H.B. No. 752 1-1 AN ACT 1-2 relating to the adoption of a nonsubstantive revision of the 1-3 statutes relating to labor and employment, including conforming 1-4 amendments, repeals, and penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. ADOPTION OF CODE. The Labor Code is adopted to 1-7 read as follows: 1-8 LABOR CODE 1-9 CONTENTS 1-10 TITLE 1. GENERAL PROVISIONS 1-11 CHAPTER 1. GENERAL PROVISIONS 1-12 (Chapters 2-20 reserved for expansion) 1-13 TITLE 2. PROTECTION OF LABORERS 1-14 SUBTITLE A. EMPLOYMENT DISCRIMINATION 1-15 CHAPTER 21. EMPLOYMENT DISCRIMINATION 1-16 (Chapters 22-50 reserved for expansion) 1-17 SUBTITLE B. RESTRICTIONS ON LABOR 1-18 CHAPTER 51. EMPLOYMENT OF CHILDREN 1-19 CHAPTER 52. MISCELLANEOUS RESTRICTIONS 1-20 (Chapters 53-60 reserved for expansion) 1-21 SUBTITLE C. WAGES 1-22 CHAPTER 61. PAYMENT OF WAGES 1-23 CHAPTER 62. MINIMUM WAGE 1-24 (Chapters 63-80 reserved for expansion) 2-1 SUBTITLE D. EMPLOYEE BENEFITS 2-2 CHAPTER 81. WORK AND FAMILY POLICIES 2-3 (Chapters 82-100 reserved for expansion) 2-4 TITLE 3. EMPLOYER-EMPLOYEE RELATIONS 2-5 CHAPTER 101. LABOR ORGANIZATIONS 2-6 CHAPTER 102. LABOR ARBITRATION 2-7 (Chapters 103-200 reserved for expansion) 2-8 TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT 2-9 SUBTITLE A. TEXAS UNEMPLOYMENT COMPENSATION ACT 2-10 CHAPTER 201. UNEMPLOYMENT COMPENSATION ACT--GENERAL 2-11 PROVISIONS 2-12 CHAPTER 202. TEXAS EMPLOYMENT COMMISSION 2-13 CHAPTER 203. FINANCING AND FUNDS 2-14 CHAPTER 204. CONTRIBUTIONS 2-15 CHAPTER 205. REIMBURSEMENTS 2-16 CHAPTER 206. UNEMPLOYMENT INSURANCE COVERAGE 2-17 CHAPTER 207. BENEFITS 2-18 CHAPTER 208. BENEFIT CLAIMS 2-19 CHAPTER 209. EXTENDED BENEFITS 2-20 CHAPTER 210. BACK PAY AWARDS; LOST OR MISPLACED WARRANTS 2-21 CHAPTER 211. RECIPROCAL ARRANGEMENTS 2-22 CHAPTER 212. DISPUTE RESOLUTION 2-23 CHAPTER 213. ENFORCEMENT OF TEXAS UNEMPLOYMENT COMPENSATION 2-24 ACT 2-25 CHAPTER 214. OFFENSES, PENALTIES, AND SANCTIONS 2-26 CHAPTER 215. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM 2-27 CHAPTER 216. COMMUNITIES IN SCHOOLS PROGRAM 3-1 CHAPTER 217. PROJECT RIO (REINTEGRATION OF OFFENDERS) 3-2 (Chapters 218-300 reserved for expansion) 3-3 SUBTITLE B. ADDITIONAL EMPLOYMENT SERVICES 3-4 CHAPTER 301. JOB TRAINING PARTNERSHIP ACT 3-5 CHAPTER 302. EMPLOYMENT COUNSELING FOR DISPLACED 3-6 HOMEMAKERS 3-7 (Chapters 303-400 reserved for expansion) 3-8 TITLE 5. WORKERS' COMPENSATION 3-9 SUBTITLE A. TEXAS WORKERS' COMPENSATION ACT 3-10 CHAPTER 401. GENERAL PROVISIONS 3-11 CHAPTER 402. TEXAS WORKERS' COMPENSATION COMMISSION 3-12 CHAPTER 403. COMMISSION FINANCING 3-13 CHAPTER 404. TEXAS WORKERS' COMPENSATION RESEARCH CENTER 3-14 CHAPTER 405. LEGISLATIVE OVERSIGHT COMMITTEE 3-15 CHAPTER 406. WORKERS' COMPENSATION INSURANCE COVERAGE 3-16 CHAPTER 407. SELF-INSURANCE REGULATION 3-17 CHAPTER 408. WORKERS' COMPENSATION BENEFITS 3-18 CHAPTER 409. COMPENSATION PROCEDURES 3-19 CHAPTER 410. ADJUDICATION OF DISPUTES 3-20 CHAPTER 411. WORKERS' HEALTH AND SAFETY 3-21 CHAPTER 412. DIVISION OF RISK MANAGEMENT 3-22 CHAPTER 413. MEDICAL REVIEW 3-23 CHAPTER 414. DIVISION OF COMPLIANCE AND PRACTICES 3-24 CHAPTER 415. ADMINISTRATIVE VIOLATIONS 3-25 CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH 3-26 OF DUTY 3-27 CHAPTER 417. THIRD-PARTY LIABILITY 4-1 (Chapters 418-450 reserved for expansion) 4-2 SUBTITLE B. DISCRIMINATION ISSUES 4-3 CHAPTER 451. DISCRIMINATION PROHIBITED 4-4 (Chapters 452-500 reserved for expansion) 4-5 SUBTITLE C. WORKERS' COMPENSATION INSURANCE COVERAGE FOR CERTAIN 4-6 GOVERNMENT EMPLOYEES 4-7 CHAPTER 501. WORKERS' COMPENSATION INSURANCE COVERAGE FOR STATE 4-8 EMPLOYEES, INCLUDING EMPLOYEES UNDER THE 4-9 DIRECTION OR CONTROL OF THE BOARD OF REGENTS 4-10 OF TEXAS TECH UNIVERSITY 4-11 CHAPTER 502. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 4-12 EMPLOYEES OF THE TEXAS A&M UNIVERSITY 4-13 SYSTEM 4-14 CHAPTER 503. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 4-15 EMPLOYEES OF THE UNIVERSITY OF TEXAS SYSTEM 4-16 CHAPTER 504. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 4-17 EMPLOYEES OF POLITICAL SUBDIVISIONS 4-18 CHAPTER 505. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 4-19 EMPLOYEES OF TEXAS DEPARTMENT OF 4-20 TRANSPORTATION 4-21 CHAPTER 506. PAYMENT OF CERTAIN JUDGMENTS 4-22 APPENDIX A. CONFORMING AMENDMENTS 4-23 APPENDIX B. CODE CONSTRUCTION ACT 4-24 APPENDIX C. DISPOSITION TABLE 4-25 TITLE 1. GENERAL PROVISIONS 4-26 CHAPTER 1. GENERAL PROVISIONS 4-27 Sec. 1.001. PURPOSE OF CODE 5-1 Sec. 1.002. CONSTRUCTION OF CODE 5-2 Sec. 1.003. INTERNAL REFERENCES 5-3 Sec. 1.004. REFERENCE IN LAW TO STATUTE REVISED BY CODE 5-4 CHAPTER 1. GENERAL PROVISIONS 5-5 Sec. 1.001. PURPOSE OF CODE. (a) This code is enacted as a 5-6 part of the state's continuing statutory revision program, begun by 5-7 the Texas Legislative Council in 1963 as directed by the 5-8 legislature in the law codified as Section 323.007, Government 5-9 Code. The program contemplates a topic-by-topic revision of the 5-10 state's general and permanent statute law without substantive 5-11 change. 5-12 (b) Consistent with the objectives of the statutory revision 5-13 program, the purpose of this code is to make the law encompassed by 5-14 this code more accessible and understandable, by: 5-15 (1) rearranging the statutes into a more logical 5-16 order; 5-17 (2) employing a format and numbering system designed 5-18 to facilitate citation of the law and to accommodate future 5-19 expansion of the law; 5-20 (3) eliminating repealed, duplicative, 5-21 unconstitutional, expired, executed, and other ineffective 5-22 provisions; and 5-23 (4) restating the law in modern American English to 5-24 the greatest extent possible. (New.) 5-25 Sec. 1.002. CONSTRUCTION OF CODE. Chapter 311, Government 5-26 Code (Code Construction Act), applies to the construction of each 5-27 provision in this code except as otherwise expressly provided by 6-1 this code. (New.) 6-2 Sec. 1.003. INTERNAL REFERENCES. In this code: 6-3 (1) a reference to a title, chapter, or section 6-4 without further identification is a reference to a title, chapter, 6-5 or section of this code; and 6-6 (2) a reference to a subtitle, subchapter, subsection, 6-7 subdivision, paragraph, or other numbered or lettered unit without 6-8 further identification is a reference to a unit of the next larger 6-9 unit of this code in which the reference appears. (New.) 6-10 Sec. 1.004. REFERENCE IN LAW TO STATUTE REVISED BY CODE. A 6-11 reference in a law to a statute or a part of a statute revised by 6-12 this code is considered to be a reference to the part of this code 6-13 that revises that statute or part of the statute. (New.) 6-14 (Chapters 2-20 reserved for expansion) 6-15 TITLE 2. PROTECTION OF LABORERS 6-16 SUBTITLE A. EMPLOYMENT DISCRIMINATION 6-17 CHAPTER 21. EMPLOYMENT DISCRIMINATION 6-18 SUBCHAPTER A. GENERAL PROVISIONS 6-19 Sec. 21.001. PURPOSES 6-20 Sec. 21.002. DEFINITIONS 6-21 Sec. 21.003. GENERAL POWERS AND DUTIES OF COMMISSION 6-22 Sec. 21.004. CRIMINAL OFFENSE OF INTERFERENCE; PENALTY 6-23 Sec. 21.005. EFFECT ON OTHER STATE OR FEDERAL LAWS 6-24 Sec. 21.006. CONFORMITY WITH FEDERAL STATUTES 6-25 (Sections 21.007-21.050 reserved for expansion) 6-26 SUBCHAPTER B. UNLAWFUL EMPLOYMENT PRACTICES 6-27 Sec. 21.051. DISCRIMINATION BY EMPLOYER 7-1 Sec. 21.052. DISCRIMINATION BY EMPLOYMENT AGENCY 7-2 Sec. 21.053. DISCRIMINATION BY LABOR ORGANIZATION 7-3 Sec. 21.054. ADMISSION OR PARTICIPATION IN TRAINING PROGRAM 7-4 Sec. 21.055. RETALIATION 7-5 Sec. 21.056. AIDING OR ABETTING DISCRIMINATION 7-6 Sec. 21.057. INTERFERENCE WITH COMMISSION 7-7 Sec. 21.058. PREVENTION OF COMPLIANCE 7-8 Sec. 21.059. DISCRIMINATORY NOTICE OR ADVERTISEMENT 7-9 Sec. 21.060. VIOLATION OF CONCILIATION AGREEMENT 7-10 Sec. 21.061. INSUFFICIENT EVIDENCE OF UNLAWFUL PRACTICE 7-11 (Sections 21.062-21.100 reserved for expansion) 7-12 SUBCHAPTER C. APPLICATION; EXCEPTIONS 7-13 Sec. 21.101. AGE DISCRIMINATION LIMITED TO INDIVIDUALS OF 7-14 CERTAIN AGE 7-15 Sec. 21.102. BONA FIDE EMPLOYEE BENEFIT PLAN; PRODUCTION 7-16 MEASUREMENT SYSTEM 7-17 Sec. 21.103. COMPULSORY RETIREMENT PERMITTED FOR CERTAIN 7-18 EMPLOYEES 7-19 Sec. 21.104. AGE REQUIREMENT FOR PEACE OFFICERS OR FIRE 7-20 FIGHTERS 7-21 Sec. 21.105. DISCRIMINATION BASED ON DISABILITY 7-22 Sec. 21.106. SEX DISCRIMINATION 7-23 Sec. 21.107. EFFECT ON ABORTION BENEFITS 7-24 Sec. 21.108. DISCRIMINATION BASED ON RELIGION 7-25 Sec. 21.109. EMPLOYMENT BY RELIGIOUS ORGANIZATION 7-26 Sec. 21.110. DISCRIMINATION BASED ON NATIONAL ORIGIN 7-27 Sec. 21.111. PERSON EMPLOYED OUT OF STATE 8-1 Sec. 21.112. EMPLOYEES AT DIFFERENT LOCATIONS 8-2 Sec. 21.113. IMBALANCE PLAN NOT REQUIRED 8-3 Sec. 21.114. PLAN TO END DISCRIMINATORY SCHOOL PRACTICES 8-4 Sec. 21.115. BUSINESS NECESSITY 8-5 Sec. 21.116. RELIANCE ON COMMISSION INTERPRETATION 8-6 OR OPINION 8-7 Sec. 21.117. EMPLOYMENT OF FAMILY MEMBER 8-8 Sec. 21.118. STATEWIDE HOMETOWN PLAN 8-9 Sec. 21.119. BONA FIDE OCCUPATIONAL QUALIFICATION 8-10 (Sections 21.120-21.150 reserved for expansion) 8-11 SUBCHAPTER D. LOCAL ENFORCEMENT 8-12 Sec. 21.151. ENFORCEMENT BY ORDINANCE 8-13 Sec. 21.152. CREATION OF LOCAL COMMISSION 8-14 Sec. 21.153. GENERAL POWERS AND DUTIES OF LOCAL COMMISSION 8-15 Sec. 21.154. INVESTIGATORY AND CONCILIATORY POWERS OF 8-16 LOCAL COMMISSION 8-17 Sec. 21.155. REFERRAL TO LOCAL COMMISSION AND ACTION 8-18 ON COMPLAINTS 8-19 Sec. 21.156. REFERRAL BY LOCAL COMMISSION TO STATE 8-20 COMMISSION 8-21 (Sections 21.157-21.200 reserved for expansion) 8-22 SUBCHAPTER E. ADMINISTRATIVE REVIEW 8-23 Sec. 21.201. FILING OF COMPLAINT; FORM AND CONTENT; 8-24 SERVICE 8-25 Sec. 21.202. STATUTE OF LIMITATIONS 8-26 Sec. 21.203. INVITATION FOR VOLUNTARY RESOLUTION 8-27 Sec. 21.204. INVESTIGATION BY COMMISSION 9-1 Sec. 21.205. LACK OF REASONABLE CAUSE; DISMISSAL OF 9-2 COMPLAINT 9-3 Sec. 21.206. DETERMINATION OF REASONABLE CAUSE; REVIEW 9-4 BY PANEL 9-5 Sec. 21.207. RESOLUTION BY INFORMAL METHODS 9-6 Sec. 21.208. NOTICE OF DISMISSAL OR UNRESOLVED COMPLAINT 9-7 Sec. 21.209. DISCRIMINATION BASED ON DISABILITY; DEFENSE OF 9-8 UNDUE HARDSHIP; ORDER 9-9 Sec. 21.210. TEMPORARY INJUNCTIVE RELIEF 9-10 Sec. 21.211. ELECTION OF REMEDIES 9-11 (Sections 21.212-21.250 reserved for expansion) 9-12 SUBCHAPTER F. JUDICIAL ENFORCEMENT 9-13 Sec. 21.251. CIVIL ACTION BY COMMISSION 9-14 Sec. 21.252. NOTICE OF COMPLAINANT'S RIGHT TO FILE CIVIL 9-15 ACTION 9-16 Sec. 21.253. EXPEDITED NOTICE OF COMPLAINANT'S RIGHT TO FILE 9-17 CIVIL ACTION 9-18 Sec. 21.254. CIVIL ACTION BY COMPLAINANT 9-19 Sec. 21.255. COMMISSION'S INTERVENTION IN CIVIL ACTION 9-20 BY COMPLAINANT 9-21 Sec. 21.256. STATUTE OF LIMITATIONS 9-22 Sec. 21.257. ASSIGNMENT TO EARLY HEARING 9-23 Sec. 21.258. INJUNCTION; EQUITABLE RELIEF 9-24 Sec. 21.259. ATTORNEY'S FEES; COSTS 9-25 Sec. 21.260. RELIEF FOR DISABLED EMPLOYEE OR APPLICANT 9-26 Sec. 21.261. COMPELLED COMPLIANCE 9-27 Sec. 21.262. TRIAL DE NOVO 10-1 (Sections 21.263-21.300 reserved for expansion) 10-2 SUBCHAPTER G. RECORDS 10-3 Sec. 21.301. RECORDKEEPING; REPORTS 10-4 Sec. 21.302. RECORDS; TRAINING PROGRAM 10-5 Sec. 21.303. CONFORMITY TO FEDERAL LAW 10-6 Sec. 21.304. CONFIDENTIALITY OF RECORDS 10-7 Sec. 21.305. ACCESS TO COMMISSION RECORDS 10-8 Sec. 21.306. SUBPOENA OF RECORD OR REPORT 10-9 CHAPTER 21. EMPLOYMENT DISCRIMINATION 10-10 SUBCHAPTER A. GENERAL PROVISIONS 10-11 Sec. 21.001. PURPOSES. The general purposes of this chapter 10-12 are to: 10-13 (1) provide for the execution of the policies of Title 10-14 VII of the Civil Rights Act of 1964 (42 U.S.C. Section 2000e et 10-15 seq.); 10-16 (2) identify an authority that meets the criteria 10-17 under 42 U.S.C. Section 2000e-5(c) and 29 U.S.C. Section 633; 10-18 (3) secure for persons in this state, including 10-19 persons with disabilities, freedom from discrimination in certain 10-20 employment transactions, in order to protect their personal 10-21 dignity; 10-22 (4) make available to the state the full productive 10-23 capacities of persons in this state; 10-24 (5) avoid domestic strife and unrest in this state; 10-25 (6) preserve the public safety, health, and general 10-26 welfare; and 10-27 (7) promote the interests, rights, and privileges of 11-1 persons in this state. (V.A.C.S. Art. 5221k, Sec. 1.02.) 11-2 Sec. 21.002. DEFINITIONS. In this chapter: 11-3 (1) "Bona fide occupational qualification" means a 11-4 qualification: 11-5 (A) reasonably related to the satisfactory 11-6 performance of the duties of a job; and 11-7 (B) for which a factual basis exists for the 11-8 belief that no person of an excluded group would be able to 11-9 satisfactorily perform the duties of the job with safety or 11-10 efficiency. 11-11 (2) "Commission" means the Commission on Human Rights. 11-12 (3) "Commissioner" means a member of the commission. 11-13 (4) "Disability" means a mental or physical 11-14 impairment, or a record of a mental or physical impairment, that 11-15 substantially limits at least one major life activity. The term 11-16 does not include: 11-17 (A) a current condition of addiction to the use 11-18 of alcohol, a drug, an illegal substance, or a federally 11-19 controlled substance; or 11-20 (B) a currently communicable disease or 11-21 infection, including acquired immune deficiency syndrome or 11-22 infection with the human immunodeficiency virus, that constitutes a 11-23 direct threat to the health or safety of other persons or that 11-24 makes the affected person unable to perform the duties of the 11-25 person's employment. 11-26 (5) "Employee" means an individual employed by an 11-27 employer, including an individual subject to the civil service laws 12-1 of this state or a political subdivision of this state. The term 12-2 does not include an individual elected by the qualified voters to 12-3 public office in this state or a political subdivision of this 12-4 state or an individual chosen by such a public officer to be: 12-5 (A) on the officer's personal staff; 12-6 (B) an appointee on the policy-making level; or 12-7 (C) an immediate adviser for the exercise of the 12-8 constitutional or legal powers of public office. 12-9 (6) "Employer" means: 12-10 (A) a person who is engaged in an industry 12-11 affecting commerce and who has 15 or more employees for each 12-12 working day in each of 20 or more calendar weeks in the current or 12-13 preceding calendar year; 12-14 (B) an agent of a person described by Paragraph 12-15 (A); or 12-16 (C) a county, municipality, state agency, or 12-17 state instrumentality, including a public institution of education, 12-18 regardless of the number of employees. 12-19 (7) "Employment agency" means a person or an agent of 12-20 the person who regularly undertakes, with or without compensation, 12-21 to procure: 12-22 (A) employees for an employer; or 12-23 (B) the opportunity for employees to work for an 12-24 employer. 12-25 (8) "Labor organization" means a labor organization 12-26 engaged in an industry affecting commerce. The term includes: 12-27 (A) an organization, an agency, or an employee 13-1 representation committee, group, association, or plan engaged in an 13-2 industry affecting commerce in which employees participate and that 13-3 exists for the purpose, in whole or in part, of dealing with 13-4 employers concerning grievances, labor disputes, wages, rates of 13-5 pay, hours, or other terms or conditions of employment; 13-6 (B) a conference, general committee, joint or 13-7 system board, or joint council that is subordinate to a national or 13-8 international labor organization; and 13-9 (C) an agent of a labor organization. 13-10 (9) "Local commission" means a commission on human 13-11 relations created by one or more political subdivisions. 13-12 (10) "Political subdivision" means a county or 13-13 municipality. 13-14 (11) "Respondent" means the person charged in a 13-15 complaint filed under this chapter. (V.A.C.S. Art. 5221k, Secs. 13-16 2.01(1), (2), (3), (4), (6), (7), (8), (9), (10); 6.01(a) (part).) 13-17 Sec. 21.003. GENERAL POWERS AND DUTIES OF COMMISSION. (a) 13-18 The commission may: 13-19 (1) promote the creation of local commissions on human 13-20 rights by cooperating or contracting with any person, including 13-21 agencies of the federal government and of other states; 13-22 (2) receive, investigate, conciliate, and rule on 13-23 complaints alleging violations of this chapter; 13-24 (3) file civil actions to carry out the purposes of 13-25 this chapter; 13-26 (4) request and, if necessary, compel by subpoena: 13-27 (A) the attendance of necessary witnesses for 14-1 examination under oath; and 14-2 (B) the production, for inspection and copying, 14-3 of records, documents, and other evidence relevant to the 14-4 investigation of alleged violations of this chapter; 14-5 (5) furnish technical assistance requested by a person 14-6 subject to this chapter to further compliance with this chapter or 14-7 with a rule or order issued under this chapter; 14-8 (6) recommend in its annual report legislation or 14-9 other action to carry out the purposes and policies of this 14-10 chapter; and 14-11 (7) adopt procedural rules to carry out the purposes 14-12 and policies of this chapter. 14-13 (b) The commission by rule may authorize a commissioner or 14-14 one of its staff to exercise the powers stated in Subsection (a)(4) 14-15 on behalf of the commission. 14-16 (c) The commission biennially shall develop an inventory of 14-17 equal employment opportunity policies and programs adopted and 14-18 implemented by the various state agencies. 14-19 (d) The commission at least annually shall make a 14-20 comprehensive written report to the governor and to the 14-21 legislature. 14-22 (e) The commission shall conduct a study of the policies and 14-23 programs of a selected state agency if the commission is directed 14-24 to conduct the study by legislative resolution or by executive 14-25 order of the governor. (V.A.C.S. Art. 5221k, Secs. 3.02(a) (part), 14-26 (d).) 14-27 Sec. 21.004. CRIMINAL OFFENSE OF INTERFERENCE; PENALTY. (a) 15-1 A person commits an offense if the person wilfully resists, 15-2 prevents, impedes, or interferes with the performance of a duty 15-3 under or the exercise of a power provided by this chapter. 15-4 (b) An offense under this section is a Class B misdemeanor. 15-5 (V.A.C.S. Art. 5221k, Sec. 9.02.) 15-6 Sec. 21.005. EFFECT ON OTHER STATE OR FEDERAL LAWS. This 15-7 chapter does not relieve a government agency or official of the 15-8 responsibility to ensure nondiscrimination in employment as 15-9 required under another provision of the state or federal 15-10 constitutions or laws. (V.A.C.S. Art. 5221k, Sec. 10.01.) 15-11 Sec. 21.006. CONFORMITY WITH FEDERAL STATUTES. If a 15-12 provision of this chapter is held by the Equal Employment 15-13 Opportunity Commission to disqualify the commission as a deferral 15-14 agency or for the receipt of federal funds, the commission shall 15-15 administer this chapter to qualify for deferral status or the 15-16 receipt of those funds until the legislature meets in its next 15-17 session and has an opportunity to amend this chapter. (V.A.C.S. 15-18 Art. 5221k, Sec. 10.05.) 15-19 (Sections 21.007-21.050 reserved for expansion) 15-20 SUBCHAPTER B. UNLAWFUL EMPLOYMENT PRACTICES 15-21 Sec. 21.051. DISCRIMINATION BY EMPLOYER. An employer 15-22 commits an unlawful employment practice if because of race, color, 15-23 disability, religion, sex, national origin, or age the employer: 15-24 (1) fails or refuses to hire an individual, discharges 15-25 an individual, or discriminates in any other manner against an 15-26 individual in connection with compensation or the terms, 15-27 conditions, or privileges of employment; or 16-1 (2) limits, segregates, or classifies an employee or 16-2 applicant for employment in a manner that would deprive or tend to 16-3 deprive an individual of any employment opportunity or adversely 16-4 affect in any other manner the status of an employee. (V.A.C.S. 16-5 Art. 5221k, Sec. 5.01.) 16-6 Sec. 21.052. DISCRIMINATION BY EMPLOYMENT AGENCY. An 16-7 employment agency commits an unlawful employment practice if the 16-8 employment agency: 16-9 (1) fails or refuses to refer for employment or 16-10 discriminates in any other manner against an individual because of 16-11 race, color, disability, religion, sex, national origin, or age; or 16-12 (2) classifies or refers an individual for employment 16-13 on the basis of race, color, disability, religion, sex, national 16-14 origin, or age. (V.A.C.S. Art. 5221k, Sec. 5.02.) 16-15 Sec. 21.053. DISCRIMINATION BY LABOR ORGANIZATION. A labor 16-16 organization commits an unlawful employment practice if because of 16-17 race, color, disability, religion, sex, national origin, or age the 16-18 labor organization: 16-19 (1) excludes or expels from membership or 16-20 discriminates in any other manner against an individual; or 16-21 (2) limits, segregates, or classifies a member or an 16-22 applicant for membership or classifies or fails or refuses to refer 16-23 for employment an individual in a manner that would: 16-24 (A) deprive or tend to deprive an individual of 16-25 any employment opportunity; 16-26 (B) limit an employment opportunity or adversely 16-27 affect in any other manner the status of an employee or of an 17-1 applicant for employment; or 17-2 (C) cause or attempt to cause an employer to 17-3 violate this subchapter. (V.A.C.S. Art. 5221k, Sec. 5.03.) 17-4 Sec. 21.054. ADMISSION OR PARTICIPATION IN TRAINING PROGRAM. 17-5 (a) Unless a training or retraining opportunity or program is 17-6 provided under an affirmative action plan approved under a federal 17-7 law, rule, or order, an employer, labor organization, or joint 17-8 labor-management committee controlling an apprenticeship, 17-9 on-the-job training, or other training or retraining program 17-10 commits an unlawful employment practice if the employer, labor 17-11 organization, or committee discriminates against an individual 17-12 because of race, color, disability, religion, sex, national origin, 17-13 or age in admission to or participation in the program. 17-14 (b) The prohibition against discrimination because of age in 17-15 this section applies only to discrimination because of age against 17-16 an individual who is at least 40 years of age but younger than 56 17-17 years of age. (V.A.C.S. Art. 5221k, Sec. 5.04.) 17-18 Sec. 21.055. RETALIATION. An employer, labor union, or 17-19 employment agency commits an unlawful employment practice if the 17-20 employer, labor union, or employment agency retaliates or 17-21 discriminates against a person who, under this chapter: 17-22 (1) opposes a discriminatory practice; 17-23 (2) makes or files a charge; 17-24 (3) files a complaint; or 17-25 (4) testifies, assists, or participates in any manner 17-26 in an investigation, proceeding, or hearing. (V.A.C.S. Art. 5221k, 17-27 Sec. 5.05(a) (part).) 18-1 Sec. 21.056. AIDING OR ABETTING DISCRIMINATION. An 18-2 employer, labor union, or employment agency commits an unlawful 18-3 employment practice if the employer, labor union, or employment 18-4 agency aids, abets, incites, or coerces a person to engage in a 18-5 discriminatory practice. (V.A.C.S. Art. 5221k, Sec. 5.05(a) 18-6 (part).) 18-7 Sec. 21.057. INTERFERENCE WITH COMMISSION. An employer, 18-8 labor union, or employment agency commits an unlawful employment 18-9 practice if the employer, labor union, or employment agency 18-10 wilfully interferes with the performance of a duty or the exercise 18-11 of a power under this chapter or Chapter 461, Government Code, by 18-12 the commission, the commission's staff, or the commission's 18-13 representative. (V.A.C.S. Art. 5221k, Sec. 5.05(a) (part).) 18-14 Sec. 21.058. PREVENTION OF COMPLIANCE. An employer, labor 18-15 union, or employment agency commits an unlawful employment practice 18-16 if the employer, labor union, or employment agency wilfully 18-17 obstructs or prevents a person from complying with this chapter or 18-18 a rule adopted or order issued under this chapter. (V.A.C.S. Art. 18-19 5221k, Sec. 5.05(a) (part).) 18-20 Sec. 21.059. DISCRIMINATORY NOTICE OR ADVERTISEMENT. (a) 18-21 An employer, labor organization, employment agency, or joint 18-22 labor-management committee controlling an apprenticeship, 18-23 on-the-job training, or other training or retraining program 18-24 commits an unlawful employment practice if the employer, labor 18-25 organization, employment agency, or committee prints or publishes 18-26 or causes to be printed or published a notice or advertisement 18-27 relating to employment that: 19-1 (1) indicates a preference, limitation, specification, 19-2 or discrimination based on race, color, disability, religion, sex, 19-3 national origin, or age; and 19-4 (2) concerns an employee's status, employment, or 19-5 admission to or membership or participation in a labor union or 19-6 training or retraining program. 19-7 (b) This section does not apply if disability, religion, 19-8 sex, national origin, or age is a bona fide occupational 19-9 qualification. (V.A.C.S. Art. 5221k, Sec. 5.05(b).) 19-10 Sec. 21.060. VIOLATION OF CONCILIATION AGREEMENT. A party 19-11 to a conciliation agreement made under this chapter commits an 19-12 unlawful employment practice if the party violates the terms of the 19-13 conciliation agreement. (V.A.C.S. Art. 5221k, Sec. 9.01.) 19-14 Sec. 21.061. INSUFFICIENT EVIDENCE OF UNLAWFUL PRACTICE. In 19-15 the absence of other evidence of an unlawful employment practice, 19-16 evidence of the employment of one person in place of another is not 19-17 sufficient to establish an unlawful employment practice. (V.A.C.S. 19-18 Art. 5221k, Sec. 5.07(b).) 19-19 (Sections 21.062-21.100 reserved for expansion) 19-20 SUBCHAPTER C. APPLICATION; EXCEPTIONS 19-21 Sec. 21.101. AGE DISCRIMINATION LIMITED TO INDIVIDUALS OF 19-22 CERTAIN AGE. Except as provided by Section 21.054, the provisions 19-23 of this chapter referring to discrimination because of age or on 19-24 the basis of age apply only to discrimination against an individual 19-25 40 years of age or older. (V.A.C.S. Art. 5221k, Sec. 1.04(a) 19-26 (part).) 19-27 Sec. 21.102. BONA FIDE EMPLOYEE BENEFIT PLAN; PRODUCTION 20-1 MEASUREMENT SYSTEM. (a) Except as provided by Subsections (b) and 20-2 (c), an employer does not commit an unlawful employment practice by 20-3 applying different standards of compensation or different terms, 20-4 conditions, or privileges of employment under: 20-5 (1) a bona fide seniority system, merit system, or an 20-6 employee benefit plan, such as a retirement, pension, or insurance 20-7 plan, that is not a subterfuge to evade this chapter; or 20-8 (2) a system that measures earnings by quantity or 20-9 quality of production. 20-10 (b) An employee benefit plan may not excuse a failure to 20-11 hire on the basis of age. A seniority system or employee benefit 20-12 plan may not require or permit involuntary retirement on the basis 20-13 of age except as permitted by Section 21.103. 20-14 (c) This section does not apply to standards of compensation 20-15 or terms, conditions, or privileges of employment that are 20-16 discriminatory on the basis of race, color, disability, religion, 20-17 sex, national origin, or age. (V.A.C.S. Art. 5221k, Sec. 5.07(a) 20-18 (part).) 20-19 Sec. 21.103. COMPULSORY RETIREMENT PERMITTED FOR CERTAIN 20-20 EMPLOYEES. This chapter does not prohibit the compulsory 20-21 retirement of an employee who is: 20-22 (1) at least 65 years of age; 20-23 (2) employed in a bona fide executive or high 20-24 policy-making position for the two years preceding retirement; and 20-25 (3) entitled to an immediate, nonforfeitable annual 20-26 retirement benefit from a pension, profit-sharing, savings, or 20-27 deferred compensation plan or a combination of plans of the 21-1 employee's employer that equals, in the aggregate, at least 21-2 $27,000. (V.A.C.S. Art. 5221k, Sec. 1.04(a) (part).) 21-3 Sec. 21.104. AGE REQUIREMENT FOR PEACE OFFICERS OR FIRE 21-4 FIGHTERS. An employer does not commit an unlawful employment 21-5 practice by imposing a minimum or maximum age requirement for peace 21-6 officers or fire fighters. (V.A.C.S. Art. 5221k, Sec. 5.07(a) 21-7 (part).) 21-8 Sec. 21.105. DISCRIMINATION BASED ON DISABILITY. A 21-9 provision in this subchapter or Subchapter B referring to 21-10 discrimination because of disability or on the basis of disability 21-11 applies only to discrimination because of or on the basis of a 21-12 physical or mental condition that does not impair an individual's 21-13 ability to reasonably perform a job. (V.A.C.S. Art. 5221k, Sec. 21-14 1.04(b).) 21-15 Sec. 21.106. SEX DISCRIMINATION. (a) A provision in this 21-16 chapter referring to discrimination because of sex or on the basis 21-17 of sex includes discrimination because of or on the basis of 21-18 pregnancy, childbirth, or a related medical condition. 21-19 (b) A woman affected by pregnancy, childbirth, or a related 21-20 medical condition shall be treated for all purposes related to 21-21 employment, including receipt of a benefit under a fringe benefit 21-22 program, in the same manner as another individual not affected but 21-23 similar in the individual's ability or inability to work. 21-24 (V.A.C.S. Art. 5221k, Sec. 1.04(c) (part).) 21-25 Sec. 21.107. EFFECT ON ABORTION BENEFITS. This chapter does 21-26 not: 21-27 (1) require an employer to pay for health insurance 22-1 benefits for abortion unless the life of the mother would be 22-2 endangered if the fetus were carried to term; 22-3 (2) preclude an employer from providing abortion 22-4 benefits; or 22-5 (3) affect a bargaining agreement relating to 22-6 abortion. (V.A.C.S. Art. 5221k, Sec. 1.04(c) (part).) 22-7 Sec. 21.108. DISCRIMINATION BASED ON RELIGION. A provision 22-8 in this chapter referring to discrimination because of religion or 22-9 on the basis of religion applies to discrimination because of or on 22-10 the basis of any aspect of religious observance, practice, or 22-11 belief, unless an employer demonstrates that the employer is unable 22-12 reasonably to accommodate the religious observance or practice of 22-13 an employee or applicant without undue hardship to the conduct of 22-14 the employer's business. (V.A.C.S. Art. 5221k, Sec. 2.01(14).) 22-15 Sec. 21.109. EMPLOYMENT BY RELIGIOUS ORGANIZATION. (a) A 22-16 religious corporation, association, society, or educational 22-17 institution or an educational organization operated, supervised, or 22-18 controlled in whole or in substantial part by a religious 22-19 corporation, association, or society does not commit an unlawful 22-20 employment practice by limiting employment or giving a preference 22-21 to members of the same religion. 22-22 (b) Subchapter B does not apply to the employment of an 22-23 individual of a particular religion by a religious corporation, 22-24 association, or society to perform work connected with the 22-25 performance of religious activities by the corporation, 22-26 association, or society. (V.A.C.S. Art. 5221k, Secs. 5.06 (part), 22-27 5.07(a) (part).) 23-1 Sec. 21.110. DISCRIMINATION BASED ON NATIONAL ORIGIN. A 23-2 provision in this chapter referring to discrimination because of 23-3 national origin or on the basis of national origin includes 23-4 discrimination because of or on the basis of the national origin of 23-5 an ancestor. (V.A.C.S. Art. 5221k, Sec. 2.01(11).) 23-6 Sec. 21.111. PERSON EMPLOYED OUT OF STATE. This chapter 23-7 does not apply to an employer with respect to the employment of a 23-8 person outside this state. (V.A.C.S. Art. 5221k, Sec. 5.10.) 23-9 Sec. 21.112. EMPLOYEES AT DIFFERENT LOCATIONS. An employer 23-10 does not commit an unlawful employment practice by applying to 23-11 employees who work in different locations different standards of 23-12 compensation or different terms, conditions, or privileges of 23-13 employment that are not discriminatory on the basis of race, color, 23-14 disability, religion, sex, national origin, or age. (V.A.C.S. Art. 23-15 5221k, Sec. 5.07(a) (part).) 23-16 Sec. 21.113. IMBALANCE PLAN NOT REQUIRED. This chapter does 23-17 not require a person subject to this chapter to grant preferential 23-18 treatment to an individual or a group on the basis of race, color, 23-19 disability, religion, sex, national origin, or age because of an 23-20 imbalance between: 23-21 (1) the total number or percentage of persons of that 23-22 individual's or group's race, color, disability, religion, sex, 23-23 national origin, or age: 23-24 (A) employed by an employer; 23-25 (B) referred or classified for employment by an 23-26 employment agency or labor organization; 23-27 (C) admitted to membership or classified by a 24-1 labor organization; or 24-2 (D) admitted to or employed in an 24-3 apprenticeship, on-the-job training, or other training or 24-4 retraining program; and 24-5 (2) the total number or percentage of persons of that 24-6 race, color, disability, religion, sex, national origin, or age in: 24-7 (A) a community, this state, a region, or other 24-8 area; or 24-9 (B) the available work force in a community, 24-10 this state, a region, or other area. (V.A.C.S. Art. 5221k, Sec. 24-11 5.09.) 24-12 Sec. 21.114. PLAN TO END DISCRIMINATORY SCHOOL PRACTICES. A 24-13 public school official does not commit an unlawful employment 24-14 practice by adopting or implementing a plan reasonably designed to 24-15 end discriminatory school practices. (V.A.C.S. Art. 5221k, Sec. 24-16 5.07(a) (part).) 24-17 Sec. 21.115. BUSINESS NECESSITY. An employer does not 24-18 commit an unlawful employment practice by engaging in a practice 24-19 that has a discriminatory effect and that would otherwise be 24-20 prohibited by this chapter if the employer establishes that the 24-21 practice: 24-22 (1) is not intentionally devised or operated to 24-23 contravene the prohibitions of this chapter; and 24-24 (2) is justified by business necessity. (V.A.C.S. 24-25 Art. 5221k, Sec. 5.07(a) (part).) 24-26 Sec. 21.116. RELIANCE ON COMMISSION INTERPRETATION OR 24-27 OPINION. (a) A person is not liable for an unlawful employment 25-1 practice performed in good faith and in conformity with and in 25-2 reliance on a written interpretation or opinion of the commission. 25-3 (b) In a proceeding alleging an unlawful employment 25-4 practice, the respondent has the burden of pleading and proving the 25-5 defense provided by this section. (V.A.C.S. Art. 5221k, Sec. 25-6 5.08.) 25-7 Sec. 21.117. EMPLOYMENT OF FAMILY MEMBER. Subchapter B does 25-8 not apply to the employment of an individual by the individual's 25-9 parent, spouse, or child. (V.A.C.S. Art. 5221k, Sec. 5.06 (part).) 25-10 Sec. 21.118. STATEWIDE HOMETOWN PLAN. Subchapter B does not 25-11 apply to a labor union, firm, association, or individual 25-12 participating on September 23, 1983, in a statewide hometown plan 25-13 approved by the United States Department of Labor. (V.A.C.S. Art. 25-14 5221k, Sec. 5.06 (part).) 25-15 Sec. 21.119. BONA FIDE OCCUPATIONAL QUALIFICATION. If 25-16 disability, religion, sex, national origin, or age is a bona fide 25-17 occupational qualification reasonably necessary to the normal 25-18 operation of the particular business or enterprise, performing any 25-19 of the following practices on the basis of disability, religion, 25-20 sex, national origin, or age of an employee, member, or other 25-21 individual is not an unlawful employment practice: 25-22 (1) an employer hiring and employing an employee; 25-23 (2) an employment agency classifying or referring an 25-24 individual for employment; 25-25 (3) a labor organization classifying its members or 25-26 classifying or referring an individual for employment; or 25-27 (4) an employer, labor organization, or joint 26-1 labor-management committee controlling an apprenticeship, 26-2 on-the-job training, or other training or retraining program 26-3 admitting or employing an individual in its program. (V.A.C.S. 26-4 Art. 5221k, Sec. 5.07(a) (part).) 26-5 (Sections 21.120-21.150 reserved for expansion) 26-6 SUBCHAPTER D. LOCAL ENFORCEMENT 26-7 Sec. 21.151. ENFORCEMENT BY ORDINANCE. A political 26-8 subdivision may adopt and enforce an order or ordinance that 26-9 prohibits a practice that is unlawful under this chapter, another 26-10 state law, or federal law. (V.A.C.S. Art. 5221k, Sec. 4.01.) 26-11 Sec. 21.152. CREATION OF LOCAL COMMISSION. (a) A political 26-12 subdivision or two or more political subdivisions acting jointly 26-13 may create a local commission to: 26-14 (1) promote the purposes of this chapter; and 26-15 (2) secure for all individuals in the jurisdiction of 26-16 each political subdivision freedom from discrimination because of 26-17 race, color, disability, religion, sex, national origin, or age. 26-18 (b) The political subdivision creating a local commission 26-19 may appropriate funds for the expenses of the local commission. 26-20 (V.A.C.S. Art. 5221k, Sec. 4.02.) 26-21 Sec. 21.153. GENERAL POWERS AND DUTIES OF LOCAL COMMISSION. 26-22 (a) A local commission may: 26-23 (1) employ an executive director and other employees 26-24 and agents and set their compensation; 26-25 (2) cooperate or contract with a person, including an 26-26 agency of the federal government or of another state or 26-27 municipality; and 27-1 (3) accept a public grant or private gift, bequest, or 27-2 other payment. 27-3 (b) A local commission shall prepare at least annually a 27-4 report and furnish a copy of the report to the Commission on Human 27-5 Rights. (V.A.C.S. Art. 5221k, Sec. 4.03 (part).) 27-6 Sec. 21.154. INVESTIGATORY AND CONCILIATORY POWERS OF LOCAL 27-7 COMMISSION. (a) If the federal government or the Commission on 27-8 Human Rights refers a complaint alleging a violation of this 27-9 chapter to a local commission or defers jurisdiction over the 27-10 subject matter of the complaint to a local commission, the local 27-11 commission may receive, investigate, conciliate, or rule on the 27-12 complaint and may file a civil action to carry out the purposes of 27-13 this chapter. 27-14 (b) The local commission may request, and as necessary, 27-15 compel by subpoena: 27-16 (1) the attendance of a witness for examination under 27-17 oath; or 27-18 (2) the production for inspection or copying of a 27-19 record, document, or other evidence relevant to the investigation 27-20 of an alleged violation of this chapter. (V.A.C.S. Art. 5221k, 27-21 Sec. 4.03 (part).) 27-22 Sec. 21.155. REFERRAL TO LOCAL COMMISSION AND ACTION ON 27-23 COMPLAINTS. (a) The Commission on Human Rights shall refer a 27-24 complaint concerning discrimination in employment because of race, 27-25 color, disability, religion, sex, national origin, or age that is 27-26 filed with that commission to a local commission with the necessary 27-27 investigatory and conciliatory powers if: 28-1 (1) the complaint has been referred to the Commission 28-2 on Human Rights by the federal government; or 28-3 (2) jurisdiction over the subject matter of the 28-4 complaint has been deferred to the Commission on Human Rights by 28-5 the federal government. 28-6 (b) The local commission shall take appropriate action to 28-7 remedy the practice alleged as discriminatory in the referred 28-8 complaint. 28-9 (c) If the local commission does not act on the complaint 28-10 within 60 days or a longer time that is reasonable, the Commission 28-11 on Human Rights shall reassume responsibility for the complaint and 28-12 take appropriate action on the complaint. (V.A.C.S. Art. 5221k, 28-13 Secs. 4.04(a), (b).) 28-14 Sec. 21.156. REFERRAL BY LOCAL COMMISSION TO STATE 28-15 COMMISSION. A local commission may refer a matter under its 28-16 jurisdiction to the Commission on Human Rights. (V.A.C.S. Art. 28-17 5221k, Sec. 4.04(c).) 28-18 (Sections 21.157-21.200 reserved for expansion) 28-19 SUBCHAPTER E. ADMINISTRATIVE REVIEW 28-20 Sec. 21.201. FILING OF COMPLAINT; FORM AND CONTENT; SERVICE. 28-21 (a) A person claiming to be aggrieved by an unlawful employment 28-22 practice or the person's agent may file a complaint with the 28-23 commission. 28-24 (b) The complaint must be in writing and made under oath. 28-25 (c) The complaint must state: 28-26 (1) that an unlawful employment practice has been 28-27 committed; 29-1 (2) the facts on which the complaint is based, 29-2 including the date, place, and circumstances of the alleged 29-3 unlawful employment practice; and 29-4 (3) facts sufficient to enable the commission to 29-5 identify the respondent. 29-6 (d) The executive director or the executive director's 29-7 designee shall serve the respondent with a copy of the complaint 29-8 not later than the 10th day after the date the complaint is filed. 29-9 (V.A.C.S. Art. 5221k, Sec. 6.01(a) (part).) 29-10 Sec. 21.202. STATUTE OF LIMITATIONS. (a) A complaint under 29-11 this subchapter must be filed not later than the 180th day after 29-12 the date the alleged unlawful employment practice occurred. 29-13 (b) The commission shall dismiss an untimely complaint. 29-14 (V.A.C.S. Art. 5221k, Sec. 6.01(a) (part).) 29-15 Sec. 21.203. INVITATION FOR VOLUNTARY RESOLUTION. The 29-16 executive director or the executive director's designee shall 29-17 invite the complainant and respondent to attempt voluntarily to 29-18 resolve the dispute before initiation and completion of an 29-19 investigation. (V.A.C.S. Art. 5221k, Sec. 6.01(a) (part).) 29-20 Sec. 21.204. INVESTIGATION BY COMMISSION. (a) The 29-21 executive director or a staff member of the commission designated 29-22 by the executive director shall investigate a complaint and 29-23 determine if there is reasonable cause to believe that the 29-24 respondent engaged in an unlawful employment practice as alleged in 29-25 the complaint. 29-26 (b) If the federal government has referred the complaint to 29-27 the commission or has deferred jurisdiction over the subject matter 30-1 of the complaint to the commission, the executive director or the 30-2 executive director's designee shall promptly investigate the 30-3 allegations stated in the complaint. (V.A.C.S. Art. 5221k, Sec. 30-4 6.01(a) (part).) 30-5 Sec. 21.205. LACK OF REASONABLE CAUSE; DISMISSAL OF 30-6 COMPLAINT. (a) If after investigation the executive director or 30-7 the executive director's designee determines that reasonable cause 30-8 does not exist to believe that the respondent engaged in an 30-9 unlawful employment practice as alleged in a complaint, the 30-10 executive director or the executive director's designee shall issue 30-11 a written determination, incorporating the finding that the 30-12 evidence does not support the complaint and dismissing the 30-13 complaint. 30-14 (b) The executive director or the executive director's 30-15 designee shall serve a copy of the determination on the 30-16 complainant, the respondent, and other agencies as required by law. 30-17 (V.A.C.S. Art. 5221k, Sec. 6.01(b).) 30-18 Sec. 21.206. DETERMINATION OF REASONABLE CAUSE; REVIEW BY 30-19 PANEL. (a) If after investigation the executive director or the 30-20 executive director's designee determines that there is reasonable 30-21 cause to believe that the respondent engaged in an unlawful 30-22 employment practice as alleged in a complaint, the executive 30-23 director or the executive director's designee shall review with a 30-24 panel of three commissioners the evidence in the record. 30-25 (b) If after the review at least two of the three 30-26 commissioners determine that there is reasonable cause to believe 30-27 that the respondent engaged in an unlawful employment practice, the 31-1 executive director shall: 31-2 (1) issue a written determination incorporating the 31-3 executive director's finding that the evidence supports the 31-4 complaint; and 31-5 (2) serve a copy of the determination on the 31-6 complainant, the respondent, and other agencies as required by law. 31-7 (V.A.C.S. Art. 5221k, Sec. 6.01(c) (part).) 31-8 Sec. 21.207. RESOLUTION BY INFORMAL METHODS. (a) If a 31-9 determination of reasonable cause is made under Section 21.206, the 31-10 commission shall endeavor to eliminate the alleged unlawful 31-11 employment practice by informal methods of conference, 31-12 conciliation, and persuasion. 31-13 (b) Without the written consent of the complainant and 31-14 respondent, the commission, its executive director, or its other 31-15 officers or employees may not disclose to the public information 31-16 about the efforts in a particular case to resolve an alleged 31-17 discriminatory practice by conference, conciliation, or persuasion, 31-18 regardless of whether there is a determination of reasonable cause. 31-19 (V.A.C.S. Art. 5221k, Sec. 6.01(c) (part).) 31-20 Sec. 21.208. NOTICE OF DISMISSAL OR UNRESOLVED COMPLAINT. 31-21 If the commission dismisses a complaint filed under Section 21.201 31-22 or does not resolve the complaint before the 181st day after the 31-23 date the complaint was filed, the commission shall inform the 31-24 complainant of the dismissal or failure to resolve the complaint in 31-25 writing by certified mail. (V.A.C.S. Art. 5221k, Sec. 7.01(a) 31-26 (part).) 31-27 Sec. 21.209. DISCRIMINATION BASED ON DISABILITY; DEFENSE OF 32-1 UNDUE HARDSHIP; ORDER. (a) A showing of undue hardship by a 32-2 respondent is a defense to a complaint of discrimination based on 32-3 disability made by an employee or applicant. 32-4 (b) For a complaint based on disability, the commission's 32-5 order must consider the reasonableness of the cost of necessary 32-6 work place accommodation and the availability of alternatives or 32-7 other appropriate relief. (V.A.C.S. Art. 5221k, Sec. 6.01(d).) 32-8 Sec. 21.210. TEMPORARY INJUNCTIVE RELIEF. (a) If the 32-9 commission concludes from a preliminary investigation of an 32-10 unlawful employment practice alleged in a complaint that prompt 32-11 judicial action is necessary to carry out the purpose of this 32-12 chapter, the commission shall file a petition seeking appropriate 32-13 temporary relief against the respondent pending final determination 32-14 of a proceeding under this chapter. 32-15 (b) The petition shall be filed in a district court in a 32-16 county in which: 32-17 (1) the alleged unlawful employment practice that is 32-18 the subject of the complaint occurred; or 32-19 (2) the respondent resides. 32-20 (c) A court may not issue temporary injunctive relief unless 32-21 the commission shows: 32-22 (1) a substantial likelihood of success on the merits; 32-23 and 32-24 (2) irreparable harm to the complainant in the absence 32-25 of the preliminary relief pending final determination on the 32-26 merits. (V.A.C.S. Art. 5221k, Sec. 6.01(e).) 32-27 Sec. 21.211. ELECTION OF REMEDIES. A person who has 33-1 initiated an action in a court of competent jurisdiction or who has 33-2 an action pending before an administrative agency under other law 33-3 or an order or ordinance of a political subdivision of this state 33-4 based on an act that would be an unlawful employment practice under 33-5 this chapter may not file a complaint under this subchapter for the 33-6 same grievance. (V.A.C.S. Art. 5221k, Sec. 6.01(f).) 33-7 (Sections 21.212-21.250 reserved for expansion) 33-8 SUBCHAPTER F. JUDICIAL ENFORCEMENT 33-9 Sec. 21.251. CIVIL ACTION BY COMMISSION. (a) The 33-10 commission may bring a civil action against a respondent if: 33-11 (1) the commission determines that there is reasonable 33-12 cause to believe that the respondent engaged in an unlawful 33-13 employment practice; 33-14 (2) the commission's efforts to resolve the 33-15 discriminatory practice to the satisfaction of the complainant and 33-16 respondent through conciliation have been unsuccessful; and 33-17 (3) a majority of the commissioners determines that 33-18 the civil action may achieve the purposes of this chapter. 33-19 (b) The complainant may intervene in a civil action brought 33-20 by the commission. (V.A.C.S. Art. 5221k, Sec. 7.01(a) (part).) 33-21 Sec. 21.252. NOTICE OF COMPLAINANT'S RIGHT TO FILE CIVIL 33-22 ACTION. (a) A complainant who receives notice under Section 33-23 21.208 that the complaint is not dismissed or resolved is entitled 33-24 to request from the commission a written notice of the 33-25 complainant's right to file a civil action. 33-26 (b) The complainant must request the notice in writing. 33-27 (c) The executive director may issue the notice. 34-1 (d) Failure to issue the notice of a complainant's right to 34-2 file a civil action does not affect the complainant's right under 34-3 this subchapter to bring a civil action against the respondent. 34-4 (V.A.C.S. Art. 5221k, Sec. 7.01(a) (part), (i).) 34-5 Sec. 21.253. EXPEDITED NOTICE OF COMPLAINANT'S RIGHT TO FILE 34-6 CIVIL ACTION. (a) On receipt of a written request by a 34-7 complainant, the commission shall issue before the 181st day after 34-8 the date the complaint was filed a notice of the right to file a 34-9 civil action if: 34-10 (1) the complainant alleges an unlawful employment 34-11 practice based on the complainant's status as an individual with a 34-12 life-threatening illness, as confirmed in writing by a physician 34-13 licensed to practice medicine in this state; or 34-14 (2) the executive director certifies that 34-15 administrative processing of the complaint cannot be completed 34-16 before the 181st day after the date the complaint was filed. 34-17 (b) The commission shall issue the expedited notice by 34-18 certified mail not later than the fifth business day after the date 34-19 the commission receives the written request. (V.A.C.S. Art. 5221k, 34-20 Sec. 7.01(a) (part).) 34-21 Sec. 21.254. CIVIL ACTION BY COMPLAINANT. Within 60 days 34-22 after the date a notice of the right to file a civil action is 34-23 received, the complainant may bring a civil action against the 34-24 respondent. (V.A.C.S. Art. 5221k, Sec. 7.01(a) (part).) 34-25 Sec. 21.255. COMMISSION'S INTERVENTION IN CIVIL ACTION BY 34-26 COMPLAINANT. After receipt of a timely application, a court may 34-27 permit the commission to intervene in a civil action filed under 35-1 Section 21.254 if: 35-2 (1) the commission certifies that the case is of 35-3 general public importance; and 35-4 (2) before commencement of the action the commission 35-5 issued a determination of reasonable cause to believe that this 35-6 chapter was violated. (V.A.C.S. Art. 5221k, Sec. 7.01(a) (part).) 35-7 Sec. 21.256. STATUTE OF LIMITATIONS. A civil action may not 35-8 be brought under this subchapter later than the first anniversary 35-9 of the date the complaint relating to the action is filed. 35-10 (V.A.C.S. Art. 5221k, Sec. 7.01(a) (part).) 35-11 Sec. 21.257. ASSIGNMENT TO EARLY HEARING. The court shall 35-12 set an action brought under this subchapter for hearing at the 35-13 earliest practicable date to expedite the action. (V.A.C.S. Art. 35-14 5221k, Sec. 7.01(b).) 35-15 Sec. 21.258. INJUNCTION; EQUITABLE RELIEF. (a) On finding 35-16 that a respondent engaged in an unlawful employment practice as 35-17 alleged in a complaint, a court may: 35-18 (1) prohibit by injunction the respondent from 35-19 engaging in an unlawful employment practice; and 35-20 (2) order additional equitable relief as may be 35-21 appropriate. 35-22 (b) Additional equitable relief may include: 35-23 (1) hiring or reinstating with or without back pay; 35-24 (2) upgrading an employee with or without pay; 35-25 (3) admitting to or restoring union membership; 35-26 (4) admitting to or participating in a guidance 35-27 program, apprenticeship, or on-the-job training or other training 36-1 or retraining program, using objective job-related criteria in 36-2 admitting an individual to a program; 36-3 (5) reporting on the manner of compliance with the 36-4 terms of a final order issued under this chapter; and 36-5 (6) paying court costs. 36-6 (c) Liability under a back pay award may not accrue for a 36-7 date more than two years before the date a complaint is filed with 36-8 the commission. Interim earnings, workers' compensation benefits, 36-9 and unemployment compensation benefits received operate to reduce 36-10 the back pay otherwise allowable. (V.A.C.S. Art. 5221k, Secs. 36-11 7.01(c), (d).) 36-12 Sec. 21.259. ATTORNEY'S FEES; COSTS. (a) In a proceeding 36-13 under this chapter, a court may allow the prevailing party, other 36-14 than the commission, a reasonable attorney's fee as part of the 36-15 costs. 36-16 (b) The state, a state agency, or a political subdivision is 36-17 liable for costs, including attorney's fees, to the same extent as 36-18 a private person. (V.A.C.S. Art. 5221k, Sec. 7.01(e).) 36-19 Sec. 21.260. RELIEF FOR DISABLED EMPLOYEE OR APPLICANT. If 36-20 the affected employee or applicant for employment has a disability, 36-21 a court shall consider the undue hardship defense, including the 36-22 reasonableness of the cost of necessary workplace accommodation and 36-23 the availability of alternatives or other appropriate relief. 36-24 (V.A.C.S. Art. 5221k, Sec. 7.01(f).) 36-25 Sec. 21.261. COMPELLED COMPLIANCE. If an employer, 36-26 employment agency, or labor organization fails to comply with a 36-27 court order issued under this subchapter, a party to the action or 37-1 the commission, on the written request of a person aggrieved by the 37-2 failure, may commence proceedings to compel compliance with the 37-3 order. (V.A.C.S. Art. 5221k, Sec. 7.01(g).) 37-4 Sec. 21.262. TRIAL DE NOVO. (a) A judicial proceeding 37-5 under this chapter is by trial de novo. 37-6 (b) A commission finding, recommendation, determination, or 37-7 other action is not binding on a court. (V.A.C.S. Art. 5221k, 37-8 Sec. 7.01(h).) 37-9 (Sections 21.263-21.300 reserved for expansion) 37-10 SUBCHAPTER G. RECORDS 37-11 Sec. 21.301. RECORDKEEPING; REPORTS. A person under 37-12 investigation in connection with a charge filed under this chapter 37-13 and who is subject to this chapter shall: 37-14 (1) make and keep records relevant to the 37-15 determination of whether unlawful employment practices have been or 37-16 are being committed; 37-17 (2) preserve the records for the period required by 37-18 commission rule or court order; and 37-19 (3) make reports from the records as prescribed by 37-20 commission rule or court order as reasonable, necessary, or 37-21 appropriate for the enforcement of this chapter or a rule or order 37-22 issued under this chapter. (V.A.C.S. Art. 5221k, Sec. 8.01(a).) 37-23 Sec. 21.302. RECORDS; TRAINING PROGRAM. The commission by 37-24 rule shall require that a person subject to this chapter who 37-25 controls an apprenticeship, on-the-job training, or other training 37-26 or retraining program: 37-27 (1) keep all records reasonably necessary to carry out 38-1 the purposes of this chapter, including a list of applicants for 38-2 participation in the program and a record of the chronological 38-3 order in which applications for the program were received; and 38-4 (2) furnish to the commission on request a detailed 38-5 description of the manner in which individuals are selected to 38-6 participate in the program. (V.A.C.S. Art. 5221k, Sec. 8.01(b).) 38-7 Sec. 21.303. CONFORMITY TO FEDERAL LAW. A report or record 38-8 required by the commission under this subchapter must conform to a 38-9 similar record or report required under 42 U.S.C. Section 38-10 2000e-8(c). (V.A.C.S. Art. 5221k, Sec. 8.01(c).) 38-11 Sec. 21.304. CONFIDENTIALITY OF RECORDS. An officer or 38-12 employee of the commission may not disclose to the public 38-13 information obtained by the commission under Section 21.204 except 38-14 as necessary to the conduct of a proceeding under this chapter. 38-15 (V.A.C.S. Art. 5221k, Sec. 8.02(a) (part).) 38-16 Sec. 21.305. ACCESS TO COMMISSION RECORDS. (a) The 38-17 commission shall adopt rules allowing a party to a complaint filed 38-18 under Section 21.201 reasonable access to commission records 38-19 relating to the complaint. 38-20 (b) Unless the complaint is resolved through a voluntary 38-21 settlement or conciliation, on the written request of a party the 38-22 executive director shall allow the party access to the commission 38-23 records: 38-24 (1) after the final action of the commission; or 38-25 (2) if a civil action relating to the complaint is 38-26 filed in federal court alleging a violation of federal law. 38-27 (V.A.C.S. Art. 5221k, Sec. 8.02(a) (part).) 39-1 Sec. 21.306. SUBPOENA OF RECORD OR REPORT. (a) If a person 39-2 fails to permit access, examination, photographing, or copying or 39-3 fails to make, keep, or preserve a record or make a report in 39-4 accordance with this subchapter, the commission may issue a 39-5 subpoena requiring compliance. 39-6 (b) On a failure to comply with a subpoena of the 39-7 commission, the commission shall apply for an order directing 39-8 compliance to the district court of the county in which the person 39-9 is found, resides, or transacts business. (V.A.C.S. Art. 5221k, 39-10 Sec. 8.02(b).) 39-11 (Chapters 22-50 reserved for expansion) 39-12 SUBTITLE B. RESTRICTIONS ON LABOR 39-13 CHAPTER 51. EMPLOYMENT OF CHILDREN 39-14 SUBCHAPTER A. GENERAL PROVISIONS 39-15 Sec. 51.001. PURPOSE 39-16 Sec. 51.002. DEFINITIONS 39-17 Sec. 51.003. GENERAL EXEMPTIONS 39-18 (Sections 51.004-51.010 reserved for expansion) 39-19 SUBCHAPTER B. RESTRICTIONS ON EMPLOYMENT 39-20 Sec. 51.011. MINIMUM AGE 39-21 Sec. 51.012. PERFORMER EXEMPTION 39-22 Sec. 51.013. HOURS OF EMPLOYMENT; HARDSHIP EXEMPTION 39-23 Sec. 51.014. HAZARDOUS OCCUPATIONS 39-24 (Sections 51.015-51.020 reserved for expansion) 39-25 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS 39-26 Sec. 51.021. INSPECTION; COLLECTION OF INFORMATION 39-27 Sec. 51.022. CERTIFICATE OF AGE 40-1 Sec. 51.023. RULEMAKING 40-2 (Sections 51.024-51.030 reserved for expansion) 40-3 SUBCHAPTER D. PENALTY AND DEFENSE 40-4 Sec. 51.031. OFFENSE; PENALTY 40-5 Sec. 51.032. DEFENSE TO PROSECUTION 40-6 CHAPTER 51. EMPLOYMENT OF CHILDREN 40-7 SUBCHAPTER A. GENERAL PROVISIONS 40-8 Sec. 51.001. PURPOSE. The purpose of this chapter is to 40-9 ensure that a child is not employed in an occupation or manner that 40-10 is detrimental to the child's safety, health, or well-being. 40-11 (V.A.C.S. Art. 5181.1, Sec. 1.) 40-12 Sec. 51.002. DEFINITIONS. In this chapter: 40-13 (1) "Child" means an individual under 18 years of age. 40-14 (2) "Commission" means the Texas Employment 40-15 Commission. (V.A.C.S. Art. 5181.1, Secs. 2(1), (2).) 40-16 Sec. 51.003. GENERAL EXEMPTIONS. (a) This chapter does not 40-17 apply to employment of a child: 40-18 (1) employed in a: 40-19 (A) nonhazardous occupation; 40-20 (B) under the direct supervision of the child's 40-21 parent or an adult having custody of the child; and 40-22 (C) in a business or enterprise owned or 40-23 operated by the parent or custodian; 40-24 (2) engaged in delivery of newspapers to the consumer; 40-25 (3) participating in a school-supervised and 40-26 school-administered work-study program approved by the commission; 40-27 (4) employed in agriculture during a period when the 41-1 child is not legally required to be attending school; 41-2 (5) employed through a rehabilitation program 41-3 supervised by a county judge; or 41-4 (6) engaged in nonhazardous casual employment that 41-5 will not endanger the safety, health, or well-being of the child 41-6 and to which the parent or adult having custody of the child has 41-7 consented. 41-8 (b) In this section, "employment in agriculture" means 41-9 engaged in producing crops or livestock and includes: 41-10 (1) cultivating and tilling the soil; 41-11 (2) producing, cultivating, growing, and harvesting an 41-12 agricultural or horticultural commodity; 41-13 (3) dairying; and 41-14 (4) raising livestock, bees, fur-bearing animals, or 41-15 poultry. 41-16 (c) For the purposes of Subsection (a)(6), the commission by 41-17 rule may define nonhazardous casual employment that the commission 41-18 determines is dangerous to the safety, health, or well-being of a 41-19 child. (V.A.C.S. Art. 5181.1, Sec. 11.) 41-20 (Sections 51.004-51.010 reserved for expansion) 41-21 SUBCHAPTER B. RESTRICTIONS ON EMPLOYMENT 41-22 Sec. 51.011. MINIMUM AGE. Except as provided by this 41-23 chapter, a person commits an offense if the person employs a child 41-24 under 14 years of age. (V.A.C.S. Art. 5181.1, Sec. 3.) 41-25 Sec. 51.012. PERFORMER EXEMPTION. The commission by rule 41-26 may authorize the employment of children under 14 years of age as 41-27 performers in a motion picture or a theatrical, radio, or 42-1 television production. (V.A.C.S. Art. 5181.1, Sec. 10.) 42-2 Sec. 51.013. HOURS OF EMPLOYMENT; HARDSHIP EXEMPTION. (a) 42-3 A person commits an offense if the person permits a child who is 14 42-4 or 15 years of age and who is employed by the person to work more 42-5 than: 42-6 (1) eight hours in one day; or 42-7 (2) 48 hours in one week. 42-8 (b) A person commits an offense if the person permits a 42-9 child who is 14 or 15 years of age, is employed by the person, and 42-10 is enrolled in a term of a public or private school to work: 42-11 (1) between the hours of 10 p.m. and 5 a.m. on a day 42-12 that is followed by a school day; or 42-13 (2) between the hours of midnight and 5 a.m. on a day 42-14 that is not followed by a school day. 42-15 (c) A person commits an offense if the person permits a 42-16 child who is 14 or 15 years of age, is employed by the person, and 42-17 is not enrolled in summer school to work between the hours of 42-18 midnight and 5 a.m. on any day during the time that school is 42-19 recessed for the summer. 42-20 (d) The commission may adopt rules for determining whether 42-21 hardships exist. If, on the application of a child, the commission 42-22 determines that a hardship exists for that child, this section does 42-23 not apply to that child. (V.A.C.S. Art. 5181.1, Secs. 5, 6.) 42-24 Sec. 51.014. HAZARDOUS OCCUPATIONS. (a) The commission by 42-25 rule shall declare an occupation to be hazardous if: 42-26 (1) the occupation has been declared to be hazardous 42-27 by an agency of the federal government; and 43-1 (2) the commission determines that the occupation is 43-2 particularly hazardous for the employment of children. 43-3 (b) The commission by rule may restrict the employment of 43-4 children 14 years of age or older in hazardous occupations. 43-5 (c) A person commits an offense if the person employs a 43-6 child in violation of a rule adopted under this section. (V.A.C.S. 43-7 Art. 5181.1, Sec. 8.) 43-8 (Sections 51.015-51.020 reserved for expansion) 43-9 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS 43-10 Sec. 51.021. INSPECTION; COLLECTION OF INFORMATION. (a) 43-11 The commission, or a person designated by the commission, may, 43-12 during working hours: 43-13 (1) inspect a place where there is good reason to 43-14 believe that a child is employed; and 43-15 (2) collect information concerning the employment of a 43-16 child who works at that place. 43-17 (b) A person commits an offense if the person knowingly or 43-18 intentionally hinders an inspection or the collection of 43-19 information authorized by this section. (V.A.C.S. Art. 5181.1, 43-20 Sec. 7.) 43-21 Sec. 51.022. CERTIFICATE OF AGE. (a) A child who is at 43-22 least 14 years of age may apply to the commission for a certificate 43-23 of age that states the date of birth of the child. 43-24 (b) The application must include documentary proof of age as 43-25 required by the commission. 43-26 (c) After approval by the commission of the proof of age, 43-27 the commission shall issue to the child a certificate of age. 44-1 (V.A.C.S. Art. 5181.1, Secs. 9(a), (b), (c).) 44-2 Sec. 51.023. RULEMAKING. The commission may adopt rules 44-3 necessary to promote the purpose of this chapter but may not adopt 44-4 a rule permitting the employment of a child under 14 years of age 44-5 unless expressly authorized by this chapter. (V.A.C.S. Art. 44-6 5181.1, Sec. 4.) 44-7 (Sections 51.024-51.030 reserved for expansion) 44-8 SUBCHAPTER D. PENALTY AND DEFENSE 44-9 Sec. 51.031. OFFENSE; PENALTY. An offense under this 44-10 chapter is a Class C misdemeanor. (V.A.C.S. Art 5181.1, Sec. 12.) 44-11 Sec. 51.032. DEFENSE TO PROSECUTION. It is a defense to 44-12 prosecution of a person employing a child who does not meet the 44-13 minimum age requirement for a type of employment that the person 44-14 relied in good faith on an apparently valid certificate of age 44-15 presented by the child that showed the child to meet the age 44-16 requirement for that type of employment. (V.A.C.S. Art. 5181.1, 44-17 Sec. 9(d).) 44-18 CHAPTER 52. MISCELLANEOUS RESTRICTIONS 44-19 SUBCHAPTER A. RESTRICTIONS ON CERTAIN CONSECUTIVE PERIODS 44-20 OF EMPLOYMENT 44-21 Sec. 52.001. RETAIL EMPLOYER 44-22 Sec. 52.002. EMPLOYER FORMERLY SUBJECT TO SATURDAY/SUNDAY 44-23 CLOSING LAW 44-24 Sec. 52.003. OFFENSE; PENALTY; DEFENSE 44-25 (Sections 52.004-52.010 reserved for expansion) 44-26 SUBCHAPTER B. RESTRICTION ON WORK BY FOREIGN CREW 44-27 Sec. 52.011. PROHIBITION OF CERTAIN WORK BY FOREIGN CREW; 45-1 PENALTY 45-2 (Sections 52.012-52.020 reserved for expansion) 45-3 SUBCHAPTER C. RESTRICTIONS ON LENGTH OF HOES 45-4 Sec. 52.021. MINIMUM LENGTH OF HOE HANDLES 45-5 Sec. 52.022. OFFENSE; PENALTY 45-6 (Sections 52.023-52.030 reserved for expansion) 45-7 SUBCHAPTER D. RESTRICTIONS ON BLACKLISTING 45-8 Sec. 52.031. BLACKLISTING OFFENSE; PENALTY 45-9 (Sections 52.032-52.040 reserved for expansion) 45-10 SUBCHAPTER E. RESTRICTIONS ON COERCION OF EMPLOYEE TRADE 45-11 Sec. 52.041. COERCION OF EMPLOYEE TRADE; PENALTY 45-12 (Sections 52.042-52.050 reserved for expansion) 45-13 SUBCHAPTER F. RESTRICTIONS ON PENALIZING EMPLOYEE FOR 45-14 COMPLIANCE WITH SUBPOENA 45-15 Sec. 52.051. PENALIZING EMPLOYEE FOR COMPLIANCE 45-16 WITH SUBPOENA 45-17 CHAPTER 52. MISCELLANEOUS RESTRICTIONS 45-18 SUBCHAPTER A. RESTRICTIONS ON CERTAIN CONSECUTIVE PERIODS 45-19 OF EMPLOYMENT 45-20 Sec. 52.001. RETAIL EMPLOYER. (a) A person who is an 45-21 employer may not require an employee to work seven consecutive days 45-22 in an establishment, the business of which is selling merchandise 45-23 at retail. 45-24 (b) The person may not deny an employee at least one period 45-25 of 24 consecutive hours of time off for rest or worship in each 45-26 seven-day period. The time off must be in addition to the regular 45-27 periods of rest allowed during each day worked. 46-1 (c) The person shall accommodate the religious beliefs and 46-2 practices of an employee unless the employer can demonstrate that 46-3 to do so would constitute an undue hardship on the conduct of the 46-4 employer's business. In addition, the person may not require an 46-5 employee to work during a period that the employee requests to be 46-6 off to attend one regular worship service a week of the employee's 46-7 religion. 46-8 (d) This section does not apply to employment of a part-time 46-9 employee whose total work hours for one employer during a calendar 46-10 week do not exceed 30 hours. (V.A.C.S. Art. 5165.4, Sec. 1.) 46-11 Sec. 52.002. EMPLOYER FORMERLY SUBJECT TO SATURDAY/SUNDAY 46-12 CLOSING LAW. An employer whose establishment was closed on 46-13 Saturday or Sunday to comply with Chapter 15, Acts of the 57th 46-14 Legislature, 1st Called Session, 1961 (Article 9001, Vernon's Texas 46-15 Civil Statutes), before that Act was repealed effective September 46-16 1, 1985, may not require an employee who has been continuously 46-17 employed by that employer since August 31, 1985, to work on 46-18 whichever of those days the establishment was closed. 46-19 (V.A.C.S. Art. 5165.4, Sec. 2.) 46-20 Sec. 52.003. OFFENSE; PENALTY; DEFENSE. (a) A person 46-21 commits an offense if the person violates this subchapter. 46-22 (b) An offense under this section is a Class C misdemeanor. 46-23 (c) It is an affirmative defense to prosecution under this 46-24 section that the employee volunteered for work on the seventh 46-25 consecutive day and that the employee signed a written statement 46-26 stating that the employee volunteered. The statement must also 46-27 contain a provision, signed by the employer or the employer's 47-1 agent, that the employer did not require the work. 47-2 (V.A.C.S. Art. 5165.4, Secs. 3, 4.) 47-3 (Sections 52.004-52.010 reserved for expansion) 47-4 SUBCHAPTER B. RESTRICTION ON WORK BY FOREIGN CREW 47-5 Sec. 52.011. PROHIBITION OF CERTAIN WORK BY FOREIGN CREW; 47-6 PENALTY. (a) A person commits an offense if the person: 47-7 (1) is an officer or member of a crew of a foreign 47-8 seagoing vessel; and 47-9 (2) works on a wharf or levee of a port beyond the end 47-10 of the vessel's tackle. 47-11 (b) An offense under this section is punishable by: 47-12 (1) a fine of not less than $10 and not more than 47-13 $100; 47-14 (2) confinement in jail for a term of not less than 10 47-15 days and not more than 30 days; or 47-16 (3) both the fine and confinement. (V.A.C.S. Art. 47-17 9005.) 47-18 (Sections 52.012-52.020 reserved for expansion) 47-19 SUBCHAPTER C. RESTRICTIONS ON LENGTH OF HOES 47-20 Sec. 52.021. Minimum Length of Hoe Handles. (a) An 47-21 employer of agricultural laborers may not require an employee to 47-22 use a hoe that has a handle shorter than four feet while performing 47-23 agricultural labor in a commercial farming operation. 47-24 (b) This section does not apply to an employer engaged in 47-25 the operation of a greenhouse or nursery. (V.A.C.S. Art. 5221j, 47-26 Secs. 1, 2.) 47-27 Sec. 52.022. Offense; Penalty. (a) A person commits an 48-1 offense if the person violates Section 52.021. 48-2 (b) An offense under this section is a Class C misdemeanor. 48-3 (V.A.C.S. Art. 5221j, Sec. 3.) 48-4 (Sections 52.023-52.030 reserved for expansion) 48-5 SUBCHAPTER D. RESTRICTIONS ON BLACKLISTING 48-6 Sec. 52.031. BLACKLISTING OFFENSE; PENALTY. (a) In this 48-7 section, "blacklist" means to place on a book or list or publish 48-8 the name of an employee of an individual, firm, company, or 48-9 corporation who was discharged or who voluntarily left that 48-10 employment, intending to prevent the employee from engaging in or 48-11 securing employment of any kind with any other person, in either a 48-12 public or a private capacity. 48-13 (b) A person commits an offense if the person: 48-14 (1) blacklists or causes to be blacklisted an 48-15 employee; or 48-16 (2) conspires or contrives by correspondence or any 48-17 other manner to prevent an employee discharged by a corporation, 48-18 company, or individual from procuring employment. 48-19 (c) An offense under this section is punishable by: 48-20 (1) a fine of not less than $50 or more than $250; 48-21 (2) imprisonment in jail for not less than 30 days or 48-22 more than 90 days; or 48-23 (3) both the fine and imprisonment. 48-24 (d) This section may not be held to prohibit a corporation, 48-25 company, or individual from giving, on application from a 48-26 discharged employee or a person desiring to employ the employee, a 48-27 written truthful statement of the reason for the discharge. The 49-1 written statement may not be used as the cause for a civil or 49-2 criminal action for libel against the person who furnishes the 49-3 statement. (V.A.C.S. Arts. 5196c, 5196d, 5196e, 5196f.) 49-4 (Sections 52.032-52.040 reserved for expansion) 49-5 SUBCHAPTER E. RESTRICTIONS ON COERCION OF EMPLOYEE TRADE 49-6 Sec. 52.041. COERCION OF EMPLOYEE TRADE; PENALTY. (a) A 49-7 person, firm, or corporation commits an offense if the person, 49-8 firm, or corporation requires or attempts to require by coercion an 49-9 employee to: 49-10 (1) deal with a person, association, corporation, or 49-11 company; or 49-12 (2) purchase an article of food, clothing, or other 49-13 merchandise at a place or store. 49-14 (b) A person, firm, or corporation commits an offense if the 49-15 person, firm, or corporation excludes from work, punishes, or 49-16 blacklists an employee for failure to: 49-17 (1) deal with the person, firm, or corporation; or 49-18 (2) purchase an article of food, clothing, or other 49-19 merchandise at a place or store. 49-20 (c) An offense under this section is punishable by a fine of 49-21 not less than $50 or more than $200. (V.A.C.S. Art. 5196g.) 49-22 (Sections 52.042-52.050 reserved for expansion) 49-23 SUBCHAPTER F. RESTRICTIONS ON PENALIZING EMPLOYEE FOR 49-24 COMPLIANCE WITH SUBPOENA 49-25 Sec. 52.051. PENALIZING EMPLOYEE FOR COMPLIANCE WITH 49-26 SUBPOENA. (a) An employer may not discharge, discipline, or 49-27 penalize in any manner an employee because the employee complies 50-1 with a valid subpoena to appear in a civil, criminal, legislative, 50-2 or administrative proceeding. 50-3 (b) If the subpoena to which a violation of Subsection (a) 50-4 applies is issued by a court, the employer violating Subsection (a) 50-5 may be found in contempt by the court issuing the subpoena. 50-6 (c) If the subpoena to which a violation of Subsection (a) 50-7 applies is issued by a legislative committee or a state agency, the 50-8 employer violating Subsection (a) is subject to the authority of 50-9 the committee or agency to impose a monetary penalty, not to exceed 50-10 $500, on a person who violates an order of the committee or agency. 50-11 (d) An employee discharged in violation of this section is 50-12 entitled to return to the same employment that the employee had at 50-13 the time the employee was subpoenaed if the employee, as soon as 50-14 practical after release from compliance with the subpoena, gives 50-15 the employer actual notice that the employee intends to return. 50-16 (e) An employee injured because of the violation of this 50-17 section by an employer may recover: 50-18 (1) damages in an amount that does not exceed six 50-19 months' compensation at the rate at which the employee was 50-20 compensated when the subpoena was issued; and 50-21 (2) reasonable attorney's fees. 50-22 (f) It is a defense to an action by an employee under this 50-23 section for reemployment that reemployment is impossible or 50-24 unreasonable because of a change in the employer's circumstances 50-25 while the employee complied with the subpoena. (V.A.C.S. Art. 50-26 5207c.) 50-27 (Chapters 53-60 reserved for expansion) 51-1 SUBTITLE C. WAGES 51-2 CHAPTER 61. PAYMENT OF WAGES 51-3 SUBCHAPTER A. GENERAL PROVISIONS 51-4 Sec. 61.001. DEFINITIONS 51-5 Sec. 61.002. COMMISSION POWERS 51-6 Sec. 61.003. GOVERNMENTAL ENTITIES EXCLUDED 51-7 (Sections 61.004-61.010 reserved for expansion) 51-8 SUBCHAPTER B. PAYMENT OF WAGES 51-9 Sec. 61.011. PAYDAYS 51-10 Sec. 61.012. DESIGNATION OF PAYDAYS; NOTICE 51-11 Sec. 61.013. PAYMENT OTHER THAN ON PAYDAY 51-12 Sec. 61.014. PAYMENT AFTER TERMINATION OF EMPLOYMENT 51-13 Sec. 61.015. PAYMENT OF COMMISSIONS AND BONUSES 51-14 Sec. 61.016. FORM OF PAYMENT 51-15 Sec. 61.017. DELIVERY OF PAYMENT 51-16 Sec. 61.018. DEDUCTION FROM WAGES 51-17 Sec. 61.019. FAILURE TO PAY WAGES; CRIMINAL PENALTY 51-18 Sec. 61.020. FAILURE TO PAY WAGES; ATTORNEY GENERAL ACTION 51-19 (Sections 61.021-61.030 reserved for expansion) 51-20 SUBCHAPTER C. SECURITY FOR WAGE PAYMENTS 51-21 Sec. 61.031. BOND 51-22 Sec. 61.032. SUIT TO ENFORCE BOND REQUIREMENT 51-23 Sec. 61.033. FAILURE OF SURETY COMPANY TO PAY VERIFIED CLAIM 51-24 FOR WAGES; CIVIL PENALTY 51-25 (Sections 61.034-61.050 reserved for expansion) 51-26 SUBCHAPTER D. WAGE CLAIMS 51-27 Sec. 61.051. FILING WAGE CLAIM 52-1 Sec. 61.052. PRELIMINARY WAGE DETERMINATION ORDER 52-2 Sec. 61.053. BAD FAITH; ADMINISTRATIVE PENALTY 52-3 Sec. 61.054. REQUEST FOR HEARING ON PRELIMINARY ORDER 52-4 Sec. 61.055. PRELIMINARY ORDER FINAL IF HEARING NOT 52-5 REQUESTED 52-6 Sec. 61.056. PAYMENT REQUIRED IF HEARING NOT REQUESTED 52-7 Sec. 61.057. NOTICE; TIME FOR HEARING 52-8 Sec. 61.058. HEARING PROCEDURES 52-9 Sec. 61.059. COMMISSION CONSIDERATION OF PRELIMINARY WAGE 52-10 DETERMINATION ORDER 52-11 Sec. 61.060. ORDER AFTER HEARING 52-12 Sec. 61.061. NOTICE AND FINALITY OF ORDER 52-13 Sec. 61.062. JUDICIAL REVIEW 52-14 Sec. 61.063. PAYMENT TO COMMISSION; ESCROW PENDING REVIEW; 52-15 WAIVER 52-16 Sec. 61.064. PAYMENT TO EMPLOYEE 52-17 Sec. 61.065. DEPOSIT OF PENALTY 52-18 Sec. 61.066. ATTORNEY GENERAL ACTION; ENFORCEMENT OF ORDER 52-19 (Sections 61.067-61.080 reserved for expansion) 52-20 SUBCHAPTER E. ADMINISTRATIVE LIEN 52-21 Sec. 61.081. CREATION AND ATTACHMENT OF LIEN 52-22 Sec. 61.082. ENFORCEMENT OF LIEN 52-23 Sec. 61.083. FILING; FEE 52-24 Sec. 61.084. RELEASE OF LIEN 52-25 CHAPTER 61. PAYMENT OF WAGES 52-26 SUBCHAPTER A. GENERAL PROVISIONS 52-27 Sec. 61.001. DEFINITIONS. In this chapter: 53-1 (1) "Commission" means the Texas Employment Commission 53-2 or its designee. 53-3 (2) "Day" means a calendar day. 53-4 (3) "Employee" means an individual who is employed by 53-5 an employer for compensation. The term does not include: 53-6 (A) a person related to the employer or the 53-7 employer's spouse within the first or second degree by 53-8 consanguinity or affinity, as determined under Article 5996h, 53-9 Revised Statutes; or 53-10 (B) an independent contractor. 53-11 (4) "Employer" means a person that employs one or more 53-12 employees. 53-13 (5) "Employment" means any service, including service 53-14 in interstate commerce, that is performed for wages or under a 53-15 contract of hire, whether written or oral or express or implied. 