SRC-MSY S.B. 819 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 819
78R1101 KSD-DBy: Fraser
State Affairs
3/24/2003
As Filed


DIGEST AND PURPOSE 

The Labor Code currently requires a workers' compensation insurance
carrier to begin payment of benefits or give written notice of refusal
within seven days of receiving notice of the injury, and provides that
failure to do so constitutes a Class B administrative violation.  In
addition, the Labor Code provides that if a carrier fails to contest
compensability within 60 days of receiving notice of an injury, the
carrier waives all rights to do so at a later date. As proposed, S.B. 819
provides that if a carrier fails to begin payment of benefits or give
written notice within seven days of receiving notice of the injury
constitutes, the carrier does commit an administrative violation but still
retains the right to contest the compensability of the injury within 60
days of receiving notice of the injury. 

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 409.021, Labor Code, by redesignating
Subsections (b)-(e) as Subsections (c)-(f) and adding a new Subsection
(b), as follows: 

(b)  Provides that an insurance carrier who fails to begin the payment of
benefits or file a notice of refusal within a certain timeframe does not
waive the carrier's right to contest the compensability of the injury but
commits an administrative violation subject to Subsection (f). 

SECTION 2.  Effective date:  September 1, 2003.
Makes application of this Act prospective.