SESSION OF 1998
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2799
As Amended by Senate Committee on Commerce
H.B. 2799 amends the Workers Compensation Act to provide
- Allow allocated loss adjustment expenses, which may include
legal and medical expenses incurred in defense of the claim,
expert witness fees, arbitration fees, copying charges,
utilization review expenses, and appeals fees, to be included
with optional deductibles that insurers may offer in workers
compensation insurance policies.
- Allow the admissibility of utilization and peer review reports
at preliminary hearings.
- Allow for the conservatorship of certain minors entitled to
workers compensation to be in accord with the Probate Code.
- Allow for video conferencing in a mediation conference.
- Expand the list of criminal behavior to include a person who
receives unentitled temporary total disability benefits or
unentitled permanent total disability benefits while employed.
Also included is a person who conspires with another to
commit the above described acts.
- Penalties for the illegal acts described above would be
expanded as follows:
- a severity level 7, nonperson felony, if the amount
received as a benefit or payment is more than
$25,000 but less than $50,000;
- a severity level 6, nonperson felony if the amount
received is more than $50,000 but less than
- a severity level 5, nonperson felony if the amount
received is more than $100,000.
Other criminal penalties to be included are as follows:
- Any person who knowingly and intentionally presents a false
certificate of insurance shall be guilty of a level 8, nonperson
- A health care provider who knowingly and intentionally
submits a charge for health care that was not furnished, shall
be guilty of a level 9, nonperson felony.
- Any person who obtains or attempts to obtain a more
favorable workers compensation insurance premium rate than
that to which the person is entitled, who prevents, reduces,
avoids, or attempts to prevent, reduce, or avoid the payment
of any compensation or who fails to communicate a settlement offer or similar information to a claimant under the
Workers Compensation Act by, in any such case knowingly
- making a false or misleading statement;
- misrepresenting or concealing a material fact;
- fabricating, concealing, or destroying a document; or
- conspiring with another person or persons to commit
these illegal acts shall be guilty of a level 9, nonperson
- Provide immunity for a person who refers a possible fraudulent or abusive act when the referral is made in good faith.
A conferee representing the American Insurance Association
spoke in favor of the bill.
The fiscal note indicates no long-range fiscal effect.
Certain Senate Committee amendments were similar to
provisions contained in S.B. 555.
1. *Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at