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.