| 1 | 1 | | 84R5004 LED-D |
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| 2 | 2 | | By: Garcia S.B. No. 1848 |
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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 civil liability of shareholders and members of certain |
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| 8 | 8 | | legal entities that engage in the trafficking of persons. |
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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. Chapter 98, Civil Practice and Remedies Code, is |
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| 11 | 11 | | amended by adding Section 98.0025 to read as follows: |
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| 12 | 12 | | Sec. 98.0025. SHAREHOLDER AND MEMBER LIABILITY. (a) This |
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| 13 | 13 | | section applies to a legal entity governed by Title 2, 3, or 7, |
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| 14 | 14 | | Business Organizations Code. |
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| 15 | 15 | | (b) Notwithstanding any provision of the Business |
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| 16 | 16 | | Organizations Code, if a legal entity described by Subsection (a) |
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| 17 | 17 | | is liable under Section 98.002, a shareholder or member of that |
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| 18 | 18 | | entity is jointly and severally liable with the entity to the person |
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| 19 | 19 | | trafficked for damages arising from the trafficking of that person |
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| 20 | 20 | | if the person demonstrates that the shareholder or member: |
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| 21 | 21 | | (1) caused the entity to be used for the purpose of |
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| 22 | 22 | | trafficking of persons; or |
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| 23 | 23 | | (2) knew the entity was engaged in the trafficking of |
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| 24 | 24 | | persons and directly benefited from that trafficking. |
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| 25 | 25 | | SECTION 2. The change in law made by this Act applies only |
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| 26 | 26 | | to a cause of action that accrues on or after the effective date of |
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| 27 | 27 | | this Act. A cause of action that accrues before the effective date |
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| 28 | 28 | | of this Act is governed by the law as it existed immediately before |
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| 29 | 29 | | that date, and that law is continued in effect for that purpose. |
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| 30 | 30 | | SECTION 3. This Act takes effect immediately if it receives |
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| 31 | 31 | | a vote of two-thirds of all the members elected to each house, as |
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| 32 | 32 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 33 | 33 | | Act does not receive the vote necessary for immediate effect, this |
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| 34 | 34 | | Act takes effect September 1, 2015. |
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