By Solomons, Brimer H.B. No. 3137
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to adding new provisions to the Texas Workers'
1-3 Compensation Act regarding judicial review, court judgments and
1-4 settlements, and Texas Workers' Compensation Commission's right to
1-5 notice and opportunity to intervene prior to issuance of a judgment
1-6 or settlement.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 410.256, Labor Code, is amended to read
1-9 as follows:
1-10 Sec. 410.256. COURT APPROVAL OF SETTLEMENT. (a) A claim or
1-11 issue may not be settled contrary to the provisions of an appeals
1-12 panel decision issued on the claim or issue unless a party to the
1-13 proceeding has filed for judicial review under this subchapter or
1-14 Subchapter G. The trial court must approve a settlement made by the
1-15 parties after judicial review of an award is sought and before the
1-16 court enters judgment.
1-17 (b) The court may not approve a settlement except on a
1-18 finding that:
1-19 (1) the settlement accurately reflects the agreement
1-20 between the parties;
1-21 (2) the settlement adheres to all appropriate
1-22 provisions of the law; and
1-23 (3) under the law and facts, the settlement is in the
1-24 best interest of the claimant.
2-1 (c) [(b)] A settlement may not provide for:
2-2 (1) payment of any benefits in a lump sum except as
2-3 provided by Section 408.128; or
2-4 (2) limitation or termination of the claimant's right
2-5 to medical benefits under Section 408.021.
2-6 (d) [(c)] A settlement or agreement that resolves an issue
2-7 of impairment may not be made before the claimant reaches maximum
2-8 medical improvement and must adopt on of the impairment ratings
2-9 under Subchapter G, Chapter 408.
2-10 (e) [(d)] A party proposing a settlement before judgment is
2-11 entered by the trial court may petition the court orally or in
2-12 writing for approval of the settlement.
2-13 (f) Settlement of a claim or issue under this section does
2-14 not constitute a modification or reversal of the appeals panel
2-15 decision awarding benefits for the purpose of Section 410.205.
2-16 (g) Settlement of a claim or issue must be in compliance
2-17 with all appropriate provisions of the law, including this section
2-18 and Section 410.259 of this subchapter. A settlement which on its
2-19 face does not comply with this section is void.
2-20 SECTION 2. Subchapter F, Chapter 410, Labor Code, is amended
2-21 by adding Sections 410.257 and 410.258 to read as follows:
2-22 Sec. 410.257. JUDGMENT AFTER JUDICIAL REVIEW. (a) A
2-23 judgment entered by a court on judicial review of an appeals panel
2-24 decision under this subchapter or Subchapter G must comply with all
2-25 appropriate provisions of the law.
2-26 (b) A judgment under this section may not provide for:
2-27 (1) payment of benefits in a lump sum except as
3-1 provided by Section 408.128; or
3-2 (2) the limitation or termination of the claimant's
3-3 right to medical benefits under Section 408.021.
3-4 (c) A judgment that resolves an issue of impairment may not
3-5 be entered before the date the claimant reaches maximum medical
3-6 improvement. The judgment must adopt an impairment rating under
3-7 Subchapter G, Chapter 408, except to the extend Section 410.307
3-8 applies.
3-9 (d) A judgment under this section may not order
3-10 reimbursement from the subsequent injury fund.
3-11 (e) A judgment under this section based on default or on an
3-12 agreement of the parties does not constitute a modification or
3-13 reversal of an appeals panel decision awarding benefits for the
3-14 purpose of Section 410.205.
3-15 (f) A judgment that on its face does not comply with this
3-16 section is void.
3-17 Sec. 410.258. NOTIFICATION OF COMMISSION OF PROPOSED
3-18 JUDGMENTS AND SETTLEMENTS; RIGHT TO INTERVENE. (a) The party who
3-19 initiated a proceeding under this subchapter or Subchapter G must
3-20 file any proposed judgment or settlement made by the parties to the
3-21 proceeding, including a proposed default judgment, with the
3-22 executive director of the commission not later the 30th day before
3-23 the date on which the court is scheduled to enter the judgment or
3-24 approve the settlement. The proposed judgment or settlement must
3-25 be mailed to the executive director by certified mail, return
3-26 receipt requested.
3-27 (b) The commission may intervene in a proceeding under
4-1 Subsection (a) not later than the 30th day after the date of
4-2 receipt of the proposed judgment or settlement.
4-3 (c) The commission shall review the proposed judgment or
4-4 settlement to determine compliance with all appropriate provisions
4-5 of the law. If the commission determines that the proposal is not
4-6 in compliance with the law, the commission may intervene as a
4-7 matter of right in the proceeding not later than the 30th day after
4-8 the date of receipt of the proposed judgment or settlement. The
4-9 court may limit the extent of the commission's intervention to
4-10 providing the information described by Subsection (e).
4-11 (d) If the commission does not intervene before the 31st day
4-12 after the date of receipt of the proposed judgment or settlement,
4-13 the court shall enter the judgment or approve the settlement if the
4-14 court determines that the proposed judgment or settlement is in
4-15 compliance with all appropriate provisions of the law.
4-16 (e) If the commission intervenes in the proceeding, the
4-17 commission shall inform the court of each reason the commission
4-18 believes the proposed judgment or settlement is not in compliance
4-19 with the law. The court shall give full consideration to the
4-20 information provided by the commission before entering a judgment
4-21 or approving a settlement.
4-22 (f) A judgment entered or settlement approved without
4-23 complying with the requirements of this section is void.
4-24 SECTION 3. This Act takes effect September 1, 1997, and
4-25 applies to a proceeding initiated on or after that date. A
4-26 proceeding initiated before the effective date of this Act is
4-27 governed by the law in effect on the date the proceeding was
5-1 initiated, and the former law is continued in effect for that
5-2 purpose.
5-3 SECTION 4. The importance of this legislation and the
5-4 crowded condition of the calendars in both houses create an
5-5 emergency and an imperative public necessity that the
5-6 constitutional rule requiring bills to be read on three several
5-7 days in each house be suspended, and this rule is hereby suspended,
5-8 and that this Act take effect and be in force from and after its
5-9 passage, and it is so enacted.