By Brimer                                             H.B. No. 1775
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the unauthorized practice of law, providing penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 38.123, Penal Code, is amended to read as
 1-5     follows:
 1-6           (a)  A person commits an offense if, with intent to obtain an
 1-7     economic benefit for himself or herself, the person:
 1-8                 (1)  contracts with any person to represent that person
 1-9     with regard to personal causes of action or other legal matters
1-10     normally reserved to persons licensed to practice law in this
1-11     state, another state, or a foreign country [for property damages or
1-12     personal injury];
1-13                 (2)  advises any person as to the person's legal
1-14     rights, including rights relating to family law, immigration law,
1-15     tax law, tort law, and criminal law, and the advisability of making
1-16     any legal claims [for personal injuries or property damages];
1-17                 (3)  advises any person as to whether or not to accept
1-18     an offered sum of money in settlement of any legal claim[s for
1-19     personal injuries or property damages];
1-20                 (4)  enters into any contract with another person to
1-21     represent that person in any legal matter normally reserved to
1-22     persons licensed to practice law in this state, another state, or a
 2-1     foreign country [personal injury or property damage matters] on a
 2-2     contingent fee basis with an attempted assignment of a portion of
 2-3     the person's cause of action; or
 2-4                 (5)  enters into any contract with a third person which
 2-5     purports to grant the exclusive right to select and retain legal
 2-6     counsel to represent the individual in any legal proceeding.
 2-7           (b)  This section does not apply to a person currently
 2-8     licensed to practice law in this state, another state, or a foreign
 2-9     country and in good standing with the State Bar of Texas and the
2-10     state bar or licensing authority of any and all other states and
2-11     foreign countries where licensed.
2-12           (c)  Except as provided by Subsection (d) of this section, an
2-13     offense under Subsection (a) of this section is a Class A
2-14     misdemeanor.
2-15           (d)  An offense under Subsection (a) of this section is a
2-16     felony of the third degree if it is shown on the trial of the
2-17     offense that the defendant has previously been convicted under
2-18     Subsection (a) of this section.
2-19           SECTION 2.  This Act takes effect September 1, 2001.