Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB4325 proposes a targeted amendment to Section 82.0651(d) of the Texas Government Code relating to civil liability for prohibited barratry. Barratry refers to the illegal solicitation of clients by attorneys or others for legal services, often immediately following accidents, injuries, or other legal matters. This practice is not only unethical but is also already prohibited under existing law.

The bill specifically increases the civil penalty that can be awarded to a person who successfully sues under the anti-barratry statute. Under current law, prevailing plaintiffs are entitled to a $10,000 penalty, actual damages, and attorney's fees. HB 4325 raises the statutory penalty to $50,000, while preserving the right to recover actual damages and reasonable attorney’s fees. This heightened penalty aims to serve as a stronger deterrent against unethical and illegal solicitation practices within the legal profession.

Importantly, the bill applies only to actions filed on or after the bill’s effective date. It includes a standard savings clause clarifying that actions filed before this date are governed by the prior version of the law. The bill does not introduce new regulatory powers or expand the scope of the judiciary, but simply increases the civil consequences for violating an existing statutory prohibition. The proposed change aligns with efforts to enhance professional accountability and consumer protection in Texas's legal system.

The originally filed version of HB 4325 focused on increasing the statutory penalty for engaging in civil barratry under Section 82.0651(d) of the Texas Government Code. Specifically, it proposed raising the minimum statutory penalty from $10,000 to $50,000 for each person found liable for prohibited barratry. It also preserved the right of prevailing plaintiffs to recover actual damages and reasonable attorney’s fees. The bill clarified that these changes would apply only to causes of action filed on or after the effective date.

The Committee Substitute version retains the key substantive change—the increase of the statutory penalty from $10,000 to $50,000—but reframes the language slightly. The wording of the title is changed from “relating to the civil penalties for the offense of barratry” to “relating to civil liability for prohibited barratry,” which reflects a more precise and civil-oriented framing of the issue, rather than implying a criminal offense. This change may have been made to align more closely with the legal nature of the statute, which provides civil remedies, not criminal penalties.

Another minor difference is stylistic and procedural: in the Committee Substitute, the bill is presented with formal House drafting standards that reflect updates or clarification consistent with input from legislative counsel. However, the operative sections of law—Sections 1 through 3—remain substantively identical between the two versions.

In essence, the Committee Substitute does not alter the scope or enforcement mechanics proposed in the original filing but refines the language and sponsorship to reflect committee input and legal precision.

Author

Joseph Moody

Cassandra Garcia Hernandez

Sponsor

Juan Hinojosa

Contact the Author

Rep. Joseph Moody

Capitol Phone:

(512) 463-0728

Capitol Office:

CAP GW.18

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), HB 4325 is not expected to have any significant fiscal impact on the State of Texas. The bill increases the civil penalty for engaging in prohibited barratry from $10,000 to $50,000, but does not create new enforcement mechanisms or require additional administrative oversight. Because the change is confined to the penalty structure within existing civil litigation processes, it is assumed that any costs associated with implementing the bill can be absorbed within the current operational budgets of state agencies and the judiciary.

Similarly, the bill is not anticipated to have any significant fiscal implications for units of local government. Since the bill does not mandate new responsibilities for local courts, law enforcement, or administrative entities, local governments are unlikely to incur additional expenses. The enforcement of the increased penalty remains a private right of action, meaning it is up to individuals to bring lawsuits under the anti-barratry statute, which does not impose new burdens on government-funded resources.

Overall, HB 4325 represents a policy shift aimed at increasing deterrence for unethical legal practices without generating new costs for taxpayers. Its targeted, single-subject scope allows for straightforward implementation within the bounds of existing judicial and administrative systems.

Vote Recommendation Notes

HB 4325 proposes an update to the civil penalty for prohibited barratry—a form of unlawful solicitation by attorneys. The bill increases the civil penalty from $10,000 to $50,000 for persons who prevail in barratry actions under Section 82.0651 of the Government Code, particularly in cases where the individual did not ultimately enter into a contract with the offending party. This measure seeks to ensure that victims of unethical solicitation practices—many of whom are particularly vulnerable—receive adequate redress and that the increased penalty serves as a more effective deterrent to violators.

Crucially, HB 4325 does not expand the size or scope of government. It does not create any new agencies, grant new regulatory powers, or impose additional administrative obligations on public institutions. Instead, it adjusts an existing statutory remedy within the civil justice system. Furthermore, the bill imposes no new mandates or compliance costs on ethical attorneys or businesses, and it does not introduce any regulatory reporting or oversight changes. As such, there is no increase in the regulatory burden on individuals or businesses who are already operating within the bounds of the law.

The bill also has no fiscal impact on taxpayers. According to the Legislative Budget Board, HB 4325 is not expected to create significant costs for the state or local governments. All associated litigation continues to be pursued through private civil action, requiring no new expenditures or taxpayer-funded enforcement efforts.

In summary, HB 4325 is a narrowly focused reform that strengthens accountability within the legal profession without expanding government, raising taxes, or increasing red tape. It preserves the principle of limited government while promoting justice and ethical standards in the legal system. Therefore, Texas Policy Research recommends that lawmakers vote YES on HB 4325.

Individual Liberty: The bill defends individuals, especially vulnerable or unsuspecting Texans, against unethical legal solicitation. By raising the penalty for barratry, it reinforces the right of people to make legal decisions free from coercion, deception, or pressure, which is essential to protecting personal autonomy and dignity.
Personal Responsibility: The bill promotes personal responsibility by holding lawyers and their agents more accountable for unlawful conduct. It makes clear that legal professionals who knowingly break the rules will face real financial consequences, reinforcing ethical behavior within the profession.
Free Enterprise: The bill supports fair competition in the legal marketplace. Honest attorneys who follow the law are currently at a disadvantage when competing against those who use illegal tactics to secure clients. By increasing the penalty for barratry, the bill helps level the playing field and ensures market behavior is governed by integrity, not misconduct.
Private Property Rights: While not directly about property, the bill helps protect individuals' control over legal claims, which often involve significant financial settlements or property damage. Preventing barratry ensures people maintain full ownership of their legal choices and outcomes, especially when compensation or claims are involved.
Limited Government: Importantly, the bill does not expand the size or scope of government. It doesn’t create new regulatory bodies, criminal laws, or administrative costs. It relies on the existing civil court system and private lawsuits to enforce the higher penalty, keeping the government limited while still promoting justice.

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