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A BILL TO BE ENTITLED
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AN ACT
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relating to contingent fee contracts for legal services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2254.101, Government Code, is amended to |
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read as follows: |
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Sec. 2254.101. DEFINITIONS. In this subchapter: |
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(2) "Contingent fee contract" means a contract for |
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legal services under which the amount or the payment of the fee for |
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the services is contingent in whole or in part on the outcome of the |
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matter for which the services were obtained. A "contingent fee |
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contract" includes an amendment to a contingent fee contract if the |
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amendment changes the scope of representation or may result in the |
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filing of a lawsuit or the amending of a petition in an existing |
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lawsuit. |
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SECTION 2. The changes in law made by this Act apply to a |
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contract or contract amendment signed or entered into on or after |
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the effective date of this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |