SRC-LBB H.B. 145 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 145
By: Solomons (Fraser)
State Affairs
5/21/2003
Engrossed


DIGEST AND PURPOSE 

Under current law, a claimant may sue an insurance carrier to enforce
compliance with a final order or decision rendered by the Texas Workers'
Compensation Commission (TWCC). Current law also provides for an
administrative penalty for failure to comply with an order from TWCC.
These provisions may not be effective due to delays and litigation costs
the claimant incurs and the lack of enforcement by the court system.
Despite being authorized to issue interlocutory orders by the 76th
Legislature, TWCC's authority may have been limited due to the language of
the law. H.B. 145 clarifies TWCC's authority to enforce its orders. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 410.208, Labor Code, as follows:

Sec. 410.208.  JUDICIAL ENFORCEMENT OF ORDER OR DECISION; ADMINISTRATIVE
VIOLATION.  (a)  Authorizes the Texas Workers' Compensation Commission
(TWCC) to bring suit in Travis County to enforce the order or decision, if
a person refuses or fails to comply with an interlocutory order, final
order, or decision of TWCC. 

(b)  Creates this subsection from existing text to authorize a claimant,
if an insurance carrier refuses or fails to comply with an interlocutory
order, a final order, or a decision of TWCC, to bring suit in the county
of the claimant's residence or the county in which the injury occurred to
enforce the order or decision. 

(c)  Provides that if TWCC brings suit to enforce an interlocutory order,
final order, or decision of TWCC, TWCC is entitled to reasonable
attorney's fees and costs for the prosecution and collection of the claim,
in addition to a judgment enforcing the order or decision and any other
remedy provided by law. 

(d)  Redesignated from Subsection (b).  Provides that a claimant who
brings suit to enforce an interlocutory order, final order, or decision of
TWCC is entitled to a penalty equal to 12 percent of the amount of
benefits recovered in the judgment, interest, and reasonable attorney's
fees for the prosecution and collection of the claim, in addition to a
judgment enforcing the order or decision. 

(e) Redesignated from Subsection (c) to provide that a person commits a
violation if the person fails or refuses to comply with an interlocutory
order, final order, or decision of TWCC within 20 days after the date the
order or decision becomes final.   

SECTION 2.  Amends Section 410.253, Labor Code, as follows:

  Sec. 410.253.  New heading:  SERVICE; NOTICE. (a) Requires a party
seeking judicial  review to simultaneously: 

  (1)  file a copy of the party's petition with the court;
  (2)  serve any opposing party to the suit; and
  (3)  provide written notice of the suit or notice of appeal to TWCC.

(b)  Prohibits a party from seeking judicial review under Section 410.251
unless the party has provided written notice of the suit to TWCC as
required by this section. 

SECTION 3.  Amends Section 410.256(f), Labor Code, to provide that
settlement of a claim or issue under this section does not constitute a
modification or reversal of the decision awarding benefits for the purpose
of Section 410.209, rather than 410.205.  Deletes a reference to appeals
panel. 

SECTION 4.  Amends Section 410.257(e), Labor Code, to make conforming
changes. 

SECTION 5.  (a)  Effective date:  September 1, 2003.

            (b)  Makes application of this Act prospective.