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A BILL TO BE ENTITLED
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AN ACT
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relating to protection of a client's money and property by an |
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attorney representing the client; creating civil liability. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 82, Government Code, is |
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amended by adding Section 82.0625 to read as follows: |
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Sec. 82.0625. PROTECTION OF CLIENT MONEY AND PROPERTY; |
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LICENSE SUSPENSION; CIVIL LIABILITY. (a) This section applies |
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only to an attorney who receives for a client represented by the |
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attorney money or other property paid to settle a claim in which the |
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client has an interest. |
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(b) The attorney: |
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(1) shall immediately notify the client on the |
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attorney's receipt of the money or property; and |
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(2) may pay to a third person a claim owed by the |
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client using the money or property only with the client's consent |
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unless other law requires the attorney to pay the claim to the |
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person. |
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(c) An attorney who violates Subsection (b) may be suspended |
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from the practice of law for not more than six months by a district |
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court of the county in which the attorney resides or in which the |
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act complained of occurred. |
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(d) An attorney who violates Subsection (b) is subject to |
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civil liability for the violation. A person may bring a civil |
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action against the attorney to recover: |
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(1) damages in an amount equal to the amount of money |
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or value of the property received by the attorney; |
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(2) interest at a rate not to exceed the judgment rate |
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authorized in the most recent Texas Credit Letter published by the |
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Office of Consumer Credit Commissioner; and |
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(3) reasonable attorney's fees. |
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SECTION 2. Section 82.0625, Government Code, as added by |
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this Act, applies only to money or other property received by an |
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attorney for a client on or after the effective date of this Act. |
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Money or other property received by an attorney for a client before |
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the effective date of this Act is governed by the law in effect on |
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the date the money or other property was received, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |