SRC-PNG S.B. 648 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 648
By: Wentworth
Technology & Business Growth
3/22/1999
As Filed


DIGEST 

Currently, under Texas law, there is a conflict of case law concerning the
validity of venue selection clauses, particularly as relates to large
commercial transactions.  This bill authorizes the specification of venue
for actions arising from certain major transactions. 

PURPOSE

As proposed, S.B. 648 authorizes the specification of venue for actions
arising from certain major transactions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 15B, Civil Practice and Remedies Code, by adding
Section 15.020, as follows: 

Sec. 15.020.  MAJOR TRANSACTIONS: SPECIFICATION OF VENUE BY AGREEMENT.
Defines "major transaction."  Requires an action arising from a major
transaction to be brought in a county if the party against whom the action
is brought has agreed in writing that a suit arising from the transaction
may be brought in that county. Prohibits an action arising from a major
transaction from being brought in a county under certain conditions,
notwithstanding any other provision of this title.  Provides that this
section does not apply to an action under certain conditions.  Provides
that this section does not affect venue and jurisdiction in an action that
is not a major transaction.   

SECTION 2. Makes application of this Act prospective.
  Effective date: 90 days after adjournment.