53-16 The term does not include any service performed by an individual 53-17 for wages if it is shown that the individual is free from control 53-18 or direction in the performance of the service, both under any 53-19 contract of service and in fact. 53-20 (6) "Mail" means to deposit for mailing with the 53-21 United States Postal Service. 53-22 (7) "Wages" means compensation owed by an employer 53-23 for: 53-24 (A) labor or services rendered by an employee, 53-25 whether computed on a time, task, piece, commission, or other 53-26 basis; and 53-27 (B) vacation pay, holiday pay, sick leave pay, 54-1 parental leave pay, or severance pay owed to an employee under a 54-2 written agreement with the employer or under a written policy of 54-3 the employer. (V.A.C.S. Art. 5155, Sec. 1 (part).) 54-4 Sec. 61.002. COMMISSION POWERS. (a) The commission may 54-5 adopt rules as necessary to implement this chapter. 54-6 (b) The commission may administer oaths as necessary to 54-7 implement this chapter. (V.A.C.S. Art. 5155, Sec. 7.) 54-8 Sec. 61.003. GOVERNMENTAL ENTITIES EXCLUDED. This chapter 54-9 does not apply to the United States, this state, or a political 54-10 subdivision of this state. (V.A.C.S. Art. 5155, Sec. 1 (part).) 54-11 (Sections 61.004-61.010 reserved for expansion) 54-12 SUBCHAPTER B. PAYMENT OF WAGES 54-13 Sec. 61.011. PAYDAYS. (a) An employer shall pay wages to 54-14 each employee who is exempt from the overtime pay provisions of the 54-15 Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) 54-16 at least once a month. 54-17 (b) An employer shall pay wages to an employee other than an 54-18 employee covered by Subsection (a) at least twice a month. 54-19 (c) If wages are paid twice a month, each pay period must 54-20 consist as nearly as possible of an equal number of days. 54-21 (V.A.C.S. Art. 5155, Sec. 2(a).) 54-22 Sec. 61.012. DESIGNATION OF PAYDAYS; NOTICE. (a) An 54-23 employer shall designate paydays in accordance with Section 61.011. 54-24 (b) If an employer fails to designate paydays, the 54-25 employer's paydays are the first and 15th day of each month. 54-26 (c) An employer shall post, in conspicuous places in the 54-27 workplace, notices indicating the paydays. (V.A.C.S. Art. 5155, 55-1 Sec. 4.) 55-2 Sec. 61.013. PAYMENT OTHER THAN ON PAYDAY. An employer 55-3 shall pay an employee who is not paid on a payday for any reason, 55-4 including the employee's absence on a payday, on another regular 55-5 business day on the employee's request. (V.A.C.S. Art. 5155, Sec. 55-6 2(c).) 55-7 Sec. 61.014. PAYMENT AFTER TERMINATION OF EMPLOYMENT. (a) 55-8 An employer shall pay in full an employee who is discharged from 55-9 employment not later than the sixth day after the date the employee 55-10 is discharged. 55-11 (b) An employer shall pay in full an employee who leaves 55-12 employment other than by discharge not later than the next 55-13 regularly scheduled payday. (V.A.C.S. Art. 5155, Secs. 2(d), (e).) 55-14 Sec. 61.015. PAYMENT OF COMMISSIONS AND BONUSES. (a) Wages 55-15 paid on commission and bonuses are due according to the terms of: 55-16 (1) an agreement between the employee and employer; or 55-17 (2) an applicable collective bargaining agreement. 55-18 (b) An employer shall pay wages paid on commission and 55-19 bonuses to an employee in a timely manner as required for the 55-20 payment of other wages under this chapter. (V.A.C.S. Art. 5155, 55-21 Sec. 2(b).) 55-22 Sec. 61.016. FORM OF PAYMENT. (a) An employer shall pay 55-23 wages to an employee: 55-24 (1) in United States currency; 55-25 (2) by a written instrument issued by the employer 55-26 that is negotiable on demand at full face value for United States 55-27 currency; or 56-1 (3) by the electronic transfer of funds. 56-2 (b) An employee may agree in writing to receive part or all 56-3 of the wages in kind or in another form. 56-4 (c) Payment by a written instrument that is not negotiable 56-5 or for which payment is refused for any reason attributable to the 56-6 employer does not constitute payment of wages for the purposes of 56-7 this chapter. (V.A.C.S. Art. 5155, Sec. 2(f).) 56-8 Sec. 61.017. DELIVERY OF PAYMENT. An employer shall pay 56-9 wages by: 56-10 (1) delivering them to the employee at the employee's 56-11 regular place of employment during regular employment hours; 56-12 (2) delivering them to the employee at a time and 56-13 place agreed on by the employer and employee; 56-14 (3) sending them to the employee by registered mail, 56-15 to be received by the employee not later than payday; 56-16 (4) delivering them in a manner similar to a manner 56-17 specified by Subdivision (1), (2), or (3) to a person designated by 56-18 the employee in writing; or 56-19 (5) delivering them to the employee by any reasonable 56-20 means authorized by the employee in writing. (V.A.C.S. Art. 5155, 56-21 Sec. 2(g).) 56-22 Sec. 61.018. DEDUCTION FROM WAGES. An employer may not 56-23 withhold or divert any part of an employee's wages unless the 56-24 employer: 56-25 (1) is ordered to do so by a court of competent 56-26 jurisdiction; 56-27 (2) is authorized to do so by state or federal law; or 57-1 (3) has written authorization from the employee to 57-2 deduct part of the wages for a lawful purpose. (V.A.C.S. Art. 57-3 5155, Sec. 3.) 57-4 Sec. 61.019. FAILURE TO PAY WAGES; CRIMINAL PENALTY. (a) 57-5 An employer commits an offense if: 57-6 (1) at the time of hiring an employee, the employer 57-7 intends to avoid payment of wages owed to the employee; and 57-8 (2) the employer fails after demand to pay those 57-9 wages. 57-10 (b) An offense under this section is a felony of the third 57-11 degree. (V.A.C.S. Art. 5155, Sec. 5A.) 57-12 Sec. 61.020. FAILURE TO PAY WAGES; ATTORNEY GENERAL ACTION. 57-13 The attorney general may seek injunctive relief in district court 57-14 against an employer who repeatedly fails to pay wages as required 57-15 by this chapter. (V.A.C.S. Art. 5155, Sec. 5(k).) 57-16 (Sections 61.021-61.030 reserved for expansion) 57-17 SUBCHAPTER C. SECURITY FOR WAGE PAYMENTS 57-18 Sec. 61.031. BOND. (a) The commission may require an 57-19 employer to deposit a bond if: 57-20 (1) the employer is convicted of two violations of 57-21 this chapter; or 57-22 (2) a final order of the commission against an 57-23 employer for nonpayment of wages remains unsatisfied after the 10th 57-24 day after the date on which the time to appeal from that final 57-25 order has expired and an appeal is not pending. 57-26 (b) The bond must be: 57-27 (1) in an amount approved and considered by the 58-1 commission as adequate under the circumstances; 58-2 (2) payable to the state; 58-3 (3) conditioned that the employer, for a period not to 58-4 exceed 36 months, pay the employees in accordance with this 58-5 chapter; and 58-6 (4) conditioned that the employer pay any sum 58-7 recovered against the employer under this chapter. (V.A.C.S. Art. 58-8 5155, Sec. 2.1(a).) 58-9 Sec. 61.032. SUIT TO ENFORCE BOND REQUIREMENT. (a) If an 58-10 employer fails to deposit a bond required under Section 61.031 58-11 before the 11th day after the date on which demand is made for the 58-12 bond, the attorney general may bring a suit in the name of the 58-13 state against the employer to furnish the bond or to cease doing 58-14 business until the employer furnishes the bond. 58-15 (b) If the court finds just cause for requiring the bond and 58-16 that the bond is reasonably necessary and proper to secure prompt 58-17 payment of the wages of the employees of the employer and the 58-18 employer's compliance with this chapter, the court may enjoin the 58-19 employer from doing business until the requirement is met. The 58-20 injunction may also apply to any other person concerned with or in 58-21 any way participating in the failure to pay wages resulting in the 58-22 conviction or in a final order of the commission. The court may 58-23 make any other order appropriate and necessary to compel compliance 58-24 with the requirement. 58-25 (c) In an action under this section, the employer has the 58-26 burden of proving that the bond is unnecessary or that the amount 58-27 demanded by the commission is excessive. (V.A.C.S. Art. 5155, Sec. 59-1 2.1(b).) 59-2 Sec. 61.033. FAILURE OF SURETY COMPANY TO PAY VERIFIED CLAIM 59-3 FOR WAGES; CIVIL PENALTY. (a) A surety company that issues a bond 59-4 to secure the payment of wages under this chapter and that wilfully 59-5 fails to pay a verified claim for wages found to be due and payable 59-6 is subject to a civil penalty in the amount of $1,000 for each 59-7 failure to pay each employee. 59-8 (b) A subsequent violation is subject to a civil penalty in 59-9 the amount of $1,000 for each failure to pay each employee plus 25 59-10 percent of the amount unlawfully withheld. 59-11 (c) The attorney general shall recover a penalty imposed by 59-12 this section in an action brought in the name of the state. 59-13 (V.A.C.S. Art. 5155, Secs. 2.2(a), (b) (part).) 59-14 (Sections 61.034-61.050 reserved for expansion) 59-15 SUBCHAPTER D. WAGE CLAIMS 59-16 Sec. 61.051. FILING WAGE CLAIM. (a) An employee who is not 59-17 paid wages as prescribed by this chapter may file a wage claim with 59-18 the commission in accordance with this subchapter. 59-19 (b) A wage claim must be in writing on a form prescribed by 59-20 the commission and must be verified by the employee. 59-21 (c) A wage claim must be filed not later than the 180th day 59-22 after the date the wages claimed became due for payment. 59-23 (d) The employee may file the wage claim: 59-24 (1) in person at an office of the commission; or 59-25 (2) by mailing the claim to an address designated by 59-26 the commission. (V.A.C.S. Art. 5155, Sec. 5(a).) 59-27 Sec. 61.052. PRELIMINARY WAGE DETERMINATION ORDER. (a) The 60-1 commission shall analyze each wage claim filed under Section 61.051 60-2 and, if the claim alleges facts actionable under this chapter, 60-3 shall investigate the claim and issue a preliminary wage 60-4 determination order: 60-5 (1) dismissing the wage claim; or 60-6 (2) ordering payment of wages determined to be due and 60-7 unpaid. 60-8 (b) If an administrative penalty is imposed under Section 60-9 61.053, the preliminary wage determination order must include an 60-10 order for payment of the penalty. 60-11 (c) The commission shall mail notice of the preliminary wage 60-12 determination order to each party at that party's last known 60-13 address, as reflected by commission records. (V.A.C.S. Art. 5155, 60-14 Sec. 5(b).) 60-15 Sec. 61.053. BAD FAITH; ADMINISTRATIVE PENALTY. (a) If the 60-16 commission determines that an employer acted in bad faith in not 60-17 paying wages as required by this chapter, the commission, in 60-18 addition to ordering the payment of the wages, may assess an 60-19 administrative penalty against the employer. 60-20 (b) If the commission determines an employee acted in bad 60-21 faith in bringing a wage claim, the commission may assess an 60-22 administrative penalty against the employee. 60-23 (c) An administrative penalty assessed under this section 60-24 may not exceed the lesser of: 60-25 (1) the amount of the wages in question or claimed; or 60-26 (2) $1,000. 60-27 (d) In determining the amount of an administrative penalty 61-1 assessed under this section, the commission shall consider: 61-2 (1) the seriousness of the violation; 61-3 (2) the history of previous violations; 61-4 (3) the amount necessary to deter a future violation; 61-5 and 61-6 (4) any other appropriate matter, including mitigating 61-7 circumstances. (V.A.C.S. Art. 5155, Sec. 5(c).) 61-8 Sec. 61.054. REQUEST FOR HEARING ON PRELIMINARY ORDER. (a) 61-9 Either party may request a hearing to contest a preliminary wage 61-10 determination order. 61-11 (b) The request for hearing must be made in writing not 61-12 later than the 21st day after the date the commission mails the 61-13 notice of the preliminary wage determination order. (V.A.C.S. Art. 61-14 5155, Sec. 5(d) (part).) 61-15 Sec. 61.055. PRELIMINARY ORDER FINAL IF HEARING NOT 61-16 REQUESTED. If neither party requests a hearing to contest a 61-17 preliminary wage determination order within the period prescribed 61-18 by Section 61.054, the order becomes the final order of the 61-19 commission for all purposes, and neither party is entitled to 61-20 judicial review of the order under this subchapter. (V.A.C.S. Art. 61-21 5155, Sec. 5(d) (part).) 61-22 Sec. 61.056. PAYMENT REQUIRED IF HEARING NOT REQUESTED. (a) 61-23 An employer that does not request a hearing within the period 61-24 prescribed by Section 61.054 to contest a preliminary wage 61-25 determination order shall pay the amount ordered to the commission 61-26 not later than the 21st day after the date the commission mails 61-27 notice of the order. 62-1 (b) Payment to the commission constitutes payment to the 62-2 employee for all purposes. (V.A.C.S. Art. 5155, Sec. 5(e).) 62-3 Sec. 61.057. NOTICE; TIME FOR HEARING. (a) A notice 62-4 regarding an administrative hearing conducted under this subchapter 62-5 must be mailed by the commission not later than the 21st day after 62-6 the date a request for the hearing is received by the commission. 62-7 (b) As soon as practicable, but not later than the 45th day 62-8 after the date a notice is mailed under Subsection (a), the 62-9 commission shall conduct the hearing. (V.A.C.S. Art. 5155, Sec. 62-10 5(f) (part).) 62-11 Sec. 61.058. HEARING PROCEDURES. (a) A hearing conducted 62-12 under this subchapter is subject to the rules and hearings 62-13 procedures used by the commission in the determination of a claim 62-14 for unemployment compensation benefits. 62-15 (b) The hearing is not subject to the Administrative 62-16 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas 62-17 Civil Statutes). (V.A.C.S. Art. 5155, Sec. 5(f) (part).) 62-18 Sec. 61.059. COMMISSION CONSIDERATION OF PRELIMINARY WAGE 62-19 DETERMINATION ORDER. The commission may modify, affirm, or rescind 62-20 a preliminary wage determination order. (V.A.C.S. Art. 5155, Sec. 62-21 5(f) (part).) 62-22 Sec. 61.060. ORDER AFTER HEARING. After a hearing, the 62-23 commission shall enter a written order for the payment of wages 62-24 that the commission determines to be due or for the payment of any 62-25 penalty the commission assesses. (V.A.C.S. Art. 5155, Sec. 5(g) 62-26 (part).) 62-27 Sec. 61.061. NOTICE AND FINALITY OF ORDER. (a) The 63-1 commission shall mail to each party to the appeal notice of: 63-2 (1) the decision; 63-3 (2) the amount of wages subject to the order; 63-4 (3) the amount of any penalty assessed; and 63-5 (4) the parties' right to judicial review of the 63-6 order. 63-7 (b) The notice shall be mailed to a party's last known 63-8 address, as shown by commission records. 63-9 (c) The order becomes final 14 days after the date on which 63-10 it is mailed unless before that date: 63-11 (1) a party to the appeal files a written motion for 63-12 rehearing; or 63-13 (2) the commission reopens the hearing. (V.A.C.S. 63-14 Art. 5155, Sec. 5(g) (part).) 63-15 Sec. 61.062. JUDICIAL REVIEW. (a) A party who has 63-16 exhausted the party's administrative remedies under this chapter 63-17 may bring a suit to appeal the order. 63-18 (b) The suit must be filed not later than the 60th day after 63-19 the date the final order is mailed. 63-20 (c) The commission and any other party to the proceeding 63-21 before the commission must be made defendants in the suit. 63-22 (d) The suit must be brought in the county of the claimant's 63-23 residence. If the claimant is not a resident of this state, the 63-24 suit must be brought in the county in this state in which the 63-25 employer has its principal place of business. 63-26 (e) An appeal under this subchapter is by trial de novo with 63-27 the substantial evidence rule being the standard of review in the 64-1 manner as applied to an appeal from a final decision under Subtitle 64-2 A, Title 4. (V.A.C.S. Art. 5155, Sec. 5(g) (part).) 64-3 Sec. 61.063. PAYMENT TO COMMISSION; ESCROW PENDING REVIEW; 64-4 WAIVER. (a) Not later than the 60th day after the date a 64-5 commission order becomes final, the party required to pay wages or 64-6 a penalty shall: 64-7 (1) pay the amount to the commission; or 64-8 (2) if the party files a petition for judicial review 64-9 in a court of competent jurisdiction contesting the final order, 64-10 send the amount to the commission for deposit in an 64-11 interest-bearing escrow account. 64-12 (b) Unless the party files an affidavit of inability to pay 64-13 with the clerk of the court within the period specified in 64-14 Subsection (a), failure to send the amount within that period 64-15 constitutes a waiver of the right to judicial review. 64-16 (c) If after judicial review it is determined that some or 64-17 all of the wages are not owed or the penalty is reduced or is not 64-18 assessed, the commission shall remit the appropriate amount to the 64-19 party assessed the wage payment or penalty, plus the interest 64-20 accrued on the escrowed amount. Interest under this section shall 64-21 be paid for the period beginning on the date the assessed amount is 64-22 paid to the commission and ending on the date the amount is 64-23 remitted to the party. (V.A.C.S. Art. 5155, Secs. 5(h), (i).) 64-24 Sec. 61.064. PAYMENT TO EMPLOYEE. Not later than the 30th 64-25 day after the date on which a claim is finally adjudicated or 64-26 otherwise resolved, the commission shall pay to the claimant wages 64-27 collected under this subchapter and any interest earned on those 65-1 wages. (V.A.C.S. Art. 5155, Sec. 5(l) (part).) 65-2 Sec. 61.065. DEPOSIT OF PENALTY. The commission shall 65-3 deposit a penalty collected under this subchapter in the 65-4 unemployment compensation special administration fund established 65-5 under Subchapter E, Chapter 203. (V.A.C.S. Art. 5155, Sec. 5(l) 65-6 (part).) 65-7 Sec. 61.066. ATTORNEY GENERAL ACTION; ENFORCEMENT OF ORDER. 65-8 (a) The attorney general may bring a suit in a district court in 65-9 Travis County to enforce a final order from which an appeal under 65-10 this chapter has not been taken. 65-11 (b) In a suit brought under Subsection (a), on the request 65-12 of the attorney general the court may order payment of attorney's 65-13 fees, including investigation costs and other costs of court. 65-14 (V.A.C.S. Art. 5155, Sec. 5(j).) 65-15 (Sections 61.067-61.080 reserved for expansion) 65-16 SUBCHAPTER E. ADMINISTRATIVE LIEN 65-17 Sec. 61.081. CREATION AND ATTACHMENT OF LIEN. (a) A final 65-18 order of the commission against an employer indebted to the state 65-19 for penalties or wages, unless timely appealed to a court, is a 65-20 lien on all the property belonging to the employer. 65-21 (b) The lien for an unpaid debt attaches at the time the 65-22 order of the commission becomes final. (V.A.C.S. Art. 5155, Sec. 65-23 6(a) (part).) 65-24 Sec. 61.082. ENFORCEMENT OF LIEN. (a) Subchapters A and B, 65-25 Chapter 113, Tax Code, govern the enforcement of a lien established 65-26 under this subchapter. 65-27 (b) In administering and enforcing the lien, the commission 66-1 has the duties imposed and the powers conferred on the comptroller 66-2 for the enforcement of other liens under Subchapters A and B, 66-3 Chapter 113, Tax Code. (V.A.C.S. Art. 5155, Sec. 6(a) (part).) 66-4 Sec. 61.083. FILING; FEE. (a) A lien under this subchapter 66-5 may be recorded in the book entitled "State Tax Liens" kept by the 66-6 county clerk as provided by Section 113.004, Tax Code. 66-7 (b) The commission shall pay the county clerk of the county 66-8 in which a notice of the lien has been filed the usual fee for 66-9 filing and recording similar instruments. The fee shall be paid by 66-10 warrant drawn by the comptroller. The fee is an amount due to the 66-11 commission from the employer. (V.A.C.S. Art. 5155, Secs. 6(a) 66-12 (part), (b) (part).) 66-13 Sec. 61.084. RELEASE OF LIEN. (a) A lien under this 66-14 subchapter may be released in the manner provided by Subchapter A, 66-15 Chapter 113, Tax Code, for a state tax lien. 66-16 (b) If the liability secured by the lien is fully paid, the 66-17 commission shall mail a release of lien to the employer. 66-18 (c) The employer is responsible for filing a release of lien 66-19 with the appropriate county clerk and paying the county clerk's fee 66-20 for recording the release. (V.A.C.S. Art. 5155, Secs. 6(a) (part), 66-21 (b) (part).) 66-22 CHAPTER 62. MINIMUM WAGE 66-23 SUBCHAPTER A. GENERAL PROVISIONS 66-24 Sec. 62.001. SHORT TITLE 66-25 Sec. 62.002. DEFINITIONS 66-26 Sec. 62.003. EARNINGS STATEMENT 66-27 Sec. 62.004. PROVISION OF INFORMATION 67-1 Sec. 62.005. COLLECTIVE BARGAINING NOT IMPAIRED 67-2 (Sections 62.006-62.050 reserved for expansion) 67-3 SUBCHAPTER B. MINIMUM WAGE 67-4 Sec. 62.051. MINIMUM WAGE 67-5 Sec. 62.052. TIPPED EMPLOYEES 67-6 Sec. 62.053. COST OF MEALS OR LODGING 67-7 Sec. 62.054. CERTAIN EMPLOYEES SUBJECT TO CALL 67-8 Sec. 62.055. SPECIAL WAGE FOR CERTAIN EMPLOYEES 67-9 Sec. 62.056. MEDICAL CERTIFICATE 67-10 Sec. 62.057. PATIENTS AND CLIENTS OF TEXAS DEPARTMENT OF MENTAL 67-11 HEALTH AND MENTAL RETARDATION 67-12 (Sections 62.058-62.100 reserved for expansion) 67-13 SUBCHAPTER C. AGRICULTURAL PIECE RATE WORKERS 67-14 Sec. 62.101. DEFINITION 67-15 Sec. 62.102. MINIMUM WAGE FOR AGRICULTURAL PIECE RATE 67-16 WORKERS 67-17 Sec. 62.103. PIECE RATE DETERMINED BY COMMISSIONER 67-18 Sec. 62.104. COLLECTION OF INFORMATION 67-19 Sec. 62.105. COMPUTATION OF PIECE RATE 67-20 Sec. 62.106. HEARINGS 67-21 Sec. 62.107. ORDER ESTABLISHING PIECE RATE 67-22 Sec. 62.108. RULES 67-23 Sec. 62.109. APPEAL OF COMMISSIONER'S DECISION 67-24 Sec. 62.110. CHANGE IN PIECE RATE 67-25 Sec. 62.111. ANNUAL REVIEW OF PIECE RATES 67-26 Sec. 62.112. PIECE RATE FOR CERTAIN COMMODITIES PROHIBITED 67-27 Sec. 62.113. APPLICATION TO DIRECT EMPLOYMENT AND 68-1 CONTRACT LABOR 68-2 Sec. 62.114. SUSPENSION OF PIECE RATE 68-3 (Sections 62.115-62.150 reserved for expansion) 68-4 SUBCHAPTER D. EXEMPTIONS 68-5 Sec. 62.151. PERSON COVERED BY FEDERAL ACT 68-6 Sec. 62.152. EMPLOYMENT BY RELIGIOUS, EDUCATIONAL, CHARITABLE, 68-7 OR NONPROFIT ORGANIZATION 68-8 Sec. 62.153. EMPLOYMENT OF CERTAIN PROFESSIONALS, SALESPERSONS, 68-9 AND PUBLIC OFFICIALS 68-10 Sec. 62.154. DOMESTIC EMPLOYMENT 68-11 Sec. 62.155. EMPLOYMENT OF CERTAIN YOUTHS AND STUDENTS 68-12 Sec. 62.156. EMPLOYMENT OF INMATES 68-13 Sec. 62.157. EMPLOYMENT OF CERTAIN FAMILY MEMBERS 68-14 Sec. 62.158. CERTAIN AMUSEMENT AND RECREATIONAL 68-15 ESTABLISHMENTS 68-16 Sec. 62.159. CERTAIN EMPLOYERS NOT CONTRIBUTING TO UNEMPLOYMENT 68-17 COMPENSATION FUND; CERTIFICATE 68-18 Sec. 62.160. AGRICULTURAL EXEMPTIONS 68-19 Sec. 62.161. SHELTERED WORKSHOPS 68-20 (Sections 62.162-62.200 reserved for expansion) 68-21 SUBCHAPTER E. CIVIL PENALTY 68-22 Sec. 62.201. CIVIL PENALTY 68-23 Sec. 62.202. LIMITATIONS 68-24 Sec. 62.203. PLAINTIFFS 68-25 Sec. 62.204. REQUIRED FINDINGS 68-26 Sec. 62.205. ATTORNEY'S FEES; COSTS 68-27 CHAPTER 62. MINIMUM WAGE 69-1 SUBCHAPTER A. GENERAL PROVISIONS 69-2 Sec. 62.001. SHORT TITLE. This chapter may be cited as the 69-3 Texas Minimum Wage Act. (V.A.C.S. Art. 5159d, Sec. 2.) 69-4 Sec. 62.002. DEFINITIONS. In this chapter, unless the 69-5 context requires a different definition: 69-6 (1) "Agricultural piece rate worker" means a person: 69-7 (A) who is employed as a hand harvest laborer in 69-8 agriculture; and 69-9 (B) whose pay is computed on a piece rate in an 69-10 operation for which the pay has been and is customarily and 69-11 generally recognized as having been computed on a piece rate in the 69-12 region of employment. 69-13 (2) "Agriculture" includes: 69-14 (A) farming in all its branches; 69-15 (B) cultivating and tilling the soil; 69-16 (C) dairying; 69-17 (D) producing, cultivating, growing, and 69-18 harvesting an agricultural or horticultural commodity, including a 69-19 commodity defined as an agricultural commodity by Section 15(g), 69-20 Agricultural Marketing Act (12 U.S.C. Section 1141j(g)); 69-21 (E) raising livestock, bees, fur-bearing 69-22 animals, or poultry; and 69-23 (F) any practice performed by a farmer or on a 69-24 farm as an incident to or in conjunction with farming operations, 69-25 including: 69-26 (i) forestry or lumber operations; 69-27 (ii) preparation for market; and 70-1 (iii) delivery to storage, market, or a 70-2 carrier for transportation to market. 70-3 (3) "Commission" means the Texas Employment 70-4 Commission. 70-5 (4) "Employ" includes to permit to work. 70-6 (5) "Employee" includes any individual employed by an 70-7 employer. 70-8 (6) "Employer" includes a person acting directly or 70-9 indirectly in the interest of an employer in relation to an 70-10 employee. 70-11 (7) "Person" means an individual, partnership, 70-12 association, corporation, business trust, legal representative, or 70-13 any organized group of persons. (V.A.C.S. Art. 5159d, Secs. 3(a), 70-14 (b), (c), (d), (f), (g); New.) 70-15 Sec. 62.003. EARNINGS STATEMENT. (a) At the end of each 70-16 pay period, an employer shall give each employee a written earnings 70-17 statement covering the pay period. 70-18 (b) An earnings statement must be signed by the employer or 70-19 the employer's agent and must show: 70-20 (1) the name of the employee; 70-21 (2) the rate of pay; 70-22 (3) the total amount of pay earned by the employee 70-23 during the pay period; 70-24 (4) any deduction made from the employee's pay and the 70-25 purpose of the deduction; 70-26 (5) the amount of pay after all deductions are made; 70-27 (6) the total number of: 71-1 (A) hours worked by the employee if the 71-2 employee's pay is computed by the hour; or 71-3 (B) units produced by the employee during the 71-4 pay period if the employee's pay is computed on a piece rate; and 71-5 (7) the words "medical certificate," if the employee 71-6 is paid a wage lower than the applicable minimum wage under Section 71-7 62.055. 71-8 (c) An earnings statement may be in any form determined by 71-9 the employer. The information required by Subsection (b) may be 71-10 stated on a check voucher or bank draft given to an employee for 71-11 the employee's wages. 71-12 (d) In this section, "pay period" means the period that an 71-13 employee works for which salary or wages are regularly paid under 71-14 the employee's employment agreement. (V.A.C.S. Art. 5159d, Secs. 71-15 3(k); 9(c) (part); 11(a), (c).) 71-16 Sec. 62.004. PROVISION OF INFORMATION. The commission shall 71-17 provide information to the public about this chapter to ensure that 71-18 both employers and employees in this state are fully aware of: 71-19 (1) their respective rights and responsibilities; 71-20 (2) the specified exemptions; and 71-21 (3) the penalties and liabilities that may be incurred 71-22 for a violation of this chapter. (V.A.C.S. Art. 5159d, Sec. 15.) 71-23 Sec. 62.005. COLLECTIVE BARGAINING NOT IMPAIRED. This 71-24 chapter does not interfere with or in any way diminish the right of 71-25 employees to bargain collectively with their employer through 71-26 representatives chosen by the employees to establish wages that 71-27 exceed the applicable minimum wage under this chapter. (V.A.C.S. 72-1 Art. 5159d, Sec. 14.) 72-2 (Sections 62.006-62.050 reserved for expansion) 72-3 SUBCHAPTER B. MINIMUM WAGE 72-4 Sec. 62.051. MINIMUM WAGE. An employer shall pay to each 72-5 employee not less than $3.35 an hour, except as provided by 72-6 Sections 62.055 and 62.057. (V.A.C.S. Art. 5159d, Secs. 5(a), 6.) 72-7 Sec. 62.052. TIPPED EMPLOYEES. (a) In determining the wage 72-8 of a tipped employee, the amount paid the employee by the employer 72-9 is considered to be increased because of tips by an amount 72-10 determined by the employer but that does not exceed 50 percent of 72-11 the applicable minimum wage rate. 72-12 (b) In this section, "tipped employee" means an employee 72-13 engaged in an occupation in which the employee customarily and 72-14 regularly receives more than $20 a month in tips. (V.A.C.S. Art. 72-15 5159d, Secs. 3(e), 5(b).) 72-16 Sec. 62.053. COST OF MEALS OR LODGING. In computing the 72-17 wage paid to an employee, an employer may include the reasonable 72-18 cost to the employer of furnishing meals, lodging, or both to the 72-19 employee if: 72-20 (1) meals or lodging customarily are furnished by the 72-21 employer to employees; and 72-22 (2) the cost of the meals and lodging are separately 72-23 stated and identified in the earnings statement furnished to the 72-24 employee under Section 62.003. (V.A.C.S. Art. 5159d, Sec. 5(c).) 72-25 Sec. 62.054. CERTAIN EMPLOYEES SUBJECT TO CALL. An employer 72-26 may not be required to pay an employee who lives on the premises of 72-27 a business and who is assigned certain working hours plus 73-1 additional hours when the employee is subject to call for more than 73-2 the number of hours the employee actually works or is on duty 73-3 because of assigned working hours. (V.A.C.S. Art. 5159d, Sec. 73-4 5(d).) 73-5 Sec. 62.055. SPECIAL WAGE FOR CERTAIN EMPLOYEES. (a) A 73-6 person may be employed at a wage less than the applicable minimum 73-7 wage under this chapter but not less than 60 percent of the minimum 73-8 wage if: 73-9 (1) the person's earning or productive capacity is 73-10 impaired by age, physical or mental deficiency, or injury; or 73-11 (2) the person is over 65 years of age. 73-12 (b) Subsection (a) does not apply to a person employed as an 73-13 agricultural piece rate worker. (V.A.C.S. Art. 5159d, Sec. 9(a) 73-14 (part).) 73-15 Sec. 62.056. MEDICAL CERTIFICATE. (a) An employer who 73-16 employs a person described by Section 62.055(a)(1) at a wage lower 73-17 than the applicable minimum wage under Section 62.051 is liable 73-18 under Subchapter E unless before employing the person the employer 73-19 obtains a medical certificate meeting the requirements of 73-20 Subsection (b). 73-21 (b) The medical certificate must be signed by a physician 73-22 licensed to practice medicine by the Texas State Board of Medical 73-23 Examiners and must certify that because of age, physical or mental 73-24 deficiency, or injury the productive or earning capacity of the 73-25 person seeking employment is materially impaired. 73-26 (c) The employer shall retain the medical certificate during 73-27 the period of the person's employment and for two years after the 74-1 employment ends. (V.A.C.S. Art. 5159d, Secs. 9(b) (part), (c) 74-2 (part).) 74-3 Sec. 62.057. PATIENTS AND CLIENTS OF TEXAS DEPARTMENT OF 74-4 MENTAL HEALTH AND MENTAL RETARDATION. (a) A person may be 74-5 compensated for services rendered to the Texas Department of Mental 74-6 Health and Mental Retardation or a department facility at a 74-7 percentage of the base wage adopted under this section if: 74-8 (1) the person is a patient or client of a department 74-9 facility; 74-10 (2) the person's productive capacity is impaired; 74-11 (3) the person: 74-12 (A) assists in the operation of the facility as 74-13 part of the person's therapy; or 74-14 (B) receives occupational training in a 74-15 sheltered workshop or other program operated by the department; and 74-16 (4) the facility or department derives an economic 74-17 benefit from the person's services. 74-18 (b) The percentage of the base wage paid to a person under 74-19 Subsection (a) must correspond to the percentage of the person's 74-20 productive capacity compared with the capacity of an employee who 74-21 performs the same or similar tasks and who is not similarly 74-22 impaired. 74-23 (c) The department shall adopt rules to determine the base 74-24 wage and the percentage of productive capacity of the patients and 74-25 clients and other rules necessary to implement this section. 74-26 (d) Services rendered and payment provided under this 74-27 section may not be construed as creating an employer-employee 75-1 relationship between the department and the patient or client 75-2 engaged in occupational training or therapeutic or rehabilitative 75-3 services. (V.A.C.S. Art. 5159d, Sec. 10a (part).) 75-4 (Sections 62.058-62.100 reserved for expansion) 75-5 SUBCHAPTER C. AGRICULTURAL PIECE RATE WORKERS 75-6 Sec. 62.101. DEFINITION. In this subchapter, "commissioner" 75-7 means the commissioner of agriculture. (V.A.C.S. Art. 5159d, Sec. 75-8 3(j).) 75-9 Sec. 62.102. MINIMUM WAGE FOR AGRICULTURAL PIECE RATE 75-10 WORKERS. (a) A person employed as an agricultural piece rate 75-11 worker to harvest a commodity for which a piece rate has been 75-12 established by the commissioner under this subchapter is entitled 75-13 to receive not less than the minimum hourly wage established under 75-14 Section 62.051. 75-15 (b) Section 62.051 applies to an employer employing a hand 75-16 harvest laborer to harvest a commodity for which a piece rate has 75-17 not been established. 75-18 (c) An employer may not pay an agricultural piece rate 75-19 worker at a piece rate less than the rate determined by the 75-20 commissioner under Section 62.103. (V.A.C.S. Art. 5159d, Secs. 75-21 7(a), (b) (part), (d) (part).) 75-22 Sec. 62.103. PIECE RATE DETERMINED BY COMMISSIONER. (a) 75-23 The commissioner shall determine a piece rate for each agricultural 75-24 commodity that is commercially produced in substantial quantity in 75-25 this state. 75-26 (b) For each agricultural commodity, the piece rate must be 75-27 equivalent to the minimum hourly wage for other agricultural 76-1 workers, as provided by Section 62.051, so that when payment by 76-2 unit of production is applied to a worker of average ability and 76-3 diligence in harvesting the commodity, the worker receives an 76-4 amount equal to the minimum hourly wage for other agricultural 76-5 workers. 76-6 (c) If an agricultural piece rate worker harvests more than 76-7 the number of units of a particular commodity that would provide 76-8 the established minimum wage, the worker shall be paid for the 76-9 total number of units of production that the worker harvests. 76-10 (V.A.C.S. Art. 5159d, Sec. 7(b) (part).) 76-11 Sec. 62.104. COLLECTION OF INFORMATION. (a) The 76-12 commissioner shall collect sufficient information about the actual 76-13 productivity of hand harvesters of agricultural commodities in this 76-14 state to reasonably determine a piece rate for each commodity. 76-15 (b) The commissioner shall retain all information used for 76-16 determining a piece rate while the piece rate is in effect. 76-17 (c) All information used for determining a piece rate shall 76-18 be available for public inspection. (V.A.C.S. Art. 5159d, Secs. 76-19 7(c) (part), (e).) 76-20 Sec. 62.105. COMPUTATION OF PIECE RATE. (a) From the 76-21 information collected under Section 62.104, the average hourly 76-22 productivity of hand harvest laborers for each agricultural 76-23 commodity commercially produced in substantial quantity in this 76-24 state shall be computed and expressed in: 76-25 (1) units of the commodity; or 76-26 (2) units of weight or measure customarily used in 76-27 regard to the commodity. 77-1 (b) The piece rate established by the commissioner for a 77-2 commodity must equal the minimum wage for agricultural workers 77-3 under Section 62.051 divided by the average hourly production of 77-4 hand harvesters of the commodity, rounded to the nearest cent. 77-5 (V.A.C.S. Art. 5159d, Sec. 7(c) (part).) 77-6 Sec. 62.106. HEARINGS. (a) Before issuing an order 77-7 establishing a piece rate, the commissioner or a person designated 77-8 by the commissioner shall hold a public hearing at which the 77-9 proposed rate and the information from which the rate is determined 77-10 shall be presented. 77-11 (b) Agricultural employers and employees or their 77-12 representatives shall be given a reasonable opportunity to be heard 77-13 and to protest the establishment of a proposed rate. 77-14 (c) After a hearing, the commissioner may modify a proposed 77-15 rate before finally establishing the rate. (V.A.C.S. Art. 5159d, 77-16 Sec. 7(f) (part).) 77-17 Sec. 62.107. ORDER ESTABLISHING PIECE RATE. (a) An order 77-18 of the commissioner establishing or modifying a piece rate may not 77-19 take effect before the 31st day after the date the order is issued. 77-20 (b) Each order establishing a piece rate shall be kept on 77-21 file in the commissioner's office in Austin, Texas. 77-22 (c) The commissioner shall furnish a copy of each order 77-23 establishing a piece rate to the Texas Employment Commission. 77-24 (V.A.C.S. Art. 5159d, Secs. 7(g) (part), (h) (part).) 77-25 Sec. 62.108. RULES. The commissioner may adopt rules 77-26 necessary for the proper administration of this subchapter, 77-27 including procedures for giving notice of and conducting hearings. 78-1 (V.A.C.S. Art. 5159d, Sec. 7(l).) 78-2 Sec. 62.109. APPEAL OF COMMISSIONER'S DECISION. (a) Unless 78-3 set aside by a judgment of a court of competent jurisdiction, the 78-4 commissioner's decision establishing a piece rate is final and 78-5 binding on all parties subject to this chapter. 78-6 (b) If a piece rate for a commodity is set aside by final 78-7 judgment of a court of competent jurisdiction, the minimum hourly 78-8 wage provided by Section 62.051 applies to harvesting the commodity 78-9 until a valid piece rate is established. (V.A.C.S. Art. 5159d, 78-10 Sec. 7(f) (part).) 78-11 Sec. 62.110. CHANGE IN PIECE RATE. A new piece rate may be 78-12 established for a commodity in the manner provided for the 78-13 establishment of an initial piece rate at any time the information 78-14 available to the commissioner indicates a substantial change in 78-15 condition. (V.A.C.S. Art. 5159d, Sec. 7(i) (part).) 78-16 Sec. 62.111. ANNUAL REVIEW OF PIECE RATES. The commissioner 78-17 shall review each piece rate at least annually and shall determine 78-18 if a new piece rate is needed. (V.A.C.S. Art. 5159d, Sec. 7(i) 78-19 (part).) 78-20 Sec. 62.112. PIECE RATE FOR CERTAIN COMMODITIES PROHIBITED. 78-21 (a) A piece rate may not be established for harvesting of a 78-22 commodity if, in the commissioner's judgment: 78-23 (1) sufficient information is not available for 78-24 determining the average hourly productivity of hand harvesters of 78-25 the commodity; or 78-26 (2) the commodity is not commercially produced in this 78-27 state in sufficient quantity to justify establishing a piece rate. 79-1 (b) The commissioner's decision not to establish a piece 79-2 rate for a particular commodity does not preclude the subsequent 79-3 establishment of a piece rate for the commodity when, in the 79-4 commissioner's judgment: 79-5 (1) sufficient information is available; and 79-6 (2) the quantity of production of the commodity 79-7 justifies establishing a piece rate. (V.A.C.S. Art. 5159d, Sec. 79-8 7(d) (part).) 79-9 Sec. 62.113. APPLICATION TO DIRECT EMPLOYMENT AND CONTRACT 79-10 LABOR. This subchapter applies to: 79-11 (1) a person directly employed by an owner, operator, 79-12 or manager of a farm; and 79-13 (2) a person whose services to perform agricultural 79-14 labor are furnished to an employer by someone other than the 79-15 laborer. (V.A.C.S. Art. 5159d, Secs. 3(h), 7(j).) 79-16 Sec. 62.114. SUSPENSION OF PIECE RATE. The commissioner by 79-17 order may suspend a piece rate in a specified area for not more 79-18 than 30 days in an emergency caused by: 79-19 (1) a flood, hurricane, or other natural disaster; or 79-20 (2) any occurrence that may result in the excessive 79-21 loss of agricultural products. (V.A.C.S. Art. 5159d, Sec. 7(k).) 79-22 (Sections 62.115-62.150 reserved for expansion) 79-23 SUBCHAPTER D. EXEMPTIONS 79-24 Sec. 62.151. PERSON COVERED BY FEDERAL ACT. This chapter 79-25 does not apply to a person covered by the Fair Labor Standards Act 79-26 of 1938 (29 U.S.C. Section 201 et seq.). (V.A.C.S. Art. 5159d, 79-27 Sec. 4(a).) 80-1 Sec. 62.152. EMPLOYMENT BY RELIGIOUS, EDUCATIONAL, 80-2 CHARITABLE, OR NONPROFIT ORGANIZATION. An employer is exempt from 80-3 this chapter with respect to the employment of a person who is: 80-4 (1) a member of a religious order while the person is 80-5 performing a service for or at the direction of the order; 80-6 (2) a duly ordained, commissioned, or licensed 80-7 minister, priest, rabbi, sexton, or Christian Science reader while 80-8 the person is performing services in that capacity for a church, 80-9 synagogue, or religious organization; 80-10 (3) engaged in the activities of a religious, 80-11 educational, charitable, or nonprofit organization in which: 80-12 (A) the employer-employee relationship does not 80-13 in fact exist; or 80-14 (B) the services are rendered to the 80-15 organization gratuitously; 80-16 (4) employed by the Boy Scouts of America, the Girl 80-17 Scouts of America, or a local organization affiliated with those 80-18 organizations; 80-19 (5) employed by a camp of a religious, educational, 80-20 charitable, or nonprofit organization; or 80-21 (6) employed with the person's spouse by a nonprofit 80-22 educational institution to serve as the parents of a child: 80-23 (A) who is an orphan; 80-24 (B) one of whose natural parents is deceased; or 80-25 (C) who is enrolled in and resides in 80-26 residential facilities of the institution, if the employee and the 80-27 employee's spouse: 81-1 (i) reside in residential facilities of 81-2 the institution; and 81-3 (ii) receive, without cost, board and 81-4 lodging from the institution. (V.A.C.S. Art. 5159d, Secs. 4(b) 81-5 (part), (d).) 81-6 Sec. 62.153. EMPLOYMENT OF CERTAIN PROFESSIONALS, 81-7 SALESPERSONS, AND PUBLIC OFFICIALS. An employer is exempt from 81-8 this chapter with respect to the employment of a person: 81-9 (1) employed in a bona fide executive, administrative, 81-10 or professional capacity; 81-11 (2) employed as an outside salesperson or collector 81-12 and paid a commission; or 81-13 (3) who performs services for a political subdivision 81-14 as an elected official or as a member of a legislative body. 81-15 (V.A.C.S. Art. 5159d, Sec. 4(b) (part).) 81-16 Sec. 62.154. DOMESTIC EMPLOYMENT. An employer is exempt 81-17 from this chapter with respect to the employment of a person who: 81-18 (1) performs domestic services in or about a private 81-19 home, including a person who performs the duties of baby-sitting in 81-20 or out of the employer's home; or 81-21 (2) lives in or about a private home and furnishes 81-22 personal care for a resident of the home. (V.A.C.S. Art. 5159d, 81-23 Sec. 4(b) (part).) 81-24 Sec. 62.155. EMPLOYMENT OF CERTAIN YOUTHS AND STUDENTS. An 81-25 employer is exempt from this chapter with respect to the employment 81-26 of a person who: 81-27 (1) is less than 18 years of age and is not a high 82-1 school graduate or a graduate of a vocational training program, 82-2 other than a person who is employed in agriculture and whose pay is 82-3 computed on a piece rate; 82-4 (2) is less than 20 years of age and is a student 82-5 regularly enrolled in a high school, college, university, or 82-6 vocational training program, other than a person who is employed in 82-7 agriculture and whose pay is computed on a piece rate; or 82-8 (3) has a disability and who is: 82-9 (A) not more than 21 years of age; 82-10 (B) a client of vocational rehabilitation; and 82-11 (C) participating in a cooperative school-work 82-12 program. (V.A.C.S. Art. 5159d, Sec. 4(b) (part).) 82-13 Sec. 62.156. EMPLOYMENT OF INMATES. An employer is exempt 82-14 from this chapter with respect to the employment of a person who 82-15 performs services while imprisoned in the institutional division of 82-16 the Texas Department of Criminal Justice or while confined in a 82-17 local jail. (V.A.C.S. Art. 5159d, Sec. 4(b) (part).) 82-18 Sec. 62.157. EMPLOYMENT OF CERTAIN FAMILY MEMBERS. An 82-19 employer is exempt from this chapter with respect to employment of 82-20 the employer's brother, sister, brother-in-law, sister-in-law, 82-21 child, spouse, parent, son-in-law, daughter-in-law, ward, or person 82-22 in loco parentis to the employee. (V.A.C.S. Art. 5159d, Sec. 4(b) 82-23 (part).) 82-24 Sec. 62.158. CERTAIN AMUSEMENT AND RECREATIONAL 82-25 ESTABLISHMENTS. An employer is exempt from this chapter with 82-26 respect to employment in an amusement or recreational establishment 82-27 that: 83-1 (1) does not operate for more than seven months in a 83-2 calendar year; or 83-3 (2) had average receipts for any six months of the 83-4 preceding calendar year of not more than 33-1/3 percent of its 83-5 average receipts for the other six months of the year. (V.A.C.S. 83-6 Art. 5159d, Sec. 4(b) (part).) 83-7 Sec. 62.159. CERTAIN EMPLOYERS NOT CONTRIBUTING TO 83-8 UNEMPLOYMENT COMPENSATION FUND; CERTIFICATE. (a) An employer that 83-9 is liable for payment of contributions to the unemployment 83-10 compensation fund under Subtitle A, Title 4, is exempt from this 83-11 chapter, except with respect to employment of a person in 83-12 agriculture. 83-13 (b) The commission shall furnish a certificate stating 83-14 whether a specified employer is liable for the payment of 83-15 contributions to the unemployment compensation fund under Subtitle 83-16 A, Title 4, to a person making a written request for a certificate. 83-17 The commission may require payment of a fee not to exceed $5 for 83-18 the issuance of the certificate. 83-19 (c) A certificate issued under this section is admissible in 83-20 evidence in an action brought by an employee under Subchapter E. 83-21 In the absence of evidence to the contrary: 83-22 (1) it is presumed that the facts stated in the 83-23 certificate are true; and 83-24 (2) the certificate is conclusive as to whether the 83-25 named employer is exempt from this chapter under this section. 83-26 (V.A.C.S. Art. 5159d, Sec. 4(c) (part).) 83-27 Sec. 62.160. AGRICULTURAL EXEMPTIONS. (a) An employer is 84-1 exempt from this chapter with respect to employment of a person in 84-2 dairy farming. 84-3 (b) Sections 62.051-62.054 and Subchapter C do not apply to 84-4 an agricultural employer with respect to an employee engaged in the 84-5 production of livestock. 84-6 (c) In this section, "production of livestock" includes: 84-7 (1) any livestock operation, without regard to size or 84-8 type of location, in which the land produces forage or feedstuffs, 84-9 including naturally or artificially revegetated forage or 84-10 feedstuffs; 84-11 (2) breeding, feeding, watering, containing, 84-12 maintaining, and caring for livestock; 84-13 (3) production of livestock in feedlots; and 84-14 (4) all other activities necessary or useful to the 84-15 raising of livestock. (V.A.C.S. Art. 5159d, Secs. 3(l), 4(b) 84-16 (part), 8.) 84-17 Sec. 62.161. SHELTERED WORKSHOPS. A nonprofit charitable 84-18 organization that is engaged in evaluating, training, and 84-19 employment services for clients with disabilities and that complies 84-20 with federal regulations covering those activities is considered to 84-21 have complied with this chapter. (V.A.C.S. Art. 5159d, Sec. 10.) 84-22 (Sections 62.162-62.200 reserved for expansion) 84-23 SUBCHAPTER E. CIVIL PENALTY 84-24 Sec. 62.201. CIVIL PENALTY. An employer who violates 84-25 Section 62.051, 62.052, 62.053, 62.054, 62.055, or 62.056 or 84-26 Subchapter C is liable to an affected employee in the amount of the 84-27 unpaid wages plus an additional equal amount as liquidated damages. 85-1 (V.A.C.S. Art. 5159d, Sec. 13(a).) 85-2 Sec. 62.202. LIMITATIONS. An action to recover a liability 85-3 imposed by this subchapter must be brought not later than the 85-4 second anniversary of the date on which the unpaid wages are due 85-5 and payable. (V.A.C.S. Art. 5159d, Sec. 13(e).) 85-6 Sec. 62.203. PLAINTIFFS. (a) An action to recover a 85-7 liability under this subchapter may be brought by an employee for 85-8 that employee and other similarly affected employees. 85-9 (b) An employee may not be a plaintiff to an action brought 85-10 under this subchapter unless: 85-11 (1) the employee consents in writing; and 85-12 (2) the consent is filed in the court in which the 85-13 action is brought. (V.A.C.S. Art. 5159d, Sec. 13(b) (part).) 85-14 Sec. 62.204. REQUIRED FINDINGS. At the trial of an action 85-15 brought under this subchapter, the plaintiff recovers if the jury 85-16 or the court finds from a preponderance of the evidence that: 85-17 (1) the plaintiff is or has been employed by the 85-18 defendant at any time during the two years preceding the 85-19 institution of the action; 85-20 (2) the original petition filed by or on behalf of the 85-21 plaintiff is verified; and 85-22 (3) the defendant failed to pay the plaintiff the 85-23 minimum wage under this chapter. (V.A.C.S. Art. 5159d, Sec. 85-24 13(c).) 85-25 Sec. 62.205. ATTORNEY'S FEES; COSTS. In addition to a 85-26 judgment awarded to the plaintiff, the court shall allow reasonable 85-27 attorney's fees and costs of the action to be paid by the 86-1 defendant. (V.A.C.S. Art. 5159d, Sec. 13(d).) 86-2 (Chapters 63-80 reserved for expansion) 86-3 SUBTITLE D. EMPLOYEE BENEFITS 86-4 CHAPTER 81. WORK AND FAMILY POLICIES 86-5 Sec. 81.001. DEFINITIONS 86-6 Sec. 81.002. WORK AND FAMILY POLICIES ADVISORY COMMITTEE 86-7 Sec. 81.003. WORK AND FAMILY POLICIES CLEARINGHOUSE 86-8 Sec. 81.004. CLEARINGHOUSE POWERS AND DUTIES 86-9 Sec. 81.005. DEPOSIT OF MATERIALS 86-10 Sec. 81.006. WORK AND FAMILY POLICIES FUND 86-11 Sec. 81.007. RULES 86-12 Sec. 81.008. GIFTS, GRANTS, AND DONATIONS 86-13 CHAPTER 81. WORK AND FAMILY POLICIES 86-14 Sec. 81.001. DEFINITIONS. In this chapter: 86-15 (1) "Clearinghouse" means the Work and Family Policies 86-16 Clearinghouse. 86-17 (2) "Commission" means the Texas Employment 86-18 Commission. 86-19 (3) "Committee" means the Work and Family Policies 86-20 Advisory Committee. (V.A.C.S. Art. 5221g-1, Sec. 1.) 86-21 Sec. 81.002. WORK AND FAMILY POLICIES ADVISORY COMMITTEE. 86-22 (a) The Work and Family Policies Advisory Committee shall advise 86-23 the commission on: 86-24 (1) dependent care and other employment-related family 86-25 initiatives for public and private employers and employees; 86-26 (2) options for including dependent care as a state 86-27 employee benefit; and 87-1 (3) any other employment-related family issues. 87-2 (b) The administrator of the commission shall appoint the 87-3 members of the committee, to be composed of not more than 12 87-4 members. The committee must be composed of corporate, consumer, 87-5 and provider representatives from the public and private sectors. 87-6 (c) A member of the committee may not receive compensation 87-7 for service on the committee but is entitled to reimbursement for 87-8 necessary and reasonable expenses incurred while traveling on 87-9 official committee business, subject to any limitation on 87-10 reimbursement provided by the General Appropriations Act for a 87-11 state employee. Service on the committee is not state employment 87-12 for any purpose. (V.A.C.S. Art. 5221g-1, Sec. 2.) 87-13 Sec. 81.003. WORK AND FAMILY POLICIES CLEARINGHOUSE. The 87-14 Work and Family Policies Clearinghouse is within the commission. 87-15 (V.A.C.S. Art. 5221g-1, Sec. 3(a) (part).) 87-16 Sec. 81.004. CLEARINGHOUSE POWERS AND DUTIES. (a) The 87-17 clearinghouse shall provide technical assistance and information on 87-18 dependent care and other employment-related family issues to public 87-19 and private employers, state agencies, policymakers, and 87-20 individuals. 87-21 (b) The clearinghouse shall conduct research on child care 87-22 and other employment-related family issues in the state and compile 87-23 the results of that research. In fulfilling its obligations under 87-24 this subsection, the clearinghouse: 87-25 (1) may contract with other public or private 87-26 entities; 87-27 (2) shall select specific research topics after 88-1 consulting with the committee and considering the committee's 88-2 recommendations; and 88-3 (3) shall report annually on its research under this 88-4 subsection to the governor, lieutenant governor, and speaker of the 88-5 house of representatives. (V.A.C.S. Art. 5221g-1, Secs. 3(a) 88-6 (part), (d).) 88-7 Sec. 81.005. DEPOSIT OF MATERIALS. Materials on 88-8 employment-related family issues that are published by state 88-9 agencies may be deposited with the clearinghouse for distribution 88-10 to employers, job applicants, and other interested persons. 88-11 (V.A.C.S. Art. 5221g-1, Sec. 3(b).) 88-12 Sec. 81.006. WORK AND FAMILY POLICIES FUND. (a) The work 88-13 and family policies fund is in the state treasury. Money in the 88-14 fund is derived from fees deposited as required by Section 88-15 191.0045, Health and Safety Code, and may be used only for: 88-16 (1) the operation of the clearinghouse; 88-17 (2) research conducted by the clearinghouse under 88-18 Section 81.004; and 88-19 (3) other uses specifically authorized by law. 88-20 (b) The clearinghouse shall administer the work and family 88-21 policies fund. (V.A.C.S. Art. 5221g-1, Secs. 3(c), 4.) 88-22 Sec. 81.007. RULES. The commission by rule may adopt 88-23 procedures to implement functions under Sections 81.004, 81.005, 88-24 and 81.006(b). In adopting rules under this section, the 88-25 commission shall consider the recommendations of the clearinghouse 88-26 staff. (V.A.C.S. Art. 5221g-1, Sec. 3(e).) 88-27 Sec. 81.008. GIFTS, GRANTS, AND DONATIONS. (a) The 89-1 clearinghouse may accept a gift or grant from a public or private 89-2 entity to fund any activity under this chapter. 89-3 (b) The commission may accept a donation of money, services, 89-4 or property only if the commission determines that the donation 89-5 furthers the lawful purposes and objectives of the commission under 89-6 this chapter and the donation is accepted in an open meeting by a 89-7 majority of the voting members of the commission. The donation 89-8 must be reported in the public records of the commission with the 89-9 name of the donor and the purpose of the donation. (V.A.C.S. Art. 89-10 5221g-1, Sec. 5, as added Acts 72nd Leg., R.S., Ch. 651, 1991, and 89-11 Sec. 5, as added Acts 72nd Leg., R.S., Ch. 27, 1991.) 89-12 (Chapters 82-100 reserved for expansion) 89-13 TITLE 3. EMPLOYER-EMPLOYEE RELATIONS 89-14 CHAPTER 101. LABOR ORGANIZATIONS 89-15 SUBCHAPTER A. RIGHTS OF WORKING PERSONS 89-16 Sec. 101.001. RIGHT TO ORGANIZE 89-17 Sec. 101.002. RIGHT TO INFLUENCE ANOTHER REGARDING 89-18 EMPLOYMENT 89-19 Sec. 101.003. RIGHT TO BARGAIN 89-20 Sec. 101.004. CONTRACT FOR WITHHOLDING UNION DUES FROM 89-21 EMPLOYEE'S COMPENSATION VOID 89-22 WITHOUT EMPLOYEE'S CONSENT 89-23 (Sections 101.005-101.050 reserved for expansion) 89-24 SUBCHAPTER B. RIGHT TO WORK 89-25 Sec. 101.051. DEFINITION 89-26 Sec. 101.052. DENIAL OF EMPLOYMENT BASED ON LABOR 89-27 UNION MEMBERSHIP PROHIBITED 90-1 Sec. 101.053. CONTRACT REQUIRING OR PROHIBITING LABOR UNION 90-2 MEMBERSHIP VOID 90-3 (Sections 101.054-101.100 reserved for expansion) 90-4 SUBCHAPTER C. REGULATION OF LABOR UNIONS 90-5 Sec. 101.101. DEFINITIONS 90-6 Sec. 101.102. LEGISLATIVE FINDINGS; POLICY 90-7 Sec. 101.103. LIBERAL CONSTRUCTION 90-8 Sec. 101.104. METHOD OF ELECTION OF OFFICERS, AGENTS, 90-9 ORGANIZERS, AND REPRESENTATIVES 90-10 Sec. 101.105. ANNUAL ELECTION OF OFFICERS, AGENTS, ORGANIZERS, 90-11 AND REPRESENTATIVES 90-12 Sec. 101.106. NOTICE OF ELECTION 90-13 Sec. 101.107. RESULTS OF ELECTION 90-14 Sec. 101.108. CERTAIN UNIONS EXCEPTED 90-15 Sec. 101.109. CERTAIN PERSONS PROHIBITED FROM HOLDING 90-16 OFFICE 90-17 Sec. 101.110. LABOR ORGANIZERS; ORGANIZER'S CARD 90-18 Sec. 101.111. FEE FOR PRIVILEGE TO WORK PROHIBITED 90-19 Sec. 101.112. EXCESSIVE FEES PROHIBITED 90-20 Sec. 101.113. ADVANCE FEES 90-21 Sec. 101.114. FEE RECEIPT REQUIRED 90-22 Sec. 101.115. CONSTRUCTION OF FEE RESTRICTIONS 90-23 Sec. 101.116. MEMBER IN ARMED FORCES 90-24 Sec. 101.117. REASONABLE TIME FOR DECISION ON MEMBERSHIP 90-25 REQUIRED 90-26 Sec. 101.118. EXPULSION OF MEMBER 90-27 Sec. 101.119. RECORDS 91-1 Sec. 101.120. REPORTS 91-2 Sec. 101.121. CIVIL PENALTY 91-3 Sec. 101.122. ENFORCEMENT BY CIVIL PROCESS 91-4 Sec. 101.123. OFFENSE; PENALTY 91-5 Sec. 101.124. ENFORCEMENT OFFICERS 91-6 (Sections 101.125-101.150 reserved for expansion) 91-7 SUBCHAPTER D. PICKETING 91-8 Sec. 101.151. DEFINITION 91-9 Sec. 101.152. MASS PICKETING PROHIBITED 91-10 Sec. 101.153. USE OF INSULTING, THREATENING, OR OBSCENE 91-11 LANGUAGE PROHIBITED 91-12 Sec. 101.154. PICKETING INTENDED TO SECURE BREACH OF LABOR 91-13 AGREEMENT PROHIBITED 91-14 Sec. 101.155. DECLARATION OR PUBLICATION OF CONTINUATION OF 91-15 ENJOINED PICKETING PROHIBITED 91-16 Sec. 101.156. OFFENSE; PENALTY 91-17 (Sections 101.157-101.200 reserved for expansion) 91-18 SUBCHAPTER E. SECONDARY PICKETING 91-19 Sec. 101.201. SECONDARY PICKETING PROHIBITED 91-20 Sec. 101.202. OFFENSE; PENALTY 91-21 Sec. 101.203. CIVIL LIABILITY 91-22 Sec. 101.204. ENFORCEMENT 91-23 Sec. 101.205. VENUE 91-24 (Sections 101.206-101.250 reserved for expansion) 91-25 SUBCHAPTER F. LIABILITY OF LABOR ORGANIZATION FOR DAMAGES 91-26 Sec. 101.251. DEFINITIONS 91-27 Sec. 101.252. LIABILITY OF LABOR ORGANIZATION 92-1 CHAPTER 101. LABOR ORGANIZATIONS 92-2 SUBCHAPTER A. RIGHTS OF WORKING PERSONS 92-3 Sec. 101.001. RIGHT TO ORGANIZE. All persons engaged in any 92-4 kind of labor may associate and form trade unions and other 92-5 organizations to protect themselves in their personal labor in 92-6 their respective employment. (V.A.C.S. Art. 5152.) 92-7 Sec. 101.002. RIGHT TO INFLUENCE ANOTHER REGARDING 92-8 EMPLOYMENT. (a) A person by peaceful and lawful means may induce 92-9 or attempt to induce another to: 92-10 (1) enter or refuse to enter a particular employment; 92-11 or 92-12 (2) quit a particular employment in which the other 92-13 person is then engaged. 92-14 (b) A member of a trade union or other organization may not 92-15 enter the premises of another without the consent of the owner of 92-16 the premises. 92-17 (c) This section does not apply to an association formed, an 92-18 act taken, or an agreement made: 92-19 (1) to limit the production, transportation, use, or 92-20 consumption of labor's products; or 92-21 (2) that creates a trust or conspiracy in restraint of 92-22 trade under the laws of this state. 92-23 (d) Subsection (c) does not interfere with the terms of a 92-24 private contract between an employer and an employee with regard to 92-25 the time of service or other stipulations. 92-26 (e) Subsection (c) may not be construed as repealing or 92-27 affecting a statute on trusts, conspiracies against trade, pools, 93-1 or monopolies. (V.A.C.S. Arts. 5153, 5154.) 93-2 Sec. 101.003. RIGHT TO BARGAIN. A person's inherent right 93-3 to work and to bargain freely with the person's employer, 93-4 individually or collectively, for terms of the person's employment 93-5 may not be denied or infringed by law or by any organization. 93-6 (V.A.C.S. Art. 5207a, Sec. 1.) 93-7 Sec. 101.004. CONTRACT FOR WITHHOLDING UNION DUES FROM 93-8 EMPLOYEE'S COMPENSATION VOID WITHOUT EMPLOYEE'S CONSENT. A 93-9 contract that permits or requires the retention of part of an 93-10 employee's compensation to pay dues or assessments on the 93-11 employee's part to a labor union is void unless the employee 93-12 delivers to the employer the employee's written consent to the 93-13 retention of those sums. (V.A.C.S. Art. 5154e (part).) 93-14 (Sections 101.005-101.050 reserved for expansion) 93-15 SUBCHAPTER B. RIGHT TO WORK 93-16 Sec. 101.051. DEFINITION. In this subchapter, "labor union" 93-17 means an incorporated or unincorporated association, group, union, 93-18 lodge, local, branch, or subordinate organization of a union of 93-19 working persons organized and existing to protect those persons and 93-20 to improve their working conditions, wages, or employment 93-21 relationships, but does not include an organization not commonly 93-22 regarded as a labor union. (V.A.C.S. Art. 5207a, Sec. 4.) 93-23 Sec. 101.052. DENIAL OF EMPLOYMENT BASED ON LABOR UNION 93-24 MEMBERSHIP PROHIBITED. A person may not be denied employment based 93-25 on membership or nonmembership in a labor union. (V.A.C.S. Art. 93-26 5207a, Sec. 2.) 93-27 Sec. 101.053. CONTRACT REQUIRING OR PROHIBITING LABOR UNION 94-1 MEMBERSHIP VOID. A contract is void if it requires that, to work 94-2 for an employer, employees or applicants for employment: 94-3 (1) must be or may not be members of a labor union; or 94-4 (2) must remain or may not remain members of a labor 94-5 union. (V.A.C.S. Art. 5207a, Sec. 3 (part).) 94-6 (Sections 101.054-101.100 reserved for expansion) 94-7 SUBCHAPTER C. REGULATION OF LABOR UNIONS 94-8 Sec. 101.101. DEFINITIONS. In this subchapter: 94-9 (1) "Enforcement officer" means the attorney general, 94-10 district attorney, or county attorney. 94-11 (2) "Labor organizer" means a person who for a 94-12 financial consideration solicits membership in a labor union or 94-13 members for a labor union. 94-14 (3) "Labor union" means an incorporated or 94-15 unincorporated association, group, union, lodge, local, branch, or 94-16 subordinate organization of a union of working persons organized 94-17 and existing to protect those persons and to improve their working 94-18 conditions, wages, or employment relationships, but does not 94-19 include an organization not commonly regarded as a labor union. 94-20 (V.A.C.S. Art. 5154a, Sec. 2 (part).) 94-21 Sec. 101.102. LEGISLATIVE FINDINGS; POLICY. (a) The 94-22 legislature finds that because the activities of labor unions 94-23 affect the economic conditions of the country and the state by 94-24 entering into almost all business and industrial enterprises, labor 94-25 unions affect the public interest and are charged with a public 94-26 use. 94-27 (b) Workers must be protected without regard to whether they 95-1 are unionized. The right to work is the right to live. 95-2 (c) The policy of this state, in the exercise of its 95-3 sovereign constitutional police power, is to regulate the 95-4 activities and affairs of labor unions and officers, agents, 95-5 organizers, and representatives of labor unions, as provided by 95-6 this subchapter. (V.A.C.S. Art. 5154a, Sec. 1.) 95-7 Sec. 101.103. LIBERAL CONSTRUCTION. (a) This subchapter 95-8 shall be liberally construed to: 95-9 (1) achieve the purposes provided by Section 101.102; 95-10 and 95-11 (2) protect the rights of working persons to work and 95-12 to organize for their mutual benefit in connection with their work. 95-13 (b) This subchapter may not be construed to deny the free 95-14 rights of assembling, bargaining, and petitioning, orally or in 95-15 writing, regarding a matter affecting labor or employment. 95-16 (V.A.C.S. Art. 5154a, Sec. 14.) 95-17 Sec. 101.104. METHOD OF ELECTION OF OFFICERS, AGENTS, 95-18 ORGANIZERS, AND REPRESENTATIVES. (a) An officer, agent, 95-19 organizer, or representative of a labor union must be elected by 95-20 secret ballot and by majority vote of the members present and 95-21 participating, except as provided by Subsections (b) and (c) and 95-22 Section 101.108. 95-23 (b) A labor union may require more than a majority vote for 95-24 the election of an officer, agent, organizer, or representative. 95-25 (c) A labor union may take a vote of the entire membership 95-26 for an officer, agent, organizer, or representative by mailed 95-27 ballots. (V.A.C.S. Art. 5154a, Sec. 4 (part).) 96-1 Sec. 101.105. ANNUAL ELECTION OF OFFICERS, AGENTS, 96-2 ORGANIZERS, AND REPRESENTATIVES. An election for labor union 96-3 officers, agents, organizers, and representatives must be held at 96-4 least once each year, except as provided by Section 101.108. 96-5 (V.A.C.S. Art. 5154a, Sec. 4 (part).) 96-6 Sec. 101.106. NOTICE OF ELECTION. Except as provided by 96-7 Section 101.108, a labor union shall give members at least seven 96-8 days' notice of an election under Section 101.105. The notice must 96-9 be given in the manner most convenient to the union by: 96-10 (1) written or printed notice mailed to the member's 96-11 last known address; 96-12 (2) posting notice in a place public to the 96-13 membership; or 96-14 (3) announcement at a regular stated meeting of the 96-15 union. (V.A.C.S. Art. 5154a, Sec. 4 (part).) 96-16 Sec. 101.107. RESULTS OF ELECTION. The results of an 96-17 election held under Section 101.105 shall be determined and 96-18 declared by the president and the secretary at the time in the 96-19 presence of the members or delegates participating, except as 96-20 provided by Section 101.108. (V.A.C.S. Art. 5154a, Sec. 4 (part).) 96-21 Sec. 101.108. CERTAIN UNIONS EXCEPTED. Sections 96-22 101.104-101.107 do not apply to a union that: 96-23 (1) under its constitution, bylaws, or other 96-24 organization rules, held its elections for officers and 96-25 representatives every three years or every four years, for the four 96-26 years ending August 10, 1943; and 96-27 (2) charged members an initiation fee of $10 or less, 97-1 for the 10 years ending August 10, 1943. (V.A.C.S. Art. 5154a, 97-2 Sec. 4 (part).) 97-3 Sec. 101.109. CERTAIN PERSONS PROHIBITED FROM HOLDING 97-4 OFFICE. (a) A person may not serve as a labor union officer or as 97-5 a labor organizer if the person: 97-6 (1) is an alien; or 97-7 (2) has been convicted of a felony. 97-8 (b) Subsection (a) does not apply to a person who has been 97-9 convicted of a felony and whose rights of citizenship have been 97-10 fully restored. (V.A.C.S. Art. 5154a, Sec. 4a.) 97-11 Sec. 101.110. LABOR ORGANIZERS; ORGANIZER'S CARD. (a) A 97-12 labor organizer operating in this state must apply in writing for 97-13 an organizer's card before soliciting members for the organizer's 97-14 organization. 97-15 (b) An application for an organizer's card must: 97-16 (1) be filed with the secretary of state by mail or in 97-17 person; 97-18 (2) state the applicant's full name and labor union 97-19 affiliations, if any; 97-20 (3) describe the applicant's credentials; 97-21 (4) be accompanied by a copy of the applicant's 97-22 credentials; and 97-23 (5) be signed by the applicant. 97-24 (c) On the filing of an application for an organizer's card, 97-25 the secretary of state shall issue the applicant a card containing: 97-26 (1) the applicant's name; 97-27 (2) the applicant's union affiliation; 98-1 (3) a space for the applicant's signature; 98-2 (4) the designation "labor organizer"; and 98-3 (5) the secretary of state's signature, dated and 98-4 attested by the secretary's seal of office. 98-5 (d) A labor organizer shall: 98-6 (1) carry the card issued under Subsection (c) 98-7 whenever the organizer is soliciting members; and 98-8 (2) exhibit the card on request of a person being 98-9 solicited for membership. (V.A.C.S. Art. 5154a, Sec. 5.) 98-10 Sec. 101.111. FEE FOR PRIVILEGE TO WORK PROHIBITED. (a) A 98-11 labor union, a labor organizer, or an officer, member, agent, or 98-12 representative of a labor union may not collect, receive, or 98-13 demand, directly or indirectly, a fee as a work permit or as a 98-14 condition for the privilege to work from a person who is not a 98-15 member of the union. 98-16 (b) Subsection (a) does not prevent the collection of an 98-17 initiation fee as provided by Section 101.113. (V.A.C.S. Art. 98-18 5154a, Secs. 8 (part), 8a.) 98-19 Sec. 101.112. EXCESSIVE FEES PROHIBITED. (a) A labor union 98-20 or an officer, agent, or member of a labor union may not charge or 98-21 receive initiation fees, dues, fines, or other assessments to 98-22 create a fund that exceeds the reasonable requirements of the union 98-23 in carrying out its lawful purposes or activities, if the fees, 98-24 dues, fines, or other assessments create an undue hardship on an 98-25 applicant for initiation to the union or on union members. 98-26 (b) Subsection (a) may not be construed to prevent dues or 98-27 other assessments: 99-1 (1) for a purpose that is beneficial to union members 99-2 according to established practice, including the maintenance or 99-3 investment of funds for those beneficial purposes; 99-4 (2) if the members who contribute share in or may 99-5 reasonably expect to share in the benefits, for: 99-6 (A) old age benefits; 99-7 (B) death and burial benefits; 99-8 (C) hospitalization, unemployment, health and 99-9 accident, retirement, or other forms of mutual insurance; 99-10 (D) legislative representation; 99-11 (E) a grievance committee; 99-12 (F) gifts, floral offerings, or other charitable 99-13 purposes; or 99-14 (G) any other legitimate purpose; or 99-15 (3) for placement in a fund to be used by the union in 99-16 paying its members while they are on strike, if: 99-17 (A) initiation fees are not placed in the fund; 99-18 and 99-19 (B) the fund remains under the members' control. 99-20 (c) This section shall be liberally construed to prevent 99-21 excessive initiation fees. (V.A.C.S. Art. 5154a, Sec. 7.) 99-22 Sec. 101.113. ADVANCE FEES. (a) On payment in full by an 99-23 applicant for labor union membership of all initiation fees or dues 99-24 regularly assessed by the union, the union shall: 99-25 (1) elect the applicant to membership; or 99-26 (2) immediately return in full the money paid by the 99-27 applicant. 100-1 (b) On election of an applicant to labor union membership, 100-2 advance fees paid by the applicant may be used by the union for the 100-3 purposes for which the fees were advanced. 100-4 (c) A labor union or an officer, agent, or member of a labor 100-5 union shall collect all fees in good faith. A labor union may not 100-6 elect a person to membership merely to obtain the person's 100-7 initiation fee. 100-8 (d) A labor union may not collect an initiation fee from a 100-9 member and then discharge or suspend the member, or cause the 100-10 member's employer to discharge the member, without reasonable and 100-11 just cause. 100-12 (e) A labor union that violates Subsection (d) is subject to 100-13 the civil penalty provided by Section 101.121. (V.A.C.S. Art. 100-14 5154a, Sec. 8 (part).) 100-15 Sec. 101.114. FEE RECEIPT REQUIRED. A labor organizer or an 100-16 officer, agent, or member of a labor union may not collect a fee, 100-17 dues, or other sum in connection with membership in a labor union 100-18 from a person without giving the person at that time a receipt 100-19 that: 100-20 (1) is signed by the labor organizer, officer, agent, 100-21 or member; and 100-22 (2) states that the sum of money received is to be: 100-23 (A) delivered to the labor union; and 100-24 (B) held intact until the person has been 100-25 elected and has become a bona fide voting member of the union. 100-26 (V.A.C.S. Art. 5154a, Sec. 8 (part).) 100-27 Sec. 101.115. CONSTRUCTION OF FEE RESTRICTIONS. Sections 101-1 101.111, 101.113, and 101.114 may not be construed as preventing 101-2 any type of bargaining agreement or limiting the bargaining power 101-3 of a labor union. (V.A.C.S. Art. 5154a, Sec. 8 (part).) 101-4 Sec. 101.116. MEMBER IN ARMED FORCES. A union member who, 101-5 because of service with the United States armed forces, has been 101-6 unable to pay any dues or assessment levied by a union to which the 101-7 member belonged may not be required to make the back payments as a 101-8 condition to reinstatement in good standing as a member. (V.A.C.S. 101-9 Art. 5154a, Sec. 10a.) 101-10 Sec. 101.117. REASONABLE TIME FOR DECISION ON MEMBERSHIP 101-11 REQUIRED. A labor union may not refuse to give a person desiring 101-12 membership in the union a reasonable time after obtaining the 101-13 promise of employment in which to decide whether to join the union 101-14 as a condition of employment. (V.A.C.S. Art. 5154a, Sec. 10 101-15 (part).) 101-16 Sec. 101.118. EXPULSION OF MEMBER. (a) A labor union may 101-17 not expel a union member without: 101-18 (1) good cause; and 101-19 (2) a fair and public hearing by and within the 101-20 organization, after due notice and an opportunity to be heard on 101-21 the specific charges alleged. 101-22 (b) On the petition of a member expelled from a labor 101-23 organization, a court of competent jurisdiction shall order the 101-24 reinstatement of the member if the member was expelled without good 101-25 cause. (V.A.C.S. Art. 5154a, Sec. 10 (part).) 101-26 Sec. 101.119. RECORDS. (a) Each labor union in this state 101-27 shall keep accurate books of accounts that: 102-1 (1) itemize each receipt from any source; 102-2 (2) itemize each expenditure for any purpose; and 102-3 (3) state the source of each receipt and the purpose 102-4 of each expenditure. 102-5 (b) A member of a labor union is entitled to inspect the 102-6 books, records, and accounts of the union at any reasonable time. 102-7 (c) The attorney general, or, subject to the attorney 102-8 general's approval, a district attorney or county attorney, is 102-9 entitled to inspect on demand the books, records, and accounts of a 102-10 labor union at any reasonable time. 102-11 (d) The books, records, and accounts of a labor union are 102-12 open to grand juries and judicial and quasi-judicial inquiries in 102-13 legal proceedings. (V.A.C.S. Art. 5154a, Sec. 9.) 102-14 Sec. 101.120. REPORTS. A labor union required to file 102-15 reports with the United States Secretary of Labor under Section 102-16 201, Labor-Management Reporting and Disclosure Act of 1959 (29 102-17 U.S.C. Section 431) or a successor statute shall file a copy of 102-18 each report with the secretary of state not later than the 30th day 102-19 after the date the report was filed with the secretary of labor. 102-20 (V.A.C.S. Art. 5154a, Sec. 3.) 102-21 Sec. 101.121. CIVIL PENALTY. A labor union that violates a 102-22 provision of this subchapter is liable for a civil penalty not to 102-23 exceed $1,000 for each violation. The civil penalty may be 102-24 recovered in the name of the state, acting through an enforcement 102-25 officer, in a court of competent jurisdiction. (V.A.C.S. Art. 102-26 5154a, Sec. 11 (part).) 102-27 Sec. 101.122. ENFORCEMENT BY CIVIL PROCESS. (a) A district 103-1 court has jurisdiction, on the application of the state acting 103-2 through an enforcement officer, to issue a restraining order, a 103-3 temporary or permanent injunction, or any other writ or process 103-4 appropriate to enforce this subchapter. 103-5 (b) A proceeding under Subsection (a) shall be instituted, 103-6 prosecuted, and tried in the same manner as another civil case of a 103-7 similar nature in the district court. (V.A.C.S. Art. 5154a, Sec. 103-8 12.) 103-9 Sec. 101.123. OFFENSE; PENALTY. (a) A labor union officer 103-10 or a labor organizer commits an offense if the person violates a 103-11 provision of this subchapter. 103-12 (b) An offense under this section is a misdemeanor 103-13 punishable by: 103-14 (1) a fine of not more than $500; 103-15 (2) confinement in the county jail for not more than 103-16 60 days; or 103-17 (3) both the fine and confinement. (V.A.C.S. Art. 103-18 5154a, Sec. 11 (part).) 103-19 Sec. 101.124. ENFORCEMENT OFFICERS. The attorney general, 103-20 and each district attorney and county attorney, within the 103-21 attorney's respective jurisdiction, shall: 103-22 (1) prosecute all criminal proceedings under this 103-23 subchapter; and 103-24 (2) institute and maintain all civil proceedings under 103-25 this subchapter. (V.A.C.S. Art. 5154a, Sec. 13.) 103-26 (Sections 101.125-101.150 reserved for expansion) 103-27 SUBCHAPTER D. PICKETING 104-1 Sec. 101.151. DEFINITION. In this subchapter, "picketing" 104-2 includes the stationing of a person for an organization to: 104-3 (1) induce anyone not to enter the premises being 104-4 picketed; 104-5 (2) observe the premises being picketed to ascertain 104-6 who enters or patronizes the premises; or 104-7 (3) follow employees or patrons of the premises being 104-8 picketed to or from those premises to observe them or to attempt to 104-9 dissuade them from entering or patronizing the premises. (V.A.C.S. 104-10 Art. 5154d, Sec. 1 (part).) 104-11 Sec. 101.152. MASS PICKETING PROHIBITED. (a) A person may 104-12 not engage in any form of picketing activity in which a picket 104-13 constitutes any character of obstacle to the free ingress to and 104-14 egress from an entrance to any premises, either by obstructing the 104-15 free ingress and egress with the person's body or by placing a 104-16 vehicle or other physical obstruction. 104-17 (b) In this section, "picket" includes a person: 104-18 (1) stationed by or acting for an organization to: 104-19 (A) induce anyone not to enter the premises 104-20 being picketed; or 104-21 (B) observe the premises being picketed to 104-22 ascertain who enters or patronizes the premises; or 104-23 (2) who follows employees or patrons of the premises 104-24 being picketed to or from those premises to observe them or to 104-25 attempt to dissuade them from entering or patronizing the premises. 104-26 (V.A.C.S. Art. 5154d, Sec. 1 (part).) 104-27 Sec. 101.153. USE OF INSULTING, THREATENING, OR OBSCENE 105-1 LANGUAGE PROHIBITED. A person may not, by use of insulting, 105-2 threatening, or obscene language, interfere with or intimidate or 105-3 seek to interfere with or intimidate another: 105-4 (1) in the exercise of the other person's lawful right 105-5 to work or to enter on the performance of a lawful vocation; or 105-6 (2) from freely entering or leaving any premises. 105-7 (V.A.C.S. Art. 5154d, Sec. 2.) 105-8 Sec. 101.154. PICKETING INTENDED TO SECURE BREACH OF LABOR 105-9 AGREEMENT PROHIBITED. A person may not engage in picketing the 105-10 purpose of which, directly or indirectly, is to secure the 105-11 disregard or breach of a valid existing labor agreement arrived at 105-12 between an employer and the representatives: 105-13 (1) designated by the employees for the purpose of 105-14 collective bargaining; or 105-15 (2) certified as the bargaining unit under the 105-16 National Labor Relations Act (29 U.S.C. Section 151 et seq.). 