78R10942 PB-D


By:  Stick                                                        H.B. No. 2406

Substitute the following for H.B. No. 2406:                                   

By:  Elkins                                                   C.S.H.B. No. 2406



A BILL TO BE ENTITLED

AN ACT

relating to computation of certain legal fees in workers' 
compensation benefit matters.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 408.221, Labor Code, is amended by 
amending Subsection (f) to read as follows:
	(f)  Subject to Section 408.223, the [The] commission by rule 
shall provide guidelines for maximum attorney's fees for specific 
services in accordance with this section.
	SECTION 2.  Section 408.222, Labor Code, is amended by 
adding Subsection (c) to read as follows:
	(c)  An attorney's fee determined under this section is 
subject to Section 408.223.
	SECTION 3.  Subchapter L, Chapter 408, Labor Code, is 
amended by adding Section 408.223 to read as follows:
	Sec. 408.223.  MAXIMUM HOURLY RATE FOR LEGAL FEES.  (a)  The 
maximum hourly rate for an attorney's fee subject to Section 
408.221 or 408.222 is 35 percent of the state average weekly wage.
	(b)  The maximum hourly rate for a legal assistant's fee 
subject to Section 408.221 or 408.222 is 12 percent of the state 
average weekly wage.
	(c)  For purposes of this subsection, "state average weekly 
wage" means the wage computed under Section 408.047.
	SECTION 4.  This Act takes effect September 1, 2003, and 
applies only to legal fees for a claim for workers' compensation 
benefits based on a compensable injury that occurs on or after that 
date.  Legal fees for a claim based on a compensable injury that 
occurs before that date are governed by the law in effect on the 
date that the compensable injury occurred, and the former law is 
continued in effect for that purpose.