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.