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.