By: Nelson S.B. No. 1199 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to the requirements for certain documents executed and 1-2 certain legal entities created in another state. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 1, Probate Code, is amended by adding 1-5 Section 36G to read as follows: 1-6 Sec. 36G. EXECUTION REQUIREMENTS. (a) Any document 1-7 executed in another state shall not be enforceable in this state 1-8 unless: 1-9 (1) the formalities and requirements for execution in 1-10 the state where the document was executed are: 1-11 (A) substantially similar to the requirements 1-12 for a substantially similar document in this state; or 1-13 (B) the purposes for the formalities and 1-14 requirements required in this state for document execution are 1-15 otherwise fulfilled in another state without the formalities or 1-16 requirements; 1-17 (2) any civil remedies in the state where the document 1-18 was executed are substantially similar to the civil remedies in 1-19 this state; and 1-20 (3) the document may be enforced in a substantially 1-21 similar manner in the state where the document was executed as in 1-22 this state. 2-1 (b) Any legal status granted in another state may not be 2-2 asserted in this state: 2-3 (1) without the formal execution of a document in 2-4 another state if similar legal status would not be granted in this 2-5 state without the execution of a formal document; and 2-6 (2) unless the requirements and limitations in another 2-7 state are substantially similar to the same legal status granted by 2-8 this state. 2-9 SECTION 2. Section 1.105, Business and Commerce Code, is 2-10 amended by adding Subsections (d) and (e) to read as follows: 2-11 (d) Any document executed in another state shall not be 2-12 enforceable in this state unless: 2-13 (1) the formalities and requirements for execution in 2-14 the state where the document was executed are: 2-15 (A) substantially similar to the requirements 2-16 for a substantially similar document in this state; or 2-17 (B) the purposes for the formalities and 2-18 requirements required in this state for document execution are 2-19 otherwise fulfilled in another state without the formalities or 2-20 requirements; 2-21 (2) any applicable filing requirements in the state 2-22 where the document was executed are substantially similar to any 2-23 applicable filing requirements for a similar document in this 2-24 state; 2-25 (3) any civil remedies in the state where the document 2-26 was executed are substantially similar to the civil remedies in 3-1 this state; and 3-2 (4) the document may be enforced in a substantially 3-3 similar manner in the state where the document was executed as in 3-4 this state. 3-5 (e) Any legal status granted in another state may not be 3-6 asserted in this state: 3-7 (1) without the formal execution of a document in 3-8 another state if similar legal status would not be granted in this 3-9 state without the execution of a formal document; and 3-10 (2) unless the requirements and limitations in another 3-11 state are substantially similar to the same legal status granted by 3-12 this state. 3-13 SECTION 3. The importance of this legislation and the 3-14 crowded condition of the calendars in both houses create an 3-15 emergency and an imperative public necessity that the 3-16 constitutional rule requiring bills to be read on three several 3-17 days in each house be suspended, and this rule is hereby suspended, 3-18 and that this Act take effect and be in force from and after its 3-19 passage, and it is so enacted.