HB2884 - Relating to the required disclosure of certain financial relationships in civil actions regarding the activities of United States defense contractors.

      H.B. No. 2884         AN ACT   relating to the required disclosure of certain financial   relationships in civil actions regarding the activities of United   States defense contractors.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 2, Civil Practice and Remedies   Code, is amended by adding Chapter 28 to read as follows:   CHAPTER 28.   ACTIONS REGARDING ACTIVITIES OF UNITED STATES DEFENSE   CONTRACTORS           Sec. 28.001.  DEFINITIONS. In this chapter:                 (1)     "Defense contractor" means any entity that   is   engaged in the production, manufacturing, or provision of defense   articles or defense services to the United States Department of   Defense under the International Traffic in Arms Regulations (22   C.F.R. Parts 120-130).                 (2)     "Sanctioned or embargoed nation" means any foreign   nation subject to sanctions or an embargo under the Arms Export   Control Act (22 U.S.C. Section 2751 et seq.), as determined by the   United States Department of State.           Sec.   28.002.     APPLICABILITY OF CHAPTER. This chapter   applies only to a civil action regarding the activities of a defense   contractor, regardless of whether the contractor is a party.           Sec.   28.003.     REQUIRED DISCLOSURES RELATED TO FUNDING OR   FUNDING SOURCES. (a)   In a civil action subject to this chapter, a   claimant must disclose, as part of initial disclosures required   under Rule 194, Texas Rules of Civil Procedure:                 (1)     whether the claimant or the claimant's attorney   has received, directly or indirectly, funding or financial support   from any individual, entity, or government affiliated with a   sanctioned or embargoed nation; and                 (2)     the identity of all sources of funding or   financial support described by Subdivision (1).           (b)     A claimant has a continuing obligation to supplement the   disclosures required under this section during the pendency of the   action with information on the following that occur after the   initial disclosures are made:                 (1)     the claimant or the claimant's attorney receiving,   directly or indirectly, money from an individual, entity, or   government affiliated with a sanctioned or embargoed nation; and                 (2)     the claimant or the claimant's attorney   identifying a source of funding or financial support described by   Subsection (a)(1).           (c)     A claimant must make a disclosure required by this   section not later than the 10th day after the date the claimant or   the claimant's attorney receives the money or identifies a source   of funding or financial support, as applicable.           (d)     A disclosure required by this section must be made under   oath and filed with the court.           Sec.   28.004.     WITHHOLDING DISCLOSURE PROHIBITED. (a)   A   disclosure required by Section 28.003 may not be delayed, excluded,   or withheld for any reason, including because of a claim the   information is privileged or otherwise exempted from disclosure.           (b)     A court may not grant a motion by a claimant to limit the   disclosure of proprietary or confidential information related to   money or sources of funding or financial support described by   Section 28.003.           Sec.   28.005.     SANCTIONS. In addition to any other sanctions   the court is permitted to impose under law, if a claimant fails to   comply with this chapter, the court may:                 (1)     stay the proceeding until the required disclosure   is made; or                 (2)     dismiss the action with prejudice on a finding of   wilful noncompliance.          SECTION 2.  Chapter 28, Civil Practice and Remedies Code, as   added by this Act, applies only to an action that is pending in a   trial court on the effective date of this Act or that is filed on or   after the effective date of this Act.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2884 was passed by the House on April   24, 2025, by the following vote:  Yeas 138, Nays 5, 2 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 2884 was passed by the Senate on May   14, 2025, by the following vote:  Yeas 30, Nays 1.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor