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.