To change the appeals process in the workers' compensation provisions of title 5, United States Code.

Summary: Amends Federal civil service law to revise the appeals process under provisions for workers' compensation for Federal employees.

SECTION 1. APPEALS PROCESS.

    (a) Reference.--Whenever in this section an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of title 5, United States Code.
    (b) Time Period for Decision.--Section 8118 is amended by adding at 
the end the following:
    ``(f) A final decision by the agency which first receives a claim 
shall be made within 90 days of the date the claim is received by the 
agency. If a final decision on a claim is not made within such 90 days, 
the claimant shall be authorized continuation of pay under section 8118 
from the date compensation benefits were terminated until a final 
decision is made on such claim.''.
    (c) Claimant's Physician.--Section 8123(a) is amended by adding at 
the end the following: ``The Secretary shall provide the claimant's 
physician with the same opportunity and information as was provided to 
the physician acting for the Secretary, including the statement of 
accepted facts and all medical information in the claimant's file.''.
    (d) Physician Fees.--Section 8123(c) is amended by adding at the 
end the following: ``The fees paid to physicians acting for the 
Secretary shall not exceed the fees paid for the claimant's physicians. 
The claimant's physician and bills for medical services provided the 
claimant shall be paid within 60 days of the submission of an approved 
claim.''.
    (e) Hearing Date.--Section 8124(b)(1) is amended--
            (1) by adding after the first sentence the following: ``The 
        hearing shall be held within 90 days of the date the request 
        for a hearing is received by the Secretary.'', and
            (2) by adding at the end the following: ``If the Secretary 
        does not hold a hearing within 90 days of the date the hearing 
        is requested or if the Secretary does not issue a further 
        decision within 30 days after the hearing ends, the 
        compensation benefits for any claimant challenging a 
        suspension, termination, or reduction in benefits shall be 
        reinstated from the date such benefits were terminated until 
        such time as a decision has been made.''.
    (f) Conduct of Hearing.--
            (1) Administrative law judges.--Section 8124(b)(1) is 
        amended by striking ``on his claim before a representative of 
        the Secretary.'' and inserting a period and the following: 
        ``The hearing shall be conducted by administrative law judges 
        of the Department of Labor.''
            (2) Claimant's authority.--Paragraph (2) of section 8124(b) 
        is amended to read as follows:
    ``(2) In conducting the hearing the Secretary shall follow the 
requirements of chapter 5 of part I. The claimant shall have the right 
to confront and cross examine all adverse witnesses and present such 
evidence as the claimant feels necessary for consideration of the 
claim. The claimant's employer shall not be present at the hearing but 
shall be provided an opportunity to comment on the transcript of the 
hearing.''.
    (g) Appeals.--Section 8124 is amended--
            (1) in subsection (a), by adding after and below paragraph 
        (2) the following: ``After a decision has been made by the 
        Secretary on a claim under this subsection there shall be no 
        further administrative proceedings on the claim. The claimant 
        may make an appeal for judicial review of the Secretary's 
        decision within 90 days of the date the decision is received by 
        the claimant in accordance with chapter 7 of part I.'', and
            (2) by adding at the end the following:
    ``(c) After a decision has been made by the Secretary after a 
hearing on a claim there shall be no further administrative proceedings 
on the claim. The claimant may make an appeal for judicial review in 
accordance with chapter 7 of part I.''.
    (h) Attorneys' Fees.--Section 8127 is amended by adding at the end 
the following:
    ``(c) Except as provided in subsection (d), claimant's attorney or 
representative shall be entitled to receive a fee of 25 percent of the 
benefits awarded to the claimant or $5,000, whichever is less. The 
Secretary shall take such action as may be necessary to assure that 
payment is made directly to the attorney.
    ``(d) If the claimant prevails in a decision of a Federal court 
under chapter 7 of part I, the claimant's attorney shall be paid by the 
Secretary, but not from the claimant's award, for the work of such 
attorney if the position of the Secretary with respect to such claimant 
was found under section 2412(c) of title 28 to be not substantially 
justified.''.
    (i) Review of Award.--Section 8128 is amended by striking out 
subsection (b) and by striking out ``(a)'' in subsection (a).
    (j) Mortgagees and Other Secured Creditors.--Section 8130 is 
amended by adding at the end the following: ``If a mortgagee or other 
secured creditor of the primary residential dwelling of a claimant 
agrees to forebear foreclosure or forfeiture of such dwelling until a 
final decision is rendered on the claim of the claimant under this 
chapter, the claimant may give security under rules promulgated by the 
Secretary to ensure direct payment from the approved award of the 
Secretary on such claim to such mortgagee or other secured creditor for 
all delinquent payments, including interest. The Secretary shall not 
pay, and no liens shall be given, for attorneys' fees, recording costs, 
penalty clauses, or other charges other than delinquent payments, 
including interest, to such mortgagee or other secured creditor. No 
mortgagee or other secured creditor may hold a lien on the claimant's 
primary residential dwelling for any amount in addition to claimant's 
delinquent payments, including interest.''.
    (k) Subrogations and Adjustments.--Section 8132 is amended by 
adding at the end the following: ``In no case shall a subrogation 
secured under section 8131 or an adjustment after recovery made under 
this section exceed the amount the claimant received in an action 
brought against a person other than the United States for lost wages 
and medical expenses. In a subrogation under section 8131, the 
Secretary may not bring an action for loss of consortium or other 
compensatory or punitive damages other than damages for lost wages and 
medical expenses.''.
    (l) Employee's Compensation Appeals Board.--Section 8149 is amended 
by striking out the second sentence.