85R12758 YDB-F
	By: Shaheen	H.B. No. 3627

	A BILL TO BE ENTITLED
	AN ACT
	relating to compliance with ethical and statutory requirements by
	out-of-state attorneys providing legal services in this state.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle G, Title 2, Government Code, is amended
	by adding Chapter 85 to read as follows:
	CHAPTER 85. LEGAL SERVICES CONTRACTS BY OUT-OF-STATE ATTORNEYS
	Sec. 85.001.  PUBLIC POLICY. It is the public policy of this
	state that an out-of-state attorney who is not a member of the State
	Bar of Texas and who under a legal services contract represents or
	advises a client in this state or appears as counsel in any matter
	in a court or domestic arbitration proceeding in this state be
	required to comply with all state law and ethical duties imposed by
	the state disciplinary rules and codes of ethics applicable to
	members of the State Bar of Texas.
	Sec. 85.002.  PROHIBITED CONTRACTS AND ENFORCEMENT. (a)  An
	out-of-state attorney who is not a member of the State Bar of Texas
	may not enter into a legal services contract to represent or advise
	clients in this state or appear as counsel in any matter in a court
	or domestic arbitration proceeding in this state unless the
	attorney complies with all state laws and ethical duties imposed by
	the state disciplinary rules and codes of ethics applicable to
	members of the State Bar of Texas.
	(b)  Any obligation created by or relating to a contract
	prohibited under Subsection (a) is not enforceable by a judge or
	arbitrator in a court or arbitration proceeding in this state.
	Sec. 85.003.  LEGAL SERVICE CONTRACT REQUIREMENTS. (a)  A
	contract entered into by an out-of-state attorney who is not a
	member of the State Bar of Texas, or by the law firm with whom the
	attorney is associated, to provide legal services related to any
	state court or domestic arbitration proceeding conducted in this
	state is valid only if the attorney, and law firm if applicable, are
	subject to discipline for violations of any disciplinary rules and
	codes of ethics applicable to members of the State Bar of Texas.
	(b)  A contract for legal services described by Subsection
	(a) must require that:
	(1)  the out-of-state attorney, or law firm as
	applicable, notify the office of chief disciplinary counsel of the
	State Bar of Texas about the contract on its execution;
	(2)  each attorney providing legal services under the
	contract affirmatively agree to comply with all disciplinary rules
	and codes of ethics applicable to members of the State Bar of Texas;
	(3)  each attorney providing legal services under the
	contract affirmatively agree to be subject to the jurisdiction of
	this state's disciplinary authorities in the same manner and to the
	same extent as members of the State Bar of Texas; and
	(4)  each attorney providing legal services under the
	contract affirmatively agree to reciprocal enforcement by the bar
	association of the jurisdiction in which the attorney is licensed
	for any decision, determination, discipline, or sanction imposed by
	attorney disciplinary authorities in this state.
	Sec. 85.004.  VOIDABLE CONTRACTS. A legal services contract
	that does not comply with this chapter is null, void, and
	unenforceable.
	Sec. 85.005.  LIABILITY. A person is not liable under or
	obligated to pay for any legal service performed under a legal
	services contract that does not comply with this chapter.
	SECTION 2.  The changes in law made by this Act apply only to
	a legal services contract entered into on or after the effective
	date of this Act. A contract entered into before that date is
	governed by the law in effect on the date the contract was entered
	into and that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2017.