105-17 (V.A.C.S. Art. 5154d, Sec. 4.) 105-18 Sec. 101.155. DECLARATION OR PUBLICATION OF CONTINUATION OF 105-19 ENJOINED PICKETING PROHIBITED. A person may not declare or 105-20 publicize the continued existence of actual or constructive 105-21 picketing at a point or directed against a premises after a court 105-22 of competent jurisdiction has enjoined the continuation of that 105-23 picketing at that point or premises. (V.A.C.S. Art. 5154d, Sec. 105-24 4a.) 105-25 Sec. 101.156. OFFENSE; PENALTY. (a) A person commits an 105-26 offense if the person violates Section 101.152, 101.153, 101.154, 105-27 or 101.155. Each separate act of violation constitutes a separate 106-1 offense. 106-2 (b) An offense under this section is a misdemeanor 106-3 punishable by: 106-4 (1) a fine of not less than $25 nor more than $500; 106-5 (2) confinement in jail for not more than 90 days; or 106-6 (3) both the fine and confinement. (V.A.C.S. 106-7 Art. 5154d, Sec. 5.) 106-8 (Sections 101.157-101.200 reserved for expansion) 106-9 SUBCHAPTER E. SECONDARY PICKETING 106-10 Sec. 101.201. SECONDARY PICKETING PROHIBITED. (a) A person 106-11 may not establish, call, participate in, or aid picketing at or 106-12 near the premises of an employer with whom a labor dispute does not 106-13 exist. 106-14 (b) In this section: 106-15 (1) "Employee" includes any person working for another 106-16 for hire in this state, but does not include an independent 106-17 contractor. 106-18 (2) "Employer" means any person who engages the 106-19 services of an employee. 106-20 (3) "Labor dispute" means a controversy concerning 106-21 wages, hours, or conditions of employment between an employer and 106-22 employees. A controversy is not a labor dispute if the employees 106-23 do not have a real and substantial economic interest in the work 106-24 performed for the employer. 106-25 (4) "Picket" includes a person: 106-26 (A) stationed by or acting in behalf of an 106-27 organization to: 107-1 (i) induce anyone not to enter the 107-2 premises being picketed; 107-3 (ii) apprise the public by signs or other 107-4 means of the existence of a labor dispute at or near the premises 107-5 being picketed; or 107-6 (iii) observe the premises being picketed 107-7 to ascertain who enters or patronizes the premises; or 107-8 (B) who follows employees or patrons of the 107-9 premises being picketed to or from those premises to observe them 107-10 or to attempt to dissuade them from entering or patronizing the 107-11 premises. (V.A.C.S. Art. 5154f, Secs. 1 (part), 2 (part).) 107-12 Sec. 101.202. OFFENSE; PENALTY. (a) A person commits an 107-13 offense if the person violates any provision of this subchapter. 107-14 (b) An offense under this section is a misdemeanor 107-15 punishable by: 107-16 (1) a fine of not more than $500; 107-17 (2) confinement in the county jail for not more than 107-18 six months; or 107-19 (3) both the fine and confinement. (V.A.C.S. 107-20 Art. 5154f, Sec. 3.) 107-21 Sec. 101.203. CIVIL LIABILITY. (a) A person who violates 107-22 any provision of this subchapter is liable to a person damaged by 107-23 the violation for the damages resulting from the violation. 107-24 (b) A person damaged by a violation of this subchapter may 107-25 maintain an action to redress the damage and may obtain injunctive 107-26 relief. 107-27 (c) An association or labor union that represents or 108-1 purports to represent a person who violates any provision of this 108-2 subchapter is jointly and severally liable with the person for the 108-3 damages resulting from the violation. 108-4 (d) In this section, "labor union" means any incorporated or 108-5 unincorporated association, group, union, national or local, 108-6 branch, or subordinate organization of a union of working persons 108-7 organized and existing in part to protect those persons and to 108-8 improve their working conditions, wages, or employment 108-9 relationships and includes the local, state, national, and 108-10 international affiliates of those organizations. (V.A.C.S. 108-11 Art. 5154f, Secs. 2 (part), 4.) 108-12 Sec. 101.204. ENFORCEMENT. The state, acting through the 108-13 attorney general or a district attorney or county attorney, may 108-14 institute a suit in district court to enjoin a person from 108-15 violating this subchapter. (V.A.C.S. Art. 5154f, Sec. 5.) 108-16 Sec. 101.205. VENUE. Venue for a suit or cause of action 108-17 arising under this subchapter is in: 108-18 (1) the county in which the violation is alleged to 108-19 have occurred; 108-20 (2) the county in which the defendant resides; or 108-21 (3) if there are two or more defendants, a county in 108-22 which any defendant resides. (V.A.C.S. Art. 5154f, Sec. 6.) 108-23 (Sections 101.206-101.250 reserved for expansion) 108-24 SUBCHAPTER F. LIABILITY OF LABOR ORGANIZATION FOR DAMAGES 108-25 Sec. 101.251. DEFINITIONS. In this subchapter: 108-26 (1) "Labor organization" means any organization in 108-27 which employees participate and that exists in whole or in part to 109-1 deal with one or more employers concerning grievances, labor 109-2 disputes, wages, hours of employment, or working conditions. 109-3 (2) "Picketing" includes the stationing of a person 109-4 for an organization to: 109-5 (A) induce anyone not to enter the premises 109-6 being picketed; 109-7 (B) apprise the public by signs or other means 109-8 of the existence of a dispute; 109-9 (C) observe the premises being picketed to 109-10 ascertain who enters or patronizes the premises; or 109-11 (D) follow employees or patrons of the premises 109-12 being picketed to or from those premises to observe them or to 109-13 attempt to dissuade them from entering or patronizing the premises. 109-14 (V.A.C.S. Art. 5154b, Sec. 2.) 109-15 Sec. 101.252. LIABILITY OF LABOR ORGANIZATION. A labor 109-16 organization whose members picket or strike against a person is 109-17 liable for damages for a loss resulting to the person because of 109-18 the picketing or strike if a court of competent jurisdiction holds 109-19 that the picketing or strike is a breach of contract. (V.A.C.S. 109-20 Art. 5154b, Sec. 1.) 109-21 CHAPTER 102. LABOR ARBITRATION 109-22 SUBCHAPTER A. GENERAL PROVISIONS 109-23 Sec. 102.001. DEFINITION 109-24 Sec. 102.002. DISPUTE RESOLUTION THROUGH ARBITRATION 109-25 (Sections 102.003-102.010 reserved for expansion) 109-26 SUBCHAPTER B. SELECTION OF BOARD AND OFFICERS 109-27 Sec. 102.011. NUMBER OF BOARD MEMBERS 110-1 Sec. 102.012. EMPLOYER REPRESENTATION ON BOARD 110-2 Sec. 102.013. EMPLOYEE REPRESENTATION ON BOARD 110-3 Sec. 102.014. CHAIRMAN 110-4 Sec. 102.015. BOARD SECRETARY 110-5 Sec. 102.016. ARBITRATOR'S CONSENT TO ACT 110-6 (Sections 102.017-102.020 reserved for expansion) 110-7 SUBCHAPTER C. POWERS AND DUTIES OF BOARD AND OFFICERS 110-8 Sec. 102.021. POWERS AND DUTIES OF BOARD 110-9 Sec. 102.022. CHAIRMAN'S DUTIES 110-10 Sec. 102.023. ISSUANCE OF SUBPOENAS 110-11 (Sections 102.024-102.030 reserved for expansion) 110-12 SUBCHAPTER D. PARTY CONDUCT 110-13 Sec. 102.031. EMPLOYEE TERMINATION RESTRICTED 110-14 Sec. 102.032. PROHIBITIONS AGAINST STRIKES OR BOYCOTTS 110-15 (Sections 102.033-102.040 reserved for expansion) 110-16 SUBCHAPTER E. FILINGS WITH BOARD; HEARINGS 110-17 Sec. 102.041. WRITTEN SUBMISSION OF DISPUTE OR GRIEVANCE 110-18 Sec. 102.042. HEARING; NOTICE 110-19 (Sections 102.043-102.050 reserved for expansion) 110-20 SUBCHAPTER F. COURT FILINGS AND ORDERS 110-21 Sec. 102.051. ARBITRATION PETITION 110-22 Sec. 102.052. COURT ORDER REQUIRED 110-23 Sec. 102.053. FILING OF PETITION AND ORDER 110-24 (Sections 102.054-102.060 reserved for expansion) 110-25 SUBCHAPTER G. EXPENSES AND FEES 110-26 Sec. 102.061. SURETY BOND 110-27 Sec. 102.062. BOARD MEMBER EXPENSES 111-1 Sec. 102.063. REIMBURSEMENT OF WITNESS 111-2 Sec. 102.064. FEES 111-3 (Sections 102.065-102.070 reserved for expansion) 111-4 SUBCHAPTER H. AWARD AND APPEALS 111-5 Sec. 102.071. TERMINATION OF BOARD'S POWER 111-6 Sec. 102.072. ADDITIONAL DISPUTE OR GRIEVANCE 111-7 Sec. 102.073. COPIES OF AWARD; ISSUANCE 111-8 Sec. 102.074. JUDGMENT ON AWARD; EFFECTIVE DATE; EXCEPTION 111-9 Sec. 102.075. APPEALS 111-10 CHAPTER 102. LABOR ARBITRATION 111-11 SUBCHAPTER A. GENERAL PROVISIONS 111-12 Sec. 102.001. DEFINITION. In this chapter, "board" means an 111-13 arbitration board appointed under this chapter. (New.) 111-14 Sec. 102.002. DISPUTE RESOLUTION THROUGH ARBITRATION. (a) 111-15 An employer and employees may submit a dispute or grievance 111-16 resulting from the employer's and employees' work relationship to a 111-17 board for a hearing and determination. 111-18 (b) An arbitration may not be conducted under this chapter 111-19 without the consent of all parties involved in the dispute or 111-20 grievance. (V.A.C.S. Art. 239 (part).) 111-21 (Sections 102.003-102.010 reserved for expansion) 111-22 SUBCHAPTER B. SELECTION OF BOARD AND OFFICERS 111-23 Sec. 102.011. NUMBER OF BOARD MEMBERS. A board established 111-24 under this chapter must be composed of five members. (V.A.C.S. 111-25 Art. 239 (part).) 111-26 Sec. 102.012. EMPLOYER REPRESENTATION ON BOARD. The 111-27 employer may designate two arbitrators to serve on the board. 112-1 (V.A.C.S. Art. 239 (part).) 112-2 Sec. 102.013. EMPLOYEE REPRESENTATION ON BOARD. (a) In a 112-3 dispute or grievance in which the affected employees are members in 112-4 good standing of a labor organization: 112-5 (1) if the organization is represented by a delegate 112-6 in a central body, the central body may designate two arbitrators 112-7 to serve on the board; and 112-8 (2) if the organization is not represented by a 112-9 delegate in a central body, the organization may designate two 112-10 arbitrators to serve on the board. 112-11 (b) In a dispute or grievance in which all of the affected 112-12 employees are not represented by a labor organization, the labor 112-13 organization in concurrent action with a majority of those 112-14 employees not represented by a labor organization may designate two 112-15 arbitrators to serve on the board. 112-16 (c) In a dispute or grievance that concerns two or more 112-17 classes or grades of employees who belong to different labor 112-18 organizations, the labor organizations in concurrent action may 112-19 designate two arbitrators to serve on the board. 112-20 (d) If the employees concerned in the dispute or grievance 112-21 are not members of a labor organization, those employees shall call 112-22 a meeting to elect by majority vote two arbitrators to serve on the 112-23 board. (V.A.C.S. Arts. 239 (part), 241.) 112-24 Sec. 102.014. CHAIRMAN. (a) The four arbitrators selected 112-25 under Sections 102.012 and 102.013 shall designate a fifth 112-26 arbitrator who serves as the chairman of the board. 112-27 (b) If an agreement as to a fifth arbitrator cannot be 113-1 reached under Subsection (a), on notice of any arbitrator a 113-2 district judge of the district that has jurisdiction over the 113-3 dispute or grievance shall appoint the fifth arbitrator, who serves 113-4 as the chairman of the board. (V.A.C.S. Art. 239 (part).) 113-5 Sec. 102.015. BOARD SECRETARY. The board shall select one 113-6 member to act as secretary for the board. (V.A.C.S. Art. 243 113-7 (part).) 113-8 Sec. 102.016. ARBITRATOR'S CONSENT TO ACT. (a) An 113-9 arbitrator selected under this chapter must: 113-10 (1) sign a form consenting to serve as an arbitrator; 113-11 and 113-12 (2) take and sign an oath administered by an officer 113-13 authorized to administer oaths to faithfully and impartially 113-14 discharge the duties of an arbitrator. 113-15 (b) A written copy of the consent form and oath shall be 113-16 filed with the district clerk for the county in which the 113-17 arbitration is conducted. (V.A.C.S. Art. 243 (part).) 113-18 (Sections 102.017-102.020 reserved for expansion) 113-19 SUBCHAPTER C. POWERS AND DUTIES OF BOARD AND OFFICERS 113-20 Sec. 102.021. POWERS AND DUTIES OF BOARD. (a) A board may 113-21 adopt and enforce rules to be followed at board hearings. 113-22 (b) The board may set a schedule of sessions and 113-23 adjournments. 113-24 (c) The board shall hear and examine witnesses who are 113-25 brought before the board and consider other proof given that is 113-26 relevant to the matter in dispute. (V.A.C.S. Art. 244 (part).) 113-27 Sec. 102.022. CHAIRMAN'S DUTIES. (a) The chairman of the 114-1 board may: 114-2 (1) administer oaths; and 114-3 (2) issue subpoenas for the production of books and 114-4 papers and the attendance of witnesses. 114-5 (b) The chairman of the board may exercise the powers 114-6 granted under this section to the same extent as a judge of a court 114-7 of record in this state. (V.A.C.S. Art. 244 (part).) 114-8 Sec. 102.023. ISSUANCE OF SUBPOENAS. (a) The board's 114-9 secretary shall sign each subpoena issued under this chapter. 114-10 (b) The board may authorize a person of full age to serve a 114-11 subpoena issued under this chapter. (V.A.C.S. Art. 247 (part).) 114-12 (Sections 102.024-102.030 reserved for expansion) 114-13 SUBCHAPTER D. PARTY CONDUCT 114-14 Sec. 102.031. EMPLOYEE TERMINATION RESTRICTED. During the 114-15 period that the arbitration is pending, an employer or receiver or 114-16 an agent of the employer may not discharge an employee who is a 114-17 party to the arbitration except for: 114-18 (1) the employee's inefficiency, violation of law, or 114-19 neglect of duty; or 114-20 (2) the employer's need for a work force reduction. 114-21 (V.A.C.S. Art. 246 (part).) 114-22 Sec. 102.032. PROHIBITIONS AGAINST STRIKES OR BOYCOTTS. (a) 114-23 During the period that arbitration is pending, a labor organization 114-24 that represents employees who are parties to the arbitration may 114-25 not order or aid employees in a strike or boycott against the 114-26 employer or receiver. 114-27 (b) Employees who are parties to the arbitration may not 115-1 engage in or aid a strike or boycott of the employer or receiver. 115-2 (V.A.C.S. Art. 246 (part).) 115-3 (Sections 102.033-102.040 reserved for expansion) 115-4 SUBCHAPTER E. FILINGS WITH BOARD; HEARINGS 115-5 Sec. 102.041. WRITTEN SUBMISSION OF DISPUTE OR GRIEVANCE. 115-6 (a) The question to be decided by the board must be submitted to 115-7 the board in writing, signed by: 115-8 (1) the employer or receiver; and 115-9 (2) the labor organization representing the employees 115-10 or the employee or any employee or employees to be affected by the 115-11 arbitration who do not belong to a labor organization. 115-12 (b) The submission must stipulate that: 115-13 (1) pending the arbitration, the status existing 115-14 before the dispute, grievance, or strike may not be changed; 115-15 (2) the arbitration award shall be filed with the 115-16 district clerk for the county in which the arbitration is 115-17 conducted; 115-18 (3) the arbitration award is final and may not be set 115-19 aside except for an error in law that is apparent on the record; 115-20 (4) the parties will faithfully execute the 115-21 arbitration award; 115-22 (5) the arbitration award may be enforced in a court 115-23 of equity; 115-24 (6) an employee dissatisfied with the arbitration 115-25 award may not end employment because of that dissatisfaction 115-26 without giving the employer 30 days' written notice of the 115-27 intention to end employment; 116-1 (7) the award continues in effect until the first 116-2 anniversary of the initial date of its implementation; and 116-3 (8) a new arbitration of the same subject matter 116-4 between the same parties may not be entered into during the one 116-5 year period provided for in Subdivision (7). (V.A.C.S. Art. 242.) 116-6 Sec. 102.042. HEARING; NOTICE. (a) The board shall conduct 116-7 a hearing not later than the 10th day after the agreement to 116-8 arbitrate is filed. 116-9 (b) Each party to the dispute is entitled to receive notice 116-10 of the time and place of the hearing. (V.A.C.S. Art. 243 (part).) 116-11 (Sections 102.043-102.050 reserved for expansion) 116-12 SUBCHAPTER F. COURT FILINGS AND ORDERS 116-13 Sec. 102.051. ARBITRATION PETITION. A board may submit a 116-14 written petition signed by a majority of the board to a district 116-15 judge in the county in which the dispute or grievance arose. The 116-16 petition must: 116-17 (1) show that the board was selected according to the 116-18 procedures set forth in this chapter; 116-19 (2) state the nature of the dispute or grievance that 116-20 is the subject matter of the arbitration; and 116-21 (3) request the judge to issue an order establishing 116-22 and approving the board. (V.A.C.S. Art. 240 (part).) 116-23 Sec. 102.052. COURT ORDER REQUIRED. On receipt of a 116-24 petition filed under Section 102.051, the judge shall issue an 116-25 order establishing an arbitration board. The order shall refer the 116-26 matter in dispute to the board for a hearing and determination of 116-27 the matter in dispute. (V.A.C.S. Art. 240 (part).) 117-1 Sec. 102.053. FILING OF PETITION AND ORDER. The petition 117-2 and the subsequent order or a copy of the petition and order shall 117-3 be filed with the district clerk in the county in which the 117-4 arbitration is conducted. (V.A.C.S. Art. 240 (part).) 117-5 (Sections 102.054-102.060 reserved for expansion) 117-6 SUBCHAPTER G. EXPENSES AND FEES 117-7 Sec. 102.061. SURETY BOND. Before a board considers a 117-8 dispute or grievance, each party shall file a bond in an amount set 117-9 by the board and conditioned on the payment of all expenses 117-10 connected with the arbitration procedure. The bond must have two 117-11 or more good and sufficient sureties. (V.A.C.S. Art. 247 (part).) 117-12 Sec. 102.062. BOARD MEMBER EXPENSES. A member of the board 117-13 is entitled to receive: 117-14 (1) three dollars a day for each day of actual service 117-15 on the board not to exceed $30; and 117-16 (2) five cents a mile for each mile traveled to and 117-17 from the place where the board is in session. (V.A.C.S. Art. 247 117-18 (part).) 117-19 Sec. 102.063. REIMBURSEMENT OF WITNESS. A witness called by 117-20 the board is entitled to receive: 117-21 (1) 50 cents a day for each day's attendance; and 117-22 (2) five cents a mile for each mile traveled by the 117-23 shortest route to and from a board hearing where the witness' 117-24 attendance is required. (V.A.C.S. Art. 247 (part).) 117-25 Sec. 102.064. FEES. (a) The board may charge fees and 117-26 mileage paid under Sections 102.062 and 102.063 against either or 117-27 both parties. 118-1 (b) Fees and mileage charged against a party under this 118-2 section shall be included in the award. (V.A.C.S. Art. 247 118-3 (part).) 118-4 (Sections 102.065-102.070 reserved for expansion) 118-5 SUBCHAPTER H. AWARD AND APPEALS 118-6 Sec. 102.071. TERMINATION OF BOARD'S POWER. Except as 118-7 provided by Section 102.072, a board's power ends on the 118-8 determination of the grievance or dispute by the board. (V.A.C.S. 118-9 Art. 245 (part).) 118-10 Sec. 102.072. ADDITIONAL DISPUTE OR GRIEVANCE. (a) If, at 118-11 the time a board renders its determination, a similar grievance or 118-12 dispute exists between the same class of persons for which a board 118-13 may be created, those persons may submit the dispute or grievance 118-14 to the board. 118-15 (b) The board has the same power to act and determine a 118-16 dispute or grievance submitted under this section as the board 118-17 would have if it had been created to determine that dispute or 118-18 grievance. (V.A.C.S. Art. 245 (part).) 118-19 Sec. 102.073. COPIES OF AWARD; ISSUANCE. (a) The board 118-20 shall issue three copies of the arbitration award. 118-21 (b) The board shall: 118-22 (1) file one copy of the award with the district 118-23 clerk; 118-24 (2) issue one copy of the award to the employer or 118-25 receiver; and 118-26 (3) issue one copy of the award to the employees or 118-27 the employees' representative. (V.A.C.S. Art. 248 (part).) 119-1 Sec. 102.074. JUDGMENT ON AWARD; EFFECTIVE DATE; EXCEPTION. 119-2 (a) Judgment shall be entered on an award made under this chapter 119-3 and the award takes effect, unless a timely exception is filed, on 119-4 the 11th day after the date it is filed with the district clerk 119-5 under Section 102.073. 119-6 (b) A party may file an exception to an award for a matter 119-7 of law apparent on the record. The exception must be filed with 119-8 the court not later than the 10th day after the date on which the 119-9 award is filed with the district clerk under Section 102.073. 119-10 (c) If an exception is filed, judgment shall be entered on 119-11 the award and the award takes effect on the 11th day after the date 119-12 of the decision of the district court on the exception or on appeal 119-13 from the district court's decision under Section 102.075. 119-14 (V.A.C.S. Arts. 248 (part), 249 (part).) 119-15 Sec. 102.075. APPEALS. (a) Either party to an arbitration 119-16 case decided by a district court may file an appeal of the district 119-17 court's decision not later than the 10th day after the date on 119-18 which the judgment is entered. 119-19 (b) The decision of the court of appeals under this section 119-20 is final. The clerk of the court of appeals shall certify the 119-21 decision and the district court shall enter the judgment. 119-22 (c) If the court of appeals sustains the exception, it shall 119-23 set aside the award, but the parties may agree on a judgment to be 119-24 entered disposing of the dispute. A judgment on an agreement 119-25 entered into under this subsection has the same force and effect of 119-26 law as a judgment entered on an award by a board of arbitration. 119-27 (V.A.C.S. Art. 249 (part).) 120-1 (Chapters 103-200 reserved for expansion) 120-2 TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT 120-3 SUBTITLE A. TEXAS UNEMPLOYMENT COMPENSATION ACT 120-4 CHAPTER 201. UNEMPLOYMENT COMPENSATION ACT--GENERAL PROVISIONS 120-5 SUBCHAPTER A. SHORT TITLE; APPLICATION OF SUNSET ACT 120-6 Sec. 201.001. SHORT TITLE 120-7 Sec. 201.002. APPLICATION OF SUNSET ACT 120-8 (Sections 201.003-201.010 reserved for expansion) 120-9 SUBCHAPTER B. GENERAL DEFINITIONS 120-10 Sec. 201.011. GENERAL DEFINITIONS 120-11 Sec. 201.012. DEFINITION OF MISCONDUCT 120-12 (Sections 201.013-201.020 reserved for expansion) 120-13 SUBCHAPTER C. DEFINITION OF EMPLOYER 120-14 Sec. 201.021. GENERAL DEFINITION OF EMPLOYER 120-15 Sec. 201.022. EFFECT OF BUSINESS ACQUISITION 120-16 Sec. 201.023. TAX-EXEMPT NONPROFIT ORGANIZATION 120-17 Sec. 201.024. ELECTION TO BE EMPLOYER 120-18 Sec. 201.025. EMPLOYER UNDER FEDERAL LAW 120-19 Sec. 201.026. STATE; POLITICAL SUBDIVISION 120-20 Sec. 201.027. EMPLOYER OF DOMESTIC SERVICE WORKER 120-21 Sec. 201.028. EMPLOYER OF FARM AND RANCH LABORER 120-22 (Sections 201.029-201.040 reserved for expansion) 120-23 SUBCHAPTER D. DEFINITION OF EMPLOYMENT 120-24 Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT 120-25 Sec. 201.042. SERVICE OF DRIVER OR SALESMAN 120-26 Sec. 201.043. LOCATION OF SERVICE 120-27 Sec. 201.044. SERVICE UNDER RECIPROCAL AGREEMENT 121-1 Sec. 201.045. SERVICE ON VESSEL OR AIRCRAFT 121-2 Sec. 201.046. EMPLOYMENT TO ASSIST EMPLOYEE OR AGENT 121-3 Sec. 201.047. FARM AND RANCH LABOR AS EMPLOYMENT 121-4 (Sections 201.048-201.060 reserved for expansion) 121-5 SUBCHAPTER E. EXCEPTIONS TO EMPLOYMENT 121-6 Sec. 201.061. SERVICE ELIGIBLE UNDER ACT OF CONGRESS 121-7 Sec. 201.062. SERVICE UNDER ARRANGEMENT WITH AGENCY 121-8 Sec. 201.063. CERTAIN GOVERNMENT SERVICE 121-9 Sec. 201.064. DOMESTIC SERVICE 121-10 Sec. 201.065. SERVICE BY RELATIVE 121-11 Sec. 201.066. RELIGIOUS SERVICE 121-12 Sec. 201.067. REHABILITATIVE SERVICE; WORK RELIEF 121-13 Sec. 201.068. SERVICE IN HOSPITAL 121-14 Sec. 201.069. SERVICE OF STUDENT 121-15 Sec. 201.070. SERVICE AS PRODUCT DEMONSTRATOR; SALESMAN 121-16 Sec. 201.071. SERVICE AS INSURANCE AGENT 121-17 Sec. 201.072. SERVICE AS REAL ESTATE BROKER 121-18 Sec. 201.073. DELIVERY SERVICE; NEWSPAPER DELIVERY SERVICE 121-19 Sec. 201.074. SERVICE BY INMATE 121-20 Sec. 201.075. SERVICE ON FISHING VESSEL 121-21 Sec. 201.076. INCLUDED AND EXCLUDED SERVICE IN PAY PERIOD 121-22 (Sections 201.077-201.080 reserved for expansion) 121-23 SUBCHAPTER F. DEFINITION OF WAGES 121-24 Sec. 201.081. GENERAL DEFINITION OF WAGES 121-25 Sec. 201.082. EXCEPTIONS TO WAGES 121-26 (Sections 201.083-201.090 reserved for expansion) 121-27 SUBCHAPTER G. TOTAL AND PARTIAL UNEMPLOYMENT 122-1 Sec. 201.091. TOTAL AND PARTIAL UNEMPLOYMENT 122-2 (Sections 201.092-201.100 reserved for expansion) 122-3 SUBCHAPTER H. CONFORMITY WITH FEDERAL STATUTES 122-4 Sec. 201.101. CONFORMITY WITH FEDERAL STATUTES 122-5 CHAPTER 201. UNEMPLOYMENT COMPENSATION ACT--GENERAL PROVISIONS 122-6 SUBCHAPTER A. SHORT TITLE; APPLICATION OF SUNSET ACT 122-7 Sec. 201.001. SHORT TITLE. This subtitle may be cited as 122-8 the Texas Unemployment Compensation Act. 122-9 (V.A.C.S. Art. 5221b-22b.) 122-10 Sec. 201.002. APPLICATION OF SUNSET ACT. The Texas 122-11 Employment Commission is subject to Chapter 325, Government Code 122-12 (Texas Sunset Act). Unless continued in existence as provided by 122-13 that chapter, the commission is abolished September 1, 1999. 122-14 (V.A.C.S. Art. 5221b-8(i).) 122-15 (Sections 201.003-201.010 reserved for expansion) 122-16 SUBCHAPTER B. GENERAL DEFINITIONS 122-17 Sec. 201.011. GENERAL DEFINITIONS. In this subtitle: 122-18 (1) "Base period" means: 122-19 (A) the four consecutive completed calendar 122-20 quarters, prescribed by the commission, in the five consecutive 122-21 completed calendar quarters preceding the first day of an 122-22 individual's benefit year; or 122-23 (B) for an individual precluded because of a 122-24 medically verifiable injury or illness from working during a major 122-25 part of a calendar quarter of the period that would otherwise be 122-26 the individual's base period under Paragraph (A), the first four 122-27 calendar quarters of the five consecutive calendar quarters 123-1 preceding the calendar quarter in which the illness began or the 123-2 injury occurred if the individual files an initial claim for 123-3 benefits not later than 24 months after the date on which the 123-4 individual's injury or illness began or occurred. 123-5 (2) "Benefit" means the money payable under this 123-6 subtitle to an individual because of the individual's unemployment. 123-7 (3) "Benefit amount" means benefits an individual is 123-8 entitled to receive for one benefit period of total unemployment. 123-9 (4) "Benefit period" means the seven consecutive 123-10 calendar days ending at midnight on Saturday and is the period for 123-11 which entitlement to benefits is determined. 123-12 (5) "Benefit year" means the 52 consecutive calendar 123-13 weeks beginning with the week for which an individual files a valid 123-14 initial claim for benefits. 123-15 (6) "Calendar quarter" means a period of three 123-16 consecutive calendar months ending on: 123-17 (A) March 31, June 30, September 30, or December 123-18 31; or 123-19 (B) the dates prescribed by rule of the 123-20 commission. 123-21 (7) "Chargeback" means the benefits charged to an 123-22 employer's account under Section 204.021. 123-23 (8) "Commission" means the Texas Employment 123-24 Commission. 123-25 (9) "Compensation fund" means the unemployment 123-26 compensation fund. 123-27 (10) "Contribution" means a tax payment under this 124-1 subtitle to the compensation fund. 124-2 (11) "Employing unit" means a person who, after 124-3 January 1, 1936, has employed an individual to perform services for 124-4 the person in this state. 124-5 (12) "Employment office" means a free public 124-6 employment office operated by this state or maintained as a part of 124-7 a state-controlled system of public employment offices. The term 124-8 includes a branch office. 124-9 (13) "Initial claim" means a notice filed under 124-10 Section 208.001(a) to establish a benefit year by an individual who 124-11 does not have a benefit year in effect at the time the notice was 124-12 filed. 124-13 (14) "Institution of higher education" means: 124-14 (A) a college or university in this state; or 124-15 (B) a public or other nonprofit educational 124-16 institution that: 124-17 (i) admits as regular students only 124-18 individuals with a certificate of graduation or equivalent 124-19 credentials; 124-20 (ii) is legally authorized to provide an 124-21 educational program beyond high school; and 124-22 (iii) provides an educational program: 124-23 (a) for which the institution awards 124-24 a bachelor's or higher degree; 124-25 (b) that is acceptable for full 124-26 credit toward a bachelor's or higher degree; or 124-27 (c) that trains a student for the 125-1 gainful practice of a recognized occupation. 125-2 (15) "Reimbursement" means a payment made in 125-3 accordance with Chapter 205. 125-4 (16) "Reimbursing employer" means an employer making 125-5 payments in accordance with Chapter 205. 125-6 (17) "State" means a state of the United States, 125-7 Puerto Rico, the District of Columbia, or the Virgin Islands. 125-8 (18) "Taxed employer" means an employer who pays a 125-9 contribution under this subtitle. 125-10 (19) "United States" includes, in a geographic 125-11 context, each state. 125-12 (20) "Valid claim" means a claim filed by an 125-13 unemployed individual who has received the wages necessary to 125-14 qualify for benefits. 125-15 (21) "Week" means seven consecutive calendar days as 125-16 prescribed by the commission. (V.A.C.S. Arts. 5221b-5(c)(2)(A) 125-17 (part); 5221b-5a(a) (part); 5221b-17(a), (b), (c), (d), (e) (part), 125-18 (g)(3)(F), (h), (i), (k), (m), (o), (p).) 125-19 Sec. 201.012. DEFINITION OF MISCONDUCT. (a) "Misconduct" 125-20 means mismanagement of a position of employment by action or 125-21 inaction, neglect that jeopardizes the life or property of another, 125-22 intentional wrongdoing or malfeasance, intentional violation of a 125-23 law, or violation of a policy or rule adopted to ensure the orderly 125-24 work and the safety of employees. 125-25 (b) The term "misconduct" does not include an act in 125-26 response to an unconscionable act of an employer or superior. 125-27 (V.A.C.S. Art. 5221b-17(q).) 126-1 (Sections 201.013-201.020 reserved for expansion) 126-2 SUBCHAPTER C. DEFINITION OF EMPLOYER 126-3 Sec. 201.021. GENERAL DEFINITION OF EMPLOYER. (a) In this 126-4 subtitle, "employer" means an employing unit that: 126-5 (1) paid wages of $1,500 or more during a calendar 126-6 quarter in the current or preceding calendar year; or 126-7 (2) employed at least one individual in employment for 126-8 a portion of at least one day during 20 or more different calendar 126-9 weeks of the current or preceding calendar year. 126-10 (b) The definition provided by this section does not apply 126-11 to an employing unit covered by Section 201.023 or to farm and 126-12 ranch labor covered by Section 201.028. 126-13 (c) An individual who performs a service in this state for 126-14 an employing unit that maintains two or more separate 126-15 establishments in this state is employed by a single employing unit 126-16 for purposes of this subtitle. (V.A.C.S. Arts. 5221b-17(e) (part), 126-17 (f)(1).) 126-18 Sec. 201.022. EFFECT OF BUSINESS ACQUISITION. In this 126-19 subtitle, "employer" also means an individual or employing unit 126-20 that acquires the organization, trade, or business of another, or 126-21 substantially all of the assets thereof, of another that was an 126-22 employer subject to this subtitle at the time of the acquisition. 126-23 (V.A.C.S. Art. 5221b-17(f)(2).) 126-24 Sec. 201.023. TAX-EXEMPT NONPROFIT ORGANIZATION. In this 126-25 subtitle, "employer" also means an employing unit that: 126-26 (1) is a nonprofit organization under Section 126-27 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section 127-1 501(c)(3)); 127-2 (2) is exempt from income tax under Section 501(a), 127-3 Internal Revenue Code of 1986 (26 U.S.C. Section 501(a)); and 127-4 (3) employed at least four individuals in employment 127-5 for a portion of at least one day during 20 or more different 127-6 calendar weeks during the current year or during the preceding 127-7 calendar year. (V.A.C.S. Art. 5221b-17(f)(3).) 127-8 Sec. 201.024. ELECTION TO BE EMPLOYER. In this subtitle, 127-9 "employer" also means an employing unit that has elected to become 127-10 an employer under Section 205.001, 205.002, 206.002, or 206.003. 127-11 (V.A.C.S. Art. 5221b-17(f)(4).) 127-12 Sec. 201.025. EMPLOYER UNDER FEDERAL LAW. In this subtitle, 127-13 "employer" also means: 127-14 (1) an employing unit that is liable for the payment 127-15 of taxes under the Federal Unemployment Tax Act (26 U.S.C. Section 127-16 3301 et seq.) for the current calendar year; or 127-17 (2) an employing unit that the Federal Unemployment 127-18 Tax Act (26 U.S.C. Section 3301 et seq.) requires to be an 127-19 employer under this subtitle as a condition for approval of this 127-20 subtitle for full tax credit against the tax imposed by the Federal 127-21 Unemployment Tax Act. (V.A.C.S. Arts. 5221b-17(f)(5), (7).) 127-22 Sec. 201.026. STATE; POLITICAL SUBDIVISION. In this 127-23 subtitle, "employer" also means a state, a political subdivision of 127-24 a state, or an instrumentality of a state or political subdivision 127-25 of a state that is wholly owned by one or more states or political 127-26 subdivisions of one or more states. (V.A.C.S. Art. 127-27 5221b-17(f)(6).) 128-1 Sec. 201.027. EMPLOYER OF DOMESTIC SERVICE WORKER. (a) In 128-2 this subtitle, "employer" also means an employing unit that paid 128-3 cash wages of $1,000 or more during a calendar quarter in the 128-4 current or preceding calendar year for domestic service in a 128-5 private home, local college club, or local chapter of a college 128-6 fraternity or sorority. 128-7 (b) An employer under this section is not an employer for 128-8 wages paid for a service other than domestic service unless the 128-9 employer is treated as an employer for that service under another 128-10 provision of this subtitle. (V.A.C.S. Art. 5221b-17(f)(9).) 128-11 Sec. 201.028. EMPLOYER OF FARM AND RANCH LABORER. (a) In 128-12 this subtitle, "employer" also means an employing unit that paid 128-13 wages for, or employed individuals in, farm and ranch labor in 128-14 accordance with this section, Section 201.047, or Section 204.009. 128-15 (b) In this section, an employer shall not be treated as an 128-16 employer for wages paid for a service other than service performed 128-17 by: 128-18 (1) a seasonal worker employed on a truck farm, 128-19 orchard, or vineyard; 128-20 (2) a farm and ranch laborer who is a migrant worker; 128-21 or 128-22 (3) a seasonal worker who: 128-23 (A) works for a farmer, ranch operator, or labor 128-24 agent who employs migrant workers; and 128-25 (B) does the same work at the same time and 128-26 location as the migrant workers. 128-27 (c) Subsection (b) does not apply if the employer is an 129-1 employer with respect to farm and ranch labor performed under 129-2 Section 201.047(a)(4). (V.A.C.S. Art. 5221b-17(f)(8)(E) (part).) 129-3 (Sections 201.029-201.040 reserved for expansion) 129-4 SUBCHAPTER D. DEFINITION OF EMPLOYMENT 129-5 Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT. In this 129-6 subtitle, "employment" means a service, including service in 129-7 interstate commerce, performed by an individual for wages or under 129-8 an express or implied contract of hire, unless it is shown to the 129-9 satisfaction of the commission that the individual's performance of 129-10 the service has been and will continue to be free from control or 129-11 direction under the contract and in fact. 129-12 (V.A.C.S. Art. 5221b-17(g)(1) (part).) 129-13 Sec. 201.042. SERVICE OF DRIVER OR SALESMAN. In this 129-14 subtitle, "employment" includes service: 129-15 (1) as an agent-driver or commission-driver who 129-16 delivers a meat product, vegetable product, fruit product, bakery 129-17 product, laundry, dry cleaning, or beverage except milk, if: 129-18 (A) the service is performed for remuneration; 129-19 (B) the employment contract provides that the 129-20 individual personally performs substantially all of the service; 129-21 (C) the individual performing the service does 129-22 not have a substantial investment in a facility used in the 129-23 performance of the service, other than in a facility for 129-24 transportation; and 129-25 (D) the service is part of a continuing 129-26 relationship with the principal and is not a single transaction; or 129-27 (2) of a traveling or city salesman, except as 130-1 provided in Section 201.070, an agent-driver, or a 130-2 commission-driver, who, on a full-time basis, obtains for the 130-3 individual's principal, except for sideline sales activities for 130-4 another person, orders from a wholesaler, retailer, contractor, or 130-5 operator of a hotel, restaurant, or similar establishment for 130-6 merchandise for resale or supplies for use in the business's 130-7 operation if: 130-8 (A) the employment contract provides that the 130-9 individual personally performs substantially all of the service; 130-10 (B) the individual does not have a substantial 130-11 investment in a facility used in the performance of the service, 130-12 except a facility for transportation; and 130-13 (C) the service is part of a continuing 130-14 relationship with the principal and is not a single transaction. 130-15 (V.A.C.S. Art. 5221b-17(g)(1) (part).) 130-16 Sec. 201.043. LOCATION OF SERVICE. (a) In this subtitle, 130-17 "employment" includes service performed in this state or in and 130-18 outside this state if: 130-19 (1) the service is localized in this state; or 130-20 (2) the service is not localized in any state and some 130-21 of the service is performed in this state and: 130-22 (A) the base of operations is in this state, or 130-23 there is no base of operations, but the service is directed or 130-24 controlled from this state; or 130-25 (B) the base of operations or place from which 130-26 service is directed or controlled is not in a state in which a part 130-27 of the service is performed, and the residence of the person who 131-1 performs the service is in this state. 131-2 (b) In this subtitle, "employment" includes service 131-3 performed anywhere in the United States, including service 131-4 performed entirely outside this state, if: 131-5 (1) the service is not localized in a state; 131-6 (2) the service is performed by an individual who is 131-7 one of a class of employees who are required to travel outside this 131-8 state in performance of their duties; and 131-9 (3) the individual's base of operations is in this 131-10 state or, if there is no base of operations, the individual's 131-11 service is directed or controlled from this state. 131-12 (c) In this subtitle, "employment" includes service 131-13 performed entirely outside this state that is not included as 131-14 employment under Subsection (b) or Section 201.045 and for which 131-15 contributions are not required and paid under an unemployment 131-16 compensation law of another state if: 131-17 (1) the individual performing the service is a 131-18 resident of this state; and 131-19 (2) the commission approves the election of the 131-20 employing unit for which the individual performs the service that 131-21 the entire service of the individual is employment under this 131-22 subtitle. 131-23 (d) In this subtitle, "employment" includes service 131-24 performed after 1971 outside the United States by a citizen of the 131-25 United States as an employee of an American employer, if: 131-26 (1) the service was not performed in a contiguous 131-27 country with which the United States has an agreement relating to 132-1 unemployment compensation; 132-2 (2) the service is not considered employment under 132-3 Subsection (b) or (c) or Section 201.044 or 201.045 or the parallel 132-4 provisions of another state's law; and 132-5 (3) the employer: 132-6 (A) has its principal place of business in the 132-7 United States in this state; 132-8 (B) does not have a place of business in the 132-9 United States and is: 132-10 (i) an individual who is a resident of 132-11 this state; 132-12 (ii) a corporation that is organized under 132-13 the laws of this state; or 132-14 (iii) a partnership or a trust and the 132-15 number of partners or trustees who are residents of this state is 132-16 greater than the number who are residents of any one other state; 132-17 (C) has elected coverage in this state; or 132-18 (D) has failed to elect coverage in any state 132-19 and the individual has filed a claim for benefits based on the 132-20 service under the laws of this state. 132-21 (e) In this section, "American employer" means: 132-22 (1) an individual who is a resident of the United 132-23 States; 132-24 (2) a partnership, if two-thirds or more of the 132-25 partners are residents of the United States; 132-26 (3) a trust, if all of the trustees are residents of 132-27 the United States; or 133-1 (4) a corporation organized under the laws of the 133-2 United States or of a state. 133-3 (f) For the purposes of Subsection (b), service is localized 133-4 in a state if the service is performed entirely within the state or 133-5 the service performed outside the state is incidental to the 133-6 service performed in the state. In this section, a service that is 133-7 "incidental" includes a service that is temporary or that consists 133-8 of isolated transactions. 133-9 (g) If this state is the state of jurisdiction for services 133-10 covered as employment under Subsection (d), the employer shall so 133-11 notify its employees. (V.A.C.S. Arts. 5221b-17(g)(2), (3)(A), (D), 133-12 (E), (G), (4).) 133-13 Sec. 201.044. SERVICE UNDER RECIPROCAL AGREEMENT. In this 133-14 subtitle, "employment" includes service that is performed by an 133-15 individual and that is covered by a reciprocal agreement under this 133-16 subtitle between the commission and the agency that administers 133-17 another state's or a federal unemployment compensation law if: 133-18 (1) under the agreement all service performed by the 133-19 individual for an employing unit is considered to be performed 133-20 entirely in this state; and 133-21 (2) the commission approves an election of the 133-22 employing unit for whom the service is performed under which the 133-23 entire service of the individual is considered employment subject 133-24 to this subtitle during the period covered by the election. 133-25 (V.A.C.S. Art. 5221b-17(g)(3)(B).) 133-26 Sec. 201.045. SERVICE ON VESSEL OR AIRCRAFT. In this 133-27 subtitle, "employment" includes service performed on or in 134-1 connection with an American vessel or aircraft if: 134-2 (1) the service is employment under Section 3306(c), 134-3 Internal Revenue Code of 1986 (26 U.S.C. Section 3306(c)); and 134-4 (2) the operating office from which the vessel or 134-5 aircraft is ordinarily and regularly directed and controlled is in 134-6 this state. (V.A.C.S. Art. 5221b-17(g)(3)(C).) 134-7 Sec. 201.046. EMPLOYMENT TO ASSIST EMPLOYEE OR AGENT. (a) 134-8 An individual employed to perform or to assist in performing the 134-9 work of an employee or agent of an employing unit is employed by 134-10 that employing unit for purposes of this subtitle if the employing 134-11 unit has actual or constructive knowledge of the work. 134-12 (b) Subsection (a) applies without regard to whether the 134-13 individual is hired or paid directly by the employing unit or by 134-14 the employee or agent. (V.A.C.S. Art. 5221b-17(e) (part).) 134-15 Sec. 201.047. FARM AND RANCH LABOR AS EMPLOYMENT. (a) Farm 134-16 and ranch labor is employment for the purposes of this subtitle if 134-17 the labor: 134-18 (1) is performed by a seasonal worker employed on a 134-19 truck farm, orchard, or vineyard; 134-20 (2) is performed by a migrant worker; 134-21 (3) is performed by a seasonal worker who: 134-22 (A) is working for a farmer, ranch operator, or 134-23 labor agent who employs a migrant worker; and 134-24 (B) is doing the same work at the same time and 134-25 location as the migrant worker; 134-26 (4) performed after 1986 and the laborer is employed 134-27 by an employing unit that: 135-1 (A) pays wages in cash of $6,250 or more for the 135-2 labor during a calendar quarter in the calendar year in which the 135-3 labor is performed or the calendar year preceding that year; or 135-4 (B) employs three or more individuals in farm 135-5 and ranch labor for a portion of at least one day during at least 135-6 20 different calendar weeks of the calendar year in which the labor 135-7 is performed or the calendar year preceding that year. 135-8 (b) Wages paid for services described in Subdivision (a)(1), 135-9 (2), or (3) are included in determining the wages paid for the 135-10 purposes of Subdivisions (a)(4) and (5). (V.A.C.S. Arts. 135-11 5221b-17(f)(8)(A)(ii), (B), (C), (E) (part).) 135-12 (Sections 201.048-201.060 reserved for expansion) 135-13 SUBCHAPTER E. EXCEPTIONS TO EMPLOYMENT 135-14 Sec. 201.061. SERVICE ELIGIBLE UNDER ACT OF CONGRESS. In 135-15 this subtitle, "employment" does not include service for which 135-16 unemployment compensation is payable under an unemployment 135-17 compensation system established by an Act of Congress. 135-18 (V.A.C.S. Art. 5221b-17(g)(5)(A) (part).) 135-19 Sec. 201.062. SERVICE UNDER ARRANGEMENT WITH AGENCY. In 135-20 this subtitle, "employment" does not include service under an 135-21 arrangement that is between the commission and the agency that 135-22 administers another state's or a federal unemployment compensation 135-23 law and that considers the service for an employing unit during the 135-24 period covered by the employing unit's approved election to be 135-25 performed entirely within the agency's state or under the federal 135-26 law. (V.A.C.S. Art. 5221b-17(g)(5)(L).) 135-27 Sec. 201.063. CERTAIN GOVERNMENT SERVICE. (a) In this 136-1 subtitle, "employment" does not include: 136-2 (1) service in the employ of a political subdivision 136-3 or of an instrumentality of a political subdivision that is wholly 136-4 owned by one or more political subdivisions: 136-5 (A) as an elected official; 136-6 (B) as a member of a legislative body; 136-7 (C) as a member of the judiciary; 136-8 (D) as a temporary employee in case of fire, 136-9 storm, snow, earthquake, flood, or similar emergency; or 136-10 (E) in a position that is designated under law 136-11 as a major nontenured policy-making or advisory position or a 136-12 policy-making or advisory position that ordinarily does not require 136-13 more than eight hours of service each week; 136-14 (2) service in the employ of a foreign government, 136-15 including service as a consular or other officer or employee or as 136-16 a nondiplomatic representative; 136-17 (3) service in the employ of an instrumentality wholly 136-18 owned by a foreign government if: 136-19 (A) the service is similar to service performed 136-20 in a foreign country by an employee of the United States government 136-21 or an instrumentality of that government; and 136-22 (B) the United States secretary of state has 136-23 certified to the United States secretary of the treasury that the 136-24 foreign government grants an equivalent exemption for similar 136-25 services performed in the foreign country by an employee of the 136-26 United States government or an instrumentality of the United States 136-27 government; or 137-1 (4) service in the employ of the United States 137-2 government or an instrumentality of the United States exempt under 137-3 the United States Constitution from the contributions imposed by 137-4 this subtitle. 137-5 (b) To the extent the United States Congress permits a state 137-6 to require an instrumentality of the United States to make payments 137-7 into an unemployment fund under a state unemployment compensation 137-8 law, this subtitle applies to the instrumentality and to the 137-9 service performed for the instrumentality. 137-10 (V.A.C.S. Arts. 5221b-17(g)(5)(F), (G), (H), (M) (part).) 137-11 Sec. 201.064. DOMESTIC SERVICE. In this subtitle, 137-12 "employment" does not include domestic service in a private home, 137-13 local college club, or local chapter of a college fraternity or 137-14 sorority, except as performed for an employer under Section 137-15 201.027. (V.A.C.S. Art. 5221b-17(g)(5)(C).) 137-16 Sec. 201.065. SERVICE BY RELATIVE. In this subtitle, 137-17 "employment" does not include: 137-18 (1) service of an individual in the employ of the 137-19 individual's son, daughter, or spouse; or 137-20 (2) service of an individual younger than 21 years of 137-21 age in the employ of the individual's father or mother. 137-22 (V.A.C.S. Art. 5221b-17(g)(5)(D).) 137-23 Sec. 201.066. RELIGIOUS SERVICE. In this subtitle, 137-24 "employment" does not include: 137-25 (1) service in the employ of: 137-26 (A) a church; 137-27 (B) a convention or association of churches; or 138-1 (C) an organization that is operated primarily 138-2 for religious purposes and that is operated, supervised, 138-3 controlled, or principally supported by a church or a convention or 138-4 association of churches; 138-5 (2) service performed by an ordained, commissioned, or 138-6 licensed minister of a church in the exercise of the individual's 138-7 ministry; or 138-8 (3) service performed by a member of a religious order 138-9 as required by the order. (V.A.C.S. Arts. 5221b-17(g)(5)(E), (N).) 138-10 Sec. 201.067. REHABILITATIVE SERVICE; WORK RELIEF. In this 138-11 subtitle, "employment" does not include: 138-12 (1) service performed by an individual receiving 138-13 rehabilitative or paying work in the employ of a facility that is 138-14 conducted for the purpose of carrying out a program of 138-15 rehabilitation for individuals whose earning capacity is impaired 138-16 by age, physical or mental deficiency or injury or that provides 138-17 paying work for individuals who, because of their impaired physical 138-18 or mental capacity, cannot be readily absorbed in the competitive 138-19 labor market; or 138-20 (2) service performed as a part of an unemployment 138-21 work-relief or work-training program assisted or financed in whole 138-22 or in part by a federal agency, an agency of a state, or a 138-23 political subdivision of a state by an individual receiving the 138-24 work relief or work training. (V.A.C.S. Arts. 5221b-17(g)(5)(P), 138-25 (Q).) 138-26 Sec. 201.068. SERVICE IN HOSPITAL. In this subtitle, 138-27 "employment" does not include: 139-1 (1) service as a student nurse who is: 139-2 (A) employed by a hospital or a nurses' training 139-3 school; and 139-4 (B) enrolled and regularly attending classes in 139-5 a nurses' training school chartered or approved under state law; 139-6 (2) service as an intern in the employ of a hospital 139-7 by an individual who has completed a four-year course in a medical 139-8 school chartered or approved under state law; or 139-9 (3) service in the employ of a hospital by a patient 139-10 of the hospital. (V.A.C.S. Arts. 5221b-17(g)(5)(I), (U).) 139-11 Sec. 201.069. SERVICE OF STUDENT. In this subtitle, 139-12 "employment" does not include: 139-13 (1) service performed in the employ of a school, 139-14 college, or university by a student who is enrolled and regularly 139-15 attending classes at the school, college, or university; 139-16 (2) service performed by an individual who is enrolled 139-17 as a student in a full-time program that combines academic 139-18 instruction with work experience and that is taken for credit at a 139-19 nonprofit or public educational institution normally maintaining a 139-20 regular faculty and curriculum and having a regularly organized 139-21 body of students in attendance at the place where its educational 139-22 activities are conducted, if the service is an integral part of the 139-23 program, and the institution has so certified to the employing 139-24 unit, except: 139-25 (A) service performed in a program established 139-26 for an employer or a group of employers; 139-27 (B) service in an apprenticeship training 140-1 program; or 140-2 (C) service performed by a teaching assistant; 140-3 or 140-4 (3) service by a student in the employ of an organized 140-5 camp if: 140-6 (A) the camp: 140-7 (i) did not operate for more than seven 140-8 months in the current calendar year and did not operate for more 140-9 than seven months in the preceding calendar year; or 140-10 (ii) had average gross receipts for any 140-11 six months in the preceding calendar year that were not more than 140-12 33-1/3 percent of its average gross receipts for the other six 140-13 months in the preceding calendar year; and 140-14 (B) the student performed services for the camp 140-15 for fewer than 13 calendar weeks in the calendar year and the 140-16 student: 140-17 (i) is enrolled as a full-time student at 140-18 an educational institution; or 140-19 (ii) is between academic terms or years 140-20 and: 140-21 (a) the student was enrolled as a 140-22 full-time student at an educational institution for the preceding 140-23 academic term or year; and 140-24 (b) there is reasonable assurance 140-25 that the student will be so enrolled for the next academic term or 140-26 year. (V.A.C.S. Arts. 5221b-17(g)(5)(S), (T), (X).) 140-27 Sec. 201.070. SERVICE AS PRODUCT DEMONSTRATOR; SALESMAN. In 141-1 this subtitle, "employment" does not include: 141-2 (1) service by an individual as a product demonstrator 141-3 if: 141-4 (A) the service is performed under a written 141-5 contract between the individual performing the service and a person 141-6 whose principal business is obtaining the service of a demonstrator 141-7 for a third person for product demonstration purposes; and 141-8 (B) in contract and in fact the individual: 141-9 (i) is not treated as an employee with 141-10 respect to that service for federal unemployment tax purposes; 141-11 (ii) is compensated for each demonstration 141-12 or is compensated based on factors that relate to the work 141-13 performed; 141-14 (iii) determines the method of performing 141-15 the service; 141-16 (iv) provides each vehicle used to perform 141-17 the service; 141-18 (v) is responsible for the completion of a 141-19 specific job and is liable for failure to complete the job; 141-20 (vi) may accept or reject a job from a 141-21 product demonstrator business; 141-22 (vii) is free from control by the 141-23 principal business as to where the individual works; 141-24 (viii) controls solely opportunity for 141-25 profit or loss; and 141-26 (ix) pays all expenses and operating 141-27 costs, including fuel, repairs, supplies, and motor vehicle 142-1 insurance; 142-2 (2) service by an individual as a direct seller if: 142-3 (A) the individual is engaged in the business 142-4 of: 142-5 (i) in-person sales of consumer products 142-6 to a buyer on a buy-sell basis, a deposit-commission basis, or a 142-7 similar basis for resale in a home or in a place other than, and 142-8 not affiliated with, a permanent retail establishment; or 142-9 (ii) sales of consumer products in a home 142-10 or in a place other than, and not affiliated with, a permanent 142-11 retail establishment; 142-12 (B) substantially all remuneration for the 142-13 service, whether in cash or other form of payment, is directly 142-14 related to sales or other output, including the performance of the 142-15 service, and not to the number of hours worked; and 142-16 (C) the service is performed under a written 142-17 contract between the individual and the person for whom the service 142-18 is performed, and the contract provides that the individual is not 142-19 treated as an employee with respect to the service for federal tax 142-20 purposes; or 142-21 (3) service performed by an individual at a trade 142-22 market for a wholesaler or sales representative of a wholesaler or 142-23 manufacturer of consumer goods under a written contract, or as a 142-24 salesman for a wholesaler of consumer goods, if the wholesaler or 142-25 sales representative maintains a regular or seasonal place of 142-26 business at a trade market facility in a municipality with a 142-27 population of more than 750,000. (V.A.C.S. Arts. 143-1 5221b-17(g)(5)(B), (W), (BB).) 143-2 Sec. 201.071. SERVICE AS INSURANCE AGENT. In this subtitle, 143-3 "employment" does not include service as an insurance agent for 143-4 which the only remuneration for the service is a commission. 143-5 (V.A.C.S. Arts. 5221b-17(g)(5)(J).) 143-6 Sec. 201.072. SERVICE AS REAL ESTATE BROKER. In this 143-7 subtitle, "employment" does not include: 143-8 (1) service performed by an individual as a real 143-9 estate broker or salesman if: 143-10 (A) the individual engages in activity described 143-11 by the definition of "real estate broker" in Section 2, The Real 143-12 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes); 143-13 (B) the individual is licensed as a real estate 143-14 broker or salesman by the Texas Real Estate Commission; 143-15 (C) substantially all remuneration for the 143-16 service, whether in cash or other form of payment, is directly 143-17 related to sales or other output, including the performance of the 143-18 service, and not to the number of hours worked; and 143-19 (D) the service is performed under a written 143-20 contract between the individual and the person for whom the service 143-21 is performed, and the contract provides that the individual is not 143-22 treated as an employee with respect to the service for federal tax 143-23 purposes; or 143-24 (2) service performed by an individual as an 143-25 instructor of a person licensed or seeking a license as a real 143-26 estate broker or salesman if: 143-27 (A) the individual instructs in an educational 144-1 program or course approved by the Texas Real Estate Commission; and 144-2 (B) the service is performed under a written 144-3 contract between the individual and the person for whom the service 144-4 is performed and the contract provides that the individual is not 144-5 treated as an employee with respect to the service for federal tax 144-6 purposes. (V.A.C.S. Arts. 5221b-17(g)(5)(Y), (Z).) 144-7 Sec. 201.073. DELIVERY SERVICE; NEWSPAPER DELIVERY SERVICE. 144-8 In this subtitle, "employment" does not include: 144-9 (1) service performed for compensation by an 144-10 individual for a private for-profit delivery service that operates 144-11 only in a commercial zone as defined and prescribed by the Railroad 144-12 Commission of Texas under Section 1(g), Chapter 314, Acts of the 144-13 41st Legislature, Regular Session, 1929 (Article 911b, Vernon's 144-14 Texas Civil Statutes), if the individual: 144-15 (A) may accept or reject a job from the delivery 144-16 service; 144-17 (B) is free from control by the delivery service 144-18 as to when the individual works; 144-19 (C) is compensated for each delivery or is 144-20 compensated based on factors relating to the work performed, 144-21 including receipt of a percentage of a rate schedule; 144-22 (D) controls solely the opportunity for profit 144-23 or loss; 144-24 (E) pays all expenses and operating costs, 144-25 including fuel, repairs, supplies, and motor vehicle insurance; 144-26 (F) determines the method of performing the 144-27 service, including selection of routes and order of deliveries; 145-1 (G) is responsible for completion of a specific 145-2 job and is liable for failure to complete the job; 145-3 (H) enters into a contract that specifies the 145-4 relationship of the individual to the delivery service to be that 145-5 of an independent contractor and not an employee; and 145-6 (I) provides the vehicle used to perform the 145-7 service; or 145-8 (2) service by an individual younger than 18 years of 145-9 age in the delivery or distribution of newspapers or shopping news, 145-10 except delivery or distribution to any location for subsequent 145-11 delivery or distribution. (V.A.C.S. Arts. 5221b-17(g)(5)(K), 145-12 (AA).) 145-13 Sec. 201.074. SERVICE BY INMATE. In this subtitle, 145-14 "employment" does not include service performed by an inmate of a 145-15 custodial or penal institution that is owned or operated by this 145-16 state or a political subdivision of this state. 145-17 (V.A.C.S. Art. 5221b-17(g)(5)(R).) 145-18 Sec. 201.075. SERVICE ON FISHING VESSEL. In this subtitle, 145-19 "employment" does not include service performed on a fishing vessel 145-20 normally having a crew of fewer than 10 members if: 145-21 (1) the crew member's payment is a share of the catch; 145-22 and 145-23 (2) the service is not employment under the Federal 145-24 Unemployment Tax Act (26 U.S.C. Section 3301 et seq.). 145-25 (V.A.C.S. Art. 5221b-17(g)(5)(V).) 145-26 Sec. 201.076. INCLUDED AND EXCLUDED SERVICE IN PAY PERIOD. 145-27 (a) All of the service of an individual performed during a pay 146-1 period for a person employing the individual is employment if the 146-2 service performed during one-half or more of the period is 146-3 employment. 146-4 (b) None of the service of an individual performed during a 146-5 pay period for a person employing the individual is employment if 146-6 the service performed during more than one-half of the pay period 146-7 is not employment. 146-8 (c) This section does not apply to service performed in a 146-9 pay period by an individual for a person employing the individual 146-10 that is service that does not constitute employment under Section 146-11 201.061. 146-12 (d) In this section, "pay period" means the period, not to 146-13 exceed 31 consecutive days, for which a person employing an 146-14 individual ordinarily pays wages to the individual. 146-15 (V.A.C.S. Art. 5221b-17(g)(6).) 146-16 (Sections 201.077-201.080 reserved for expansion) 146-17 SUBCHAPTER F. DEFINITION OF WAGES 146-18 Sec. 201.081. GENERAL DEFINITION OF WAGES. In this 146-19 subtitle, "wages" means all remuneration for personal services, 146-20 including: 146-21 (1) the cash value of remuneration paid in a medium 146-22 other than cash; and 146-23 (2) a gratuity received by an employee in the course 146-24 of employment to the extent that the gratuity is considered wages 146-25 in the computation of taxes under the Federal Unemployment Tax Act 146-26 (26 U.S.C. Section 3301 et seq.). (V.A.C.S. Art. 5221b-17(n) 146-27 (part).) 147-1 Sec. 201.082. EXCEPTIONS TO WAGES. In this subtitle, 147-2 "wages" does not include: 147-3 (1) that part of the remuneration paid by an employer 147-4 to an individual for employment during a calendar year that exceeds 147-5 remuneration to the individual, excluding remuneration under 147-6 another subdivision of this section, by the employer, of: 147-7 (A) $7,000 for a calendar year before 1988; 147-8 (B) $8,000 for calendar year 1988; or 147-9 (C) $9,000 for a calendar year after calendar 147-10 year 1988; 147-11 (2) a payment, including an amount the employer pays 147-12 for insurance or an annuity or pays into a fund for the payment of 147-13 insurance or an annuity, that is made to or for an employee or the 147-14 employee's dependent under a plan the employer established for 147-15 employees generally, or a class of employees, including or 147-16 excluding the employee's dependents, for: 147-17 (A) retirement; 147-18 (B) sickness or accident disability; 147-19 (C) medical or hospitalization expenses in 147-20 connection with sickness or accident disability; or 147-21 (D) expenses related to death; 147-22 (3) a payment made to an individual employee for 147-23 retirement, including an amount an employer pays for insurance or 147-24 an annuity or pays into a fund for the payment of insurance or an 147-25 annuity; 147-26 (4) a payment for sickness or accident disability, or 147-27 medical or hospitalization expenses for sickness or accident 148-1 disability, an employer makes to or for an individual employee 148-2 after the expiration of six calendar months after the last calendar 148-3 month the employee worked for the employer; 148-4 (5) a payment made to or for an employee or the 148-5 employee's beneficiary: 148-6 (A) from or to a trust defined by Section 148-7 401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)), 148-8 that is exempt from tax under Section 501(a), Internal Revenue Code 148-9 of 1986 (26 U.S.C. Section 501(a)), at the time of payment, unless 148-10 the payment is made to an employee of the trust as remuneration for 148-11 service as an employee and not as a beneficiary of the trust; 148-12 (B) under or to an annuity plan that, at the 148-13 time of the payment, is a plan described by Section 403(a), 148-14 Internal Revenue Code of 1986 (26 U.S.C. Section 403(a)); or 148-15 (C) under or to a bond purchase plan that, at 148-16 the time of the payment, was a qualified bond purchase plan under 148-17 Section 405(a), Internal Revenue Code of 1954 (former 26 U.S.C. 148-18 Section 405(a)); 148-19 (6) a tax an employer pays, without deduction from the 148-20 remuneration of the employee, that is imposed on the employee under 148-21 Section 3101, Internal Revenue Code of 1986 (26 U.S.C. Section 148-22 3101); 148-23 (7) noncash remuneration paid to an employee for 148-24 service not in the course of the employer's business; 148-25 (8) a payment, except vacation or sick pay, made to an 148-26 employee after the month the employee is 65 years of age, if the 148-27 employee did not work for the employer in the period for which the 149-1 payment is made; or 149-2 (9) the part of remuneration from a single employer 149-3 for services in a calendar year that exceeds the amount applicable 149-4 to the year under Subdivision (1) for which contributions have been 149-5 paid under a state unemployment law. (V.A.C.S. Art. 5221b-17(n) 149-6 (part).) 149-7 (Sections 201.083-201.090 reserved for expansion) 149-8 SUBCHAPTER G. TOTAL AND PARTIAL UNEMPLOYMENT 149-9 Sec. 201.091. TOTAL AND PARTIAL UNEMPLOYMENT. (a) An 149-10 individual is totally unemployed in a benefit period during which 149-11 the individual does not perform services for wages in excess of the 149-12 greater of: 149-13 (1) $5; or 149-14 (2) 25 percent of the benefit amount. 149-15 (b) An individual is partially unemployed in a benefit 149-16 period of less than full-time work if the individual's wages 149-17 payable for that benefit period are less than the sum of: 149-18 (1) the benefit amount the individual would be 149-19 entitled to receive if the individual was totally unemployed; and 149-20 (2) the greater of: 149-21 (A) $5; or 149-22 (B) 25 percent of the benefit amount. 149-23 (V.A.C.S. Arts. 5221b-17(j), (l) (part).) 149-24 (Sections 201.092-201.100 reserved for expansion) 149-25 SUBCHAPTER H. CONFORMITY WITH FEDERAL STATUTES 149-26 Sec. 201.101. CONFORMITY WITH FEDERAL STATUTES. If the 149-27 United States secretary of labor holds that a provision of this 150-1 subtitle does not conform with a federal statute, the commission 150-2 may administer this subtitle to conform with the federal statute 150-3 until the legislature meets in its next session and has an 150-4 opportunity to amend this subtitle. (V.A.C.S. Art. 5221b-22e.) 150-5 CHAPTER 202. TEXAS EMPLOYMENT COMMISSION 150-6 SUBCHAPTER A. ORGANIZATION OF COMMISSION 150-7 Sec. 202.001. MEMBERSHIP REQUIREMENTS 150-8 Sec. 202.002. MEMBER RESTRICTIONS 150-9 Sec. 202.003. EFFECT OF LOBBYING ACTIVITY 150-10 Sec. 202.004. TERMS; VACANCY 150-11 Sec. 202.005. CHAIRMAN 150-12 Sec. 202.006. REMOVAL OF COMMISSION MEMBERS 150-13 (Sections 202.007-202.020 reserved for expansion) 150-14 SUBCHAPTER B. COMMISSION ADMINISTRATION 150-15 Sec. 202.021. DONATIONS 150-16 Sec. 202.022. AUDIT 150-17 Sec. 202.023. COMPLAINTS 150-18 Sec. 202.024. OFFICIAL SEAL; USE OF FACSIMILES 150-19 Sec. 202.025. STATE ADVISORY COUNCIL; LOCAL COUNCILS 150-20 (Sections 202.026-202.040 reserved for expansion) 150-21 SUBCHAPTER C. AGENCY ADMINISTRATOR AND PERSONNEL 150-22 Sec. 202.041. AGENCY ADMINISTRATOR; PERSONNEL 150-23 Sec. 202.042. ACCESS TO CERTAIN CRIMINAL HISTORY RECORD 150-24 INFORMATION; OFFENSE; PENALTY 150-25 Sec. 202.043. STANDARDS OF CONDUCT INFORMATION 150-26 (Sections 202.044-202.060 reserved for expansion) 150-27 SUBCHAPTER D. GENERAL POWERS AND DUTIES OF COMMISSION 151-1 Sec. 202.061. GENERAL POWERS AND DUTIES 151-2 Sec. 202.062. FINDINGS 151-3 Sec. 202.063. STATE AND FEDERAL COOPERATION 151-4 Sec. 202.064. INTERPRETER SERVICES; BILINGUAL FORMS 151-5 Sec. 202.065. ANNUAL REPORT 151-6 Sec. 202.066. PUBLICATIONS 151-7 (Sections 202.067-202.070 reserved for expansion) 151-8 SUBCHAPTER E. INVESTIGATIVE AND SUBPOENA POWERS 151-9 Sec. 202.071. INVESTIGATIVE AND SUBPOENA POWERS 151-10 Sec. 202.072. ENFORCEMENT OF SUBPOENA; OFFENSE; PENALTIES 151-11 Sec. 202.073. SELF-INCRIMINATION 151-12 Sec. 202.074. DEFAMATION 151-13 (Sections 202.075-202.080 reserved for expansion) 151-14 SUBCHAPTER F. EMPLOYMENT SERVICE 151-15 Sec. 202.081. TEXAS STATE EMPLOYMENT SERVICE 151-16 Sec. 202.082. EMPLOYMENT SERVICES AGREEMENTS 151-17 (Sections 202.083-202.090 reserved for expansion) 151-18 SUBCHAPTER G. RECORDS 151-19 Sec. 202.091. EMPLOYEE RECORDS OF EMPLOYING UNIT; OFFENSE; 151-20 PENALTY 151-21 Sec. 202.092. COPIES OF RECORDS 151-22 Sec. 202.093. ACCESS TO RECORDS BY RAILROAD RETIREMENT 151-23 BOARD 151-24 Sec. 202.094. DESTRUCTION OF RECORDS 151-25 CHAPTER 202. TEXAS EMPLOYMENT COMMISSION 151-26 SUBCHAPTER A. ORGANIZATION OF COMMISSION 151-27 Sec. 202.001. MEMBERSHIP REQUIREMENTS. (a) The Texas 152-1 Employment Commission is composed of three members: 152-2 (1) one of whom shall be a representative of labor; 152-3 (2) one of whom shall be a representative of 152-4 employers; and 152-5 (3) one of whom shall be impartial and shall represent 152-6 the public. 152-7 (b) The governor shall appoint the members and make the 152-8 appointments without regard to the race, creed, sex, religion, or 152-9 national origin of the appointees. (V.A.C.S. Arts. 5221b-8(a) 152-10 (part), (b) (part).) 152-11 Sec. 202.002. MEMBER RESTRICTIONS. (a) A member of the 152-12 commission may not engage in any other business, vocation, or 152-13 employment during the member's term on the commission. 152-14 (b) The public member of the commission may not be an 152-15 officer, employee, or paid consultant of a labor-oriented or 152-16 employer-oriented trade association while the member serves on the 152-17 commission. (V.A.C.S. Arts. 5221b-8(a) (part), (b) (part).) 152-18 Sec. 202.003. EFFECT OF LOBBYING ACTIVITY. A person who is 152-19 required to register as a lobbyist under Chapter 305, Government 152-20 Code, may not serve as a member of the commission or act as the 152-21 general counsel to the commission while so registered. If the 152-22 person ceases to engage in lobbying activity and files a notice of 152-23 termination as prescribed by Section 305.008, Government Code, the 152-24 person may serve as a member of the commission or act as the 152-25 general counsel to the commission. (V.A.C.S. Art. 5221b-8(c).) 152-26 Sec. 202.004. TERMS; VACANCY. (a) Members of the 152-27 commission are appointed for staggered six-year terms, with one 153-1 member's term expiring on February 1 of each odd-numbered year. 153-2 (b) A member appointed to fill a vacancy shall hold office 153-3 for the remainder of that term. (V.A.C.S. Art. 5221b-8(b) (part).) 153-4 Sec. 202.005. CHAIRMAN. The member representing the public 153-5 is the chairman of the commission. (V.A.C.S. Art. 5221b-8(d).) 153-6 Sec. 202.006. REMOVAL OF COMMISSION MEMBERS. (a) It is a 153-7 ground for removal from the commission by impeachment that a 153-8 member: 153-9 (1) during any 60-day period, is absent from each 153-10 commission meeting for which the member received at least 48 hours' 153-11 notice; 153-12 (2) is unable to discharge the member's duties for the 153-13 remainder of the term for which the member was appointed because of 153-14 illness or other disability; or 153-15 (3) violates a prohibition established by Section 153-16 202.002 or 202.003. 153-17 (b) The validity of an action of the commission is not 153-18 affected by the fact that it was taken when a ground for the 153-19 removal of a member of the commission existed. (V.A.C.S. Art. 153-20 5221b-8(h).) 153-21 (Sections 202.007-202.020 reserved for expansion) 153-22 SUBCHAPTER B. COMMISSION ADMINISTRATION 153-23 Sec. 202.021. DONATIONS. The commission may accept a 153-24 donation of services, money, or property from an organization 153-25 listed in Section 501(c)(3) of the Internal Revenue Code of 1986 153-26 (26 U.S.C. Section 501(c)(3)) that the commission determines 153-27 furthers the lawful objectives of the commission. The donation 154-1 must be accepted in an open meeting by a majority of the voting 154-2 members of the commission and must be reported in the public 154-3 records of the commission with the name of the donor and the 154-4 purpose of the donation. (V.A.C.S. Art. 5221b-9(q).) 154-5 Sec. 202.022. AUDIT. The financial transactions of the 154-6 commission are subject to audit by the state auditor in accordance 154-7 with Chapter 321, Government Code. (V.A.C.S. Art. 5221b-9(m).) 154-8 Sec. 202.023. COMPLAINTS. (a) The commission shall keep an 154-9 information file about each complaint filed with the commission 154-10 that relates to a service provided by the commission. 154-11 (b) If a written complaint is filed with the commission that 154-12 relates to a service provided by the commission, the commission, at 154-13 least quarterly and until final disposition of the complaint, shall 154-14 notify the parties to the complaint of the status of the complaint. 154-15 (V.A.C.S. Arts. 5221b-9(n), (o).) 154-16 Sec. 202.024. OFFICIAL SEAL; USE OF FACSIMILES. (a) The 154-17 commission has an official seal. A court shall take judicial 154-18 notice of the seal. 154-19 (b) The commission may execute, certify, authenticate, or 154-20 sign, with a facsimile signature and seal, any instrument 154-21 authorized under this subtitle to be issued by the commission or by 154-22 an authorized representative of the commission, including a claim, 154-23 statement, or audit report relating to the establishment or 154-24 collection of delinquent contributions or penalties. (V.A.C.S. 154-25 Arts. 5221b-9(a) (part), (p).) 154-26 Sec. 202.025. STATE ADVISORY COUNCIL; LOCAL COUNCILS. (a) 154-27 The commission may appoint a state advisory council composed of 15 155-1 persons representing employers, employees, and the public. Each 155-2 member of the commission may appoint five persons to the advisory 155-3 council. 155-4 (b) The advisory council shall meet regularly. 155-5 (c) As permitted by commission rule, a member of the 155-6 advisory council is entitled to reimbursement for necessary travel 155-7 and subsistence expenses and to a per diem allowance for attending 155-8 meetings of the council, but is not a state employee for any 155-9 purpose. 155-10 (d) The commission shall determine the composition and 155-11 prescribe the duties of the advisory council. 155-12 (e) The advisory council shall prepare an annual report 155-13 describing the advisory council's work during the preceding year 155-14 and detailing any recommendations. 155-15 (f) The commission may appoint and pay local advisory 155-16 councils and consultants under the same conditions as provided in 155-17 this section for the state advisory council. (V.A.C.S. Art. 155-18 5221b-8(e) (part).) 155-19 (Sections 202.026-202.040 reserved for expansion) 155-20 SUBCHAPTER C. AGENCY ADMINISTRATOR AND PERSONNEL 155-21 Sec. 202.041. AGENCY ADMINISTRATOR; PERSONNEL. (a) The 155-22 commission shall appoint an agency administrator on the basis of 155-23 merit to administer the daily operations of the commission and may 155-24 prescribe any specific qualifications for the position of agency 155-25 administrator that are necessary to comply with federal law. The 155-26 position of agency administrator is subject to the merit principles 155-27 of Chapter 492, Acts of the 69th Legislature, Regular Session, 1985 156-1 (Article 6252-11g, Vernon's Texas Civil Statutes). 156-2 (b) The agency administrator may: 156-3 (1) appoint and prescribe the powers and duties of all 156-4 officers, accountants, attorneys, experts, and other persons as 156-5 necessary in the performance of the commission's duties; 156-6 (2) delegate authority to a person appointed under 156-7 this section as the agency administrator considers reasonable and 156-8 proper for the effective administration of this subtitle; and 156-9 (3) bond any person that handles money or signs checks 156-10 under this subtitle. 156-11 (c) The agency administrator or a person designated by the 156-12 agency administrator shall develop a system of annual performance 156-13 evaluations based on measurable job tasks. All merit pay for 156-14 commission employees must be based on the system established under 156-15 this subsection. (V.A.C.S. Arts. 5221b-9(a) (part), (e).) 156-16 Sec. 202.042. ACCESS TO CERTAIN CRIMINAL HISTORY RECORD 156-17 INFORMATION; OFFENSE; PENALTY. (a) The commission may request and 156-18 receive criminal history record information maintained by the 156-19 Department of Public Safety, the Federal Bureau of Investigation 156-20 Identification Division, or another law enforcement agency to 156-21 investigate an applicant for employment in a security sensitive 156-22 position. 