of its members. A-2. Except as provided by Section A-3 of this Article, if the Secretary of State finds that the articles of revocation of dissolution conform to law, the Secretary of State shall, when the appropriate filing fee is paid as required by law: (1) endorse the original and the copy with the word "Filed" and the month, day, and year of the filing; (2) file the original in the Secretary of State's office; (3) issue a certificate of revocation of dissolution to which the Secretary of State shall affix the copy; and (4) deliver to the limited liability company or its representative the certificate of revocation of dissolution, together with the affixed copy. A-3. If the limited liability company's name is the same as or deceptively similar to a name already on file or reserved or registered as specified in Article 2.03 of this Act, the Secretary of State shall issue to the limited liability company a certificate of revocation of dissolution as provided by Section A-2 of this Article only if the limited liability company contemporaneously amends its articles of organization to change its name. B. Upon the revocation of voluntary dissolution proceedings the limited liability company may again carry on its business. If a limited liability company revokes voluntary dissolution proceedings prior to the issuance by the Secretary of State of a certificate of dissolution of the limited liability company, the limited liability company may again carry on its business as though voluntary dissolution proceedings had not occurred. If a limited liability company revokes voluntary dissolution proceedings after the issuance by the Secretary of State of a certificate of dissolution of the limited liability company, then on the issuance by the Secretary of State of a certificate of revocation of dissolution: (1) the revocation shall be effective; (2) the existence of the limited liability company shall be deemed to have continued without interruption after the issuance by the Secretary of State of the certificate of dissolution; (3) the limited liability company may carry on its business as though voluntary dissolution proceedings had not occurred; and (4) the existence of the limited liability company shall continue until the limited liability company is subsequently dissolved or otherwise ceases to exist under the provisions of this Act. SECTION 7. Article 7.03, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: Art. 7.03. LIMITED LIABILITY COMPANY NAME OF FOREIGN LIMITED LIABILITY COMPANY. A. No certificate of authority shall be issued to a foreign limited liability company unless the limited liability company name of the [such] limited liability company: (1) Shall contain the word "Limited Liability Company" or "Limited Company" or the abbreviations "L.L.C.," "LLC," "LC," or "L.C." and shall contain any [such] additional words [as may be] required by law. The word "Limited" may be abbreviated as "Ltd." or "LTD" and the word "Company" may be abbreviated as "Co." However, a foreign limited liability company that procured a certificate of authority to transact business in this state before September 1, 1993, and that complied with this Section on the date of procuring the certificate, but does not comply with this Section as revised, is not required to change its name. This subsection does not apply to a foreign limited liability company that is not characterized as a limited liability company under the laws of the jurisdiction of its formation but elects to procure a certificate of authority pursuant to Article 7.01 of this Act as described by Subsection (a) of Section A of Article 1.02 of this Act. (2) Shall not contain any word or phrase which indicates or implies that it is organized for any purpose other than one or more of the purposes contained in its articles of organization. (3) Shall not be the same as, or deceptively similar to, the name of any domestic limited liability company, corporation or limited partnership existing under the laws of this state or of any foreign limited liability company, corporation or limited partnership authorized to transact business in this state, or a name the exclusive right to which is, at the time, reserved or registered in the manner provided in this Act or any other statute relating to corporations, partnerships, or other business entities; provided that a name may be similar if written consent is obtained from the existing limited liability company, corporation or limited partnership having the name deemed to be similar or the person, or limited liability company, for whom the name deemed to be similar is reserved or registered in the office of the Secretary of State. A certificate of authority shall be issued as provided in this Act to any foreign limited liability company having a name the same as, deceptively similar to, or, if no consent is given, similar to the name of any limited liability company existing under the laws of this state or of any foreign limited liability company authorized to transact business in this state, or a name the exclusive right to which is, at the time, reserved or registered, provided such foreign limited liability company qualifies and does business under