1-1     By:  Giddings (Senate Sponsor - West)                 H.B. No. 2512
 1-2           (In the Senate - Received from the House April 22, 1999;
 1-3     April 26, 1999, read first time and referred to Committee on
 1-4     Economic Development; May 13, 1999, reported favorably by the
 1-5     following vote:  Yeas 4, Nays 0; May 13, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to interlocutory orders and decisions used in adjudication
 1-9     of disputes regarding workers' compensation benefits and to
1-10     reimbursement from the subsequent injury fund for overpayments of
1-11     benefits made under those interlocutory orders or decisions.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 402.073(b), Labor Code, is amended to
1-14     read as follows:
1-15           (b)  In a case in which a hearing is conducted by the State
1-16     Office of Administrative Hearings under Section 411.049, 413.031,
1-17     413.055, or 415.034, the administrative law judge who conducts the
1-18     hearing for the State Office of Administrative Hearings shall enter
1-19     the final decision in the case after completion of the hearing.
1-20           SECTION 2.  Section 410.032, Labor Code, is amended to read
1-21     as follows:
1-22           Sec. 410.032.  PAYMENT OF BENEFITS UNDER INTERLOCUTORY
1-23     ORDER[; REIMBURSEMENT].  [(a)]  If a benefit review officer
1-24     recommends that benefits be paid or not paid, the benefit review
1-25     officer may issue an interlocutory order for the payment of all or
1-26     part of medical benefits or  income benefits. The order may address
1-27     accrued benefits, future benefits, or both accrued benefits and
1-28     future benefits [to pay or not pay the benefits].
1-29           [(b)  The subsequent injury fund shall reimburse an insurance
1-30     carrier for any overpayments of benefits made under an order
1-31     entered under this section if that order is reversed or modified at
1-32     a contested case hearing or at arbitration.  The commission shall
1-33     adopt rules to provide for a periodic reimbursement schedule,
1-34     providing for reimbursement at least annually.]
1-35           SECTION 3.  Section 410.168, Labor Code, is amended to read
1-36     as follows:
1-37           Sec. 410.168.  DECISION.  (a)  The hearing officer shall
1-38     issue a written decision that includes:
1-39                 (1)  findings of fact and conclusions of law;
1-40                 (2)  a determination of whether benefits are due; and
1-41                 (3)  an award of benefits due.
1-42           (b)  The decision may address accrued benefits, future
1-43     benefits, or both accrued benefits and future benefits.
1-44           (c)  The hearing officer may enter an interlocutory order for
1-45     the payment of all or part of medical benefits or income benefits.
1-46     The order may address accrued benefits, future benefits, or both
1-47     accrued benefits and future benefits.  The order is binding during
1-48     the pendency of an appeal to the appeals panel.
1-49           (d)  On a form that the commission by rule prescribes, the
1-50     hearing officer shall issue a separate written decision regarding
1-51     attorney's fees and any matter related to attorney's fees.  The
1-52     decision regarding attorney's fees and the form may not be made
1-53     known to a jury in a judicial review of an award, including an
1-54     appeal.
1-55           (e) [(c)]  The commission by rule shall prescribe the times
1-56     within which the hearing officer must file the decisions with the
1-57     division.
1-58           (f) [(d)]  The division shall send a copy of the decision to
1-59     each party.
1-60           SECTION 4.  Section 410.205, Labor Code, is amended to read
1-61     as follows:
1-62           Sec. 410.205.  EFFECT OF DECISION[; REIMBURSEMENT FOR
1-63     OVERPAYMENT].  (a)  A decision of an appeals panel regarding
1-64     benefits is final in the absence of a timely appeal for judicial
 2-1     review.
 2-2           (b)  The decision of the appeals panel regarding benefits is
 2-3     binding during the pendency of an appeal under Subchapter F or G.
 2-4           [(c)  If the court of last resort in the case finally
 2-5     modifies or reverses an appeals panel decision awarding benefits,
 2-6     the insurance carrier who has paid benefits as required by this
 2-7     section may recover reimbursement of any benefit overpayments from
 2-8     the subsequent injury fund.]
 2-9           SECTION 5.  Subchapter E, Chapter 410, Labor Code, is amended
2-10     by adding Section 410.209 to read as follows:
2-11           Sec. 410.209.  REIMBURSEMENT FOR OVERPAYMENT.  The subsequent
2-12     injury fund shall reimburse an insurance carrier for any
2-13     overpayments of benefits made under an interlocutory order or
2-14     decision if that order or decision is reversed or modified by final
2-15     arbitration, order, or decision of the commission or a court.  The
2-16     commission shall adopt rules to provide for a periodic
2-17     reimbursement schedule, providing for reimbursement at least
2-18     annually.
2-19           SECTION 6.   Subchapter E, Chapter 413, Labor Code, is
2-20     amended by adding Section  413.055 to read as follows:
2-21           Sec. 413.055.  INTERLOCUTORY ORDERS; REIMBURSEMENT.  (a)  The
2-22     executive director, as provided by commission rule, may enter an
2-23     interlocutory order for the payment of all or part of medical
2-24     benefits. The order may address accrued benefits, future benefits,
2-25     or both accrued benefits and future benefits.
2-26           (b)  The subsequent injury fund shall reimburse an insurance
2-27     carrier for any overpayments of benefits made under an order
2-28     entered under Subsection (a)  if the order is reversed or modified
2-29     by final arbitration, order, or decision of the commission or a
2-30     court.  The commission shall adopt rules to provide for a periodic
2-31     reimbursement schedule, providing for reimbursement at least
2-32     annually.
2-33           (c)  A party that disputes an order entered under Subsection
2-34     (a)  is entitled to a hearing.  The hearing shall be conducted by
2-35     the State Office of Administrative Hearings in the manner provided
2-36     for a contested case under Chapter 2001, Government Code.  The
2-37     order is binding during the pendency of the appeal.
2-38           SECTION 7.  This Act takes effect September 1, 1999, and
2-39     applies only to an interlocutory order or decision regarding a
2-40     claim for workers' compensation benefits that is issued on or after
2-41     that date.  An interlocutory order or decision issued before that
2-42     date is governed by the law in effect on the date that the
2-43     interlocutory order or decision was issued, and the former law is
2-44     continued in effect for that purpose.
2-45           SECTION 8.  The importance of this legislation and the
2-46     crowded condition of the calendars in both houses create an
2-47     emergency and an imperative public necessity that the
2-48     constitutional rule requiring bills to be read on three several
2-49     days in each house be suspended, and this rule is hereby suspended.
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