By Jones of Dallas                              H.B. No. 1004

      75R3419 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to attorneys' fees in workers' compensation cases.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 408.221, Labor Code, is amended to read

 1-5     as follows:

 1-6           Sec. 408.221.  ATTORNEY'S FEES PAID TO CLAIMANT'S COUNSEL.

 1-7     (a)  An attorney's fee, including a contingency fee, for

 1-8     representing a claimant before the commission or court under this

 1-9     subtitle must be approved by the commission or court.

1-10           (b)  Except as otherwise provided, an attorney's fee under

1-11     this section is based on the attorney's time and expenses according

1-12     to written evidence presented to the commission or court.  Except

1-13     as provided by Subsection (c) or by Section 408.147(c), the

1-14     attorney's fee shall be paid from the claimant's recovery.

1-15           (c)  The insurance carrier shall pay the claimant's

1-16     attorney's fee if the claimant prevails in an issue contested by

1-17     the insurance carrier regarding:

1-18                 (1)  the determination of maximum medical improvement;

1-19                 (2)  the application of an impairment rating to the

1-20     claimant;

1-21                 (3)  whether the claimant's injury arose in the course

1-22     and scope of the claimant's employment; or

1-23                 (4)  the determination of the average weekly wage

1-24     applicable to the claimant.

 2-1           (d)  In approving an attorney's fee under this section, the

 2-2     commission or court shall consider:

 2-3                 (1)  the time and labor required;

 2-4                 (2)  the novelty and difficulty of the questions

 2-5     involved;

 2-6                 (3)  the skill required to perform the legal services

 2-7     properly;

 2-8                 (4)  the fee customarily charged in the locality for

 2-9     similar legal services;

2-10                 (5)  the amount involved in the controversy;

2-11                 (6)  the benefits to the claimant that the attorney is

2-12     responsible for securing; and

2-13                 (7)  the experience and ability of the attorney

2-14     performing the services.

2-15           (e) [(d)]  The commission by rule or the court may provide

2-16     for the commutation of an attorney's fee, except that the

2-17     attorney's fee shall be paid in periodic payments in a claim

2-18     involving death benefits if the only dispute is as to the proper

2-19     beneficiary or beneficiaries.

2-20           (f) [(e)]  The commission by rule shall provide guidelines

2-21     for maximum attorney's fees for specific services in accordance

2-22     with this section.

2-23           (g) [(f)]  An attorney's fee may not be allowed in a case

2-24     involving a fatal injury or lifetime income benefit if the

2-25     insurance carrier admits liability on all issues and tenders

2-26     payment of maximum benefits in writing under this subtitle while

2-27     the claim is pending before the commission.

 3-1           (h) [(g)]  An attorney's fee shall be paid to the attorney by

 3-2     separate draft.

 3-3           (i) [(h)]  Except as provided by Section 408.147(c), an

 3-4     attorney's fee may not exceed 25 percent of the claimant's

 3-5     recovery.

 3-6           SECTION 2.  Section 408.222, Labor Code, is amended by adding

 3-7     Subsection (c) to read as follows:

 3-8           (c)  Notwithstanding any other provision of this subtitle, an

 3-9     attorney's fee may not be paid to a person for defending an

3-10     insurance carrier in a workers' compensation action brought before

3-11     the commission or appealed to a court under Chapter 410 unless the

3-12     insurance carrier prevails in the action.

3-13           SECTION 3.  This Act takes effect September 1, 1997, and

3-14     applies only to a claim for workers' compensation benefits based on

3-15     a compensable injury that occurs on or after that date.  A claim

3-16     based on a compensable injury that occurs before that date is

3-17     governed by the law in effect on the date that the compensable

3-18     injury occurred, and the former law is continued in effect for that

3-19     purpose.

3-20           SECTION 4.  The importance of this legislation and the

3-21     crowded condition of the calendars in both houses create an

3-22     emergency and an imperative public necessity that the

3-23     constitutional rule requiring bills to be read on three several

3-24     days in each house be suspended, and this rule is hereby suspended.