By Brimer H.B. No. 505 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain acts of public accountants. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 4, Civil Practice and Remedies Code, is 1-5 amended by adding Chapter 91 to read as follows: 1-6 CHAPTER 91. PUBLIC ACCOUNTANTS 1-7 Sec. 91.001. DEFINITIONS. In this chapter: 1-8 (1) "Accountant" means a person or firm holding a 1-9 certificate or registration issued by the Texas State Board of 1-10 Public Accountancy. 1-11 (2) "Claimant" means a party, including a plaintiff, 1-12 counterclaimant, cross-claimant, or third-party claimant, seeking 1-13 recovery of damages from an accountant. 1-14 (3) "Client" means the party directly engaging an 1-15 accountant to provide public accountancy services, including 1-16 examining, compiling, reviewing, certifying, auditing, providing an 1-17 opinion about, or otherwise reporting on a financial statement or 1-18 other information. 1-19 Sec. 91.002. LIABILITY LIMITED. Except as provided by 1-20 Section 91.003, an accountant is not liable to a claimant for 1-21 negligence with respect to an act or omission in connection with 1-22 the provision of public accountancy services, including examining, 1-23 compiling, reviewing, certifying, auditing, providing an opinion 2-1 about, or otherwise reporting on a financial statement or other 2-2 information. 2-3 Sec. 91.003. EXCEPTIONS. Section 91.002 does not apply: 2-4 (1) where the claimant is the client; or 2-5 (2) where the accountant was aware at the time the 2-6 services of the accountant were engaged, or agreed with the client 2-7 after the time of the engagement, that the claimant intended to 2-8 rely on a specific financial statement or other information in 2-9 connection with a specified transaction and communicated that 2-10 awareness or agreement by words or conduct; or 2-11 (3) to acts or omissions by an accountant involving 2-12 fraud. 2-13 Sec. 91.004. WAIVER. An accountant may, in writing, waive 2-14 the provisions of this chapter. 2-15 SECTION 2. This Act takes effect September 1, 1995, and 2-16 applies only to a suit that is commenced on or after that date. A 2-17 suit that is commenced before the effective date of this Act is 2-18 governed by the law in effect immediately before the effective date 2-19 of this Act, and that law is continued in effect for that purpose. 2-20 SECTION 3. The importance of this legislation and the 2-21 crowded condition of the calendars in both houses create an 2-22 emergency and an imperative public necessity that the 2-23 constitutional rule requiring bills to be read on three several 2-24 days in each house be suspended, and this rule is hereby suspended.