156-23 (b) The commission shall adopt a uniform method of obtaining 156-24 criminal history information that requires the commission to submit 156-25 to the Department of Public Safety or another law enforcement 156-26 agency either a complete set of fingerprints or the complete name, 156-27 driver's license number, and social security number of the person 157-1 being investigated. If the commission does not obtain relevant 157-2 information from state or local law enforcement agencies in 157-3 response to a submission under this subsection, the commission may 157-4 submit either the fingerprints or the required information to the 157-5 Federal Bureau of Investigation Identification Division. 157-6 (c) The commission may request an applicant for a security 157-7 sensitive position to provide either a complete set of fingerprints 157-8 or the applicant's complete name, driver's license number, and 157-9 social security number. The commission may deny employment in a 157-10 security sensitive position to an applicant who fails to provide 157-11 the requested fingerprints or information. 157-12 (d) All information received by the commission under this 157-13 section is privileged and confidential and is for the exclusive use 157-14 of the commission. The information may not be released or 157-15 otherwise disclosed to any other person except on court order or 157-16 with the written consent of the person being investigated. 157-17 (e) After the commission hires an applicant for a security 157-18 sensitive position, the commission shall seal the criminal history 157-19 record information regarding the applicant and shall deliver the 157-20 information to the custody of the agency administrator or the 157-21 person designated by the agency administrator, who shall maintain 157-22 the information as provided by commission rule. The commission 157-23 shall destroy the criminal history record information of an 157-24 applicant who is not hired. 157-25 (f) The commission shall adopt rules governing the custody 157-26 and use of information obtained under this section. 157-27 (g) The commission may use information obtained under this 158-1 section only to evaluate an applicant for employment in a security 158-2 sensitive position. A security sensitive position must be so 158-3 identified in the job description and in the announcement of the 158-4 position. 158-5 (h) In this section, "security sensitive position" means a 158-6 position of employment that requires as an incident of the 158-7 employment: 158-8 (1) the performance of duties in: 158-9 (A) the automated data processing, controller, 158-10 or fiscal department; or 158-11 (B) a position designated to handle receipts or 158-12 disbursements of cash in a local or regional office; 158-13 (2) access to a computer terminal, if the information 158-14 available from the terminal is required by law to be confidential; 158-15 (3) access to a master key for access to the premises 158-16 other than during regular working hours; or 158-17 (4) the performance of duties considered to be 158-18 security sensitive by the state auditor or the Inspector General of 158-19 the United States Department of Labor. 158-20 (i) A person commits an offense if the person releases or 158-21 discloses any information received under this section in violation 158-22 of Subsection (d). An offense under this subsection is a Class A 158-23 misdemeanor. (V.A.C.S. Art. 5221b-9e.) 158-24 Sec. 202.043. STANDARDS OF CONDUCT INFORMATION. The 158-25 commission shall provide to its members and employees of the 158-26 commission, as often as necessary, information regarding their 158-27 responsibilities under applicable laws relating to standards of 159-1 conduct for state officers or employees. (V.A.C.S. Art. 159-2 5221b-9(f).) 159-3 (Sections 202.044-202.060 reserved for expansion) 159-4 SUBCHAPTER D. GENERAL POWERS AND DUTIES OF COMMISSION 159-5 Sec. 202.061. GENERAL POWERS AND DUTIES. (a) The 159-6 commission shall administer this subtitle and may adopt rules, make 159-7 expenditures, require reports, conduct investigations, and take 159-8 other action it considers necessary or suitable to fulfill that 159-9 duty. 159-10 (b) The commission shall determine its own organization and 159-11 methods of procedure in accordance with this subtitle. (V.A.C.S. 159-12 Art. 5221b-9(a) (part).) 159-13 Sec. 202.062. FINDINGS. The commission shall make findings 159-14 and determine issues under this subtitle as necessary to administer 159-15 this subtitle. (New.) 159-16 Sec. 202.063. STATE AND FEDERAL COOPERATION. (a) The 159-17 commission is designated as the agency of this state for 159-18 implementation in this state of the Wagner-Peyser Act (29 U.S.C. 159-19 Section 49 et seq.). 159-20 (b) In administering this subtitle the commission shall: 159-21 (1) cooperate with the secretary under the Social 159-22 Security Act (42 U.S.C. Section 301 et seq.) to the fullest extent 159-23 consistent with this subtitle; 159-24 (2) make reports in the form and containing 159-25 information required by the secretary and comply with provisions 159-26 the secretary finds necessary to ensure that the reports are 159-27 correct and verified; 160-1 (3) comply with the regulations prescribed by the 160-2 secretary governing the expenditures of funds allotted and paid to 160-3 the state under Title III of the Social Security Act (42 U.S.C. 160-4 Section 501 et seq.) to assist in the administration of this 160-5 subtitle; and 160-6 (4) cooperate with any official or agency of the 160-7 United States having powers or duties under the Wagner-Peyser Act 160-8 (29 U.S.C. Section 49 et seq.) and take all actions necessary to 160-9 secure to this state the benefits of that Act and necessary to 160-10 perform the commission's duties under Subchapter F. 160-11 (c) The commission may provide reasonable cooperation to 160-12 each agency of the United States charged with the administration of 160-13 any unemployment insurance law. 160-14 (d) On request, the commission shall furnish to an agency of 160-15 the United States responsible for the administration of public 160-16 works or assistance through public employment the name, address, 160-17 ordinary occupation, and employment status of each recipient of 160-18 benefits and shall inform the agency of the recipient's right to 160-19 further benefits under this subtitle. 160-20 (e) In this section, "secretary" means the United States 160-21 secretary of labor. (V.A.C.S. Arts. 5221b-9(k), 5221b-9a (part), 160-22 5221b-10(a) (part).) 160-23 Sec. 202.064. INTERPRETER SERVICES; BILINGUAL FORMS. (a) 160-24 The commission shall provide language interpreters for agency 160-25 programs through a comprehensive language services program for 160-26 persons whose primary language is Spanish and may provide language 160-27 interpreters through the program for agency programs for persons 161-1 whose primary language is other than Spanish or English. 161-2 (b) The language services program must provide services, 161-3 including translation services, both to employers and to employees 161-4 or prospective employees. 161-5 (c) The commission shall print essential agency forms and 161-6 instructional information in both English and Spanish. A form 161-7 shall be written in Spanish only when revised or when new or 161-8 additional forms are printed or prepared. (V.A.C.S. Art. 161-9 5221b-9c.) 161-10 Sec. 202.065. ANNUAL REPORT. (a) As soon as practicable 161-11 after the close of each fiscal year, the commission shall submit to 161-12 the governor and the legislature a report on the administration and 161-13 operation of the commission's activities under this subtitle during 161-14 the preceding fiscal year, including each recommendation of the 161-15 commission for amendments to this subtitle. 161-16 (b) The annual report must include: 161-17 (1) a balance sheet of the money in the compensation 161-18 fund; 161-19 (2) the annual report prepared by the state advisory 161-20 council under Section 202.025(e); 161-21 (3) the commission's long-term and short-term 161-22 objectives; and 161-23 (4) any other information requested by the legislature 161-24 or the Legislative Budget Board. (V.A.C.S. Arts. 5221b-8(e) 161-25 (part), 5221b-9(b) (part).) 161-26 Sec. 202.066. PUBLICATIONS. (a) The commission shall 161-27 print: 162-1 (1) the text of this subtitle; 162-2 (2) the commission's rules; and 162-3 (3) the commission's annual report to the governor and 162-4 the legislature. 162-5 (b) The commission shall prepare information describing the 162-6 functions of the commission and the commission's procedures by 162-7 which complaints are filed with and resolved by the commission. 162-8 (c) The commission shall make the information required to be 162-9 printed or prepared under this section and any other material that 162-10 the commission determines to be relevant and suitable for 162-11 distribution available to the public and appropriate state 162-12 agencies. (V.A.C.S. Art. 5221b-9(d).) 162-13 (Sections 202.067-202.070 reserved for expansion) 162-14 SUBCHAPTER E. INVESTIGATIVE AND SUBPOENA POWERS 162-15 Sec. 202.071. INVESTIGATIVE AND SUBPOENA POWERS. (a) In 162-16 discharging duties imposed under this subtitle, an appeal tribunal 162-17 established under Section 212.101, a member of the commission, or a 162-18 representative authorized by the commission may: 162-19 (1) administer oaths; 162-20 (2) take depositions; 162-21 (3) certify to official acts; and 162-22 (4) issue subpoenas to compel the attendance of 162-23 witnesses and the production of books, papers, correspondence, 162-24 memoranda, and other records considered necessary as evidence in 162-25 connection with a disputed claim or the administration of this 162-26 subtitle. 162-27 (b) The commission's authority to conduct an investigation, 163-1 assemble information, or require the submission of documentary or 163-2 oral testimony is limited to the power necessary to properly 163-3 administer this subtitle. 163-4 (c) Notwithstanding Section 154.004, Local Government Code, 163-5 or any other law, the commission shall pay the fee of a sheriff or 163-6 constable who serves a subpoena under this section. The fee shall 163-7 be paid from the commission's administrative funds, and the 163-8 comptroller shall issue a warrant for the fee as directed by the 163-9 commission. (V.A.C.S. Arts. 5221b-9(h), 5221b-21.) 163-10 Sec. 202.072. ENFORCEMENT OF SUBPOENA; OFFENSE; PENALTIES. 163-11 (a) If a person is guilty of contumacy or refuses to obey a 163-12 subpoena issued by a member of the commission or an authorized 163-13 representative of the commission, a county or district court, on 163-14 application by the commission or its authorized representative, may 163-15 order the person to appear before a member of the commission, the 163-16 commission, or its authorized representative to produce evidence or 163-17 give testimony regarding the matter under investigation or in 163-18 question. Only a court within the jurisdiction where the 163-19 commission conducts the inquiry or where the person is found, 163-20 resides, or transacts business may issue the order. 163-21 (b) Failure to obey a court order issued under Subsection 163-22 (a) is punishable as contempt. 163-23 (c) A person commits an offense if the person, without just 163-24 cause, does not obey a subpoena of the commission. An offense 163-25 under this subsection is punishable by a fine of not less than 163-26 $200, by confinement for not more than 60 days, or by both fine and 163-27 confinement. Each day of violation constitutes a separate offense. 164-1 (V.A.C.S. Art. 5221b-9(i).) 164-2 Sec. 202.073. SELF-INCRIMINATION. (a) In any cause or 164-3 proceeding before the commission, a person is not excused from 164-4 attending and testifying, from producing books, papers, 164-5 correspondence, memoranda, and other records, or from obeying a 164-6 subpoena of the commission, a member of the commission, or a 164-7 representative of the commission on the ground that the testimony 164-8 or evidence, documentary or otherwise, may tend to incriminate the 164-9 person or subject the person to a penalty or forfeiture. 164-10 (b) A person may not be prosecuted or subjected to penalty 164-11 or forfeiture for or because of a transaction or thing for which 164-12 the person is compelled to testify or produce evidence after having 164-13 claimed a privilege against self-incrimination except for perjury. 164-14 (V.A.C.S. Art. 5221b-9(j) (part).) 164-15 Sec. 202.074. DEFAMATION. An oral or written statement made 164-16 to the commission or to an employee of the commission in connection 164-17 with the discharge of the commission's or the employee's duties 164-18 under this subtitle may not be the basis for an action for 164-19 defamation of character. (V.A.C.S. Art. 5221b-9(j) (part).) 164-20 (Sections 202.075-202.080 reserved for expansion) 164-21 SUBCHAPTER F. EMPLOYMENT SERVICE 164-22 Sec. 202.081. TEXAS STATE EMPLOYMENT SERVICE. (a) The 164-23 Texas State Employment Service is a division of the commission. 164-24 (b) The commission, through the division, shall establish 164-25 and maintain free public employment offices as necessary to perform 164-26 the commission's duties under the Wagner-Peyser Act (29 U.S.C. 164-27 Section 49 et seq.). The number and locations of the public 165-1 employment offices shall be determined by the commission as 165-2 necessary for the proper administration of this subtitle. 165-3 (V.A.C.S. Art. 5221b-10(a) (part).) 165-4 Sec. 202.082. EMPLOYMENT SERVICES AGREEMENTS. (a) To 165-5 establish and maintain public employment offices under this 165-6 subchapter, the commission may enter into an agreement with any 165-7 political subdivision of the state or with a private or nonprofit 165-8 organization and, as a part of the agreement, accept money, 165-9 services, or quarters as a contribution to the employment service 165-10 account. 165-11 (b) To establish and maintain, or assist in the 165-12 establishment and maintenance of, public employment offices within 165-13 a county or other political subdivision of this state, the 165-14 commissioners court of the county or the governing body of the 165-15 other political subdivision may enter into agreements with the 165-16 Texas State Employment Service on terms and conditions agreed to by 165-17 the commissioners court or other governing body and the Texas State 165-18 Employment Service. The county or other political subdivision may 165-19 employ means and appropriate and spend funds as necessary to 165-20 establish and operate the public employment offices, and may 165-21 provide, as part of the agreement, payment for: 165-22 (1) the rent of premises; 165-23 (2) services rendered; 165-24 (3) the purchase of equipment; and 165-25 (4) any other purpose considered advisable by the 165-26 commissioners court or other governing body. 165-27 (c) The penalty provisions of this subtitle, including the 166-1 provisions of Chapters 213 and 214, do not apply to an action or 166-2 omission under Subsection (b). (V.A.C.S. Arts. 5221a-3, 166-3 5221b-10(b) (part).) 166-4 (Sections 202.083-202.090 reserved for expansion) 166-5 SUBCHAPTER G. RECORDS 166-6 Sec. 202.091. EMPLOYEE RECORDS OF EMPLOYING UNIT; OFFENSE; 166-7 PENALTY. (a) Each employing unit shall keep employment records 166-8 containing information as prescribed by the commission and as 166-9 necessary for the proper administration of this subtitle. The 166-10 records are open to inspection and may be copied by the commission 166-11 or an authorized representative of the commission at any reasonable 166-12 time and as often as necessary. 166-13 (b) The commission may require from an employing unit sworn 166-14 or unsworn reports regarding persons employed by the employing unit 166-15 as necessary for the effective administration of this subtitle. 166-16 (c) Employment information thus obtained or otherwise 166-17 secured may not be published and is not open to public inspection, 166-18 other than to a public employee in the performance of public 166-19 duties, except as the commission considers necessary for the proper 166-20 administration of this subtitle. 166-21 (d) A person commits an offense if the person is an employee 166-22 or member of the commission who violates any provision of this 166-23 section. An offense under this subsection is punishable by a fine 166-24 of not less than $20 nor more than $200, confinement in jail for 166-25 not more than 90 days, or both fine and confinement. (V.A.C.S. 166-26 Art. 5221b-9(g).) 166-27 Sec. 202.092. COPIES OF RECORDS. (a) The commission may 167-1 furnish a photostatic or certified copy of a record in its 167-2 possession to a person entitled to receive a copy of the record on 167-3 application by the person. 167-4 (b) The commission shall charge a reasonable fee in an 167-5 amount set by the commission for a copy of a record furnished under 167-6 this section. (V.A.C.S. Art. 5221b-11(b).) 167-7 Sec. 202.093. ACCESS TO RECORDS BY RAILROAD RETIREMENT 167-8 BOARD. (a) The commission may make state records relating to the 167-9 administration of this subtitle available to the Railroad 167-10 Retirement Board. 167-11 (b) The commission may furnish the Railroad Retirement Board 167-12 with copies of the records requested by the board at the board's 167-13 expense. (V.A.C.S. Art. 5221b-9a (part).) 167-14 Sec. 202.094. DESTRUCTION OF RECORDS. The commission may 167-15 destroy any of its records under safeguards that protect the 167-16 confidential nature of the records if the commission: 167-17 (1) determines that the records no longer serve a 167-18 legal, administrative, or other useful purpose; or 167-19 (2) has made an authentic reproduction of the records 167-20 to be destroyed. (V.A.C.S. Art. 5221b-9b.) 167-21 CHAPTER 203. FINANCING AND FUNDS 167-22 SUBCHAPTER A. GENERAL PROVISIONS 167-23 Sec. 203.001. DEFINITIONS 167-24 Sec. 203.002. DUTIES OF TREASURER AND COMPTROLLER 167-25 Sec. 203.003. TREASURER'S BOND LIABILITY 167-26 Sec. 203.004. DEPOSIT OF FUNDS; EXCEPTION 167-27 Sec. 203.005. APPLICATION OF OTHER LAW 168-1 (Sections 203.006-203.020 reserved for expansion) 168-2 SUBCHAPTER B. UNEMPLOYMENT COMPENSATION FUND 168-3 Sec. 203.021. UNEMPLOYMENT COMPENSATION FUND; 168-4 SEPARATE ACCOUNTS 168-5 Sec. 203.022. COMPOSITION AND USE OF CLEARING ACCOUNT 168-6 Sec. 203.023. REQUISITIONS FROM FEDERAL TRUST FUND; 168-7 BENEFIT ACCOUNT 168-8 Sec. 203.024. DEPOSITS 168-9 Sec. 203.025. USE OF REQUISITIONED MONEY 168-10 Sec. 203.026. ACCOUNTS FROM WHICH BENEFITS AND 168-11 REFUNDS ARE PAID 168-12 Sec. 203.027. UNEXPENDED BALANCE OF BENEFIT ACCOUNT 168-13 Sec. 203.028. SOLVENCY OF COMPENSATION FUND; RESERVE 168-14 Sec. 203.029. REFUND OF CONTRIBUTIONS TO FEDERAL 168-15 INSTRUMENTALITY 168-16 Sec. 203.030. REIMBURSEMENT FROM OR TO COMPENSATION FUND 168-17 UNDER RECIPROCAL ARRANGEMENT 168-18 Sec. 203.031. NONLIABILITY OF STATE 168-19 Sec. 203.032. MANAGEMENT OF COMPENSATION FUND ON DISCONTINUANCE 168-20 OF FEDERAL TRUST FUND 168-21 (Sections 203.033-203.100 reserved for expansion) 168-22 SUBCHAPTER C. ADVANCES FROM FEDERAL TRUST FUND 168-23 Sec. 203.101. LIMIT ON APPLICATION FOR ADVANCE 168-24 Sec. 203.102. ADVANCE INTEREST TRUST FUND 168-25 Sec. 203.103. TRANSFER OF INCOME FROM ADVANCE INTEREST TRUST 168-26 FUND TO SPECIAL ADMINISTRATION FUND 168-27 Sec. 203.104. TRANSFER FROM ADVANCE INTEREST TRUST FUND TO 169-1 COMPENSATION FUND 169-2 Sec. 203.105. ADDITIONAL TAX 169-3 (Sections 203.106-203.150 reserved for expansion) 169-4 SUBCHAPTER D. ADMINISTRATION FUND 169-5 Sec. 203.151. ADMINISTRATION FUND 169-6 Sec. 203.152. USE OF ADMINISTRATION FUND 169-7 Sec. 203.153. EMPLOYMENT SERVICE FINANCING 169-8 Sec. 203.154. REIMBURSEMENT OF ADMINISTRATION FUND 169-9 (Sections 203.155-203.200 reserved for expansion) 169-10 SUBCHAPTER E. SPECIAL ADMINISTRATION FUND 169-11 Sec. 203.201. SPECIAL ADMINISTRATION FUND 169-12 Sec. 203.202. USE OF SPECIAL ADMINISTRATION FUND 169-13 Sec. 203.203. REFUND OF PENALTIES 169-14 CHAPTER 203. FINANCING AND FUNDS 169-15 SUBCHAPTER A. GENERAL PROVISIONS 169-16 Sec. 203.001. DEFINITIONS. In this chapter: 169-17 (1) "Administration fund" means the unemployment 169-18 compensation administration fund created under Section 203.151. 169-19 (2) "Federal trust fund" means the unemployment trust 169-20 fund created under Section 904, Social Security Act (42 U.S.C. 169-21 Section 1104). 169-22 (3) "Special administration fund" means the 169-23 unemployment compensation special administration fund created under 169-24 Section 203.201. 169-25 (4) "Treasurer" means the state treasurer. (New.) 169-26 Sec. 203.002. DUTIES OF TREASURER AND COMPTROLLER. (a) The 169-27 treasurer is treasurer and custodian of the compensation fund and 170-1 the special administration fund and shall administer the funds in 170-2 accordance with the directions of the commission. 170-3 (b) The comptroller shall issue warrants on the compensation 170-4 fund in accordance with rules adopted by the commission. 170-5 (c) The comptroller shall issue warrants on the special 170-6 administration fund in accordance with the directions of the 170-7 commission. (V.A.C.S. Arts. 5221b-7(b) (part), 5221b-22a(a) 170-8 (part).) 170-9 Sec. 203.003. TREASURER'S BOND LIABILITY. The treasurer is 170-10 liable on the treasurer's official bond for the faithful 170-11 performance of the treasurer's duties under this subtitle in 170-12 connection with the compensation fund, the administration fund, and 170-13 the special administration fund. This liability is in addition to 170-14 liability on any separate bond that the treasurer may give. 170-15 (V.A.C.S. Arts. 5221b-7(b) (part), 5221b-11(a) (part), 5221b-22a(c) 170-16 (part).) 170-17 Sec. 203.004. DEPOSIT OF FUNDS; EXCEPTION. All money paid 170-18 to the commission under this subtitle: 170-19 (1) shall be deposited in the treasury unless: 170-20 (A) a state or federal law prohibits deposit in 170-21 the treasury; or 170-22 (B) the deposit would result in the loss of any 170-23 federal funds; and 170-24 (2) may be used only for the administration of this 170-25 subtitle. (V.A.C.S. Art. 5221b-9(l).) 170-26 Sec. 203.005. APPLICATION OF OTHER LAW. Money in the 170-27 compensation fund, the administration fund, and the special 171-1 administration fund shall be deposited, administered, and disbursed 171-2 in the same manner and under the same requirements as provided by 171-3 law for other special funds in the state treasury. (V.A.C.S. Arts. 171-4 5221b-7(b) (part), 5221b-11(a) (part), 5221b-22a(c) (part).) 171-5 (Sections 203.006-203.020 reserved for expansion) 171-6 SUBCHAPTER B. UNEMPLOYMENT COMPENSATION FUND 171-7 Sec. 203.021. UNEMPLOYMENT COMPENSATION FUND; SEPARATE 171-8 ACCOUNTS. (a) The unemployment compensation fund is a special 171-9 fund. 171-10 (b) The compensation fund consists of: 171-11 (1) contributions collected under this subtitle; 171-12 (2) interest earned on money in the compensation fund; 171-13 (3) property or securities acquired through the use of 171-14 money in the compensation fund; 171-15 (4) earnings of property or securities described by 171-16 Subdivision (3); 171-17 (5) amounts recovered for losses sustained by the 171-18 compensation fund; and 171-19 (6) other money received for the compensation fund 171-20 from any other source. 171-21 (c) Money in the compensation fund shall be mingled and 171-22 undivided. 171-23 (d) The treasurer shall maintain in the compensation fund: 171-24 (1) a clearing account; 171-25 (2) a federal trust fund account; and 171-26 (3) a benefit account. (V.A.C.S. Arts. 5221b-7(a) 171-27 (part), (b) (part).) 172-1 Sec. 203.022. COMPOSITION AND USE OF CLEARING ACCOUNT. (a) 172-2 On receipt of any money payable to the compensation fund, the 172-3 commission shall forward the money to the treasurer, who shall 172-4 immediately deposit it in the clearing account. 172-5 (b) Except as provided by Section 203.026, money in the 172-6 clearing account, after it has cleared, shall be immediately 172-7 deposited with the United States secretary of the treasury to the 172-8 credit of this state's account in the federal trust fund. This 172-9 section prevails over any conflicting state statute relating to the 172-10 deposit, administration, release, or disbursement of money in the 172-11 possession or custody of this state. (V.A.C.S. Art. 5221b-7(b) 172-12 (part).) 172-13 Sec. 203.023. REQUISITIONS FROM FEDERAL TRUST FUND; BENEFIT 172-14 ACCOUNT. (a) The commission periodically shall requisition from 172-15 the federal trust fund amounts the commission considers necessary 172-16 for the payment of benefits and refunds for a reasonable period. 172-17 The commission may not requisition an amount exceeding the balance 172-18 of this state's account in the federal trust fund. 172-19 (b) The benefit account is composed of money requisitioned 172-20 from this state's account in the federal trust fund. 172-21 (c) On receipt of money requisitioned from the federal trust 172-22 fund, the treasurer shall deposit it in the benefit account. 172-23 (V.A.C.S. Arts. 5221b-7(b) (part), (c) (part).) 172-24 Sec. 203.024. DEPOSITS. (a) Except as otherwise provided 172-25 by this subchapter, the treasurer, under the direction of the 172-26 commission, may deposit money credited to the clearing and benefit 172-27 accounts in a bank or public depository in which general funds of 173-1 this state may be deposited. 173-2 (b) A public deposit insurance charge or premium may not be 173-3 paid out of the compensation fund. (V.A.C.S. Art. 5221b-7(b) 173-4 (part).) 173-5 Sec. 203.025. USE OF REQUISITIONED MONEY. (a) The 173-6 commission shall direct the administration of the compensation fund 173-7 exclusively for the purposes of this subtitle. 173-8 (b) Money requisitioned from this state's account in the 173-9 federal trust fund may be used only for the payment of benefits or 173-10 for refunds as provided by Sections 203.023, 203.026, 203.027, and 173-11 203.203 and by Subchapter B, Chapter 210, and Subchapter E, Chapter 173-12 213, except that money credited to this state's account as provided 173-13 by Section 903, Social Security Act (42 U.S.C. Section 1103), may 173-14 be requisitioned and used by the commission only to the extent and 173-15 under the conditions prescribed by that section. (V.A.C.S. Arts. 173-16 5221b-7(a) (part), (c) (part).) 173-17 Sec. 203.026. ACCOUNTS FROM WHICH BENEFITS AND REFUNDS ARE 173-18 PAID. (a) The comptroller may issue a warrant for a benefit only 173-19 from the benefit account. 173-20 (b) As directed by the commission, the comptroller may issue 173-21 a warrant for a refund as provided by Subchapter E, Chapter 213, 173-22 from the benefit account or the clearing account. 173-23 (c) An expenditure from the benefit account or a refund from 173-24 the clearing account is not subject to a law that requires 173-25 itemization or other formal release by a state officer of money in 173-26 the officer's custody. 173-27 (d) A warrant issued for the payment of a benefit or a 174-1 refund must bear the signatures of: 174-2 (1) the treasurer; and 174-3 (2) a member of the commission or the commission's 174-4 authorized agent for that purpose. (V.A.C.S. Arts. 5221b-7(b) 174-5 (part), (c) (part).) 174-6 Sec. 203.027. UNEXPENDED BALANCE OF BENEFIT ACCOUNT. Money 174-7 requisitioned from the federal trust fund that remains unclaimed or 174-8 unpaid in the benefit account after the end of the period for which 174-9 the money was requisitioned shall be, in the commission's 174-10 discretion: 174-11 (1) deducted from an estimate for the succeeding 174-12 periods and used to pay benefits and refunds in those periods; or 174-13 (2) redeposited in the federal trust fund as provided 174-14 by Section 203.022. (V.A.C.S. Art. 5221b-7(c) (part).) 174-15 Sec. 203.028. SOLVENCY OF COMPENSATION FUND; RESERVE. (a) 174-16 If the commission believes that a change in contribution or benefit 174-17 rates will become necessary to protect the solvency of the 174-18 compensation fund, it shall inform the governor and legislature of 174-19 its belief and when the change will become necessary and shall make 174-20 recommendations for the necessary change. 174-21 (b) The commission, if possible, shall maintain in the 174-22 compensation fund a reserve against the liability to pay benefits 174-23 in future years in excess of current contributions. The commission 174-24 shall create the reserve according to accepted actuarial principles 174-25 using statistics of employment, business activity, and other 174-26 relevant factors for the longest possible period. (V.A.C.S. Art. 174-27 5221b-9(b) (part).) 175-1 Sec. 203.029. REFUND OF CONTRIBUTIONS TO FEDERAL 175-2 INSTRUMENTALITY. If this state is not certified for any year by 175-3 the United States secretary of labor as required under Section 175-4 3304(c), Internal Revenue Code of 1986 (26 U.S.C. Section 3304(c)), 175-5 the commission shall refund from the compensation fund a payment 175-6 required of an instrumentality of the federal government for that 175-7 year in the same manner and within the same period as provided by 175-8 Subchapter E, Chapter 213, for contributions erroneously collected. 175-9 (V.A.C.S. Art. 5221b-17(g)(5)(M) (part).) 175-10 Sec. 203.030. REIMBURSEMENT FROM OR TO COMPENSATION FUND 175-11 UNDER RECIPROCAL ARRANGEMENT. (a) The commission may reimburse a 175-12 state or federal agency from the compensation fund or receive a 175-13 reimbursement from a state or federal agency for the compensation 175-14 fund under an arrangement under Section 211.003. 175-15 (b) A reimbursement paid from the compensation fund under 175-16 this section is a benefit for the purposes of this subtitle. 175-17 (V.A.C.S. Art. 5221b-15a(c).) 175-18 Sec. 203.031. NONLIABILITY OF STATE. Benefits are due and 175-19 payable only to the extent money is available for that purpose in 175-20 the compensation fund. Neither this state nor the commission is 175-21 liable for any amount in excess of the amount in that fund. 175-22 (V.A.C.S. Art. 5221b-16 (part).) 175-23 Sec. 203.032. MANAGEMENT OF COMPENSATION FUND ON 175-24 DISCONTINUANCE OF FEDERAL TRUST FUND. (a) To the extent that a 175-25 provision of this subchapter relates to the federal trust fund, the 175-26 provision is operative only as long as: 175-27 (1) the federal trust fund exists; and 176-1 (2) the United States secretary of the treasury 176-2 maintains for this state a separate book account of all funds 176-3 deposited in the federal trust fund by this state for benefit 176-4 purposes, with this state's proportionate share of the earnings of 176-5 the federal trust fund, from which no other state is permitted to 176-6 make withdrawals. 176-7 (b) If the federal trust fund ceases to exist or the 176-8 secretary of the treasury ceases to maintain a separate book 176-9 account for this state in the federal trust fund, all money, 176-10 property, or securities in the federal trust fund that belong to 176-11 the compensation fund shall be transferred to the treasurer. The 176-12 treasurer shall hold, invest, transfer, deposit, and release the 176-13 money, property, or securities in a manner approved by the 176-14 commission in accordance with this subtitle. 176-15 (c) Money held by the treasurer under Subsection (b) shall 176-16 be invested in readily marketable bonds or other interest-bearing 176-17 obligations of the United States of America. The money shall be 176-18 invested in such a manner that the assets of the compensation fund 176-19 are readily convertible at all times into cash as needed for the 176-20 payment of benefits. 176-21 (d) The treasurer may dispose of securities or other 176-22 property belonging to the compensation fund only under the 176-23 direction of the commission. (V.A.C.S. Art. 5221b-7(e).) 176-24 (Sections 203.033-203.100 reserved for expansion) 176-25 SUBCHAPTER C. ADVANCES FROM FEDERAL TRUST FUND 176-26 Sec. 203.101. LIMIT ON APPLICATION FOR ADVANCE. In any 176-27 application for an advance from the federal trust fund (Section 177-1 1201, Social Security Act (42 U.S.C. Section 1321)), the governor 177-2 shall limit the amount of the application to an amount that, when 177-3 added to previous advances, does not exceed the amount for which 177-4 principal and interest may be paid from taxes on employers. 177-5 (V.A.C.S. Art. 5221b-7c(b).) 177-6 Sec. 203.102. ADVANCE INTEREST TRUST FUND. (a) The advance 177-7 interest trust fund is a trust fund in the custody of the 177-8 treasurer. 177-9 (b) The governor may use money in the advance interest trust 177-10 fund without legislative appropriation to: 177-11 (1) pay interest incurred on advances from the federal 177-12 trust fund; and 177-13 (2) repay temporary transfers of surplus cash that may 177-14 be made between the advance interest trust fund and other funds. 177-15 (V.A.C.S. Art. 5221b-7c(a) (part).) 177-16 Sec. 203.103. TRANSFER OF INCOME FROM ADVANCE INTEREST TRUST 177-17 FUND TO SPECIAL ADMINISTRATION FUND. The treasurer and the 177-18 comptroller shall transfer all income earned after September 1, 177-19 1988, from investment of the advance interest trust fund to the 177-20 special administration fund for the administration of Chapters 51, 177-21 61, and 62. (V.A.C.S. Art. 5221b-7c(a) (part).) 177-22 Sec. 203.104. TRANSFER FROM ADVANCE INTEREST TRUST FUND TO 177-23 COMPENSATION FUND. The governor may authorize the commission to 177-24 transfer money from the advance interest trust fund to the 177-25 compensation fund if the governor: 177-26 (1) on the advice of the commission, determines that 177-27 funds in the compensation fund will be depleted at the time payment 178-1 on an advance from the federal trust fund is due and that depletion 178-2 of the funds will cause the loss of some portion of the credit 178-3 received by employers against their federal unemployment tax rate; 178-4 or 178-5 (2) determines that payment of interest on a federal 178-6 loan may be avoided by keeping the balance of the compensation fund 178-7 positive. (V.A.C.S. Art. 5221b-7c(a) (part).) 178-8 Sec. 203.105. ADDITIONAL TAX. (a) In addition to other 178-9 taxes, a separate tax is imposed on each employer eligible for an 178-10 experience tax rate if after January 1 of a year: 178-11 (1) an interest payment on an advance from the federal 178-12 trust fund will be due; and 178-13 (2) the estimated amount necessary to make the 178-14 interest payment will not be available otherwise. 178-15 (b) The commission shall set the rate of an additional tax 178-16 under this section in an amount sufficient to ensure timely payment 178-17 of interest, but not exceeding two-tenths of one percent. The rate 178-18 applies to the same wage base to which the employer's unemployment 178-19 tax applies for that year. 178-20 (c) An additional tax under this section is due on the date 178-21 set by the commission and is subject to the same penalty for late 178-22 payment as the unemployment tax. 178-23 (d) Revenue from an additional tax under this section shall 178-24 be deposited to the credit of the advance interest trust fund. 178-25 (V.A.C.S. Art. 5221b-7c(d).) 178-26 (Sections 203.106-203.150 reserved for expansion) 178-27 SUBCHAPTER D. ADMINISTRATION FUND 179-1 Sec. 203.151. ADMINISTRATION FUND. (a) The unemployment 179-2 compensation administration fund is a special fund in the state 179-3 treasury. 179-4 (b) The administration fund consists of money: 179-5 (1) appropriated to the administration fund by this 179-6 state; 179-7 (2) received from the United States or any federal 179-8 agency for the administration of this subtitle; 179-9 (3) collected by the commission as fees for furnishing 179-10 photostatic or certified copies of commission records; 179-11 (4) collected by the commission as fees for conducting 179-12 audits under the authority granted by this subtitle; 179-13 (5) received from any federal agency or any agency of 179-14 another state as compensation for services or facilities supplied 179-15 to the agency; 179-16 (6) received under any surety bond or insurance policy 179-17 or from other sources: 179-18 (A) for losses sustained by the administration 179-19 fund; or 179-20 (B) by reason of damage to equipment or supplies 179-21 purchased with money in the administration fund; 179-22 (7) received as proceeds from the sale or disposition 179-23 of equipment or supplies that are no longer necessary for the 179-24 proper administration of this subtitle, if the equipment or 179-25 supplies were purchased with money in the administration fund; and 179-26 (8) received from any other source for the 179-27 administration of this subtitle. (V.A.C.S. Art. 5221b-11(a) 180-1 (part).) 180-2 Sec. 203.152. USE OF ADMINISTRATION FUND. (a) Money 180-3 credited to the administration fund may be used by the commission 180-4 as provided by this subtitle and may not be transferred to any 180-5 other fund. 180-6 (b) Money in the administration fund received from the 180-7 federal government or a federal agency may be spent only for the 180-8 purposes and in the amounts found necessary by the United States 180-9 secretary of labor or that secretary's successor for the proper and 180-10 efficient administration of this subtitle. (V.A.C.S. Art. 180-11 5221b-11(a) (part).) 180-12 Sec. 203.153. EMPLOYMENT SERVICE FINANCING. Money received 180-13 by the state under the Wagner-Peyser Act (29 U.S.C. Section 49 et 180-14 seq.) shall be deposited to the credit of the employment service 180-15 account of the administration fund. The money in the account may 180-16 be used by the commission as provided by Subchapter F of Chapter 180-17 202 and the Wagner-Peyser Act. (V.A.C.S. Art. 5221b-10(b) (part).) 180-18 Sec. 203.154. REIMBURSEMENT OF ADMINISTRATION FUND. (a) If 180-19 the United States secretary of labor or that secretary's successor 180-20 finds that money received from the secretary or the secretary's 180-21 successor under Title III of the Social Security Act (42 U.S.C. 180-22 Section 501 et seq.) or any other federal money granted to the 180-23 commission for the administration of this subtitle has been lost or 180-24 spent for a purpose other than, or in an amount in excess of, that 180-25 found necessary for the proper administration of this subtitle by 180-26 the secretary or the secretary's successor, the money shall be 180-27 replaced by money appropriated for that purpose from the general 181-1 funds of this state to the administration fund for expenditure as 181-2 provided by Section 203.152. 181-3 (b) On receipt of notice that the secretary or the 181-4 secretary's successor has made a determination described in 181-5 Subsection (a), the commission shall promptly report the amount 181-6 needed for reimbursement to the governor. The governor, at the 181-7 earliest opportunity, shall submit to the legislature a request for 181-8 the appropriation of that amount. (V.A.C.S. Art. 5221b-11(c).) 181-9 (Sections 203.155-203.200 reserved for expansion) 181-10 SUBCHAPTER E. SPECIAL ADMINISTRATION FUND 181-11 Sec. 203.201. SPECIAL ADMINISTRATION FUND. (a) The 181-12 unemployment compensation special administration fund is a special 181-13 fund. 181-14 (b) The special administration fund consists of: 181-15 (1) all interest and penalties collected under this 181-16 subtitle; 181-17 (2) any amounts received under any surety bond for 181-18 losses sustained by the special administration fund; and 181-19 (3) money transferred under Section 203.103. 181-20 (V.A.C.S. Arts. 5221b-12(c)(1) (part), (2) (part); 5221b-22a(a) 181-21 (part), (c) (part).) 181-22 Sec. 203.202. USE OF SPECIAL ADMINISTRATION FUND. (a) 181-23 Money in the special administration fund may be spent in accordance 181-24 with this subtitle and may be used: 181-25 (1) to pay the cost of reimbursing the benefit account 181-26 in the compensation fund for benefits paid to former employees of 181-27 this state that are based on service for this state, and the cost 182-1 of construction and purchase of buildings and land necessary for 182-2 that administration; 182-3 (2) in the administration of Chapters 51, 61, and 62 182-4 as provided by Section 203.103; 182-5 (3) for payment of interest on advances from the 182-6 federal trust fund; 182-7 (4) as a revolving fund to cover expenditures that are 182-8 necessary and proper under this subtitle and for which federal 182-9 funds have been requested but not received, subject to the charging 182-10 of the expenditures against the federal funds when received; and 182-11 (5) to refund a penalty as provided by Section 182-12 203.203. 182-13 (b) Money in the special administration fund may not be 182-14 spent in any manner that would permit its substitution for, or a 182-15 corresponding reduction in, federal funds that would, in the 182-16 absence of that money, be available to finance expenditures for the 182-17 administration of this subtitle. 182-18 (c) The commission by a resolution entered in its minutes 182-19 may authorize to be charged against the special administration fund 182-20 any expenditure the commission considers proper in the interest of 182-21 good administration of this subtitle if the resolution states that 182-22 no other funds are available for the expenditure. (V.A.C.S. Arts. 182-23 5221b-7c(c), 5221b-22a(a) (part).) 182-24 Sec. 203.203. REFUND OF PENALTIES. A refund under 182-25 Subchapter E, Chapter 213, of a penalty that has been erroneously 182-26 collected and deposited to the credit of the special administration 182-27 fund shall be made, without interest, from the special 183-1 administration fund. (V.A.C.S. Arts. 5221b-7(b) (part), 183-2 5221b-22a(c) (part).) 183-3 CHAPTER 204. CONTRIBUTIONS 183-4 SUBCHAPTER A. GENERAL PROVISIONS 183-5 Sec. 204.001. DEFINITION 183-6 Sec. 204.002. CONTRIBUTION REQUIRED 183-7 Sec. 204.003. CONTRIBUTION NOT DEDUCTED FROM WAGES 183-8 Sec. 204.004. ASSIGNMENT TO MAJOR GROUP 183-9 Sec. 204.005. ESTABLISHMENT OF MAJOR GROUP CONTRIBUTION 183-10 RATE 183-11 Sec. 204.006. INITIAL CONTRIBUTION RATE 183-12 Sec. 204.007. SPECIAL RATE--COTTON GINNING EMPLOYER 183-13 Sec. 204.008. TIME BENEFITS ARE PAID 183-14 Sec. 204.009. APPLICATION TO LABOR AGENT 183-15 (Sections 204.010-204.020 reserved for expansion) 183-16 SUBCHAPTER B. CHARGEBACKS 183-17 Sec. 204.021. CHARGEBACKS 183-18 Sec. 204.022. EXCLUSIONS FROM CHARGEBACKS 183-19 Sec. 204.023. NOTICE SENT AT TIME BENEFITS PAID 183-20 Sec. 204.024. PROTEST OF POTENTIAL CHARGEBACKS 183-21 Sec. 204.025. DECISION AND ADMINISTRATIVE REVIEW OF PROTEST 183-22 Sec. 204.026. JUDICIAL REVIEW OF PROTEST 183-23 Sec. 204.027. NOTICE, PROTEST, AND APPEAL--NOTICE SENT AT TIME 183-24 OF CLAIM 183-25 (Sections 204.028-204.040 reserved for expansion) 183-26 SUBCHAPTER C. GENERAL TAX RATE FOR EXPERIENCE-RATED EMPLOYERS 183-27 Sec. 204.041. TAX ON EXPERIENCE-RATED EMPLOYERS 184-1 Sec. 204.042. TAX RATE TABLE 184-2 Sec. 204.043. EXTENSION OF TAX RATE TABLE UP TO SIX 184-3 PERCENT 184-4 Sec. 204.044. BENEFIT RATIO 184-5 Sec. 204.045. REPLENISHMENT RATIO 184-6 Sec. 204.046. EFFECTIVELY CHARGED BENEFITS 184-7 Sec. 204.047. TAX RATE COMPUTATION DATE FOR EXPERIENCE 184-8 TAX RATE 184-9 (Sections 204.048-204.060 reserved for expansion) 184-10 SUBCHAPTER D. ADJUSTMENTS TO TAX RATE FOR EXPERIENCE-RATED 184-11 EMPLOYERS 184-12 Sec. 204.061. CEILING AND FLOOR OF COMPENSATION FUND 184-13 Sec. 204.062. REPLENISHMENT TAX 184-14 Sec. 204.063. DEFICIT TAX 184-15 Sec. 204.064. DEFICIT RATIO 184-16 Sec. 204.065. CREDIT 184-17 Sec. 204.066. SURPLUS RATIO 184-18 (Sections 204.067-204.080 reserved for expansion) 184-19 SUBCHAPTER E. ACQUISITION OF EXPERIENCE-RATED EMPLOYER 184-20 Sec. 204.081. DEFINITION 184-21 Sec. 204.082. EFFECTIVE DATE OF ACQUISITION 184-22 Sec. 204.083. ACQUISITION OF ALL OF EXPERIENCE-RATED 184-23 ORGANIZATION, TRADE, OR BUSINESS 184-24 Sec. 204.084. ACQUISITION OF PART OF EXPERIENCE-RATED 184-25 ORGANIZATION, TRADE, OR BUSINESS: APPROVAL 184-26 OF TRANSFER OF COMPENSATION EXPERIENCE 184-27 Sec. 204.085. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYER 185-1 Sec. 204.086. COLLECTION OF CONTRIBUTION, PENALTY, OR INTEREST 185-2 FROM SUCCESSOR EMPLOYER 185-3 (Sections 204.087-204.100 reserved for expansion) 185-4 SUBCHAPTER F. SPECIAL CONTRIBUTIONS FOR GOVERNMENTAL EMPLOYERS 185-5 Sec. 204.101. CONTRIBUTION FROM GOVERNMENTAL EMPLOYER 185-6 Sec. 204.102. CONTRIBUTION NOT DEDUCTION FROM WAGES 185-7 Sec. 204.103. RATE OF CONTRIBUTIONS FOR GOVERNMENTAL 185-8 EMPLOYERS 185-9 Sec. 204.104. ACCOUNTING FOR GOVERNMENTAL EMPLOYERS 185-10 Sec. 204.105. PAST DUE CONTRIBUTIONS 185-11 Sec. 204.106. REPORTS AND RECORDS 185-12 CHAPTER 204. CONTRIBUTIONS 185-13 SUBCHAPTER A. GENERAL PROVISIONS 185-14 Sec. 204.001. DEFINITION. In this chapter, "manual" means 185-15 the Standard Industrial Classification Manual published by the 185-16 United States Office of Management and Budget. (V.A.C.S. Art. 185-17 5221b-5(c)(1) (part).) 185-18 Sec. 204.002. CONTRIBUTION REQUIRED. (a) An employer shall 185-19 pay a contribution on wages for employment paid during a calendar 185-20 year or the portion of the calendar year in which the employer is 185-21 subject to this subtitle. 185-22 (b) The contribution shall be paid to the commission in 185-23 accordance with rules adopted by the commission. (V.A.C.S. Art. 185-24 5221b-5(a) (part).) 185-25 Sec. 204.003. CONTRIBUTION NOT DEDUCTED FROM WAGES. An 185-26 employer may not deduct any part of a contribution from the wages 185-27 of an individual in the employer's employ. (V.A.C.S. Art. 186-1 5221b-5(a) (part).) 186-2 Sec. 204.004. ASSIGNMENT TO MAJOR GROUP. The commission 186-3 shall assign each employer to a major group in accordance with the 186-4 definitions contained in the manual. (V.A.C.S. Art. 5221b-5(c)(1) 186-5 (part).) 186-6 Sec. 204.005. ESTABLISHMENT OF MAJOR GROUP CONTRIBUTION 186-7 RATE. (a) For each calendar year, the commission shall establish 186-8 by industry an average contribution rate for each major group. 186-9 (b) The commission shall determine the year's contribution 186-10 rate for an industry by averaging the contribution rates paid by 186-11 employers in that industry during the preceding year ending on 186-12 September 30, as shown by the employment records maintained by the 186-13 commission. (V.A.C.S. Art. 5221b-5(c)(1) (part).) 186-14 Sec. 204.006. INITIAL CONTRIBUTION RATE. (a) A person's 186-15 contribution rate for the calendar year in which the person becomes 186-16 an employer is the greater of: 186-17 (1) the rate established for that year for the major 186-18 group to which the employer is assigned under Section 204.004; or 186-19 (2) two and seven-tenths percent. 186-20 (b) A rate established under Subsection (a) applies to the 186-21 employer until the date the experience rate computed under Section 186-22 204.041 takes effect for the employer. (V.A.C.S. Art. 186-23 5221b-5(c)(1) (part).) 186-24 Sec. 204.007. SPECIAL RATE--COTTON GINNING EMPLOYER. (a) 186-25 An employer identified by the commission as classified in the 186-26 manual as Number 0724, cotton ginning, may elect to pay a 186-27 contribution at a total fixed rate of five and four-tenths percent 187-1 instead of paying a contribution computed on: 187-2 (1) the general tax rate applicable to that employer, 187-3 with the deficit tax rate and replenishment tax rate; or 187-4 (2) any other tax rate applicable to that employer 187-5 under this subtitle. 187-6 (b) An employer must notify the commission of an election 187-7 under this section in writing not later than December 31 preceding 187-8 the year for which the election is made. (V.A.C.S. Art. 187-9 5221b-5(c)(9).) 187-10 Sec. 204.008. TIME BENEFITS ARE PAID. For the purpose of 187-11 this chapter, benefits are paid at the time the claim for the 187-12 benefits is certified by the commission to the comptroller for 187-13 payment. (V.A.C.S. Art. 5221b-5(c)(3).) 187-14 Sec. 204.009. APPLICATION TO LABOR AGENT. (a) A labor 187-15 agent who furnishes a farm and ranch laborer is liable for the 187-16 payment of a tax under this subtitle as if the labor agent were the 187-17 employer of the laborer, without regard to any factor used to 187-18 determine an employer-employee relationship, including the right of 187-19 control. 187-20 (b) If a labor agent does not pay the tax in accordance with 187-21 this subtitle, a person who contracts with the labor agent for the 187-22 services of a farm and ranch laborer is jointly and severally 187-23 liable with the labor agent for payment of the tax under this 187-24 subtitle as an employer. 187-25 (c) A labor agent shall notify each person with whom the 187-26 labor agent contracts whether the labor agent pays the tax under 187-27 this subtitle. 188-1 (d) A labor agent who pays the tax shall present evidence of 188-2 payment to each person with whom the labor agent contracts. 188-3 (e) In this section, "labor agent" means a person who is a 188-4 farm labor contractor under the Migrant and Seasonal Agricultural 188-5 Worker Protection Act (29 U.S.C. Section 1801 et seq.). (V.A.C.S. 188-6 Art. 5221b-17(f)(8)(D) (part).) 188-7 (Sections 204.010-204.020 reserved for expansion) 188-8 SUBCHAPTER B. CHARGEBACKS 188-9 Sec. 204.021. CHARGEBACKS. (a) The amount of benefits paid 188-10 to a claimant for a benefit year shall be charged to the accounts 188-11 of each of the claimant's employers during the claimant's base 188-12 period. The chargebacks of an employer for a calendar quarter are 188-13 the benefits paid to all of the employer's employees or former 188-14 employees during that quarter. 188-15 (b) The chargeback of benefits of a claimant who has two or 188-16 more employers during the claimant's base period is allocated among 188-17 those employers according to the proportion of the total of the 188-18 claimant's benefit wage credits paid during the base period by each 188-19 employer. (V.A.C.S. Art. 5221b-5(c)(2)(A) (part).) 188-20 Sec. 204.022. EXCLUSIONS FROM CHARGEBACKS. (a) Benefits 188-21 computed on benefit wage credits of an employee or former employee 188-22 may not be charged to the account of an employer if the employee's 188-23 last separation from the employer's employment before the 188-24 employee's benefit year: 188-25 (1) was required by a federal statute; 188-26 (2) was required by a statute of this state or an 188-27 ordinance of a municipality of this state; 189-1 (3) would have disqualified the employee under Section 189-2 207.044, 207.045, or 207.053 if the employment had been the 189-3 employee's last work; 189-4 (4) imposes a disqualification under Section 207.044, 189-5 207.045, or 207.053; 189-6 (5) was caused by a medically verifiable illness of 189-7 the employee or the employee's minor child; 189-8 (6) was based on a natural disaster that results in a 189-9 disaster declaration by the president of the United States under 189-10 the Robert T. Stafford Disaster Relief and Emergency Assistance Act 189-11 (42 U.S.C. Section 5121 et seq.), if the employee would have been 189-12 entitled to unemployment assistance benefits under Section 410 of 189-13 that act (42 U.S.C. Section 5177) had the employee not received 189-14 state unemployment compensation benefits; 189-15 (7) was caused by a natural disaster, fire, flood, or 189-16 explosion that causes employees to be separated from one employer's 189-17 employment; or 189-18 (8) resulted from the employee's resigning from 189-19 partial employment to accept other employment that the employee 189-20 reasonably believed would increase the employee's weekly wage. 189-21 (b) For the purpose of this section, if an employee's last 189-22 separation from the employment of an employer is a separation for 189-23 which the employee was determined to have been disqualified under 189-24 Section 207.048, the employee's last separation from the employment 189-25 of that employer is considered to be the next later separation from 189-26 the employment of that employer. (V.A.C.S. Art. 5221b-5(c)(2)(A) 189-27 (part).) 190-1 Sec. 204.023. NOTICE SENT AT TIME BENEFITS PAID. The 190-2 commission shall mail to an employer a notice of the employer's 190-3 maximum potential chargebacks when benefits are first paid if: 190-4 (1) notice of an initial claim has not already been 190-5 mailed to the employer under Section 208.002; and 190-6 (2) the employer's account is potentially chargeable 190-7 with benefits as a result of the initial claim and payment of 190-8 benefits. (V.A.C.S. Art. 5221b-5(c)(2)(B) (part).) 190-9 Sec. 204.024. PROTEST OF POTENTIAL CHARGEBACKS. To protest 190-10 a potential chargeback, an employer to whom notice is mailed under 190-11 Section 204.023 must mail to the commission at Austin a protest not 190-12 later than the 14th day after the date the notice was mailed or the 190-13 right to protest the chargeback is waived. The protest must 190-14 include a statement of the facts supporting the grounds of the 190-15 protest. (V.A.C.S. Art. 5221b-5(c)(2)(B) (part).) 190-16 Sec. 204.025. DECISION AND ADMINISTRATIVE REVIEW OF PROTEST. 190-17 (a) An examiner promptly shall decide the issues involved in a 190-18 timely protest filed under Section 204.024 and shall mail a notice 190-19 of the decision to the protesting employer. 190-20 (b) The examiner's decision becomes final 14 days from the 190-21 date the examiner mails the notice unless before that date the 190-22 employer mails to the commission at Austin a written appeal from 190-23 the examiner's decision. 190-24 (c) Administrative review under this section must be in 190-25 accordance with the rules of the commission. (V.A.C.S. Art. 190-26 5221b-5(c)(2)(B) (part).) 190-27 Sec. 204.026. JUDICIAL REVIEW OF PROTEST. (a) An employer 191-1 may appeal an administrative determination made under Section 191-2 204.025 after the employer has exhausted the employer's 191-3 administrative remedies, not including a motion for rehearing, 191-4 before the commission. An appeal must be filed within the time 191-5 prescribed by Sections 212.153 and 212.201 for commission decisions 191-6 on benefits. 191-7 (b) An appeal to a court relating to a chargeback has the 191-8 same venue and jurisdiction as a suit to collect contributions and 191-9 penalties under this subtitle. (V.A.C.S. Art. 5221b-5(c)(2)(B) 191-10 (part).) 191-11 Sec. 204.027. NOTICE, PROTEST, AND APPEAL--NOTICE SENT AT 191-12 TIME OF CLAIM. (a) If notice of the claim was sent to an employer 191-13 under Section 208.002, the commission shall mail the employer a 191-14 notice of the amount of the employer's potential chargeback 191-15 resulting from the claim. 191-16 (b) The employer may protest a clerical or machine error 191-17 relating to the amount of the chargeback not later than the 14th 191-18 day after the date the notice was mailed. 191-19 (c) The commission shall mail a decision on the protest to 191-20 the employer. 191-21 (d) An employer may appeal the decision on the protest not 191-22 later than the 14th day after the date notice of the decision is 191-23 mailed to the employer. (V.A.C.S. Art. 5221b-5(c)(2)(B) (part).) 191-24 (Sections 204.028-204.040 reserved for expansion) 191-25 SUBCHAPTER C. GENERAL TAX RATE FOR EXPERIENCE-RATED EMPLOYERS 191-26 Sec. 204.041. TAX ON EXPERIENCE-RATED EMPLOYERS. (a) Each 191-27 employer whose account has been chargeable with benefits throughout 192-1 four or more consecutive calendar quarters shall pay contributions 192-2 at the rate prescribed by the table in Section 204.042 or a table 192-3 extended under Section 204.043. 192-4 (b) Except as provided by Subsection (c), a change in the 192-5 rate applicable to an employer takes effect on January 1. 192-6 (c) The rate for an employer who becomes subject to 192-7 contributions under Subsection (a) for the first time at the close 192-8 of a calendar quarter takes effect on the first day of the next 192-9 calendar quarter and continues in effect until the January 1 of the 192-10 next calendar year. (V.A.C.S. Arts. 5221b-5(c)(1) (part), (6)(A) 192-11 (part), (d) (part).) 192-12 Sec. 204.042. TAX RATE TABLE. 192-13 If the 192-14 replenishment and the employer's benefit ratio 192-15 ratio is does not exceed: 192-16 1.00 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 192-17 . . . 192-18 1.20 0.00 0.08 0.16 0.25 0.33 0.41 0.50 0.58 0.66 0.75 192-19 1.21 0.00 0.08 0.16 0.24 0.33 0.41 0.49 0.57 0.66 0.74 192-20 1.22 0.00 0.08 0.16 0.24 0.32 0.40 0.49 0.57 0.65 0.73 192-21 1.23 0.00 0.08 0.16 0.24 0.32 0.40 0.48 0.56 0.65 0.73 192-22 1.24 0.00 0.08 0.16 0.24 0.32 0.40 0.48 0.56 0.64 0.72 192-23 1.25 0.00 0.08 0.16 0.24 0.32 0.40 0.48 0.56 0.64 0.72 192-24 1.26 0.00 0.07 0.15 0.23 0.31 0.39 0.47 0.55 0.63 0.71 192-25 1.27 0.00 0.07 0.15 0.23 0.31 0.39 0.47 0.55 0.62 0.70 192-26 1.28 0.00 0.07 0.15 0.23 0.31 0.39 0.46 0.54 0.62 0.70 192-27 1.29 0.00 0.07 0.15 0.23 0.31 0.38 0.46 0.54 0.62 0.69 193-1 1.30 0.00 0.07 0.15 0.23 0.30 0.38 0.46 0.53 0.61 0.69 193-2 1.31 0.00 0.07 0.15 0.22 0.30 0.38 0.45 0.53 0.61 0.68 193-3 1.32 0.00 0.07 0.15 0.22 0.30 0.37 0.45 0.53 0.60 0.68 193-4 1.33 0.00 0.07 0.15 0.22 0.30 0.37 0.45 0.53 0.60 0.67 193-5 1.34 0.00 0.07 0.14 0.22 0.29 0.37 0.44 0.52 0.59 0.67 193-6 1.35 0.00 0.07 0.14 0.22 0.29 0.37 0.44 0.51 0.59 0.66 193-7 1.36 0.00 0.07 0.14 0.22 0.29 0.36 0.44 0.51 0.58 0.66 193-8 1.37 0.00 0.07 0.14 0.21 0.29 0.36 0.43 0.51 0.58 0.65 193-9 1.38 0.00 0.07 0.14 0.21 0.28 0.36 0.43 0.50 0.57 0.65 193-10 1.39 0.00 0.07 0.14 0.21 0.28 0.35 0.43 0.50 0.57 0.64 193-11 1.40 0.00 0.07 0.14 0.21 0.28 0.35 0.42 0.50 0.57 0.64 193-12 1.41 0.00 0.07 0.14 0.21 0.28 0.35 0.42 0.49 0.56 0.63 193-13 1.42 0.00 0.07 0.14 0.21 0.28 0.35 0.42 0.49 0.56 0.63 193-14 1.43 0.00 0.06 0.13 0.20 0.27 0.34 0.41 0.48 0.55 0.62 193-15 1.44 0.00 0.06 0.13 0.20 0.27 0.34 0.41 0.48 0.55 0.62 193-16 1.45 0.00 0.06 0.13 0.20 0.27 0.34 0.41 0.48 0.55 0.62 193-17 1.46 0.00 0.06 0.13 0.20 0.27 0.34 0.41 0.47 0.54 0.62 193-18 1.47 0.00 0.06 0.13 0.20 0.27 0.34 0.40 0.47 0.54 0.61 193-19 1.48 0.00 0.06 0.13 0.20 0.27 0.33 0.40 0.47 0.54 0.60 193-20 1.49 0.00 0.06 0.13 0.20 0.26 0.33 0.40 0.46 0.53 0.60 193-21 1.50 0.00 0.06 0.13 0.20 0.26 0.33 0.40 0.46 0.53 0.60 193-22 1.51 0.00 0.06 0.13 0.19 0.26 0.33 0.39 0.46 0.52 0.59 193-23 1.52 0.00 0.06 0.13 0.19 0.26 0.32 0.39 0.46 0.52 0.59 193-24 1.53 0.00 0.06 0.13 0.19 0.26 0.32 0.39 0.45 0.52 0.58 193-25 1.54 0.00 0.06 0.12 0.19 0.25 0.32 0.38 0.45 0.51 0.58 193-26 1.55 0.00 0.06 0.12 0.19 0.25 0.32 0.38 0.45 0.51 0.58 193-27 1.56 0.00 0.06 0.12 0.19 0.25 0.32 0.38 0.44 0.51 0.57 194-1 1.57 0.00 0.06 0.12 0.19 0.25 0.31 0.38 0.44 0.50 0.57 194-2 1.58 0.00 0.06 0.12 0.18 0.25 0.31 0.37 0.44 0.50 0.56 194-3 1.59 0.00 0.06 0.12 0.18 0.25 0.31 0.37 0.44 0.50 0.56 194-4 1.60 0.00 0.06 0.12 0.18 0.25 0.31 0.37 0.43 0.50 0.56 194-5 the employer's tax rate is: 194-6 0.00% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 194-7 (V.A.C.S. Art. 5221b-5(c)(6)(A) (part).) 194-8 Sec. 204.043. EXTENSION OF TAX RATE TABLE UP TO SIX PERCENT. 194-9 (a) The commission shall extend the table in Section 204.042 by 194-10 providing additional replenishment ratios, benefit ratios, and tax 194-11 rates up to six percent. 194-12 (b) In extending the table in Section 204.042, the 194-13 commission shall use the same mathematical principles used in 194-14 constructing the table. (V.A.C.S. Art. 5221b-5(c)(6)(A) (part).) 194-15 Sec. 204.044. BENEFIT RATIO. (a) The benefit ratio for an 194-16 employer is equal to the total amounts of the employer's 194-17 chargebacks for the 36 consecutive months preceding the tax rate 194-18 computation date divided by the total of the employer's taxable 194-19 wages for the same months. 194-20 (b) The benefit ratio of an employer whose account has been 194-21 chargeable with benefits for less than 36 consecutive months but 194-22 throughout each month of at least four calendar quarters is equal 194-23 to the total amount of the employer's chargebacks for those months 194-24 preceding the tax rate computation date divided by the total of the 194-25 employer's taxable wages for those months. 194-26 (c) In computing the benefit ratio, only taxable wages on 194-27 which contributions have been paid to the commission not later than 195-1 the last day of the month in which the computation date occurs may 195-2 be used. 195-3 (d) The benefit ratio is expressed as a percentage. 195-4 (V.A.C.S. Art. 5221b-5(c)(4).) 195-5 Sec. 204.045. REPLENISHMENT RATIO. (a) The replenishment 195-6 ratio for a calendar year is computed by: 195-7 (1) dividing the numerator described in Subsection (b) 195-8 by the denominator described in Subsection (c); and 195-9 (2) rounding the result to the nearest hundredth. 195-10 (b) The numerator is equal to the amount of benefits paid 195-11 during the 12 months ending September 30 of the preceding year that 195-12 are effectively charged to employers' accounts, plus one-half of 195-13 the amount of benefits paid during that period that are not 195-14 effectively charged to employers' accounts. In computing the 195-15 amount of the benefits charged or paid, the commission shall not 195-16 include the amount of: 195-17 (1) a canceled benefit warrant; 195-18 (2) that part of a benefit that has been overpaid and 195-19 been repaid; or 195-20 (3) benefits paid that are repayable from a 195-21 reimbursing employer, the federal government, or another 195-22 governmental entity. 195-23 (c) The denominator is the total amount of benefits paid 195-24 during the 12 months ending September 30 of the preceding year that 195-25 are effectively charged to employers' accounts. 195-26 (d) The commission shall compute the replenishment ratio for 195-27 each calendar year before the date the first contribution payment 196-1 with respect to wages for employment paid in that year is due. 196-2 Once computed for the year, the replenishment ratio may not be 196-3 adjusted. (V.A.C.S. Art. 5221b-5(c)(5) (part).) 196-4 Sec. 204.046. EFFECTIVELY CHARGED BENEFITS. (a) A benefit 196-5 is not effectively charged if it is: 196-6 (1) not charged to an employer's account; 196-7 (2) charged to an employer's account after the 196-8 employer has reached maximum liability because of the maximum tax 196-9 rate; or 196-10 (3) charged to an employer's account but considered 196-11 not collectible. 196-12 (b) A benefit not described in Subsection (a) is effectively 196-13 charged. (V.A.C.S. Art. 5221b-5(c)(5) (part).) 196-14 Sec. 204.047. TAX RATE COMPUTATION DATE FOR EXPERIENCE TAX 196-15 RATE. (a) The computation date for the tax rate for the 196-16 contribution under Section 204.041 is October 1 of the year 196-17 preceding the calendar year in which the rate takes effect, except 196-18 as provided by Subsection (b). 196-19 (b) The computation date for the tax rate for the 196-20 contribution under Section 204.041(a) for an employer who becomes 196-21 subject to that tax rate for the first time is the date on which 196-22 the rate takes effect under Section 204.041(c). (V.A.C.S. Art. 196-23 5221b-5(d) (part).) 196-24 (Sections 204.048-204.060 reserved for expansion) 196-25 SUBCHAPTER D. ADJUSTMENTS TO TAX RATE FOR EXPERIENCE-RATED 196-26 EMPLOYERS 196-27 Sec. 204.061. CEILING AND FLOOR OF COMPENSATION FUND. In 197-1 computing the tax rates under this subchapter: 197-2 (1) the ceiling of the compensation fund is two 197-3 percent of the total taxable wages for the four calendar quarters 197-4 ending the preceding June 30; and 197-5 (2) the floor of the compensation fund is equal to the 197-6 greater of: 197-7 (A) $400 million; or 197-8 (B) one percent of the total taxable wages for 197-9 the four calendar quarters ending the preceding June 30. (V.A.C.S. 197-10 Arts. 5221b-5(c)(6)(B) (part), (D) (part).) 197-11 Sec. 204.062. REPLENISHMENT TAX. (a) In addition to the 197-12 general tax computed under Subchapter C, an employer entitled to an 197-13 experience rate shall pay a replenishment tax at the rate computed 197-14 by: 197-15 (1) dividing the numerator described by Subsection (b) 197-16 by the denominator described by Subsection (c); 197-17 (2) dividing that result by 100 to obtain a 197-18 percentage; and 197-19 (3) rounding that result to the nearest hundredth. 197-20 (b) The numerator is an amount equal to one-half of the 197-21 amount of benefits paid by all employers during the 12 months 197-22 ending the preceding September 30 that are not effectively charged. 197-23 (c) The denominator is an amount equal to the taxable wages 197-24 paid by all employers during the four quarters ending the preceding 197-25 June 30. (V.A.C.S. Art. 5221b-5(c)(8).) 197-26 Sec. 204.063. DEFICIT TAX. (a) If the amount of money in 197-27 the compensation fund on a tax rate computation date is less than 198-1 the floor of the compensation fund, a deficit tax rate is added for 198-2 the next calendar year to the general tax rate for each employer 198-3 entitled to an experience rate for that year. 198-4 (b) The deficit tax rate for a calendar year is the lesser 198-5 of: 198-6 (1) the rate computed by multiplying the deficit 198-7 ratio, as computed under Section 204.064, by the sum of the 198-8 employer's general tax rate, the replenishment tax rate, and the 198-9 deficit tax rate for the previous calendar year; or 198-10 (2) two percent. (V.A.C.S. Art. 5221b-5(c)(6)(B) 198-11 (part).) 198-12 Sec. 204.064. DEFICIT RATIO. (a) The deficit ratio is 198-13 computed by: 198-14 (1) dividing the numerator computed under Subsection 198-15 (b) by the denominator described by Subsection (c); and 198-16 (2) rounding that result to the nearest hundredth. 198-17 (b) The numerator is computed by subtracting the balance of 198-18 the compensation fund, considering any federal advance or other 198-19 liability of the fund, from the floor of the compensation fund. 198-20 (c) The denominator is the amount of contributions due under 198-21 the general tax rate and the replenishment rate for the four 198-22 calendar quarters ending the preceding September 30 from employers 198-23 entitled to an experience rate on the tax rate computation date. 198-24 (V.A.C.S. Art. 5221b-5(c)(6)(C).) 198-25 Sec. 204.065. CREDIT. (a) If the amount in the 198-26 compensation fund on a tax rate computation date is more than the 198-27 ceiling of the compensation fund, an employer entitled to an 199-1 experience rate on the computation date is entitled to a credit to 199-2 be applied beginning with contributions for the first quarter of 199-3 the following year. 199-4 (b) The amount of the credit is computed by multiplying the 199-5 surplus ratio computed under Section 204.066 by the employer's 199-6 contributions due for the four calendar quarters ending the 199-7 preceding September 30. 199-8 (c) An employer may not apply a credit against delinquent 199-9 contributions. A credit may not be applied until the employer has 199-10 paid any delinquent contributions. (V.A.C.S. Arts. 199-11 5221b-5(c)(6)(D) (part), (F).) 199-12 Sec. 204.066. SURPLUS RATIO. (a) The surplus ratio is 199-13 computed by: 199-14 (1) dividing the numerator computed under Subsection 199-15 (b) by the denominator described by Subsection (c); and 199-16 (2) rounding that result to the nearest hundredth. 199-17 (b) The numerator is computed by subtracting the ceiling of 199-18 the compensation fund from the balance of the compensation fund. 199-19 (c) The denominator is the amount of contributions due for 199-20 the four calendar quarters ending the preceding September 30 from 199-21 employers entitled to an experience rate on the tax rate 199-22 computation date. (V.A.C.S. Art. 5221b-5(c)(6)(E).) 199-23 (Sections 204.067-204.080 reserved for expansion) 199-24 SUBCHAPTER E. ACQUISITION OF EXPERIENCE-RATED EMPLOYER 199-25 Sec. 204.081. DEFINITION. In this subchapter, "compensation 199-26 experience" includes the period that benefit wage credits or 199-27 benefits have been chargeable and any other factor under Subchapter 200-1 A, B, C, or D necessary to the computation of experience rating 200-2 under those subchapters. (V.A.C.S. Art. 5221b-5(c)(7)(E).) 200-3 Sec. 204.082. EFFECTIVE DATE OF ACQUISITION. For purposes 200-4 of this subchapter, an acquisition is effective on the first day of 200-5 the calendar quarter in which the acquisition occurs. (V.A.C.S. 200-6 Art. 5221b-5(c)(7)(F).) 200-7 Sec. 204.083. ACQUISITION OF ALL OF EXPERIENCE-RATED 200-8 ORGANIZATION, TRADE, OR BUSINESS. An employing unit that acquires 200-9 all of the organization, trade, or business of an employer and that 200-10 continues operation of the organization, trade, or business 200-11 acquires the compensation experience of the predecessor employer if 200-12 on the date of the acquisition, a shareholder, officer, or other 200-13 owner of a legal or equitable interest in the predecessor employer, 200-14 or the spouse or a person within the first degree of consanguinity 200-15 or affinity, as determined under Article 5996h, Revised Statutes, 200-16 of the shareholder, officer, or other owner: 200-17 (1) is a shareholder, officer, or other owner of a 200-18 legal or equitable interest in the successor employing unit; or 200-19 (2) holds an option to purchase a legal or equitable 200-20 interest in the successor employing unit. (V.A.C.S. Arts. 200-21 5221b-5(c)(7)(A)(i), (iii).) 200-22 Sec. 204.084. ACQUISITION OF PART OF EXPERIENCE-RATED 200-23 ORGANIZATION, TRADE, OR BUSINESS: APPROVAL OF TRANSFER OF 200-24 COMPENSATION EXPERIENCE. (a) If an employing unit acquires a part 200-25 of the organization, trade, or business of an employer, the 200-26 successor employing unit and the predecessor employer may jointly 200-27 make a written application to the commission to transfer the 201-1 compensation experience of the predecessor employer that is 201-2 attributable to the part of the organization, trade, or business 201-3 acquired to the successor employing unit. 201-4 (b) If the acquisition results from the death of the 201-5 predecessor employer, the requirement that the predecessor employer 201-6 join in the application for transfer of the compensation experience 201-7 does not apply. 201-8 (c) The commission shall approve an application if: 201-9 (1) immediately after the acquisition the successor 201-10 employing unit continues operation of substantially the same part 201-11 of the organization, trade, or business acquired; 201-12 (2) the predecessor employer waives in writing all 201-13 rights to an experience rating computed on the compensation 201-14 experience attributable to the part of the organization, trade, or 201-15 business acquired by the successor employing unit, unless the 201-16 acquisition results from the death of the predecessor employer; 201-17 (3) a definitely identifiable and segregable part of 201-18 the predecessor employer's compensation experience is attributable 201-19 to the part of the organization, trade, or business acquired; and 201-20 (4) for a successor employing unit that is not an 201-21 employer at the time of the acquisition, the successor employing 201-22 unit elects to become an employer on the date of the acquisition or 201-23 otherwise becomes an employer during the year in which the 201-24 acquisition occurs. (V.A.C.S. Arts. 5221b-5(c)(7)(B), (D).) 201-25 Sec. 204.085. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYER. (a) 201-26 A successor employing unit that is subject to Section 204.083 or 201-27 204.084 and is an experience-rated employer on the date of the 202-1 acquisition shall pay contributions from the date of the 202-2 acquisition until the end of the calendar year in which the 202-3 acquisition occurred at the rate applicable to the successor 202-4 employing unit on the date of the acquisition. 202-5 (b) A successor employing unit that is subject to Section 202-6 204.083 or 204.084 and is not an experience-rated employer on the 202-7 date of the acquisition shall pay contributions from the date of 202-8 the acquisition until the next tax rate computation date at the 202-9 highest rate applicable at the time of the acquisition to any 202-10 predecessor employer who is a party to the acquisition. (V.A.C.S. 202-11 Arts. 5221b-5(c)(7)(A)(ii), (C).) 202-12 Sec. 204.086. COLLECTION OF CONTRIBUTION, PENALTY, OR 202-13 INTEREST FROM SUCCESSOR EMPLOYER. (a) An individual or employing 202-14 unit that acquires the organization, trade, or business or 202-15 substantially all of the assets of an organization, trade, or 202-16 business of an employer who, at the time of the acquisition, is 202-17 indebted to the commission for a contribution, a penalty, or 202-18 interest, is liable to the commission for prompt payment of the 202-19 contribution, penalty, or interest. 202-20 (b) If not paid, the commission may bring suit for the 202-21 collection of a contribution, a penalty, or interest as though the 202-22 contribution, penalty, or interest had been incurred by the 202-23 successor employer. (V.A.C.S. Art. 5221b-12(o).) 202-24 (Sections 204.087-204.100 reserved for expansion) 202-25 SUBCHAPTER F. SPECIAL CONTRIBUTIONS FOR GOVERNMENTAL EMPLOYERS 202-26 Sec. 204.101. CONTRIBUTION FROM GOVERNMENTAL EMPLOYER. A 202-27 governmental employer shall pay a contribution in accordance with 203-1 this subchapter and rules adopted by the commission on wages paid 203-2 for employment during each year or portion of the year in which the 203-3 governmental employer is subject to this subtitle. (V.A.C.S. Arts. 203-4 5221b-5b(a), (b)(1) (part).) 203-5 Sec. 204.102. CONTRIBUTION NOT DEDUCTION FROM WAGES. A 203-6 contribution paid by a governmental employer may not be deducted 203-7 from the wages of individuals in the employer's employ. (V.A.C.S. 203-8 Art. 5221b-5b(b)(1) (part).) 203-9 Sec. 204.103. RATE OF CONTRIBUTIONS FOR GOVERNMENTAL 203-10 EMPLOYERS. (a) The rate of the contribution required under 203-11 Section 204.101 for each calendar year is equal to the greater of: 203-12 (1) one-tenth of one percent; or 203-13 (2) the percentage, adjusted to the next higher 203-14 one-tenth of one percent, computed by dividing the numerator 203-15 described by Subsection (b) by the denominator described by 203-16 Subsection (c). 203-17 (b) The numerator is the amount of all benefits paid during 203-18 the preceding calendar year based on wage credits earned from 203-19 employers that pay contributions under this subchapter, not 203-20 including benefit payments that are reimbursable from any other 203-21 source. If the amount of benefits paid during the period used for 203-22 determining the rate is greater than the contributions paid by the 203-23 same employers for the same period, the amount of the benefits paid 203-24 in excess of the amount of contributions collected shall be added 203-25 to the numerator in determining the contribution rate. If the 203-26 amount of benefits paid for the period used for determining the 203-27 rate is less than the contributions paid by the same employers for 204-1 the same period, that amount shall be deducted from the numerator 204-2 in computing the rate. 204-3 (c) The denominator is the amount of the total wages paid 204-4 during the preceding calendar year by all employers that pay 204-5 contributions under this subchapter. (V.A.C.S. Art. 5221b-5b(b)(2) 204-6 (part).) 204-7 Sec. 204.104. ACCOUNTING FOR GOVERNMENTAL EMPLOYERS. The 204-8 commission shall account separately for benefits paid and 204-9 contributions collected under this subchapter, and these benefits 204-10 and contributions may not be used in determining contribution rates 204-11 under Subchapters A, B, C, and D. (V.A.C.S. Art. 5221b-5b(e) 204-12 (part).) 204-13 Sec. 204.105. PAST DUE CONTRIBUTIONS. (a) A governmental 204-14 employer that fails to pay a contribution due under this subchapter 204-15 on the date it is due as prescribed by the commission is subject to 204-16 the same penalties as provided for other employers under Section 204-17 213.021. 204-18 (b) The provisions for collecting delinquent contributions 204-19 under Chapter 213 apply to a governmental employer. 204-20 (c) The commission shall notify the comptroller in writing 204-21 of the name of each governmental employer that is delinquent in 204-22 payment of contributions under this subtitle and the amount of the 204-23 delinquency. On receipt of the notice, the comptroller shall pay 204-24 the amount of the delinquency to the commission from any funds that 204-25 otherwise would be due from the state to the delinquent 204-26 governmental employer. (V.A.C.S. Arts. 5221b-5b(b)(3), (c)(1), (2) 204-27 (part).) 205-1 Sec. 204.106. REPORTS AND RECORDS. (a) A governmental 205-2 employer shall keep records and file reports with the commission 205-3 relating to individuals in its employ as required by rules adopted 205-4 by the commission. 205-5 (b) A governmental employer that does not keep the records 205-6 or file the reports when due is subject to the same penalties 205-7 provided for other employers under Sections 213.022, 213.023, 205-8 213.024, and 213.056. (V.A.C.S. Art. 5221b-5b(d).) 