| 1 | 1 | | H.B. No. 4381 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the suspension of a money judgment pending appeal in a |
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| 6 | 6 | | civil action. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Chapter 52, Civil Practice and Remedies Code, is |
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| 9 | 9 | | amended by adding Section 52.007 to read as follows: |
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| 10 | 10 | | Sec. 52.007. ALTERNATIVE SECURITY IN CERTAIN CASES. (a) |
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| 11 | 11 | | This section applies only to a judgment debtor with a net worth of |
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| 12 | 12 | | less than $10 million. |
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| 13 | 13 | | (b) On a showing by the judgment debtor that posting |
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| 14 | 14 | | security in the amount required under Section 52.006(a) or (b) |
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| 15 | 15 | | would require the judgment debtor to substantially liquidate the |
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| 16 | 16 | | judgment debtor's interests in real or personal property necessary |
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| 17 | 17 | | to the normal course of the judgment debtor's business, the trial |
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| 18 | 18 | | court shall allow the judgment debtor to post alternative security |
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| 19 | 19 | | with a value sufficient to secure the judgment. |
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| 20 | 20 | | (c) During an appeal, the judgment debtor shall continue to |
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| 21 | 21 | | manage, use, and receive earnings from interests in real or |
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| 22 | 22 | | personal property in the normal course of business. |
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| 23 | 23 | | (d) If an appellate court reduces the amount of the judgment |
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| 24 | 24 | | that the trial court used to set security, the judgment debtor is |
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| 25 | 25 | | entitled, pending appeal of the judgment to a court of last resort, |
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| 26 | 26 | | to a redetermination of the amount of security required to suspend |
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| 27 | 27 | | enforcement of a judgment under Section 52.006 or under Rule 24, |
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| 28 | 28 | | Texas Rules of Appellate Procedure. |
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| 29 | 29 | | SECTION 2. The change in law made by this Act applies only |
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| 30 | 30 | | to a civil action commenced on or after the effective date of this |
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| 31 | 31 | | Act. A civil action commenced before the effective date of this Act |
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| 32 | 32 | | is governed by the law in effect immediately before the effective |
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| 33 | 33 | | date of this Act, and that law is continued in effect for that |
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| 34 | 34 | | purpose. |
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| 35 | 35 | | SECTION 3. This Act takes effect September 1, 2023. |
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| 36 | 36 | | ______________________________ ______________________________ |
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| 37 | 37 | | President of the Senate Speaker of the House |
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| 38 | 38 | | I certify that H.B. No. 4381 was passed by the House on May 2, |
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| 39 | 39 | | 2023, by the following vote: Yeas 130, Nays 15, 1 present, not |
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| 40 | 40 | | voting. |
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| 41 | 41 | | ______________________________ |
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| 42 | 42 | | Chief Clerk of the House |
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| 43 | 43 | | I certify that H.B. No. 4381 was passed by the Senate on May |
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| 44 | 44 | | 17, 2023, by the following vote: Yeas 31, Nays 0. |
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| 45 | 45 | | ______________________________ |
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| 46 | 46 | | Secretary of the Senate |
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| 47 | 47 | | APPROVED: _____________________ |
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| 48 | 48 | | Date |
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| 49 | 49 | | _____________________ |
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| 50 | 50 | | Governor |
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