73R8485 DLF-F
By Combs H.B. No. 2718
Substitute the following for H.B. No. 2718:
By Carona C.S.H.B. No. 2718
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the prevention of seizure, garnishment, or attachment
1-3 of property exempt in this state through use of a proceeding in
1-4 another state.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle A, Title 5, Property Code, is amended by
1-7 adding Chapter 44 to read as follows:
1-8 CHAPTER 44. PROCEEDINGS IN FOREIGN JURISDICTIONS
1-9 Sec. 44.001. DEFINITION. In this chapter, "exempt property"
1-10 means property that is exempt from judicial process under Chapter
1-11 41 or 42, or under Article 21.22, Insurance Code.
1-12 Sec. 44.002. SEIZURE OF EXEMPT PROPERTY THROUGH PROCEEDING
1-13 IN FOREIGN JURISDICTION PROHIBITED. A person may not institute or
1-14 enforce proceedings to attach, garnish, levy against, or seek
1-15 similar judicial remedies against exempt property in any court in
1-16 any other state.
1-17 Sec. 44.003. CAUSE OF ACTION. (a) A person who violates
1-18 Section 44.002 is liable to the person entitled to claim the
1-19 exemption for damages resulting from the violation, including:
1-20 (1) the full amount of payment enforced in violation
1-21 of that section;
1-22 (2) interest on the amount described by Subdivision
1-23 (1), in accordance with Section 44.005; and
2-1 (3) court costs and reasonable attorney's fees
2-2 expended by the person entitled to claim the exemption in the
2-3 proceeding brought in violation of Section 44.002 and in bringing
2-4 an action under this section.
2-5 (b) A person entitled to claim an exemption is entitled to
2-6 injunctive relief against a person who violates Section 44.002.
2-7 Sec. 44.004. NOTICE. A person may not commence an action
2-8 under Section 44.003 before the third day after the date the person
2-9 has sent notice of the prohibition of that section by certified
2-10 mail to:
2-11 (1) the last known address of the person alleged to
2-12 have violated Section 44.002 as shown on the records of the court
2-13 in which that person brought the proceedings; and
2-14 (2) the last known address of that person's attorney,
2-15 if any, as shown on the records of the court in which the person
2-16 brought the proceedings or on the records of the appropriate
2-17 licensing agency in the state in which the action was brought.
2-18 Sec. 44.005. PREJUDGMENT INTEREST. (a) Interest awarded
2-19 under Section 44.003 includes prejudgment interest that begins
2-20 accruing on the date that a judgment is rendered in a proceeding
2-21 brought in violation of Section 44.002 and ends on the day before
2-22 the date judgment is rendered in an action brought under this
2-23 section.
2-24 (b) The rate of interest paid under this section is the rate
2-25 applicable to judgments under Section 2, Article 1.05, Title 79,
3-1 Revised Statutes (Article 5069-1.05, Vernon's Texas Civil
3-2 Statutes).
3-3 (c) Sections 2 and 3, Article 1.05, Title 79, Revised
3-4 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), apply
3-5 to a judgment rendered in an action brought under this section.
3-6 Sec. 44.006. JUDGMENT EXEMPT. Any amount recovered under
3-7 Section 44.003 is exempt from judicial process to the same extent
3-8 that the property seized in violation of Section 44.002 is exempt
3-9 under the laws of this state.
3-10 Sec. 44.007. EXCEPTIONS. (a) This chapter does not apply
3-11 if, at the time a proceeding prohibited under Section 44.002 is
3-12 commenced, the person claiming the exemption is not a resident of
3-13 this state.
3-14 (b) This chapter does not apply if:
3-15 (1) at the time a proceeding prohibited under Section
3-16 44.002 is commenced, the person claiming the exemption has been a
3-17 resident of this state for less than six months; and
3-18 (2) before the date on which the person became a
3-19 resident of this state the person had received a notice or a
3-20 written or oral communication that gave the person reason to
3-21 believe that the proceeding would be commenced.
3-22 SECTION 2. This Act takes effect September 1, 1993.
3-23 SECTION 3. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended.