By Combs                                              H.B. No. 2718
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the prevention of seizure, garnishment or attachment of
    1-3  exempt property through use of proceedings in other states.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 42.006, Property Code, is added to read
    1-6  as follows:
    1-7        Sec. 42.006  PREVENTION OF SEIZURE THROUGH FOREIGN
    1-8  PROCEEDINGS.  (a)  No person shall institute, continue, enforce, or
    1-9  permit to be instituted, continued, or enforced, proceedings in
   1-10  attachment, garnishment, levy, or the like in any court in any
   1-11  other state, against a person entitled to designate property as
   1-12  exempt under Chapters 41 and 42 of this Title, or under article
   1-13  21.22, Insurance Code, or against any person holding property that
   1-14  the owner may designate as exempt under such laws, for the purpose
   1-15  of having payment of the debt, or any part thereof, enforced out of
   1-16  property which would be exempt under such laws if that proceeding
   1-17  was brought in a court in this state.
   1-18  (b)  Any person who violates the prohibition in subsection (a) of
   1-19  this Section shall be liable to the person entitled to claim such
   1-20  exemption for the full amount of payment enforced thereby and other
   1-21  consequential damages, together with interest thereon, and costs
   1-22  and attorneys fees incurred in the action or proceeding in the
   1-23  other state and in the action to enforce this Section.
    2-1  (c)  The amount recovered in an action under this Section shall be
    2-2  exempt from seizure the same as if it was the property which was
    2-3  seized.  The amount recovered in an action under this Section shall
    2-4  not be subject to setoff or other seizure by the person violating
    2-5  this Section.
    2-6  (d)  A person entitled to exempt property under Chapters 41 and 42
    2-7  of this Title or under article 21.22, Insurance Code, shall be
    2-8  entitled to temporary and permanent injunctive relief against any
    2-9  person who violates subsection (a) of this Section.
   2-10  (e)  A person who violates subsection (a) of this Section shall be
   2-11  conclusively presumed to have reasonably foreseen that the action
   2-12  violating subsection (a) would have a result in this state and
   2-13  shall be subject to jurisdiction and service of process pursuant to
   2-14  Chapter 17, Civil Practice and Remedies Code.
   2-15        SECTION 2.  Any person who is subject to proceedings, as of
   2-16  the effective date of this Act, in attachment, garnishment, levy,
   2-17  or the like which are prohibited by this Act, may not enforce the
   2-18  prohibition of this Act until the person violating this Act is sent
   2-19  notice of this Act by certified mail, return receipt requested.
   2-20  Notice shall be effective three business days after notice is
   2-21  mailed, if mailed to the person violating this Act, or such
   2-22  person's attorney of record in the proceeding which violates this
   2-23  Act.
   2-24        SECTION 3.  The importance of this legislation and the
   2-25  crowded condition of the calendars in both houses create an
    3-1  emergency and an imperative public necessity that the
    3-2  constitutional rule requiring bills to be read on three several
    3-3  days in each house be suspended, and this rule is hereby suspended,
    3-4  and that this Act take effect and be in force from and after its
    3-5  passage, and it is so enacted.