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.