Enrolled Bill Summary

            House Bill 1203 amends the Labor Code to require the State Office of Risk Management to administer insurance services obtained by state agencies, to operate as a full-service risk manager and insurance manager for certain state agencies, and to purchase insurance coverage for certain other agencies, and it prohibits the latter agencies from purchasing property, casualty, or liability insurance coverage without the approval of the risk management board. The bill authorizes the board by rule to establish a formula that considers certain agency factors in allocating the costs of the program in an interagency contract. The bill requires members of the board to have demonstrated experience in the fields of insurance and insurance regulation, requires the executive director of the office to provide copies of all rules to the commissioner of insurance and to submit a report to the legislature relating to costs of and losses incurred under insurance coverages purchased for state agencies, and requires state agencies exempt from these provisions because of certain self-insurance coverages obtained before January 1, 1989, to identify insurance policies that they purchase, other than for life or health insurance, to the Legislative Budget Board. The bill also amends the Insurance Code to require an insurer that enters into a policy or other contract or agreement with a state agency for the purchase of property, casualty, or liability insurance coverage to report such a transaction and provide relevant information to the office not later than the 30th day before it is to occur.

            House Bill 1203 also requires the office to administer the program for the purchase of surety bonds for state officers and employees. To limit the purchase of surety bonds by state agencies in favor of self-insurance by the state, the bill amends the Government Code to limit the circumstances under which an agency may purchase a surety bond and to prohibit a state officer or employee from being disqualified because a surety bond has not been obtained for the officer or employee.

            Finally, House Bill 1203 amends the Labor Code to authorize employees of the Texas Department of Transportation to elect to use accrued sick leave and annual leave before receiving workers' compensation income benefits.