S.B. 1282 78(R)    BILL ANALYSIS


S.B. 1282
By: Fraser
Business & Industry
Committee Report (Unamended)



BACKGROUND 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.  S.B. 1282 provides
that written notice would occur only upon the written notice to the
certified claims servicing contractor or to the entity responsible for
administering the claim. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 


ANALYSIS

SECTION 1.  Amends Section 409.021, Labor Code, by adding Subsection (f),
to provide that "written notice" to a certified self-insurer to occurs
only on written notice to the qualified claims servicing contractor
designated by the certified self-insurer under Section 407.061(c), for the
purposes of this section. 

SECTION 2.  Amends Section 504.002, Labor Code, by adding Subsection (d),
to provide that "written notice" to a political subdivision that
self-insures, either individually or collectively through an interlocal
agreement as described by Section 504.011, occurs only on written notice
to the intergovernmental risk pool or other entity responsible for
administering the claim.  

SECTION 3.  Effective date:  September 1, 2003.
            Makes application of this Act prospective.



EFFECTIVE DATE

September 1, 2003