HBA-CCH H.B. 3151 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3151
By: Nixon, Joe
Business & Industry
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

In Downs v. Continental Casualty Co., the San Antonio court of appeals
ruled that Texas workers' compensation law provides that an insurance
carrier waives its right to dispute compensability if the carrier fails to
pay benefits or give written notice of its refusal to pay within seven days
of receiving notice of an injury.  However, the court's ruling conflicts
with the Texas Workers' Compensation Commission's interpretation of current
law and with TWCC rules.  House Bill 3151 clarifies that an insurance
carrier commits an administrative violation, but does not waive the right
to dispute compensability by failing to begin the payment of benefits  or
give notice of its refusal to make payments within seven days of receiving
notice of an injury.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3151 amends the Labor Code to provide that an insurance carrier
who fails to begin the payment of workers' compensation benefits or to file
a notice of refusal on or before the seventh day after the notification
date of an injury does not waive the carrier's right to contest the
compensability of the injury but commits a Class B administrative
violation.  

EFFECTIVE DATE

September 1, 2001.