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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of foreign laws and foreign forum |
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selection in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 6, Civil Practice and Remedies Code, is |
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amended by adding Chapter 148 to read as follows: |
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CHAPTER 148. APPLICATION OF FOREIGN LAWS; SELECTION OF FOREIGN |
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FORUM |
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Sec. 148.001. DEFINITION. In this chapter, "foreign law" |
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means a law, rule, or legal code of a jurisdiction outside of the |
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states and territories of the United States. The term does not |
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include a law of a Native American tribe of a state or territory of |
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the United States. |
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Sec. 148.002. DECISION BASED ON FOREIGN LAW. A ruling or |
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decision of a court, arbitrator, or administrative adjudicator may |
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not be based on a foreign law if the application of that law would |
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violate a right guaranteed by the United States Constitution or the |
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constitution of this state. |
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Sec. 148.003. CHOICE OF FOREIGN LAW OR FORUM IN CONTRACT. |
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(a) A contract provision providing that a foreign law is to govern |
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a dispute arising under the contract is void to the extent that the |
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application of the foreign law to the dispute would violate a right |
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guaranteed by the United States Constitution or the constitution of |
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this state. |
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(b) A contract provision providing that the forum to resolve |
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a dispute arising under the contract is located outside the states |
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and territories of the United States is void if the foreign law that |
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would be applied to the dispute in that forum would, as applied, |
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violate a right guaranteed by the United States Constitution or the |
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constitution of this state. |
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Sec. 148.004. LIMITATION ON FORUM NON CONVENIENS. If a |
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resident of this state commences an action in this state, a court |
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may not grant a motion for forum non conveniens if the foreign law |
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that would be applied to the dispute in the forum to which the |
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moving party seeks to have the action removed would, as applied, |
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violate a right guaranteed by the United States Constitution or the |
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constitution of this state. |
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SECTION 2. (a) Section 148.002, Civil Practice and |
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Remedies Code, as added by this Act, applies only to a ruling or |
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decision that becomes final on or after the effective date of this |
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Act. A ruling or decision that becomes final before the effective |
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date of this Act and any appeal of that ruling or decision are |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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(b) Section 148.003, Civil Practice and Remedies Code, as |
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added by this Act, applies only to a contract entered into on or |
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after the effective date of this Act. A contract entered into |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date, and that law is continued in |
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effect for that purpose. |
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(c) Section 148.004, Civil Practice and Remedies Code, as |
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added by this Act, applies only to a motion for forum non conveniens |
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made on or after the effective date of this Act. A motion for forum |
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non conveniens made before the effective date of this Act is |
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governed by the law in effect immediately before that date, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |