|   | 
| 
 		
			 | 
A BILL TO BE ENTITLED
 | 
| 
 
			 | 
AN ACT
 | 
| 
 
			 | 
relating to the appointment of an attorney for a workers'  | 
| 
 
			 | 
compensation claimant in certain proceedings initiated by a  | 
| 
 
			 | 
workers' compensation insurance carrier. | 
| 
 
			 | 
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
| 
 
			 | 
       SECTION 1.  Subchapter G, Chapter 410, Labor Code, is  | 
| 
 
			 | 
amended by adding Section 410.309 to read as follows: | 
| 
 
			 | 
       Sec. 410.309.  APPOINTMENT OF ATTORNEY FOR CLAIMANT IN  | 
| 
 
			 | 
PROCEEDING INITIATED BY INSURANCE CARRIER.  (a)  In a trial  | 
| 
 
			 | 
initiated by an insurance carrier under this subchapter, at the  | 
| 
 
			 | 
request of the claimant the court shall appoint an attorney to  | 
| 
 
			 | 
represent the claimant before the court.  The court may hold a  | 
| 
 
			 | 
pretrial hearing to determine whether the claimant made a good  | 
| 
 
			 | 
faith effort to obtain representation by an attorney before the  | 
| 
 
			 | 
appointment of an attorney. | 
| 
 
			 | 
       (b)  The insurance carrier is liable for the attorney's  | 
| 
 
			 | 
reasonable and necessary fees in accordance with Section 408.221(c)  | 
| 
 
			 | 
on any issue on which the claimant prevails.  The claimant attorney  | 
| 
 
			 | 
may not bill for more hours than the hours the carrier attorney  | 
| 
 
			 | 
billed. | 
| 
 
			 | 
       (c)  The subsequent injury fund is liable for the attorney's  | 
| 
 
			 | 
reasonable and necessary fees in accordance with Section  | 
| 
 
			 | 
408.221(c-1) on any issue on which the insurance carrier prevails. | 
| 
 
			 | 
       SECTION 2.  Section 408.221, Labor Code, is amended by  | 
| 
 
			 | 
amending Subsections (b) and (i) and adding Subsection (c-1) to  | 
| 
 
			 | 
read as follows: | 
| 
 
			 | 
       (b)  Except as otherwise provided, an attorney's fee under  | 
| 
 
			 | 
this section is based on the attorney's time and expenses according  | 
| 
 
			 | 
to written evidence presented to the division or court.  Except as  | 
| 
 
			 | 
provided by Subsection (c) or (c-1) or Section 408.147(c), the  | 
| 
 
			 | 
attorney's fee shall be paid from the claimant's recovery. | 
| 
 
			 | 
       (c-1)  In a judicial review proceeding initiated by an  | 
| 
 
			 | 
insurance carrier under Subchapter G, Chapter 410, in which the  | 
| 
 
			 | 
court has appointed an attorney for the claimant under Section  | 
| 
 
			 | 
410.309, the subsequent injury fund is liable for the attorney's  | 
| 
 
			 | 
reasonable and necessary fees as provided by Subsection (d) on any  | 
| 
 
			 | 
issue on which the insurance carrier prevails.  If the insurance  | 
| 
 
			 | 
carrier appeals multiple issues and the insurance carrier prevails  | 
| 
 
			 | 
on some, but not all, of the issues appealed, the court shall  | 
| 
 
			 | 
apportion and award fees to the claimant's court-appointed attorney  | 
| 
 
			 | 
from the subsequent injury fund only for issues on which the  | 
| 
 
			 | 
insurance carrier prevails.  In making that apportionment, the  | 
| 
 
			 | 
court shall consider the factors prescribed by Subsection (d).  An  | 
| 
 
			 | 
award of attorney's fees under this subsection is not subject to  | 
| 
 
			 | 
commissioner rules adopted under Subsection (f). | 
| 
 
			 | 
       (i)  Except as provided by Subsection (c) or (c-1) or Section  | 
| 
 
			 | 
408.147(c), an attorney's fee may not exceed 25 percent of the  | 
| 
 
			 | 
claimant's recovery. | 
| 
 
			 | 
       SECTION 3.  Subsection (b), Section 403.006, Labor Code, is  | 
| 
 
			 | 
amended to read as follows: | 
| 
 
			 | 
       (b)  The subsequent injury fund is liable for: | 
| 
 
			 | 
             (1)  the payment of compensation as provided by Section  | 
| 
 
			 | 
408.162; | 
| 
 
			 | 
             (2)  reimbursement of insurance carrier claims of  | 
| 
 
			 | 
overpayment of benefits made under an interlocutory order or  | 
| 
 
			 | 
decision of the commissioner as provided by this subtitle,  | 
| 
 
			 | 
consistent with the priorities established by rule by the  | 
| 
 
			 | 
commissioner; | 
| 
 
			 | 
             (3)  reimbursement of insurance carrier claims as  | 
| 
 
			 | 
provided by Sections 408.042 and 413.0141, consistent with the  | 
| 
 
			 | 
priorities established by rule by the commissioner; [and] | 
| 
 
			 | 
             (4)  the reimbursement of an insurance carrier as  | 
| 
 
			 | 
provided by Section 408.0041(f-1); and | 
| 
 
			 | 
             (5)  the payment of court-appointed attorney's fees as  | 
| 
 
			 | 
provided by Section 408.221(c-1). | 
| 
 
			 | 
       SECTION 4.  The change in law made by this Act applies only  | 
| 
 
			 | 
to a trial or judicial review proceeding initiated under Subchapter  | 
| 
 
			 | 
G, Chapter 410, Labor Code, on or after the effective date of this  | 
| 
 
			 | 
Act.  A trial or judicial review proceeding initiated before that  | 
| 
 
			 | 
date is governed by the law in effect on the date the trial or  | 
| 
 
			 | 
judicial review proceeding was initiated, and the former law is  | 
| 
 
			 | 
continued in effect for that purpose. | 
| 
 
			 | 
       SECTION 5.  This Act takes effect September 1, 2009. |