1-1                                   AN ACT
 1-2     relating to interlocutory orders and decisions used in adjudication
 1-3     of disputes regarding workers' compensation benefits and to
 1-4     reimbursement from the subsequent injury fund for overpayments of
 1-5     benefits made under those interlocutory orders or decisions.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Section 402.073(b), Labor Code, is amended to
 1-8     read as follows:
 1-9           (b)  In a case in which a hearing is conducted by the State
1-10     Office of Administrative Hearings under Section 411.049, 413.031,
1-11     413.055, or 415.034, the administrative law judge who conducts the
1-12     hearing for the State Office of Administrative Hearings shall enter
1-13     the final decision in the case after completion of the hearing.
1-14           SECTION 2.  Section 410.032, Labor Code, is amended to read
1-15     as follows:
1-16           Sec. 410.032.  PAYMENT OF BENEFITS UNDER INTERLOCUTORY
1-17     ORDER[; REIMBURSEMENT].  [(a)]  If a benefit review officer
1-18     recommends that benefits be paid or not paid, the benefit review
1-19     officer may issue an interlocutory order for the payment of all or
1-20     part of medical benefits or  income benefits. The order may address
1-21     accrued benefits, future benefits, or both accrued benefits and
1-22     future benefits [to pay or not pay the benefits].
1-23           [(b)  The subsequent injury fund shall reimburse an insurance
1-24     carrier for any overpayments of benefits made under an order
 2-1     entered under this section if that order is reversed or modified at
 2-2     a contested case hearing or at arbitration.  The commission shall
 2-3     adopt rules to provide for a periodic reimbursement schedule,
 2-4     providing for reimbursement at least annually.]
 2-5           SECTION 3.  Section 410.168, Labor Code, is amended to read
 2-6     as follows:
 2-7           Sec. 410.168.  DECISION.  (a)  The hearing officer shall
 2-8     issue a written decision that includes:
 2-9                 (1)  findings of fact and conclusions of law;
2-10                 (2)  a determination of whether benefits are due; and
2-11                 (3)  an award of benefits due.
2-12           (b)  The decision may address accrued benefits, future
2-13     benefits, or both accrued benefits and future benefits.
2-14           (c)  The hearing officer may enter an interlocutory order for
2-15     the payment of all or part of medical benefits or income benefits.
2-16     The order may address accrued benefits, future benefits, or both
2-17     accrued benefits and future benefits.  The order is binding during
2-18     the pendency of an appeal to the appeals panel.
2-19           (d)  On a form that the commission by rule prescribes, the
2-20     hearing officer shall issue a separate written decision regarding
2-21     attorney's fees and any matter related to attorney's fees.  The
2-22     decision regarding attorney's fees and the form may not be made
2-23     known to a jury in a judicial review of an award, including an
2-24     appeal.
2-25           (e) [(c)]  The commission by rule shall prescribe the times
2-26     within which the hearing officer must file the decisions with the
2-27     division.
 3-1           (f) [(d)]  The division shall send a copy of the decision to
 3-2     each party.
 3-3           SECTION 4.  Section 410.205, Labor Code, is amended to read
 3-4     as follows:
 3-5           Sec. 410.205.  EFFECT OF DECISION[; REIMBURSEMENT FOR
 3-6     OVERPAYMENT].  (a)  A decision of an appeals panel regarding
 3-7     benefits is final in the absence of a timely appeal for judicial
 3-8     review.
 3-9           (b)  The decision of the appeals panel regarding benefits is
3-10     binding during the pendency of an appeal under Subchapter F or G.
3-11           [(c)  If the court of last resort in the case finally
3-12     modifies or reverses an appeals panel decision awarding benefits,
3-13     the insurance carrier who has paid benefits as required by this
3-14     section may recover reimbursement of any benefit overpayments from
3-15     the subsequent injury fund.]
3-16           SECTION 5.  Subchapter E, Chapter 410, Labor Code, is amended
3-17     by adding Section 410.209 to read as follows:
3-18           Sec. 410.209.  REIMBURSEMENT FOR OVERPAYMENT.  The subsequent
3-19     injury fund shall reimburse an insurance carrier for any
3-20     overpayments of benefits made under an interlocutory order or
3-21     decision if that order or decision is reversed or modified by final
3-22     arbitration, order, or decision of the commission or a court.  The
3-23     commission shall adopt rules to provide for a periodic
3-24     reimbursement schedule, providing for reimbursement at least
3-25     annually.
3-26           SECTION 6.   Subchapter E, Chapter 413, Labor Code, is
3-27     amended by adding Section  413.055 to read as follows:
 4-1           Sec. 413.055.  INTERLOCUTORY ORDERS; REIMBURSEMENT.  (a)  The
 4-2     executive director, as provided by commission rule, may enter an
 4-3     interlocutory order for the payment of all or part of medical
 4-4     benefits. The order may address accrued benefits, future benefits,
 4-5     or both accrued benefits and future benefits.
 4-6           (b)  The subsequent injury fund shall reimburse an insurance
 4-7     carrier for any overpayments of benefits made under an order
 4-8     entered under Subsection (a)  if the order is reversed or modified
 4-9     by final arbitration, order, or decision of the commission or a
4-10     court.  The commission shall adopt rules to provide for a periodic
4-11     reimbursement schedule, providing for reimbursement at least
4-12     annually.
4-13           (c)  A party that disputes an order entered under Subsection
4-14     (a)  is entitled to a hearing.  The hearing shall be conducted by
4-15     the State Office of Administrative Hearings in the manner provided
4-16     for a contested case under Chapter 2001, Government Code.  The
4-17     order is binding during the pendency of the appeal.
4-18           SECTION 7.  This Act takes effect September 1, 1999, and
4-19     applies only to an interlocutory order or decision regarding a
4-20     claim for workers' compensation benefits that is issued on or after
4-21     that date.  An interlocutory order or decision issued before that
4-22     date is governed by the law in effect on the date that the
4-23     interlocutory order or decision was issued, and the former law is
4-24     continued in effect for that purpose.
4-25           SECTION 8.  The importance of this legislation and the
4-26     crowded condition of the calendars in both houses create an
4-27     emergency and an imperative public necessity that the
 5-1     constitutional rule requiring bills to be read on three several
 5-2     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2512 was passed by the House on April
         21, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2512 was passed by the Senate on May
         19, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor