85R12758 YDB-F
By: Shaheen H.B. No. 3627
A BILL TO BE ENTITLED
AN ACT
relating to compliance with ethical and statutory requirements by
out-of-state attorneys providing legal services in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle G, Title 2, Government Code, is amended
by adding Chapter 85 to read as follows:
CHAPTER 85. LEGAL SERVICES CONTRACTS BY OUT-OF-STATE ATTORNEYS
Sec. 85.001. PUBLIC POLICY. It is the public policy of this
state that an out-of-state attorney who is not a member of the State
Bar of Texas and who under a legal services contract represents or
advises a client in this state or appears as counsel in any matter
in a court or domestic arbitration proceeding in this state be
required to comply with all state law and ethical duties imposed by
the state disciplinary rules and codes of ethics applicable to
members of the State Bar of Texas.
Sec. 85.002. PROHIBITED CONTRACTS AND ENFORCEMENT. (a) An
out-of-state attorney who is not a member of the State Bar of Texas
may not enter into a legal services contract to represent or advise
clients in this state or appear as counsel in any matter in a court
or domestic arbitration proceeding in this state unless the
attorney complies with all state laws and ethical duties imposed by
the state disciplinary rules and codes of ethics applicable to
members of the State Bar of Texas.
(b) Any obligation created by or relating to a contract
prohibited under Subsection (a) is not enforceable by a judge or
arbitrator in a court or arbitration proceeding in this state.
Sec. 85.003. LEGAL SERVICE CONTRACT REQUIREMENTS. (a) A
contract entered into by an out-of-state attorney who is not a
member of the State Bar of Texas, or by the law firm with whom the
attorney is associated, to provide legal services related to any
state court or domestic arbitration proceeding conducted in this
state is valid only if the attorney, and law firm if applicable, are
subject to discipline for violations of any disciplinary rules and
codes of ethics applicable to members of the State Bar of Texas.
(b) A contract for legal services described by Subsection
(a) must require that:
(1) the out-of-state attorney, or law firm as
applicable, notify the office of chief disciplinary counsel of the
State Bar of Texas about the contract on its execution;
(2) each attorney providing legal services under the
contract affirmatively agree to comply with all disciplinary rules
and codes of ethics applicable to members of the State Bar of Texas;
(3) each attorney providing legal services under the
contract affirmatively agree to be subject to the jurisdiction of
this state's disciplinary authorities in the same manner and to the
same extent as members of the State Bar of Texas; and
(4) each attorney providing legal services under the
contract affirmatively agree to reciprocal enforcement by the bar
association of the jurisdiction in which the attorney is licensed
for any decision, determination, discipline, or sanction imposed by
attorney disciplinary authorities in this state.
Sec. 85.004. VOIDABLE CONTRACTS. A legal services contract
that does not comply with this chapter is null, void, and
unenforceable.
Sec. 85.005. LIABILITY. A person is not liable under or
obligated to pay for any legal service performed under a legal
services contract that does not comply with this chapter.
SECTION 2. The changes in law made by this Act apply only to
a legal services contract entered into on or after the effective
date of this Act. A contract entered into before that date is
governed by the law in effect on the date the contract was entered
into and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.