By Tillery H.B. No. 2641
77R6793 KSD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to administrative penalties assessed for certain
1-3 unmeritorious challenges to workers' compensation claims.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter H, Chapter 408, Labor Code, is amended
1-6 by adding Section 408.1475 to read as follows:
1-7 Sec. 408.1475. FAILURE TO SHOW GOOD CAUSE FOR CONTESTED CASE
1-8 HEARING; ADMINISTRATIVE PENALTY. (a) An insurance carrier who
1-9 requests a contested case hearing under Subchapter D, Chapter 410,
1-10 after unsuccessfully contesting an employee's entitlement to
1-11 supplemental income benefits or the amount of supplemental income
1-12 benefits in a benefits review conference under Section 408.147,
1-13 must show good cause, as determined by the hearing officer
1-14 conducting the contested case hearing, to justify the insurance
1-15 carrier's request for the contested case hearing.
1-16 (b) If the hearing officer determines that the insurance
1-17 carrier has not shown good cause to justify the insurance carrier's
1-18 request for the contested case hearing, the hearing officer shall
1-19 dismiss the contested case hearing and assess an administrative
1-20 penalty in an amount not to exceed $10,000 against the insurance
1-21 carrier.
1-22 SECTION 2. This Act takes effect September 1, 2001, and
1-23 applies only to a contested case hearing conducted by the division
1-24 of hearings of the Texas Workers' Compensation Commission that
2-1 begins on or after that date. A contested case hearing that begins
2-2 before the effective date of this Act is governed by the law in
2-3 effect on the date the hearing begins, and the former law is
2-4 continued in effect for that purpose.