By: Harris S.B. No. 1614
97S0849/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to certain unauthorized practice of law.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (a), Section 83.001, Government Code,
1-4 is amended to read as follows:
1-5 (a) A person, partnership, corporation, or other entity,
1-6 other than a person described in Subsection (b), may not charge or
1-7 receive, either directly or indirectly, any compensation for all or
1-8 any part of the preparation of a legal instrument affecting title
1-9 to real property, including a deed, deed of trust, note, mortgage,
1-10 and transfer or release of lien. As used in this section,
1-11 "compensation" includes but is not limited to interest and any
1-12 other cost, fee, or charge made in connection with a loan secured
1-13 by a lien on real property.
1-14 SECTION 2. Section 83.002, Government Code, is amended to
1-15 read as follows:
1-16 Sec. 83.002. EXPENSES. This chapter does not prevent an
1-17 attorney from paying secretarial, paralegal, or other ordinary and
1-18 reasonable expenses necessarily and actually incurred by the
1-19 attorney for the preparation of legal instruments. However, no
1-20 such payments shall be made by an attorney directly or indirectly
1-21 to a party to the transaction for which the legal documents are
1-22 prepared.
1-23 SECTION 3. This Act takes effect September 1, 1997.
2-1 SECTION 4. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended.