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Amend CSHB 2120, by adding the following appropriately
numbered SECTIONS to the bill and renumbering subsequent SECTIONS
of the bill accordingly:
SECTION __. Section 172.015, Local Government Code, is
amended to read as follows:
Sec. 172.015. SUBROGATION; ADEQUATE RECOVERY. (a) The
payor of employee benefits, whether a political subdivision, group
of political subdivisions, pool, or carrier providing reinsurance
to one of those entitites, is [shall be] subrogated to the
employees' right of recovery for personal injuries caused by the
tortuous conduct of a third party.
(b) A payor of employee benefits whose interest is not
actively represented by an attorney in a third-party action shall
pay a fee to an attorney representing the claimant employee in an
amount determined under an agreement entered into between the
attorney and the payor of employee benefits. In the absence of an
agreement, the court shall award to the attorney, payable out of the
recovery of the payor of employee benefits:
(1) a reasonable fee for recovery of the interest of
the payor of employee benefits, not to exceed one-third of the
payor's recovery; and
(2) a proportionate share of expenses.
(c) If the injured employee is not able to realize a
complete and adequate recovery for injuries sustained as a result
of the actionable fault of a third party, the payor of employee
benefits is entitled to a pro rata recovery consistent with the
recovery obtained by the injured employee.
SECTION __. Section 172.015, Local Government Code, as
amended by this Act, applies only to a cause of action that accrues
on or after the effective date of this Act. An action that accrued
before the effective date of this Act is governed by the law
applicable to the action immediately before the effective date of
this Act, and that law is continued in effect for that purpose.