By Dutton                                             H.B. No. 3109
         77R4577 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to judgment debtors.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 52.002, Civil Practice and Remedies Code,
 1-5     is amended to read as follows:
 1-6           Sec. 52.002.  BOND OR DEPOSIT FOR MONEY JUDGMENT. Except as
 1-7     provided by Section 52.0021, a [A] trial court rendering a judgment
 1-8     that awards recovery of a sum of money, other than a judgment
 1-9     rendered in a bond forfeiture proceeding, a personal injury or
1-10     wrongful death action, a claim covered by liability insurance, or a
1-11     workers' compensation claim, may set the security in an amount less
1-12     than the amount of the judgment, interest, and costs if the trial
1-13     court, after notice to all parties and a hearing, finds that:
1-14                 (1)  setting the security at an amount equal to the
1-15     amount of the judgment, interest, and costs would cause irreparable
1-16     harm to the judgment debtor; and
1-17                 (2)  setting the security at the lesser amount would
1-18     not substantially decrease the degree to which a judgment
1-19     creditor's recovery under the judgment would be secured after the
1-20     exhaustion of all appellate remedies.
1-21           SECTION 2. Chapter 52, Civil Practice and Remedies Code, is
1-22     amended by adding Section 52.0021 to read as follows:
1-23           Sec. 52.0021.  LIMITS. (a)  A trial court rendering a
1-24     judgment in a civil action that awards relief of any kind based on
 2-1     any legal theory shall set the security in an amount that is equal
 2-2     to or less than:
 2-3                 (1)  $1 million, if the judgment is greater than $1
 2-4     million but less than $100 million; or
 2-5                 (2)  $25 million, if the judgment is equal to or
 2-6     greater than $100 million.
 2-7           (b)  On proof by a preponderance of the evidence that the
 2-8     judgment debtor is intentionally dissipating or diverting assets
 2-9     outside of the ordinary course of its business for the purpose of
2-10     evading ultimate payment of the judgment, the court may enter any
2-11     order necessary to prevent the dissipation or diversion, including
2-12     requiring the judgment debtor to post security in an amount equal
2-13     to the full amount of the judgment.
2-14           SECTION 3. Section 35.006, Civil Practice and Remedies Code,
2-15     is amended to read as follows:
2-16           Sec. 35.006.  STAY. (a)  If the judgment debtor shows the
2-17     court that an appeal from the foreign judgment is pending or will
2-18     be taken, that the time for taking appeals has not expired, or that
2-19     a stay of execution has been granted, requested, or will be
2-20     requested, and proves that the judgment debtor has furnished the
2-21     security for the satisfaction of the judgment required by the state
2-22     in which it was rendered, the court shall stay enforcement of the
2-23     foreign judgment until the appeal is concluded, the time for appeal
2-24     expires, or the stay of execution expires or is vacated.
2-25           (b)  If the judgment debtor shows the court a ground on which
2-26     enforcement of a judgment of the court of this state would be
2-27     stayed, including that an appeal is pending or will be taken, that
 3-1     the time for taking appeals has not expired, or that a stay of
 3-2     execution has been granted, requested, or will be requested, the
 3-3     court shall stay enforcement of the foreign judgment for an
 3-4     appropriate period and require the same security for satisfaction
 3-5     of the judgment that is required in this state, in accordance with
 3-6     Sections 52.002 and 52.0021.
 3-7           SECTION 4.  (a)  This Act takes effect immediately if it
 3-8     receives a vote of two-thirds of all the members elected to each
 3-9     house, as provided by Section 39, Article III, Texas Constitution.
3-10     If this Act does not receive the vote necessary for immediate
3-11     effect, this Act takes effect September 1, 2001.
3-12           (b)  This Act applies only to an action commenced or pending
3-13     on or after the effective date of this Act without regard to
3-14     whether the judgment in the action was entered before, on, or after
3-15     that date.
3-16           (c)  An action not commenced or pending on or after the
3-17     effective date of this Act is governed by the law applicable to the
3-18     action immediately before the effective date, and that law is
3-19     continued in effect for that purpose.