Texas Senate Bill SB695

Texas 2013 - 83rd Regular

Caption

Relating to the application of foreign laws and foreign forum selection in this state.

Impact

The legislation introduces a new chapter to the Civil Practice and Remedies Code and would primarily affect how contracts are interpreted in Texas courts, especially in terms of jurisdiction and applicable law. It emphasizes local judicial control, ensuring that Texas courts preserve constitutional protections from external legal influences. The intent is to foster an environment that prioritizes Texas residents' rights over foreign legal interpretations, potentially influencing disputes that involve international contracts or parties based outside the United States.

Summary

SB695, titled 'Relating to the application of foreign laws and foreign forum selection in this state,' seeks to safeguard the application of Texas laws by stipulating that any ruling or decision in Texas, whether by courts, arbitrators, or administrative adjudicators, must not rely on foreign laws if doing so would infringe upon rights protected by the U.S. Constitution or the Texas Constitution. The bill also declares any contract provisions that specify governing foreign laws or foreign forums to be void, should they violate constitutional rights. This aims to prevent the enforcement of foreign laws that could undermine the established rights and regulatory framework within Texas.

Sentiment

The sentiment around SB695 appears to be largely supportive among legislators who value state sovereignty and constitutional protections. Proponents argue that the bill is essential in maintaining the integrity of Texas law and protecting citizens from foreign legal systems that may not align with Texan values and legal standards. However, there may be concerns among advocates for international trade and business about the implications of the legislation on contracts and transactional law, particularly with foreign entities. The discussions surrounding the bill likely reflect a broader trend of skepticism towards foreign influence.

Contention

Notable points of contention include the balance between state sovereignty and the necessity of international engagement in commerce. Critics may argue that the bill could deter businesses from operating in Texas if they anticipate potential conflicts with international law or foreign contractual obligations. Also, while the intent is to protect rights, some may see it as a potential barrier to fair contractual negotiations with foreign partners or entities. The bill's implications on jury trials involving foreign parties or the ability of courts to resolve disputes that cross jurisdictions will also be areas of legal debate as it evolves.