CHAPTER 952. LAWYER REFERRAL SERVICES
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.