By: Madden, et al. (Senate Sponsor - Harris) H.B. No. 3174
(In the Senate - Received from the House April 20, 2011;
April 26, 2011, read first time and referred to Committee on
Jurisprudence; May 12, 2011, reported favorably by the following
vote: Yeas 7, Nays 0; May 12, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the stay of recognition or enforcement of a foreign
country judgment to allow for de novo review of a contract or
agreement for a sale, offer for sale, or sell under The Securities
Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Securities Act (Article 581-1 et seq.,
Vernon's Texas Civil Statutes) is amended by adding Section 33-2 to
read as follows:
Sec. 33-2. STAY OF RECOGNITION OR ENFORCEMENT OF FOREIGN
COUNTRY JUDGMENT. (a) Prior to a court's recognition or
enforcement of a foreign country judgment under Chapter 36, Civil
Practice and Remedies Code, or otherwise, a party against whom
recognition or enforcement of a foreign country judgment is sought
is entitled to de novo review by a court in this state to determine
whether a party, its successors, assigns, agents, or
representatives seeking recognition or enforcement of a foreign
country judgment has violated this Act or Chapter 17, Business &
Commerce Code.
(b) A party seeking de novo review under this section must
file with the court a verified pleading asserting a violation of
this Act or Chapter 17, Business & Commerce Code, not later than the
30th day after the date of service of the notice of filing of a
foreign country judgment with the court for recognition or
enforcement.
(c) A pleading filed in accordance with Subsection (b)
operates as a stay of the commencement or continuation of a
proceeding to recognize or enforce a foreign country judgment. The
stay shall continue until the court completes its de novo review
under this section and renders a final judgment.
(d) A finding by a court of a violation of this Act or
Chapter 17, Business & Commerce Code, is a sufficient ground for
nonrecognition of a foreign country judgment.
(e) This section applies to a foreign country judgment
involving a contract or agreement for a sale, offer for sale, or
sell as defined by this Act, or investment, that imposes an
obligation of indemnification or liquidated damages upon a Texas
resident.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the votes necessary for immediate effect, this
Act takes effect September 1, 2011.
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