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4 | 6 | | |
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5 | 7 | | |
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6 | 8 | | |
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7 | 9 | | A BILL TO BE ENTITLED |
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8 | 10 | | AN ACT |
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9 | 11 | | relating to the required disclosure of certain financial |
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10 | 12 | | relationships in civil actions regarding the activities of United |
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11 | 13 | | States defense contractors. |
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12 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 15 | | SECTION 1. Subtitle B, Title 2, Civil Practice and Remedies |
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14 | 16 | | Code, is amended by adding Chapter 28 to read as follows: |
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15 | 17 | | CHAPTER 28. ACTIONS REGARDING ACTIVITIES OF UNITED STATES DEFENSE |
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16 | 18 | | CONTRACTORS |
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17 | 19 | | Sec. 28.001. DEFINITIONS. In this chapter: |
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18 | 20 | | (1) "Defense contractor" means any entity that is |
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19 | 21 | | engaged in the production, manufacturing, or provision of defense |
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20 | 22 | | articles or defense services to the United States Department of |
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21 | 23 | | Defense under the International Traffic in Arms Regulations (22 |
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22 | 24 | | C.F.R. Parts 120-130). |
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23 | 25 | | (2) "Sanctioned or embargoed nation" means any foreign |
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24 | 26 | | nation subject to sanctions or an embargo under the Arms Export |
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25 | 27 | | Control Act (22 U.S.C. Section 2751 et seq.), as determined by the |
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26 | 28 | | United States Department of State. |
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27 | 29 | | Sec. 28.002. APPLICABILITY OF CHAPTER. This chapter |
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28 | 30 | | applies only to a civil action regarding the activities of a defense |
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29 | 31 | | contractor, regardless of whether the contractor is a party. |
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30 | 32 | | Sec. 28.003. REQUIRED DISCLOSURES RELATED TO FUNDING OR |
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31 | 33 | | FUNDING SOURCES. (a) In a civil action subject to this chapter, a |
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32 | 34 | | claimant must disclose, as part of initial disclosures required |
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33 | 35 | | under Rule 194, Texas Rules of Civil Procedure: |
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34 | 36 | | (1) whether the claimant or the claimant's attorney |
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35 | 37 | | has received, directly or indirectly, funding or financial support |
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36 | 38 | | from any individual, entity, or government affiliated with a |
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37 | 39 | | sanctioned or embargoed nation; and |
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38 | 40 | | (2) the identity of all sources of funding or |
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39 | 41 | | financial support described by Subdivision (1). |
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40 | 42 | | (b) A claimant has a continuing obligation to supplement the |
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41 | 43 | | disclosures required under this section during the pendency of the |
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42 | 44 | | action with information on the following that occur after the |
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43 | 45 | | initial disclosures are made: |
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44 | 46 | | (1) the claimant or the claimant's attorney receiving, |
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45 | 47 | | directly or indirectly, money from an individual, entity, or |
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46 | 48 | | government affiliated with a sanctioned or embargoed nation; and |
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47 | 49 | | (2) the claimant or the claimant's attorney |
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48 | 50 | | identifying a source of funding or financial support described by |
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49 | 51 | | Subsection (a)(1). |
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50 | 52 | | (c) A claimant must make a disclosure required by this |
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51 | 53 | | section not later than the 10th day after the date the claimant or |
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52 | 54 | | the claimant's attorney receives the money or identifies a source |
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53 | 55 | | of funding or financial support, as applicable. |
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54 | 56 | | (d) A disclosure required by this section must be made under |
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55 | 57 | | oath and filed with the court. |
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56 | 58 | | Sec. 28.004. WITHHOLDING DISCLOSURE PROHIBITED. (a) A |
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57 | 59 | | disclosure required by Section 28.003 may not be delayed, excluded, |
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58 | 60 | | or withheld for any reason, including because of a claim the |
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59 | 61 | | information is privileged or otherwise exempted from disclosure. |
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60 | 62 | | (b) A court may not grant a motion by a claimant to limit the |
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61 | 63 | | disclosure of proprietary or confidential information related to |
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62 | 64 | | money or sources of funding or financial support described by |
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63 | 65 | | Section 28.003. |
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64 | 66 | | Sec. 28.005. SANCTIONS. In addition to any other sanctions |
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65 | 67 | | the court is permitted to impose under law, if a claimant fails to |
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66 | 68 | | comply with this chapter, the court may: |
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67 | 69 | | (1) stay the proceeding until the required disclosure |
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68 | 70 | | is made; or |
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69 | 71 | | (2) dismiss the action with prejudice on a finding of |
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70 | 72 | | wilful noncompliance. |
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71 | 73 | | SECTION 2. Chapter 28, Civil Practice and Remedies Code, as |
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72 | 74 | | added by this Act, applies only to an action that is pending in a |
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73 | 75 | | trial court on the effective date of this Act or that is filed on or |
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74 | 76 | | after the effective date of this Act. |
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75 | 77 | | SECTION 3. This Act takes effect immediately if it receives |
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76 | 78 | | a vote of two-thirds of all the members elected to each house, as |
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77 | 79 | | provided by Section 39, Article III, Texas Constitution. If this |
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78 | 80 | | Act does not receive the vote necessary for immediate effect, this |
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79 | 81 | | Act takes effect September 1, 2025. |
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