Texas Senate Bill SB847

Texas 2017 - 85th Regular

Caption

Relating to abolishing the regulation of for-profit legal service contract companies.

Impact

The enactment of SB847 would lead to the immediate dismissal of any disciplinary proceedings linked to the regulations of former Chapter 953 and cause any existing licenses issued under that chapter to expire. Furthermore, the Texas Commission of Licensing and Regulation is mandated to repeal any associated rules regarding the operation of for-profit legal service contract providers. This could lead to significant changes in how these companies operate, potentially increasing their market competitiveness but also raising questions about consumer protection.

Summary

SB847 is a legislative measure proposed to abolish the regulation of for-profit legal service contract companies in the state of Texas. The bill's primary goal is to repeal Chapter 953 from the Occupations Code, which previously established the framework for overseeing these companies. By doing so, SB847 intends to remove any statutory requirements and regulations that were in place for these entities, effectively deregulating their operations in Texas. Proponents of the bill may argue that this move could enhance business freedoms for these companies, allowing them to operate without the constraints of state oversight.

Contention

Notably, there are potential points of contention surrounding this bill, especially regarding consumer rights and protections. The lack of regulation may lead to greater exploitation or abuse in the provision of legal services, particularly among vulnerable populations who rely on these services. Critics of SB847 could argue that without state oversight, for-profit legal service contract companies might engage in practices that could harm consumers, such as charging exorbitant fees or failing to deliver promised services, thereby jeopardizing public trust in such entities.