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