a name that meets the requirements of this article. The foreign limited liability company shall set forth in the application for a certificate of authority the name under which it is qualifying and shall file an assumed name certificate as required by law. SECTION 8. Section A, Article 7.05, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: A. To [In order to] procure a Certificate of Authority to transact business in this State, a foreign limited liability company shall make application therefor to the Secretary of State, which application shall set forth: (1) The name of the foreign limited liability company as stated in the company's formation documents or in any amendments to the company's formation documents in the state or country under the laws of which it is organized. (2) If the name of the limited liability company does not contain the word "Limited," "Ltd.," or "L.C." or other word or abbreviation the company is required to include in its name under Article 7.03 of this Act, then the name of the foreign limited liability company with the word or abbreviation which it elects to add thereto for use in this state; if the foreign limited liability company is required to qualify under a name other than its foreign limited liability company name, then the name under which the foreign limited liability company is to be qualified. (3) The date of organization and the period of duration of the foreign limited liability company. (4) The address of the principal office of the foreign limited liability company in the state or country under the laws of which it is organized. (5) The address of the registered office of the foreign limited liability company in this state, and the name of its registered agent in this state at such address. (6) The purpose or purposes of the foreign limited liability company which it proposes to pursue in the transaction of business in this state and a statement that it is authorized to pursue such purpose or purposes in the state or country under the laws of which it is organized. (7) The names and respective addresses of the managers of the foreign limited liability company. (8) A statement that the limited liability company exists as a valid entity under the laws of its jurisdiction of formation. SECTION 9. Section A, Article 7.06, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: A. The original and a copy of the application of the foreign limited liability company for a Certificate of Authority shall be delivered to the Secretary of State [, together with a certificate issued by an authorized officer of the jurisdiction of the foreign limited liability company's organization evidencing its existence. If the certificate is in a language other than English, a translation of the certificate, under the oath of the translator, must be attached to the certificate. The certificate must be dated after the 91st day preceding the date on which the application is filed]. If the Secretary of State finds that the application conforms to law, the Secretary of State shall, when the appropriate filing fee is paid as required by law: (1) Endorse on the original and a copy the word "filed," and the month, day, and year of filing thereof. (2) File in the office of the Secretary of State the original [and a certificate evidencing the foreign limited liability company existence]. (3) Issue a Certificate of Authority to transact business in this state to which there shall be affixed the copy. SECTION 10. Section A, Article 8.12, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: A. Subject to Section C of this Article, Articles 2.07, 2.08, 4.14, and 5.14 and Part Seven of the TBCA apply to a limited liability company and its members, managers, and officers. SECTION 11. Section 1.02(12), Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: (12) "Person" includes [means] an individual, business trust, registered limited liability partnership, association, limited liability company, government, governmental subdivision, governmental agency, governmental instrumentality, partnership, limited partnership, [foreign limited partnership,] trust, estate, corporation, custodian, trustee, executor, administrator, nominee, or any other legal or commercial entity in its own or a representative capacity, regardless of whether the entity is formed under the laws of this state or any other jurisdiction. SECTION 12. Section 1.03, Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: Sec. 1.03. PARTNERSHIP NAME. Except as provided by Section 2.14(a)(3) of this Act, the name of a limited partnership as stated in its certificate of limited partnership, a reserved or registered name, or the name under which a foreign limited partnership is permitted to register to do business in Texas as contained in its application for registration as a foreign limited partnership must contain the words "Limited Partnership," "Limited," or the abbreviation "LP," "L.P.," or "Ltd." as the last words or letters of its name and may not: (1) contain the name of a limited partner unless: (A) that name is also the name of a general partner; or (B) the business of the limited partnership or foreign limited partnership had been carried on under that