By Davis of Harris                                    H.B. No. 2592
         77R5959 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to fee agreements between attorneys and property owners'
 1-3     associations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 82, Government Code, is amended by adding
 1-6     Section 82.067 to read as follows:
 1-7           Sec. 82.067.  CONTINGENT FEE FOR CERTAIN LEGAL SERVICES
 1-8     PROHIBITED. (a)  In this section, "property owners' association"
 1-9     has the meaning assigned by Section 202.001, Property Code.
1-10           (b)  An attorney may not enter into a contingent fee contract
1-11     to represent a property owners' association in matters involving
1-12     violations of:
1-13                 (1)  restrictions applicable to the subdivision
1-14     represented by the association; or
1-15                 (2)  the association's bylaws and rules.
1-16           SECTION 2. This Act takes effect September 1, 2001, and
1-17     applies only to a contract entered into on or after that date.  A
1-18     contract entered into before September 1, 2001, is governed by the
1-19     law in effect immediately before that date, and that law is
1-20     continued in effect for that purpose.