1-1  By:  Brimer (Senate Sponsor - Harris)                  H.B. No. 505
    1-2        (In the Senate - Received from the House May 11, 1995;
    1-3  May 12, 1995, read first time and referred to Committee on Economic
    1-4  Development; May 23, 1995, reported favorably by the following
    1-5  vote:  Yeas 7, Nays 3; May 23, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to certain acts of public accountants.
    1-9        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-10        SECTION 1.  Title 4, Civil Practice and Remedies Code, is
   1-11  amended by adding Chapter 91 to read as follows:
   1-12                    CHAPTER 91.  PUBLIC ACCOUNTANTS
   1-13        Sec. 91.001.  DEFINITIONS.  In this chapter:
   1-14              (1)  "Accountant" means a person or firm holding a
   1-15  certificate or registration issued by the Texas State Board of
   1-16  Public Accountancy.
   1-17              (2)  "Claimant" means a party, including a plaintiff,
   1-18  counterclaimant, cross-claimant, or third-party claimant, seeking
   1-19  recovery of damages from an accountant.
   1-20              (3)  "Client" means the party directly engaging an
   1-21  accountant to provide public accountancy services, including
   1-22  examining, compiling, reviewing, certifying, auditing, providing an
   1-23  opinion about, or otherwise reporting on a financial statement or
   1-24  other information.
   1-25        Sec. 91.002.  LIABILITY LIMITED.  Except as provided by
   1-26  Section 91.003, an accountant is not liable to a claimant for
   1-27  negligence with respect to an act or omission in connection with
   1-28  the provision of public accountancy services, including examining,
   1-29  compiling, reviewing, certifying, auditing, providing an opinion
   1-30  about, or otherwise reporting on a financial statement or other
   1-31  information.
   1-32        Sec. 91.003.  EXCEPTIONS.  Section 91.002 does not apply:
   1-33              (1)  where the claimant is the client; or
   1-34              (2)  where the accountant was aware at the time the
   1-35  services of the accountant were engaged, or agreed with the client
   1-36  after the time of the engagement, that the claimant intended to
   1-37  rely on a specific financial statement or other information in
   1-38  connection with a specified transaction and communicated that
   1-39  awareness or agreement by words or conduct; or
   1-40              (3)  to acts or omissions by an accountant involving
   1-41  fraud.
   1-42        Sec. 91.004.  WAIVER.  An accountant may, in writing, waive
   1-43  the provisions of this chapter.
   1-44        SECTION 2.  This Act takes effect September 1, 1995, and
   1-45  applies only to a suit that is commenced on or after that date.  A
   1-46  suit that is commenced before the effective date of this Act is
   1-47  governed by the law in effect immediately before the effective date
   1-48  of this Act, and that law is continued in effect for that purpose.
   1-49        SECTION 3.  The importance of this legislation and the
   1-50  crowded condition of the calendars in both houses create an
   1-51  emergency and an imperative public necessity that the
   1-52  constitutional rule requiring bills to be read on three several
   1-53  days in each house be suspended, and this rule is hereby suspended.
   1-54                               * * * * *