name before the admission of that limited partner; (2) contain a word or phrase indicating or implying that it is organized other than for a purpose stated in its partnership agreement; (3) be the same as or deceptively similar to the name of a corporation, limited liability company, or limited partnership that exists under the laws of Texas, that has a certificate of authority to transact business as a foreign corporation or limited liability company in Texas, or that is registered as a foreign limited partnership in Texas, or a name that has been reserved or registered for a corporation, limited liability company, limited partnership, or foreign limited partnership under the laws of Texas, except that a limited partnership or foreign limited partnership may adopt, reserve, or register, as appropriate, a name that is similar if written consent is obtained from the corporation, limited liability company, limited partnership, or foreign limited partnership having the name considered similar or from the person for whom the name considered similar is reserved or registered in the office of the secretary of state; or (4) contain a word or phrase indicating or implying that it is a corporation. SECTION 13. Section 1.06(a), Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: (a) A limited partnership or foreign limited partnership subject to this Act shall have and maintain in Texas: (1) a registered office, which need not be a place of its business in Texas; and (2) a registered agent for service of process on the partnership, which may be: (A) an individual who is a resident of Texas and whose business office is the same as the partnership's registered office; or (B) a person organized under or authorized to transact business in Texas that has [a domestic corporation or a foreign corporation that has a certificate of authority to transact business in Texas and] a business office that is the same as the partnership's registered office. SECTION 14. Section 2.11(i), Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: (i) For purposes of this section, the term "other entity" means any entity, whether organized for profit or not, that is a corporation, limited partnership (other than a domestic or foreign limited partnership), general partnership, limited liability company, joint venture, joint stock company, cooperative, association, bank, insurance company or other legal entity organized pursuant to the laws of this state or any other state or country to the extent such laws or the constituent documents of that entity, not inconsistent with such laws, permit that entity to enter into a merger or partnership interest exchange as permitted by this section. SECTION 15. Section 2.14(a), Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: (a) A limited partnership is a registered limited liability partnership as well as a limited partnership if it: (1) registers as a registered limited liability partnership as provided by Section 3.08(b), Texas Revised Partnership Act, as permitted by its partnership agreement or, if its partnership agreement does not include provisions for becoming a registered limited liability partnership, with the consent of partners required to amend its partnership agreement; (2) complies with Section 3.08(d), Texas Revised Partnership Act; and (3) has as the last words or letters of its name the words "Limited Partnership" or the abbreviation "Ltd." followed by the words "registered limited liability partnership" or "limited liability partnership" or the abbreviation "LLP" or "L.L.P." SECTION 16. Section 4.01, Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: Sec. 4.01. ADMISSION OF [ADDITIONAL] GENERAL PARTNERS. (a) After the formation of a limited partnership, additional general partners may be admitted as provided in a written partnership agreement or, if a written partnership agreement does not provide for the admission of additional general partners, with the written consent of all partners. (b) Any person may be a general partner unless the person lacks capacity apart from this Act. (c)(1) If provided in a written partnership agreement, a person may be admitted as a general partner in a limited partnership, including as the sole general partner, and acquire a partnership interest in the limited partnership without: (A) making a contribution to the limited partnership; or (B) assuming an obligation to make a contribution to the limited partnership. (2) If provided in a written partnership agreement, a person may be admitted as a general partner in a limited partnership, including as the sole general partner, without acquiring a partnership interest in the limited partnership. (d) Nothing contained in this section limits or otherwise affects the provisions of Section 4.03 of this Act. SECTION 17. Section 5.01, Texas Revised Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil Statutes), is amended to read as follows: Sec. 5.01. FORM OF CONTRIBUTION. The contribution of a [limited] partner may consist of any tangible or intangible benefit to the limited partnership or other property of any kind or nature, including cash, a promissory note, services performed, a contract for services to be performed, other