87R14026 TYPED
By: Huffman S.B. No. 1821
A BILL TO BE ENTITLED
AN ACT
relating to contingent fee contracts for legal services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2254.101, Government Code, is amended to
read as follows:
Sec. 2254.101. DEFINITIONS. In this subchapter:
(2) "Contingent fee contract" means a contract for
legal services under which the amount or the payment of the fee for
the services is contingent in whole or in part on the outcome of the
matter for which the services were obtained. A "contingent fee
contract" includes an amendment to a contingent fee contract if the
amendment changes the scope of representation or may result in the
filing of a lawsuit or the amending of a petition in an existing
lawsuit.
SECTION 2. The changes in law made by this Act apply to a
contract or contract amendment signed or entered into 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, 2021.