By Van de Putte                                        S.B. No. 942
         77R7563 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to insurance carrier reimbursement regarding benefit
 1-3     overpayments on certain workers' compensation claims.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 410.209, Labor Code, is amended to read as
 1-6     follows:
 1-7           Sec. 410.209.  REIMBURSEMENT FOR OVERPAYMENT. (a)  The
 1-8     subsequent injury fund shall reimburse an insurance carrier for any
 1-9     overpayments of benefits made under an interlocutory order or
1-10     decision if that order or decision is reversed or modified by final
1-11     arbitration, order, or decision of the commission or a court.
1-12           (b)  An insurance carrier that receives reimbursement under
1-13     Subsection (a)  does not have a cause of action against the injured
1-14     employee for any further recovery regarding the overpayment.
1-15           (c)  The commission shall adopt rules as necessary to
1-16     implement this section, including rules to provide for a periodic
1-17     reimbursement schedule, providing for reimbursement at least
1-18     annually.
1-19           SECTION 2. Section 413.055, Labor Code, is amended to read as
1-20     follows:
1-21           Sec. 413.055.  INTERLOCUTORY ORDERS; REIMBURSEMENT. (a)  The
1-22     executive director, as provided by commission rule, may enter an
1-23     interlocutory order for the payment of all or part of medical
1-24     benefits.  The order may address accrued benefits, future benefits,
 2-1     or both accrued benefits and future benefits.  A party that
 2-2     disputes an order entered under this subsection is entitled to a
 2-3     hearing conducted by the State Office of Administrative Hearings in
 2-4     the manner provided for a contested case under Chapter 2001,
 2-5     Government Code.  The order is binding during the pendency of the
 2-6     appeal.
 2-7           (b)  The subsequent injury fund shall reimburse an insurance
 2-8     carrier for any overpayments of benefits made under an order
 2-9     entered under Subsection (a)  if the order is reversed or modified
2-10     by final arbitration, order, or decision of the commission or a
2-11     court.  The commission shall adopt rules to provide for a periodic
2-12     reimbursement schedule, providing for reimbursement at least
2-13     annually.
2-14           (c)  An insurance carrier that receives reimbursement under
2-15     Subsection (b) does not have a cause of action against the injured
2-16     employee for any further recovery regarding the overpayment.  [A
2-17     party that disputes an order entered under Subsection (a)  is
2-18     entitled to a hearing.  The hearing shall be conducted by the State
2-19     Office of Administrative Hearings in the manner provided for a
2-20     contested case under Chapter 2001, Government Code.  The order is
2-21     binding during the pendency of the appeal.]
2-22           SECTION 3. This Act takes effect September 1, 2001, and
2-23     applies only to a claim for workers' compensation benefits based on
2-24     a compensable injury that occurs on or after that date. A claim
2-25     based on a compensable injury that occurs before that date is
2-26     governed by the law in effect on the date that the compensable
2-27     injury occurred, and the former law is continued in effect for that
 3-1     purpose.