By Harris S.B. No. 309 74R3681 DLF-F 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 holding a certificate 1-9 or registration issued by the Texas State Board of Public 1-10 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 Sec. 91.002. LIABILITY LIMITED. Except as provided by 1-15 Section 91.003, an accountant is not liable for an act or omission 1-16 in connection with the provision of public accountancy services to 1-17 the claimant, including examining, compiling, reviewing, 1-18 certifying, auditing, providing an opinion about, or otherwise 1-19 reporting on a financial statement or other information in the 1-20 course of an engagement to provide other public accountancy 1-21 services to the claimant. 1-22 Sec. 91.003. EXCEPTIONS. Section 91.002 does not apply if: 1-23 (1) the claimant: 1-24 (A) issued the financial statement or 2-1 information or is a successor of the person that issued the 2-2 financial statement or information; and 2-3 (B) engaged the accountant to examine, compile, 2-4 review, certify, audit, provide an opinion about, or otherwise 2-5 report on a financial statement or other information, or to provide 2-6 other public accounting services; or 2-7 (2) the accountant: 2-8 (A) was aware at the time the services of the 2-9 accountant were engaged that the financial statement or other 2-10 information would be made available to the claimant for use in 2-11 connection with a specified transaction and the claimant was 2-12 specifically identified to the accountant; 2-13 (B) communicated directly with the claimant 2-14 concerning the financial statement or other information; and 2-15 (C) was aware that the claimant intended to rely 2-16 on the financial statement or other information in connection with 2-17 the specified transaction and communicated that awareness by words 2-18 or conduct. 2-19 SECTION 2. This Act takes effect September 1, 1995, and 2-20 applies only to a suit that is commenced on or after that date. A 2-21 suit that is commenced before the effective date of this Act is 2-22 governed by the law in effect immediately before the effective date 2-23 of this Act, and that law is continued in effect for that purpose. 2-24 SECTION 3. The importance of this legislation and the 2-25 crowded condition of the calendars in both houses create an 2-26 emergency and an imperative public necessity that the 2-27 constitutional rule requiring bills to be read on three several 3-1 days in each house be suspended, and this rule is hereby suspended.