205-9 CHAPTER 205. REIMBURSEMENTS 205-10 SUBCHAPTER A. ELECTION TO BECOME REIMBURSING EMPLOYER 205-11 Sec. 205.001. REIMBURSEMENTS OR CONTRIBUTIONS BY GOVERNMENTAL 205-12 ENTITY 205-13 Sec. 205.002. ELECTION BY NONPROFIT ORGANIZATION 205-14 Sec. 205.003. COMMISSION TERMINATION OF ELECTION 205-15 (Sections 205.004-205.010 reserved for expansion) 205-16 SUBCHAPTER B. GENERAL PROVISIONS 205-17 Sec. 205.011. APPLICABILITY OF SUBTITLE; WAIVER BY REIMBURSING 205-18 EMPLOYER 205-19 Sec. 205.012. PAYMENT OF REIMBURSEMENT 205-20 Sec. 205.013. BILLING; AMOUNT OF REIMBURSEMENTS 205-21 Sec. 205.014. PROPORTIONATE ALLOCATION OF BENEFIT COSTS--MORE 205-22 THAN ONE EMPLOYER AND AT LEAST ONE 205-23 REIMBURSING EMPLOYER 205-24 Sec. 205.015. CONTINUED LIABILITY FOR REIMBURSEMENT 205-25 Sec. 205.016. COLLECTION OF DELINQUENT REIMBURSEMENT; EFFECT 205-26 OF FAILURE TO SUBMIT CERTAIN REPORTS 205-27 Sec. 205.017. DELINQUENT GOVERNMENTAL EMPLOYERS 206-1 Sec. 205.018. PAYMENT OF BENEFITS FROM COMPENSATION FUND; 206-2 NO EFFECT ON REPLENISHMENT RATIO 206-3 (Sections 205.019-205.020 reserved for expansion) 206-4 SUBCHAPTER C. GROUP ACCOUNT 206-5 Sec. 205.021. APPROVAL OF GROUP ACCOUNT; EFFECTIVE DATE 206-6 Sec. 205.022. DURATION AND TERMINATION OF GROUP ACCOUNT 206-7 Sec. 205.023. GROUP MEMBER'S REIMBURSEMENT AMOUNT 206-8 Sec. 205.024. REPORTS AND RECORDS 206-9 Sec. 205.025. COMMISSION RULES 206-10 (Sections 205.026-205.030 reserved for expansion) 206-11 SUBCHAPTER D. BONDS AND OTHER SAFEGUARDS 206-12 Sec. 205.031. BOND 206-13 Sec. 205.032. ADDITIONAL SAFEGUARDS 206-14 (Sections 205.033-205.040 reserved for expansion) 206-15 SUBCHAPTER E. STATE ELECTIONS 206-16 Sec. 205.041. STATE ELECTION TO BE REIMBURSING EMPLOYER 206-17 Sec. 205.042. COVERAGE OF STATE EMPLOYEES WORKING OUTSIDE 206-18 STATE 206-19 CHAPTER 205. REIMBURSEMENTS 206-20 SUBCHAPTER A. ELECTION TO BECOME REIMBURSING EMPLOYER 206-21 Sec. 205.001. REIMBURSEMENTS OR CONTRIBUTIONS BY 206-22 GOVERNMENTAL ENTITY. (a) A state, a political subdivision of a 206-23 state, or an instrumentality of a state or a political subdivision 206-24 of a state may elect to pay reimbursements for benefits instead of 206-25 contributions. 206-26 (b) The election must be made not later than the 45th day 206-27 after the date on which notice that an employer is subject to this 207-1 subtitle is mailed to the employer. 207-2 (c) The election is effective January 1 of the year in which 207-3 the employer becomes subject to this subtitle. 207-4 (d) An election is effective for at least two calendar years 207-5 and may be terminated after the minimum period by filing with the 207-6 commission not later than December 1 a written request for 207-7 termination. The termination is effective January 1 of the 207-8 following year. (V.A.C.S. Arts. 5221b-6(b)(2), (3), (4).) 207-9 Sec. 205.002. ELECTION BY NONPROFIT ORGANIZATION. (a) A 207-10 nonprofit organization that is described by Section 201.023 or a 207-11 group of those organizations subject to this subtitle may elect to 207-12 pay reimbursements for benefits instead of contributions. 207-13 (b) An election under this section must be made not later 207-14 than the 45th day after the date on which notice that the employer 207-15 is subject to this subtitle is mailed to the employer. 207-16 (c) The election is effective January 1 of the year in which 207-17 the employer becomes subject to this subtitle. 207-18 (d) The election is effective for at least two calendar 207-19 years and may not be terminated before the expiration of that 207-20 period, except as provided in Sections 205.003 and 205.031. 207-21 (e) An election may be withdrawn by written application by 207-22 the employer filed with the commission not later than December 1 207-23 before the year for which the employer wishes to change the 207-24 employer's method of payment. The method of payment may be changed 207-25 again if a timely application is filed after a minimum of two 207-26 calendar years. 207-27 (f) An election to pay reimbursements terminates at any time 208-1 coverage terminates under this subtitle. An employer whose 208-2 election terminates because of termination of coverage, on again 208-3 becoming an employer subject to this subtitle, may reelect to pay 208-4 reimbursements. (V.A.C.S. Art. 5221b-6(b)(1).) 208-5 Sec. 205.003. COMMISSION TERMINATION OF ELECTION. (a) The 208-6 commission may terminate an employer's election to make 208-7 reimbursements if the employer is delinquent in making 208-8 reimbursements under this chapter. 208-9 (b) A termination under this section takes effect at the 208-10 beginning of the next tax year and remains in effect for that tax 208-11 year and the following tax year. (V.A.C.S. Art. 5221b-5a(i).) 208-12 (Sections 205.004-205.010 reserved for expansion) 208-13 SUBCHAPTER B. GENERAL PROVISIONS 208-14 Sec. 205.011. APPLICABILITY OF SUBTITLE; WAIVER BY 208-15 REIMBURSING EMPLOYER. (a) A reimbursing employer is entitled to 208-16 the rights and privileges and subject to the duties and 208-17 responsibilities of all provisions of this subtitle other than the 208-18 following provisions of Chapter 204, which do not apply to a 208-19 reimbursing employer: 208-20 (1) Sections 204.001-204.008; 208-21 (2) Subchapters B, C, and D of Chapter 204; and 208-22 (3) Sections 204.081-204.085. 208-23 (b) An election to become a reimbursing employer is a waiver 208-24 of the rights afforded under Chapter 204 that do not apply to a 208-25 reimbursing employer. (V.A.C.S. Art. 5221b-5a(f)). 208-26 Sec. 205.012. PAYMENT OF REIMBURSEMENT. A reimbursing 208-27 employer shall pay a reimbursement to the commission in accordance 209-1 with this chapter and rules adopted by the commission. (V.A.C.S. 209-2 Arts. 5221b-5a(a) (part), (b) (part).) 209-3 Sec. 205.013. BILLING; AMOUNT OF REIMBURSEMENTS. (a) A 209-4 reimbursing employer shall pay to the commission an amount equal to 209-5 the regular benefits plus, except as provided by Subsection (c), 209-6 one-half of the extended benefits paid during that quarter that are 209-7 attributable to service in the employ of the employer. 209-8 (b) At the end of each calendar quarter the commission shall 209-9 bill each reimbursing employer for the amount described under 209-10 Subsection (a). 209-11 (c) A state, a political subdivision of a state, or any 209-12 instrumentality of any one or more states or political subdivisions 209-13 of a state that is wholly owned by one or more states or political 209-14 subdivisions of a state that is a reimbursing employer shall pay 209-15 100 percent of the extended benefits paid on benefit wage credits 209-16 earned from that employer. (V.A.C.S. Arts. 5221b-5a(b) (part), (c) 209-17 (part), (m).) 209-18 Sec. 205.014. PROPORTIONATE ALLOCATION OF BENEFIT 209-19 COSTS--MORE THAN ONE EMPLOYER AND AT LEAST ONE REIMBURSING 209-20 EMPLOYER. If benefits to an individual are computed on benefit 209-21 wage credits earned from more than one employer, at least one of 209-22 whom is a reimbursing employer, the amount payable to the 209-23 compensation fund by each reimbursing employer is the amount that 209-24 bears the same ratio to the total benefits paid to the individual 209-25 as the total base period benefit wage credits for the individual 209-26 from that employer bears to the total base period benefit wage 209-27 credits for the individual from all employers. (V.A.C.S. Art. 210-1 5221b-5a(c) (part).) 210-2 Sec. 205.015. CONTINUED LIABILITY FOR REIMBURSEMENT. An 210-3 employer who has elected reimbursement under Section 205.001 or 210-4 205.002 shall pay reimbursements for benefits that are attributable 210-5 to service in the employ of the employer during the period of the 210-6 election, even if the employer is no longer a reimbursing employer 210-7 when the benefits are paid. (V.A.C.S. Art. 5221b-5a(g).) 210-8 Sec. 205.016. COLLECTION OF DELINQUENT REIMBURSEMENT; EFFECT 210-9 OF FAILURE TO SUBMIT CERTAIN REPORTS. A reimbursing employer who 210-10 fails to pay a reimbursement on the date on which the reimbursement 210-11 is due, or who fails to submit records and reports, as prescribed 210-12 by the commission, is subject to the following in the same manner 210-13 as an employer who does not pay a contribution when due: 210-14 (1) Sections 213.004, 213.005, 213.006, 213.008, and 210-15 213.009; 210-16 (2) Subchapters B, C, D, and E of Chapter 213, other 210-17 than Section 213.058; and 210-18 (3) Section 204.086. (V.A.C.S. Art. 5221b-5a(e).) 210-19 Sec. 205.017. DELINQUENT GOVERNMENTAL EMPLOYERS. The 210-20 commission shall notify the comptroller in writing of the name of a 210-21 governmental employer that is delinquent in payment of 210-22 reimbursements under this subtitle and the amount of the 210-23 delinquency. On receipt of the notice, the comptroller shall pay 210-24 the amount of the delinquency to the commission from any funds that 210-25 otherwise would be due from the state to the delinquent 210-26 governmental employer. (V.A.C.S. Art. 5221b-5b(c)(2) (part).) 210-27 Sec. 205.018. PAYMENT OF BENEFITS FROM COMPENSATION FUND; NO 211-1 EFFECT ON REPLENISHMENT RATIO. Benefits computed on wages earned 211-2 from a reimbursing employer and reimbursements for the benefits may 211-3 not be used in computing the replenishment ratio under Section 211-4 204.045. (V.A.C.S. Art. 5221b-5a(l).) 211-5 (Sections 205.019-205.020 reserved for expansion) 211-6 SUBCHAPTER C. GROUP ACCOUNT 211-7 Sec. 205.021. APPROVAL OF GROUP ACCOUNT; EFFECTIVE DATE. 211-8 (a) On approval of an application submitted by two or more 211-9 reimbursing employers, the commission shall establish a group 211-10 account for the employers to share the cost of benefits that are 211-11 attributable to service in the employ of the employers. 211-12 (b) The application must identify and authorize a group 211-13 representative to act as the group's agent for the purpose of this 211-14 subchapter. 211-15 (c) The group account takes effect at the beginning of the 211-16 calendar quarter in which the commission received the application. 211-17 The commission shall notify the group's representative of the 211-18 effective date of the account. (V.A.C.S. Art. 5221b-5a(h) (part).) 211-19 Sec. 205.022. DURATION AND TERMINATION OF GROUP ACCOUNT. 211-20 (a) A group account must remain in effect for not less than two 211-21 years. 211-22 (b) After two years, the account may be terminated at the 211-23 discretion of the commission or on application by the group. The 211-24 termination is effective January 1 of the next year. (V.A.C.S. 211-25 Art. 5221b-5a(h) (part).) 211-26 Sec. 205.023. GROUP MEMBER'S REIMBURSEMENT AMOUNT. On 211-27 establishment of a group account, each member of the group is 212-1 liable for reimbursements for each calendar quarter in the amount 212-2 that bears the same ratio to the total benefits paid in the quarter 212-3 attributable to service in the employ of all members of the group 212-4 as the total wages paid for service in employment in the quarter by 212-5 the member bears to the total wages paid in the quarter by all 212-6 members of the group. (V.A.C.S. Art. 5221b-5a(h) (part).) 212-7 Sec. 205.024. REPORTS AND RECORDS. Each member of a group 212-8 shall keep accurate employment records and submit reports as 212-9 required by the commission relating to persons employed by the 212-10 member. (V.A.C.S. Art. 5221b-5a(h) (part).) 212-11 Sec. 205.025. COMMISSION RULES. The commission shall as 212-12 necessary adopt rules on: 212-13 (1) an application for the establishment, maintenance, 212-14 and termination of a group account authorized by this subchapter; 212-15 (2) the type of records to be kept and reports to be 212-16 submitted by a group of employers; 212-17 (3) the addition of a new member to a group; 212-18 (4) the withdrawal of an active member from a group; 212-19 and 212-20 (5) the determination of the amount of reimbursements 212-21 payable under this subchapter by members of a group and the time 212-22 and manner of those payments. (V.A.C.S. Art. 5221b-5a(h) (part).) 212-23 (Sections 205.026-205.030 reserved for expansion) 212-24 SUBCHAPTER D. BONDS AND OTHER SAFEGUARDS 212-25 Sec. 205.031. BOND. (a) The commission may require a 212-26 reimbursing employer or group of reimbursing employers to execute 212-27 and file with the commission a surety bond approved by the 213-1 commission. 213-2 (b) The amount of the bond shall be determined in accordance 213-3 with rules adopted by the commission. 213-4 (c) The commission may require adjustments to a filed bond 213-5 as it considers appropriate. 213-6 (d) If a reimbursing employer covered by a bond fails to pay 213-7 the full amount of reimbursements when due, together with any 213-8 applicable interest and penalties required under this subtitle, the 213-9 surety is liable on the bond, to the extent of the bond, as though 213-10 the surety were the employer. 213-11 (e) If a reimbursing employer fails to execute and file bond 213-12 when directed to do so by the commission, the commission may 213-13 terminate the employer's election to make reimbursements effective 213-14 at the beginning of the next tax year. The termination remains 213-15 effective for that tax year and the following tax year. (V.A.C.S. 213-16 Art. 5221b-5a(j).) 213-17 Sec. 205.032. ADDITIONAL SAFEGUARDS. The commission may 213-18 provide additional safeguards as necessary to ensure that a 213-19 reimbursing employer pays the reimbursements required under 213-20 Subchapters B and C. (V.A.C.S. Art. 5221b-5a(k).) 213-21 (Sections 205.033-205.040 reserved for expansion) 213-22 SUBCHAPTER E. STATE ELECTIONS 213-23 Sec. 205.041. STATE ELECTION TO BE REIMBURSING EMPLOYER. 213-24 (a) This state is a reimbursing employer subject to this subtitle 213-25 for all services performed in the employ of: 213-26 (1) this state; 213-27 (2) a branch or department of this state; or 214-1 (3) an instrumentality of this state that is not 214-2 otherwise an employer. 214-3 (b) All services performed in the employ of this state, a 214-4 branch or department of this state, or an instrumentality of this 214-5 state are employment. 214-6 (c) Subsection (a) does not apply to a political subdivision 214-7 of this state. 214-8 (d) The commission shall provide to each state agency an 214-9 annual statement showing the benefits paid by the commission during 214-10 the year that are attributable to that agency. (V.A.C.S. Art. 214-11 5221b-22d.) 214-12 Sec. 205.042. COVERAGE OF STATE EMPLOYEES WORKING OUTSIDE 214-13 STATE. If the commission is unable to execute a reciprocal 214-14 agreement under Chapter 211 to cover an employee of this state who 214-15 works outside this state, the employing agency shall become a 214-16 reimbursing employer if permitted by the law of the state in which 214-17 the employee works. If the agency is not permitted to be a 214-18 reimbursing employer, the agency may pay the required contribution 214-19 for that employee from funds available for that purpose. (V.A.C.S. 214-20 Art. 5221b-22dd.) 214-21 CHAPTER 206. UNEMPLOYMENT INSURANCE COVERAGE 214-22 Sec. 206.001. YEARLY COVERAGE 214-23 Sec. 206.002. ELECTION OF COVERAGE AS EMPLOYER 214-24 Sec. 206.003. ELECTION OF COVERAGE REGARDING SERVICES 214-25 NOT CONSTITUTING EMPLOYMENT 214-26 Sec. 206.004. TERMINATION OF COVERAGE 214-27 Sec. 206.005. PREVIOUS RIGHTS LOST BY CESSATION OF 215-1 COVERAGE 215-2 CHAPTER 206. UNEMPLOYMENT INSURANCE COVERAGE 215-3 Sec. 206.001. YEARLY COVERAGE. An employing unit that is or 215-4 becomes an employer in a calendar year is subject to this subtitle 215-5 during that entire calendar year. (V.A.C.S. Art. 5221b-6(a).) 215-6 Sec. 206.002. ELECTION OF COVERAGE AS EMPLOYER. (a) An 215-7 employing unit that is not otherwise subject to this subtitle may 215-8 elect coverage as an employer for not less than two calendar years. 215-9 (b) Subsection (a) does not apply to an employing unit to 215-10 which Section 205.001 or 205.002 applies. 215-11 (c) On written approval by the commission of an election 215-12 under Subsection (a), the employing unit making the election 215-13 becomes an employer to the same extent as all other employers 215-14 beginning on the date stated in the approval. (V.A.C.S. Art. 215-15 5221b-6(b)(5).) 215-16 Sec. 206.003. ELECTION OF COVERAGE REGARDING SERVICES NOT 215-17 CONSTITUTING EMPLOYMENT. (a) An employing unit may elect for not 215-18 less than two calendar years that all services that do not 215-19 constitute employment and that are performed by individuals in its 215-20 employ in one or more distinct establishments or places of business 215-21 are to be considered employment for all purposes of this subtitle. 215-22 (b) An election under Subsection (a) must be in writing and 215-23 be filed with the commission. 215-24 (c) On written approval by the commission of an election 215-25 under Subsection (a), the services constitute employment during the 215-26 period elected, beginning on the date stated in the approval. 215-27 (V.A.C.S. Art. 5221b-6(b)(6).) 216-1 Sec. 206.004. TERMINATION OF COVERAGE. (a) An employing 216-2 unit may cease to be an employer only on January 1 of a year and 216-3 only if the commission finds that: 216-4 (1) the employing unit was not an employer during the 216-5 preceding year; or 216-6 (2) the employing unit has not had any individuals in 216-7 employment during the preceding three calendar years. 216-8 (b) The commission may not make a finding under Subsection 216-9 (a)(1) unless the employing unit files an application for 216-10 termination of coverage with the commission on or after January 1 216-11 but before April 1 of the year for which termination is requested. 216-12 The commission may make a finding under Subsection (a)(2) without 216-13 an application having been filed. (V.A.C.S. Arts. 5221b-6(c)(1), 216-14 (2).) 216-15 Sec. 206.005. PREVIOUS RIGHTS LOST BY CESSATION OF COVERAGE. 216-16 When an employing unit that ceased to be an employer subsequently 216-17 becomes an employer, the employing unit is considered to be a new 216-18 employer without regard to the rights that employing unit acquired 216-19 when previously an employer. (V.A.C.S. Art. 5221b-6(d).) 216-20 CHAPTER 207. BENEFITS 216-21 SUBCHAPTER A. PAYMENT OF BENEFITS 216-22 Sec. 207.001. PAYMENT OF BENEFITS 216-23 Sec. 207.002. BENEFITS FOR TOTAL UNEMPLOYMENT 216-24 Sec. 207.003. BENEFITS FOR PARTIAL UNEMPLOYMENT 216-25 Sec. 207.004. BENEFIT WAGE CREDITS 216-26 Sec. 207.005. MAXIMUM AMOUNT OF BENEFITS 216-27 Sec. 207.006. ADJUSTMENT OF BENEFITS 217-1 Sec. 207.007. FEES LIMITATION; LEGAL REPRESENTATION; 217-2 CRIMINAL OFFENSE; PENALTY 217-3 Sec. 207.008. SUITABLE WORK 217-4 (Sections 207.009-207.020 reserved for expansion) 217-5 SUBCHAPTER B. BENEFIT ELIGIBILITY 217-6 Sec. 207.021. BENEFIT ELIGIBILITY CONDITIONS 217-7 Sec. 207.022. COMMISSION-APPROVED TRAINING 217-8 Sec. 207.023. TRAINING UNDER THE TRADE ACT OF 1974 217-9 Sec. 207.024. CLAIM FILED OR RESIDENCE IN ANOTHER 217-10 STATE OR COUNTRY 217-11 Sec. 207.025. PREGNANCY OR TERMINATION OF PREGNANCY 217-12 (Sections 207.026-207.040 reserved for expansion) 217-13 SUBCHAPTER C. EXCEPTIONS TO AND DISQUALIFICATION 217-14 FOR BENEFITS 217-15 Sec. 207.041. SERVICES IN EDUCATIONAL INSTITUTIONS 217-16 Sec. 207.042. ATHLETES 217-17 Sec. 207.043. ALIENS 217-18 Sec. 207.044. DISCHARGE FOR MISCONDUCT 217-19 Sec. 207.045. VOLUNTARILY LEAVING WORK 217-20 Sec. 207.046. INVOLUNTARY SEPARATION 217-21 Sec. 207.047. FAILURE TO APPLY FOR, ACCEPT, OR 217-22 RETURN TO WORK 217-23 Sec. 207.048. LABOR DISPUTES 217-24 Sec. 207.049. RECEIPT OF REMUNERATION 217-25 Sec. 207.050. RECEIPT OF PENSION OR ANNUITY 217-26 Sec. 207.051. SALE OF BUSINESS 217-27 Sec. 207.052. LEAVING WORK TO ATTEND EDUCATIONAL INSTITUTION 218-1 Sec. 207.053. REFUSAL TO TREAT COMMUNICABLE DISEASE 218-2 (Sections 207.054-207.070 reserved for expansion) 218-3 SUBCHAPTER D. PROTECTION OF BENEFIT RIGHTS 218-4 Sec. 207.071. WAIVER, RELEASE, OR COMMUTATION 218-5 AGREEMENT INVALID 218-6 Sec. 207.072. ACCEPTANCE OR REQUIREMENT OF 218-7 WAIVER PROHIBITED 218-8 Sec. 207.073. PROHIBITED DEDUCTION FROM WAGES 218-9 Sec. 207.074. CRIMINAL OFFENSE; PENALTY 218-10 Sec. 207.075. ASSIGNMENT OF BENEFITS PROHIBITED; 218-11 BENEFIT EXEMPTIONS 218-12 Sec. 207.076. EQUAL TREATMENT 218-13 (Sections 207.077-207.090 reserved for expansion) 218-14 SUBCHAPTER E. CHILD SUPPORT OBLIGATIONS 218-15 Sec. 207.091. DEFINITIONS 218-16 Sec. 207.092. DISCLOSURE OF CHILD SUPPORT OBLIGATIONS 218-17 Sec. 207.093. WITHHOLDING OF CHILD SUPPORT BY COMMISSION 218-18 Sec. 207.094. FEDERAL LAW REQUIREMENT 218-19 CHAPTER 207. BENEFITS 218-20 SUBCHAPTER A. PAYMENT OF BENEFITS 218-21 Sec. 207.001. PAYMENT OF BENEFITS. Benefits are paid 218-22 through the commission in accordance with rules adopted by the 218-23 commission and are due and payable under this subtitle only to the 218-24 extent provided by this subtitle. (V.A.C.S. Arts. 5221b-1(a), 218-25 5221b-16 (part).) 218-26 Sec. 207.002. BENEFITS FOR TOTAL UNEMPLOYMENT. (a) An 218-27 eligible individual who is totally unemployed in a benefit period 219-1 is entitled to benefits for the benefit period at the rate of 1/25 219-2 of the wages received by the individual from employment by 219-3 employers during that quarter in the individual's base period in 219-4 which wages were highest. The rate of benefits paid under this 219-5 section may not be more than $84 or less than $15 for each benefit 219-6 period. 219-7 (b) For each complete increment of $10 by which the annual 219-8 average of the manufacturing production workers' average weekly 219-9 wage in this state exceeds the 1976 average weekly wage for those 219-10 workers, as determined by the commission and published in its 219-11 report, "The Average Weekly Wage," the maximum benefit amount 219-12 established in Subsection (a) is increased by $7 and the minimum 219-13 benefit amount established in Subsection (a) is increased by $1. 219-14 (c) The commission shall compute the maximum benefit amount 219-15 for a claim filed on or after October 1, 1989, without 219-16 consideration of any increase in the average weekly wage for 219-17 manufacturing workers in this state for the years 1986 and 1987. 219-18 (d) An increase in maximum and minimum benefit amounts under 219-19 this section takes effect on October 1 following publication of 219-20 "The Average Weekly Wage" report. 219-21 (e) The maximum benefit amount payable to an individual for 219-22 a benefit period under this section on the effective date of a 219-23 valid claim is the maximum benefit amount payable to that 219-24 individual until the individual establishes a new benefit year. 219-25 (f) In this section, "wages" has the meaning assigned in 219-26 Subchapter F, Chapter 201, except that the limitation of wages 219-27 provided in Section 201.082(1) does not apply. (V.A.C.S. Arts. 220-1 5221b-1(b) (part), (b-1) (part), (e) (part).) 220-2 Sec. 207.003. BENEFITS FOR PARTIAL UNEMPLOYMENT. (a) An 220-3 eligible individual who is partially unemployed in a benefit period 220-4 is entitled to partial benefits for that benefit period. 220-5 (b) The amount of a partial benefit is computed by: 220-6 (1) adding the individual's benefit amount and the 220-7 greater of $5 or 25 percent of the benefit amount; and 220-8 (2) subtracting the amount of the wages earned by the 220-9 individual during the benefit period from the amount computed under 220-10 Subdivision (1). 220-11 (c) In this section, "wages" has the meaning assigned in 220-12 Subchapter F, Chapter 201, except that the limitation of wages 220-13 provided in Section 201.082(1) does not apply. (V.A.C.S. Arts. 220-14 5221b-1(c) (part), (e) (part).) 220-15 Sec. 207.004. BENEFIT WAGE CREDITS. (a) The commission 220-16 shall credit an individual's wages received for employment from an 220-17 employer during the individual's base period as the individual's 220-18 benefit wage credits. 220-19 (b) Wages used to qualify an individual for regular benefits 220-20 under this subtitle or under any other unemployment compensation 220-21 law may not be used again to qualify the individual for regular 220-22 benefits. 220-23 (c) If an employer fails to report, when requested by the 220-24 commission, wages that were paid to an individual during a base 220-25 period, the commission may determine the amount of benefit wage 220-26 credits for the individual for the base period from the best 220-27 information obtained by the commission. 221-1 (d) In this section: 221-2 (1) "Benefit wage credits" means those wages used to 221-3 determine an individual's right to benefits. 221-4 (2) "Wages" has the meaning assigned in Subchapter F, 221-5 Chapter 201, except that the limitation of wages provided in 221-6 Section 201.082(1) does not apply. (V.A.C.S. Arts. 5221b-1(d) 221-7 (part), (e).) 221-8 Sec. 207.005. MAXIMUM AMOUNT OF BENEFITS. The maximum 221-9 amount of benefits payable to an eligible individual during a 221-10 benefit year may not exceed the lesser of: 221-11 (1) 26 times the individual's benefit amount; or 221-12 (2) 27 percent of the individual's benefit wage 221-13 credits. (V.A.C.S. Art. 5221b-1(d) (part).) 221-14 Sec. 207.006. ADJUSTMENT OF BENEFITS. If a benefit rate or 221-15 benefit payable computed under this chapter is not a multiple of 221-16 $1, the benefit rate or benefit payable is increased to the next 221-17 multiple of $1. (V.A.C.S. Arts. 5221b-1(b) (part), (c) (part), 221-18 (d) (part); 5221b-3(e) (part), (h) (part).) 221-19 Sec. 207.007. FEES LIMITATION; LEGAL REPRESENTATION; 221-20 CRIMINAL OFFENSE; PENALTY. (a) An individual claiming benefits 221-21 under this subtitle may not be charged a fee in a proceeding under 221-22 this subtitle by: 221-23 (1) the commission or a representative of the 221-24 commission; or 221-25 (2) a court or an officer of a court. 221-26 (b) An individual claiming benefits in a proceeding before 221-27 the commission or a court may be represented by counsel or another 222-1 authorized agent. Counsel or an agent representing an individual 222-2 under this subtitle may not charge or receive a fee for these 222-3 services greater than an amount approved by the commission. 222-4 (c) A person who violates this section commits an offense. 222-5 An offense under this section is punishable by: 222-6 (1) a fine of not less than $50 and not more than 222-7 $500; 222-8 (2) imprisonment for not more than six months; or 222-9 (3) both a fine and imprisonment. (V.A.C.S. Art. 222-10 5221b-13(b).) 222-11 Sec. 207.008. SUITABLE WORK. (a) In determining whether 222-12 work is suitable for an individual, the commission shall consider: 222-13 (1) the degree of risk involved to the individual's 222-14 health, safety, and morals at the place of performance of the work; 222-15 (2) the individual's physical fitness and previous 222-16 training; 222-17 (3) the individual's experience and previous earnings; 222-18 (4) the individual's length of unemployment and 222-19 prospects for securing local work in the individual's customary 222-20 occupation; and 222-21 (5) the distance of the work from the individual's 222-22 residence. 222-23 (b) Notwithstanding any other provision of this subtitle, 222-24 work is not suitable and benefits may not be denied under this 222-25 subtitle to an otherwise eligible individual for refusal to accept 222-26 new work if: 222-27 (1) the position offered is vacant directly because of 223-1 a strike, lockout, or other labor dispute; 223-2 (2) the wages, hours, or other conditions of the work 223-3 offered are substantially less favorable to the individual than 223-4 those prevailing for similar work in the locality; or 223-5 (3) as a condition of being employed, the individual 223-6 is required to join a company union or to resign from or refrain 223-7 from joining a bona fide labor organization. (V.A.C.S. Arts. 223-8 5221b-3(c)(1), (2).) 223-9 (Sections 207.009-207.020 reserved for expansion) 223-10 SUBCHAPTER B. BENEFIT ELIGIBILITY 223-11 Sec. 207.021. BENEFIT ELIGIBILITY CONDITIONS. (a) Except 223-12 as provided by Chapter 215, an unemployed individual is eligible to 223-13 receive benefits for a benefit period if the individual: 223-14 (1) has registered for work at an employment office 223-15 and has continued to report to the employment office as required by 223-16 rules adopted by the commission; 223-17 (2) has made a claim for benefits under Section 223-18 208.001; 223-19 (3) is able to work; 223-20 (4) is available for work; 223-21 (5) for the individual's base period, has benefit wage 223-22 credits: 223-23 (A) in at least two calendar quarters; and 223-24 (B) in an amount not less than 37 times the 223-25 individual's benefit amount; 223-26 (6) after the beginning date of the individual's most 223-27 recent prior benefit year, if applicable, earned wages in an amount 224-1 equal to not less than six times the individual's benefit amount; 224-2 and 224-3 (7) has been totally or partially unemployed for a 224-4 waiting period of at least seven consecutive days. 224-5 (b) A week may not be counted as a waiting period week for 224-6 the purposes of this section: 224-7 (1) unless the individual has registered for work at 224-8 an employment office in accordance with Subsection (a)(1); 224-9 (2) unless it is after the filing of an initial claim; 224-10 (3) unless the individual reports at an office of the 224-11 commission and certifies that the individual has met the waiting 224-12 period requirements; 224-13 (4) if benefits have been paid or are payable with 224-14 respect to the week; 224-15 (5) if the individual does not meet the eligibility 224-16 requirements of Subsections (a)(3) and (a)(4); and 224-17 (6) if the individual has been disqualified for 224-18 benefits for the seven-day period under Section 207.044, 207.045, 224-19 207.047, or 207.048. 224-20 (c) Notwithstanding any other provision of this section, an 224-21 individual who has been paid benefits in the individual's current 224-22 benefit year equal to or exceeding three times the individual's 224-23 benefit amount is eligible to receive benefits on the individual's 224-24 waiting period claim in accordance with this subtitle. (V.A.C.S. 224-25 Art. 5221b-2.) 224-26 Sec. 207.022. COMMISSION-APPROVED TRAINING. (a) An 224-27 individual may not be denied benefits because the individual is in 225-1 training with the approval of the commission. 225-2 (b) An individual may not be denied benefits for a benefit 225-3 period in which the individual is in training with the approval of 225-4 the commission because of the provisions of Section 207.021 225-5 relating to the individual's: 225-6 (1) availability for work; 225-7 (2) active search for work; or 225-8 (3) refusal to apply for or refusal to accept suitable 225-9 work. 225-10 (c) Approval of training must be obtained as required by 225-11 rules adopted by the commission. (V.A.C.S. Art. 5221b-2a(a).) 225-12 Sec. 207.023. TRAINING UNDER THE TRADE ACT OF 1974. (a) 225-13 This section applies only to training approved under Section 225-14 236(a)(1) of the Trade Act of 1974 (19 U.S.C. Section 2296(a)(1)). 225-15 (b) An otherwise eligible individual may not be denied 225-16 benefits for a week: 225-17 (1) that the individual was in training; 225-18 (2) that the individual left work to enter training if 225-19 the work the individual left was not suitable employment; or 225-20 (3) because of the application to the week in training 225-21 of a provision of this subtitle or a federal unemployment 225-22 compensation law relating to the individual's: 225-23 (A) availability for work; 225-24 (B) active search for work; or 225-25 (C) refusal to accept work. 225-26 (c) For the purposes of Subsection (b), "suitable 225-27 employment" means work for an individual that: 226-1 (1) is of a skill level substantially equal to or 226-2 higher than that of the individual's past adversely affected 226-3 employment, as that term is used by the Trade Act of 1974 (19 226-4 U.S.C. Section 2101 et seq.); and 226-5 (2) pays wages that are not less than 80 percent of 226-6 the individual's average weekly wage as determined for the purposes 226-7 of the Trade Act of 1974 (19 U.S.C. Section 2101 et seq.). 226-8 (V.A.C.S. Art. 5221b-2a(d).) 226-9 Sec. 207.024. CLAIM FILED OR RESIDENCE IN ANOTHER STATE OR 226-10 COUNTRY. An individual's benefits may not be denied or reduced 226-11 solely because at the time the individual filed the claim for 226-12 unemployment compensation the individual: 226-13 (1) files a claim in another state or a contiguous 226-14 country with which the United States has an agreement with respect 226-15 to unemployment compensation; or 226-16 (2) resides in another state or contiguous country 226-17 with which the United States has an agreement with respect to 226-18 unemployment compensation. (V.A.C.S. Art. 5221b-2a(b).) 226-19 Sec. 207.025. PREGNANCY OR TERMINATION OF PREGNANCY. 226-20 Benefits may not be denied to an individual solely because of 226-21 pregnancy or termination of pregnancy. (V.A.C.S. Art. 226-22 5221b-2a(c).) 226-23 (Sections 207.026-207.040 reserved for expansion) 226-24 SUBCHAPTER C. EXCEPTIONS TO AND DISQUALIFICATION FOR BENEFITS 226-25 Sec. 207.041. SERVICES IN EDUCATIONAL INSTITUTIONS. (a) 226-26 Benefits are not payable to an individual based on services 226-27 performed in an instructional, research, or principal 227-1 administrative capacity for an educational institution for a week 227-2 beginning during the period between two successive academic years 227-3 or terms or under an agreement providing for a similar period 227-4 between two regular but not successive terms if: 227-5 (1) the individual performed the services in the first 227-6 of the academic years or terms; and 227-7 (2) there is a contract or reasonable assurance that 227-8 the individual will perform services in that capacity for any 227-9 educational institution in the second of the academic years or 227-10 terms. 227-11 (b) Benefits are not payable to an individual based on 227-12 services performed for an educational institution in a capacity 227-13 other than a capacity described by Subsection (a) for a week that 227-14 begins during a period between two successive academic years or 227-15 terms if: 227-16 (1) the individual performed the services in the first 227-17 of the academic years or terms; and 227-18 (2) there is a reasonable assurance that the 227-19 individual will perform the services in the second of the academic 227-20 years or terms. 227-21 (c) Notwithstanding Subsection (b), if benefits are denied 227-22 to an individual for any week under Subsection (b) and the 227-23 individual is not offered an opportunity to perform services for 227-24 the educational institution for the second of the academic years or 227-25 terms, the individual is entitled to a retroactive payment of the 227-26 benefits for each week that: 227-27 (1) the individual filed a timely claim for benefits; 228-1 and 228-2 (2) the benefits were denied solely because of 228-3 Subsection (b). 228-4 (d) Benefits are not payable to an individual based on 228-5 services performed for an educational institution for a week that 228-6 begins during an established and customary vacation period or 228-7 holiday recess if: 228-8 (1) the individual performed the services in the 228-9 period immediately before the vacation period or holiday recess; 228-10 and 228-11 (2) there is a reasonable assurance that the 228-12 individual will perform the services in the period immediately 228-13 following the vacation period or holiday recess. 228-14 (e) Benefits are not payable as provided under this section 228-15 to an individual based on services performed in an educational 228-16 institution if the individual performed the services while employed 228-17 by an educational service agency. For the purposes of this 228-18 subsection, "educational service agency" means a governmental 228-19 agency or other governmental entity that is established and 228-20 operated exclusively to provide services to one or more educational 228-21 institutions. (V.A.C.S. Art. 5221b-1(f) (part).) 228-22 Sec. 207.042. ATHLETES. Benefits are not payable to an 228-23 individual based on services substantially all of which consist of 228-24 participating in a sport or athletic event or training or preparing 228-25 to participate in a sport or athletic event for a week that begins 228-26 during the period between two successive sport seasons or similar 228-27 periods if: 229-1 (1) the individual performed the services in the first 229-2 of the seasons or periods; and 229-3 (2) there is a reasonable assurance that the 229-4 individual will perform the services in the later of the seasons or 229-5 periods. (V.A.C.S. Art. 5221b-1(g).) 229-6 Sec. 207.043. ALIENS. (a) Benefits are not payable based 229-7 on services performed by an alien unless the alien: 229-8 (1) is an individual who was lawfully admitted for 229-9 permanent residence at the time the services were performed; 229-10 (2) was lawfully present for purposes of performing 229-11 the services; or 229-12 (3) was permanently residing in the United States 229-13 under color of law at the time the services were performed, 229-14 including being lawfully present in the United States as a result 229-15 of the application of Section 212(d)(5) of the Immigration and 229-16 Nationality Act (8 U.S.C. Section 1182(d)(5)). 229-17 (b) Information required of an individual applying for 229-18 benefits to determine whether benefits are payable to the 229-19 individual because of the individual's alien status shall be 229-20 uniformly required from all applicants for benefits. 229-21 (c) A determination that benefits are not payable to an 229-22 individual whose application for the benefits would otherwise be 229-23 approved except for the individual's alien status must be made from 229-24 a preponderance of the evidence. 229-25 (d) A modification of Section 3304(a)(14) of the Federal 229-26 Unemployment Tax Act (26 U.S.C. Section 3304(a)(14)) that specifies 229-27 other conditions or another effective date for the denial of 230-1 benefits based on services performed by aliens that must be 230-2 implemented under state law as a condition for a full tax credit 230-3 against the tax imposed by the Federal Unemployment Tax Act (26 230-4 U.S.C. Section 3301 et seq.) is applicable under this section. 230-5 (V.A.C.S. Art. 5221b-1(h).) 230-6 Sec. 207.044. DISCHARGE FOR MISCONDUCT. (a) An individual 230-7 is disqualified for benefits if the individual was discharged for 230-8 misconduct connected with the individual's last work. 230-9 (b) Disqualification under this section continues until the 230-10 individual has returned to employment and: 230-11 (1) worked for six weeks; or 230-12 (2) earned wages equal to six times the individual's 230-13 benefit amount. (V.A.C.S. Art. 5221b-3(b).) 230-14 Sec. 207.045. VOLUNTARILY LEAVING WORK. (a) An individual 230-15 is disqualified for benefits if the individual left the 230-16 individual's last work voluntarily without good cause connected 230-17 with the individual's work. 230-18 (b) Except as provided by Subsection (c), a disqualification 230-19 for benefits under this section continues until the individual has 230-20 returned to employment and: 230-21 (1) worked for six weeks; or 230-22 (2) earned wages equal to six times the individual's 230-23 benefit amount. 230-24 (c) Disqualification for benefits under this section for an 230-25 individual who left work to move with the individual's spouse from 230-26 the area where the individual worked continues for not less than 230-27 six benefit periods and not more than 25 benefit periods following 231-1 the filing of a valid claim as determined by the commission 231-2 according to the circumstances of the case. 231-3 (d) Notwithstanding any other provision of this section, an 231-4 individual who is available to work may not be disqualified for 231-5 benefits because the individual left work because of: 231-6 (1) a medically verified illness of the individual or 231-7 the individual's minor child; 231-8 (2) injury; 231-9 (3) disability; or 231-10 (4) pregnancy. 231-11 (e) For the purposes of Subsection (d), a medically verified 231-12 illness of a minor child prevents disqualification only if 231-13 reasonable alternative care was not available to the child and the 231-14 employer refused to allow the individual a reasonable amount of 231-15 time off during the illness. 231-16 (f) Military personnel who do not reenlist have not left 231-17 work voluntarily without good cause connected with work. 231-18 (g) An individual who is partially unemployed and who 231-19 resigns that employment to accept other employment that the 231-20 individual reasonably believes will increase the individual's 231-21 weekly wage is not disqualified for benefits under this section. 231-22 (V.A.C.S. Art. 5221b-3(a).) 231-23 Sec. 207.046. INVOLUNTARY SEPARATION. An individual is not 231-24 disqualified for benefits under this subchapter if the work-related 231-25 reason for the individual's separation from employment was urgent, 231-26 compelling, and necessary so as to make the separation involuntary. 231-27 (V.A.C.S. Art. 5221b-3(i).) 232-1 Sec. 207.047. FAILURE TO APPLY FOR, ACCEPT, OR RETURN TO 232-2 WORK. (a) An individual is disqualified for benefits if during 232-3 the individual's current benefit year, the individual failed, 232-4 without good cause, to: 232-5 (1) apply for available, suitable work when directed 232-6 to do so by the commission; 232-7 (2) accept suitable work offered to the individual; or 232-8 (3) return to the individual's customary 232-9 self-employment, if any, when directed to do so by the commission. 232-10 (b) Disqualification for benefits under this section 232-11 continues until the individual has returned to employment and: 232-12 (1) worked for six weeks; or 232-13 (2) earned wages equal to six times the individual's 232-14 benefit amount. (V.A.C.S. Art. 5221b-3(c) (part).) 232-15 Sec. 207.048. LABOR DISPUTES. (a) An individual is 232-16 disqualified for benefits for a benefit period in which the 232-17 individual's total or partial unemployment is caused by: 232-18 (1) the individual's stoppage of work because of a 232-19 labor dispute at the factory, establishment, or other premises 232-20 where the individual is or was last employed; or 232-21 (2) a labor dispute at another place that: 232-22 (A) is owned or operated by the same employing 232-23 unit that owns or operates the premises where the individual is or 232-24 was last employed; and 232-25 (B) supplies material or services necessary to 232-26 the continued and usual operation of the premises where the 232-27 individual is or was last employed. 233-1 (b) Disqualification for benefits under this section does 233-2 not apply to an individual who shows to the satisfaction of the 233-3 commission that the individual: 233-4 (1) is not participating in, financing, or directly 233-5 interested in the labor dispute; and 233-6 (2) does not belong to a grade or class of workers any 233-7 members of which were employed at the premises of the labor dispute 233-8 immediately before the beginning of the labor dispute and any of 233-9 whom are participating in, financing, or directly interested in the 233-10 dispute. 233-11 (c) For the purposes of Subsection (b)(1), failure or 233-12 refusal to cross a picket line or refusal for any reason during the 233-13 continuance of the labor dispute to accept and perform an 233-14 individual's available and customary work at the factory, 233-15 establishment, or other premises where the individual is or was 233-16 last employed constitutes participation and interest in the labor 233-17 dispute. 233-18 (d) An individual may not be disqualified for benefits under 233-19 Subsection (b)(2) if the individual shows that the individual: 233-20 (1) is not, and at the time of the labor dispute, was 233-21 not: 233-22 (A) a member of a labor organization that is the 233-23 same as, represented by, or directly affiliated, acting in concert, 233-24 or in sympathy with the labor organization involved in the labor 233-25 dispute at the premises of the labor dispute; or 233-26 (B) acting in concert or in sympathy with the 233-27 labor organization involved in the labor dispute at the premises of 234-1 the labor dispute; and 234-2 (2) has made an unconditional offer to return to work 234-3 at the premises where the individual is or was last employed. 234-4 (e) If separate branches of work that are commonly conducted 234-5 as separate businesses in separate premises are conducted in 234-6 separate departments of the same premises, each department is a 234-7 separate factory, establishment, or other premises. 234-8 (f) For the purposes of this section, "premises" includes a 234-9 vessel. (V.A.C.S. Art. 5221b-3(d).) 234-10 Sec. 207.049. RECEIPT OF REMUNERATION. (a) An individual 234-11 is disqualified for benefits for a benefit period for which the 234-12 individual is receiving or has received remuneration in the form 234-13 of: 234-14 (1) wages in lieu of notice; 234-15 (2) compensation under a state worker's compensation 234-16 law or a similar law of the United States for: 234-17 (A) temporary partial disability; 234-18 (B) temporary total disability; or 234-19 (C) total and permanent disability; or 234-20 (3) old age benefits or similar payments under: 234-21 (A) Subchapter II of the Social Security Act (42 234-22 U.S.C. Section 401 et seq.); or 234-23 (B) any other federal law or the law of any 234-24 state. 234-25 (b) If the remuneration received by an individual under 234-26 Subsection (a)(3) is less than the benefits that the individual 234-27 would otherwise be eligible to receive, the individual shall 235-1 receive benefits for the benefit period that are reduced by the 235-2 amount of the remuneration, adjusted as provided by Section 235-3 207.006. (V.A.C.S. Art. 5221b-3(e) (part).) 235-4 Sec. 207.050. RECEIPT OF PENSION OR ANNUITY. (a) An 235-5 individual is disqualified for benefits for a benefit period for 235-6 which the individual is receiving or has received a governmental or 235-7 other pension, retirement or retired pay, an annuity, or any other 235-8 similar periodic payment based on the previous work of the 235-9 individual and reasonably attributable to the benefit period. 235-10 (b) Notwithstanding Subsection (a), if the remuneration 235-11 received by an individual is less than the benefits that the 235-12 individual would otherwise be eligible to receive, the individual 235-13 is entitled to receive benefits for the benefit period that are 235-14 reduced by the amount of the remuneration, adjusted as provided by 235-15 Section 207.006. 235-16 (c) This section is enacted because Section 3304(a)(15) of 235-17 the Federal Unemployment Tax Act (26 U.S.C. Section 3304(a)(15)) 235-18 requires that this provision be enacted in state law as of January 235-19 1, 1978, as a condition for full tax credit against the tax imposed 235-20 by that Act. If Section 3304(a)(15) of the Federal Unemployment 235-21 Tax Act (26 U.S.C. Section 3304(a)(15)) is amended to modify these 235-22 federal requirements, the modified requirements are applicable 235-23 under this section to the extent required for full tax credit 235-24 rather than this section. (V.A.C.S. Art. 5221b-3(h) (part).) 235-25 Sec. 207.051. SALE OF BUSINESS. (a) An individual is 235-26 disqualified for benefits after the sale of: 235-27 (1) a corporation and the individual is: 236-1 (A) an officer of the corporation; 236-2 (B) a majority or controlling shareholder in the 236-3 corporation; and 236-4 (C) involved in the sale of the corporation; 236-5 (2) a limited or general partnership and the 236-6 individual is a limited or general partner who is involved in the 236-7 sale of the partnership; or 236-8 (3) a sole proprietorship and the individual is the 236-9 proprietor who sells the business. 236-10 (b) The disqualification under this section is effective for 236-11 the benefit periods occurring during the period beginning on the 236-12 date of the sale of the business and ending on the date the 236-13 individual is employed and eligible for benefits computed on 236-14 benefit wage credits received through the new employment. 236-15 (V.A.C.S. Art. 5221b-3(f).) 236-16 Sec. 207.052. LEAVING WORK TO ATTEND EDUCATIONAL 236-17 INSTITUTION. (a) An individual is disqualified for benefits for a 236-18 period of unemployment for which the individual left the 236-19 individual's most recent work to attend an established educational 236-20 institution. 236-21 (b) This section does not apply to a period in which the 236-22 individual is in training with the approval of the commission under 236-23 Section 207.022. (V.A.C.S. Art. 5221b-3(g).) 236-24 Sec. 207.053. REFUSAL TO TREAT COMMUNICABLE DISEASE. (a) 236-25 An individual is disqualified for benefits if the individual: 236-26 (1) left the individual's last work voluntarily rather 236-27 than provide services included within the course and scope of the 237-1 individual's employment to an individual infected with a 237-2 communicable disease; or 237-3 (2) was discharged from the individual's last work 237-4 because the individual refused to provide services included within 237-5 the course and scope of the individual's employment to an 237-6 individual infected with a communicable disease. 237-7 (b) An individual is not disqualified under this section 237-8 unless the person for whom the individual last worked made 237-9 available to the individual the facilities, equipment, training, 237-10 and supplies necessary to permit the individual to take reasonable 237-11 precautions to preclude the infection of the individual with the 237-12 communicable disease. 237-13 (c) Disqualification for benefits under this section 237-14 continues until the individual has returned to employment and: 237-15 (1) worked for six weeks; or 237-16 (2) earned wages equal to six times the individual's 237-17 weekly benefit amount. (V.A.C.S. Arts. 5221b-3(j), (k).) 237-18 (Sections 207.054-207.070 reserved for expansion) 237-19 SUBCHAPTER D. PROTECTION OF BENEFIT RIGHTS 237-20 Sec. 207.071. WAIVER, RELEASE, OR COMMUTATION AGREEMENT 237-21 INVALID. (a) Except for an employer's waiver under Chapter 204 237-22 and Section 205.011, an agreement by an individual to waive, 237-23 release, or commute the individual's right to benefits or any other 237-24 rights under this subtitle is not valid. 237-25 (b) An agreement by an individual employed by an employer to 237-26 pay all or a portion of a contribution or reimbursement required to 237-27 be paid by the employer under this subtitle is not valid. 238-1 (V.A.C.S. Art. 5221b-13(a) (part).) 238-2 Sec. 207.072. ACCEPTANCE OR REQUIREMENT OF WAIVER 238-3 PROHIBITED. An employer may not require or accept a waiver of a 238-4 right of an individual employed by the employer under this 238-5 subtitle. (V.A.C.S. Art. 5221b-13(a) (part).) 238-6 Sec. 207.073. PROHIBITED DEDUCTION FROM WAGES. An employer 238-7 may not, directly or indirectly, make, require, or accept a 238-8 deduction from wages to finance a contribution or reimbursement 238-9 required to be paid by the employer under this subtitle. (V.A.C.S. 238-10 Art. 5221b-13(a) (part).) 238-11 Sec. 207.074. CRIMINAL OFFENSE; PENALTY. An employer, or 238-12 officer or agent of an employer, commits an offense if the person 238-13 violates Section 207.072 or 207.073. An offense under this section 238-14 is punishable by: 238-15 (1) a fine of not less than $100 and not more than 238-16 $1,000; 238-17 (2) imprisonment for not more than six months; or 238-18 (3) both a fine and imprisonment. (V.A.C.S. Art. 238-19 5221b-13(a) (part).) 238-20 Sec. 207.075. ASSIGNMENT OF BENEFITS PROHIBITED; BENEFIT 238-21 EXEMPTIONS. (a) An assignment, pledge, or encumbrance of a right 238-22 to benefits is not valid. 238-23 (b) A right to benefits is exempt from levy, execution, 238-24 attachment, or any other remedy for debt collection. 238-25 (c) Benefits received by an individual are exempt from debt 238-26 collection if the benefits are not mingled with other funds of the 238-27 individual except for debts incurred for necessaries furnished to 239-1 the individual or the individual's spouse or dependents during the 239-2 time that the individual was unemployed. 239-3 (d) A waiver of an exemption provided by this section is not 239-4 valid. 239-5 (e) Subchapter E prevails over this section to the extent of 239-6 any conflict. (V.A.C.S. Art. 5221b-13(c).) 239-7 Sec. 207.076. EQUAL TREATMENT. Benefits based on services 239-8 for all employers in employment are payable in the same amount, on 239-9 the same terms, and subject to the same conditions, except to the 239-10 extent that Section 207.041 is applicable. (V.A.C.S. Art. 239-11 5221b-1(f) (part).) 239-12 (Sections 207.077-207.090 reserved for expansion) 239-13 SUBCHAPTER E. CHILD SUPPORT OBLIGATIONS 239-14 Sec. 207.091. DEFINITIONS. In this subchapter: 239-15 (1) "Benefit" includes amounts payable by the 239-16 commission under an agreement entered under federal law that 239-17 provides for compensation, assistance, or allowances with respect 239-18 to unemployment. 239-19 (2) "Child support obligation" includes only an 239-20 obligation that is enforced under a plan described by Section 454 239-21 of the Social Security Act (42 U.S.C. Section 654) that has been 239-22 approved by the secretary of health and human services under 239-23 Subtitle IV, Part D, Social Security Act (42 U.S.C. Section 651 et 239-24 seq.). 239-25 (3) "State or local child support enforcement agency" 239-26 means an agency of the state or a political subdivision of the 239-27 state operating under a plan described by Subdivision (2). 240-1 (V.A.C.S. Arts. 5221b-13(d)(5), (7), (8).) 240-2 Sec. 207.092. DISCLOSURE OF CHILD SUPPORT OBLIGATIONS. (a) 240-3 An individual at the time of filing a new claim for benefits shall 240-4 disclose whether the individual owes a child support obligation. 240-5 (b) If the individual discloses a child support obligation 240-6 and the individual is determined to be eligible for benefits, the 240-7 commission shall notify the state or local child support 240-8 enforcement agency enforcing the child support obligation that the 240-9 individual has been determined to be eligible for benefits. 240-10 (V.A.C.S. Art. 5221b-13(d)(1).) 240-11 Sec. 207.093. WITHHOLDING OF CHILD SUPPORT BY COMMISSION. 240-12 (a) The commission shall withhold from the benefits payable to an 240-13 individual that owes a child support obligation an amount equal to: 240-14 (1) any amount required to be withheld under legal 240-15 process properly served on the commission; 240-16 (2) if Subdivision (1) does not apply, the amount 240-17 determined under an agreement submitted to the commission under 240-18 Section 454(20)(B)(i) of the Social Security Act (42 U.S.C. Section 240-19 654) by the state or local child support enforcement agency; or 240-20 (3) if neither Subdivision (1) or (2) applies, the 240-21 amount the individual specifies to the commission to be withheld. 240-22 (b) The commission shall pay the amount withheld under 240-23 Subsection (a) to the appropriate state or local child support 240-24 enforcement agency. The amount withheld shall be treated for all 240-25 purposes as if it were benefits paid to the individual and paid by 240-26 the individual to the state or local child support enforcement 240-27 agency in satisfaction of the individual's child support 241-1 obligation. 241-2 (c) This section applies only if appropriate arrangements 241-3 have been made for reimbursement to the commission by a state or 241-4 local child support enforcement agency for the administrative costs 241-5 incurred by the commission under this subchapter that are 241-6 attributable to the enforcement of child support obligations by the 241-7 state or local child support enforcement agency. 241-8 (d) In this section, "legal process" has the meaning 241-9 assigned by Section 462(e) of the Social Security Act (42 U.S.C. 241-10 Section 662). (V.A.C.S. Arts. 5221b-13(d)(2), (3), (4), (6).) 241-11 Sec. 207.094. FEDERAL LAW REQUIREMENT. (a) This subchapter 241-12 and Section 207.075(e) are enacted because Section 303(e) of the 241-13 Social Security Act (42 U.S.C. Section 503(e)) requires the 241-14 enactment of these provisions into state law as a condition for 241-15 federal funding of administration of the state unemployment 241-16 compensation laws. 241-17 (b) If Section 303(e) of the Social Security Act (42 U.S.C. 241-18 Section 503(e)) is repealed, this subchapter and Section 207.075(e) 241-19 are repealed. (V.A.C.S. Art. 5221b-13(d) (part).) 241-20 CHAPTER 208. BENEFIT CLAIMS 241-21 SUBCHAPTER A. FILING OF CLAIM 241-22 Sec. 208.001. FILING; INFORMATION NOTICES 241-23 Sec. 208.002. NOTICE OF INITIAL CLAIM 241-24 Sec. 208.003. NOTICE TO GOVERNMENTAL EMPLOYER 241-25 Sec. 208.004. NOTIFICATION OF ADVERSE FACTS AFFECTING CLAIM; 241-26 WAIVER 241-27 (Sections 208.005-208.020 reserved for expansion) 242-1 SUBCHAPTER B. CLAIM DETERMINATION 242-2 Sec. 208.021. INITIAL CLAIM DETERMINATION 242-3 Sec. 208.022. NOTICE OF INITIAL CLAIM DETERMINATION 242-4 Sec. 208.023. REQUEST FOR REDETERMINATION OR APPEAL BY 242-5 CLAIMANT 242-6 CHAPTER 208. BENEFIT CLAIMS 242-7 SUBCHAPTER A. FILING OF CLAIM 242-8 Sec. 208.001. FILING; INFORMATION NOTICES. (a) An 242-9 unemployed individual who does not have a current benefit year may 242-10 file an initial claim in accordance with rules adopted by the 242-11 commission. 242-12 (b) The commission shall supply, without cost to each 242-13 employer, printed notices that provide general information about 242-14 filing a claim for unemployment benefits. Each employer shall post 242-15 and maintain the notices in places accessible to the individuals in 242-16 the employ of the employer. (V.A.C.S. Arts. 5221b-4(a), (b) 242-17 (part).) 242-18 Sec. 208.002. NOTICE OF INITIAL CLAIM. (a) The commission 242-19 shall mail a notice of the filing of an initial claim to the person 242-20 for whom the claimant last worked before the effective date of the 242-21 initial claim. If the person for whom the claimant last worked has 242-22 more than one branch or division operating at different locations, 242-23 the commission shall mail the notice to the branch or division at 242-24 which the claimant last worked. 242-25 (b) Mailing of a notice under this section to the correct 242-26 address of the person, branch, or division for which the claimant 242-27 last worked constitutes notice of the claim to the person. 243-1 (V.A.C.S. Art. 5221b-4(b) (part).) 243-2 Sec. 208.003. NOTICE TO GOVERNMENTAL EMPLOYER. (a) A 243-3 governmental employer may designate in writing to the commission an 243-4 address for mail service. 243-5 (b) If a governmental employer designates a mailing address 243-6 under Subsection (a), mailing of notice of claims, determinations, 243-7 or other decisions to that address constitutes notice to the 243-8 governmental employer. (V.A.C.S. Art. 5521b-4(b) (part).) 243-9 Sec. 208.004. NOTIFICATION OF ADVERSE FACTS AFFECTING CLAIM; 243-10 WAIVER. (a) A person to whom notice is mailed under Section 243-11 208.002 shall notify the commission promptly of any facts known to 243-12 the person that may: 243-13 (1) adversely affect the claimant's right to benefits; 243-14 or 243-15 (2) affect a charge to the person's account. 243-16 (b) A person who does not mail or otherwise deliver that 243-17 notification to the commission within 12 days after the date notice 243-18 of a claim was mailed to the person by the commission waives all 243-19 rights in connection with the claim, including rights the person 243-20 may have under Subchapter B, Chapter 204, other than rights 243-21 relating to a clerical or machine error as to the amount of the 243-22 person's chargeback or maximum potential chargeback in connection 243-23 with the claim for benefits. (V.A.C.S. Art. 5221b-4(b) (part).) 243-24 (Sections 208.005-208.020 reserved for expansion) 243-25 SUBCHAPTER B. CLAIM DETERMINATION 243-26 Sec. 208.021. INITIAL CLAIM DETERMINATION. (a) The 243-27 commission shall determine whether an initial claim is valid. 244-1 (b) For each valid initial claim, the commission shall 244-2 determine: 244-3 (1) the claimant's benefit year; 244-4 (2) the benefit amount for total unemployment; and 244-5 (3) the duration of benefits. (V.A.C.S. Art. 244-6 5221b-4(b) (part).) 244-7 Sec. 208.022. NOTICE OF INITIAL CLAIM DETERMINATION. The 244-8 commission shall mail a notice of the determination of an initial 244-9 claim to the claimant's last known address as shown by the 244-10 commission's records. (V.A.C.S. Art. 5221b-4(b) (part).) 244-11 Sec. 208.023. REQUEST FOR REDETERMINATION OR APPEAL BY 244-12 CLAIMANT. A claimant may request a redetermination of or may 244-13 appeal the commission's determination of the validity of an initial 244-14 claim in the manner provided by Chapter 212. The claimant must 244-15 make the request not later than the 14th day after the date the 244-16 commission mailed notice of the determination to the claimant as 244-17 provided by Section 208.022. (V.A.C.S. Art. 5221b-4(b) (part).) 244-18 CHAPTER 209. EXTENDED BENEFITS 244-19 SUBCHAPTER A. GENERAL PROVISIONS 244-20 Sec. 209.001. DEFINITIONS 244-21 Sec. 209.002. APPLICATION OF PROVISIONS RELATING TO 244-22 REGULAR BENEFITS 244-23 Sec. 209.003. FINDINGS 244-24 (Sections 209.004-209.020 reserved for expansion) 244-25 SUBCHAPTER B. DETERMINATION OF EXTENDED BENEFIT PERIOD 244-26 Sec. 209.021. BEGINNING AND ENDING DATES FOR EXTENDED 244-27 BENEFIT PERIOD 245-1 Sec. 209.022. STATE "ON" AND "OFF" INDICATOR WEEKS 245-2 Sec. 209.023. RATE OF INSURED UNEMPLOYMENT 245-3 Sec. 209.024. PUBLIC ANNOUNCEMENT OF EXTENDED 245-4 BENEFIT PERIOD 245-5 (Sections 209.025-209.040 reserved for expansion) 245-6 SUBCHAPTER C. ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS 245-7 Sec. 209.041. ELIGIBILITY FOR EXTENDED BENEFITS 245-8 Sec. 209.042. EXHAUSTION OF REGULAR BENEFITS 245-9 Sec. 209.043. REQUIREMENT TO SEEK WORK 245-10 Sec. 209.044. REQUIREMENT TO ACCEPT OR APPLY 245-11 FOR SUITABLE WORK 245-12 Sec. 209.045. EMPLOYMENT SERVICE REFERRALS TO SUITABLE WORK 245-13 Sec. 209.046. EXCEPTIONS TO REQUIREMENT TO ACCEPT OR APPLY 245-14 FOR SUITABLE WORK 245-15 Sec. 209.047. SUITABLE WORK 245-16 Sec. 209.048. DURATION OF INELIGIBILITY; WORK REQUIREMENTS 245-17 Sec. 209.049. INELIGIBILITY DUE TO DISQUALIFICATION 245-18 Sec. 209.050. INTERSTATE CLAIM 245-19 (Sections 209.051-209.060 reserved for expansion) 245-20 SUBCHAPTER D. AMOUNT OF EXTENDED BENEFITS 245-21 Sec. 209.061. WEEKLY EXTENDED BENEFIT AMOUNT 245-22 Sec. 209.062. MAXIMUM TOTAL EXTENDED BENEFIT AMOUNT 245-23 Sec. 209.063. EFFECT OF TRADE READJUSTMENT ALLOWANCES 245-24 (Sections 209.064-209.080 reserved for expansion) 245-25 SUBCHAPTER E. FINANCING OF EXTENDED BENEFITS 245-26 Sec. 209.081. UNEMPLOYMENT COMPENSATION FUND 245-27 Sec. 209.082. CHARGES TO REIMBURSING EMPLOYER 246-1 Sec. 209.083. CHARGES TO TAXED EMPLOYER 246-2 Sec. 209.084. CHARGES TO GOVERNMENTAL EMPLOYER 246-3 Sec. 209.085. NOTICE TO TAXED BASE PERIOD EMPLOYER 246-4 CHAPTER 209. EXTENDED BENEFITS 246-5 SUBCHAPTER A. GENERAL PROVISIONS 246-6 Sec. 209.001. DEFINITIONS. In this chapter: 246-7 (1) "Eligibility period" means the period consisting 246-8 of the benefit periods in an individual's benefit year that begin 246-9 in an extended benefit period and, if the individual's benefit year 246-10 ends within the extended benefit period, any subsequent benefit 246-11 periods that begin in the extended benefit period. 246-12 (2) "Extended benefit" means a benefit payable to an 246-13 individual under this chapter for a benefit period of unemployment 246-14 in the individual's eligibility period, including a benefit payable 246-15 to a federal civilian employee or to an ex-servicemember under 5 246-16 U.S.C. Chapter 85. 246-17 (3) "Regular benefit" means a benefit, other than an 246-18 extended benefit, payable to an individual under this subtitle or 246-19 another state unemployment compensation law, including a benefit 246-20 payable to a federal civilian employee or an ex-servicemember under 246-21 5 U.S.C. Chapter 85. 246-22 (4) "Secretary" means the United States secretary of 246-23 labor. 246-24 (5) "State unemployment compensation law" means the 246-25 unemployment compensation law of a state if the law is approved by 246-26 the secretary under Section 3304 of the Internal Revenue Code of 246-27 1986 (26 U.S.C. Section 3304). (New; V.A.C.S. Arts. 247-1 5221b-4a(a)(5), (6), (7), (9).) 247-2 Sec. 209.002. APPLICATION OF PROVISIONS RELATING TO REGULAR 247-3 BENEFITS. A provision of this subtitle or a commission rule 247-4 applicable to a claim for or the payment of regular benefits 247-5 applies to a claim for or the payment of extended benefits unless 247-6 the result of the application of the provision or rule is 247-7 inconsistent with this chapter. (V.A.C.S. Art. 5221b-4a(b).) 247-8 Sec. 209.003. FINDINGS. (a) The commission shall make 247-9 findings as necessary to determine an extended benefit period, 247-10 compute the rate of insured unemployment, and determine the 247-11 eligibility or ineligibility or disqualification of an individual 247-12 for extended benefits. 247-13 (b) A finding of an extended benefit period and a 247-14 computation of the rate of insured unemployment shall be made in 247-15 accordance with the rules of the secretary. (V.A.C.S. Arts. 247-16 5221b-4a(a)(2) (part), (3) (part), (c) (part), (f)(2), (h)(1) 247-17 (part).) 247-18 (Sections 209.004-209.020 reserved for expansion) 247-19 SUBCHAPTER B. DETERMINATION OF EXTENDED BENEFIT PERIOD 247-20 Sec. 209.021. BEGINNING AND ENDING DATES FOR EXTENDED 247-21 BENEFIT PERIOD. (a) Except as provided by Subsection (b), an 247-22 extended benefit period begins with the third week after a week 247-23 with a state "on" indicator. 247-24 (b) An extended benefit period may not begin before the 14th 247-25 week after the end of a previous extended benefit period in effect 247-26 for this state. 247-27 (c) An extended benefit period ends with the later of: 248-1 (1) the third week after the first week with a state 248-2 "off" indicator; or 248-3 (2) the 13th consecutive week of the period. 248-4 (V.A.C.S. Art. 5221b-4a(a)(1).) 248-5 Sec. 209.022. STATE "ON" AND "OFF" INDICATOR WEEKS. (a) 248-6 Except for a week to which Subsection (b) applies, a week is a 248-7 state "on" indicator week if the rate of insured unemployment for 248-8 the period consisting of that week and the preceding 12 weeks: 248-9 (1) is five percent or more; and 248-10 (2) equalled or exceeded 120 percent of the average of 248-11 the rates for the corresponding 13-week period ending in each of 248-12 the preceding two calendar years. 248-13 (b) If the determination that the week is a state "on" 248-14 indicator week would begin an extended benefit period, the week is 248-15 a state "on" indicator week if the rate of insured unemployment for 248-16 the period consisting of that week and the preceding 12 weeks is 248-17 six percent or more. 248-18 (c) Except for a week to which Subsection (d) applies, a 248-19 week is a state "off" indicator week if the rate of insured 248-20 unemployment for the period consisting of that week and the 248-21 preceding 12 weeks is less than: 248-22 (1) five percent; or 248-23 (2) 120 percent of the average of the rates for the 248-24 corresponding 13-week period ending in each of the preceding two 248-25 calendar years. 248-26 (d) If the determination that a week is a state "off" 248-27 indicator week would end an extended benefit period, the week is a 249-1 state "off" indicator week if the rate of insured unemployment for 249-2 the period consisting of that week and the preceding 12 weeks is 249-3 less than six percent. 249-4 (e) Notwithstanding Subsection (d), any week that would 249-5 otherwise be a state "on" indicator week under Subsection (a) may 249-6 not be a state "off" indicator week. 249-7 (f) The rate of insured unemployment as used in this section 249-8 is not to be seasonally adjusted. (V.A.C.S. Arts. 5221b-4a(a)(2) 249-9 (part), (3) (part).) 249-10 Sec. 209.023. RATE OF INSURED UNEMPLOYMENT. For the purpose 249-11 of Section 209.022, the rate of insured unemployment is computed 249-12 by: 249-13 (1) dividing: 249-14 (A) the average weekly number of individuals 249-15 filing claims for regular compensation in this state for weeks of 249-16 unemployment with respect to the most recent 13-consecutive-week 249-17 period, as determined by the commission from the commission's 249-18 reports to the secretary; by 249-19 (B) the average monthly employment covered under 249-20 this subtitle for the first four of the most recent six completed 249-21 calendar quarters ending before the end of the 13-week period; and 249-22 (2) multiplying the quotient by 100 to determine a 249-23 percentage rate. (V.A.C.S. Art. 5221b-4a(a)(4).) 249-24 Sec. 209.024. PUBLIC ANNOUNCEMENT OF EXTENDED BENEFIT 249-25 PERIOD. The commission shall publicly announce, in accordance with 249-26 commission rule, the beginning of each extended benefit period and 249-27 the termination of each extended benefit period. (V.A.C.S. Art. 250-1 5221b-4a(f)(1).) 250-2 (Sections 209.025-209.040 reserved for expansion) 250-3 SUBCHAPTER C. ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS 250-4 Sec. 209.041. ELIGIBILITY FOR EXTENDED BENEFITS. An 250-5 individual is eligible to receive extended benefits for a benefit 250-6 period of unemployment in the individual's eligibility period if, 250-7 with respect to the benefit period, the individual: 250-8 (1) has exhausted all regular benefits; and 250-9 (2) satisfies the requirements of this subtitle for 250-10 the receipt of regular benefits that are applicable to an 250-11 individual claiming extended benefits, including not being 250-12 disqualified for the receipt of benefits. (V.A.C.S. Art. 250-13 5221b-4a(c) (part).) 250-14 Sec. 209.042. EXHAUSTION OF REGULAR BENEFITS. (a) An 250-15 individual has exhausted regular benefits with respect to a benefit 250-16 period of unemployment in the individual's eligibility period if 250-17 the individual: 250-18 (1) before that period: 250-19 (A) has received all of the regular benefits 250-20 available to the individual in the individual's current benefit 250-21 year that includes the benefit period; or 250-22 (B) had a benefit year expire and does not have 250-23 benefit wage credits sufficient to establish a new benefit year 250-24 that would include the benefit period; 250-25 (2) is not entitled to unemployment benefits or 250-26 allowances under the Railroad Unemployment Insurance Act (45 U.S.C. 250-27 Section 351 et seq.) or other federal law as specified in 251-1 regulations issued by the secretary; and 251-2 (3) has not received unemployment benefits under the 251-3 unemployment compensation law of Canada and is not seeking those 251-4 benefits, or has sought those benefits and the appropriate agency 251-5 finally determines that the individual is not entitled to benefits 251-6 under that law. 251-7 (b) For the purposes of Subsection (a)(1)(A), an individual 251-8 is considered to have received all of the regular benefits 251-9 available to the individual even if, as a result of a pending 251-10 appeal with respect to benefit wage credits not considered in the 251-11 original monetary determination in the individual's benefit year, 251-12 the individual may subsequently be determined to be entitled to 251-13 added regular benefits. (V.A.C.S. Art. 5221b-4a(a)(8).) 251-14 Sec. 209.043. REQUIREMENT TO SEEK WORK. (a) An individual 251-15 is ineligible for payment of extended benefits for a benefit period 251-16 in the individual's eligibility period if during that period the 251-17 individual failed to actively seek work. 251-18 (b) For purposes of Subsection (a), an individual is 251-19 actively seeking work during a benefit period if the individual: 251-20 (1) engages in a systematic and sustained effort to 251-21 obtain work during the benefit period; and 251-22 (2) furnishes tangible evidence of that effort. 251-23 (V.A.C.S. Arts. 5221b-4a(h)(1) (part), (5).) 251-24 Sec. 209.044. REQUIREMENT TO ACCEPT OR APPLY FOR SUITABLE 251-25 WORK. An individual is ineligible for payment of extended benefits 251-26 for a benefit period in the individual's eligibility period if 251-27 during that period the individual failed to: 252-1 (1) accept an offer of suitable work; or 252-2 (2) apply for suitable work to which the individual 252-3 was referred by the commission. (V.A.C.S. Art. 5221b-4a(h)(1) 252-4 (part).) 252-5 Sec. 209.045. EMPLOYMENT SERVICE REFERRALS TO SUITABLE WORK. 252-6 The employment service shall refer a claimant entitled to extended 252-7 benefits to suitable work that meets the standards prescribed in 252-8 Sections 209.046, 209.047(a), and 209.047(b). (V.A.C.S. Art. 252-9 5221b-4a(h)(6).) 252-10 Sec. 209.046. EXCEPTIONS TO REQUIREMENT TO ACCEPT OR APPLY 252-11 FOR SUITABLE WORK. An individual may not be denied extended 252-12 benefits for failure to accept a job offer of suitable work or 252-13 apply for suitable work if: 252-14 (1) the work was not offered to the individual in 252-15 writing and was not listed with the employment service; or 252-16 (2) failure to accept or apply for the work would not 252-17 result in a denial of benefits under the applicable suitable work 252-18 requirements for a regular benefit claimant in Section 207.008, to 252-19 the extent that the standards of suitability in that section are 252-20 not inconsistent with Section 209.047. (V.A.C.S. Art. 252-21 5221b-4a(h)(3) (part).) 252-22 Sec. 209.047. SUITABLE WORK. (a) For the purposes of this 252-23 subchapter, and subject to Subsections (b) and (c), suitable work 252-24 for an individual is work: 252-25 (1) within the individual's capabilities; 252-26 (2) for which the gross average weekly remuneration 252-27 payable exceeds the sum of: 253-1 (A) the individual's weekly extended benefit 253-2 amount computed under Section 209.061; and 253-3 (B) the amount, if any, of supplemental 253-4 unemployment compensation benefits, as defined in Section 253-5 501(c)(17)(D) of the Internal Revenue Code of 1986 (26 U.S.C. 253-6 Section 501(c)(17)(D)), payable to the individual for that week; 253-7 and 253-8 (3) that pays wages not less than the greater of: 253-9 (A) the minimum wage under Section 6(a)(1) of 253-10 the Fair Labor Standards Act of 1938 (29 U.S.C. Section 206(a)(1)), 253-11 without regard to any exemption; or 253-12 (B) the applicable state or local minimum wage. 253-13 (b) If an individual furnishes satisfactory evidence to the 253-14 commission that the individual's prospects for obtaining work in 253-15 the individual's customary occupation within a reasonably short 253-16 period are good, the determination of whether work is suitable for 253-17 that individual shall be made in accordance with the provisions of 253-18 Section 207.008 applicable to suitable work for a claimant for 253-19 regular benefits, without regard to the standards of suitability in 253-20 Section 209.046 and this section. 253-21 (c) Work that does not accord with the labor standard 253-22 provisions required by Section 3304(a)(5) of the Internal Revenue 253-23 Code of 1986 (26 U.S.C. Section 3304(a)(5)) is not suitable work 253-24 for an individual. (V.A.C.S. Arts. 5221b-4a(h)(3) (part), (4).) 253-25 Sec. 209.048. DURATION OF INELIGIBILITY; WORK REQUIREMENTS. 253-26 An individual ineligible for extended benefits under Section 253-27 209.043 or 209.044 is ineligible for benefits for a period: 254-1 (1) beginning with the first day of the week following 254-2 the week in which the individual is ineligible under those 254-3 sections; and 254-4 (2) ending when the individual has been employed in 254-5 each of four subsequent weeks, consecutive or nonconsecutive, and 254-6 has earned remuneration in an amount not less than four times the 254-7 weekly extended benefit amount. (V.A.C.S. Art. 5221b-4a(h)(2).) 254-8 Sec. 209.049. INELIGIBILITY DUE TO DISQUALIFICATION. (a) 254-9 Except as provided by Subsection (b), an individual is ineligible 254-10 to receive extended benefits for a benefit period in the 254-11 individual's eligibility period if the individual has been 254-12 disqualified for regular or extended benefits under this subtitle 254-13 because the individual: 254-14 (1) voluntarily left work; 254-15 (2) was discharged for misconduct; or 254-16 (3) failed to accept an offer of or apply for suitable 254-17 work. 254-18 (b) Subsection (a) does not apply if the disqualification is 254-19 terminated in accordance with specific conditions established under 254-20 this subtitle requiring the individual to perform service for 254-21 remuneration after the date of the disqualification. (V.A.C.S. 254-22 Art. 5221b-4a(h)(7).) 254-23 Sec. 209.050. INTERSTATE CLAIM. (a) An individual is 254-24 ineligible for extended benefits payable for a benefit period under 254-25 an interstate claim filed in any state under an interstate benefit 254-26 payment plan if an extended benefit period is not in effect for the 254-27 benefit period in that state. 