78R2751 JMM-F

By:  Brown of Brazos                                              H.B. No. 570



A BILL TO BE ENTITLED

AN ACT

relating to limiting the liability of certain employers who do not 
provide workers' compensation insurance coverage.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 406, Labor Code, is 
amended by adding Section 406.0335 to read as follows:
	Sec. 406.0335.  LIMITED LIABILITY FOR CERTAIN EMPLOYERS.  
(a)  An employer who does not have workers' compensation  insurance 
coverage is subject to this section if the employer provides 
benefits for personal injuries or death sustained by an employee in 
the course and scope of employment in at least the following 
amounts:
		(1)  $300,000 for medical expenses for at least 104 
weeks after the date of injury;
		(2)  $100,000 in accidental death benefits for a fatal 
injury;  and  
		(3)  weekly income benefits of at least 75 percent of 
the employee's preinjury income for at least 104 weeks after the 
date of injury, not to exceed $600.
	(b)  An employer described by Subsection (a) who is the 
subject of a claim for additional damages for a work-related injury 
or death brought by an employee, an heir or beneficiary of the 
employee, or another party, is not liable for more than $250,000 for 
all damages, costs, interest, and attorney's fees, including any 
benefits paid by the employer as medical expenses and wage 
replacement.
	(c)  The limitation on liability provided by this section 
does not apply to a claim based on the death of an employee caused 
by:
		(1)  an intentional act or omission by the employer;  or               
		(2)  gross negligence of the employer.                                 
	SECTION 2.  (a) This Act takes effect September 1, 2003.                       
	(b)  The change in law made by this Act applies only to an 
action filed on or after the effective date of this Act.  An action 
filed before the effective date of this Act is governed by the law 
in effect on the date the action was filed, and the former law is 
continued in effect for that purpose.