interests in or securities of the limited partnership, or interests in or securities of any other limited partnership, domestic or foreign, or other entity. SECTION 18. Section 3.08(c), Texas Revised Partnership Act (Article 6132b-3.08, Vernon's Texas Civil Statutes), is amended to read as follows: (c) Name. A registered limited liability partnership's name must contain the words "registered limited liability partnership" or "limited liability partnership" or the abbreviation "LLP" or "L.L.P." as the last words or letters of its name. SECTION 19. Section 6.01(b), Texas Revised Partnership Act (Article 6132b-6.01, Vernon's Texas Civil Statutes), is amended to read as follows: (b) Event of Withdrawal. An event of withdrawal of a partner occurs on: (1) receipt by the partnership of notice of the partner's express will to withdraw as a partner on the date of receipt of the notice or on a later date specified in the notice; (2) an event specified in the partnership agreement as causing the partner's withdrawal; (3) the partner's expulsion as provided in the partnership agreement; (4) the partner's expulsion by the vote of a majority-in-interest of the other partners if: (A) it is unlawful to carry on the partnership business with that partner; (B) there has been a transfer of all or substantially all of that partner's partnership interest, other than: (i) a transfer for security purposes that has not been foreclosed; or (ii) the substitution of a successor trustee or successor personal representative; (C) within 90 days after the date the partnership notifies a corporate partner that it will be expelled because it has filed a certificate of dissolution or the equivalent, its charter has been revoked, or its right to conduct business has been suspended by the jurisdiction of its incorporation, the certificate of dissolution is not revoked or its charter or its right to conduct business is not reinstated; or (D) an event requiring a winding up has occurred with respect to a partnership that is a partner; (5) the partner's expulsion by judicial decree, on application by the partnership or another partner for the partner's expulsion, if the decree determines that [by judicial decree because]: (A) the partner engaged in wrongful conduct that adversely and materially affected the partnership business; (B) the partner wilfully or persistently committed a material breach of the partnership agreement or of a duty owed to the partnership or the other partners under Section 4.04; or (C) the partner engaged in conduct relating to the partnership business that made it not reasonably practicable to carry on the business in partnership with that partner; (6) the partner: (A) becoming a debtor in bankruptcy; (B) executing an assignment for the benefit of creditors; (C) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or liquidator of that partner or of all or substantially all of that partner's property; or (D) failing, within 90 days after the appointment, to have vacated or stayed the appointment of a trustee, receiver, or liquidator of the partner or of all or substantially all of the partner's property obtained without the partner's consent or acquiescence, or failing within 90 days after the date of expiration of a stay to have the appointment vacated; (7) in the case of a partner who is an individual: (A) the partner's death; (B) the appointment of a guardian or general conservator for the partner; or (C) a judicial determination that the partner has otherwise become incapable of performing the partner's duties under the partnership agreement; (8) termination of a partner's existence; (9) in the case of a partner that has transferred all of the partner's partnership interest, redemption of the transferee's interest under Sections 7.01(n)-(r); (10) an agreement to continue the partnership under Section 8.01(g) if the partnership has received a notice from the partner under Section 8.01(g) requesting that the partnership be wound up; or (11) a conversion of the partnership if the partner: (A) did not consent to the conversion; and (B) failed to notify the partnership in writing of the partner's desire not to withdraw within 60 days after the later of: (i) the effective date of the conversion; or (ii) the date the partner receives actual notice of the conversion. SECTION 20. Subchapter B, Chapter 405, Government Code, is amended by adding Section 405.020 to read as follows: Sec. 405.020. PUBLIC RECORDS. (a) The secretary of state shall permanently maintain as a public record any instrument, or the information included in any instrument, that is filed with the secretary of state evidencing the organization of, or otherwise in connection with, any entity formed under the laws of this state. (b) The secretary of state shall maintain the records required under Subsection (a) in any form the secretary of state considers appropriate. SECTION 21. Section 405.020, Government Code, as added by this Act, applies only to an instrument or information: (1) on file with the secretary of state on the effective date of this Act; or (2) filed with the secretary of state after the effective date of this Act. SECTION 22. This Act takes effect September 1, 2003.