By Van de Putte                                        S.B. No. 902
         77R7561 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to administrative adjudication by the State Office of
 1-3     Administrative Hearings of disputes regarding workers' compensation
 1-4     claims.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 402.021(a), Labor Code, is amended to read
 1-7     as  follows:
 1-8           (a)  The commission shall have:
 1-9                 (1)  a division of workers' health and safety;
1-10                 (2)  a division of medical review; and
1-11                 (3)  a division of compliance and practices[; and]
1-12                 [(4)  a division of hearings].
1-13           SECTION 2. Section 402.073(a), Labor Code, is amended to read
1-14     as  follows:
1-15           (a)  The commission and the chief administrative law judge of
1-16     the State Office of Administrative Hearings by rule shall adopt
1-17     memoranda [a memorandum] of understanding governing administrative
1-18     proceedings conducted [procedure law hearings] under this subtitle
1-19     [conducted] by the State Office of Administrative Hearings,
1-20     including memoranda prescribing the payments to the office from the
1-21     commission for services provided to the commission by the office
1-22     under this subtitle [in the manner provided for a contested case
1-23     hearing under Chapter 2001, Government Code (the administrative
1-24     procedure law)].
 2-1           SECTION 3. Sections 408.005(d), (e), (f), and (g), Labor
 2-2     Code, are amended to read as follows:
 2-3           (d)  A settlement must be signed by the executive director
 2-4     [of the division of hearings] and all parties to the dispute.
 2-5           (e)  The commission [director of the division of hearings]
 2-6     shall approve a settlement if the commission [director] is
 2-7     satisfied that:
 2-8                 (1)  the settlement accurately reflects the agreement
 2-9     between the parties;
2-10                 (2)  the settlement reflects adherence to all
2-11     appropriate provisions of law and the policies of the commission;
2-12     and
2-13                 (3)  under the law and facts, the settlement is in the
2-14     best interest of the claimant.
2-15           (f)  A settlement that is not approved or rejected before the
2-16     16th day after the date the settlement is submitted to the
2-17     commission [director of the division of hearings] is considered to
2-18     be approved [by the director] on that date.
2-19           (g)  A settlement takes effect on the date it is approved by
2-20     the commission [director of the division of hearings].
2-21           SECTION 4. Section 410.001, Labor Code, is amended to read as
2-22     follows:
2-23           Sec. 410.001.  DEFINITION [DEFINITIONS]. In this chapter,
2-24     "office" [:]
2-25                 [(1)  "Director"] means the State Office of
2-26     Administrative Hearings [director of the division].
2-27                 [(2)  "Division" means the division of hearings.]
 3-1           SECTION 5. Section 410.004, Labor Code, is amended to read as
 3-2     follows:
 3-3           Sec. 410.004.  STATE OFFICE OF ADMINISTRATIVE [DIVISION OF]
 3-4     HEARINGS. The office [division] shall conduct benefit review
 3-5     conferences, contested case hearings, arbitration, and appeals
 3-6     within the commission related to workers' compensation claims.
 3-7           SECTION 6. Sections 410.022(b) and (c), Labor Code, are
 3-8     amended to read as  follows:
 3-9           (b)  A benefit review officer must:
3-10                 (1)  be an administrative law judge employed by the
3-11     office [employee of the commission]; and
3-12                 (2)  be trained in the principles and procedures of
3-13     dispute mediation.
3-14           (c)  The office may [commission shall institute and] maintain
3-15     an education and training program for benefit review officers and
3-16     shall consult or contract with the Federal Mediation and
3-17     Conciliation Service or other appropriate organizations for this
3-18     purpose.
3-19           SECTION 7. Section 410.027(a), Labor Code, is amended to read
3-20     as  follows:
3-21           (a)  The commission, in  cooperation with the office, shall
3-22     adopt rules for conducting benefit review conferences.
3-23           SECTION 8. Section 410.029(c), Labor Code, is amended to read
3-24     as follows:
3-25           (c)  A settlement takes effect on the date it is approved by
3-26     the commission [director] in accordance with Section 408.005.
