CHAPTER 952. LAWYER REFERRAL SERVICES - Texas Statutes

OCCUPATIONS CODE

TITLE 5. REGULATION OF FINANCIAL AND LEGAL SERVICES

SUBTITLE B. LEGAL SERVICES

CHAPTER 952. LAWYER REFERRAL SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 952.001. SHORT TITLE. This chapter may be cited as the

Texas Lawyer Referral Service Quality Assurance Act.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.002. DEFINITIONS. In this chapter:

(1) "Lawyer referral service" means a person or the service

provided by the person that refers potential clients to lawyers

regardless of whether the person uses the term "referral service"

to describe the service provided.

(2) "State bar" means the State Bar of Texas.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.003. APPLICABILITY OF CHAPTER. A lawyer referral

service does not include:

(1) an organization that recommends, furnishes, or pays for

legal services for its members or beneficiaries and that

satisfies the conditions of the Disciplinary Rules of

Professional Conduct or other rules adopted by the supreme court;

(2) a plan of prepaid legal services insurance;

(3) a referral made by one lawyer to another lawyer that

conforms with the Disciplinary Rules of Professional Conduct or

other rules adopted by the supreme court;

(4) lawyers who jointly advertise their services in a manner

that clearly shows that the advertising is intended solely to

solicit clients for those lawyers; or

(5) a service of a pro bono publico legal assistance program

that does not accept a fee from either the lawyer or the client.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER B. STATE BAR POWERS AND DUTIES

Sec. 952.051. RULES; ENFORCEMENT. (a) The state bar shall

adopt reasonable rules subject to the approval of the supreme

court to administer this chapter.

(b) The state bar may enforce this chapter and the rules adopted

under this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.052. FEES. The state bar may set fees, in amounts that

are reasonable and necessary to cover the costs of administering

this chapter, for the issuance and renewal of a certificate under

this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER C. CERTIFICATION

Sec. 952.101. CERTIFICATE REQUIRED. A person may not operate a

lawyer referral service in this state unless the person holds a

certificate issued under this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.102. APPLICATION REQUIREMENTS; RENEWAL. (a) An

applicant for a certificate or the renewal of a certificate

issued under this chapter must:

(1) be operated by:

(A) a governmental entity; or

(B) a nonprofit entity exempt from the payment of federal income

taxes under Section 501(a) of the Internal Revenue Code of 1986

and its subsequent amendments by being listed as an exempt entity

under Section 501(c)(3), 501(c)(4), or 501(c)(6) of that code;

(2) certify on the application provided by the state bar that

the applicant operates primarily for the benefit of the public;

and

(3) provide the state bar with a list containing the name, firm

name, address, and business telephone number of at least 25

lawyers, each from different law firms, who have contracted with

the applicant to receive referral services.

(b) The list required under Subsection (a)(3) must include each

lawyer or firm that is a subscriber or potential subscriber to

the applicant's services.

(c) A certificate is valid for one year from the date issued and

may be renewed annually on the payment of the required renewal

fee.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER D. REFERRAL SERVICE REQUIREMENTS

Sec. 952.151. NOTICE REQUIREMENT. (a) A lawyer referral

service shall include the following statement in any advertising

or other promotional effort: "This service is certified as a

lawyer referral service as required by the State of Texas under

Chapter 952, Occupations Code."

(b) Advertising or other promotional materials of a lawyer

referral service prepared before September 1, 1999, that comply

with Section 12, Texas Lawyer Referral Service Quality Assurance

Act (Article 320d, Vernon's Texas Civil Statutes), as that

section existed on August 31, 1999, are not required to comply

with Subsection (a).

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.152. LAWYER PARTICIPATION. A lawyer who is licensed

and in good standing in this state and who maintains an office in

the geographical area served by a lawyer referral service may

receive referrals of potential clients from the service if the

lawyer:

(1) complies with Section 952.155; and

(2) pays a reasonable registration and membership fee not to

exceed the amount set by state bar rules.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.153. PROOF OF FINANCIAL RESPONSIBILITY. A lawyer

referral service may require a member, as a condition of

membership, to:

(1) obtain a policy of errors and omissions insurance; or

(2) establish other proof of financial responsibility in an

amount determined by the service.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.154. SUBJECT MATTER AND OTHER PANELS. (a) A lawyer

referral service shall establish specific subject matter panels.

(b) A lawyer referral service may establish:

(1) moderate-fee and no-fee panels;

(2) alternative dispute resolution panels; and

(3) other special panels that respond to the referral needs of

the public.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.155. LIMITATIONS ON CLIENT FEES. (a) A lawyer may not

charge a potential client referred to the lawyer by a referral

service an amount that exceeds the total cost the client would

have been required to pay, including legal fees and expenses, if

a referral service had not referred the client.

(b) The combined amounts of any fee charged to a potential

client by the lawyer or the referral service may not exceed $20

for the first 30 minutes of the initial office visit with the

lawyer.

(c) An agreement between a lawyer and a referral service to

eliminate or restrict the fee for the first 30 minutes of an

initial office visit with the lawyer does not violate any statute

or rule, including Chapter 15, Business & Commerce Code.

(d) A fee charged under Subsection (b) may be used only to pay:

(1) the reasonable operating expenses of the referral service;

or

(2) the expenses of a public service program, including a pro

bono publico legal program.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER E. COMPLAINT PROCEDURES AND ENFORCEMENT

Sec. 952.201. EVALUATION AND COMPLAINT PROCEDURES. A lawyer

referral service shall establish policies and procedures to:

(1) evaluate client satisfaction with its services; and

(2) address client complaints with regard to the referral

service or the lawyers and firms that subscribe to the referral

service.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.202. SUSPENSION OR REMOVAL FROM LAWYER REFERRAL

SERVICE. (a) A lawyer referral service shall establish written

policies and procedures to suspend or remove a lawyer or firm

from the referral service's list of subscribers.

(b) The policies and procedures established under Subsection (a)

must include the suspension and removal of a lawyer who fails to

handle referred clients in a diligent and responsible manner.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 952.203. INJUNCTIVE RELIEF. (a) The state bar or a lawyer

referral service certified under this chapter may bring an action

to enjoin a violation of this chapter and may recover costs and

attorney's fees related to obtaining the injunction.

(b) Bond or other security may not be required of the state bar

or a referral service as a condition for the issuance of an

injunction under this section.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.