SRC-SLL S.B. 1115 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1115
By: Luna
Health and Human Services
4-29-97
As Filed


DIGEST 

Currently, the Texas Workers' Compensation Commission can impose
administrative penalties on any party that it determines to be in
violation of a provision of the Workers' Compensation Act. However, there
are no enforcement mechanisms behind the issuance of these penalties.  A
party that is fined under the Act can refuse payment of the penalty past
the 20-day deadline for payment and not be penalized for the delay in
compliance.  Such unpaid penalties are referred to the attorney general
after two notices have been sent to the party; however, the attorney
general can collect the fine only if it is feasible to do so.  This bill
will provide new regulations regarding certain administrative penalties
under the Texas Workers' Compensation Act. 

PURPOSE

As proposed, S.B. 1115 provides new regulations regarding certain
administrative penalties under the Texas Workers' Compensation Act. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workers' Compensation
Commission in SECTIONS 1 and 4 (Sections 415.032(c) and 415.035(d), Labor
Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 415.032, Labor Code, by amending Subsection (b)
and adding Subsection (c), to authorize a person in writing, within 20
days after the date the person receives the notice, to accept the
determination and recommended penalty of the Texas Workers' Compensation
Commission (commission) or to make a written request for a hearing on
certain items.  Sets forth procedures for collection of the recommended
penalty.  Authorizes the commission to adopt rules providing for the
assessment of a late payment fee or interest at the rate provided by
Section 415.035(g) on a penalty referred to the attorney general for
collection. 

SECTION 2. Amends Section 415.033, Labor Code, as follows:

Sec.  415.033.  RIGHT TO HEARING; FAILURE TO RESPOND.  Requires the
executive director of the commission (executive director), if the person
requests a hearing or fails to respond timely to the notice, to set a
hearing and give notice of the hearing to the person. Deletes existing
text regarding a penalty for failure to respond. 

SECTION 3. Amends Section 415.034, Labor Code, to require the hearing to
be held by an administrative law judge of the State Office of
Administrative Hearings.  Deletes a provision regarding the setting of a
hearing.  Sets forth procedures for a hearing and action by the commission
on the basis of the hearing.  Makes standard recodification changes. 

SECTION 4. Amends Section 415.035, Labor Code, to set forth procedures
regarding judicial review of the commission's order.  Deletes existing
text regarding judicial review, the assessment of administrative
penalties, and waiver of rights. 



 SECTION 5. Amends Chapter 415C, Labor Code, by adding Section 415.036, as
follows: 

Sec.  415.036.  DEPOSIT OF ADMINISTRATIVE PENALTY.  Requires a penalty
collected under this subchapter to be remitted to the comptroller for
deposit in the general revenue fund. 

SECTION 6. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 7. Emergency clause.