3-27           SECTION 9. Sections 410.034(a) and (c), Labor Code, are
 4-1     amended to read as  follows:
 4-2           (a)  The benefit review officer shall file the signed
 4-3     agreement and the report with the commission [director].
 4-4           (c)  The commission [director] shall furnish a copy of the
 4-5     file-stamped report to:
 4-6                 (1)  the claimant;
 4-7                 (2)  the employer; and
 4-8                 (3)  the insurance carrier.
 4-9           SECTION 10. Section 410.102(a), Labor Code, is amended to
4-10     read as  follows:
4-11           (a)  An arbitrator may not [must] be an employee of the
4-12     commission.  An arbitrator must be an employee of the office,
4-13     except that the commission may contract with qualified arbitrators
4-14     on a determination of special need.
4-15           SECTION 11. Section 410.110, Labor Code, is amended to read
4-16     as  follows:
4-17           Sec. 410.110.  CONTINUANCE. (a)  A request by a party for a
4-18     continuance of the arbitration to another date must be directed to
4-19     the commission [director].  The commission [director] may grant a
4-20     continuance only if the commission [director] determines, giving
4-21     due regard to the availability of the arbitrator, that good cause
4-22     for the continuance exists.
4-23           (b)  If the commission [director] grants a continuance under
4-24     this section, the rescheduled date may not be later than the 30th
4-25     day after the original date of the arbitration.
4-26           (c)  Without regard to whether good cause exists, the
4-27     commission [director] may not grant more than one continuance to
 5-1     each party.
 5-2           SECTION 12. Section 410.152(b), Labor Code, is amended to
 5-3     read as  follows:
 5-4           (b)  A hearing officer must be an administrative law judge
 5-5     employed by the office [licensed to practice law in this state].
 5-6           SECTION 13. Sections 410.168(e) and (f), Labor Code, are
 5-7     amended to read as  follows:
 5-8           (e)  The commission by rule shall prescribe the times within
 5-9     which the hearing officer must file the decisions with the
5-10     commission [division].
5-11           (f)  The commission [division] shall send a copy of the
5-12     decision to each party.
5-13           SECTION 14. Section 410.201(b), Labor Code, is amended to
5-14     read as  follows:
5-15           (b)  An appeals judge must be an administrative law judge
5-16     employed by the office [licensed to practice law in this state].
5-17           SECTION 15. Section 410.202(a), Labor Code, is amended to
5-18     read as  follows:
5-19           (a)  To appeal the decision of a hearing officer, a party
5-20     shall file a written request for appeal with the appeals panel not
5-21     later than the 15th day after the date on which the decision of the
5-22     hearing officer is received from the commission [division] and
5-23     shall on the same date serve a copy of the request for appeal on
5-24     the other party.
5-25           SECTION 16. Section 410.204(a), Labor Code, is amended to
5-26     read as  follows:
5-27           (a)  An appeals panel shall issue a decision that determines
 6-1     each issue on which review was requested.  The decision must be in
 6-2     writing and shall be issued not later than the 30th day after the
 6-3     date on which the written response to the request for appeal is
 6-4     filed.  The appeals panel shall file a copy of the decision with
 6-5     the commission [director].
 6-6           SECTION 17. Section 410.252(a), Labor Code, is amended to
 6-7     read as  follows:
 6-8           (a)  A party may seek judicial review by filing suit not
 6-9     later than the 40th day after the date on which the decision of the
6-10     appeals panel was filed with the commission [division].
6-11           SECTION 18. Subchapter C, Chapter 2003, Government Code, is
6-12     amended by adding Section 2003.0495 to read as follows:
6-13           Sec. 2003.0495.  WORKERS' COMPENSATION DIVISION. The office
6-14     may establish a workers' compensation division to perform the
6-15     duties assigned to the office under Subtitle A, Title 5, Labor
6-16     Code.
6-17           SECTION 19. This Act takes effect September 1, 2001, and
6-18     applies only to a claim for workers' compensation benefits based on
6-19     a compensable injury that occurs on or after that date.  A claim
6-20     based on a compensable injury that occurs before that date is
6-21     governed by the law in effect on the date that the compensable
6-22     injury occurred, and the former law is continued in effect for that
6-23     purpose.