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A BILL TO BE ENTITLED
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AN ACT
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relating to certain deceptive advertising of legal services; |
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imposing civil penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 81, Government Code, is amended by |
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adding Subchapter J to read as follows: |
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SUBCHAPTER J. DECEPTIVE ADVERTISING PRACTICES |
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Sec. 81.151. DEFINITIONS. In this subchapter: |
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(1) "Advertisement" means a communication that |
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provides information promoting a person's provision of legal |
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services. The term includes a communication through television, |
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radio, newspaper or other periodical, outdoor display, or other |
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written, electronic, or recorded communication, including an |
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Internet website operated for a commercial purpose. |
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(2) "Soliciting" means offering to provide legal |
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services through a written, recorded, or electronic communication |
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or by an in-person, telephone, or real-time electronic contact. |
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Sec. 81.152. PROHIBITED ADVERTISING. An advertisement for |
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legal services may not: |
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(1) present the advertisement as a "medical alert," |
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"health alert," "consumer alert," "public service announcement," |
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or similar phrase; |
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(2) display the logo of a federal or state government |
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agency in a manner that suggests affiliation with or sponsorship by |
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that agency; or |
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(3) use the term "recall" when referring to a product |
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that has not been recalled by a government agency or through an |
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agreement between a manufacturer and government agency. |
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Sec. 81.153. REQUIRED WARNINGS AND DISCLOSURES. (a) An |
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advertisement for legal services must disclose: |
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(1) at the beginning of the advertisement, "This is a |
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paid advertisement for legal services."; |
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(2) the identity of the sponsor of the advertisement; |
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and |
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(3) either: |
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(A) the identity of the attorney or law firm that |
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provides legal services to a client; or |
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(B) the manner in which a case is referred to an |
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attorney or law firm if the sponsor of the advertisement is not |
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legally authorized to provide legal services to a person responding |
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to the advertisement. |
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(b) An advertisement for legal services soliciting clients |
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who may allege an injury from a prescription drug approved by the |
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United States Food and Drug Administration must: |
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(1) include the warning: "Do not stop taking a |
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prescribed medication without first consulting with your |
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physician. Discontinuing a prescribed medication without seeking |
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your physician's advice can result in injury or death."; and |
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(2) disclose that the drug is approved by the United |
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States Food and Drug Administration unless the product has been |
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recalled or withdrawn. |
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(c) An advertisement for legal services soliciting clients |
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who may allege an injury from a medical device approved by the |
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United States Food and Drug Administration must disclose that the |
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medical device is approved by the United States Food and Drug |
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Administration unless the product has been recalled or withdrawn. |
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Sec. 81.154. FORM OF REQUIRED WARNINGS AND DISCLOSURES. |
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(a) Any warning or disclosure statement required by this |
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subchapter to appear in an advertisement must be presented clearly |
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and conspicuously. |
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(b) A written disclosure must be legible and, if televised |
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or displayed electronically, must be displayed for sufficient time |
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to enable the viewer to easily see and read the disclosure. |
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(c) A verbal disclosure must be audible and intelligible. |
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Sec. 81.155. INJUNCTION; RESTITUTION. (a) If the attorney |
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general or the prosecuting attorney in the county in which a |
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violation of this subchapter occurs has reason to believe that a |
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person is engaging in, has engaged in, or is about to engage in an |
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act or practice that violates this subchapter, the attorney general |
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or prosecuting attorney may bring an action in the name of the state |
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against the person to restrain that act or practice by temporary or |
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permanent injunction if an injunction is in the public interest. |
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(b) If a court issues a permanent injunction to restrain and |
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prevent a violation of this subchapter, the court may make an |
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additional order requiring restitution to a victim for medical |
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expenses or other expenses related to the violation. |
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Sec. 81.156. CIVIL PENALTY. (a) A person who violates this |
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subchapter is liable to the state for a civil penalty in an amount |
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not to exceed $20,000 for each violation. Each advertisement that |
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violates this subchapter constitutes a separate violation. |
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(b) The attorney general or the prosecuting attorney in the |
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county in which a violation occurs may bring suit to recover the |
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civil penalty imposed under Subsection (a). |
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(c) The attorney general or prosecuting attorney may |
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recover reasonable expenses incurred in obtaining a civil penalty |
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under this section, including court costs, attorney's fees, |
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investigative costs, witness fees, and deposition expenses. |
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(d) The civil penalty provided by this section is in |
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addition to injunctive relief or any other remedy that may be |
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granted under Section 81.155. |
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Sec. 81.157. CONSTRUCTION OF SUBCHAPTER. This subchapter |
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may not be construed to limit or otherwise affect the authority of |
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the Supreme Court of Texas to regulate the practice of law, enforce |
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the Texas Disciplinary Rules of Professional Conduct, or discipline |
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persons admitted to the state bar. |
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SECTION 2. The change in law made by this Act applies only |
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to a cause of action that accrues on or after the effective date of |
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this Act. A cause of action that accrued before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |