By:  Barrientos                              S.B. No. 1885

         97S0525/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to certain proceedings under the Texas Workers'

 1-2     Compensation Act.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 401.021, Labor Code, is amended to read

 1-5     as follows:

 1-6           Sec. 401.021.  Application of Other Acts.  Except as

 1-7     otherwise provided by this subtitle:

 1-8                 (1)  a proceeding, hearing, judicial review, or

 1-9     enforcement of a commission order, decision, or rule is governed by

1-10     the following subchapters and sections of Chapter 2001, Government

1-11     Code:

1-12                       (A)  Subchapters A, B, D, E, G, and H, excluding

1-13     Sections 2001.004(3) and 2001.005;

1-14                       (B)  Sections 2001.051, 2001.052, and 2001.053;

1-15                       (C)  Sections 2001.056 through 2001.062; and

1-16                       (D)  Section 2001.141(c);

1-17                 (2)  a proceeding, hearing, judicial review, or

1-18     enforcement of a commission order, decision, or rule is governed by

1-19     Subchapters A and B, Chapter 2002, Government Code, excluding

1-20     Sections 2002.001(2) and 2002.023;

1-21                 (3)  Chapter 551, Government Code, applies to a

1-22     proceeding under this subtitle, other than:

1-23                       (A)  a benefit review conference;

 2-1                       (B)  a contested case hearing;

 2-2                       (C)  [an appeals panel proceeding;]

 2-3                       [(D)]  arbitration; or

 2-4                       (D) [(E)]  another proceeding involving a

 2-5     determination on a workers' compensation claim; and

 2-6                 (4)  Chapter 552, Government Code, applies to a record

 2-7     of the commission or the research center.

 2-8           SECTION 2.  Subsection (b), Section 402.073, Labor Code, is

 2-9     amended to read as follows:

2-10           (b)  In a case in which a hearing is conducted by the State

2-11     Office of Administrative Hearings under Chapter 410, Section

2-12     411.049, 413.031, or 415.034, the administrative law judge who

2-13     conducts the hearing for the State Office of Administrative

2-14     Hearings shall enter the final decision in the case after

2-15     completion of the hearing.

2-16           SECTION 3.  Subsection (c), Section 409.042, Labor Code, is

2-17     amended to read as follows:

2-18           (c)  The commission by rule shall adopt training guidelines

2-19     and continuing education requirements for ombudsmen.  Training

2-20     provided under this subsection must:

2-21                 (1)  include education regarding this subtitle and[,]

2-22     rules adopted under this subtitle[, and appeals panel decisions,]

2-23     with emphasis on benefits and the dispute resolution process; and

2-24                 (2)  require an ombudsman undergoing training to be

2-25     observed and monitored by an experienced ombudsman during daily

 3-1     activities conducted under this subchapter.

 3-2           SECTION 4.  Section 410.004, Labor Code is amended to read as

 3-3     follows:

 3-4           Sec. 410.004.  Division of Hearings.  The division shall

 3-5     conduct benefit review conferences and[, contested case hearings,]

 3-6     arbitration[, and appeals] within the commission related to

 3-7     workers' compensation claims.

 3-8           SECTION 5.  Section 410.152, Labor Code, is amended to read

 3-9     as follows:

3-10           Sec. 410.152.  HEARING OFFICERS[; QUALIFICATIONS].  (a)  A

3-11     hearing under this subchapter shall be conducted by an

3-12     administrative law judge employed by the State Office of

3-13     Administrative Hearings [officer shall conduct a contested case

3-14     hearing].

3-15           (b)  Any reference in this subchapter to a hearing officer

3-16     who has a duty related to a case pending before the commission

3-17     means an administrative law judge employed by the State Office of

3-18     Administrative Hearings [A hearing officer must be licensed to

3-19     practice law in this state].

3-20           SECTION 6.  Section 410.169, Labor Code, is amended to read

3-21     as follows:

3-22           Sec. 410.169.  Effect of Decision.  A decision of a hearing

3-23     officer regarding benefits is final in the absence of a timely

3-24     appeal by a party and is binding during the pendency of an appeal

3-25     to a district court [the appeals panel].

 4-1           SECTION 7.  Section 410.251, Labor Code, is amended to read

 4-2     as follows:

 4-3           Sec. 410.251.  Exhaustion of Remedies.  A party that has

 4-4     exhausted its administrative remedies under this subtitle and that

 4-5     is aggrieved by a final decision in a contested case [of the

 4-6     appeals panel]  may seek judicial review under this subchapter and

 4-7     Subchapter G, if applicable.

 4-8           SECTION 8.  Subsection (a), Section 410.252, Labor Code, is

 4-9     amended to read as follows:

4-10           (a)  A party may seek judicial review by filing suit not

4-11     later than the 40th day after the date on which the decision of the

4-12     administrative law judge [appeals panel] was filed with the

4-13     division.

4-14           SECTION 9.  Subsection (a), Section 410.301, Labor Code, is

4-15     amended to read as follows:

4-16           (a)  Judicial review of a final decision of an administrative

4-17     law judge [a commission appeals panel] regarding compensability or

4-18     eligibility for or the amount of income or death benefits shall be

4-19     conducted as provided by this subchapter.

4-20           SECTION 10.  Sections 410.302 and 410.304, Labor Code, are

4-21     amended to read as follows:

4-22           Sec. 410.302.  Limitation of Issues.  A trial under this

4-23     subchapter is limited to issues decided by the administrative law

4-24     judge [commission appeals panel] and on which judicial review is

4-25     sought.  The pleadings must specifically set forth the

 5-1     determinations of the administrative law judge [appeals panel] by

 5-2     which the party is aggrieved.

 5-3           Sec. 410.304.  CONSIDERATION OF ADMINISTRATIVE LAW JUDGE

 5-4     [APPEALS PANEL] DECISION.  (a)  In a jury trial, the court, before

 5-5     submitting the case to the jury, shall inform the jury in the

 5-6     court's instructions, charge, or questions to the jury of the

 5-7     administrative law judge's [commission appeals panel] decision on

 5-8     each disputed issue described by Section 410.301(a) that is

 5-9     submitted to the jury.

5-10           (b)  In a trial to the court without a jury, the court in

5-11     rendering its judgment on an issue described by Section 410.301(a)

5-12     shall consider the decision of the administrative law judge

5-13     [commission appeals panel].

5-14           SECTION 11.  Subsection (c), Section 410.005, and Subchapter

5-15     E, Chapter 410, Labor Code, are repealed.

5-16           SECTION 12.  (a)  This Act applies to all appeals panel and

5-17     contested case hearings conducted under Chapter 410, Labor Code:

5-18                 (1)  commenced on or after the effective date of this

5-19     Act; or

5-20                 (2)  pending on the effective date of this Act and in

5-21     which the proceeding begins on or after that date.

5-22           (b)  A hearing commenced before the effective date of this

5-23     Act that is in progress on the effective date of this Act is

5-24     governed by the applicable law in effect immediately before the

5-25     effective date of this Act, and that law is continued in effect for

 6-1     that purpose.

 6-2           SECTION 13.  This Act takes effect September 1, 1997.

 6-3           SECTION 14.  The importance of this legislation and the

 6-4     crowded condition of the calendars in both houses create an

 6-5     emergency and an imperative public necessity that the

 6-6     constitutional rule requiring bills to be read on three several

 6-7     days in each house be suspended, and this rule is hereby suspended.