By: Carona, Birdwell, Paxton S.B. No. 1639

(In the Senate - Filed March 8, 2013; March 20, 2013, read first time and referred to Committee on Jurisprudence; March 25, 2013, referred to Committee on Business and Commerce; April 15, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 4; April 15, 2013, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1639 By: Carona

A BILL TO BE ENTITLED

AN ACT

relating to the application of foreign laws and foreign forum selection in certain family law proceedings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 1, Family Code, is amended by adding Chapter 1A to read as follows:

CHAPTER 1A. APPLICATION OF FOREIGN LAW

Sec. 1A.001. DEFINITIONS. In this chapter:

(1) "Arbitrator" means an arbitrator or arbitration panel.

(2) "Foreign law" means a substantive or procedural law, rule, or legal code of a jurisdiction outside of the states and territories of the United States. The term does not include a law of a Native American tribe of the states and territories of the United States.

(3) "Foreign tribunal" means any tribunal outside the states and territories of the United States. The term does not include a tribunal of a Native American tribe of a state or territory of the United States.

(4) "Tribunal" means any court or administrative adjudicator.

Sec. 1A.002. DECISION BASED ON FOREIGN LAW. A tribunal of this state may not apply foreign law to adjudicate a suit for dissolution of a marriage if the application of that law would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 1A.003. CHOICE OF LAW IN CONTRACT. A contract provision requiring the application of foreign law to adjudicate a suit for dissolution of a marriage is void to the extent that the application of foreign law would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 1A.004. ENFORCEMENT OF JUDGMENT BASED ON FOREIGN LAW. A tribunal of this state may not enforce or grant comity to a finding, ruling, order, or judgment in a suit for dissolution of a marriage issued by an arbitrator or foreign tribunal based on foreign law if the foreign law, as applied, would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 1A.005. CHOICE OF FORUM IN CONTRACT. Any contract provision requiring that a foreign tribunal or arbitrator adjudicate a suit for dissolution of a marriage is void if the foreign law that would be applied to the dispute by that tribunal or arbitrator would, as applied, not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 1A.006. FORUM NON CONVENIENS. A tribunal of this state that has jurisdiction to adjudicate a suit for dissolution of a marriage may not decline jurisdiction because a foreign tribunal is a more convenient forum if the foreign tribunal would apply foreign law that would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 1A.007. APPLICATION OF CHAPTER. (a) This chapter does not apply to:

(1) a corporation or other legal entity that contracts to subject the entity to foreign law before a foreign tribunal or arbitrator;

(2) any transaction that is primarily for business, commercial, investment, agricultural, or similar purposes; or

(3) any transaction, issue, agreement, or provision of an agreement governed by Chapter 271, Business & Commerce Code.

(b) This chapter is inapplicable to the extent a statute or treaty of the United States requires the application of foreign law or the enforcement of a judgment rendered by a foreign tribunal.

SECTION 2. Subtitle A, Title 5, Family Code, is amended by adding Chapter 112 to read as follows:

CHAPTER 112. APPLICATION OF FOREIGN LAW

Sec. 112.001. DEFINITIONS. In this chapter:

(1) "Arbitrator" means an arbitrator or arbitration panel.

(2) "Foreign law" means a law, rule, or legal code of a jurisdiction outside of the states and territories of the United States. The term does not include a law of a Native American tribe of the states and territories of the United States.

(3) "Foreign tribunal" means any tribunal outside the states and territories of the United States. The term does not include a tribunal of a Native American tribe of a state or territory of the United States.

(4) "Tribunal" means any court or administrative adjudicator.

Sec. 112.002. DECISION BASED ON FOREIGN LAW. A tribunal of this state may not apply foreign law to adjudicate a suit affecting the parent-child relationship if the application of that law would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 112.003. CHOICE OF LAW IN CONTRACT. A contract provision requiring the application of foreign law to adjudicate a suit affecting the parent-child relationship is void to the extent that the application of foreign law would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 112.004. ENFORCEMENT OF JUDGMENT BASED ON FOREIGN LAW. A tribunal of this state may not enforce or grant comity to a finding, ruling, order, or judgment in a suit affecting the parent-child relationship issued by an arbitrator or foreign tribunal based on foreign law if the foreign law, as applied, would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 112.005. CHOICE OF FORUM IN CONTRACT. Any contract provision requiring that a foreign tribunal or arbitrator adjudicate a suit affecting the parent-child relationship is void if the foreign law that would be applied to the dispute by that tribunal or arbitrator would, as applied, not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 112.006. FORUM NON CONVENIENS. A tribunal of this state that has jurisdiction to adjudicate a suit affecting the parent-child relationship may not decline jurisdiction because a foreign tribunal is a more convenient forum if the foreign tribunal would apply foreign law that would not guarantee the same fundamental rights guaranteed by the United States Constitution.

Sec. 112.007. APPLICATION OF CHAPTER. (a) This chapter does not apply to:

(1) a corporation or other legal entity that contracts to subject the entity to foreign law before a foreign tribunal or arbitrator;

(2) any transaction that is primarily for business, commercial, investment, agricultural, or similar purposes; or

(3) any transaction, issue, agreement, or provision of an agreement governed by Chapter 271, Business & Commerce Code.

(b) This chapter is inapplicable to the extent a statute or treaty of the United States requires the application of foreign law or the enforcement of a judgment rendered by a foreign tribunal.

SECTION 3. Chapter 271, Business & Commerce Code, is amended by adding Section 271.012 to read as follows:

Sec. 271.012. APPLICATION OF CERTAIN FAMILY LAW PROVISIONS. Chapters 1A and 112, Family Code, do not apply to this chapter.

SECTION 4. Chapters 1A and 112, Family Code, as added by this Act, apply to a suit for dissolution of a marriage or a suit affecting the parent-child relationship pending in a trial court on or filed on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2013.

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