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A BILL TO BE ENTITLED
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AN ACT
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Relating to the regulation of certain companies that provide |
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for-profit legal service contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 953.001, Occupations Code, is amended as |
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follows: |
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Sec. 953.001. DEFINITION[S]. In this chapter [:
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[(1)
"Administrator" means the person responsible for
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the administration of a legal service contract. The term includes a
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person responsible for any filing required by this chapter.
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[(2) "Company" means a person who:
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[(A)
is contractually obligated to a legal
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service contract holder under the terms of a legal service
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contract;
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[(B)
enters into a contract with a contracting
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attorney to provide or obtain covered legal services for a legal
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service contract holder; and
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[(C)
operates as a for-profit legal service
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contract company.
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[(3)
"Contracting attorney" means an attorney who has
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entered into a contract with a company to provide or obtain covered
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legal services for a legal service contract holder.
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[(4)
"Department" means the Texas Department of
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Licensing and Regulation.
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[(5)
"Executive director" means the executive
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director of the Texas Department of Licensing and Regulation or the
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executive director's designee.
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[(6)
"Financial security" means a surety bond, a
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certificate of deposit, or any other item approved by the executive
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director.
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[(7)] "Legal service contract" means an agreement: |
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(A) that is entered into for a separately stated |
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consideration; and |
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(B) under which the company obtains legal |
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services for a legal service contract holder through a contracting |
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attorney. |
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[(8)
"Legal service contract holder" means the person
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who purchases or otherwise holds a legal service contract or who is
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covered under a group legal service contract.
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[(9)
"Person" means an individual or a partnership,
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company, corporation, association, or other private group.
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[(10)
"Sales representative" means a person who sells
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or solicits legal service contracts to a person on behalf of a
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company.] |
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SECTION 2. Sections 953.002 and 953.003, Occupations Code, |
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are amended as follows: |
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Sec. 953.002. [EXEMPTIONS. This chapter does not apply to:
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[(1)
a nonprofit legal services corporation under
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Chapter 961, Insurance Code;
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[(2)
an automobile club supplying services under
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Chapter 722, Transportation Code;
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[(3)
a prepaid legal services program under Chapter
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951;
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[(4) a lawyer referral service under Chapter 952;
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[(5)
a retainer contract between an attorney and a
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client, and similar contracts made with a group of clients involved
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in the same or closely related legal matters; or
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[(6)
a contingency fee contract between an attorney
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and a client.
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[Sec. 953.003.] EXEMPTIONS FROM CERTAIN OTHER LAWS. |
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The acts of marketing, selling, offering for sale, issuing, making, |
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proposing to make, and administering a legal service contract [that
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is regulated by this chapter] are exempt from the Insurance Code and |
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other laws of this state regulating the business of insurance. |
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SECTION 3. On the effective date of this Act, the following |
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provisions of the Occupations Code are repealed: |
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(1) Section 953.004, Occupations Code; |
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(2) Section 953.005, Occupations Code; |
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(3) Subchapter B, Chapter 953, Occupations Code; |
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(4) Subchapter C, Chapter 953, Occupations Code; |
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(5) Subchapter D, Chapter 953, Occupations Code; and |
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(6) Subchapter E, Chapter 953, Occupations Code. |
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SECTION 4. This Act takes effect September 1, 2018. |