255-1 (b) Subsection (a) does not apply to the first two benefit 255-2 periods for which extended benefits are payable under an interstate 255-3 claim filed under an interstate benefit payment plan, regardless of 255-4 whether an extended benefit period is in effect for the state, to 255-5 the individual from the extended benefit account established for 255-6 the individual with respect to the benefit year. (V.A.C.S. Art. 255-7 5221b-4a(j).) 255-8 (Sections 209.051-209.060 reserved for expansion) 255-9 SUBCHAPTER D. AMOUNT OF EXTENDED BENEFITS 255-10 Sec. 209.061. WEEKLY EXTENDED BENEFIT AMOUNT. The weekly 255-11 extended benefit amount payable to an individual for a benefit 255-12 period of total unemployment in the individual's eligibility period 255-13 is equal to the weekly benefit amount payable to the individual 255-14 during the individual's applicable benefit year. (V.A.C.S. Art. 255-15 5221b-4a(d).) 255-16 Sec. 209.062. MAXIMUM TOTAL EXTENDED BENEFIT AMOUNT. The 255-17 total extended benefit amount payable to an eligible individual for 255-18 the individual's eligibility period is 50 percent of the total 255-19 amount of regular benefits that were payable to the individual 255-20 under this subtitle in the individual's applicable benefit year. 255-21 (V.A.C.S. Art. 5221b-4a(e).) 255-22 Sec. 209.063. EFFECT OF TRADE READJUSTMENT ALLOWANCES. (a) 255-23 Notwithstanding any other provision of this subtitle, the remaining 255-24 balance of extended benefits that an individual would otherwise be 255-25 entitled to receive in an extended benefit period for benefit 255-26 periods beginning after the end of a benefit year is reduced as 255-27 provided by Subsections (b) and (c) if: 256-1 (1) the benefit year of the individual ends within an 256-2 extended benefit period; and 256-3 (2) the individual receives trade readjustment 256-4 allowances under the Trade Act of 1974 (19 U.S.C. Section 2101 et 256-5 seq.) within that benefit year. 256-6 (b) The balance is reduced by an amount equal to the product 256-7 of: 256-8 (1) the number of benefit periods for which the 256-9 individual received trade readjustment allowances within that 256-10 benefit year; and 256-11 (2) the individual's weekly benefit amount for 256-12 extended benefits. 256-13 (c) The balance may not be reduced to less than zero. 256-14 (V.A.C.S. Art. 5221b-4a(i).) 256-15 (Sections 209.064-209.080 reserved for expansion) 256-16 SUBCHAPTER E. FINANCING OF EXTENDED BENEFITS 256-17 Sec. 209.081. UNEMPLOYMENT COMPENSATION FUND. (a) Extended 256-18 benefits shall be paid from the compensation fund. 256-19 (b) Payments made by the federal government for its share of 256-20 extended benefits shall be deposited in the compensation fund. 256-21 (V.A.C.S. Arts. 5221b-4a(g)(1), (2).) 256-22 Sec. 209.082. CHARGES TO REIMBURSING EMPLOYER. Fifty 256-23 percent of the extended benefit payments based on benefit wage 256-24 credits from a reimbursing employer shall be charged to the 256-25 employer's account and reimbursed by the employer in the same 256-26 manner as a regular benefit payment. Those payments may not be 256-27 used in determining the replenishment ratio in Section 204.045. 257-1 (V.A.C.S. Art. 5221b-4a(g)(3).) 257-2 Sec. 209.083. CHARGES TO TAXED EMPLOYER. (a) Fifty percent 257-3 of extended benefit payments based on benefit wage credits from a 257-4 taxed employer are chargebacks and must be used in determining the 257-5 employer's benefit ratio unless regular benefits paid to the 257-6 individual were determined not to be charged back against the 257-7 employer's account. 257-8 (b) Fifty percent of extended benefit payments based on 257-9 benefit wage credits from a taxed employer, regardless of whether 257-10 charged to an employer, shall be used in the numerator of the 257-11 replenishment ratio in Section 204.045(b). Chargebacks resulting 257-12 from the payment of extended benefits shall be used in the 257-13 denominator of the replenishment ratio in Section 204.045. 257-14 (V.A.C.S. Art. 5221b-4a(g)(4).) 257-15 Sec. 209.084. CHARGES TO GOVERNMENTAL EMPLOYER. The total 257-16 amount of extended benefit payments shall be charged to the 257-17 employer if the payments are based on benefit wage credits earned 257-18 from: 257-19 (1) a state; 257-20 (2) any political subdivision of a state; or 257-21 (3) any instrumentality of any one or more states or 257-22 political subdivisions that is wholly owned by one or more states 257-23 or political subdivisions. (V.A.C.S. Art. 5221b-4a(g)(6) (part).) 257-24 Sec. 209.085. NOTICE TO TAXED BASE PERIOD EMPLOYER. (a) 257-25 The notice to a taxed base period employer of a claim for benefits 257-26 under Section 204.023 or 204.027 must state that if the claim 257-27 results in the payment of extended benefits, the maximum potential 258-1 chargeback may be increased by as much as 25 percent. Further 258-2 notice to the employer of the potential chargeback is not required 258-3 when the extended benefits are paid. 258-4 (b) A taxed employer subject to Section 209.084 is entitled 258-5 to receive notice that its maximum potential chargeback may be 258-6 increased by as much as 50 percent rather than 25 percent as 258-7 provided for other employers. (V.A.C.S. Arts. 5221b-4a(g)(5), (6) 258-8 (part).) 258-9 CHAPTER 210. BACK PAY AWARDS; LOST OR MISPLACED WARRANTS 258-10 SUBCHAPTER A. BACK PAY AWARDS 258-11 Sec. 210.001. NOTICE OF BACK PAY AWARD REDUCTION 258-12 Sec. 210.002. REIMBURSEMENT BY EMPLOYER FOR REDUCTION 258-13 OF BACK PAY AWARD 258-14 Sec. 210.003. EMPLOYEE'S LIABILITY; SOLE LIABILITY 258-15 OF EMPLOYER 258-16 (Sections 210.004-210.010 reserved for expansion) 258-17 SUBCHAPTER B. LOST OR MISPLACED WARRANTS 258-18 Sec. 210.011. DUPLICATE FOR LOST OR MISPLACED WARRANT 258-19 Sec. 210.012. CANCELLATION OF WARRANT 258-20 Sec. 210.013. DEADLINE FOR ISSUANCE OF DUPLICATE WARRANT 258-21 CHAPTER 210. BACK PAY AWARDS; LOST OR MISPLACED WARRANTS 258-22 SUBCHAPTER A. BACK PAY AWARDS 258-23 Sec. 210.001. NOTICE OF BACK PAY AWARD REDUCTION. If a back 258-24 pay award to a claimant is reduced because of the receipt of 258-25 unemployment compensation benefits by the claimant, the employer 258-26 against whom the back pay award was made shall notify the 258-27 commission of the back pay award in writing not later than the 12th 259-1 day after the date on which the employer learns about the 259-2 reduction. (V.A.C.S. Art. 5221b-5c(a).) 259-3 Sec. 210.002. REIMBURSEMENT BY EMPLOYER FOR REDUCTION OF 259-4 BACK PAY AWARD. (a) Subject to Subsection (b), an employer who is 259-5 assessed a back pay award that is reduced because of the receipt of 259-6 unemployment compensation benefits by the claimant shall reimburse 259-7 the compensation fund for benefits paid from the compensation fund 259-8 in an amount equal to the amount of the reduction in the back pay 259-9 award. 259-10 (b) An employer is not liable under this section to pay more 259-11 than the amount that the commission determines the claimant was 259-12 overpaid unemployment compensation benefits because of the back pay 259-13 award. 259-14 (c) An employer shall reimburse the compensation fund as 259-15 provided by rules adopted by the commission. 259-16 (d) The commission shall credit the payment of reimbursement 259-17 by an employer against the overpayment of benefits. (V.A.C.S. 259-18 Arts. 5221b-5c(b), (c) (part).) 259-19 Sec. 210.003. EMPLOYEE'S LIABILITY; SOLE LIABILITY OF 259-20 EMPLOYER. A claimant is not liable for an overpayment of benefits 259-21 that results from a back pay award and for which the employer 259-22 against whom the award is made is required under Section 210.002 to 259-23 reimburse the compensation fund, and the employer's liability is 259-24 the only liability because of the overpayment. This section 259-25 prevails over any conflicting provision of this subtitle. 259-26 (V.A.C.S. Art. 5221b-5c(c) (part).) 259-27 (Sections 210.004-210.010 reserved for expansion) 260-1 SUBCHAPTER B. LOST OR MISPLACED WARRANTS 260-2 Sec. 210.011. DUPLICATE FOR LOST OR MISPLACED WARRANT. (a) 260-3 The comptroller may issue to a claimant a duplicate warrant for a 260-4 warrant issued in payment of benefits under this subtitle if: 260-5 (1) the claimant entitled to receive the warrant loses 260-6 or for any reason fails to receive the warrant; and 260-7 (2) there is satisfactory proof of the loss or failure 260-8 to receive the warrant. 260-9 (b) The duplicate warrant shall be issued as provided by 260-10 Section 403.054, Government Code. (V.A.C.S. Art. 5221b-7(d) 260-11 (part).) 260-12 Sec. 210.012. CANCELLATION OF WARRANT. If a claimant fails 260-13 or refuses to present a warrant issued for benefits before the 260-14 first anniversary of the date on which the warrant was issued, the 260-15 warrant is canceled, and the treasurer may not pay the warrant. 260-16 (V.A.C.S. Art. 5221b-7(d) (part).) 260-17 Sec. 210.013. DEADLINE FOR ISSUANCE OF DUPLICATE WARRANT. A 260-18 duplicate warrant may not be issued under this chapter after the 260-19 first anniversary of the date of the original warrant. (V.A.C.S. 260-20 Art. 5221b-7(d) (part).) 260-21 CHAPTER 211. RECIPROCAL ARRANGEMENTS 260-22 Sec. 211.001. LOCATION OF SERVICE FOR UNEMPLOYMENT 260-23 INSURANCE PURPOSES 260-24 Sec. 211.002. LOCATION OF SERVICE OF STATE EMPLOYEES 260-25 Sec. 211.003. COMBINATION OF WAGES AND EMPLOYMENT 260-26 Sec. 211.004. OFFSET FOR OVERPAYMENT OF 260-27 UNEMPLOYMENT BENEFITS 261-1 Sec. 211.005. INTERSTATE OR FOREIGN COMMERCE 261-2 Sec. 211.006. RECIPROCAL TREATMENT BY FEDERAL AGENCY 261-3 CHAPTER 211. RECIPROCAL ARRANGEMENTS 261-4 Sec. 211.001. LOCATION OF SERVICE FOR UNEMPLOYMENT INSURANCE 261-5 PURPOSES. The commission may enter into arrangements with an 261-6 appropriate agency of another state or a federal agency under which 261-7 an individual performing services in this and one or more other 261-8 states for an employing unit is considered to be engaged in 261-9 employment entirely in: 261-10 (1) this state; 261-11 (2) one of the other states in which the individual 261-12 performs some of the services; 261-13 (3) the state of the individual's residence; or 261-14 (4) the state in which the employing unit maintains a 261-15 place of business. (V.A.C.S. Art. 5221b-15a(a).) 261-16 Sec. 211.002. LOCATION OF SERVICE OF STATE EMPLOYEES. (a) 261-17 The commission may enter into a reciprocal arrangement with the 261-18 appropriate agency of another state under which a state employee 261-19 who performs services in the state that is not the employing state 261-20 is considered to be engaged in employment performed entirely in the 261-21 employing state. 261-22 (b) The commission shall enter the arrangement on request of 261-23 an agency of this state that has an employee performing a service 261-24 in another state. (V.A.C.S. Art. 5221b-15a(e).) 261-25 Sec. 211.003. COMBINATION OF WAGES AND EMPLOYMENT. The 261-26 commission shall participate in an arrangement for the payment of 261-27 benefits determined by combining an individual's wages and 262-1 employment covered under this subtitle and the wages and employment 262-2 covered under the unemployment compensation laws of another state 262-3 or the United States, or both, if the arrangement is approved by 262-4 the United States secretary of labor in consultation with the state 262-5 unemployment compensation agencies as reasonably calculated to 262-6 ensure the prompt and full payment of benefits. The arrangement 262-7 must provide for: 262-8 (1) applying the base period of one unemployment 262-9 compensation law to a claim that combines an individual's wages and 262-10 employment covered under two or more unemployment compensation 262-11 laws; and 262-12 (2) avoiding the duplicate use of wages and employment 262-13 because of the combination. (V.A.C.S. Art. 5221b-15a(b).) 262-14 Sec. 211.004. OFFSET FOR OVERPAYMENT OF UNEMPLOYMENT 262-15 BENEFITS. (a) Notwithstanding any other provision of this 262-16 subtitle, the commission may enter into a reciprocal arrangement 262-17 with an appropriate state or federal agency, or both, that 262-18 provides: 262-19 (1) an overpayment of benefits under this subtitle is 262-20 recovered by offset from unemployment benefits otherwise payable 262-21 under the unemployment compensation law of another state or of the 262-22 United States; and 262-23 (2) an overpayment of unemployment benefits under the 262-24 unemployment compensation law of the other state or the United 262-25 States are recovered by offset from benefits payable under this 262-26 subtitle. 262-27 (b) A procedure for notice and opportunity for a hearing 263-1 that applies to the recovery of an overpayment of unemployment 263-2 benefits paid under this subtitle applies to an offset of those 263-3 benefits under this section. 263-4 (c) In this section, "unemployment benefits" means 263-5 unemployment compensation benefits, trade adjustment allowances, 263-6 and other unemployment assistance. (V.A.C.S. Art. 5221b-15a(f).) 263-7 Sec. 211.005. INTERSTATE OR FOREIGN COMMERCE. The 263-8 commission may enter into a reciprocal arrangement with the 263-9 appropriate agency of another state or federal agency, or both, 263-10 under which service on a vessel or aircraft engaged in interstate 263-11 or foreign commerce for a single employer is considered to be 263-12 performed in this state or in another state, regardless of where 263-13 the service is performed. (V.A.C.S. Art. 5221b-15a(d).) 263-14 Sec. 211.006. RECIPROCAL TREATMENT BY FEDERAL AGENCY. (a) 263-15 The commission may enter into an agreement with the proper agency 263-16 under an Act of Congress establishing an unemployment compensation 263-17 system to provide reciprocal treatment to an individual: 263-18 (1) who has acquired a right to unemployment 263-19 compensation under the Act of Congress after acquiring a potential 263-20 right to benefits under this subtitle; or 263-21 (2) who has acquired a right to benefits under this 263-22 subtitle after acquiring a potential right to unemployment 263-23 compensation under the Act of Congress. 263-24 (b) An agreement under this section takes effect 10 days 263-25 after the date on which the agreement is published in the manner 263-26 provided for a rule. (V.A.C.S. Art. 5221b-17(g)(5)(A) (part).) 263-27 CHAPTER 212. DISPUTE RESOLUTION 264-1 SUBCHAPTER A. GENERAL PROVISIONS 264-2 Sec. 212.001. PROCEDURES 264-3 Sec. 212.002. RECORD 264-4 Sec. 212.003. WITNESS FEES 264-5 Sec. 212.004. PAYMENT OF BENEFITS PENDING APPEAL 264-6 Sec. 212.005. CHARGEBACK ON REVERSAL OF DETERMINATION OR 264-7 DECISION ALLOWING BENEFITS PROHIBITED 264-8 Sec. 212.006. RECOVERY OF BENEFITS PAID 264-9 (Sections 212.007-212.050 reserved for expansion) 264-10 SUBCHAPTER B. EXAMINERS 264-11 Sec. 212.051. DETERMINATION BY EXAMINER ON NOTIFICATION 264-12 Sec. 212.052. DETERMINATION BY EXAMINER ON EXAMINER'S 264-13 OWN MOTION 264-14 Sec. 212.053. DETERMINATION FINAL; APPEAL 264-15 Sec. 212.054. REDETERMINATION BY EXAMINER 264-16 (Sections 212.055-212.100 reserved for expansion) 264-17 SUBCHAPTER C. APPEAL TRIBUNALS 264-18 Sec. 212.101. ESTABLISHMENT OF APPEAL TRIBUNALS 264-19 Sec. 212.102. ACTION BY APPEAL TRIBUNAL 264-20 Sec. 212.103. NOTICE OF APPEAL TRIBUNAL ACTION 264-21 Sec. 212.104. DECISION CONSIDERED FINAL COMMISSION DECISION 264-22 Sec. 212.105. REMOVAL OR TRANSFER OF CLAIM PENDING BEFORE 264-23 APPEAL TRIBUNAL 264-24 (Sections 212.106-212.150 reserved for expansion) 264-25 SUBCHAPTER D. COMMISSION REVIEW 264-26 Sec. 212.151. REVIEW OF APPEAL TRIBUNAL DECISION 264-27 Sec. 212.152. NOTICE OF COMMISSION ACTION 265-1 Sec. 212.153. FINALITY OF COMMISSION DECISION 265-2 (Sections 212.154-212.200 reserved for expansion) 265-3 SUBCHAPTER E. JUDICIAL REVIEW OF COMMISSION DECISION 265-4 Sec. 212.201. COMMENCEMENT OF JUDICIAL REVIEW; DEFENDANTS 265-5 Sec. 212.202. STANDARD OF JUDICIAL REVIEW; EXCEPTIONS NOT 265-6 NECESSARY 265-7 Sec. 212.203. EXHAUSTION OF REMEDIES 265-8 Sec. 212.204. FILING OF ACTION 265-9 Sec. 212.205. PETITION; SUPERSEDEAS 265-10 Sec. 212.206. COMMISSION CONSIDERED PARTY TO JUDICIAL REVIEW; 265-11 NOTICE OF PETITION 265-12 Sec. 212.207. REPRESENTATION OF COMMISSION 265-13 Sec. 212.208. PRECEDENCE OVER OTHER CIVIL ACTIONS 265-14 Sec. 212.209. ENTRY OF COMMISSION ORDER ON FINAL DETERMINATION 265-15 OF JUDICIAL PROCEEDING 265-16 Sec. 212.210. APPEAL BOND NOT REQUIRED 265-17 CHAPTER 212. DISPUTE RESOLUTION 265-18 SUBCHAPTER A. GENERAL PROVISIONS 265-19 Sec. 212.001. PROCEDURES. The manner in which disputed 265-20 claims are presented, the reports on disputed claims required from 265-21 claimants, employers, or other persons, and the conduct of hearings 265-22 and appeals must be in accordance with rules adopted by the 265-23 commission for determining the rights of parties to disputed 265-24 claims. (V.A.C.S. Art. 5221b-4(f) (part).) 265-25 Sec. 212.002. RECORD. (a) A complete record shall be kept 265-26 of proceedings in connection with a disputed claim. 265-27 (b) Testimony at any hearing on a disputed claim shall be 266-1 recorded. (V.A.C.S. Art. 5221b-4(f) (part).) 266-2 Sec. 212.003. WITNESS FEES. (a) A witness subpoenaed under 266-3 this chapter is entitled to a fee at a rate set by the commission. 266-4 (b) The witness fee is an expense of administering this 266-5 subtitle. (V.A.C.S. Art. 5221b-4(g).) 266-6 Sec. 212.004. PAYMENT OF BENEFITS PENDING APPEAL. (a) 266-7 Except as otherwise provided by this section, benefits shall be 266-8 paid in accordance with a final determination. 266-9 (b) Benefits shall be paid promptly in accordance with: 266-10 (1) a determination or redetermination of an examiner; 266-11 (2) a decision of an appeal tribunal; 266-12 (3) a decision of the commission; or 266-13 (4) a decision of a reviewing court. 266-14 (c) Subsection (b) applies without regard to: 266-15 (1) any provision of this subtitle under which 266-16 benefits may be paid or denied; or 266-17 (2) the pendency of: 266-18 (A) a period to: 266-19 (i) apply for reconsideration; 266-20 (ii) file an appeal; or 266-21 (iii) petition for judicial review; 266-22 (B) an application for reconsideration; 266-23 (C) an appeal; or 266-24 (D) a petition for judicial review. 266-25 (d) Benefits paid under a determination, redetermination, or 266-26 decision continue until the determination, redetermination, or 266-27 decision is modified or reversed by a subsequent redetermination or 267-1 decision, and shall be paid or denied in accordance with the 267-2 modifying or reversing redetermination or decision. (V.A.C.S. Art. 267-3 5221b-4(b) (part).) 267-4 Sec. 212.005. CHARGEBACK ON REVERSAL OF DETERMINATION OR 267-5 DECISION ALLOWING BENEFITS PROHIBITED. A chargeback may not be 267-6 made to an employer's account because of payments having been made 267-7 under a determination or decision to the claimant for any benefit 267-8 period with regard to which the claimant is finally denied benefits 267-9 by a modification or reversal of the determination or decision. 267-10 (V.A.C.S. Art. 5221b-4(b) (part).) 267-11 Sec. 212.006. RECOVERY OF BENEFITS PAID. (a) Benefits paid 267-12 to a claimant that are not in accordance with the final 267-13 determination or decision shall be: 267-14 (1) refunded by the claimant to the commission; or 267-15 (2) in the discretion of the commission, deducted from 267-16 future benefits payable to the claimant under this subtitle. 267-17 (b) Benefits paid that are not in accordance with the final 267-18 determination or decision are also collectible in the manner 267-19 provided by Sections 213.031, 213.032, 213.033, 213.035, and 267-20 213.051 for the collection of past due contributions. (V.A.C.S. 267-21 Art. 5221b-4(b) (part).) 267-22 (Sections 212.007-212.050 reserved for expansion) 267-23 SUBCHAPTER B. EXAMINERS 267-24 Sec. 212.051. DETERMINATION BY EXAMINER ON NOTIFICATION. 267-25 (a) If the person for which a claimant last worked files a 267-26 notification with the commission as provided by Section 208.004, an 267-27 examiner shall determine: 268-1 (1) whether the claimant is disqualified from 268-2 receiving benefits under Sections 207.044-207.053; 268-3 (2) the resolution of any other issue affecting the 268-4 claimant's right to receive benefits that arises under any other 268-5 provision of this subtitle; and 268-6 (3) whether, if benefits are to be paid to the 268-7 claimant, a chargeback is to be made to the person's account. 268-8 (b) The examiner shall mail a copy of the determination to 268-9 the claimant and: 268-10 (1) the person for which the claimant last worked; 268-11 (2) the branch or division for which the claimant last 268-12 worked; or 268-13 (3) the address for mail service designated by a 268-14 governmental employer. (V.A.C.S. Art. 5221b-4(b) (part).) 268-15 Sec. 212.052. DETERMINATION BY EXAMINER ON EXAMINER'S OWN 268-16 MOTION. (a) If a notification as provided by Section 208.004 from 268-17 the person for which a claimant last worked is not filed, and 268-18 information on the claim or other information secured raises an 268-19 issue affecting the claimant's right to benefits under this 268-20 subtitle, an examiner shall determine whether the claimant is to 268-21 receive benefits. 268-22 (b) The examiner shall mail a copy of the determination to 268-23 the claimant at the claimant's last known address. (V.A.C.S. Art. 268-24 5221b-4(b) (part).) 268-25 Sec. 212.053. DETERMINATION FINAL; APPEAL. An examiner's 268-26 determination is final for all purposes unless: 268-27 (1) the claimant or the person or branch for which the 269-1 claimant last worked and to whom the copy of the determination is 269-2 mailed files an appeal from the determination not later than the 269-3 14th calendar day after the date on which the copy of the 269-4 determination is mailed to the last known address of the claimant, 269-5 person, or branch as shown by commission records; 269-6 (2) an examiner files an appeal from the determination 269-7 within the period specified in Subdivision (1); or 269-8 (3) an examiner makes a redetermination as provided by 269-9 Section 212.054. (V.A.C.S. Art. 5221b-4(b) (part).) 269-10 Sec. 212.054. REDETERMINATION BY EXAMINER. (a) If an 269-11 examiner discovers an error in connection with a determination or 269-12 discovers additional information not previously available, the 269-13 examiner, within the period specified in Section 212.053(1), may 269-14 reconsider and redetermine the determination. 269-15 (b) An examiner's redetermination replaces the original 269-16 determination and becomes final unless the claimant or the person 269-17 for which the claimant last worked files an appeal from the 269-18 redetermination not later than the 14th calendar day after the date 269-19 on which a copy of the redetermination is mailed to the claimant's 269-20 or person's last known address as shown by commission records. 269-21 (V.A.C.S. Art. 5221b-4(b) (part).) 269-22 (Sections 212.055-212.100 reserved for expansion) 269-23 SUBCHAPTER C. APPEAL TRIBUNALS 269-24 Sec. 212.101. ESTABLISHMENT OF APPEAL TRIBUNALS. (a) The 269-25 commission shall establish one or more impartial appeal tribunals 269-26 to hear and decide disputed claims if the establishment of those 269-27 appeal tribunals is necessary to ensure prompt disposal of cases on 270-1 appeal. 270-2 (b) An appeal tribunal is composed of a salaried examiner. 270-3 (V.A.C.S. Art. 5221b-4(d).) 270-4 Sec. 212.102. ACTION BY APPEAL TRIBUNAL. Unless the appeal 270-5 is withdrawn, an appeal tribunal shall affirm or modify the 270-6 determination of the examiner after giving the parties reasonable 270-7 opportunity for fair hearing. (V.A.C.S. Art. 5221b-4(c) (part).) 270-8 Sec. 212.103. NOTICE OF APPEAL TRIBUNAL ACTION. The parties 270-9 to an appeal shall be notified of the appeal tribunal's decision 270-10 and the reasons for the decision. (V.A.C.S. Art. 5221b-4(c) 270-11 (part).) 270-12 Sec. 212.104. DECISION CONSIDERED FINAL COMMISSION DECISION. 270-13 The decision of an appeal tribunal is the final decision of the 270-14 commission unless further appeal is initiated as provided by 270-15 Section 212.151 not later than the 14th day after the date the 270-16 decision is mailed. (V.A.C.S. Art. 5221b-4(c) (part).) 270-17 Sec. 212.105. REMOVAL OR TRANSFER OF CLAIM PENDING BEFORE 270-18 APPEAL TRIBUNAL. (a) The commission may remove to itself or 270-19 transfer to another appeal tribunal the proceedings on a claim 270-20 pending before an appeal tribunal. 270-21 (b) A quorum of the commission shall hear a proceeding 270-22 removed to the commission under Subsection (a). 270-23 (c) The commission promptly shall mail to the parties before 270-24 it a copy of its findings and decision. (V.A.C.S. Art. 5221b-4(e) 270-25 (part).) 270-26 (Sections 212.106-212.150 reserved for expansion) 270-27 SUBCHAPTER D. COMMISSION REVIEW 271-1 Sec. 212.151. REVIEW OF APPEAL TRIBUNAL DECISION. The 271-2 commission may: 271-3 (1) on its own motion: 271-4 (A) affirm, modify, or set aside any decision of 271-5 an appeal tribunal on the basis of the evidence previously 271-6 submitted in the case; or 271-7 (B) direct the taking of additional evidence; or 271-8 (2) permit any of the parties to the decision to 271-9 initiate a further appeal before the commission. (V.A.C.S. Art. 271-10 5221b-4(e) (part).) 271-11 Sec. 212.152. NOTICE OF COMMISSION ACTION. The commission 271-12 promptly shall mail to the parties before it a copy of its findings 271-13 and decision. (V.A.C.S. Art. 5221b-4(e) (part).) 271-14 Sec. 212.153. FINALITY OF COMMISSION DECISION. A decision 271-15 of the commission becomes final 14 days after the date the decision 271-16 is mailed unless before that date: 271-17 (1) the commission by order reopens the appeal; or 271-18 (2) a party to the appeal files a written motion for 271-19 rehearing. (V.A.C.S. Art. 5221b-4(h) (part).) 271-20 (Sections 212.154-212.200 reserved for expansion) 271-21 SUBCHAPTER E. JUDICIAL REVIEW OF COMMISSION DECISION 271-22 Sec. 212.201. COMMENCEMENT OF JUDICIAL REVIEW; DEFENDANTS. 271-23 (a) A party aggrieved by a final decision of the commission may 271-24 obtain judicial review of the decision by bringing an action in a 271-25 court of competent jurisdiction for review of the decision against 271-26 the commission on or after the date on which the decision is final, 271-27 and not later than the 14th day after that date. 272-1 (b) Each other party to the proceeding before the commission 272-2 must be made a defendant in an action under this subchapter. 272-3 (V.A.C.S. Art. 5221b-4(i) (part).) 272-4 Sec. 212.202. STANDARD OF JUDICIAL REVIEW; EXCEPTIONS NOT 272-5 NECESSARY. (a) Judicial review under this subchapter is by trial 272-6 de novo. 272-7 (b) It is not necessary in a judicial proceeding under this 272-8 subchapter to enter exceptions to the rulings of the commission. 272-9 (V.A.C.S. Art. 5221b-4(i) (part).) 272-10 Sec. 212.203. EXHAUSTION OF REMEDIES. (a) A party claiming 272-11 to be aggrieved by a final decision of the commission may not 272-12 obtain judicial review of the decision unless the party has 272-13 exhausted the party's remedies before the commission as provided by 272-14 this subtitle. 272-15 (b) The exhaustion of those remedies does not include a 272-16 motion for rehearing. (V.A.C.S. Art. 5221b-4(h) (part).) 272-17 Sec. 212.204. FILING OF ACTION. An action under this 272-18 subchapter must be filed: 272-19 (1) in the county of the claimant's residence; or 272-20 (2) if the claimant is not a resident of this state, 272-21 in: 272-22 (A) Travis County; 272-23 (B) the county in this state in which the 272-24 claimant's last employer has its principal place of business; or 272-25 (C) the county of the claimant's last residence 272-26 in this state. (V.A.C.S. Art. 5221b-4(i) (part).) 272-27 Sec. 212.205. PETITION; SUPERSEDEAS. (a) A petition in an 273-1 action under this subchapter must state the grounds on which review 273-2 is sought. 273-3 (b) A petition for judicial review does not act as a 273-4 supersedeas. (V.A.C.S. Art. 5221b-4(i) (part).) 273-5 Sec. 212.206. COMMISSION CONSIDERED PARTY TO JUDICIAL 273-6 REVIEW; NOTICE OF PETITION. (a) The commission is considered a 273-7 party to any judicial action involving a final decision of the 273-8 commission. 273-9 (b) A petition to bring an action under this subchapter must 273-10 be served on: 273-11 (1) a member of the commission; or 273-12 (2) a person designated by the commission. 273-13 (c) As many copies of the petition as there are defendants 273-14 must be left with the party served under Subsection (b). The 273-15 commission immediately shall mail one copy of the petition to each 273-16 defendant. 273-17 (d) Service in compliance with this section constitutes 273-18 completed service on all defendants. (V.A.C.S. Arts. 5221b-4(h) 273-19 (part), (i) (part).) 273-20 Sec. 212.207. REPRESENTATION OF COMMISSION. The commission 273-21 may be represented in any judicial action involving a final 273-22 decision of the commission by any qualified attorney who: 273-23 (1) is a regular salaried employee of the commission; 273-24 and 273-25 (2) has been appointed for that purpose by the 273-26 attorney general. (V.A.C.S. Art. 5221b-4(h) (part).) 273-27 Sec. 212.208. PRECEDENCE OVER OTHER CIVIL ACTIONS. An 274-1 action under this subchapter shall be given precedence over all 274-2 other civil cases except cases arising under the workers' 274-3 compensation laws of this state. (V.A.C.S. Art. 5221b-4(i) 274-4 (part).) 274-5 Sec. 212.209. ENTRY OF COMMISSION ORDER ON FINAL 274-6 DETERMINATION OF JUDICIAL PROCEEDING. The commission shall enter 274-7 an order in accordance with the final determination of an action 274-8 under this subchapter. (V.A.C.S. Art. 5221b-4(i) (part).) 274-9 Sec. 212.210. APPEAL BOND NOT REQUIRED. An appeal bond is 274-10 not required in an appeal from a decision of a trial court in an 274-11 action under this subchapter. (V.A.C.S. Art. 5221b-4(i) (part).) 274-12 CHAPTER 213. ENFORCEMENT OF TEXAS UNEMPLOYMENT COMPENSATION ACT 274-13 SUBCHAPTER A. GENERAL ENFORCEMENT PROVISIONS 274-14 Sec. 213.001. REPRESENTATION IN COURT 274-15 Sec. 213.002. PROSECUTION OF CRIMINAL ACTIONS 274-16 Sec. 213.003. ADMISSIBILITY OF CERTIFIED COPY OF COMMISSION 274-17 RECORD 274-18 Sec. 213.004. ADMISSIBILITY OF REPORT OR AUDIT; PRIMA FACIE 274-19 EVIDENCE 274-20 Sec. 213.005. COSTS ADJUDGED AGAINST STATE OR COMMISSION 274-21 Sec. 213.006. PRIORITY OF CLAIM FOR CONTRIBUTION 274-22 Sec. 213.007. COLLATERAL ESTOPPEL DOCTRINE INAPPLICABLE 274-23 Sec. 213.008. ELECTION OF COLLECTION REMEDIES 274-24 Sec. 213.009. COMMISSION ENFORCEMENT OF OUT-OF-STATE 274-25 JUDGMENT 274-26 (Sections 213.010-213.020 reserved for expansion) 274-27 SUBCHAPTER B. EMPLOYER PENALTIES AND INTEREST 275-1 Sec. 213.021. PENALTY FOR PAST DUE CONTRIBUTION 275-2 Sec. 213.022. PENALTY FOR FAILURE TO FILE REPORT 275-3 Sec. 213.023. PENALTY FOR OTHER VIOLATION 275-4 Sec. 213.024. PENALTY FOR CONTINUING VIOLATION 275-5 Sec. 213.025. INTEREST ON JUDGMENT FOR PAST DUE 275-6 CONTRIBUTION 275-7 (Sections 213.026-213.030 reserved for expansion) 275-8 SUBCHAPTER C. COLLECTION OF CONTRIBUTION BY CIVIL SUIT OR NOTICE 275-9 OF ASSESSMENT 275-10 Sec. 213.031. COLLECTION REQUIRED; METHODS 275-11 Sec. 213.032. SERVICE OF NOTICE OF ASSESSMENT; CONTENTS AS 275-12 PRIMA FACIE EVIDENCE; JUDICIAL REVIEW; 275-13 EFFECT 275-14 Sec. 213.033. LIMITATIONS 275-15 Sec. 213.034. STATEMENT AS EVIDENCE IN CIVIL 275-16 ACTION; DENIAL 275-17 Sec. 213.035. COSTS 275-18 Sec. 213.036. ABSTRACT OF JUDGMENT; FEE; RELEASE 275-19 (Sections 213.037-213.050 reserved for expansion) 275-20 SUBCHAPTER D. OTHER ENFORCEMENT REMEDIES AGAINST EMPLOYER 275-21 Sec. 213.051. FORFEITURE OF RIGHT TO EMPLOY INDIVIDUALS IN 275-22 THIS STATE; BOND 275-23 Sec. 213.052. INJUNCTION RESTRAINING CERTAIN VIOLATIONS 275-24 Sec. 213.053. VIOLATION OF INJUNCTION; RECEIVER 275-25 Sec. 213.054. OFFSET AGAINST STATE WARRANT 275-26 Sec. 213.055. AUDIT OF EMPLOYER 275-27 Sec. 213.056. ESTIMATED TAXABLE WAGES IF REPORT NOT FILED 276-1 Sec. 213.057. TAX LIEN 276-2 Sec. 213.058. ADDITIONAL TAX LIEN ENFORCED BY COMMISSION 276-3 (Sections 213.059-213.070 reserved for expansion) 276-4 SUBCHAPTER E. ADJUSTMENT OR REFUND FOR EMPLOYER'S OVERPAYMENT 276-5 Sec. 213.071. CREDIT OR REFUND OF OVERPAYMENT 276-6 Sec. 213.072. APPLICATION 276-7 Sec. 213.073. APPEAL OF COMMISSION DETERMINATION 276-8 Sec. 213.074. INTEREST NOT ALLOWED 276-9 Sec. 213.075. ADJUSTMENT OR REFUND ON COMMISSION INITIATIVE 276-10 CHAPTER 213. ENFORCEMENT OF TEXAS UNEMPLOYMENT COMPENSATION ACT 276-11 SUBCHAPTER A. GENERAL ENFORCEMENT PROVISIONS 276-12 Sec. 213.001. REPRESENTATION IN COURT. (a) The attorney 276-13 general shall designate an assistant attorney general to represent 276-14 the commission and the state in a civil action to enforce this 276-15 subtitle and to perform legal duties as the commission requires. 276-16 (b) The assistant attorney general shall institute in the 276-17 name of the state and the attorney general any civil action 276-18 requested by the commission. 276-19 (c) The commission shall pay the assistant attorney general 276-20 for a service performed by the assistant attorney general solely 276-21 for the commission. 276-22 (d) A qualified attorney who is regularly employed by the 276-23 commission may assist the assistant attorney general. (V.A.C.S. 276-24 Art. 5221b-15(a).) 276-25 Sec. 213.002. PROSECUTION OF CRIMINAL ACTIONS. The 276-26 prosecuting attorney for a county in which a criminal violation of 276-27 this subtitle or a rule adopted under this subtitle is alleged to 277-1 have occurred shall prosecute the criminal action. (V.A.C.S. Art. 277-2 5221b-15(b).) 277-3 Sec. 213.003. ADMISSIBILITY OF CERTIFIED COPY OF COMMISSION 277-4 RECORD. In a civil or criminal proceeding brought under this 277-5 subtitle, a certified copy of a document from commission records is 277-6 admissible in evidence instead of the original document. (V.A.C.S. 277-7 Art. 5221b-15(c).) 277-8 Sec. 213.004. ADMISSIBILITY OF REPORT OR AUDIT; PRIMA FACIE 277-9 EVIDENCE. (a) In a judicial proceeding in which the establishment 277-10 or collection of a contribution, penalty, or interest is sought 277-11 because an employer does not pay a contribution, a penalty, or 277-12 interest within the time and in the manner required by this 277-13 subtitle or by a rule adopted under this subtitle, the following 277-14 are admissible: 277-15 (1) a report filed in an office of the commission by 277-16 the employer or the employer's representative that shows the amount 277-17 of wages paid by the employer or the employer's representative for 277-18 which a contribution, a penalty, or interest has not been paid; 277-19 (2) a copy of a report described in Subdivision (1) 277-20 that is certified by a member of the commission or by an employee 277-21 designated for that purpose by the commission; and 277-22 (3) an audit made by the commission or its 277-23 representative from the books of the employer that is signed and 277-24 sworn to by the representative as being made from the records of 277-25 the employer. 277-26 (b) A report or audit admissible under this section is prima 277-27 facie evidence of the truth of its contents. The incorrectness of 278-1 the report or audit may be shown. (V.A.C.S. Art. 5221b-12(d).) 278-2 Sec. 213.005. COSTS ADJUDGED AGAINST STATE OR COMMISSION. 278-3 The commission shall pay from the administration fund established 278-4 under Subchapter D, Chapter 203, costs adjudged against the state 278-5 or the commission in a suit instituted on behalf or at the request 278-6 of the commission under this chapter or Section 204.086. (V.A.C.S. 278-7 Art. 5221b-12(h) (part).) 278-8 Sec. 213.006. PRIORITY OF CLAIM FOR CONTRIBUTION. If an 278-9 employer's assets are distributed under a court order issued under 278-10 the laws of this state, including a receivership, assignment for 278-11 benefit of creditors, adjudicated insolvency, composition, or 278-12 similar proceeding, a contribution due at the time of distribution 278-13 or that becomes due after the distribution has the same priority as 278-14 other tax claims under the laws of this state. (V.A.C.S. 278-15 Art. 5221b-12(i).) 278-16 Sec. 213.007. COLLATERAL ESTOPPEL DOCTRINE INAPPLICABLE. A 278-17 finding of fact, conclusion of law, judgment, or final order made 278-18 regarding a claim for benefits under this subtitle is not binding 278-19 and may not be used as evidence in an action or proceeding, other 278-20 than an action or proceeding brought under this subtitle, even if 278-21 the action or proceeding is between the same or related parties or 278-22 involves the same facts. (V.A.C.S. Art. 5221b-9(r).) 278-23 Sec. 213.008. ELECTION OF COLLECTION REMEDIES. An action 278-24 taken under this chapter is not an election by the commission to 278-25 pursue a particular remedy or action under this chapter to the 278-26 exclusion of another remedy or action under this subtitle or under 278-27 another law of this state. (V.A.C.S. Art. 5221b-12(c)(4) (part).) 279-1 Sec. 213.009. COMMISSION ENFORCEMENT OF OUT-OF-STATE 279-2 JUDGMENT. (a) A qualified attorney who is a regular salaried 279-3 employee of the commission may represent an employment security 279-4 agency of another state in a proceeding in a court in this state to 279-5 collect a contribution, a penalty, interest, or a court cost for 279-6 which liability has been incurred by an employing unit under an 279-7 unemployment compensation law or unemployment insurance law of the 279-8 other state, if: 279-9 (1) the liability has been reduced to judgment in a 279-10 court of record in the state of the requesting agency; and 279-11 (2) the unemployment compensation law or unemployment 279-12 insurance law of the requesting state provides for a similar action 279-13 on behalf of the commission by the requesting state agency. 279-14 (b) The venue for a proceeding under this section is the 279-15 same as the venue for an action to collect an overdue contribution, 279-16 penalty, or interest due under this subtitle. (V.A.C.S. 279-17 Art. 5221b-12(m).) 279-18 (Sections 213.010-213.020 reserved for expansion) 279-19 SUBCHAPTER B. EMPLOYER PENALTIES AND INTEREST 279-20 Sec. 213.021. PENALTY FOR PAST DUE CONTRIBUTION. (a) An 279-21 employer who does not pay a contribution on or before the date 279-22 prescribed by the commission shall pay to the state a penalty equal 279-23 to one and one-half percent of the contribution for each month or 279-24 portion of a month that the contribution and penalty are not paid 279-25 in full. The total penalty applied may not exceed 37-1/2 percent 279-26 of the amount of contribution due at the due date. 279-27 (b) The penalty does not apply to an employer who: 280-1 (1) failed to pay a contribution because of the bona 280-2 fide belief that all or some of its employees were covered under 280-3 the unemployment insurance law of another state; and 280-4 (2) paid when due a contribution on all the wages of 280-5 those employees under that law. (V.A.C.S. Art. 5221b-12(a) 280-6 (part).) 280-7 Sec. 213.022. PENALTY FOR FAILURE TO FILE REPORT. An 280-8 employer who does not file a report of wages paid or contributions 280-9 due as required by this subtitle or commission rule shall pay to 280-10 the commission a penalty in the amount equal to: 280-11 (1) $15, if the completed report is filed not later 280-12 than the 15th day after the report's due date; 280-13 (2) $30 plus one-twentieth of one percent of wages 280-14 that the employer failed to report, if the completed report is 280-15 filed after the 15th day after the report's due date but during the 280-16 first month after the report's due date; 280-17 (3) the sum of the amount computed under Subdivision 280-18 (2) and the amount equal to $30 plus one-tenth of one percent of 280-19 wages that the employer failed to report, if the completed report 280-20 is filed during the second month after the report's due date; or 280-21 (4) the sum of the amount computed under Subdivision 280-22 (3) and the amount equal to $30 plus one-fifth of one percent of 280-23 wages that the employer failed to report, if the completed report 280-24 is filed during the third month after the report's due date. 280-25 (V.A.C.S. Art. 5221b-12(c)(1) (part).) 280-26 Sec. 213.023. PENALTY FOR OTHER VIOLATION. An employing 280-27 unit shall pay a penalty of $30 if a civil penalty is not otherwise 281-1 provided by this subtitle and the employing unit: 281-2 (1) does not keep records required under this subtitle 281-3 or commission rule; 281-4 (2) makes a false report to the commission; or 281-5 (3) violates this subtitle or a commission rule 281-6 adopted under this subtitle. (V.A.C.S. Art. 5221b-12(c)(2) 281-7 (part).) 281-8 Sec. 213.024. PENALTY FOR CONTINUING VIOLATION. (a) In 281-9 addition to the penalty imposed under Section 213.023, an employing 281-10 unit shall pay a penalty of $30 for each consecutive day that a 281-11 violation of this subtitle or of a rule adopted under this subtitle 281-12 continues after notice is given as provided by Subsection (b). 281-13 (b) The penalty is imposed and becomes cumulative on the 281-14 10th day after the date written notice is given or mailed to the 281-15 employing unit by the commission or its authorized representative. 281-16 (V.A.C.S. Art. 5221b-12(c)(2) (part).) 281-17 Sec. 213.025. INTEREST ON JUDGMENT FOR PAST DUE 281-18 CONTRIBUTION. For a judgment that grants recovery of the amount of 281-19 a contribution and the amount of a penalty computed at the maximum 281-20 rate permitted under Section 213.021(a), the part of the judgment 281-21 for the amount of the contribution earns interest at the rate of 281-22 one percent for each month or part of a month it remains unpaid. 281-23 (V.A.C.S. Art. 5221b-12(a) (part).) 281-24 (Sections 213.026-213.030 reserved for expansion) 281-25 SUBCHAPTER C. COLLECTION OF CONTRIBUTION BY CIVIL SUIT 281-26 OR NOTICE OF ASSESSMENT 281-27 Sec. 213.031. COLLECTION REQUIRED; METHODS. If after notice 282-1 an employer does not pay a contribution or a penalty or interest on 282-2 a contribution, the commission shall collect the amount due by: 282-3 (1) bringing a civil action in the name of the state 282-4 and the attorney general in a district court in Travis County; or 282-5 (2) serving a notice of assessment on the defaulting 282-6 employer, stating the amount of the contribution, penalty, and 282-7 interest outstanding. (V.A.C.S. Art. 5221b-12(b) (part).) 282-8 Sec. 213.032. SERVICE OF NOTICE OF ASSESSMENT; CONTENTS AS 282-9 PRIMA FACIE EVIDENCE; JUDICIAL REVIEW; EFFECT. (a) A notice of 282-10 assessment shall be served in the manner provided by law for 282-11 service of process on a defendant in a civil action in district 282-12 court. 282-13 (b) A notice of assessment is prima facie evidence of the 282-14 truth of contents of the notice. The incorrectness of the notice 282-15 may be shown. 282-16 (c) An employer aggrieved by the determination of the 282-17 commission as stated in a notice of assessment may file a petition 282-18 for judicial review of the assessment with a Travis County district 282-19 court not later than the 30th day after the date on which the 282-20 notice of assessment is served. A copy of the petition must be 282-21 served on a member of the commission or on a person designated by 282-22 the commission in the manner provided by law for service of process 282-23 on a defendant in a civil action in a district court. 282-24 (d) If an employer does not seek judicial review under 282-25 Subsection (c), a commission assessment is final for all purposes. 282-26 (e) An assessment that is not contested by the employer or 282-27 that is upheld after judicial review has the effect of a final 283-1 judgment of a district court and shall be recorded, enforced, and 283-2 renewed in the same manner. (V.A.C.S. Art. 5221b-12(b) (part).) 283-3 Sec. 213.033. LIMITATIONS. (a) The commission may not 283-4 begin a civil action in court or make an assessment under this 283-5 subchapter to collect a contribution or penalty from an employer 283-6 after the third anniversary after the due date of the contribution. 283-7 (b) In the case of a wilful attempt to evade the provisions 283-8 of this subtitle or a commission rule adopted under this subtitle, 283-9 the action or assessment may be begun or made at any time. 283-10 (V.A.C.S. Art. 5221b-12(b) (part).) 283-11 Sec. 213.034. STATEMENT AS EVIDENCE IN CIVIL ACTION; DENIAL. 283-12 (a) If a civil action filed under this subchapter is supported by 283-13 a statement, report, or audit issued by the commission and the 283-14 commission certifies that the contribution, penalty, and interest 283-15 shown to be due by the statement, report, or audit are delinquent 283-16 and that all offsets, payments, and credits have been allowed, the 283-17 statement, report, or audit is prima facie evidence of the truth of 283-18 its contents unless before an announcement of ready for trial the 283-19 defendant files an affidavit that: 283-20 (1) denies that all or part of the contribution, 283-21 penalty, or interest is due; and 283-22 (2) states the details relating to any part of the 283-23 contribution, penalty, or interest claimed not due. 283-24 (b) If the defendant files an affidavit described by 283-25 Subsection (a) on the day of the trial, the court at the request of 283-26 the plaintiff shall postpone the cause for a reasonable time. 283-27 (c) A defendant who does not file an affidavit in accordance 284-1 with this section may not deny the claim for the contribution, 284-2 penalty, or interest or an item of the claim. (V.A.C.S. Art. 284-3 5221b-12(e).) 284-4 Sec. 213.035. COSTS. Unless the employer prevails in a 284-5 civil action brought under this subchapter or the notice of 284-6 assessment is reversed by a reviewing court, the employer shall pay 284-7 all costs of either action. (V.A.C.S. Art. 5221b-12(b) (part).) 284-8 Sec. 213.036. ABSTRACT OF JUDGMENT; FEE; RELEASE. (a) The 284-9 commission shall pay the fee for filing and recording an abstract 284-10 of a judgment against an employer for a contribution, a penalty, or 284-11 interest by warrant drawn by the comptroller to the county clerk of 284-12 each county in which the abstract is recorded. 284-13 (b) When the liability secured by the lien is paid, the 284-14 commission shall mail a release of the lien to the employer. The 284-15 employer is responsible for filing the release with the appropriate 284-16 county clerk and for paying the county clerk's fee for recording 284-17 the release. (V.A.C.S. Art. 5221b-12(n).) 284-18 (Sections 213.037-213.050 reserved for expansion) 284-19 SUBCHAPTER D. OTHER ENFORCEMENT REMEDIES AGAINST EMPLOYER 284-20 Sec. 213.051. FORFEITURE OF RIGHT TO EMPLOY INDIVIDUALS IN 284-21 THIS STATE; BOND. (a) After a judgment is entered against an 284-22 employer for a contribution, a penalty, or interest or an 284-23 assessment against an employer under this chapter is final and 284-24 execution returned unsatisfied, an employer liable for the unpaid 284-25 judgment may not employ an individual in this state until the 284-26 employer furnishes a surety bond. 284-27 (b) The amount of the bond may not exceed twice the amount 285-1 due at the time the bond is furnished plus contributions estimated 285-2 by the commission to become due from the employer during the 285-3 succeeding calendar year. The bond must be conditioned on payment 285-4 of the contribution, penalty, interest, and court costs due from 285-5 the employer not later than January 30 of the succeeding calendar 285-6 year. The bond must be approved by the commission. 285-7 (c) If the employer does not furnish the bond or pay the 285-8 contribution, penalty, and interest due, the commission may apply 285-9 to the court that entered the judgment for an injunction to 285-10 prohibit the employer from employing a person in this state without 285-11 first furnishing a bond as required by this section. After 285-12 reasonable notice of not less than 10 days by the court, the court 285-13 may grant a temporary injunction. The temporary injunction may be 285-14 made permanent on final hearing and remains in effect until the 285-15 requirements of this chapter are satisfied. (V.A.C.S. Art. 285-16 5221b-12(b) (part).) 285-17 Sec. 213.052. INJUNCTION RESTRAINING CERTAIN VIOLATIONS. 285-18 (a) If an individual or employing unit appears to be violating or 285-19 threatening to violate this subtitle or any rule or order of the 285-20 commission adopted under this subtitle relating to the collection 285-21 of a contribution, a penalty, or interest or to the filing of a 285-22 report relating to employment, the commission shall bring suit 285-23 against the individual or employing unit to restrain the violation. 285-24 The court may grant a temporary or permanent, prohibitory or 285-25 mandatory injunction, including a temporary restraining order, as 285-26 warranted by the facts. 285-27 (b) A suit under this section must be brought through the 286-1 attorney general in the name of the state in a court of competent 286-2 jurisdiction in Travis County. (V.A.C.S. Art. 5221b-12(k) (part).) 286-3 Sec. 213.053. VIOLATION OF INJUNCTION; RECEIVER. (a) If an 286-4 individual or an employing unit violates an injunction granted 286-5 under this subtitle, the court on its own motion or the 286-6 commission's motion in the name of the state, after notice and 286-7 hearing, may appoint a receiver. The receiver may exercise the 286-8 powers that, in the judgment of the court, are necessary to provide 286-9 compliance with the injunction, including taking charge of the 286-10 property of the individual or employing unit. 286-11 (b) The power to appoint a receiver under this section is in 286-12 addition to the power to punish for contempt. (V.A.C.S. Art. 286-13 5221b-12(k) (part).) 286-14 Sec. 213.054. OFFSET AGAINST STATE WARRANT. Any 286-15 contribution, penalty, interest, or court cost owed by an employer 286-16 under a final court judgment under this subtitle is a debt owed by 286-17 the employer to the state under Section 403.055, Government Code, 286-18 only for withholding of a warrant for: 286-19 (1) the refund of taxes, fees, assessments, or other 286-20 deposits required under the law of this state; or 286-21 (2) compensation for goods and services, other than a 286-22 warrant for: 286-23 (A) payment for services performed as an elected 286-24 or appointed employee of this state; or 286-25 (B) reimbursement of expenses incurred in the 286-26 performance of employment as an elected or appointed employee of 286-27 this state. (V.A.C.S. Art. 5221b-12(l).) 287-1 Sec. 213.055. AUDIT OF EMPLOYER. (a) The commission may 287-2 employ an auditor or other person to determine the amount of a 287-3 contribution due and prepare a report due from an employer who does 287-4 not properly pay a contribution or make a report as required by 287-5 this subtitle or a rule adopted under this subtitle. 287-6 (b) An employer who has not paid the correct amount or made 287-7 a correct report shall pay, as an additional penalty, the 287-8 reasonable expenses incurred in the investigation under Subsection 287-9 (a). The commission may collect this penalty in accordance with 287-10 this chapter. 287-11 (c) This section does not prevent the commission from using 287-12 other available funds as necessary for the purpose of auditing an 287-13 employer or preparing or assisting in preparing a report of an 287-14 employer. (V.A.C.S. Art. 5221b-12(g).) 287-15 Sec. 213.056. ESTIMATED TAXABLE WAGES IF REPORT NOT FILED. 287-16 (a) If an employer does not make a report to the commission that 287-17 is required by this subtitle or by commission rule, the commission 287-18 may estimate the taxable wages paid by the employer during the 287-19 period to have been covered by the report. In making this 287-20 estimate, the commission may use any available source of 287-21 information. 287-22 (b) The commission may collect contributions and penalties 287-23 using an estimate made under this section as if the estimated wages 287-24 had been properly reported by the employer. (V.A.C.S. Art. 287-25 5221b-12(c)(3).) 287-26 Sec. 213.057. TAX LIEN. (a) The amount due from an 287-27 employing unit under this subtitle is secured by a lien on property 288-1 belonging to the employing unit or to any individual indebted for 288-2 the sum. 288-3 (b) The lien attaches at the time the contribution, penalty, 288-4 interest, or other charge becomes overdue. 288-5 (c) The lien may be recorded in a "State Tax Liens" book 288-6 kept by a county clerk under Section 113.004, Tax Code. 288-7 (d) The lien may be released in the manner provided for 288-8 other state tax liens under Chapter 113, Tax Code. 288-9 (e) The commission shall pay by warrant drawn by the 288-10 comptroller to the county clerk of the county in which the notice 288-11 of lien is filed the fee for filing and recording similar 288-12 instruments. The fee shall be added to the amount due from the 288-13 employer. 288-14 (f) When the liability secured by the lien is fully paid, 288-15 the commission shall mail to the employer a release of the lien. 288-16 The employer is responsible for filing the release with the 288-17 appropriate county clerk and to pay the county clerk's fee for 288-18 recording the release. (V.A.C.S. Art. 5221b-12(f).) 288-19 Sec. 213.058. ADDITIONAL TAX LIEN ENFORCED BY COMMISSION. 288-20 (a) The amount due from an employing unit to the commission under 288-21 this subtitle is secured by a lien on property belonging to the 288-22 employing unit or to any individual indebted for the sum. 288-23 (b) The lien attaches at the time a contribution, a penalty, 288-24 interest, or another charge becomes overdue. 288-25 (c) Subchapters A and B, Chapter 113, Tax Code, govern the 288-26 enforcement of a lien under this section. In administering and 288-27 enforcing a lien created under this section, the commission has the 289-1 powers and duties imposed and conferred on the comptroller for the 289-2 enforcement of other liens under those subchapters. 289-3 (d) A lien under this section is cumulative of the lien 289-4 created under Section 213.057. (V.A.C.S. Art. 5221b-12A.) 289-5 (Sections 213.059-213.070 reserved for expansion) 289-6 SUBCHAPTER E. ADJUSTMENT OR REFUND FOR EMPLOYER'S OVERPAYMENT 289-7 Sec. 213.071. CREDIT OR REFUND OF OVERPAYMENT. (a) The 289-8 commission shall allow the employing unit on application under 289-9 Section 213.072 to adjust its contribution payments then due for a 289-10 contribution or penalty erroneously collected from the employer. 289-11 (b) If an adjustment cannot be made under Subsection (a), 289-12 the commission shall refund the amount erroneously collected. 289-13 (c) The commission may not approve an application for 289-14 adjustment or refund if making the adjustment or refund would 289-15 require removing or disregarding benefit wages that became benefit 289-16 wage credits or that were charged as benefit wages more than three 289-17 years before the date on which the application was filed. For the 289-18 purpose of this subsection, removing or disregarding benefit wages 289-19 does not include transferring compensation experience described in 289-20 Subchapter E, Chapter 204. (V.A.C.S. Art. 5221b-12(j)(1) (part).) 289-21 Sec. 213.072. APPLICATION. (a) An employing unit that pays 289-22 the commission a contribution or penalty that is allegedly due and 289-23 that later is determined not due, in whole or in part, may apply to 289-24 the commission for: 289-25 (1) an adjustment for a contribution payment then due; 289-26 or 289-27 (2) a refund of the overpaid amount if an adjustment 290-1 cannot be made. 290-2 (b) An application for adjustment or refund must be filed 290-3 before the third anniversary of the date on which the contribution 290-4 or penalty was allegedly due. (V.A.C.S. Art. 5221b-12(j)(1) 290-5 (part).) 290-6 Sec. 213.073. APPEAL OF COMMISSION DETERMINATION. (a) If 290-7 the commission denies a timely application made under this 290-8 subchapter, the employing unit may bring an action in a court of 290-9 competent jurisdiction in Travis County against the commission for 290-10 review of the commission's refusal to allow an adjustment or a 290-11 refund. 290-12 (b) An action under this section must be filed before the 290-13 first anniversary of the date on which notice of the denial was 290-14 mailed to the employing unit. 290-15 (c) Trial of an action filed under this section is by trial 290-16 de novo. 290-17 (d) The employing unit may not bring an action for the 290-18 refund under any other law. (V.A.C.S. Art. 5221b-12(j)(2) (part).) 290-19 Sec. 213.074. INTEREST NOT ALLOWED. Interest is not allowed 290-20 on an adjustment or refund made under this subchapter or a recovery 290-21 made in a court action filed under this subchapter. (V.A.C.S. 290-22 Arts. 5221b-12(j)(1) (part), (2) (part).) 290-23 Sec. 213.075. ADJUSTMENT OR REFUND ON COMMISSION INITIATIVE. 290-24 The commission may make an adjustment or refund on its own 290-25 initiative under this subchapter within the period prescribed by 290-26 this subchapter. (V.A.C.S. Art. 5221b-12(j)(1) (part).) 290-27 CHAPTER 214. OFFENSES, PENALTIES, AND SANCTIONS 291-1 Sec. 214.001. FRAUDULENTLY OBTAINING BENEFITS 291-2 OR OTHER PAYMENT 291-3 Sec. 214.002. LIABILITY FOR IMPROPERLY OBTAINING 291-4 BENEFITS 291-5 Sec. 214.003. FORFEITURE OR CANCELLATION OF BENEFITS PAID 291-6 AND REMAINING BENEFITS 291-7 Sec. 214.004. FRAUDULENTLY AVOIDING CONTRIBUTION OR PAYMENT 291-8 OF BENEFITS 291-9 Sec. 214.005. FAILURE OR REFUSAL TO MAKE CONTRIBUTION OR 291-10 OTHER PAYMENT 291-11 Sec. 214.006. OFFENSES REGARDING REPORTS AND RECORDS 291-12 Sec. 214.007. GENERAL OFFENSE 291-13 CHAPTER 214. OFFENSES, PENALTIES, AND SANCTIONS 291-14 Sec. 214.001. FRAUDULENTLY OBTAINING BENEFITS OR OTHER 291-15 PAYMENT. (a) A person commits an offense if, to obtain or 291-16 increase a benefit or other payment, either for the person or 291-17 another person, under this subtitle, the unemployment compensation 291-18 law of another state, or any act or program of the United States 291-19 that is administered by the commission, the person: 291-20 (1) makes a false statement or representation, knowing 291-21 it to be false; or 291-22 (2) knowingly fails to disclose a material fact. 291-23 (b) An offense under this section is a Class A misdemeanor. 291-24 (V.A.C.S. Art. 5221b-14(a).) 291-25 Sec. 214.002. LIABILITY FOR IMPROPERLY OBTAINING BENEFITS. 291-26 (a) A person who has received improper benefits is liable for the 291-27 amount of the improper benefits. The commission may recover 292-1 improper benefits by: 292-2 (1) deducting the amount of the improper benefits from 292-3 any future benefits payable to the person; or 292-4 (2) collecting the amount of the improper benefits for 292-5 the compensation fund in the same manner provided by Sections 292-6 213.031, 213.032, 213.033, 213.035, and 213.051 for the collection 292-7 of past due contributions. 292-8 (b) In this section, "improper benefit" means the benefit 292-9 obtained by a person: 292-10 (1) because of the nondisclosure or misrepresentation 292-11 by the person or by another of a material fact, without regard to 292-12 whether the nondisclosure or misrepresentation was known or 292-13 fraudulent; and 292-14 (2) while: 292-15 (A) any condition imposed by this subtitle for 292-16 the person's qualifying for the benefit was not fulfilled in the 292-17 person's case; or 292-18 (B) the person was disqualified from receiving 292-19 benefits. (V.A.C.S. Art. 5221b-14(d).) 292-20 Sec. 214.003. FORFEITURE OR CANCELLATION OF BENEFITS PAID 292-21 AND REMAINING BENEFITS. (a) If, by wilful nondisclosure or 292-22 misrepresentation of a material fact, whether the nondisclosure or 292-23 misrepresentation is made by the person or for the person by 292-24 another, a person receives a benefit when a condition imposed by 292-25 this subtitle for the person's qualifying for the benefit is not 292-26 fulfilled or the person is disqualified from receiving the benefit, 292-27 the person forfeits the: 293-1 (1) benefit received; and 293-2 (2) rights to benefits that remain in the benefit year 293-3 in which the nondisclosure or misrepresentation occurred. 293-4 (b) If a person attempts to obtain or increase benefits by a 293-5 nondisclosure or misrepresentation as provided by Subsection (a), 293-6 the commission may cancel the person's right to benefits that 293-7 remain in the benefit year in which the nondisclosure or 293-8 misrepresentation occurred. 293-9 (c) A forfeiture or cancellation under this section is 293-10 effective only after the person has been afforded an opportunity 293-11 for a fair hearing before the commission or its duly designated 293-12 representative. (V.A.C.S. Art. 5221b-14(e).) 293-13 Sec. 214.004. FRAUDULENTLY AVOIDING CONTRIBUTION OR PAYMENT 293-14 OF BENEFITS. (a) A person commits an offense if the person makes 293-15 a false representation, knowing it to be false, or knowingly fails 293-16 to disclose a material fact, to: 293-17 (1) prevent or reduce the payment of benefits to an 293-18 individual entitled to the benefits; 293-19 (2) avoid becoming or remaining subject to this 293-20 subtitle; or 293-21 (3) avoid or reduce any contribution or other payment 293-22 required from an employing unit under this subtitle. 293-23 (b) An offense under this section is a Class A misdemeanor. 293-24 (V.A.C.S. Art. 5221b-14(b) (part).) 293-25 Sec. 214.005. FAILURE OR REFUSAL TO MAKE CONTRIBUTION OR 293-26 OTHER PAYMENT. (a) A person commits an offense if the person 293-27 wilfully fails or refuses to make a contribution or other payment 294-1 required from an employing unit under this subtitle. 294-2 (b) An offense under this section is a Class A misdemeanor. 294-3 (V.A.C.S. Art. 5221b-14(b) (part).) 294-4 Sec. 214.006. OFFENSES REGARDING REPORTS AND RECORDS. (a) 294-5 A person commits an offense if the person wilfully fails or refuses 294-6 to: 294-7 (1) furnish a report required under this subtitle; or 294-8 (2) produce or permit the inspection or copying of 294-9 records as required under this subtitle. 294-10 (b) An offense under this section is a Class A misdemeanor. 294-11 (V.A.C.S. Art. 5221b-14(b) (part).) 294-12 Sec. 214.007. GENERAL OFFENSE. (a) A person commits an 294-13 offense if the person wilfully violates a provision of this 294-14 subtitle or a rule adopted under this subtitle: 294-15 (1) the violation of which is made unlawful or the 294-16 observance of which is required under this subtitle; and 294-17 (2) for which a penalty is not otherwise provided by 294-18 this subtitle or any other applicable statute. 294-19 (b) An offense under this section is a Class A misdemeanor. 294-20 (V.A.C.S. Art. 5221b-14(c).) 294-21 CHAPTER 215. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM 294-22 SUBCHAPTER A. GENERAL PROVISIONS 294-23 Sec. 215.001. DEFINITIONS 294-24 Sec. 215.002. SHARED WORK UNEMPLOYMENT COMPENSATION 294-25 PROGRAM 294-26 (Sections 215.003-215.020 reserved for expansion) 294-27 SUBCHAPTER B. SHARED WORK PLAN 295-1 Sec. 215.021. APPROVAL REQUIRED FOR EMPLOYER PLAN 295-2 Sec. 215.022. REQUIREMENTS OF SHARED WORK PLAN 295-3 Sec. 215.023. APPROVAL OR DENIAL OF SHARED WORK PLAN; 295-4 NOTICE 295-5 Sec. 215.024. EFFECTIVE DATE OF SHARED WORK PLAN; 295-6 EXPIRATION OR TERMINATION 295-7 Sec. 215.025. MODIFICATION OF SHARED WORK PLAN 295-8 Sec. 215.026. PARTICIPATING EMPLOYER'S REPORT ON PLAN 295-9 OPERATION 295-10 (Sections 215.027-215.040 reserved for expansion) 295-11 SUBCHAPTER C. SHARED WORK BENEFITS 295-12 Sec. 215.041. EMPLOYEE'S ELIGIBILITY FOR SHARED 295-13 WORK BENEFITS 295-14 Sec. 215.042. SHARED WORK BENEFITS FORMULA 295-15 Sec. 215.043. LIMITATIONS ON BENEFITS 295-16 Sec. 215.044. EXTENDED BENEFITS 295-17 CHAPTER 215. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM 295-18 SUBCHAPTER A. GENERAL PROVISIONS 295-19 Sec. 215.001. DEFINITIONS. In this chapter: 295-20 (1) "Affected unit" means a unit of two or more 295-21 employees, including a department or shift, designated by an 295-22 employer to participate in a shared work plan. 295-23 (2) "Fringe benefit" means health insurance, a 295-24 retirement benefit received under a pension plan, a paid vacation 295-25 day, a paid holiday, sick leave, or any other similar employee 295-26 benefit provided by an employer. 295-27 (3) "Normal weekly hours of work" means the number of 296-1 hours in a week that an employee ordinarily works for a 296-2 participating employer or 40 hours, whichever is less. 296-3 (4) "Participating employee" means an employee who 296-4 works a reduced number of hours under an approved shared work plan. 296-5 (5) "Participating employer" means an employer who has 296-6 a shared work plan in effect. 296-7 (6) "Shared work benefit" means an unemployment 296-8 compensation benefit that is payable to a participating employee. 296-9 (7) "Shared work plan" means a plan for reducing 296-10 unemployment under which employees who are members of an affected 296-11 unit share the work remaining after a reduction in their normal 296-12 weekly hours of work. 296-13 (8) "Shared work program" means the shared work 296-14 unemployment compensation program. (New; V.A.C.S. Arts. 296-15 5221b-22f(a)(1)-(8).) 296-16 Sec. 215.002. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM. 296-17 (a) The commission, under a voluntary shared work unemployment 296-18 compensation program designed to reduce unemployment and stabilize 296-19 the work force, shall allow participating employees shared work 296-20 benefits. 296-21 (b) The commission may adopt rules and establish procedures 296-22 necessary to administer the shared work program. (V.A.C.S. Arts. 296-23 5221b-22f(a)(9), (b).) 296-24 (Sections 215.003-215.020 reserved for expansion) 296-25 SUBCHAPTER B. SHARED WORK PLAN 296-26 Sec. 215.021. APPROVAL REQUIRED FOR EMPLOYER PLAN. (a) 296-27 Before an employer may participate in the shared work program, the 297-1 commission must approve the employer's shared work plan. The plan 297-2 must be submitted in writing to the commission. 297-3 (b) If an employee who participates in a shared work plan is 297-4 covered by a collective bargaining agreement, the collective 297-5 bargaining agent must approve the plan in writing. (V.A.C.S. Arts. 297-6 5221b-22f(c) (part), (e).) 297-7 Sec. 215.022. REQUIREMENTS OF SHARED WORK PLAN. (a) The 297-8 commission may approve a shared work plan if: 297-9 (1) the plan: 297-10 (A) applies to and identifies a specific 297-11 affected unit; 297-12 (B) identifies the employees in the affected 297-13 unit by name and social security number; 297-14 (C) reduces the normal weekly hours of work for 297-15 an employee in the affected unit by at least 10 percent but not 297-16 more than 40 percent; 297-17 (D) applies to at least 10 percent of the 297-18 employees in the affected unit; and 297-19 (E) describes the manner in which the 297-20 participating employer treats the fringe benefits of each employee 297-21 in the affected unit; 297-22 (2) the employer certifies that the implementation of 297-23 a shared work plan and the resulting reduction in work hours is in 297-24 lieu of temporary layoffs that would: 297-25 (A) affect at least 10 percent of the employees 297-26 in the affected unit; and 297-27 (B) result in an equivalent reduction in work 298-1 hours; and 298-2 (3) the employer agrees to furnish the commission 298-3 reports relating to the operation of the plan as requested by the 298-4 commission. 298-5 (b) A shared work plan may not be implemented to subsidize a 298-6 seasonal employer during the off-season or to subsidize an employer 298-7 who traditionally has used part-time employees. (V.A.C.S. Arts. 298-8 5221b-22f(c) (part), (d), (f).) 298-9 Sec. 215.023. APPROVAL OR DENIAL OF SHARED WORK PLAN; 298-10 NOTICE. (a) The commission shall approve or deny a shared work 298-11 plan in writing not later than the 30th day after the date the 298-12 commission receives the plan. 298-13 (b) If the commission denies the plan, the commission shall 298-14 give the employer the reasons for denial. (V.A.C.S. Art. 298-15 5221b-22f(g).) 298-16 Sec. 215.024. EFFECTIVE DATE OF SHARED WORK PLAN; EXPIRATION 298-17 OR TERMINATION. (a) A shared work plan takes effect on the date 298-18 the commission approves the plan. 298-19 (b) A shared work plan expires on the last day of the 12th 298-20 calendar month beginning after the effective date of the plan. 298-21 (c) The commission may terminate a shared work plan for good 298-22 cause if the plan is not being executed according to the terms and 298-23 intent of the shared work program. (V.A.C.S. Arts. 5221b-22f(h), 298-24 (p).) 298-25 Sec. 215.025. MODIFICATION OF SHARED WORK PLAN. (a) An 298-26 employer may modify a shared work plan to meet changed conditions 298-27 if the modification conforms to the basic provisions of the plan as 299-1 approved by the commission. 299-2 (b) Before implementing a proposed change, the employer must 299-3 report the change in writing to the commission. 299-4 (c) The commission shall reevaluate a plan that is proposed 299-5 to be substantially modified. 299-6 (d) If a proposed plan modification is substantial, the 299-7 commission may approve the modified plan according to the 299-8 requirements of Sections 215.022(a)(1) and (2) or shall deny the 299-9 modification subject to Section 215.023. 299-10 (e) Approval of a modified plan does not affect the plan's 299-11 original expiration date. (V.A.C.S. Art. 5221b-22f(i).) 299-12 Sec. 215.026. PARTICIPATING EMPLOYER'S REPORT ON PLAN 299-13 OPERATION. A participating employer shall: 299-14 (1) monitor and evaluate the operation of its 299-15 established shared work plan as requested by the commission; and 299-16 (2) report the findings to the commission. (V.A.C.S. 299-17 Art. 5221b-22f(c) (part).) 299-18 (Sections 215.027-215.040 reserved for expansion) 299-19 SUBCHAPTER C. SHARED WORK BENEFITS 299-20 Sec. 215.041. EMPLOYEE'S ELIGIBILITY FOR SHARED WORK 299-21 BENEFITS. (a) Notwithstanding any other provision of this 299-22 subtitle, an individual is unemployed for the purposes of this 299-23 subtitle in a week in which the individual works under an approved 299-24 shared work plan in effect for that week for less than the 299-25 individual's normal weekly hours of work. 299-26 (b) An individual is eligible to receive shared work 299-27 benefits for a week in which: 300-1 (1) the individual is employed as a member of an 300-2 affected unit subject to a shared work plan that was approved 300-3 before that week and is in effect for that week; 300-4 (2) the individual is able to work and is available 300-5 for additional hours of work or for full-time work with the 300-6 participating employer; and 300-7 (3) the individual's normal weekly hours of work have 300-8 been reduced by at least 10 percent but not more than 40 percent, 300-9 with a corresponding reduction in wages. 300-10 (c) The commission may not deny shared work benefits for a 300-11 week to an otherwise eligible individual because of a provision of 300-12 this subtitle that relates to: 300-13 (1) availability for work; 300-14 (2) active search for work; or 300-15 (3) refusal to apply for or to accept work with an 300-16 employer other than the participating employer. (V.A.C.S. Arts. 300-17 5221b-22f(j), (k).) 300-18 Sec. 215.042. SHARED WORK BENEFITS FORMULA. (a) The 300-19 commission shall pay an individual who is eligible for shared work 300-20 benefits a weekly shared work benefit in an amount equal to the 300-21 individual's regular weekly benefit amount for a period of total 300-22 unemployment multiplied by the nearest full percentage of reduction 300-23 of the individual's wages under the employer's shared work plan. 300-24 (b) The commission shall round to the next highest dollar a 300-25 shared work benefit that is not a multiple of one dollar. 300-26 (V.A.C.S. Art. 5221b-22f(l).) 300-27 Sec. 215.043. LIMITATIONS ON BENEFITS. (a) An individual 301-1 is not entitled to receive shared work benefits and regular 301-2 unemployment compensation benefits that exceed the maximum total 301-3 benefits payable to the individual in a benefit year as provided by 301-4 Section 207.005. 301-5 (b) An individual who receives shared work benefits is not 301-6 entitled to receive benefits for partial unemployment under Section 301-7 207.003 for any week in which the individual works as a 301-8 participating employee. 301-9 (c) The commission may not pay an individual shared work 301-10 benefits for a week in which the individual performs paid work for 301-11 the participating employer that exceeds the reduced hours 301-12 established under a shared work plan. (V.A.C.S. Arts. 301-13 5221b-22f(m), (n).) 301-14 Sec. 215.044. EXTENDED BENEFITS. An individual who has 301-15 received all of the shared work benefits and regular unemployment 301-16 compensation benefits available in a benefit year is an individual 301-17 who has exhausted regular benefits under Section 209.042 and is 301-18 entitled to receive extended benefits under Chapter 209 if the 301-19 individual is otherwise eligible under that chapter. (V.A.C.S. 301-20 Art. 5221b-22f(o).) 301-21 CHAPTER 216. COMMUNITIES IN SCHOOLS PROGRAM 301-22 SUBCHAPTER A. GENERAL PROVISIONS 301-23 Sec. 216.001. DEFINITIONS 301-24 Sec. 216.002. STATEWIDE OPERATION OF PROGRAM 301-25 (Sections 216.003-216.010 reserved for expansion) 301-26 SUBCHAPTER B. OPERATION OF PROGRAM 301-27 Sec. 216.011. STATE COORDINATOR 302-1 Sec. 216.012. DUTIES OF STATE COORDINATOR 302-2 Sec. 216.013. AGENCY COOPERATION; MEMORANDUM OF 302-3 UNDERSTANDING 302-4 (Sections 216.014-216.020 reserved for expansion) 302-5 SUBCHAPTER C. PARTICIPATION IN PROGRAM BY CERTAIN SCHOOLS 302-6 Sec. 216.021. DESIGNATION OF PARTICIPATING SCHOOLS 302-7 Sec. 216.022. PARTICIPATION IN PROGRAM 302-8 (Sections 216.023-216.030 reserved for expansion) 302-9 SUBCHAPTER D. PROGRAM FUNDING 302-10 Sec. 216.031. DONATIONS TO PROGRAM 302-11 CHAPTER 216. COMMUNITIES IN SCHOOLS PROGRAM 302-12 SUBCHAPTER A. GENERAL PROVISIONS 302-13 Sec. 216.001. DEFINITIONS. In this chapter: 302-14 (1) "Agency" means the Central Education Agency. 302-15 (2) "Communities in Schools program" means an 302-16 exemplary youth dropout prevention program. (New.) 302-17 Sec. 216.002. STATEWIDE OPERATION OF PROGRAM. It is the 302-18 intent of the legislature that the Communities in Schools program 302-19 operate throughout this state. (V.A.C.S. Art. 5221b-9d(g).) 302-20 (Sections 216.003-216.010 reserved for expansion) 302-21 SUBCHAPTER B. OPERATION OF PROGRAM 302-22 Sec. 216.011. STATE COORDINATOR. The administrator of the 302-23 commission shall appoint a state coordinator for the Communities in 302-24 Schools program. (V.A.C.S. Art. 5221b-9d(a) (part).) 302-25 Sec. 216.012. DUTIES OF STATE COORDINATOR. The state 302-26 coordinator shall: 302-27 (1) coordinate the efforts of social service 303-1 organizations and agencies and of public school personnel to 303-2 provide services to students who are at risk of dropping out of 303-3 school or engaging in delinquent conduct; 303-4 (2) set standards for the Communities in Schools 303-5 program; 303-6 (3) obtain information from each participating school 303-7 district to determine necessary program changes; 303-8 (4) promote and market the program in communities in 303-9 which the program is not established; 303-10 (5) help communities that want to participate in the 303-11 program establish a local funding base; and 303-12 (6) train a program director for each participating 303-13 community. (V.A.C.S. Arts. 5221b-9d(a) (part), (b).) 303-14 Sec. 216.013. AGENCY COOPERATION; MEMORANDUM OF 303-15 UNDERSTANDING. (a) The agency and the commission shall work 303-16 together to maximize the effectiveness of the Communities in 303-17 Schools program. 303-18 (b) The agency and the commission shall develop and mutually 303-19 agree to a memorandum of understanding to clearly define the 303-20 responsibilities of each agency under this chapter. The memorandum 303-21 must address: 303-22 (1) the role of the commission in encouraging local 303-23 business to participate in local Communities in Schools programs; 303-24 (2) the role of the agency in obtaining information 303-25 from participating school districts; 303-26 (3) the use of federal or state funds available to the 303-27 agency or the commission for programs of this nature; and 304-1 (4) other areas identified by the agency and the 304-2 commission that require clarification. 304-3 (c) The agency and the commission shall adopt rules to 304-4 implement the memorandum and shall update the memorandum and rules 304-5 annually. (V.A.C.S. Arts. 5221b-9d(c), (d).) 304-6 (Sections 216.014-216.020 reserved for expansion) 304-7 SUBCHAPTER C. PARTICIPATION IN PROGRAM BY CERTAIN SCHOOLS 304-8 Sec. 216.021. DESIGNATION OF PARTICIPATING SCHOOLS. (a) 304-9 The state coordinator, in cooperation with the program directors in 304-10 the counties in which a Communities in Schools program was 304-11 established on September 1, 1991, shall designate not more than 32 304-12 elementary schools and 76 secondary schools in those counties to 304-13 participate in the program. 