By Harris of Tarrant S.B. No. 518
Substitute the following for S.B. No. 518:
By Marchant C.S.S.B. No. 518
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to rights and remedies under the Securities Act.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection D, Section 33, The Securities Act
1-5 (Article 581-33, Vernon's Texas Civil Statutes), is amended by
1-6 adding Subdivision (8) to read as follows:
1-7 (8) In damages, a buyer shall recover reasonable attorney's
1-8 fees, in addition to other damages specified herein.
1-9 SECTION 2. Subsection M, Section 33, The Securities Act
1-10 (Article 581-33, Vernon's Texas Civil Statutes), is amended to read
1-11 as follows:
1-12 M. Saving of Existing Remedies. (1) Except as provided by
1-13 Subdivision (2), the <The> rights and remedies provided by this Act
1-14 are in addition to any other rights (including exemplary or
1-15 punitive damages) or remedies that may exist at law or in equity.
1-16 (2) The rights and remedies provided by this Act
1-17 supersede and are exclusive of any right or remedy otherwise
1-18 provided by the Deceptive Trade Practices-Consumer Protection Act
1-19 (Section 17.41 et seq., Business & Commerce Code) with respect to a
1-20 transaction, an act, a service, or advice covered by this Act
1-21 except to any express representations of a material fact in any
1-22 printed advertising, radio advertising, or television advertising
1-23 made either by a person who offers or sells a security or who
1-24 directly or indirectly controls a seller of a security or anyone
2-1 acting on their behalf. This subdivision does not apply to a
2-2 telephone solicitation made by a person other than a dealer, agent,
2-3 or salesman authorized by this Act to sell securities in Texas.
2-4 However, nothing in this subdivision diminishes the enforcement
2-5 authority of the Attorney General's office under the Deceptive
2-6 Trade Practices-Consumer Protection Act.
2-7 SECTION 3. This Act applies only to lawsuits filed on or
2-8 after the effective date of this Act. Lawsuits filed before the
2-9 effective date of this Act are governed by the law in effect when
2-10 the suit was filed, and the former law is continued in effect for
2-11 this purpose.
2-12 SECTION 4. This importance of this legislation and the
2-13 crowded condition of the calendars in both houses create an
2-14 emergency and an imperative public necessity that the
2-15 constitutional rule requiring bills to be read on three several
2-16 days in each house be suspended, and this rule is hereby suspended,
2-17 and that this Act take effect and be in force from and after its
2-18 passage, and it is so enacted.