1-1 By: Solomons, Brimer (Senate Sponsor - Armbrister) H.B. No. 3137
1-2 (In the Senate - Received from the House April 14, 1997;
1-3 April 16, 1997, read first time and referred to Committee on
1-4 Economic Development; May 18, 1997, reported favorably, as amended,
1-5 by the following vote: Yeas 10, Nays 0; May 18, 1997, sent to
1-6 printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Lucio
1-8 Amend House Bill 3137 as follows:
1-9 In SECTION 1 of the bill, amend proposed subsection
1-10 (g), Section 410.256, Labor Code (page 1, line 55, engrossed
1-11 version), by striking "Section 410.259" and inserting "Section
1-12 410.258" in lieu thereof.
1-13 A BILL TO BE ENTITLED
1-14 AN ACT
1-15 relating to adding new provisions to the Texas Workers'
1-16 Compensation Act regarding judicial review, court judgments and
1-17 settlements, and Texas Workers' Compensation Commission's right to
1-18 notice and opportunity to intervene prior to issuance of a judgment
1-19 or settlement.
1-20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-21 SECTION 1. Section 410.256, Labor Code, is amended to read
1-22 as follows:
1-23 Sec. 410.256. COURT APPROVAL OF SETTLEMENT. (a) A claim or
1-24 issue may not be settled contrary to the provisions of an appeals
1-25 panel decision issued on the claim or issue unless a party to the
1-26 proceeding has filed for judicial review under this subchapter or
1-27 Subchapter G. The trial court must approve a settlement made by the
1-28 parties after judicial review of an award is sought and before the
1-29 court enters judgment.
1-30 (b) The court may not approve a settlement except on a
1-31 finding that:
1-32 (1) the settlement accurately reflects the agreement
1-33 between the parties;
1-34 (2) the settlement adheres to all appropriate
1-35 provisions of the law; and
1-36 (3) under the law and facts, the settlement is in the
1-37 best interest of the claimant.
1-38 (c) [(b)] A settlement may not provide for:
1-39 (1) payment of any benefits in a lump sum except as
1-40 provided by Section 408.128; or
1-41 (2) the limitation or termination of the claimant's
1-42 right to medical benefits under Section 408.021.
1-43 (d) [(c)] A settlement or agreement that resolves an issue
1-44 of impairment may not be made before the claimant reaches maximum
1-45 medical improvement and must adopt on of the impairment ratings
1-46 under Subchapter G, Chapter 408.
1-47 (e) [(d)] A party proposing a settlement before judgment is
1-48 entered by the trial court may petition the court orally or in
1-49 writing for approval of the settlement.
1-50 (f) Settlement of a claim or issue under this section does
1-51 not constitute a modification or reversal of the appeals panel
1-52 decision awarding benefits for the purpose of Section 410.205.
1-53 (g) Settlement of a claim or issue must be in compliance
1-54 with all appropriate provisions of the law, including this section
1-55 and Section 410.259 of this subchapter. A settlement which on its
1-56 face does not comply with this section is void.
1-57 SECTION 2. Subchapter F, Chapter 410, Labor Code, is amended
1-58 by adding Sections 410.257 and 410.258 to read as follows:
1-59 Sec. 410.257. JUDGMENT AFTER JUDICIAL REVIEW. (a) A
1-60 judgment entered by a court on judicial review of an appeals panel
1-61 decision under this subchapter or Subchapter G must comply with all
1-62 appropriate provisions of the law.
1-63 (b) A judgment under this section may not provide for:
1-64 (1) payment of benefits in a lump sum except as
2-1 provided by Section 408.128; or
2-2 (2) the limitation or termination of the claimant's
2-3 right to medical benefits under Section 408.021.
2-4 (c) A judgment that resolves an issue of impairment may not
2-5 be entered before the date the claimant reaches maximum medical
2-6 improvement. The judgment must adopt an impairment rating under
2-7 Subchapter G, Chapter 408, except to the extent Section 410.307
2-8 applies.
2-9 (d) A judgment under this section may not order
2-10 reimbursement from the subsequent injury fund.
2-11 (e) A judgment under this section based on default or on an
2-12 agreement of the parties does not constitute a modification or
2-13 reversal of an appeals panel decision awarding benefits for the
2-14 purpose of Section 410.205.
2-15 (f) A judgment that on its face does not comply with this
2-16 section is void.
2-17 Sec. 410.258. NOTIFICATION OF COMMISSION OF PROPOSED
2-18 JUDGMENTS AND SETTLEMENTS; RIGHT TO INTERVENE. (a) The party who
2-19 initiated a proceeding under this subchapter or Subchapter G must
2-20 file any proposed judgment or settlement made by the parties to the
2-21 proceeding, including a proposed default judgment, with the
2-22 executive director of the commission not later than the 30th day
2-23 before the date on which the court is scheduled to enter the
2-24 judgment or approve the settlement. The proposed judgment or
2-25 settlement must be mailed to the executive director by certified
2-26 mail, return receipt requested.
2-27 (b) The commission may intervene in a proceeding under
2-28 Subsection (a) not later than the 30th day after the date of
2-29 receipt of the proposed judgment or settlement.
2-30 (c) The commission shall review the proposed judgment or
2-31 settlement to determine compliance with all appropriate provisions
2-32 of the law. If the commission determines that the proposal is not
2-33 in compliance with the law, the commission may intervene as a
2-34 matter of right in the proceeding not later than the 30th day after
2-35 the date of receipt of the proposed judgment or settlement. The
2-36 court may limit the extent of the commission's intervention to
2-37 providing the information described by Subsection (e).
2-38 (d) If the commission does not intervene before the 31st day
2-39 after the date of receipt of the proposed judgment or settlement,
2-40 the court shall enter the judgment or approve the settlement if the
2-41 court determines that the proposed judgment or settlement is in
2-42 compliance with all appropriate provisions of the law.
2-43 (e) If the commission intervenes in the proceeding, the
2-44 commission shall inform the court of each reason the commission
2-45 believes the proposed judgment or settlement is not in compliance
2-46 with the law. The court shall give full consideration to the
2-47 information provided by the commission before entering a judgment
2-48 or approving a settlement.
2-49 (f) A judgment entered or settlement approved without
2-50 complying with the requirements of this section is void.
2-51 SECTION 3. This Act takes effect September 1, 1997, and
2-52 applies to a proceeding initiated on or after that date. A
2-53 proceeding initiated before the effective date of this Act is
2-54 governed by the law in effect on the date the proceeding was
2-55 initiated, and the former law is continued in effect for that
2-56 purpose.
2-57 SECTION 4. The importance of this legislation and the
2-58 crowded condition of the calendars in both houses create an
2-59 emergency and an imperative public necessity that the
2-60 constitutional rule requiring bills to be read on three several
2-61 days in each house be suspended, and this rule is hereby suspended,
2-62 and that this Act take effect and be in force from and after its
2-63 passage, and it is so enacted.
2-64 * * * * *