HBA-ATS H.B. 3550 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3550
By: Giddings
Business & Industry
3/26/1999
Introduced



BACKGROUND AND PURPOSE 

The Labor Code (code) authorizes an employee to hire an attorney to
represent the employee when the  employee's claim for workers' compensation
insurance is disputed by the employer's workers' compensation insurance
carrier.  The code limits fees for the claimant's attorney, which are
deducted from the claimant's income benefit payments.  Generally, the
attorney's fees may not exceed 25 percent of the total amount of the
claimant's recovery.  H.B. 3550 requires an employer's workers'
compensation insurance carrier to pay a claimant's attorney's fees in an
amount equivalent to 25 percent of the claimant's income benefits if a
claimant prevails on any disputed issue. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter L, Section 408.221(b), Labor Code, to require
an employer's workers' compensation insurance carrier to pay a claimant's
attorney's fees in an amount equivalent to 25 percent of the claimant's
income benefits if a claimant prevails on any disputed issue. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.