Relating to the required disclosure of certain financial relationships in civil actions regarding the activities of United States defense contractors, the official text

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