SRC-HRD H.B. 3137 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3137
By: Solomons (Armbrister)
Economic Development
5-12-97
Engrossed


DIGEST 

Chapter 410 of the Labor Code currently allows insurance carriers 
engaged in a workers' 
compensation lawsuit to settle their case and then claim that the 
settlement agreement reverses or 
modifies an appeals panel decision awarding benefits.  Carriers 
also use judgments based on default 
or on an agreement of the parties to accomplish the same end.  
Additionally, carriers sometimes 
attempt to use these settlement agreements and judgments to seek 
reimbursement through the 
Subsequent Injury Fund for any benefits they may have provided to 
a claimant.  This proposed 
legislation prevents both of these practices.  It also applies 
some of the Section 410.256 requirements 
with regard to court approval of settlements to a new Section 
410.257 on court approval of 
judgments.  Finally, this proposed legislation would make any 
judgment entered or settlement 
approved without complying with Sections 410.256, 410.257, or 
410.258 void.  This places the 
burden of compliance with these provisions on the litigating 
parties rather than the Texas Workers' 
Compensation Commission (commission).
                      
H.B. 3137 would prevent the use of settlement agreements, and 
judgments based on default or on 
an agreement of the parties, to overturn appeals panel decisions. 
 H.B. 3137 would also prevent 
carriers from using these types of judgments and settlements to 
seek reimbursement from the 
subsequent injury fund for benefit payments made to a claimant.  
This bill ensures that the 
commission has notice and an opportunity to intervene in a 
workers' compensation lawsuit to explain 
why a judgment or settlement should not be approved by a court.

PURPOSE

As proposed, H.B. 3137  prevents the use of settlement 
agreements, and judgments based on default 
or on an agreement of the parties, to overturn appeals panel 
decisions.  H.B. 3137 also prevents 
carriers from using these types of judgments and settlements to 
seek reimbursement from the 
subsequent injury fund for benefit payments made to a claimant.  
H.B. 3137 also ensures that the 
Texas Workers' Compensation Commission has notice and an 
opportunity to intervene in a workers' 
compensation lawsuit to explain why a judgment or settlement 
should not be approved by a court. 
                                                      
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a 
state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 410.256, Labor Code, to prohibit a claim 
or issue from being settled 
contrary to the provisions of an appeals panel decision issued on 
the claim or issue unless a party to 
the proceeding has filed for judicial review under this 
subchapter or Subchapter G.  Provides that 
settlement of a claim or issue under this section does not 
constitute a modification or reversal of the 
appeals panel decision awarding benefits for the purpose of 
Section 410.205.  Requires settlement 
of a claim or issue to be in compliance with all appropriate 
provisions of the law, including this 
section and Section 410.259 of this subchapter.  Provides that a 
settlement which on its face does 
not comply with this section is void.  Makes conforming changes.

SECTION 2. Amends Chapter 410F, Labor Code, by adding Sections 
410.257 and 410.258, as 
follows:

 Sec. 410.257.  JUDGMENT AFTER JUDICIAL REVIEW.  Requires a 
judgment entered by 
a court on judicial review of an appeals panel decision 
under this subchapter or Subchapter 
G to comply with all appropriate provisions of the law.  
Prohibits a judgment under this 
section from providing for certain payment or limitation or 
termination.  Prohibits a 
judgment that resolves an issue of impairment from being 
entered before the date the 
claimant reaches maximum medical improvement.  Requires the 
judgment to adopt an 
impairment rating under Chapter 408G, except to the extent 
Section 410.307 applies. 
Prohibits a judgment under this section from ordering 
reimbursement from the subsequent 
injury fund.  Provides that a judgment under this section 
based on default or on an agreement 
of the parties does not constitute a modification or 
reversal of an appeals panel decision 
awarding benefits for the purpose of Section 410.205.  
Provides that a judgment that on its 
face does not comply with this section is void.

Sec. 410.258.  NOTIFICATION OF COMMISSION OF PROPOSED 
JUDGMENTS AND 
SETTLEMENTS; RIGHT TO INTERVENE.  Sets forth requirements 
regarding the party 
who initiated a proceeding under this subchapter or 
Subchapter G.  Sets forth provisions 
regarding the proposed judgment or settlement.  Authorizes 
the Texas Workers' 
Compensation Commission (commission) to intervene in a 
proceeding under Subsection (a) 
not later than the 30th day after the date of receipt of the 
proposed judgment or settlement. 
Sets forth requirements and provisions for the commission 
regarding review of the proposed 
judgment or settlement.  Sets forth provisions applicable if 
the commission does not 
intervene before the 31st day after the date of receipt of 
the proposed judgment or settlement. 
Sets forth provisions applicable if the commission 
intervenes in the proceeding.  Provides 
that a judgment entered or settlement approved without 
complying with the requirements of 
this section is void.

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.
  Effective date: upon passage.