| 1 | 1 | | 82R22584 KCR-D |
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| 2 | 2 | | By: Giddings H.B. No. 1871 |
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| 3 | 3 | | Substitute the following for H.B. No. 1871: |
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| 4 | 4 | | By: Cook C.S.H.B. No. 1871 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the amount and payment of attorney's fees in certain |
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| 10 | 10 | | workers' compensation cases. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 408.203(a), Labor Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (a) An income or death benefit is subject only to the |
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| 15 | 15 | | following lien or claim, to the extent the benefit is unpaid on the |
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| 16 | 16 | | date the insurance carrier receives written notice of the lien or |
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| 17 | 17 | | claim, in the following order of priority: |
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| 18 | 18 | | (1) an attorney's fee for representing an employee or |
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| 19 | 19 | | legal beneficiary in a matter arising under this subtitle, payment |
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| 20 | 20 | | of which must be made in proportionate shares to each attorney with |
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| 21 | 21 | | an outstanding lien if more than one attorney has an outstanding |
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| 22 | 22 | | lien; |
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| 23 | 23 | | (2) court-ordered child support; or |
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| 24 | 24 | | (3) a subrogation interest established under this |
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| 25 | 25 | | subtitle. |
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| 26 | 26 | | SECTION 2. Section 408.221(i), Labor Code, is amended to |
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| 27 | 27 | | read as follows: |
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| 28 | 28 | | (i) Except as provided by Subsection (c) or Section |
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| 29 | 29 | | 408.147(c), an attorney's fee or, if applicable, the aggregated |
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| 30 | 30 | | fees of more than one attorney may not exceed 25 percent of the |
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| 31 | 31 | | claimant's recovery. |
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| 32 | 32 | | SECTION 3. The change in law made by this Act applies only |
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| 33 | 33 | | to a claim for workers' compensation benefits based on a |
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| 34 | 34 | | compensable injury that occurs on or after the effective date of |
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| 35 | 35 | | this Act. A claim based on a compensable injury that occurs before |
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| 36 | 36 | | the effective date of this Act is governed by the law in effect on |
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| 37 | 37 | | the date the compensable injury occurred, and the former law is |
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| 38 | 38 | | continued in effect for that purpose. |
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| 39 | 39 | | SECTION 4. This Act takes effect September 1, 2011. |
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