| 1 | 1 | | By: Madden, et al. (Senate Sponsor - Harris) H.B. No. 3174 |
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| 2 | 2 | | (In the Senate - Received from the House April 20, 2011; |
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| 3 | 3 | | April 26, 2011, read first time and referred to Committee on |
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| 4 | 4 | | Jurisprudence; May 12, 2011, reported favorably by the following |
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| 5 | 5 | | vote: Yeas 7, Nays 0; May 12, 2011, sent to printer.) |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to the stay of recognition or enforcement of a foreign |
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| 11 | 11 | | country judgment to allow for de novo review of a contract or |
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| 12 | 12 | | agreement for a sale, offer for sale, or sell under The Securities |
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| 13 | 13 | | Act. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. The Securities Act (Article 581-1 et seq., |
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| 16 | 16 | | Vernon's Texas Civil Statutes) is amended by adding Section 33-2 to |
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| 17 | 17 | | read as follows: |
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| 18 | 18 | | Sec. 33-2. STAY OF RECOGNITION OR ENFORCEMENT OF FOREIGN |
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| 19 | 19 | | COUNTRY JUDGMENT. (a) Prior to a court's recognition or |
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| 20 | 20 | | enforcement of a foreign country judgment under Chapter 36, Civil |
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| 21 | 21 | | Practice and Remedies Code, or otherwise, a party against whom |
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| 22 | 22 | | recognition or enforcement of a foreign country judgment is sought |
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| 23 | 23 | | is entitled to de novo review by a court in this state to determine |
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| 24 | 24 | | whether a party, its successors, assigns, agents, or |
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| 25 | 25 | | representatives seeking recognition or enforcement of a foreign |
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| 26 | 26 | | country judgment has violated this Act or Chapter 17, Business & |
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| 27 | 27 | | Commerce Code. |
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| 28 | 28 | | (b) A party seeking de novo review under this section must |
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| 29 | 29 | | file with the court a verified pleading asserting a violation of |
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| 30 | 30 | | this Act or Chapter 17, Business & Commerce Code, not later than the |
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| 31 | 31 | | 30th day after the date of service of the notice of filing of a |
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| 32 | 32 | | foreign country judgment with the court for recognition or |
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| 33 | 33 | | enforcement. |
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| 34 | 34 | | (c) A pleading filed in accordance with Subsection (b) |
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| 35 | 35 | | operates as a stay of the commencement or continuation of a |
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| 36 | 36 | | proceeding to recognize or enforce a foreign country judgment. The |
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| 37 | 37 | | stay shall continue until the court completes its de novo review |
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| 38 | 38 | | under this section and renders a final judgment. |
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| 39 | 39 | | (d) A finding by a court of a violation of this Act or |
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| 40 | 40 | | Chapter 17, Business & Commerce Code, is a sufficient ground for |
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| 41 | 41 | | nonrecognition of a foreign country judgment. |
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| 42 | 42 | | (e) This section applies to a foreign country judgment |
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| 43 | 43 | | involving a contract or agreement for a sale, offer for sale, or |
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| 44 | 44 | | sell as defined by this Act, or investment, that imposes an |
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| 45 | 45 | | obligation of indemnification or liquidated damages upon a Texas |
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| 46 | 46 | | resident. |
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| 47 | 47 | | SECTION 2. This Act takes effect immediately if it receives |
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| 48 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 49 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 50 | 50 | | Act does not receive the votes necessary for immediate effect, this |
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| 51 | 51 | | Act takes effect September 1, 2011. |
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| 52 | 52 | | * * * * * |
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