304-14 (b) The state coordinator, in cooperation with the program 304-15 directors in four additional counties designated by the state 304-16 coordinator, shall designate additional elementary and secondary 304-17 schools to participate in the Communities in Schools program. 304-18 (c) The designation of secondary schools to participate in 304-19 the Communities in Schools program must be distributed among high 304-20 schools and junior high or middle schools. (V.A.C.S. Art. 304-21 5221b-9d(f).) 304-22 Sec. 216.022. PARTICIPATION IN PROGRAM. An elementary or 304-23 secondary school designated under Section 216.021 shall participate 304-24 in the Communities in Schools program if the number of students 304-25 enrolled in the school who are at risk of dropping out of school is 304-26 equal to at least 10 percent of the number of students in average 304-27 daily attendance at the school, as determined by the agency. 305-1 (V.A.C.S. Art. 5221b-9d(e) (part).) 305-2 (Sections 216.023-216.030 reserved for expansion) 305-3 SUBCHAPTER D. PROGRAM FUNDING 305-4 Sec. 216.031. DONATIONS TO PROGRAM. (a) The commission may 305-5 accept a donation of services or money or other property that the 305-6 commission determines furthers the lawful objectives of the 305-7 commission in connection with the Communities in Schools program. 305-8 (b) Donations must be accepted in an open meeting by a 305-9 majority of the voting members of the commission. The donation, 305-10 with the name of the donor and the purpose of the donation, must be 305-11 reported in the public records of the commission. (V.A.C.S. Art. 305-12 5221b-9d(h).) 305-13 CHAPTER 217. PROJECT RIO (REINTEGRATION OF OFFENDERS) 305-14 Sec. 217.001. DEFINITIONS 305-15 Sec. 217.002. PROJECT RIO 305-16 Sec. 217.003. ADMINISTRATION 305-17 Sec. 217.004. MEMORANDUM OF UNDERSTANDING--ADOPTION 305-18 Sec. 217.005. MEMORANDUM OF UNDERSTANDING--CONTENTS 305-19 Sec. 217.006. PROJECT DIRECTOR 305-20 CHAPTER 217. PROJECT RIO 305-21 (REINTEGRATION OF OFFENDERS) 305-22 Sec. 217.001. DEFINITIONS. In this chapter: 305-23 (1) "Department" means the Texas Department of 305-24 Criminal Justice. 305-25 (2) "Institutional division" means the institutional 305-26 division of the department. 305-27 (3) "Project RIO" means the project for reintegration 306-1 of offenders. (New; V.A.C.S. Art. 5221b-9ee(a).) 306-2 Sec. 217.002. PROJECT RIO. The project for reintegration of 306-3 offenders is a statewide employment referral program designed to 306-4 reintegrate into the labor force persons formerly confined in the 306-5 institutional division. (V.A.C.S. Art. 5221b-9ee(b) (part).) 306-6 Sec. 217.003. ADMINISTRATION. The department and the 306-7 commission shall cooperate to maximize the effectiveness of Project 306-8 RIO. For that purpose, the commission shall administer the 306-9 project. (V.A.C.S. Art. 5221b-9ee(b) (part).) 306-10 Sec. 217.004. MEMORANDUM OF UNDERSTANDING--ADOPTION. (a) 306-11 The department and the commission shall adopt a memorandum of 306-12 understanding that establishes the respective responsibilities of 306-13 each agency and of the divisions within the department. 306-14 (b) The commission shall coordinate the development of the 306-15 memorandum of understanding. The department shall adopt rules as 306-16 necessary to implement the memorandum and may amend the memorandum 306-17 and those rules as necessary. (V.A.C.S. Arts. 5221b-9ee(b) (part), 306-18 (c).) 306-19 Sec. 217.005. MEMORANDUM OF UNDERSTANDING--CONTENTS. (a) 306-20 The memorandum of understanding must establish the role of: 306-21 (1) the institutional division in ascertaining and 306-22 encouraging an inmate's chances for employment by: 306-23 (A) providing vocational and educational 306-24 assessment for the person while incarcerated in the division; 306-25 (B) developing a skills enhancement program for 306-26 the person while incarcerated, in cooperation with other 306-27 governmental, educational, and private entities, using available 307-1 public or private financial resources authorized by statute; and 307-2 (C) referring the person on release to the 307-3 project through the person's parole officer; 307-4 (2) the community justice assistance division and the 307-5 pardons and paroles division of the department in: 307-6 (A) encouraging and referring persons to the 307-7 project; and 307-8 (B) ensuring that those persons participate in 307-9 the project and avail themselves of its services; and 307-10 (3) the commission in developing and maintaining a 307-11 statewide network for finding positions of employment that require 307-12 the skills possessed by project participants and in helping those 307-13 participants to secure employment. 307-14 (b) The memorandum also must establish the methods by which 307-15 the commission shall coordinate its efforts under this chapter with 307-16 the operations of service providers operating under Chapter 301 307-17 (Texas Job-Training Partnership Act). (V.A.C.S. Art. 5221b-9ee(b) 307-18 (part).) 307-19 Sec. 217.006. PROJECT DIRECTOR. (a) The administrator of 307-20 the commission shall designate the director of Project RIO to 307-21 coordinate the efforts of the affected state agencies and expedite 307-22 the delivery of services to participants in the project, including 307-23 prospective employers. 307-24 (b) The project director shall: 307-25 (1) propose, for adoption by the commission, standards 307-26 and guidelines for the operation of the project; 307-27 (2) obtain information from appropriate state agencies 308-1 and offices affiliated with the project to determine any necessary 308-2 changes in the project; 308-3 (3) disseminate information statewide about the 308-4 project; and 308-5 (4) train commission staff to assist in the operation 308-6 of affiliated services. (V.A.C.S. Arts. 5221b-9ee(d), (e).) 308-7 (Chapters 218-300 reserved for expansion) 308-8 SUBTITLE B. ADDITIONAL EMPLOYMENT SERVICES 308-9 CHAPTER 301. JOB TRAINING PARTNERSHIP ACT 308-10 SUBCHAPTER A. GENERAL PROVISIONS 308-11 Sec. 301.001. SHORT TITLE 308-12 Sec. 301.002. PURPOSE 308-13 Sec. 301.003. STATE POLICY 308-14 Sec. 301.004. STATE GOALS 308-15 Sec. 301.005. DEFINITIONS 308-16 (Sections 301.006-301.020 reserved for expansion) 308-17 SUBCHAPTER B. STATE ADMINISTRATION 308-18 Sec. 301.021. GENERAL DUTIES OF GOVERNOR'S OFFICE 308-19 AND STAFF 308-20 Sec. 301.022. GENERAL DUTIES OF DEPARTMENT 308-21 Sec. 301.023. COMPOSITION OF STATE JOB TRAINING COORDINATING 308-22 COUNCIL; MEETINGS 308-23 Sec. 301.024. DUTIES OF STATE COUNCIL 308-24 Sec. 301.025. SUBMISSION OF AGENCY INFORMATION TO STATE 308-25 COUNCIL 308-26 Sec. 301.026. MONITORING COMMITTEE; SUBMISSION OF AGENCY 308-27 INFORMATION 309-1 Sec. 301.027. SUBMISSION OF AUDIT INFORMATION TO 309-2 COMMITTEE 309-3 Sec. 301.028. RULES 309-4 (Sections 301.029-301.040 reserved for expansion) 309-5 SUBCHAPTER C. PROGRAM DELIVERY SYSTEM--STATE AND 309-6 LOCAL RESPONSIBILITIES 309-7 Sec. 301.041. DESIGNATION OF SERVICE DELIVERY AREAS 309-8 Sec. 301.042. CERTIFICATION OF PRIVATE INDUSTRY 309-9 COUNCILS 309-10 Sec. 301.043. STANDARDS FOR LOCAL ADMINISTRATIVE 309-11 ENTITY 309-12 Sec. 301.044. COMPOSITION OF PRIVATE INDUSTRY COUNCILS 309-13 Sec. 301.045. AGREEMENT FOR LOCAL PROCEDURES 309-14 Sec. 301.046. PREPARATION AND SUBMISSION OF LOCAL PLANS 309-15 Sec. 301.047. APPROVAL OF LOCAL PLAN 309-16 Sec. 301.048. LOCAL IMPLEMENTATION; SERVICE DELIVERY 309-17 AREA COORDINATION 309-18 Sec. 301.049. GOVERNOR'S COORDINATION AND SPECIAL SERVICES 309-19 PLAN AND ACTIVITIES 309-20 Sec. 301.050. REVIEW AND COMMENT BY LEGISLATURE 309-21 Sec. 301.051. PERFORMANCE STANDARD VARIATIONS 309-22 Sec. 301.052. PROGRAM RECORDKEEPING, ACCOUNTABILITY, 309-23 AND AUDITS 309-24 Sec. 301.053. PROGRAMS FOR STUDENT DROPOUTS 309-25 CHAPTER 301. JOB TRAINING PARTNERSHIP ACT 309-26 SUBCHAPTER A. GENERAL PROVISIONS 309-27 Sec. 301.001. SHORT TITLE. This chapter may be cited as the 310-1 Texas Job Training Partnership Act. (V.A.C.S. Art. 4413(52), Sec. 310-2 1.) 310-3 Sec. 301.002. PURPOSE. The purpose of this chapter is to 310-4 facilitate the development and implementation of effective state 310-5 and local systems for managing job training, employment, and 310-6 related programs in this state, as authorized by the federal act. 310-7 (V.A.C.S. Art. 4413(52), Sec. 2(a).) 310-8 Sec. 301.003. STATE POLICY. It is the policy of this state 310-9 that: 310-10 (1) all available resources from federal, state, and 310-11 local governments, business, labor, and community-based 310-12 organizations are coordinated to develop and promote a balanced, 310-13 equitable, and cost-beneficial employment and training system; 310-14 (2) the governor and the legislature consult in 310-15 implementing the federal act and this chapter; and 310-16 (3) to reduce dependency on public assistance, the 310-17 programs created under this chapter emphasize service to AFDC 310-18 recipients. (V.A.C.S. Art. 4413(52), Sec. 2(b).) 310-19 Sec. 301.004. STATE GOALS. (a) It is a goal of this state 310-20 to assist its citizens to obtain gainful employment and to reduce 310-21 dependency on public assistance and unemployment compensation by: 310-22 (1) preparing young people and unskilled adults who 310-23 are economically disadvantaged for entry into the work force; 310-24 (2) assisting citizens faced with serious barriers to 310-25 employment, including age, disability, lack of education, and 310-26 locality, to overcome those barriers; 310-27 (3) taking an affirmative role in ensuring the maximum 311-1 use of available resources in planning, implementing, and 311-2 facilitating this chapter through a partnership of individuals from 311-3 the various diverse communities of the state, including 311-4 representatives of business communities, local and state 311-5 government, ethnic communities, education communities, and the 311-6 various cultural and socioeconomic communities, in participation in 311-7 decision-making and policy-making activities associated with 311-8 programs created under this chapter; and 311-9 (4) retraining individuals whose current skills are no 311-10 longer in demand in the labor market or who have been laid off from 311-11 full-time employment, and who must upgrade their work skills to 311-12 return to the work force. 311-13 (b) It is a goal of this state to develop a well-trained, 311-14 productive work force to meet the needs of a changing economy by: 311-15 (1) coordinating existing labor market information to 311-16 maximize its utility for planning and operating programs; 311-17 (2) providing enhanced employment and training 311-18 capabilities that are specially designed to meet the needs of 311-19 business and industry, including industries that use advanced 311-20 technology; 311-21 (3) linking employment and training services with 311-22 economic development efforts; and 311-23 (4) coordinating planning and delivery of job 311-24 training, employment, and related programs provided by separate 311-25 state agencies to improve the efficiency and effectiveness of those 311-26 programs. (V.A.C.S. Art. 4413(52), Sec. 3.) 311-27 Sec. 301.005. DEFINITIONS. (a) In this chapter: 312-1 (1) "Committee" means the monitoring committee 312-2 established under Section 301.026. 312-3 (2) "Department" means the Texas Department of 312-4 Commerce. 312-5 (3) "Federal act" means the federal Job Training 312-6 Partnership Act (29 U.S.C. Section 1501 et seq.). 312-7 (4) "Grant recipient" means an entity that contracts 312-8 for and receives funds from the governor. 312-9 (5) "Labor market area" means an economically 312-10 integrated geographical area within which individuals may reside 312-11 and find employment within a reasonable distance. 312-12 (6) "Service delivery area" means a geographic area 312-13 designated as a service delivery area under Section 301.041. 312-14 (7) "State council" means the State Job Training 312-15 Coordinating Council. 312-16 (b) The definitions provided by Section 4 of the federal act 312-17 apply to this chapter, except that "governor" means the governor of 312-18 this state. (New; V.A.C.S. Art. 4413(52), Secs. 4 (part), 8(b) 312-19 (part).) 312-20 (Sections 301.006-301.020 reserved for expansion) 312-21 SUBCHAPTER B. STATE ADMINISTRATION 312-22 Sec. 301.021. GENERAL DUTIES OF GOVERNOR'S OFFICE AND STAFF. 312-23 (a) The governor or the governor's delegated agency is responsible 312-24 for the planning, monitoring, implementing, and evaluating of job 312-25 training, employment, and related programs as provided for by the 312-26 federal act. 312-27 (b) A job training and employment staff is in the governor's 313-1 office. The staff has responsibility for policy development, 313-2 program planning, monitoring, and evaluation of the programs under 313-3 this chapter in coordination with existing state agencies as 313-4 provided under the federal act. The staff shall: 313-5 (1) assist the state council as directed by the 313-6 governor; and 313-7 (2) perform other functions relating to the job 313-8 training, employment, and related programs as assigned by the 313-9 governor. (V.A.C.S. Art. 4413(52), Secs. 5(a), 8(c) (part).) 313-10 Sec. 301.022. GENERAL DUTIES OF DEPARTMENT. The department 313-11 has primary responsibility for implementation and management of the 313-12 job training program. The department shall perform other functions 313-13 relating to the job training program as assigned by the governor. 313-14 (V.A.C.S. Art. 4413(52), Sec. 5(b).) 313-15 Sec. 301.023. COMPOSITION OF STATE JOB TRAINING COORDINATING 313-16 COUNCIL; MEETINGS. (a) The governor shall appoint the members of 313-17 the State Job Training Coordinating Council in accordance with the 313-18 federal act. The state council may not have more than 40 members, 313-19 including the presiding officer. 313-20 (b) The state council shall meet at least once quarterly. 313-21 (V.A.C.S. Art. 4413(52), Sec. 8(b) (part).) 313-22 Sec. 301.024. DUTIES OF STATE COUNCIL. The state council 313-23 shall: 313-24 (1) develop and recommend statewide goals and program 313-25 objectives; 313-26 (2) identify needs for training and employment 313-27 services; 314-1 (3) review operations of local programs and state 314-2 agencies providing job training, employment, and related programs 314-3 identified in the federal act; 314-4 (4) establish standards for coordinating program 314-5 planning and operations; 314-6 (5) evaluate the results of state and local training 314-7 and employment services; 314-8 (6) develop and recommend to the governor the state's 314-9 coordination and special services plan; 314-10 (7) perform the functions assigned to the state job 314-11 training coordinating council for the job opportunities and basic 314-12 skills program under Title IV of the Social Security Act (42 314-13 U.S.C. Section 681 et seq.); 314-14 (8) perform the functions of the advisory council 314-15 required under the Wagner-Peyser Act (29 U.S.C. Section 49), as 314-16 implemented under Subtitle A (Texas Unemployment Compensation Act); 314-17 (9) assist each private industry council in developing 314-18 programs to serve AFDC recipients; 314-19 (10) develop conflict-of-interest guidelines relating 314-20 to the participation of a member of a private industry council in a 314-21 contract with the service delivery area administered by that 314-22 private industry council; and 314-23 (11) perform functions relating to job training, 314-24 employment, and related programs as required by the federal act or 314-25 as assigned by the governor. (V.A.C.S. Art. 4413(52), Sec. 8(b) 314-26 (part).) 314-27 Sec. 301.025. SUBMISSION OF AGENCY INFORMATION TO STATE 315-1 COUNCIL. A state agency providing an employment, job training, or 315-2 related program shall: 315-3 (1) provide to the state council information for 315-4 planning, reviewing program operations, and evaluating program 315-5 results as required by the governor; and 315-6 (2) submit the agency's plans to the state council. 315-7 (V.A.C.S. Art. 4413(52), Sec. 8(d).) 315-8 Sec. 301.026. MONITORING COMMITTEE; SUBMISSION OF AGENCY 315-9 INFORMATION. (a) A joint committee appointed by the speaker of 315-10 the house of representatives and the lieutenant governor shall 315-11 monitor the progress of the implementation of this chapter. The 315-12 committee shall recommend: 315-13 (1) any necessary legislative action or remedies for 315-14 the next regular session of the legislature; and 315-15 (2) congressional remedies. 315-16 (b) To monitor implementation of this chapter as required by 315-17 Subsection (a), the committee may oversee each employment, job 315-18 training, and related program conducted by a state agency. Each 315-19 state agency that conducts such a program shall cooperate fully 315-20 with the committee and shall submit information and reports to the 315-21 committee as requested by the committee. (V.A.C.S. Art. 4413(52), 315-22 Sec. 6.) 315-23 Sec. 301.027. SUBMISSION OF AUDIT INFORMATION TO COMMITTEE. 315-24 (a) To obtain information necessary to monitor the progress of the 315-25 implementation of this chapter, the committee is entitled to 315-26 receive the results of audits that relate to state and local job 315-27 training plans. The committee may prescribe the form in which the 316-1 results are reported to the committee. 316-2 (b) The state auditor shall submit to the committee the 316-3 results of a financial audit, effectiveness audit, or compliance 316-4 audit conducted under Section 321.013, Government Code, that relate 316-5 to the operation of an employment, job training, or related program 316-6 administered by a state agency. 316-7 (c) The private industry council and appropriate chief 316-8 elected official of each service delivery area shall submit to the 316-9 state auditor, in the manner directed by the state auditor, the 316-10 results of an audit conducted under audit procedures established 316-11 under Section 301.052(b) that relates to the operation of the 316-12 service delivery area's program of job training, employment, or 316-13 related services. The state auditor shall compile a summary of 316-14 audit results from the information received from each service 316-15 delivery area and shall submit the summary in writing to the 316-16 committee. (V.A.C.S. Art. 4413(52), Sec. 6A.) 316-17 Sec. 301.028. RULES. The governor may adopt rules to 316-18 implement this chapter and the federal act. (V.A.C.S. Art. 316-19 4413(52), Sec. 10.) 316-20 (Sections 301.029-301.040 reserved for expansion) 316-21 SUBCHAPTER C. PROGRAM DELIVERY SYSTEM--STATE AND LOCAL 316-22 RESPONSIBILITIES 316-23 Sec. 301.041. DESIGNATION OF SERVICE DELIVERY AREAS. The 316-24 governor shall designate service delivery areas according to the 316-25 procedures established by the federal act so that: 316-26 (1) each service delivery area is composed of one or 316-27 more units of local government within which programs can be 317-1 efficiently and effectively provided; 317-2 (2) each service delivery area meets the federal act 317-3 requirements for the establishment of a service delivery area; 317-4 (3) the number of service delivery areas, to the 317-5 extent feasible, is kept to a minimum for administrative 317-6 efficiency; and 317-7 (4) the size of each service delivery area entitles 317-8 the area to receive an allocation of funds sufficient to plan and 317-9 operate an effective local program, as determined by the governor. 317-10 (V.A.C.S. Art. 4413(52), Secs. 4 (part), 7(a).) 317-11 Sec. 301.042. CERTIFICATION OF PRIVATE INDUSTRY COUNCILS. 317-12 The governor shall certify a private industry council in each 317-13 service delivery area when the governor determines that the 317-14 appointment procedures and composition of the membership of the 317-15 private industry council are consistent with the requirements of 317-16 the federal act. (V.A.C.S. Art. 4413(52), Sec. 7(b).) 317-17 Sec. 301.043. STANDARDS FOR LOCAL ADMINISTRATIVE ENTITY. 317-18 The governor shall prescribe standards for the selection of a local 317-19 entity to administer programs authorized under the federal act to 317-20 ensure that the entity can: 317-21 (1) develop plans and provide for efficient and 317-22 effective programs; 317-23 (2) provide accurate management information when 317-24 required; and 317-25 (3) properly disburse, account for, and control all 317-26 fund expenditures. (V.A.C.S. Art. 4413(52), Sec. 7(c).) 317-27 Sec. 301.044. COMPOSITION OF PRIVATE INDUSTRY COUNCILS. (a) 318-1 The appropriate chief elected officials in each service delivery 318-2 area shall select the members and the initial size of the private 318-3 industry council for the area in accordance with procedures 318-4 specified in the federal act. 318-5 (b) Each private industry council must include a 318-6 representative of the local Texas Department of Human Services 318-7 region. (V.A.C.S. Art. 4413(52), Sec. 7(d).) 318-8 Sec. 301.045. AGREEMENT FOR LOCAL PROCEDURES. The 318-9 appropriate chief elected officials in a service delivery area 318-10 shall enter into an agreement with the private industry council of 318-11 the area to determine procedures for: 318-12 (1) the selection of the grant recipient, the planning 318-13 entity, and the administrative entity for the service delivery 318-14 area; and 318-15 (2) the development of the local job training plan. 318-16 (V.A.C.S. Art. 4413(52), Sec. 7(e).) 318-17 Sec. 301.046. PREPARATION AND SUBMISSION OF LOCAL PLANS. 318-18 The appropriate chief elected officials in each service delivery 318-19 area and the private industry council of the area shall, in 318-20 accordance with their agreement: 318-21 (1) prepare a plan that provides a comprehensive 318-22 program of job training, employment, and related services in 318-23 response to the needs of the eligible persons within the service 318-24 delivery area; 318-25 (2) submit the plan before the 120th day before the 318-26 beginning date of the plan to the committee, each house of the 318-27 legislature, and other entities as prescribed by the federal act; 319-1 and 319-2 (3) develop jointly with the Texas State Employment 319-3 Service those components of the state plan required under the 319-4 Wagner-Peyser Act (29 U.S.C. Section 49g) that are applicable to 319-5 that service delivery area. (V.A.C.S. Art. 4413(52), Sec. 9(a) 319-6 (part).) 319-7 Sec. 301.047. APPROVAL OF LOCAL PLAN. The governor shall 319-8 approve or disapprove a final local job training plan or 319-9 modification according to the standards established by the federal 319-10 act. (V.A.C.S. Art. 4413(52), Sec. 8(c) (part).) 319-11 Sec. 301.048. LOCAL IMPLEMENTATION; SERVICE DELIVERY AREA 319-12 COORDINATION. (a) The appropriate chief elected officials in each 319-13 service delivery area and the private industry council for the area 319-14 shall: 319-15 (1) allocate available resources to its program of job 319-16 training, employment, and related services; 319-17 (2) develop procedures and standards for the selection 319-18 of eligible participants and their eligibility determination; and 319-19 (3) select service providers with a demonstrated 319-20 capability to provide effective services and achieve performance 319-21 goals. 319-22 (b) If a single labor market area contains more than one 319-23 service delivery area, the appropriate chief elected officials and 319-24 the private industry council for each of the applicable service 319-25 delivery areas shall coordinate their activities as required by the 319-26 federal act. (V.A.C.S. Art. 4413(52), Secs. 9(b), (c).) 319-27 Sec. 301.049. GOVERNOR'S COORDINATION AND SPECIAL SERVICES 320-1 PLAN AND ACTIVITIES. (a) The governor or the governor's delegated 320-2 agency shall: 320-3 (1) prepare a statement of goals and objectives for 320-4 job training and placement programs; 320-5 (2) provide specifications for the design, 320-6 development, and operation of a statewide uniform labor market 320-7 information system to facilitate the timely availability of 320-8 employment and training information throughout the state; 320-9 (3) develop and provide to service delivery areas 320-10 information on a state and local basis regarding economic, 320-11 industrial, and labor market conditions; 320-12 (4) plan, provide for the operation of, and evaluate 320-13 special model or demonstration programs, including programs 320-14 receiving financial assistance from private sources; 320-15 (5) make available to service delivery areas, with or 320-16 without reimbursement and on request, appropriate information and 320-17 technical assistance to assist in developing and implementing plans 320-18 and programs; and 320-19 (6) provide preservice and in-service training to 320-20 improve the professional capability of managers and technical staff 320-21 of state agencies, local administrative entities, private industry 320-22 councils, and contractors involved in planning and operating 320-23 programs. 320-24 (b) The governor shall submit a coordination and special 320-25 services plan to the United States secretary of labor in accordance 320-26 with the federal act. (V.A.C.S. Art. 4413(52), Sec. 8(c) (part).) 320-27 Sec. 301.050. REVIEW AND COMMENT BY LEGISLATURE. (a) The 321-1 legislature may review and comment on the job training plan 321-2 submitted from each service delivery area. 321-3 (b) The governor shall submit the governor's coordination 321-4 and special services plan to the lieutenant governor and the 321-5 speaker of the house of representatives not later than February 1 321-6 of each odd-numbered year. The lieutenant governor and speaker 321-7 shall refer the plan to the appropriate senate and house committees 321-8 for review and comment. (V.A.C.S. Art. 4413(52), Sec. 8(a).) 321-9 Sec. 301.051. PERFORMANCE STANDARD VARIATIONS. The governor 321-10 shall prescribe, within parameters established by the secretary, 321-11 variations in the performance standards for programs under the 321-12 federal act. The variations must recognize the economic, 321-13 geographic, and demographic differences in the various regions of 321-14 the state. (V.A.C.S. Art. 4413(52), Sec. 8(c) (part).) 321-15 Sec. 301.052. PROGRAM RECORDKEEPING, ACCOUNTABILITY, AND 321-16 AUDITS. (a) The governor or the governor's delegated agency 321-17 shall: 321-18 (1) establish and maintain a computerized statewide 321-19 management information system to collect and maintain the 321-20 financial, participant, and program information necessary to ensure 321-21 monthly program accountability; 321-22 (2) develop and formally issue procedures to ensure 321-23 consistency of definitions, formats, recordkeeping, information 321-24 gathering, and reporting, including procedures concerning: 321-25 (A) planning and contracting; 321-26 (B) labor market information; 321-27 (C) financial management; 322-1 (D) participant tracking; 322-2 (E) monitoring; 322-3 (F) evaluations; 322-4 (G) audits; 322-5 (H) complaints and grievance procedures; 322-6 (I) personnel standards, including equal 322-7 opportunity compliance; and 322-8 (J) property management; 322-9 (3) at least once annually, monitor or provide for the 322-10 monitoring of each grant recipient and contractor to ensure 322-11 compliance; and 322-12 (4) at least once every two years, provide for an 322-13 independent audit of each recipient of funds authorized under the 322-14 federal act. 322-15 (b) The appropriate chief elected officials in each service 322-16 delivery area and the private industry council of the area shall, 322-17 in accordance with their agreement: 322-18 (1) prepare and submit an annual report to the 322-19 governor in accordance with the federal act; 322-20 (2) establish procedures for providing oversight of 322-21 all programs conducted under the local job training plan; 322-22 (3) maintain records and a management information 322-23 system designed to facilitate uniform compilation and analysis of 322-24 programmatic and financial information for the service delivery 322-25 area, consistent with federal and state requirements; and 322-26 (4) establish fiscal, audit, and debt-collection 322-27 procedures to ensure the proper disbursal, use, and accounting of 323-1 all funds provided under the federal act. (V.A.C.S. Art. 4413(52), 323-2 Secs. 8(c) (part), 9(a) (part).) 323-3 Sec. 301.053. PROGRAMS FOR STUDENT DROPOUTS. (a) To 323-4 provide educational services to student dropouts, the department 323-5 may contract with public community and junior colleges and private, 323-6 nonprofit organizations that conduct model or exemplary youth 323-7 programs that meet the unique educational needs of student 323-8 dropouts. In entering into a contract, the department must follow 323-9 the same procedure as a state agency contracting with a private 323-10 consultant under Chapter 454, Acts of the 65th Legislature, Regular 323-11 Session, 1977 (Article 6252-11c, Vernon's Texas Civil Statutes). 323-12 (b) A contract entered into under this section must be 323-13 structured to encourage partnerships among public school districts, 323-14 public community and junior colleges, private industry councils, 323-15 and the private, nonprofit organizations. 323-16 (c) A program provided under a contract entered into under 323-17 this section must provide services that attempt to: 323-18 (1) return student dropouts to the public school 323-19 system; 323-20 (2) prepare student dropouts to complete the 323-21 requirements for a general equivalency or adult proficiency level 323-22 diploma; and 323-23 (3) prepare student dropouts to obtain permanent 323-24 employment. 323-25 (d) A program provided under a contract entered into under 323-26 this section must provide a curriculum that is flexible and 323-27 innovative and that provides training in basic skills. 324-1 (e) An organization providing a program under this section 324-2 shall document its overall strategy and success rate in educating 324-3 student dropouts and provide this information to each school 324-4 district in the area the organization serves. The organization 324-5 shall request information from each of the school districts 324-6 regarding the referral process, curriculum, and instructional 324-7 resources of the program. 324-8 (f) The primary standard to be used in determining the 324-9 success rate of a program under this section is the rate at which 324-10 student dropouts in the program: 324-11 (1) return to public school; 324-12 (2) acquire a general equivalency or adult proficiency 324-13 level diploma; 324-14 (3) obtain permanent employment; and 324-15 (4) are not being arrested or prosecuted for a crime. 324-16 (V.A.C.S. Art. 4413(52), Sec. 9A.) 324-17 CHAPTER 302. EMPLOYMENT COUNSELING FOR DISPLACED HOMEMAKERS 324-18 Sec. 302.001. DEFINITIONS 324-19 Sec. 302.002. JOB COUNSELING PROGRAM 324-20 Sec. 302.003. PERSONNEL; OFFICE 324-21 Sec. 302.004. COOPERATION BY STATE AGENCIES AND 324-22 POLITICAL SUBDIVISIONS 324-23 CHAPTER 302. EMPLOYMENT COUNSELING FOR DISPLACED HOMEMAKERS 324-24 Sec. 302.001. DEFINITIONS. In this chapter: 324-25 (1) "Commission" means the Texas Employment 324-26 Commission. 324-27 (2) "Displaced homemaker" means a person who: 325-1 (A) has worked without pay as a homemaker for 325-2 the person's family; 325-3 (B) is not gainfully employed; 325-4 (C) has had, or would have, difficulty in 325-5 obtaining employment; and 325-6 (D) has depended on: 325-7 (i) the income of a family member for 325-8 financial support and has lost that income; or 325-9 (ii) government assistance as the parent 325-10 of dependent children and is no longer eligible for that 325-11 assistance. (V.A.C.S. Art. 5221g, Sec. 2.) 325-12 Sec. 302.002. JOB COUNSELING PROGRAM. (a) The commission, 325-13 through a special assistance job counseling program, shall: 325-14 (1) provide counseling for displaced homemakers; 325-15 (2) assist displaced homemakers in obtaining training 325-16 and education; and 325-17 (3) place displaced homemakers in suitable employment. 325-18 (b) The counseling must: 325-19 (1) consider and build on the skills and experiences 325-20 of the homemaker; and 325-21 (2) prepare the person, through employment counseling, 325-22 to reenter the paid work force and develop and improve job skills. 325-23 (c) The commission shall design the program specifically for 325-24 persons reentering the paid work force after a number of years as 325-25 homemakers to enable them to assume or resume a valuable role in 325-26 the paid work force commensurate with the homemakers' talents and 325-27 abilities. 326-1 (d) The commission may not charge a fee for participation in 326-2 the program by a displaced homemaker. (V.A.C.S. Art. 5221g, Secs. 326-3 1 (part), 3.) 326-4 Sec. 302.003. PERSONNEL; OFFICE. The commission shall use 326-5 its personnel, services, facilities, and equipment to operate the 326-6 job counseling program. (V.A.C.S. Art. 5221g, Sec. 4.) 326-7 Sec. 302.004. COOPERATION BY STATE AGENCIES AND POLITICAL 326-8 SUBDIVISIONS. State agencies and political subdivisions of the 326-9 state shall cooperate with the commission in obtaining suitable 326-10 employment for displaced homemakers counseled by the commission. 326-11 (V.A.C.S. Art. 5221g, Sec. 5.) 326-12 (Chapters 303-400 reserved for expansion) 326-13 TITLE 5. WORKERS' COMPENSATION 326-14 SUBTITLE A. TEXAS WORKERS' COMPENSATION ACT 326-15 CHAPTER 401. GENERAL PROVISIONS 326-16 SUBCHAPTER A. SHORT TITLE; APPLICATION OF SUNSET ACT 326-17 Sec. 401.001. SHORT TITLE 326-18 Sec. 401.002. APPLICATION OF SUNSET ACT 326-19 (Sections 401.003-401.010 reserved for expansion) 326-20 SUBCHAPTER B. DEFINITIONS 326-21 Sec. 401.011. GENERAL DEFINITIONS 326-22 Sec. 401.012. DEFINITION OF EMPLOYEE 326-23 Sec. 401.013. DEFINITION OF INTOXICATION 326-24 (Sections 401.014-401.020 reserved for expansion) 326-25 SUBCHAPTER C. MISCELLANEOUS PROVISIONS 326-26 Sec. 401.021. APPLICATION OF OTHER ACTS 326-27 Sec. 401.022. DISCRIMINATION PROHIBITED 327-1 Sec. 401.023. INTEREST OR DISCOUNT RATE 327-2 CHAPTER 401. GENERAL PROVISIONS 327-3 SUBCHAPTER A. SHORT TITLE; APPLICATION OF SUNSET ACT 327-4 Sec. 401.001. SHORT TITLE. This subtitle may be cited as 327-5 the Texas Workers' Compensation Act. (V.A.C.S. Art. 8308-1.01.) 327-6 Sec. 401.002. APPLICATION OF SUNSET ACT. The Texas Workers' 327-7 Compensation Commission and the Texas Workers' Compensation 327-8 Research Center are subject to Chapter 325, Government Code (Texas 327-9 Sunset Act). Unless continued in existence as provided by that 327-10 chapter, the commission is abolished September 1, 1995, and the 327-11 research center and the legislative oversight committee are 327-12 abolished September 1, 1995. (V.A.C.S. Art. 8308-1.02(b).) 327-13 (Sections 401.003-401.010 reserved for expansion) 327-14 SUBCHAPTER B. DEFINITIONS 327-15 Sec. 401.011. GENERAL DEFINITIONS. In this subtitle: 327-16 (1) "Adjuster" means a person licensed under Chapter 327-17 407, Acts of the 63rd Legislature, Regular Session, 1973 (Article 327-18 21.07-4, Vernon's Texas Insurance Code). 327-19 (2) "Administrative violation" means a violation of 327-20 this subtitle or a rule adopted under this subtitle that is subject 327-21 to penalties and sanctions as provided by this subtitle. 327-22 (3) "Agreement" means the resolution by the parties to 327-23 a dispute under this subtitle of one or more issues regarding an 327-24 injury, death, coverage, compensability, or compensation. The term 327-25 does not include a settlement. 327-26 (4) "Alien" means a person who is not a citizen of the 327-27 United States. 328-1 (5) "Benefit" means a medical benefit, an income 328-2 benefit, a death benefit, or a burial benefit based on a 328-3 compensable injury. 328-4 (6) "Certified self-insurer" means a private employer 328-5 granted a certificate of authority to self-insure, as authorized by 328-6 this subtitle, for the payment of compensation. 328-7 (7) "Child" means a son or daughter. The term 328-8 includes an adopted child or a stepchild who is a dependent of the 328-9 employee. 328-10 (8) "Commission" means the Texas Workers' Compensation 328-11 Commission. 328-12 (9) "Commute" means to pay in a lump sum. 328-13 (10) "Compensable injury" means an injury that arises 328-14 out of and in the course and scope of employment for which 328-15 compensation is payable under this subtitle. 328-16 (11) "Compensation" means payment of a benefit. 328-17 (12) "Course and scope of employment" means an 328-18 activity of any kind or character that has to do with and 328-19 originates in the work, business, trade, or profession of the 328-20 employer and that is performed by an employee while engaged in or 328-21 about the furtherance of the affairs or business of the employer. 328-22 The term includes an activity conducted on the premises of the 328-23 employer or at other locations. The term does not include: 328-24 (A) transportation to and from the place of 328-25 employment unless: 328-26 (i) the transportation is furnished as a 328-27 part of the contract of employment or is paid for by the employer; 329-1 (ii) the means of the transportation are 329-2 under the control of the employer; or 329-3 (iii) the employee is directed in the 329-4 employee's employment to proceed from one place to another place; 329-5 or 329-6 (B) travel by the employee in the furtherance of 329-7 the affairs or business of the employer if the travel is also in 329-8 furtherance of personal or private affairs of the employee unless: 329-9 (i) the travel to the place of occurrence 329-10 of the injury would have been made even had there been no personal 329-11 or private affairs of the employee to be furthered by the travel; 329-12 and 329-13 (ii) the travel would not have been made 329-14 had there been no affairs or business of the employer to be 329-15 furthered by the travel. 329-16 (13) "Death benefit" means a payment made under this 329-17 subtitle to a legal beneficiary because of the death of an 329-18 employee. 329-19 (14) "Dependent" means an individual who receives a 329-20 regular or recurring economic benefit that contributes 329-21 substantially to the individual's welfare and livelihood if the 329-22 individual is eligible for distribution of benefits under Chapter 329-23 408. 329-24 (15) "Designated doctor" means a doctor appointed by 329-25 mutual agreement of the parties or by the commission to recommend a 329-26 resolution of a dispute as to the medical condition of an injured 329-27 employee. 330-1 (16) "Disability" means the inability because of a 330-2 compensable injury to obtain and retain employment at wages 330-3 equivalent to the preinjury wage. 330-4 (17) "Doctor" means a doctor of medicine, osteopathic 330-5 medicine, optometry, dentistry, podiatry, or chiropractic who is 330-6 licensed and authorized to practice. 330-7 (18) "Employer" means, unless otherwise specified, a 330-8 person who makes a contract of hire, employs one or more employees, 330-9 and has workers' compensation insurance coverage. The term 330-10 includes a governmental entity that self-insures, either 330-11 individually or collectively. 330-12 (19) "Health care" includes all reasonable and 330-13 necessary medical aid, medical examinations, medical treatments, 330-14 medical diagnoses, medical evaluations, and medical services. The 330-15 term does not include vocational rehabilitation. The term 330-16 includes: 330-17 (A) medical, surgical, chiropractic, podiatric, 330-18 optometric, dental, nursing, and physical therapy services provided 330-19 by or at the direction of a doctor; 330-20 (B) physical rehabilitation services performed 330-21 by a licensed occupational therapist provided by or at the 330-22 direction of a doctor; 330-23 (C) psychological services prescribed by a 330-24 doctor; 330-25 (D) the services of a hospital or other health 330-26 care facility; 330-27 (E) a prescription drug, medicine, or other 331-1 remedy; and 331-2 (F) a medical or surgical supply, appliance, 331-3 brace, artificial member, or prosthesis, including training in the 331-4 use of the appliance, brace, member, or prosthesis. 331-5 (20) "Health care facility" means a hospital, 331-6 emergency clinic, outpatient clinic, or other facility providing 331-7 health care. 331-8 (21) "Health care practitioner" means: 331-9 (A) an individual who is licensed to provide or 331-10 render and provides or renders health care; or 331-11 (B) a nonlicensed individual who provides or 331-12 renders health care under the direction or supervision of a doctor. 331-13 (22) "Health care provider" means a health care 331-14 facility or health care practitioner. 331-15 (23) "Impairment" means any anatomic or functional 331-16 abnormality or loss existing after maximum medical improvement that 331-17 results from a compensable injury and is reasonably presumed to be 331-18 permanent. 331-19 (24) "Impairment rating" means the percentage of 331-20 permanent impairment of the whole body resulting from a compensable 331-21 injury. 331-22 (25) "Income benefit" means a payment made to an 331-23 employee for a compensable injury. The term does not include a 331-24 medical benefit, death benefit, or burial benefit. 331-25 (26) "Injury" means damage or harm to the physical 331-26 structure of the body and a disease or infection naturally 331-27 resulting from the damage or harm. The term includes an 332-1 occupational disease. 332-2 (27) "Insurance carrier" means: 332-3 (A) an insurance company; 332-4 (B) a certified self-insurer for workers' 332-5 compensation insurance; or 332-6 (C) a governmental entity that self-insures, 332-7 either individually or collectively. 332-8 (28) "Insurance company" means a person authorized and 332-9 admitted by the Texas Department of Insurance to do insurance 332-10 business in this state under a certificate of authority that 332-11 includes authorization to write workers' compensation insurance. 332-12 (29) "Legal beneficiary" means a person entitled to 332-13 receive a death benefit under this subtitle. 332-14 (30) "Maximum medical improvement" means the earlier 332-15 of: 332-16 (A) the earliest date after which, based on 332-17 reasonable medical probability, further material recovery from or 332-18 lasting improvement to an injury can no longer reasonably be 332-19 anticipated; or 332-20 (B) the expiration of 104 weeks from the date on 332-21 which income benefits begin to accrue. 332-22 (31) "Medical benefit" means payment for health care 332-23 reasonably required by the nature of a compensable injury and 332-24 intended to: 332-25 (A) cure or relieve the effects naturally 332-26 resulting from the compensable injury, including reasonable 332-27 expenses incurred by the employee for necessary treatment to cure 333-1 and relieve the employee from the effects of an occupational 333-2 disease before and after the employee knew or should have known the 333-3 nature of the disability and its relationship to the employment; 333-4 (B) promote recovery; or 333-5 (C) enhance the ability of the employee to 333-6 return to or retain employment. 333-7 (32) "Objective" means independently verifiable or 333-8 confirmable results that are based on recognized laboratory or 333-9 diagnostic tests, or signs confirmable by physical examination. 333-10 (33) "Objective clinical or laboratory finding" means 333-11 a medical finding of impairment resulting from a compensable 333-12 injury, based on competent objective medical evidence, that is 333-13 independently confirmable by a doctor, including a designated 333-14 doctor, without reliance on the subjective symptoms perceived by 333-15 the employee. 333-16 (34) "Occupational disease" means a disease arising 333-17 out of and in the course of employment that causes damage or harm 333-18 to the physical structure of the body, including a repetitive 333-19 trauma injury. The term includes a disease or infection that 333-20 naturally results from the work-related disease. The term does not 333-21 include an ordinary disease of life to which the general public is 333-22 exposed outside of employment, unless that disease is an incident 333-23 to a compensable injury or occupational disease. 333-24 (35) "Penalty" means a fine established by this 333-25 subtitle. 333-26 (36) "Repetitive trauma injury" means damage or harm 333-27 to the physical structure of the body occurring as the result of 334-1 repetitious, physically traumatic activities that occur over time 334-2 and arise out of and in the course and scope of employment. 334-3 (37) "Representative" means a person, including an 334-4 attorney, authorized by the commission to assist or represent an 334-5 employee, a person claiming a death benefit, or an insurance 334-6 carrier in a matter arising under this subtitle that relates to the 334-7 payment of compensation. 334-8 (38) "Research center" means the Texas Workers' 334-9 Compensation Research Center established under Chapter 404. 334-10 (39) "Sanction" means a penalty or other punitive 334-11 action or remedy imposed by the commission on an insurance carrier, 334-12 representative, employee, employer, or health care provider for an 334-13 act or omission in violation of this subtitle or a rule or order of 334-14 the commission. 334-15 (40) "Settlement" means a final resolution of all the 334-16 issues in a workers' compensation claim that are permitted to be 334-17 resolved under the terms of this subtitle. 334-18 (41) "Subjective" means perceivable only by an 334-19 employee and not independently verifiable or confirmable by 334-20 recognized laboratory or diagnostic tests or signs observable by 334-21 physical examination. 334-22 (42) "Treating doctor" means the doctor who is 334-23 primarily responsible for the employee's health care for an injury. 334-24 (43) "Wages" includes all forms of remuneration 334-25 payable for a given period to an employee for personal services. 334-26 The term includes the market value of board, lodging, laundry, 334-27 fuel, and any other advantage that can be estimated in money that 335-1 the employee receives from the employer as part of the employee's 335-2 remuneration. 335-3 (44) "Workers' compensation insurance coverage" means: 335-4 (A) an approved insurance policy to secure the 335-5 payment of compensation; 335-6 (B) coverage to secure the payment of 335-7 compensation through self-insurance as provided by this subtitle; 335-8 or 335-9 (C) coverage provided by a governmental entity 335-10 to secure the payment of compensation. (V.A.C.S. Arts. 8308-1.03 335-11 (1-16, 17 (part), 19-29, 31-37, 39-43, 45-48).) 335-12 Sec. 401.012. DEFINITION OF EMPLOYEE. (a) In this 335-13 subtitle, "employee" means each person in the service of another 335-14 under a contract of hire, whether express or implied, or oral or 335-15 written. 335-16 (b) The term "employee" includes: 335-17 (1) an employee employed in the usual course and scope 335-18 of the employer's business who is directed by the employer 335-19 temporarily to perform services outside the usual course and scope 335-20 of the employer's business; and 335-21 (2) a person, other than an independent contractor or 335-22 the employee of an independent contractor, who is engaged in 335-23 construction, remodeling, or repair work for the employer at the 335-24 premises of the employer. 335-25 (c) The term "employee" does not include: 335-26 (1) a master of or a seaman on a vessel engaged in 335-27 interstate or foreign commerce; or 336-1 (2) a person whose employment is not in the usual 336-2 course and scope of the employer's business. 336-3 (d) A person who is an employee for the purposes of this 336-4 subtitle and engaged in work that otherwise may be legally 336-5 performed is an employee despite: 336-6 (1) a license, permit, or certificate violation 336-7 arising under state law or municipal ordinance; or 336-8 (2) a violation of a law regulating wages, hours, or 336-9 work on Sunday. 336-10 (e) This section may not be construed to relieve from fine 336-11 or imprisonment any individual, firm, or corporation employing or 336-12 performing work or a service prohibited by a statute of this state 336-13 or a municipal ordinance. (V.A.C.S. Art. 8308-1.03(18).) 336-14 Sec. 401.013. DEFINITION OF INTOXICATION. (a) In this 336-15 subtitle, "intoxication" means the state of: 336-16 (1) having an alcohol concentration as defined by 336-17 Article 6701l-1, Revised Statutes, of 0.10 or more; or 336-18 (2) not having the normal use of mental or physical 336-19 faculties resulting from the voluntary introduction into the body 336-20 of: 336-21 (A) an alcoholic beverage, as defined by Section 336-22 1.04, Alcoholic Beverage Code; 336-23 (B) a controlled substance or controlled 336-24 substance analogue, as defined by Section 481.002, Health and 336-25 Safety Code; 336-26 (C) a dangerous drug, as defined by Section 336-27 483.001, Health and Safety Code; 337-1 (D) an abusable glue or aerosol paint, as 337-2 defined by Section 485.001, Health and Safety Code; or 337-3 (E) any similar substance, the use of which is 337-4 regulated under state law. 337-5 (b) The term "intoxication" does not include the loss of 337-6 normal use of mental or physical faculties resulting from the 337-7 introduction into the body of a substance: 337-8 (1) taken under and in accordance with a prescription 337-9 written for the employee by the employee's doctor; or 337-10 (2) listed under Subsection (a) by inhalation or 337-11 absorption incidental to the employee's work. (V.A.C.S. Art. 337-12 8308-1.03(30).) 337-13 (Sections 401.014-401.020 reserved for expansion) 337-14 SUBCHAPTER C. MISCELLANEOUS PROVISIONS 337-15 Sec. 401.021. APPLICATION OF OTHER ACTS. Except as 337-16 otherwise provided by this subtitle: 337-17 (1) a proceeding, hearing, judicial review, or 337-18 enforcement of a commission order, decision, or rule is governed by 337-19 Sections 1 through 12, other than Sections 4(a)(3) and 4(b), and by 337-20 Sections 13, 14, 14a, 15, 17, 19, and 19A, Administrative Procedure 337-21 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil 337-22 Statutes); 337-23 (2) the open meetings law, Chapter 271, Acts of the 337-24 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's 337-25 Texas Civil Statutes), applies to a proceeding under this subtitle, 337-26 other than: 337-27 (A) a benefit review conference; 338-1 (B) a contested case hearing; 338-2 (C) an appeals panel proceeding; 338-3 (D) arbitration; or 338-4 (E) another proceeding involving a determination 338-5 on a workers' compensation claim; and 338-6 (3) the open records law, Chapter 424, Acts of the 338-7 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 338-8 Texas Civil Statutes), applies to a record of the commission or the 338-9 research center. (V.A.C.S. Art. 8308-1.02(a).) 338-10 Sec. 401.022. DISCRIMINATION PROHIBITED. (a) This subtitle 338-11 may not be applied to discriminate because of race, sex, national 338-12 origin, or religion. 338-13 (b) This section does not prohibit consideration of an 338-14 anatomical difference in application of the impairment guidelines 338-15 under Chapter 408 in rating an injury or a disease such as, but not 338-16 limited to, breast cancer or an inguinal hernia. If an impairment 338-17 rating assigns different values to the same injury for males and 338-18 females, the higher value shall be applied. (V.A.C.S. Art. 338-19 8308-1.021.) 338-20 Sec. 401.023. INTEREST OR DISCOUNT RATE. (a) Interest or a 338-21 discount under this subtitle shall be computed at the rate provided 338-22 by this section. 338-23 (b) The commission shall compute and publish the interest 338-24 and discount rate quarterly, using the auction rate quoted on a 338-25 discount basis for the 52-week treasury bills issued by the United 338-26 States government, as published by the Federal Reserve Board on the 338-27 date nearest to the 15th day preceding the first day of the 339-1 calendar quarter for which the rate is to be effective. For this 339-2 purpose, calendar quarters begin January 1, April 1, July 1, and 339-3 October 1. (V.A.C.S. Art. 8308-1.04.) 339-4 CHAPTER 402. TEXAS WORKERS' COMPENSATION COMMISSION 339-5 SUBCHAPTER A. ORGANIZATION 339-6 Sec. 402.001. MEMBERSHIP REQUIREMENTS 339-7 Sec. 402.002. TERMS; VACANCY 339-8 Sec. 402.003. EFFECT OF LOBBYING ACTIVITY 339-9 Sec. 402.004. VOTING REQUIREMENTS 339-10 Sec. 402.005. REMOVAL OF COMMISSION MEMBERS 339-11 Sec. 402.006. PROHIBITED GIFTS; ADMINISTRATIVE VIOLATION 339-12 Sec. 402.007. MEETINGS 339-13 Sec. 402.008. CHAIRMAN 339-14 Sec. 402.009. LEAVE OF ABSENCE 339-15 Sec. 402.010. CIVIL LIABILITY OF MEMBER 339-16 Sec. 402.011. REIMBURSEMENT 339-17 (Sections 402.012-402.020 reserved for expansion) 339-18 SUBCHAPTER B. ADMINISTRATION 339-19 Sec. 402.021. COMMISSION DIVISIONS 339-20 Sec. 402.022. PUBLIC INTEREST INFORMATION 339-21 Sec. 402.023. COMPLAINT INFORMATION 339-22 Sec. 402.024. PUBLIC PARTICIPATION 339-23 Sec. 402.025. AUDIT 339-24 (Sections 402.026-402.040 reserved for expansion) 339-25 SUBCHAPTER C. EXECUTIVE DIRECTOR AND PERSONNEL 339-26 Sec. 402.041. EXECUTIVE DIRECTOR 339-27 Sec. 402.042. GENERAL POWERS AND DUTIES OF EXECUTIVE 340-1 DIRECTOR 340-2 Sec. 402.043. ADMINISTRATIVE ASSISTANTS 340-3 Sec. 402.044. CAREER LADDER; ANNUAL PERFORMANCE 340-4 EVALUATIONS 340-5 Sec. 402.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY 340-6 STATEMENT 340-7 (Sections 402.046-402.060 reserved for expansion) 340-8 SUBCHAPTER D. GENERAL POWERS AND DUTIES OF COMMISSION 340-9 Sec. 402.061. ADOPTION OF RULES 340-10 Sec. 402.062. ACCEPTANCE OF GIFTS, GRANTS, AND DONATIONS 340-11 Sec. 402.063. APPOINTMENT OF EXECUTIVE DIRECTOR 340-12 Sec. 402.064. FEES 340-13 Sec. 402.065. EMPLOYMENT OF COUNSEL 340-14 Sec. 402.066. RECOMMENDATIONS TO LEGISLATURE 340-15 Sec. 402.067. ADVISORY COMMITTEES 340-16 Sec. 402.068. DELEGATION OF RIGHTS AND DUTIES PROHIBITED 340-17 Sec. 402.069. QUALIFICATIONS AND STANDARDS OF CONDUCT 340-18 INFORMATION 340-19 Sec. 402.070. ANNUAL REPORT 340-20 Sec. 402.071. REPRESENTATIVES 340-21 Sec. 402.072. SANCTIONS 340-22 (Sections 402.073-402.080 reserved for expansion) 340-23 SUBCHAPTER E. RECORDS AND EMPLOYEE INFORMATION 340-24 Sec. 402.081. COMMISSION RECORDS 340-25 Sec. 402.082. INJURY INFORMATION MAINTAINED BY COMMISSION 340-26 Sec. 402.083. CONFIDENTIALITY OF INJURY INFORMATION 340-27 Sec. 402.084. RECORD CHECK; RELEASE OF INFORMATION 341-1 Sec. 402.085. EXCEPTIONS TO CONFIDENTIALITY 341-2 Sec. 402.086. TRANSFER OF CONFIDENTIALITY 341-3 Sec. 402.087. INFORMATION AVAILABLE TO PROSPECTIVE 341-4 EMPLOYERS 341-5 Sec. 402.088. REPORT OF PRIOR INJURY 341-6 Sec. 402.089. FAILURE TO FILE AUTHORIZATION; ADMINISTRATIVE 341-7 VIOLATION 341-8 Sec. 402.090. STATISTICAL INFORMATION 341-9 Sec. 402.091. FAILURE TO MAINTAIN CONFIDENTIALITY; 341-10 OFFENSE; PENALTY 341-11 CHAPTER 402. TEXAS WORKERS' COMPENSATION COMMISSION 341-12 SUBCHAPTER A. ORGANIZATION 341-13 Sec. 402.001. MEMBERSHIP REQUIREMENTS. (a) The Texas 341-14 Workers' Compensation Commission is composed of six members 341-15 appointed by the governor with the advice and consent of the 341-16 senate. 341-17 (b) Appointments to the commission shall be made without 341-18 regard to the race, color, disability, sex, religion, age, or 341-19 national origin of the appointee. Section 401.011(16) does not 341-20 apply to the use of the term "disability" in this subsection. 341-21 (c) Three members of the commission must be employers of 341-22 labor and three members of the commission must be wage earners. 341-23 (d) In making appointments to the commission, the governor 341-24 shall attempt to reflect the social, geographic, and economic 341-25 diversity of the state. To ensure balanced representation, the 341-26 governor may consider: 341-27 (1) the geographic location of a prospective 342-1 appointee's domicile; 342-2 (2) the prospective appointee's experience as an 342-3 employer or wage earner; 342-4 (3) the number of employees employed by a prospective 342-5 member who would represent employers; and 342-6 (4) the type of work performed by a prospective member 342-7 who would represent wage earners. 342-8 (e) The governor shall consider the factors listed in 342-9 Subsection (d) in appointing a member to fill a vacancy on the 342-10 commission. 342-11 (f) In making an appointment to the commission, the governor 342-12 shall consider recommendations made by groups that represent 342-13 employers or wage earners. (V.A.C.S. Arts. 8308-2.01(b), (c), (d); 342-14 New.) 342-15 Sec. 402.002. TERMS; VACANCY. (a) Members of the 342-16 commission hold office for staggered six-year terms, with the terms 342-17 of one member representing employers and one member representing 342-18 wage earners expiring on February 1 of each odd-numbered year. 342-19 (b) If a vacancy occurs during a term, the governor shall 342-20 fill the vacancy for the unexpired term. The replacement must be 342-21 from the group represented by the member being replaced. (V.A.C.S. 342-22 Arts. 8308-2.02(a), (c).) 342-23 Sec. 402.003. EFFECT OF LOBBYING ACTIVITY. A member of the 342-24 commission may not be a lobbyist required to be registered under 342-25 Chapter 305, Government Code, if the primary purpose of the 342-26 person's employment is to influence the passage of legislation. 342-27 (V.A.C.S. Art. 8308-2.01(f).) 343-1 Sec. 402.004. VOTING REQUIREMENTS. (a) The commission may 343-2 take action only by a majority vote of its membership. 343-3 (b) Decisions regarding the employment of an executive 343-4 director require the affirmative vote of at least two commissioners 343-5 representing employers and two commissioners representing wage 343-6 earners. (V.A.C.S. Art. 8308-2.04.) 343-7 Sec. 402.005. REMOVAL OF COMMISSION MEMBERS. (a) It is a 343-8 ground for removal from the commission that a member: 343-9 (1) does not have at the time of appointment the 343-10 qualifications required for appointment to the commission; 343-11 (2) does not maintain during service on the commission 343-12 the qualifications required for appointment to the commission; 343-13 (3) cannot discharge because of illness or incapacity 343-14 the member's duties for a substantial part of the term for which 343-15 the member is appointed; or 343-16 (4) is absent from more than half of the regularly 343-17 scheduled commission meetings that the member is eligible to attend 343-18 during a calendar year unless the absence is excused by a majority 343-19 vote of the commission. 343-20 (b) The validity of an action of the commission is not 343-21 affected by the fact that it is taken when a ground for removal of 343-22 a commission member exists. 343-23 (c) If the executive director of the commission knows that a 343-24 potential ground for removal exists, the executive director shall 343-25 notify the chairman of the commission of the ground. The chairman 343-26 shall then notify the governor that a potential ground for removal 343-27 exists. (V.A.C.S. Art. 8308-2.05.) 344-1 Sec. 402.006. PROHIBITED GIFTS; ADMINISTRATIVE VIOLATION. 344-2 (a) A member or employee of the commission may not accept a gift, 344-3 gratuity, or entertainment from a person having an interest in a 344-4 matter or proceeding pending before the commission. 344-5 (b) A violation of Subsection (a) is a Class A 344-6 administrative violation and constitutes a ground for removal from 344-7 office or termination of employment. (V.A.C.S. Art. 8308-2.01(g).) 344-8 Sec. 402.007. MEETINGS. The commission shall meet at least 344-9 once in each calendar quarter and may meet at other times at the 344-10 call of the chairman or as provided by the rules of the commission. 344-11 (V.A.C.S. Art. 8308-2.07.) 344-12 Sec. 402.008. CHAIRMAN. (a) The commission shall elect one 344-13 of its members to serve as chairman for a two-year term expiring 344-14 February 1 of each odd-numbered year. 344-15 (b) The chairman may vote on all matters before the 344-16 commission. (V.A.C.S. Arts. 8308-2.03(a) (part), (b).) 344-17 Sec. 402.009. LEAVE OF ABSENCE. (a) An employer may not 344-18 terminate the employment of an employee who is appointed as a 344-19 member of the commission because of the exercise by the employee of 344-20 duties required as a commission member. 344-21 (b) A member of the commission is entitled to a leave of 344-22 absence from employment for the time required to perform commission 344-23 duties. During the leave of absence, the member may not be 344-24 subjected to loss of time, vacation time, or other benefits of 344-25 employment, other than salary. (V.A.C.S. Art. 8308-2.08.) 344-26 Sec. 402.010. CIVIL LIABILITY OF MEMBER. A member of the 344-27 commission is not liable in a civil action for an act performed in 345-1 good faith in the execution of duties as a commission member. 345-2 (V.A.C.S. Art. 8308-2.01(e).) 345-3 Sec. 402.011. REIMBURSEMENT. (a) A member of the 345-4 commission is entitled to reimbursement for actual and necessary 345-5 expenses incurred in performing functions as a member of the 345-6 commission. Reimbursement under this subsection may not exceed a 345-7 limit established in the General Appropriations Act. 345-8 (b) A member is entitled to reimbursement for actual lost 345-9 wages, if any, due to attendance at commission meetings. 345-10 Reimbursement under this subsection may not exceed $100 a day and 345-11 $12,000 a year. (V.A.C.S. Art. 8308-2.06.) 345-12 (Sections 402.012-402.020 reserved for expansion) 345-13 SUBCHAPTER B. ADMINISTRATION 345-14 Sec. 402.021. COMMISSION DIVISIONS. (a) The commission 345-15 shall have: 345-16 (1) a division of workers' health and safety; 345-17 (2) a division of medical review; 345-18 (3) a division of compliance and practices; 345-19 (4) a division of hearings; and 345-20 (5) a division of risk management. 345-21 (b) In addition to the divisions listed by Subsection (a), 345-22 the executive director, with the approval of the commission, may 345-23 establish divisions within the commission for effective 345-24 administration and performance of commission functions. The 345-25 executive director may allocate and reallocate functions among the 345-26 divisions. 345-27 (c) The executive director shall appoint the directors of 346-1 the divisions of the commission. The directors serve at the 346-2 pleasure of the executive director. (V.A.C.S. Art. 8308-2.12.) 346-3 Sec. 402.022. PUBLIC INTEREST INFORMATION. (a) The 346-4 executive director shall prepare information of public interest 346-5 describing the functions of the commission and the procedures by 346-6 which complaints are filed with and resolved by the commission. 346-7 (b) The executive director shall make the information 346-8 available to the public and appropriate state agencies. (V.A.C.S. 346-9 Art. 8308-2.13(a).) 346-10 Sec. 402.023. COMPLAINT INFORMATION. (a) The executive 346-11 director shall keep an information file about each written 346-12 complaint filed with the commission that is unrelated to a specific 346-13 workers' compensation claim. 346-14 (b) The commission shall notify the parties to a complaint 346-15 that is unrelated to a specific workers' compensation claim of the 346-16 status of the complaint at least quarterly until final disposition 346-17 of the complaint unless notice would jeopardize an undercover 346-18 investigation. (V.A.C.S. Art. 8308-2.13(b).) 346-19 Sec. 402.024. PUBLIC PARTICIPATION. (a) The commission 346-20 shall develop and implement policies that provide the public with a 346-21 reasonable opportunity to appear before the commission and to speak 346-22 on issues under the general jurisdiction of the commission. 346-23 (b) The executive director shall prepare and maintain a 346-24 written plan that describes how a person who does not speak English 346-25 or who has a physical, mental, or developmental disability may be 346-26 provided reasonable access to workers' compensation proceedings. 346-27 (c) Section 401.011(16) does not apply to the use of 347-1 "disability" in Subsection (b). (V.A.C.S. Arts. 8308-2.13(c), (d); 347-2 New.) 347-3 Sec. 402.025. AUDIT. The financial transactions of the 347-4 commission are subject to audit by the state auditor in accordance 347-5 with Chapter 321, Government Code. (V.A.C.S. Art. 8308-2.27.) 347-6 (Sections 402.026-402.040 reserved for expansion) 347-7 SUBCHAPTER C. EXECUTIVE DIRECTOR AND PERSONNEL 347-8 Sec. 402.041. EXECUTIVE DIRECTOR. (a) The executive 347-9 director is the executive officer and administrative head of the 347-10 commission. The executive director exercises all rights, powers, 347-11 and duties imposed or conferred by law on the commission, except 347-12 for rulemaking and other rights, powers, and duties specifically 347-13 reserved under this subtitle to members of the commission. 347-14 (b) The executive director shall hire personnel as necessary 347-15 to administer this subtitle. 347-16 (c) The executive director serves at the pleasure of the 347-17 commission. (V.A.C.S. Art. 8308-2.10.) 347-18 Sec. 402.042. GENERAL POWERS AND DUTIES OF EXECUTIVE 347-19 DIRECTOR. (a) The executive director shall conduct the day-to-day 347-20 operations of the commission in accordance with policies 347-21 established by the commission and otherwise implement commission 347-22 policy. 347-23 (b) The executive director may: 347-24 (1) investigate misconduct; 347-25 (2) hold hearings; 347-26 (3) issue subpoenas to compel the attendance of 347-27 witnesses and the production of documents; 348-1 (4) administer oaths; 348-2 (5) take testimony directly or by deposition or 348-3 interrogatory; 348-4 (6) assess and enforce penalties established under 348-5 this subtitle; 348-6 (7) enter appropriate orders as authorized by this 348-7 subtitle; 348-8 (8) correct clerical errors in the entry of orders; 348-9 (9) institute an action in the commission's name to 348-10 enjoin the violation of this subtitle; 348-11 (10) initiate an action under Section 410.254 to 348-12 intervene in a judicial proceeding; 348-13 (11) prescribe the form, manner, and procedure for 348-14 transmission of information to the commission; and 348-15 (12) delegate all powers and duties as necessary. 348-16 (c) The executive director is the agent for service of 348-17 process on out-of-state employers. (V.A.C.S. Arts. 8308-2.11(a), 348-18 (b), (c), (d), (e), (f), (h).) 348-19 Sec. 402.043. ADMINISTRATIVE ASSISTANTS. The executive 348-20 director shall employ and supervise: 348-21 (1) one person representing wage earners permanently 348-22 assigned to act as administrative assistant to the members of the 348-23 commission who represent wage earners; and 348-24 (2) one person representing employers permanently 348-25 assigned to act as administrative assistant to the members of the 348-26 commission who represent employers. (V.A.C.S. Art. 8308-2.091.) 348-27 Sec. 402.044. CAREER LADDER; ANNUAL PERFORMANCE EVALUATIONS. 349-1 (a) The executive director shall develop an intra-agency career 349-2 ladder program. The program shall require intra-agency postings of 349-3 all nonentry level positions concurrently with any public posting. 349-4 (b) The executive director shall develop a system of annual 349-5 performance evaluations. All merit pay for commission employees 349-6 must be based on the system established under this subsection. 349-7 (V.A.C.S. Arts. 8308-2.11(i), (j).) 349-8 Sec. 402.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT. 349-9 (a) The executive director shall prepare and maintain a written 349-10 policy statement approved by the commission to ensure 349-11 implementation of a program of equal employment opportunity under 349-12 which all personnel transactions are made without regard to race, 349-13 color, disability, sex, religion, age, or national origin. The 349-14 policy statement must include: 349-15 (1) personnel policies, including policies related to 349-16 recruitment, evaluation, selection, appointment, training, and 349-17 promotion of personnel; 349-18 (2) a comprehensive analysis that meets federal and 349-19 state guidelines of the commission's work force; 349-20 (3) procedures by which a determination can be made of 349-21 significant underuse in the commission's work force of all persons 349-22 for whom federal or state guidelines encourage a more equitable 349-23 balance; and 349-24 (4) reasonable methods to address those areas of 349-25 significant underuse appropriately. 349-26 (b) A policy statement prepared under this section must: 349-27 (1) cover an annual period; 350-1 (2) be updated at least annually; and 350-2 (3) be filed with the governor's office. 350-3 (c) The governor's office shall deliver a biennial report to 350-4 the legislature based on the information received under this 350-5 section. The report may be made separately or as part of other 350-6 biennial reports made to the legislature. (V.A.C.S. 350-7 Arts. 8308-2.11(k), (l), (m).) 350-8 (Sections 402.046-402.060 reserved for expansion) 350-9 SUBCHAPTER D. GENERAL POWERS AND DUTIES OF COMMISSION 350-10 Sec. 402.061. ADOPTION OF RULES. The commission shall adopt 350-11 rules as necessary for the implementation and enforcement of this 350-12 subtitle. (V.A.C.S. Art. 8308-2.09(a).) 350-13 Sec. 402.062. ACCEPTANCE OF GIFTS, GRANTS, AND DONATIONS. 350-14 The commission may accept gifts, grants, or donations as provided 350-15 by rules adopted by the commission. (V.A.C.S. Art. 8308-2.09(d).) 350-16 Sec. 402.063. APPOINTMENT OF EXECUTIVE DIRECTOR. The 350-17 commission shall appoint the executive director of the commission. 350-18 (V.A.C.S. Art. 8308-2.09(g).) 350-19 Sec. 402.064. FEES. In addition to fees established by this 350-20 subtitle, the commission shall set reasonable fees for services 350-21 provided to persons requesting services from the commission, 350-22 including services provided under Subchapter E. (V.A.C.S. 350-23 Arts. 8308-2.09(h), 8308-2.39.) 350-24 Sec. 402.065. EMPLOYMENT OF COUNSEL. The commission may 350-25 employ counsel to represent the commission in any legal action the 350-26 commission is authorized to initiate. (V.A.C.S. 350-27 Art. 8308-2.09(i).) 351-1 Sec. 402.066. RECOMMENDATIONS TO LEGISLATURE. (a) The 351-2 commission shall consider and recommend to the legislature changes 351-3 to this subtitle. 351-4 (b) The commission shall forward the recommended changes to 351-5 the legislature not later than December 1 of each even-numbered 351-6 year. (V.A.C.S. Art. 8308-2.09(j).) 351-7 Sec. 402.067. ADVISORY COMMITTEES. The commission may 351-8 appoint advisory committees as it considers necessary. (V.A.C.S. 351-9 Art. 8308-2.09(k).) 351-10 Sec. 402.068. DELEGATION OF RIGHTS AND DUTIES PROHIBITED. 351-11 Except as provided by Section 402.065, the commission may not 351-12 delegate rights and duties imposed on it by this subchapter. 351-13 (V.A.C.S. Art. 8308-2.09(l).) 351-14 Sec. 402.069. QUALIFICATIONS AND STANDARDS OF CONDUCT 351-15 INFORMATION. The commission shall provide to its members and 351-16 employees, as often as necessary, information regarding their: 351-17 (1) qualifications for office or employment under this 351-18 subtitle; and 351-19 (2) responsibilities under applicable law relating to 351-20 standards of conduct for state officers or employees. (V.A.C.S. 351-21 Art. 8308-2.09(b).) 351-22 Sec. 402.070. ANNUAL REPORT. (a) The commission shall file 351-23 annually with the governor and the presiding officer of each house 351-24 of the legislature a complete and detailed written report 351-25 accounting for all funds received and disbursed by the commission 351-26 during the preceding fiscal year. 351-27 (b) The report required under this section must be in the 352-1 form and reported in the time provided by the General 352-2 Appropriations Act. (V.A.C.S. Art. 8308-2.09(c).) 352-3 Sec. 402.071. REPRESENTATIVES. (a) The commission shall 352-4 establish qualifications for a representative and shall adopt rules 352-5 establishing procedures for authorization of representatives. 352-6 (b) A representative may receive a fee for providing 352-7 representation under this subtitle only if the representative is: 352-8 (1) an adjuster representing an insurance carrier; or 352-9 (2) licensed to practice law. (V.A.C.S. 352-10 Art. 8308-2.09(e).) 352-11 Sec. 402.072. SANCTIONS. Only the commission may impose: 352-12 (1) a sanction that deprives a person of the right to 352-13 practice before the commission or of the right to receive 352-14 remuneration under this subtitle for a period exceeding 30 days; or 352-15 (2) another sanction suspending for more than 30 days 352-16 or revoking a license, certification, or permit required for 352-17 practice in the field of workers' compensation. (V.A.C.S. 352-18 Art. 8308-2.09(f).) 352-19 (Sections 402.073-402.080 reserved for expansion) 352-20 SUBCHAPTER E. RECORDS AND EMPLOYEE INFORMATION 352-21 Sec. 402.081. COMMISSION RECORDS. (a) The executive 352-22 director is the custodian of the commission's records and shall 352-23 perform the duties of a custodian required by law, including 352-24 providing copies and the certification of records. 352-25 (b) The executive director may destroy a record maintained 352-26 by the commission pertaining to an injury after the 50th 352-27 anniversary of the date of the injury to which the record refers 353-1 unless benefits are being paid on the claim on that date. 353-2 (c) A record maintained by the commission may be preserved 353-3 in any format permitted by Chapter 441, Government Code, and rules 353-4 adopted by the Texas State Library and Archives Commission under 353-5 that chapter. (V.A.C.S. Art. 8308-2.11(g).) 353-6 Sec. 402.082. INJURY INFORMATION MAINTAINED BY COMMISSION. 353-7 The commission shall maintain information on every compensable 353-8 injury as to the: 353-9 (1) race, ethnicity, and sex of the claimant; 353-10 (2) classification of the injury; 353-11 (3) amount of wages earned by the claimant before the 353-12 injury; and 353-13 (4) amount of compensation received by the claimant. 353-14 (V.A.C.S. Art. 8308-2.13(e).) 353-15 Sec. 402.083. CONFIDENTIALITY OF INJURY INFORMATION. (a) 353-16 Information in or derived from a claim file regarding an employee 353-17 is confidential and may not be disclosed by the commission except 353-18 as provided by this subtitle. 353-19 (b) Information concerning an employee who has been finally 353-20 adjudicated of wrongfully obtaining payment under Section 415.008 353-21 of this code or Section 32.51, Penal Code, is not confidential. 353-22 (V.A.C.S. Arts. 8308-2.31(a), (b).) 353-23 Sec. 402.084. RECORD CHECK; RELEASE OF INFORMATION. (a) 353-24 The commission shall perform and release a record check on an 353-25 employee, including current or prior injury information, to the 353-26 parties listed in Subsection (b) if: 353-27 (1) the claim is: 354-1 (A) open or pending before the commission; 354-2 (B) on appeal to a court of competent 354-3 jurisdiction; or 354-4 (C) the subject of a subsequent suit in which 354-5 the insurance carrier or the subsequent injury fund is subrogated 354-6 to the rights of the named claimant; and 354-7 (2) the requesting party requests the release on a 354-8 form prescribed by the commission for this purpose and provides all 354-9 required information. 354-10 (b) Information on a claim may be released as provided by 354-11 Subsection (a) to: 354-12 (1) the employee or the employee's legal beneficiary; 354-13 (2) the employee's or the legal beneficiary's 354-14 representative; 354-15 (3) the employer at the time of injury; 354-16 (4) the insurance carrier; 354-17 (5) the Texas Certified Self-Insurer Guaranty 354-18 Association established under Subchapter G, Chapter 407, if that 354-19 association has assumed the obligations of an impaired employer; 354-20 (6) the Texas Property and Casualty Insurance Guaranty 354-21 Association, if that association has assumed the obligations of an 354-22 impaired insurance company; or 354-23 (7) a third-party litigant in a lawsuit in which the 354-24 cause of action arises from the incident that gave rise to the 354-25 injury. 354-26 (c) The requirements of Subsection (a)(1) do not apply to a 354-27 request from a third-party litigant described by Subsection (b)(7). 355-1 (V.A.C.S. Arts. 8308-2.31(c), (d).) 355-2 Sec. 402.085. EXCEPTIONS TO CONFIDENTIALITY. (a) The 355-3 commission shall release information on a claim to: 355-4 (1) the Texas Department of Insurance for any 355-5 statutory or regulatory purpose; 355-6 (2) a legislative committee for legislative purposes; 355-7 (3) a state or federal elected official requested in 355-8 writing to provide assistance by a constituent who qualifies to 355-9 obtain injury information under Section 402.084(b), if the request 355-10 for assistance is provided to the commission; and 355-11 (4) the research center for research purposes. 355-12 (b) The commission may release information on a claim to a 355-13 governmental agency, political subdivision, or regulatory body to 355-14 use to: 355-15 (1) investigate an allegation of a criminal offense or 355-16 licensing or regulatory violation; 355-17 (2) provide: 355-18 (A) unemployment compensation benefits; 355-19 (B) crime victims compensation benefits; 355-20 (C) vocational rehabilitation services; or 355-21 (D) health care benefits; 355-22 (3) investigate occupational safety or health 355-23 violations; or 355-24 (4) verify income on an application for benefits under 355-25 an income-based state or federal assistance program. (V.A.C.S. 355-26 Art. 8308-2.32.) 