89R10469 AMF-F
By: Landgraf H.B. No. 2884
A BILL TO BE ENTITLED
AN ACT
relating to the required disclosure of certain financial
relationships in civil actions against United States defense
contractors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 2, Civil Practice and Remedies
Code, is amended by adding Chapter 28 to read as follows:
CHAPTER 28. ACTIONS AGAINST UNITED STATES DEFENSE CONTRACTORS
Sec. 28.001. DEFINITIONS. In this chapter:
(1) "Defense contractor" means any entity that:
(A) is engaged in the production, manufacturing,
or provision of goods or services to the United States Department of
Defense; and
(B) is a party to a contract subject to the Arms
Export Control Act (22 U.S.C. Section 2778), as implemented by the
International Traffic in Arms Regulations under 22 C.F.R. Parts
120-130.
(2) "Sanctioned or embargoed nation" means any foreign
nation subject to sanctions or an embargo under the Arms Export
Control Act (22 U.S.C. Section 2751 et seq.), as determined by the
United States Department of State.
Sec. 28.002. APPLICABILITY OF CHAPTER. This chapter
applies only to a civil action brought against a defense
contractor.
Sec. 28.003. REQUIRED DISCLOSURES RELATED TO FUNDING OR
FUNDING SOURCES. (a) In a civil action subject to this chapter, a
claimant must disclose, as part of initial disclosures required
under Rule 194, Texas Rules of Civil Procedure:
(1) whether the claimant or the claimant's attorney
has received, directly or indirectly, funding or financial support
from any individual, entity, or government affiliated with a
sanctioned or embargoed nation; and
(2) the identity of all sources of funding or
financial support described by Subdivision (1).
(b) A claimant has a continuing obligation to supplement the
disclosures required under this section during the pendency of the
action with information on the following that occur after the
initial disclosures are made:
(1) the claimant or the claimant's attorney receiving,
directly or indirectly, money from an individual, entity, or
government affiliated with a sanctioned or embargoed nation; and
(2) the claimant or the claimant's attorney
identifying a source of funding or financial support described by
Subsection (a)(1).
(c) A claimant must make a disclosure required by this
section not later than the 10th day after the date the claimant or
the claimant's attorney receives the money or identifies a source
of funding or financial support, as applicable.
(d) A disclosure required by this section must be made under
oath and filed with the court.
Sec. 28.004. WITHHOLDING DISCLOSURE PROHIBITED. (a) A
disclosure required by Section 28.003 may not be delayed, excluded,
or withheld for any reason, including because of a claim the
information is privileged or otherwise exempted from disclosure.
(b) A court may not grant a motion by a claimant to limit the
disclosure of proprietary or confidential information related to
money or sources of funding or financial support described by
Section 28.003.
Sec. 28.005. SANCTIONS. In addition to any other sanctions
the court is permitted to impose under law, if a claimant fails to
comply with this chapter, the court may:
(1) stay the proceeding until the required disclosure
is made; or
(2) dismiss the action with prejudice on a finding of
wilful noncompliance.
SECTION 2. Chapter 28, Civil Practice and Remedies Code, as
added by this Act, applies only to an action that is pending in a
trial court on the effective date of this Act or that is filed on or
after the effective date of this Act.
SECTION 3. 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 vote necessary for immediate effect, this
Act takes effect September 1, 2025.