| 1 | 1 | | 82R3754 CAE-F |
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| 2 | 2 | | By: Lewis H.B. No. 1438 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to service of process on certain domestic and foreign |
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| 8 | 8 | | entities for the collection of delinquent property taxes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 5.257, Business Organizations Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | Sec. 5.257. SERVICE OF PROCESS BY POLITICAL SUBDIVISION. |
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| 13 | 13 | | (a) A process, notice, or demand required or permitted by law to be |
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| 14 | 14 | | served by a political subdivision of this state or by a person, |
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| 15 | 15 | | including another political subdivision or an attorney, acting on |
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| 16 | 16 | | behalf of a political subdivision in connection with the collection |
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| 17 | 17 | | of a delinquent ad valorem tax may be served on a domestic or |
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| 18 | 18 | | foreign corporation whose corporate privileges are forfeited under |
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| 19 | 19 | | Section 171.251, Tax Code, a domestic or foreign limited liability |
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| 20 | 20 | | company whose right to transact business in this state is forfeited |
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| 21 | 21 | | under Section 171.2515, Tax Code, or a corporation or limited |
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| 22 | 22 | | liability company that is involuntarily terminated under Chapter |
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| 23 | 23 | | 11[,] or whose registration is revoked under Chapter 9 by delivery |
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| 24 | 24 | | of the process, notice, or demand to any officer or director of the |
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| 25 | 25 | | corporation or manager or member of the limited liability company, |
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| 26 | 26 | | as listed in the most recent records of the secretary of state. |
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| 27 | 27 | | (b) If the officers or directors of a corporation or the |
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| 28 | 28 | | managers or members of the limited liability company are unknown or |
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| 29 | 29 | | cannot be found, service on the corporation or limited liability |
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| 30 | 30 | | company may be made in the same manner as service is made on unknown |
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| 31 | 31 | | shareholders under law. |
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| 32 | 32 | | (c) Notwithstanding any disability or reinstatement of a |
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| 33 | 33 | | corporation or limited liability company, service of process under |
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| 34 | 34 | | this section is sufficient for a judgment against the corporation |
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| 35 | 35 | | or limited liability company or a judgment in rem against any |
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| 36 | 36 | | property to which the corporation or limited liability company |
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| 37 | 37 | | holds title. |
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| 38 | 38 | | SECTION 2. Section 17.091, Civil Practice and Remedies |
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| 39 | 39 | | Code, is amended by amending Subsection (a) and adding Subsection |
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| 40 | 40 | | (f) to read as follows: |
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| 41 | 41 | | (a) In a suit to collect delinquent property taxes by the |
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| 42 | 42 | | state or a political subdivision of the state in which a [person who |
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| 43 | 43 | | is a] defendant in the suit is a nonresident, the secretary of state |
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| 44 | 44 | | is an agent for service of process on that defendant if the |
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| 45 | 45 | | defendant owns, has, or claims an interest in or a lien against |
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| 46 | 46 | | property in this state that is the subject of the suit. This section |
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| 47 | 47 | | applies regardless of whether the defendant has resided in this |
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| 48 | 48 | | state. |
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| 49 | 49 | | (f) In this section, "nonresident" includes: |
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| 50 | 50 | | (1) an individual who is not a resident of this state; |
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| 51 | 51 | | and |
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| 52 | 52 | | (2) a foreign corporation, foreign unincorporated |
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| 53 | 53 | | association, foreign general partnership, foreign limited |
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| 54 | 54 | | partnership, foreign limited liability company, foreign |
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| 55 | 55 | | professional association, foreign business trust, foreign |
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| 56 | 56 | | cooperative, or foreign real estate investment trust that is not |
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| 57 | 57 | | required to appoint a registered agent for service of process in |
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| 58 | 58 | | this state under the provisions of the Business Organizations Code. |
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| 59 | 59 | | SECTION 3. Section 5.257, Business Organizations Code, as |
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| 60 | 60 | | amended by this Act, and Section 17.091, Civil Practice and |
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| 61 | 61 | | Remedies Code, as amended by this Act, apply only to service of |
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| 62 | 62 | | process issued on or after the effective date of this Act. Service |
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| 63 | 63 | | of process issued before the effective date of this Act is governed |
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| 64 | 64 | | by the law as it existed immediately before the effective date of |
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| 65 | 65 | | this Act, and that law is continued in effect for that purpose. |
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| 66 | 66 | | SECTION 4. This Act takes effect September 1, 2011. |
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