SRC-SLL S.B. 429 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 429
By: Duncan
Economic Development
2-12-97
As Filed


DIGEST 

Currently, Texas law prohibits juries, when determining the percentage of
responsibility of each party, from considering the fault of immune
persons, such as employers with workers' compensation insurance.  In
instances where the employer has opted to provide coverage under workers'
compensation, the law prevents juries from determining the employer's
percentage of responsibility for an employee's injury.  As a result, third
party defendants are having to pay judgments that are larger than is
justified by actual fault.  S.B. 429 will enable the trier of fact in
these lawsuits to consider evidence of liability on the part of an immune
party, determine the percentage of responsibility attributable to that
party, and reduce the amount of damages collectable from certain persons
to a percentage equal to that person's percentage of liability.  Finally,
the bill will limit an insurance carrier's subrogation interest and will
reduce the amount of damages collectable from certain persons to a
percentage equal to that person's percentage of liability. 

PURPOSE

As proposed, S.B. 429 allows the trier of fact in a third party lawsuit to
consider evidence of liability on the part of an immune party. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 33.011(5) and (6), Civil Practice and Remedies
Code, to redefine "settling person" and "responsible third party." 

SECTION 2. Amends Section 33.012(d), Civil Practice and Remedies Code, to
provide that Subsection (b) does not, rather than this section shall not,
apply to benefits paid to a claimant under, rather than by or on behalf of
an employer to an employee pursuant to, workers' compensation insurance
coverage, as defined by Section 401.011, rather than Section 44, Labor
Code, that is in effect at the time of the act, event, or occurrence made
the basis of claimant's suit.  Requires the court, if a settling person is
protected from liability to the claimant by Section 408.001, Labor Code,
to further reduce the amount of damages to be recovered by the claimant
with respect to the cause of action by a percentage equal to that settling
person's percentage of responsibility. 

SECTION 3. Amends Section 417.001(b), Labor Code, to provide that an
insurance carrier's subrogation interest is limited to the amount of the
total benefits paid or assumed by the carrier to the employee or the legal
beneficiary, less the amount by which the court reduces the judgment under
Section 33.012(d), Civil Practice and Remedies Code.  Makes conforming
changes. 

SECTION 4. Amends Section 417.002(a), Labor Code, to make a conforming
change. 

SECTION 5. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 6. Emergency clause.