By Danburg                                            H.B. No. 2824
       74R7856 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to suits against certain real estate agents and brokers
    1-3  under the Deceptive Trade Practices-Consumer Protection Act.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 17.49, Business & Commerce Code, is
    1-6  amended by adding Subsection (c) to read as follows:
    1-7        (c)  This subchapter does not apply to an act or practice of
    1-8  a real estate broker or agent if:
    1-9              (1)  the real estate broker or agent is covered by a
   1-10  policy of errors and omissions insurance, or similar coverage, that
   1-11  provides coverage for the liability of the broker or agent for
   1-12  damages arising as a result of the act or practice; and
   1-13              (2)  the act or practice was not committed
   1-14  intentionally or maliciously.
   1-15        SECTION 2.  This Act takes effect September 1, 1995, and
   1-16  applies only to a cause of action that accrues on or after that
   1-17  date.  An action that accrued before the effective date of this Act
   1-18  is governed by the law as it existed immediately before the
   1-19  effective date of this Act, and that law is continued in effect for
   1-20  that purpose.
   1-21        SECTION 3.  The importance of this legislation and the
   1-22  crowded condition of the calendars in both houses create an
   1-23  emergency and an imperative public necessity that the
   1-24  constitutional rule requiring bills to be read on three several
    2-1  days in each house be suspended, and this rule is hereby suspended.