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79R1732 PB-D

By:  Smithee                                                      H.B. No. 2551



A BILL TO BE ENTITLED

AN ACT

relating to the subrogation interests of certain political 
subdivisions or carriers providing reinsurance for subdivisions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 172.015, Local Government Code, is 
amended to read as follows:
	Sec. 172.015.  SUBROGATION.  (a) The payor of employee 
benefits, whether a political subdivision, group of political 
subdivisions, pool, or carrier providing reinsurance to one of 
those entities, is [shall be] subrogated to the employees' right of 
recovery for personal injuries caused by the tortious conduct of a 
third party.
	(b)  The payor's subrogation interest under Subsection (a) 
is limited to the amount of the total benefits paid or assumed by 
the payor to the covered employee.  If the recovery is for an amount 
greater than the amount of the payor's subrogation interest, the 
payor shall reimburse itself and pay its costs from the amount 
recovered and pay the balance of the recovery to the covered 
employee.
	SECTION 2.  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.
	SECTION 3.  This Act takes effect September 1, 2005.