| 1 | 1 | | 81R4313 KLA-D |
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| 2 | 2 | | By: Naishtat H.B. No. 2825 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the disclosure of a lack of professional liability |
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| 8 | 8 | | insurance coverage by certain attorneys. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter H, Chapter 81, Government Code, is |
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| 11 | 11 | | amended by adding Section 81.117 to read as follows: |
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| 12 | 12 | | Sec. 81.117. DISCLOSURE OF LACK OF PROFESSIONAL LIABILITY |
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| 13 | 13 | | INSURANCE. (a) The supreme court shall promulgate rules that |
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| 14 | 14 | | require an attorney engaged in the practice of law in this state who |
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| 15 | 15 | | is not covered by professional liability insurance covering claims |
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| 16 | 16 | | arising from providing or failing to provide legal services to: |
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| 17 | 17 | | (1) display in a prominent location in the attorney's |
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| 18 | 18 | | place of business a notice stating that the attorney is not covered |
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| 19 | 19 | | by professional liability insurance; or |
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| 20 | 20 | | (2) provide notice of that information in another |
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| 21 | 21 | | manner to the attorney's clients and prospective clients. |
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| 22 | 22 | | (b) In promulgating rules under this section, the supreme |
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| 23 | 23 | | court shall: |
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| 24 | 24 | | (1) specify the form and content of the notice |
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| 25 | 25 | | described by Subsection (a); and |
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| 26 | 26 | | (2) provide for enforcement of the rules promulgated |
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| 27 | 27 | | under this section, including providing that a person may file a |
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| 28 | 28 | | grievance, and the state bar may take disciplinary action for a |
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| 29 | 29 | | violation, in the same manner that a grievance is filed and the |
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| 30 | 30 | | state bar takes disciplinary action for conduct that constitutes |
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| 31 | 31 | | professional misconduct under the Texas Disciplinary Rules of |
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| 32 | 32 | | Professional Conduct. |
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| 33 | 33 | | SECTION 2. The Texas Supreme Court shall adopt rules as |
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| 34 | 34 | | required by Section 81.117, Government Code, as added by this Act, |
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| 35 | 35 | | not later than December 1, 2009. |
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| 36 | 36 | | SECTION 3. This Act takes effect immediately if it receives |
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| 37 | 37 | | a vote of two-thirds of all the members elected to each house, as |
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| 38 | 38 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 39 | 39 | | Act does not receive the vote necessary for immediate effect, this |
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| 40 | 40 | | Act takes effect September 1, 2009. |
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