355-27 Sec. 402.086. TRANSFER OF CONFIDENTIALITY. (a) Information 356-1 relating to a claim that is confidential under this subtitle 356-2 remains confidential when released to any person, except when used 356-3 in court for the purposes of an appeal. 356-4 (b) This section does not prohibit an employer from 356-5 releasing information about a former employee to another employer 356-6 with whom the employee has applied for employment, if that 356-7 information was lawfully acquired by the employer releasing the 356-8 information. (V.A.C.S. Art. 8308-2.36.) 356-9 Sec. 402.087. INFORMATION AVAILABLE TO PROSPECTIVE 356-10 EMPLOYERS. (a) A prospective employer who has workers' 356-11 compensation insurance coverage and who complies with this 356-12 subchapter is entitled to obtain information on the prior injuries 356-13 of an applicant for employment if the employer obtains written 356-14 authorization from the applicant before making the request. 356-15 (b) The employer must make the request by telephone or file 356-16 the request in writing not later than the 14th day after the date 356-17 on which the application for employment is made. 356-18 (c) The request must include the applicant's name, address, 356-19 and social security number. 356-20 (d) If the request is made in writing, the authorization 356-21 must be filed simultaneously. If the request is made by telephone, 356-22 the employer must file the authorization not later than the 10th 356-23 day after the date on which the request is made. (V.A.C.S. Art. 356-24 8308-2.33.) 356-25 Sec. 402.088. REPORT OF PRIOR INJURY. (a) On receipt of a 356-26 valid request made under and complying with Section 402.087, the 356-27 commission shall review its records. 357-1 (b) If the commission finds that the applicant has made two 357-2 or more general injury claims in the preceding five years, the 357-3 commission shall release the date and description of each injury to 357-4 the employer. 357-5 (c) The information may be released in writing or by 357-6 telephone. 357-7 (d) If the employer requests information on three or more 357-8 applicants at the same time, the commission may refuse to release 357-9 information until it receives the written authorization from each 357-10 applicant. 357-11 (e) In this section, "general injury" means an injury other 357-12 than an injury limited to one or more of the following: 357-13 (1) an injury to a digit, limb, or member; 357-14 (2) an inguinal hernia; or 357-15 (3) vision or hearing loss. (V.A.C.S. Art. 357-16 8308-2.34.) 357-17 Sec. 402.089. FAILURE TO FILE AUTHORIZATION; ADMINISTRATIVE 357-18 VIOLATION. (a) An employer who receives information by telephone 357-19 from the commission under Section 402.088 and who fails to file the 357-20 necessary authorization in accordance with Section 402.087 commits 357-21 a Class C administrative violation. 357-22 (b) Each failure to file an authorization is a separate 357-23 violation. (V.A.C.S. Art. 8308-2.35.) 357-24 Sec. 402.090. STATISTICAL INFORMATION. The commission, the 357-25 research center, or any other governmental agency may prepare and 357-26 release statistical information if the identity of an employee is 357-27 not explicitly or implicitly disclosed. (V.A.C.S. Art. 8308-2.38.) 358-1 Sec. 402.091. FAILURE TO MAINTAIN CONFIDENTIALITY; OFFENSE; 358-2 PENALTY. (a) A person commits an offense if the person knowingly, 358-3 intentionally, or recklessly publishes, discloses, or distributes 358-4 information that is confidential under this subchapter to a person 358-5 not authorized to receive the information directly from the 358-6 commission. 358-7 (b) A person commits an offense if the person knowingly, 358-8 intentionally, or recklessly receives information that is 358-9 confidential under this subchapter and that the person is not 358-10 authorized to receive. 358-11 (c) An offense under this section is a Class A misdemeanor. 358-12 (d) An offense under this section may be prosecuted in a 358-13 court in: 358-14 (1) Travis County; or 358-15 (2) the county where the information was unlawfully 358-16 received, published, disclosed, or distributed. 358-17 (e) A district court in Travis County has jurisdiction to 358-18 enjoin the use, publication, disclosure, or distribution of 358-19 confidential information under this section. (V.A.C.S. Art. 358-20 8308-2.37.) 358-21 CHAPTER 403. COMMISSION FINANCING 358-22 Sec. 403.001. COMMISSION FUNDS 358-23 Sec. 403.002. MAINTENANCE TAXES 358-24 Sec. 403.003. RATE OF ASSESSMENT 358-25 Sec. 403.004. COLLECTION OF TAX AFTER WITHDRAWAL 358-26 FROM BUSINESS 358-27 Sec. 403.005. TAX RATE SURPLUS OR DEFICIT 359-1 Sec. 403.006. SUBSEQUENT INJURY FUND 359-2 Sec. 403.007. FUNDING OF SUBSEQUENT INJURY FUND 359-3 CHAPTER 403. COMMISSION FINANCING 359-4 Sec. 403.001. COMMISSION FUNDS. (a) Except as provided by 359-5 Sections 403.006 and 403.007 or as otherwise provided by law, money 359-6 collected under this subtitle, including administrative penalties 359-7 and advance deposits for purchase of services, shall be deposited 359-8 in the general revenue fund of the state treasury to the credit of 359-9 the commission. 359-10 (b) The money may be spent as authorized by legislative 359-11 appropriation on warrants issued by the comptroller under 359-12 requisitions made by the commission. (V.A.C.S. Art. 8308-2.21.) 359-13 Sec. 403.002. MAINTENANCE TAXES. (a) Each insurance 359-14 carrier, other than a governmental entity, shall pay an annual 359-15 maintenance tax to pay the costs of administering this subtitle. 359-16 (b) The assessment may not exceed an amount equal to two 359-17 percent of the correctly reported gross workers' compensation 359-18 insurance premiums. 359-19 (c) A workers' compensation insurance company is taxed at 359-20 the rate established under Section 403.003. The tax shall be 359-21 collected in the manner provided for collection of other taxes on 359-22 gross premiums from a workers' compensation insurance company as 359-23 provided in Article 5.68, Insurance Code. 359-24 (d) Each certified self-insurer shall pay a fee and 359-25 maintenance taxes as provided by Subchapter F, Chapter 407. 359-26 (V.A.C.S. Arts. 8308-2.22(a), (b).) 359-27 Sec. 403.003. RATE OF ASSESSMENT. (a) The commission shall 360-1 set and certify to the Texas Department of Insurance the rate of 360-2 maintenance tax assessment not later than October 31 of each year, 360-3 taking into account: 360-4 (1) any expenditure projected as necessary for the 360-5 commission to administer this subtitle during the fiscal year for 360-6 which the rate of assessment is set; 360-7 (2) projected employee benefits paid from general 360-8 revenues; 360-9 (3) a surplus or deficit produced by the tax in the 360-10 preceding year; and 360-11 (4) revenue recovered from other sources, including 360-12 reappropriated receipts, grants, payments, fees, gifts, and 360-13 penalties recovered under this subtitle. 360-14 (b) In setting the rate of assessment, the commission may 360-15 not consider revenue or expenditures related to: 360-16 (1) the division of risk management; 360-17 (2) the research center; or 360-18 (3) any other revenue or expenditure excluded from 360-19 consideration by law. (V.A.C.S. Art. 8308-2.23.) 360-20 Sec. 403.004. COLLECTION OF TAX AFTER WITHDRAWAL FROM 360-21 BUSINESS. The insurance commissioner or the executive director of 360-22 the commission immediately shall proceed to collect taxes due under 360-23 this chapter from an insurance carrier that withdraws from business 360-24 in this state, using legal process as necessary. (V.A.C.S. Art. 360-25 8308-2.24.) 360-26 Sec. 403.005. Tax Rate Surplus or Deficit. (a) If the tax 360-27 rate set by the commission for a year does not produce sufficient 361-1 revenue to make all expenditures authorized by legislative 361-2 appropriation, the deficit shall be paid from the general revenue 361-3 fund. 361-4 (b) If the tax rate set by the commission for a year 361-5 produces revenue that exceeds the amount required to make all 361-6 expenditures authorized by the legislature, the excess shall be 361-7 deposited in the general revenue fund to the credit of the 361-8 commission. (V.A.C.S. Art. 8308-2.25.) 361-9 Sec. 403.006. Subsequent Injury Fund. (a) The subsequent 361-10 injury fund is a special fund in the state treasury. 361-11 (b) The subsequent injury fund is liable for the payment of 361-12 compensation as provided by Section 408.162. 361-13 (c) The executive director shall appoint an administrator 361-14 for the subsequent injury fund. (V.A.C.S. Art. 8308-2.14.) 361-15 Sec. 403.007. Funding of Subsequent Injury Fund. (a) If a 361-16 compensable death occurs and no legal beneficiary survives or a 361-17 claim for death benefits is not timely made, the insurance carrier 361-18 shall pay to the commission for deposit to the credit of the 361-19 subsequent injury fund an amount equal to 364 weeks of the death 361-20 benefits otherwise payable. 361-21 (b) The insurance carrier may elect or the commission may 361-22 order that death benefits payable to the fund be commuted on 361-23 written approval of the executive director. The commutation may be 361-24 discounted for present payment at the rate established in Section 361-25 401.023, compounded annually. 361-26 (c) If a claim for death benefits is not filed with the 361-27 commission by a legal beneficiary on or before the first 362-1 anniversary of the date of the death of the employee, it is 362-2 presumed, for purposes of this section only, that no legal 362-3 beneficiary survived the deceased employee. The presumption does 362-4 not apply against a minor beneficiary or an incompetent beneficiary 362-5 for whom a guardian has not been appointed. 362-6 (d) If the insurance carrier makes payment to the subsequent 362-7 injury fund and it is later determined by a final award of the 362-8 commission or the final judgment of a court of competent 362-9 jurisdiction that a legal beneficiary is entitled to the death 362-10 benefits, the commission shall order the fund to reimburse the 362-11 insurance carrier for the amount overpaid to the fund. (V.A.C.S. 362-12 Art. 8308-2.26.) 362-13 CHAPTER 404. TEXAS WORKERS' COMPENSATION RESEARCH CENTER 362-14 Sec. 404.001. DEFINITIONS 362-15 Sec. 404.002. RESEARCH CENTER; GENERAL POWERS AND DUTIES 362-16 Sec. 404.003. RESEARCH CENTER FUNDING; MAINTENANCE TAX 362-17 Sec. 404.004. BOARD OF DIRECTORS 362-18 Sec. 404.005. TERMS; VACANCY 362-19 Sec. 404.006. CHAIRMAN; MEETINGS 362-20 Sec. 404.007. GENERAL POWERS AND DUTIES OF BOARD 362-21 Sec. 404.008. EXECUTIVE DIRECTOR; APPROPRIATIONS REQUEST 362-22 Sec. 404.009. RESEARCH AGENDA 362-23 Sec. 404.010. COORDINATION WITH OTHER STATE AGENCIES; 362-24 CONFIDENTIALITY 362-25 CHAPTER 404. TEXAS WORKERS' COMPENSATION RESEARCH CENTER 362-26 Sec. 404.001. DEFINITIONS. In this chapter: 362-27 (1) "Board" means the board of directors of the Texas 363-1 Workers' Compensation Research Center. 363-2 (2) "Executive director" means the executive director 363-3 of the research center. (New.) 363-4 Sec. 404.002. RESEARCH CENTER; GENERAL POWERS AND DUTIES. 363-5 (a) The Texas Workers' Compensation Research Center is an advisory 363-6 body to the commission. The research center shall be constituted 363-7 and operated in a manner that ensures that its research, findings, 363-8 and conclusions are factual, fair, and unbiased. 363-9 (b) The research center shall conduct professional studies 363-10 and research related to: 363-11 (1) the delivery of benefits; 363-12 (2) litigation and controversy related to workers' 363-13 compensation; 363-14 (3) insurance rates and rate-making procedures; 363-15 (4) rehabilitation and reemployment of injured 363-16 workers; 363-17 (5) workplace health and safety issues; 363-18 (6) the quality and cost of medical benefits; and 363-19 (7) other matters relevant to the cost, quality, and 363-20 operational effectiveness of the workers' compensation system. 363-21 (c) In addition to the studies and research conducted under 363-22 Subsection (b), the research center shall conduct studies and 363-23 research related to drugs in the workplace, giving priority to drug 363-24 abuse in public and private establishments in which drug abuse 363-25 could result in serious consequences to the public. The studies 363-26 and research must include a survey designed to identify future 363-27 needs and current efforts of employers to counteract drug abuse and 364-1 its effects in the workplace. (V.A.C.S. Art. 8308-11.01.) 364-2 Sec. 404.003. RESEARCH CENTER FUNDING; MAINTENANCE TAX. (a) 364-3 The research center is funded through the assessment of a 364-4 maintenance tax collected annually from all insurance carriers 364-5 except governmental entities. 364-6 (b) The commission shall set the rate of the maintenance tax 364-7 based on the expenditures authorized and the receipts anticipated 364-8 in legislative appropriations. The tax rate for insurance 364-9 companies may not exceed one-tenth of one percent of the correctly 364-10 reported gross workers' compensation insurance premiums. The tax 364-11 rate for certified self-insurers may not exceed one-tenth of one 364-12 percent of the total tax base of all certified self-insurers, as 364-13 computed under Section 407.103(b). 364-14 (c) The tax imposed under Subsection (a) is in addition to 364-15 all other taxes imposed on those insurance carriers for workers' 364-16 compensation purposes. 364-17 (d) The tax on insurance companies shall be collected and 364-18 paid in the same manner and at the same time as the maintenance tax 364-19 established for the support of the Texas Department of Insurance 364-20 under Article 5.68, Insurance Code. The tax on certified 364-21 self-insurers shall be collected and paid in the same manner and at 364-22 the same time as the self-insurer maintenance tax collected under 364-23 Section 407.104. 364-24 (e) Amounts received under this section shall be deposited 364-25 in the state treasury to the credit of a special fund to be used 364-26 for the operation of the research center. (V.A.C.S. Arts. 364-27 8308-11.09(a), (b), (c), 8308a.) 365-1 Sec. 404.004. BOARD OF DIRECTORS. (a) The research center 365-2 is governed by a board of directors, composed of: 365-3 (1) a member of the commission, chosen by the 365-4 commission, from the members who are wage earners; 365-5 (2) a member of the commission, chosen by the 365-6 commission, from the members who are employers of labor; 365-7 (3) the public counsel of the office of public 365-8 insurance counsel; and 365-9 (4) six members of the public, two of whom are 365-10 appointed by the speaker of the house of representatives, two of 365-11 whom are appointed by the lieutenant governor, and two of whom are 365-12 appointed by the governor. 365-13 (b) The public members of the board shall be appointed 365-14 without regard to the race, color, disability, sex, religion, age, 365-15 or national origin of the appointee. Appointments are not subject 365-16 to senate confirmation. 365-17 (c) A member of the board is not liable for any act 365-18 performed in good faith in the execution of duties as a board 365-19 member. 365-20 (d) A member of the board may not receive remuneration for 365-21 service on the board but is entitled to reimbursement for actual 365-22 and necessary expenses incurred in performing functions as a board 365-23 member, subject to any limit in the General Appropriations Act. 365-24 (e) Section 401.011(16) does not apply to the use of the 365-25 term "disability" in Subsection (b). (V.A.C.S. Arts. 8308-11.02, 365-26 8308-11.06; New.) 365-27 Sec. 404.005. TERMS; VACANCY. (a) Public members of the 366-1 board serve for staggered four-year terms, with the terms of three 366-2 appointed members expiring February 1 of each odd-numbered year. 366-3 (b) A board member who also serves on the commission or as 366-4 the public counsel of the office of public insurance counsel serves 366-5 a term as determined by the appointing state agency. 366-6 (c) If a vacancy occurs during a term, the appointing 366-7 officer or agency shall appoint a replacement who meets the 366-8 qualifications of the vacated office for the unexpired term. 366-9 (V.A.C.S. Art. 8308-11.04.) 366-10 Sec. 404.006. CHAIRMAN; MEETINGS. (a) The board shall 366-11 elect an appointed member to serve as chairman for a two-year term. 366-12 The term of the chairman expires on February 1 of each 366-13 even-numbered year. The chairman may vote on all matters before 366-14 the board. 366-15 (b) The board shall meet at least once in each calendar 366-16 quarter and may meet at other times at the call of the chairman or 366-17 as provided by board rules. (V.A.C.S. Arts. 8308-11.05, 366-18 8308-11.07.) 366-19 Sec. 404.007. GENERAL POWERS AND DUTIES OF BOARD. (a) The 366-20 board shall: 366-21 (1) approve the research agenda and operating budget 366-22 of the research center; 366-23 (2) report annually in writing to the governor and the 366-24 legislature on the activities conducted by the research center; and 366-25 (3) adopt rules for the operations of the board and 366-26 the research center. 366-27 (b) Through an appropriate use of research staff and 367-1 research contracted with educational institutions or other public 367-2 or private research institutions and workers' compensation experts, 367-3 the board shall ensure: 367-4 (1) the quality of research products; and 367-5 (2) economy in the use of funds. 367-6 (c) The board shall publish and disseminate its studies to 367-7 interested persons and may determine charges for the publications 367-8 as necessary to achieve optimal dissemination. 367-9 (d) The board may: 367-10 (1) delegate powers to the executive director as it 367-11 considers appropriate; 367-12 (2) contract with other persons, including 367-13 institutions of higher education, for conducting studies for the 367-14 research center; 367-15 (3) contract with the commission for a fiscal, 367-16 personnel, or other support function; and 367-17 (4) appoint expert advisory committees to help: 367-18 (A) prepare the research agenda; 367-19 (B) develop requests for research proposals; 367-20 (C) evaluate research proposals; 367-21 (D) technically review research products; and 367-22 (E) achieve other purposes appropriate to the 367-23 purposes of the research center. 367-24 (e) The board may take action by majority vote when a quorum 367-25 is present. (V.A.C.S. Arts. 8308-11.03(a) (part), (b), (c), (d), 367-26 (e).) 367-27 Sec. 404.008. EXECUTIVE DIRECTOR; APPROPRIATIONS REQUEST. 368-1 (a) The board shall employ an executive director, who shall 368-2 administer the research center in accordance with board policies. 368-3 (b) The executive director shall hire staff as necessary to 368-4 accomplish the objectives of the research center. 368-5 (c) The executive director shall prepare a request for 368-6 legislative appropriations for the operations of the research 368-7 center. If the request is approved by the board, the board shall 368-8 submit the request to the commission. The commission shall include 368-9 the request in the commission's legislative appropriations request. 368-10 (V.A.C.S. Arts. 8308-11.08(a), (b), 8308-11.09(d).) 368-11 Sec. 404.009. RESEARCH AGENDA. (a) The executive director 368-12 annually shall prepare a research agenda for board review and 368-13 approval. 368-14 (b) The board shall publish annually in the Texas Register a 368-15 proposed research agenda and shall distribute the proposed agenda 368-16 to educational institutions in this state that have a demonstrated 368-17 research capacity. 368-18 (c) The board shall accept public comments on the proposed 368-19 agenda and shall conduct a public hearing on the agenda if a 368-20 hearing is requested by interested persons. (V.A.C.S. Arts. 368-21 8308-11.03(a) (part), 8308-11.08(c).) 368-22 Sec. 404.010. COORDINATION WITH OTHER STATE AGENCIES; 368-23 CONFIDENTIALITY. (a) As required to fulfill the objectives of the 368-24 research center, the research center is entitled to access to the 368-25 files and records of: 368-26 (1) the commission; 368-27 (2) the Texas Employment Commission; 369-1 (3) the Texas Department of Insurance; 369-2 (4) the Texas Department of Human Services; and 369-3 (5) other state agencies. 369-4 (b) A state agency shall assist and cooperate in providing 369-5 the information to the research center. 369-6 (c) Information that is confidential under state law is 369-7 accessible to the research center under rules of confidentiality 369-8 and remains confidential. (V.A.C.S. Art. 8308-11.10.) 369-9 CHAPTER 405. LEGISLATIVE OVERSIGHT COMMITTEE 369-10 Sec. 405.001. DEFINITION 369-11 Sec. 405.002. COMPOSITION OF COMMITTEE 369-12 Sec. 405.003. COMMITTEE POWERS AND DUTIES 369-13 Sec. 405.004. REPORT 369-14 Sec. 405.005. VOCATIONAL REHABILITATION PILOT PROGRAM 369-15 Sec. 405.006. TEXAS LEGISLATIVE COUNCIL ASSISTANCE 369-16 CHAPTER 405. LEGISLATIVE OVERSIGHT COMMITTEE 369-17 Sec. 405.001. DEFINITION. In this chapter, "committee" 369-18 means the Legislative Oversight Committee. (New.) 369-19 Sec. 405.002. COMPOSITION OF COMMITTEE. The Legislative 369-20 Oversight Committee is composed of: 369-21 (1) three members of the senate, appointed by the 369-22 lieutenant governor; and 369-23 (2) three members of the house of representatives, 369-24 appointed by the speaker of the house of representatives. 369-25 (V.A.C.S. Art. 8308-2.51(a).) 369-26 Sec. 405.003. COMMITTEE POWERS AND DUTIES. (a) The 369-27 committee shall: 370-1 (1) meet quarterly with the commission; 370-2 (2) receive information about rules adopted by the 370-3 commission or proposed for adoption by the commission; and 370-4 (3) review specific recommendations for legislation 370-5 proposed by the commission. 370-6 (b) The committee shall monitor the cost of income benefits 370-7 under this subtitle, with emphasis on the availability and cost of 370-8 supplemental income benefits. 370-9 (c) The committee may request reports and other information 370-10 from the commission relating to the operation of the commission. 370-11 (V.A.C.S. Arts. 8308-2.51(b), (c), (d), (e).) 370-12 Sec. 405.004. REPORT. (a) The committee shall report to 370-13 the governor, lieutenant governor, and speaker of the house of 370-14 representatives not later than December 31 of each even-numbered 370-15 year. 370-16 (b) The report must include: 370-17 (1) identification of any problems in the workers' 370-18 compensation system, with recommendations for commission and 370-19 legislative action; 370-20 (2) an evaluation of the research conducted by the 370-21 research center; 370-22 (3) the status of the effectiveness of the workers' 370-23 compensation system to provide adequate, equitable, and timely 370-24 benefits to injured workers at a reasonable cost to employers, with 370-25 recommendations for any additional necessary research; and 370-26 (4) recommendations for legislative action. (V.A.C.S. 370-27 Arts. 8308-2.51(f), (g).) 371-1 Sec. 405.005. VOCATIONAL REHABILITATION PILOT PROGRAM. If 371-2 the study conducted by the research center under Section 404.002(b) 371-3 relating to the rehabilitation and reemployment of injured workers 371-4 finds vocational rehabilitation to be feasible and effective, the 371-5 committee shall draft legislation creating a vocational 371-6 rehabilitation pilot program to provide vocational rehabilitation 371-7 as a benefit under this subtitle. (V.A.C.S. Art. 8308-2.51(h).) 371-8 Sec. 405.006. TEXAS LEGISLATIVE COUNCIL ASSISTANCE. The 371-9 Texas Legislative Council shall assign at least one staff person to 371-10 assist the committee and shall provide other support as necessary. 371-11 (V.A.C.S. Art. 8308-2.51(i).) 371-12 CHAPTER 406. WORKERS' COMPENSATION INSURANCE COVERAGE 371-13 SUBCHAPTER A. COVERAGE ELECTION; SECURITY PROCEDURES 371-14 Sec. 406.001. DEFINITION 371-15 Sec. 406.002. COVERAGE GENERALLY ELECTIVE 371-16 Sec. 406.003. METHODS OF OBTAINING COVERAGE 371-17 Sec. 406.004. EMPLOYER NOTICE TO COMMISSION; ADMINISTRATIVE 371-18 VIOLATION 371-19 Sec. 406.005. EMPLOYER NOTICE TO EMPLOYEES; ADMINISTRATIVE 371-20 VIOLATION 371-21 Sec. 406.006. INSURANCE COMPANY NOTICE; ADMINISTRATIVE 371-22 VIOLATION 371-23 Sec. 406.007. TERMINATION OF COVERAGE BY EMPLOYER; NOTICE 371-24 Sec. 406.008. CANCELLATION OR NONRENEWAL OF COVERAGE BY 371-25 INSURANCE COMPANY; NOTICE 371-26 Sec. 406.009. COOPERATION WITH INSURANCE DEPARTMENT 371-27 Sec. 406.010. CLAIMS SERVICE; ADMINISTRATIVE VIOLATION 372-1 Sec. 406.011. AUSTIN REPRESENTATIVE; ADMINISTRATIVE VIOLATION 372-2 Sec. 406.012. ENFORCEMENT OF SUBCHAPTER 372-3 (Sections 406.013-406.030 reserved for expansion) 372-4 SUBCHAPTER B. COVERAGE REQUIREMENTS 372-5 Sec. 406.031. LIABILITY FOR COMPENSATION 372-6 Sec. 406.032. EXCEPTIONS 372-7 Sec. 406.033. COMMON-LAW DEFENSES; BURDEN OF PROOF 372-8 Sec. 406.034. EMPLOYEE ELECTION 372-9 Sec. 406.035. WAIVER OF COMPENSATION PROHIBITED 372-10 (Sections 406.036-406.050 reserved for expansion) 372-11 SUBCHAPTER C. COVERAGE THROUGH COMMERCIAL INSURANCE 372-12 Sec. 406.051. SECURITY BY COMMERCIAL INSURANCE 372-13 Sec. 406.052. EFFECT OF OTHER INSURANCE COVERAGE 372-14 Sec. 406.053. ALL STATES COVERAGE 372-15 (Sections 406.054-406.070 reserved for expansion) 372-16 SUBCHAPTER D. EXTRATERRITORIAL COVERAGE 372-17 Sec. 406.071. EXTRATERRITORIAL COVERAGE 372-18 Sec. 406.072. PRINCIPAL LOCATION 372-19 Sec. 406.073. AGREEMENT ON PRINCIPAL LOCATION; ADMINISTRATIVE 372-20 VIOLATION 372-21 Sec. 406.074. INTERJURISDICTIONAL AGREEMENTS 372-22 Sec. 406.075. EFFECT OF COMPENSATION PAID IN OTHER 372-23 JURISDICTION 372-24 (Sections 406.076-406.090 reserved for expansion) 372-25 SUBCHAPTER E. APPLICATION OF COVERAGE TO CERTAIN EMPLOYEES 372-26 Sec. 406.091. EXEMPT EMPLOYEES; VOLUNTARY COVERAGE 372-27 Sec. 406.092. ALIEN EMPLOYEES AND BENEFICIARIES 373-1 Sec. 406.093. LEGALLY INCOMPETENT EMPLOYEES 373-2 Sec. 406.094. CERTAIN PERSONS LICENSED BY TEXAS REAL ESTATE 373-3 COMMISSION 373-4 Sec. 406.095. CERTAIN PROFESSIONAL ATHLETES 373-5 Sec. 406.096. REQUIRED COVERAGE FOR CERTAIN BUILDING OR 373-6 CONSTRUCTION CONTRACTORS 373-7 (Sections 406.097-406.120 reserved for expansion) 373-8 SUBCHAPTER F. COVERAGE OF CERTAIN INDEPENDENT CONTRACTORS 373-9 Sec. 406.121. DEFINITIONS 373-10 Sec. 406.122. STATUS AS EMPLOYEE 373-11 Sec. 406.123. ELECTION TO PROVIDE COVERAGE; ADMINISTRATIVE 373-12 VIOLATION 373-13 Sec. 406.124. CAUSE OF ACTION 373-14 Sec. 406.125. RESTRICTION OF UNSAFE WORK PRACTICES 373-15 UNAFFECTED 373-16 Sec. 406.126. EXEMPTION 373-17 Sec. 406.127. EFFECT OF CERTAIN CONTRACTS OF HIRE 373-18 (Sections 406.128-406.140 reserved for expansion) 373-19 SUBCHAPTER G. COVERAGE OF CERTAIN BUILDING AND CONSTRUCTION 373-20 WORKERS 373-21 Sec. 406.141. DEFINITIONS 373-22 Sec. 406.142. APPLICATION 373-23 Sec. 406.143. PROVISION OF WORKERS' COMPENSATION INSURANCE; 373-24 INDEPENDENT CONTRACTOR WITHOUT EMPLOYEES 373-25 Sec. 406.144. ELECTION TO PROVIDE COVERAGE; AGREEMENT 373-26 Sec. 406.145. JOINT AGREEMENT 373-27 Sec. 406.146. WRONGFUL INDUCEMENT PROHIBITED 374-1 (Sections 406.147-406.160 reserved for expansion) 374-2 SUBCHAPTER H. COVERAGE OF FARM AND RANCH EMPLOYEES 374-3 Sec. 406.161. DEFINITIONS 374-4 Sec. 406.162. SCOPE 374-5 Sec. 406.163. LIABILITY OF LABOR AGENT; JOINT AND SEVERAL 374-6 LIABILITY 374-7 Sec. 406.164. ELECTIVE COVERAGE OF EMPLOYER AND FAMILY 374-8 MEMBERS 374-9 Sec. 406.165. NOT APPLICABLE TO INDEPENDENT CONTRACTORS 374-10 CHAPTER 406. WORKERS' COMPENSATION INSURANCE COVERAGE 374-11 SUBCHAPTER A. COVERAGE ELECTION; SECURITY PROCEDURES 374-12 Sec. 406.001. DEFINITION. In this subchapter, "employer" 374-13 means a person who employs one or more employees. (V.A.C.S. Art. 374-14 8308-3.21.) 374-15 Sec. 406.002. COVERAGE GENERALLY ELECTIVE. (a) Except for 374-16 public employers and as otherwise provided by law, an employer may 374-17 elect to obtain workers' compensation insurance coverage. 374-18 (b) An employer who elects to obtain coverage is subject to 374-19 this subtitle. (V.A.C.S. Art. 8308-3.23(a) (part).) 374-20 Sec. 406.003. METHODS OF OBTAINING COVERAGE. An employer 374-21 may obtain workers' compensation insurance coverage through a 374-22 licensed insurance company or through self-insurance as provided by 374-23 this subtitle. (V.A.C.S. Art. 8308-3.23(a) (part).) 374-24 Sec. 406.004. EMPLOYER NOTICE TO COMMISSION; ADMINISTRATIVE 374-25 VIOLATION. (a) An employer who does not obtain workers' 374-26 compensation insurance coverage shall notify the commission in 374-27 writing, in the time and as prescribed by commission rule, that the 375-1 employer elects not to obtain coverage. 375-2 (b) The commission shall prescribe forms to be used for the 375-3 employer notification and shall require the employer to provide 375-4 reasonable information to the commission about the employer's 375-5 business. 375-6 (c) The commission may contract with the Texas Employment 375-7 Commission or the comptroller for assistance in collecting the 375-8 notification required under this section. Those agencies shall 375-9 cooperate with the commission in enforcing this section. 375-10 (d) The employer notification filing required under this 375-11 section shall be filed with the Texas Department of Insurance in 375-12 accordance with Section 406.009. 375-13 (e) An employer commits a violation if the employer fails to 375-14 comply with this section. A violation under this subsection is a 375-15 Class D administrative violation. Each day of noncompliance 375-16 constitutes a separate violation. (V.A.C.S. Art. 8308-3.22.) 375-17 Sec. 406.005. EMPLOYER NOTICE TO EMPLOYEES; ADMINISTRATIVE 375-18 VIOLATION. (a) An employer shall notify each employee as provided 375-19 by this section whether or not the employer has workers' 375-20 compensation insurance coverage. 375-21 (b) The employer shall notify a new employee of the 375-22 existence or absence of workers' compensation insurance coverage at 375-23 the time the employee is hired. 375-24 (c) Each employer shall post a notice of whether the 375-25 employer has workers' compensation insurance coverage at 375-26 conspicuous locations at the employer's place of business as 375-27 necessary to provide reasonable notice to the employees. The 376-1 commission may adopt rules relating to the form and content of the 376-2 notice. The employer shall revise the notice when the information 376-3 contained in the notice is changed. 376-4 (d) An employer who obtains workers' compensation insurance 376-5 coverage or whose coverage is terminated or canceled shall notify 376-6 each employee that the coverage has been obtained, terminated, or 376-7 canceled not later than the 15th day after the date on which the 376-8 coverage, or the termination or cancellation of the coverage, takes 376-9 effect. 376-10 (e) An employer commits a violation if the employer fails to 376-11 comply with this section. A violation under this subsection is a 376-12 Class D administrative violation. (V.A.C.S. Art. 8308-3.24.) 376-13 Sec. 406.006. INSURANCE COMPANY NOTICE; ADMINISTRATIVE 376-14 VIOLATION. (a) An insurance company from which an employer has 376-15 obtained workers' compensation insurance coverage shall file notice 376-16 of the coverage with the commission not later than the 10th day 376-17 after the date on which the coverage takes effect. Coverage takes 376-18 effect on the date on which a binder is issued or at a later date 376-19 and time agreed to by the parties. 376-20 (b) The notice required under this section shall be filed 376-21 with the Texas Department of Insurance in accordance with Section 376-22 406.009. 376-23 (c) An insurance company commits a violation if the company 376-24 fails to file notice with the commission as provided by this 376-25 section. A violation under this subsection is a Class C 376-26 administrative violation. Each day of noncompliance constitutes a 376-27 separate violation. (V.A.C.S. Art. 8308-3.25.) 377-1 Sec. 406.007. TERMINATION OF COVERAGE BY EMPLOYER; NOTICE. 377-2 (a) An employer who terminates workers' compensation insurance 377-3 coverage obtained under this subtitle shall file a written notice 377-4 with the commission by certified mail not later than the 10th day 377-5 after the date on which the employer notified the insurance carrier 377-6 to terminate the coverage. The notice must include a statement 377-7 certifying the date that notice was provided or will be provided to 377-8 affected employees under Section 406.005. 377-9 (b) The notice required under this section shall be filed 377-10 with the Texas Department of Insurance in accordance with Section 377-11 406.009. 377-12 (c) Termination of coverage takes effect on the later of: 377-13 (1) the 30th day after the date of filing of notice 377-14 with the commission under Subsection (a); or 377-15 (2) the cancellation date of the policy. 377-16 (d) The coverage shall be extended until the date on which 377-17 the termination of coverage takes effect, and the employer is 377-18 obligated for premiums due for that period. (V.A.C.S. Art. 377-19 8308-3.26.) 377-20 Sec. 406.008. CANCELLATION OR NONRENEWAL OF COVERAGE BY 377-21 INSURANCE COMPANY; NOTICE. (a) An insurance company that cancels 377-22 a policy of workers' compensation insurance or that does not renew 377-23 the policy by the anniversary date of the policy shall deliver 377-24 notice of the cancellation or nonrenewal by certified mail or in 377-25 person to the employer and the commission not later than: 377-26 (1) the 30th day before the date on which the 377-27 cancellation or nonrenewal takes effect; or 378-1 (2) the 10th day before the date on which the 378-2 cancellation or nonrenewal takes effect if the insurance company 378-3 cancels or does not renew because of: 378-4 (A) fraud in obtaining coverage; 378-5 (B) misrepresentation of the amount of payroll 378-6 for purposes of premium calculation; 378-7 (C) failure to pay a premium when due; 378-8 (D) an increase in the hazard for which the 378-9 employer seeks coverage that results from an act or omission of the 378-10 employer and that would produce an increase in the rate, including 378-11 an increase because of a failure to comply with: 378-12 (i) reasonable recommendations for loss 378-13 control; or 378-14 (ii) recommendations designed to reduce a 378-15 hazard under the employer's control within a reasonable period; or 378-16 (E) a determination made by the commissioner of 378-17 insurance that the continuation of the policy would place the 378-18 insurer in violation of the law or would be hazardous to the 378-19 interest of subscribers, creditors, or the general public. 378-20 (b) The notice required under this section shall be filed 378-21 with the Texas Department of Insurance in accordance with Section 378-22 406.009. 378-23 (c) Failure of the insurance company to give notice as 378-24 required by this section extends the policy until the date on which 378-25 the required notice is provided to the employer and the commission. 378-26 (V.A.C.S. Art. 8308-3.28.) 378-27 Sec. 406.009. COOPERATION WITH INSURANCE DEPARTMENT. (a) 379-1 The Texas Department of Insurance shall collect and maintain the 379-2 information required to be provided under this subchapter and shall 379-3 provide the information in the time and manner prescribed by the 379-4 commission. 379-5 (b) The Texas Department of Insurance shall monitor 379-6 compliance with the requirements of this subchapter and shall 379-7 notify the commission of possible violations in the time and manner 379-8 prescribed by the commission. 379-9 (c) The State Board of Insurance may adopt rules as 379-10 necessary to enforce this subchapter. (V.A.C.S. Art. 379-11 8308-3.27(a).) 379-12 Sec. 406.010. CLAIMS SERVICE; ADMINISTRATIVE VIOLATION. (a) 379-13 An insurance carrier shall provide claims service: 379-14 (1) through offices of the insurance carrier located 379-15 in this state; or 379-16 (2) by other resident representatives with full power 379-17 to act for the insurance carrier. 379-18 (b) Each insurance carrier shall designate persons to 379-19 provide claims service in sufficient numbers and at appropriate 379-20 locations to reasonably service policies written by the carrier. 379-21 (c) The commission by rule shall further specify the 379-22 requirements of this section. 379-23 (d) A person commits a violation if the person violates a 379-24 rule adopted under this section. A violation under this subsection 379-25 is a Class C administrative violation. Each day of noncompliance 379-26 constitutes a separate violation. (V.A.C.S. Art. 8308-3.29.) 379-27 Sec. 406.011. AUSTIN REPRESENTATIVE; ADMINISTRATIVE 380-1 VIOLATION. (a) The commission by rule may require an insurance 380-2 carrier to designate a representative in Austin to act as the 380-3 insurance carrier's agent before the commission in Austin. Notice 380-4 to the designated agent constitutes notice to the insurance 380-5 carrier. 380-6 (b) A person commits a violation if the person violates a 380-7 rule adopted under this section. A violation under this subsection 380-8 is a Class C administrative violation. Each day of noncompliance 380-9 constitutes a separate violation. (V.A.C.S. Art. 8308-3.30.) 380-10 Sec. 406.012. ENFORCEMENT OF SUBCHAPTER. The commission 380-11 shall enforce the administrative penalties established under this 380-12 subchapter in accordance with Chapter 415. (V.A.C.S. 380-13 Art. 8308-3.27(b).) 380-14 (Sections 406.013-406.030 reserved for expansion) 380-15 SUBCHAPTER B. COVERAGE REQUIREMENTS 380-16 Sec. 406.031. LIABILITY FOR COMPENSATION. (a) An insurance 380-17 carrier is liable for compensation for an employee's injury without 380-18 regard to fault or negligence if: 380-19 (1) at the time of injury, the employee is subject to 380-20 this subtitle; and 380-21 (2) the injury arises out of and in the course and 380-22 scope of employment. 380-23 (b) If an injury is an occupational disease, the employer in 380-24 whose employ the employee was last injuriously exposed to the 380-25 hazards of the disease is considered to be the employer of the 380-26 employee under this subtitle. (V.A.C.S. Art. 8308-3.01.) 380-27 Sec. 406.032. EXCEPTIONS. An insurance carrier is not 381-1 liable for compensation if: 381-2 (1) the injury: 381-3 (A) occurred while the employee was in a state 381-4 of intoxication; 381-5 (B) was caused by the employee's wilful attempt 381-6 to injure himself or to unlawfully injure another person; 381-7 (C) arose out of an act of a third person 381-8 intended to injure the employee because of a personal reason and 381-9 not directed at the employee as an employee or because of the 381-10 employment; 381-11 (D) arose out of voluntary participation in an 381-12 off-duty recreational, social, or athletic activity that did not 381-13 constitute part of the employee's work-related duties, unless the 381-14 activity is a reasonable expectancy of or is expressly or impliedly 381-15 required by the employment; or 381-16 (E) arose out of an act of God, unless the 381-17 employment exposes the employee to a greater risk of injury from an 381-18 act of God than ordinarily applies to the general public; or 381-19 (2) the employee's horseplay was a producing cause of 381-20 the injury. (V.A.C.S. Art. 8308-3.02.) 381-21 Sec. 406.033. COMMON-LAW DEFENSES; BURDEN OF PROOF. (a) In 381-22 an action against an employer who does not have workers' 381-23 compensation insurance coverage to recover damages for personal 381-24 injuries or death sustained by an employee in the course and scope 381-25 of the employment, it is not a defense that: 381-26 (1) the employee was guilty of contributory 381-27 negligence; 382-1 (2) the employee assumed the risk of injury or death; 382-2 or 382-3 (3) the injury or death was caused by the negligence 382-4 of a fellow employee. 382-5 (b) This section does not reinstate or otherwise affect the 382-6 availability of defenses at common law, including the defenses 382-7 described by Subsection (a). 382-8 (c) The employer may defend the action on the ground that 382-9 the injury was caused: 382-10 (1) by an act of the employee intended to bring about 382-11 the injury; or 382-12 (2) while the employee was in a state of intoxication. 382-13 (d) In an action described by Subsection (a) against an 382-14 employer who does not have workers' compensation insurance 382-15 coverage, the plaintiff must prove negligence of the employer or of 382-16 an agent or servant of the employer acting within the general scope 382-17 of the agent's or servant's employment. (V.A.C.S. 382-18 Arts. 8308-3.03, 8308-3.04.) 382-19 Sec. 406.034. EMPLOYEE ELECTION. (a) Except as otherwise 382-20 provided by law, unless the employee gives notice as provided by 382-21 Subsection (b), an employee of an employer waives the employee's 382-22 right of action at common law or under a statute of this state to 382-23 recover damages for personal injuries or death sustained in the 382-24 course and scope of the employment. 382-25 (b) An employee who desires to retain the common-law right 382-26 of action to recover damages for personal injuries or death shall 382-27 notify the employer in writing that the employee waives coverage 383-1 under this subtitle and retains all rights of action under common 383-2 law. The employee must notify the employer not later than the 383-3 fifth day after the date on which the employee: 383-4 (1) begins the employment; or 383-5 (2) receives written notice from the employer that the 383-6 employer has obtained workers' compensation insurance coverage if 383-7 the employer is not a covered employer at the time of the 383-8 employment but later obtains the coverage. 383-9 (c) An employer may not require an employee to retain 383-10 common-law rights under this section as a condition of employment. 383-11 (d) An employee who elects to retain the right of action or 383-12 a legal beneficiary of that employee may bring a cause of action 383-13 for damages for injuries sustained in the course and scope of the 383-14 employment under common law or under a statute of this state. 383-15 Notwithstanding Section 406.033, the cause of action is subject to 383-16 all defenses available under common law and the statutes of this 383-17 state. (V.A.C.S. Art. 8308-3.08.) 383-18 Sec. 406.035. WAIVER OF COMPENSATION PROHIBITED. Except as 383-19 provided by this subtitle, an agreement by an employee to waive the 383-20 employee's right to compensation is void. (V.A.C.S. 383-21 Art. 8308-3.09.) 383-22 (Sections 406.036-406.050 reserved for expansion) 383-23 SUBCHAPTER C. COVERAGE THROUGH COMMERCIAL INSURANCE 383-24 Sec. 406.051. SECURITY BY COMMERCIAL INSURANCE. (a) An 383-25 insurance company may contract to secure an employer's liability 383-26 and obligations and to pay compensation by issuing a workers' 383-27 compensation insurance policy under this subchapter. 384-1 (b) The contract for coverage must be written on a policy 384-2 and endorsements approved by the Texas Department of Insurance. 384-3 (c) The employer may not transfer: 384-4 (1) the obligation to accept a report of injury under 384-5 Section 409.001; 384-6 (2) the obligation to maintain records of injuries 384-7 under Section 409.006; 384-8 (3) the obligation to report injuries to the 384-9 commission under Section 409.005; 384-10 (4) liability for a violation of Section 415.006 or 384-11 415.008 or of Chapter 451; or 384-12 (5) the obligation to comply with a commission order. 384-13 (V.A.C.S. Art. 8308-3.41.) 384-14 Sec. 406.052. EFFECT OF OTHER INSURANCE COVERAGE. (a) A 384-15 contract entered into to indemnify an employer from loss or damage 384-16 resulting from an injury sustained by an employee that is 384-17 compensable under this subtitle is void unless the contract also 384-18 covers liability for payment of compensation under this subtitle. 384-19 (b) This section does not prohibit an employer who is not 384-20 required to have workers' compensation insurance coverage and who 384-21 has elected not to obtain workers' compensation insurance coverage 384-22 from obtaining insurance coverage on the employer's employees if 384-23 the insurance is not represented to any person as providing 384-24 workers' compensation insurance coverage authorized under this 384-25 subtitle. (V.A.C.S. Art. 8308-3.42.) 384-26 Sec. 406.053. ALL STATES COVERAGE. The Texas Department of 384-27 Insurance shall coordinate with the appropriate agencies of other 385-1 states to: 385-2 (1) share information regarding an employer who 385-3 obtains all states coverage; and 385-4 (2) ensure that the department has knowledge of an 385-5 employer who obtains all states coverage in another state but fails 385-6 to file notice with the department. (V.A.C.S. Art. 8308-3.43.) 385-7 (Sections 406.054-406.070 reserved for expansion) 385-8 SUBCHAPTER D. EXTRATERRITORIAL COVERAGE 385-9 Sec. 406.071. EXTRATERRITORIAL COVERAGE. (a) An employee 385-10 who is injured while working in another jurisdiction or the 385-11 employee's legal beneficiary is entitled to all rights and remedies 385-12 under this subtitle if: 385-13 (1) the injury would be compensable if it had occurred 385-14 in this state; and 385-15 (2) the employee has significant contacts with this 385-16 state or the employment is principally located in this state. 385-17 (b) An employee has significant contacts with this state if 385-18 the employee was hired or recruited in this state and the employee: 385-19 (1) was injured not later than one year after the date 385-20 of hire; or 385-21 (2) has worked in this state for at least 10 working 385-22 days during the 12 months preceding the date of injury. (V.A.C.S. 385-23 Arts. 8308-3.14, 8308-3.15.) 385-24 Sec. 406.072. PRINCIPAL LOCATION. The principal location of 385-25 a person's employment is where: 385-26 (1) the employer has a place of business at or from 385-27 which the employee regularly works; or 386-1 (2) the employee resides and spends a substantial part 386-2 of the employee's working time. (V.A.C.S. Art. 8308-3.16.) 386-3 Sec. 406.073. AGREEMENT ON PRINCIPAL LOCATION; 386-4 ADMINISTRATIVE VIOLATION. (a) An employee whose work requires 386-5 regular travel between this state and at least one other 386-6 jurisdiction may agree in writing with the employer on the 386-7 principal location of the employment. 386-8 (b) The employer shall file the agreement with the executive 386-9 director on request. 386-10 (c) A person commits a violation if the person violates 386-11 Subsection (b). A violation under this subsection is a Class D 386-12 administrative violation. (V.A.C.S. Art. 8308-3.17.) 386-13 Sec. 406.074. INTERJURISDICTIONAL AGREEMENTS. (a) The 386-14 executive director may enter into an agreement with an appropriate 386-15 agency of another jurisdiction with respect to: 386-16 (1) conflicts of jurisdiction; 386-17 (2) assumption of jurisdiction in a case in which the 386-18 contract of employment arises in one state and the injury is 386-19 incurred in another; 386-20 (3) procedures for proceeding against a foreign 386-21 employer who fails to comply with this subtitle; and 386-22 (4) procedures for the appropriate agency to use to 386-23 proceed against an employer of this state who fails to comply with 386-24 the workers' compensation laws of the other jurisdiction. 386-25 (b) An executed agreement that has been adopted as a rule by 386-26 the commission binds all subject employers and employees. 386-27 (c) In this section, "appropriate agency" means an agency of 387-1 another jurisdiction that administers the workers' compensation 387-2 laws of that jurisdiction. (V.A.C.S. Art. 8308-3.18.) 387-3 Sec. 406.075. EFFECT OF COMPENSATION PAID IN OTHER 387-4 JURISDICTION. (a) An injured employee who elects to pursue the 387-5 employee's remedy under the workers' compensation laws of another 387-6 jurisdiction and who recovers benefits under those laws may not 387-7 recover under this subtitle. 387-8 (b) The amount of benefits accepted under the laws of the 387-9 other jurisdiction without an election under Subsection (a) shall 387-10 be credited against the benefits that the employee would have 387-11 received had the claim been made under this subtitle. (V.A.C.S. 387-12 Art. 8308-3.19.) 387-13 (Sections 406.076-406.090 reserved for expansion) 387-14 SUBCHAPTER E. APPLICATION OF COVERAGE TO CERTAIN EMPLOYEES 387-15 Sec. 406.091. EXEMPT EMPLOYEES; VOLUNTARY COVERAGE. (a) 387-16 The following employees are not subject to this subtitle: 387-17 (1) a person employed as a domestic worker or a casual 387-18 worker engaged in employment incidental to a personal residence; 387-19 (2) a person covered by a method of compensation 387-20 established under federal law; or 387-21 (3) except as provided by Subchapter H, a farm or 387-22 ranch employee. 387-23 (b) An employer may elect to obtain workers' compensation 387-24 insurance coverage for an employee or classification of employees 387-25 exempted from coverage under Subsection (a)(1) or (a)(3). 387-26 Obtaining that coverage constitutes acceptance by the employer of 387-27 the rights and responsibilities imposed under this subtitle as of 388-1 the effective date of the coverage for as long as the coverage 388-2 remains in effect. 388-3 (c) An employer who does not obtain coverage for exempt 388-4 employees is not deprived of the common-law defenses described by 388-5 Section 406.033, but this section does not reinstate or otherwise 388-6 affect the availability of those or other defenses at common law. 388-7 (V.A.C.S. Arts. 8308-3.10, 8308-3.11.) 388-8 Sec. 406.092. ALIEN EMPLOYEES AND BENEFICIARIES. (a) A 388-9 resident or nonresident alien employee or legal beneficiary is 388-10 entitled to compensation under this subtitle. 388-11 (b) A nonresident alien employee or legal beneficiary, at 388-12 the election of the employee or legal beneficiary, may be 388-13 represented officially by a consular officer of the country of 388-14 which the employee or legal beneficiary is a citizen. That officer 388-15 may receive benefit payments for distribution to the employee or 388-16 legal beneficiary. The receipt of the payments constitutes full 388-17 discharge of the insurance carrier's liability for those payments. 388-18 (V.A.C.S. Art. 8308-3.12.) 388-19 Sec. 406.093. LEGALLY INCOMPETENT EMPLOYEES. (a) The 388-20 guardian of an injured employee who is a minor or is otherwise 388-21 legally incompetent may exercise on the employee's behalf the 388-22 rights and privileges granted to the employee under this subtitle. 388-23 (b) The commission by rule shall adopt procedures relating 388-24 to the method of payment of benefits to legally incompetent 388-25 employees. (V.A.C.S. Art. 8308-3.13.) 388-26 Sec. 406.094. CERTAIN PERSONS LICENSED BY TEXAS REAL ESTATE 388-27 COMMISSION. (a) An employer who elects to provide workers' 389-1 compensation insurance coverage may include in the coverage a real 389-2 estate salesman or broker who is: 389-3 (1) licensed under The Real Estate License Act 389-4 (Article 6573a, Vernon's Texas Civil Statutes); and 389-5 (2) compensated solely by commissions. 389-6 (b) If coverage is elected by the employer, the insurance 389-7 policy must specifically name the salesman or broker. The coverage 389-8 continues while the policy is in effect and the named salesman or 389-9 broker is endorsed on the policy. (V.A.C.S. Art. 8308-3.055.) 389-10 Sec. 406.095. CERTAIN PROFESSIONAL ATHLETES. (a) A 389-11 professional athlete employed under a contract for hire or a 389-12 collective bargaining agreement who is entitled to benefits for 389-13 medical care and weekly benefits that are equal to or greater than 389-14 the benefits provided under this subtitle may not receive benefits 389-15 under this subtitle and the equivalent benefits under the contract 389-16 or collective bargaining agreement. An athlete covered by such a 389-17 contract or agreement who sustains an injury in the course and 389-18 scope of the athlete's employment shall elect to receive either the 389-19 benefits available under this subtitle or the benefits under the 389-20 contract or agreement. 389-21 (b) The commission by rule shall establish the procedures 389-22 and requirements for an election under this section. 389-23 (c) In this section, "professional athlete" means a person 389-24 employed as a professional athlete by a franchise of: 389-25 (1) the National Football League; 389-26 (2) the National Basketball Association; 389-27 (3) the American League of Professional Baseball 390-1 Clubs; or 390-2 (4) the National League of Professional Baseball 390-3 Clubs. (V.A.C.S. Art. 8308-3.075.) 390-4 Sec. 406.096. REQUIRED COVERAGE FOR CERTAIN BUILDING OR 390-5 CONSTRUCTION CONTRACTORS. (a) A governmental entity that enters 390-6 into a building or construction contract shall require the 390-7 contractor to certify in writing that the contractor provides 390-8 workers' compensation insurance coverage for each employee of the 390-9 contractor employed on the public project. 390-10 (b) Each subcontractor on the public project shall provide 390-11 such a certificate relating to coverage of the subcontractor's 390-12 employees to the general contractor, who shall provide the 390-13 subcontractor's certificate to the governmental entity. 390-14 (c) A contractor who has a contract that requires workers' 390-15 compensation insurance coverage may provide the coverage through a 390-16 group plan or other method satisfactory to the governing body of 390-17 the governmental entity. 390-18 (d) The employment of a maintenance employee by an employer 390-19 who is not engaging in building or construction as the employer's 390-20 primary business does not constitute engaging in building or 390-21 construction. 390-22 (e) In this section: 390-23 (1) "Building or construction" includes: 390-24 (A) erecting or preparing to erect a structure, 390-25 including a building, bridge, roadway, public utility facility, or 390-26 related appurtenance; 390-27 (B) remodeling, extending, repairing, or 391-1 demolishing a structure; or 391-2 (C) otherwise improving real property or an 391-3 appurtenance to real property through similar activities. 391-4 (2) "Governmental entity" means this state or a 391-5 political subdivision of this state. The term includes a 391-6 municipality. (V.A.C.S. Arts. 8308-3.23(c), (d).) 391-7 (Sections 406.097-406.120 reserved for expansion) 391-8 SUBCHAPTER F. COVERAGE OF CERTAIN INDEPENDENT CONTRACTORS 391-9 Sec. 406.121. DEFINITIONS. In this subchapter: 391-10 (1) "General contractor" means a person who undertakes 391-11 to procure the performance of work or a service, either separately 391-12 or through the use of subcontractors. The term includes a 391-13 "principal contractor," "original contractor," "prime contractor," 391-14 or other analogous term. The term does not include a motor carrier 391-15 that provides a transportation service through the use of an owner 391-16 operator. 391-17 (2) "Independent contractor" means a person who 391-18 contracts to perform work or provide a service for the benefit of 391-19 another and who ordinarily: 391-20 (A) acts as the employer of any employee of the 391-21 contractor by paying wages, directing activities, and performing 391-22 other similar functions characteristic of an employer-employee 391-23 relationship; 391-24 (B) is free to determine the manner in which the 391-25 work or service is performed, including the hours of labor of or 391-26 method of payment to any employee; 391-27 (C) is required to furnish or to have employees, 392-1 if any, furnish necessary tools, supplies, or materials to perform 392-2 the work or service; and 392-3 (D) possesses the skills required for the 392-4 specific work or service. 392-5 (3) "Motor carrier" means a person who operates a 392-6 motor vehicle over a public highway in this state to provide a 392-7 transportation service or who contracts to provide that service. 392-8 (4) "Owner operator" means a person who provides 392-9 transportation services under contract for a motor carrier. An 392-10 owner operator is an independent contractor. 392-11 (5) "Subcontractor" means a person who contracts with 392-12 a general contractor to perform all or part of the work or services 392-13 that the general contractor has undertaken to perform. 392-14 (6) "Transportation service" means providing a motor 392-15 vehicle, with a driver under contract, to transport passengers or 392-16 property. (V.A.C.S. Art. 8308-3.05(a).) 392-17 Sec. 406.122. STATUS AS EMPLOYEE. (a) For purposes of 392-18 workers' compensation insurance coverage, a person who performs 392-19 work or provides a service for a general contractor or motor 392-20 carrier who is an employer under this subtitle is an employee of 392-21 that general contractor or motor carrier, unless the person is: 392-22 (1) operating as an independent contractor; or 392-23 (2) hired to perform the work or provide the service 392-24 as an employee of a person operating as an independent contractor. 392-25 (b) A subcontractor and the subcontractor's employees are 392-26 not employees of the general contractor for purposes of this 392-27 subtitle if the subcontractor: 393-1 (1) is operating as an independent contractor; and 393-2 (2) has entered into a written agreement with the 393-3 general contractor that evidences a relationship in which the 393-4 subcontractor assumes the responsibilities of an employer for the 393-5 performance of work. 393-6 (c) An owner operator and the owner operator's employees are 393-7 not employees of a motor carrier for the purposes of this subtitle 393-8 if the owner operator has entered into a written agreement with the 393-9 motor carrier that evidences a relationship in which the owner 393-10 operator assumes the responsibilities of an employer for the 393-11 performance of work. (V.A.C.S. Arts. 8308-3.05(b), (c), (d).) 393-12 Sec. 406.123. ELECTION TO PROVIDE COVERAGE; ADMINISTRATIVE 393-13 VIOLATION. (a) A general contractor and a subcontractor may enter 393-14 into a written agreement under which the general contractor 393-15 provides workers' compensation insurance coverage to the 393-16 subcontractor and the employees of the subcontractor. 393-17 (b) If a general contractor has workers' compensation 393-18 insurance to protect the general contractor's employees and if, in 393-19 the course and scope of the general contractor's business, the 393-20 general contractor enters into a contract with a subcontractor who 393-21 does not have employees, the general contractor shall be treated as 393-22 the employer of the subcontractor for the purposes of this subtitle 393-23 and may enter into an agreement for the deduction of premiums paid 393-24 in accordance with Subsection (d). 393-25 (c) A motor carrier and an owner operator may enter into a 393-26 written agreement under which the motor carrier provides workers' 393-27 compensation insurance coverage to the owner operator and the 394-1 employees of the owner operator. 394-2 (d) If a general contractor or a motor carrier elects to 394-3 provide coverage under Subsection (a) or (c), then, notwithstanding 394-4 Section 415.006, the actual premiums, based on payroll, that are 394-5 paid or incurred by the general contractor or motor carrier for the 394-6 coverage may be deducted from the contract price or other amount 394-7 owed to the subcontractor or owner operator by the general 394-8 contractor or motor carrier. 394-9 (e) An agreement under this section makes the general 394-10 contractor the employer of the subcontractor and the 394-11 subcontractor's employees only for purposes of the workers' 394-12 compensation laws of this state. 394-13 (f) A general contractor shall file a copy of an agreement 394-14 entered into under this section with the general contractor's 394-15 workers' compensation insurance carrier not later than the 10th day 394-16 after the date on which the contract is executed. If the general 394-17 contractor is a certified self-insurer, the copy must be filed with 394-18 the division of self-insurance regulation. 394-19 (g) A general contractor who enters into an agreement with a 394-20 subcontractor under this section commits a violation if the 394-21 contractor fails to file a copy of the agreement as required by 394-22 Subsection (f). A violation under this subsection is a Class B 394-23 administrative violation. (V.A.C.S. Arts. 8308-3.05(e), (f), (g), 394-24 (l).) 394-25 Sec. 406.124. CAUSE OF ACTION. If a person who has workers' 394-26 compensation insurance coverage subcontracts all or part of the 394-27 work to be performed by the person to a subcontractor with the 395-1 intent to avoid liability as an employer under this subtitle, an 395-2 employee of the subcontractor who sustains a compensable injury in 395-3 the course and scope of the employment shall be treated as an 395-4 employee of the person for purposes of workers' compensation and 395-5 shall have a separate right of action against the subcontractor. 395-6 The right of action against the subcontractor does not affect the 395-7 employee's right to compensation under this subtitle. (V.A.C.S. 395-8 Art. 8308-3.05(h).) 395-9 Sec. 406.125. RESTRICTION OF UNSAFE WORK PRACTICES 395-10 UNAFFECTED. This subchapter does not prevent a general contractor 395-11 from directing a subcontractor or the employees of a subcontractor 395-12 to stop or change an unsafe work practice. (V.A.C.S. Art. 395-13 8308-3.05(i).) 395-14 Sec. 406.126. EXEMPTION. This subchapter does not apply to 395-15 farm or ranch employees. (V.A.C.S. Art. 8308-3.05(k).) 395-16 Sec. 406.127. EFFECT OF CERTAIN CONTRACTS OF HIRE. An 395-17 insurance company may not demand an insurance premium from an 395-18 employer for coverage of an independent contractor or an employee 395-19 of an independent contractor if the independent contractor is under 395-20 a contract of hire with the employer. (V.A.C.S. Art. 395-21 8308-3.05(j).) 395-22 (Sections 406.128-406.140 reserved for expansion) 395-23 SUBCHAPTER G. COVERAGE OF CERTAIN BUILDING AND 395-24 CONSTRUCTION WORKERS 395-25 Sec. 406.141. DEFINITIONS. In this subchapter: 395-26 (1) "Hiring contractor" means a general contractor or 395-27 subcontractor who, in the course of regular business, subcontracts 396-1 all or part of the work to be performed to other persons. 396-2 (2) "Independent contractor" means a person who 396-3 contracts to perform work or provide a service for the benefit of 396-4 another and who: 396-5 (A) is paid by the job and not by the hour or 396-6 some other time-measured basis; 396-7 (B) is free to hire as many helpers as desired 396-8 and may determine the pay of each helper; and 396-9 (C) is free to, while under contract to the 396-10 hiring contractor, work for other contractors or is free to send 396-11 helpers to work for other contractors. (V.A.C.S. Art. 396-12 8308-3.06(b).) 396-13 Sec. 406.142. APPLICATION. This subchapter applies only to 396-14 contractors and workers preparing to construct, constructing, 396-15 altering, repairing, extending, or demolishing: 396-16 (1) a residential structure; 396-17 (2) a commercial structure that does not exceed three 396-18 stories in height or 20,000 square feet in area; or 396-19 (3) an appurtenance to a structure described by 396-20 Subdivision (1) or (2). (V.A.C.S. Art. 8308-3.06(a).) 396-21 Sec. 406.143. PROVISION OF WORKERS' COMPENSATION INSURANCE; 396-22 INDEPENDENT CONTRACTOR WITHOUT EMPLOYEES. (a) Unless the 396-23 independent contractor and hiring contractor enter into an 396-24 agreement under Section 406.144, the independent contractor is 396-25 responsible for any workers' compensation insurance coverage 396-26 provided to an employee of the independent contractor, and the 396-27 independent contractor's employees are not entitled to workers' 397-1 compensation insurance coverage from the hiring contractor. 397-2 (b) An independent contractor without employees shall be 397-3 treated in the same manner as an independent contractor with 397-4 employees and is not entitled to coverage under the hiring 397-5 contractor's workers' compensation insurance policy unless the 397-6 independent contractor and hiring contractor enter into an 397-7 agreement under Section 406.144. (V.A.C.S. Arts. 8308-3.06(c) 397-8 (part), (e) (part).) 397-9 Sec. 406.144. ELECTION TO PROVIDE COVERAGE; AGREEMENT. (a) 397-10 Except as provided by this section, a hiring contractor is not 397-11 responsible for providing workers' compensation insurance coverage 397-12 for an independent contractor or the independent contractor's 397-13 employee, helper, or subcontractor. An independent contractor and 397-14 a hiring contractor may enter into a written agreement under which 397-15 the independent contractor agrees that the hiring contractor may 397-16 withhold the cost of workers' compensation insurance coverage from 397-17 the contract price and that, for the purpose of providing workers' 397-18 compensation insurance coverage, the hiring contractor is the 397-19 employer of the independent contractor and the independent 397-20 contractor's employees. 397-21 (b) A hiring contractor and independent contractor may enter 397-22 into an agreement under Subsection (a) even if the independent 397-23 contractor does not have an employee. 397-24 (c) An agreement under this section shall be filed with the 397-25 commission either by personal delivery or by registered or 397-26 certified mail and is considered filed on receipt by the 397-27 commission. 398-1 (d) The hiring contractor shall send a copy of an agreement 398-2 under this section to the hiring contractor's workers' compensation 398-3 insurance carrier on filing of the agreement with the commission. 398-4 (e) An agreement under this section makes the hiring 398-5 contractor the employer of the independent contractor and the 398-6 independent contractor's employees only for the purposes of the 398-7 workers' compensation laws of this state. 398-8 (f) The deduction of the cost of the workers' compensation 398-9 insurance coverage from the independent contractor's contract price 398-10 is permitted notwithstanding Section 415.006. (V.A.C.S. Arts. 398-11 8308-3.06(c) (part), (d).) 398-12 Sec. 406.145. JOINT AGREEMENT. (a) A hiring contractor and 398-13 an independent subcontractor may make a joint agreement declaring 398-14 that the subcontractor is an independent contractor as defined in 398-15 Section 406.141(2) and that the subcontractor is not the employee 398-16 of the hiring contractor. If the joint agreement is signed by both 398-17 the hiring contractor and the subcontractor and filed with the 398-18 commission, the subcontractor, as a matter of law, is an 398-19 independent contractor and not an employee, and is not entitled to 398-20 workers' compensation insurance coverage through the hiring 398-21 contractor unless an agreement is entered into under Section 398-22 406.144 to provide workers' compensation insurance coverage. The 398-23 commission shall prescribe forms for the joint agreement. 398-24 (b) A joint agreement shall be delivered to the commission 398-25 by personal delivery or registered or certified mail and is 398-26 considered filed on receipt by the commission. 398-27 (c) The hiring contractor shall send a copy of a joint 399-1 agreement signed under this section to the hiring contractor's 399-2 workers' compensation insurance carrier on filing of the joint 399-3 agreement with the commission. 399-4 (d) The commission shall maintain a system for accepting and 399-5 maintaining the joint agreements. 399-6 (e) A joint agreement signed under this section applies to 399-7 each hiring agreement between the hiring contractor and the 399-8 independent contractor until the first anniversary of its filing 399-9 date, unless a subsequent hiring agreement expressly states that 399-10 the joint agreement does not apply. 399-11 (f) If a subsequent hiring agreement is made to which the 399-12 joint agreement does not apply, the hiring contractor and 399-13 independent contractor shall notify the commission and the hiring 399-14 contractor's workers' compensation insurance carrier in writing. 399-15 (g) If a hiring contractor and an independent contractor 399-16 have filed a joint agreement under this section, an insurance 399-17 company may not require the payment of an insurance premium by a 399-18 hiring contractor for coverage of an independent contractor or an 399-19 independent contractor's employee, helper, or subcontractor other 399-20 than under an agreement entered into in compliance with Section 399-21 406.144. (V.A.C.S. Arts. 8308-3.06(e) (part), (f), (h).) 399-22 Sec. 406.146. WRONGFUL INDUCEMENT PROHIBITED. (a) A hiring 399-23 contractor may not: 399-24 (1) wrongfully induce an employee to enter into a 399-25 joint agreement under Section 406.145 stating that the employee is 399-26 an independent contractor; or 399-27 (2) exert controls over an independent contractor or 400-1 an employee of an independent contractor sufficient to make that 400-2 person an employee under common-law tests. 400-3 (b) A hiring contractor does not exert employer-like 400-4 controls over an independent contractor or an independent 400-5 contractor's employee solely because of: 400-6 (1) controlling the hours of labor, if that control is 400-7 exercised only to: 400-8 (A) establish the deadline for the completion of 400-9 the work called for by the contract; 400-10 (B) schedule work to occur in a logical sequence 400-11 and to avoid delays or interference with the work of other 400-12 contractors; or 400-13 (C) schedule work to avoid disturbing neighbors 400-14 during night or early morning hours or at other times when the 400-15 independent contractor's activities would unreasonably disturb 400-16 activities in the neighborhood; or 400-17 (2) stopping or directing work solely to prevent or 400-18 correct an unsafe work practice or condition or to control work to 400-19 ensure that the end product is in compliance with the contracted 400-20 for result. (V.A.C.S. Art. 8308-3.06(g).) 400-21 (Sections 406.147-406.160 reserved for expansion) 400-22 SUBCHAPTER H. COVERAGE OF FARM AND RANCH EMPLOYEES 400-23 Sec. 406.161. DEFINITIONS. In this subchapter: 400-24 (1) "Agricultural labor" means the planting, 400-25 cultivating, or harvesting of an agricultural or horticultural 400-26 commodity in its unmanufactured state. 400-27 (2) "Family" means persons related within the third 401-1 degree by consanguinity or affinity. 401-2 (3) "Labor agent" means a person who: 401-3 (A) is a farm labor contractor for purposes of 401-4 the Migrant and Seasonal Agricultural Worker Protection Act (29 401-5 U.S.C. Section 1801 et seq.); or 401-6 (B) otherwise recruits, solicits, hires, 401-7 employs, furnishes, or transports migrant or seasonal agricultural 401-8 workers who work for the benefit of a third party. 401-9 (4) "Migrant worker" means an individual who is: 401-10 (A) employed in agricultural labor of a seasonal 401-11 or temporary nature; and 401-12 (B) required to be absent overnight from the 401-13 worker's permanent place of residence. 401-14 (5) "Seasonal worker" means an individual who is: 401-15 (A) employed in agricultural or ranch labor of a 401-16 seasonal or temporary nature; and 401-17 (B) not required to be absent overnight from the 401-18 worker's permanent place of residence. 401-19 (6) "Truck farm" means a farm on which fruits, garden 401-20 vegetables for human consumption, potatoes, sugar beets, or 401-21 vegetable seeds are produced for market. The term includes a farm 401-22 primarily devoted to one of those crops that also has incidental 401-23 acreage of other crops. (V.A.C.S. Art. 8308-3.07(i) (part).) 401-24 Sec. 406.162. SCOPE. (a) This subtitle applies to an 401-25 action to recover damages for personal injuries or death sustained 401-26 by a farm or ranch employee who is: 401-27 (1) a migrant worker; 402-1 (2) a seasonal worker: 402-2 (A) employed on a truck farm, orchard, or 402-3 vineyard; 402-4 (B) employed by a person with a gross annual 402-5 payroll for the preceding year in an amount not less than the 402-6 greater of the required payroll for the year preceding that year, 402-7 adjusted for inflation, or $25,000; or 402-8 (C) working for a farmer, ranch operator, or 402-9 labor agent who employs a migrant worker and doing the same work at 402-10 the same time and location as the migrant worker; or 402-11 (3) an employee, other than a migrant or seasonal 402-12 worker: 402-13 (A) for years before 1991, employed by a person 402-14 with a gross annual payroll for the preceding year of at least 402-15 $50,000; and 402-16 (B) for 1991 and subsequent years, employed by a 402-17 person: 402-18 (i) with a gross annual payroll in an 402-19 amount required for coverage of seasonal workers under Subdivision 402-20 (2)(B); or 402-21 (ii) who employs three or more farm or 402-22 ranch employees other than migrant or seasonal workers. 402-23 (b) The comptroller shall prepare a consumer price index for 402-24 this state and shall certify the applicable index factor to the 402-25 commission before October 1 of each year. The commission shall 402-26 adjust the gross annual payroll requirement under Subsection 402-27 (a)(2)(B) accordingly. 403-1 (c) For the purposes of this section, the gross annual 403-2 payroll of a person includes any amount paid by the person to a 403-3 labor agent for the agent's services and for the services of 403-4 migrant or seasonal workers but does not include wages paid to: 403-5 (1) the person or a member of the person's family, if 403-6 the person is a sole proprietor; 403-7 (2) a partner in a partnership or a member of the 403-8 partner's family; or 403-9 (3) a shareholder of a corporation in which all 403-10 shareholders are family members or a member of the shareholder's 403-11 family. 403-12 (d) This subchapter does not affect the application or 403-13 interpretation of this subtitle as it relates to persons engaged in 403-14 activities determined before January 1, 1985, not to be farm or 403-15 ranch labor. (V.A.C.S. Arts. 8308-3.07(a), (b), (c), (d), (j).) 403-16 Sec. 406.163. LIABILITY OF LABOR AGENT; JOINT AND SEVERAL 403-17 LIABILITY. (a) A labor agent who furnishes a migrant or seasonal 403-18 worker is liable under this subtitle as if the labor agent were the 403-19 employer of the worker, without regard to the right of control or 403-20 other factors used to determine an employer-employee relationship. 403-21 (b) If the labor agent does not have workers' compensation 403-22 insurance coverage, the person with whom the labor agent contracts 403-23 for the services of the migrant or seasonal worker is jointly and 403-24 severally liable with the labor agent in an action to recover 403-25 damages for personal injuries or death suffered by the migrant or 403-26 seasonal worker as provided by this subtitle, and, for that 403-27 purpose, the migrant or seasonal worker is considered the employee 404-1 of the person with whom the labor agent contracts and that person 404-2 may obtain workers' compensation insurance coverage for that worker 404-3 as provided by this subtitle. If a migrant or seasonal worker is 404-4 covered by workers' compensation insurance coverage, the person 404-5 with whom the labor agent contracts is not liable in a separate 404-6 action for injury or death except to the extent provided by this 404-7 subtitle. 404-8 (c) A labor agent shall notify each person with whom the 404-9 agent contracts of whether the agent has workers' compensation 404-10 insurance coverage. If the agent does have workers' compensation 404-11 insurance coverage, the agent shall present evidence of the 404-12 coverage to each person with whom the agent contracts. (V.A.C.S. 404-13 Arts. 8308-3.07(e), (f), (g).) 404-14 Sec. 406.164. ELECTIVE COVERAGE OF EMPLOYER AND FAMILY 404-15 MEMBERS. (a) A person who purchases a workers' compensation 404-16 insurance policy covering farm or ranch employees may cover the 404-17 person, a partner, a corporate officer, or a family member in that 404-18 policy. The insurance policy must specifically name the individual 404-19 to be covered. 404-20 (b) The elective coverage continues while the policy is in 404-21 effect and the named individual is endorsed on the policy. 404-22 (c) A member of an employer's family is exempt from coverage 404-23 under the policy unless an election for that coverage is made under 404-24 this section. (V.A.C.S. Art. 8308-3.07(h).) 404-25 Sec. 406.165. NOT APPLICABLE TO INDEPENDENT CONTRACTORS. 404-26 (a) A farm or ranch employee who performs work or provides a 404-27 service for a farm or ranch employer subject to this subchapter is 405-1 an employee of that employer unless the employee is hired to 405-2 perform the work or provide the service as an employee of an 405-3 independent contractor. 405-4 (b) In this section, "independent contractor" means a 405-5 person, other than a labor agent, who contracts with a farm or 405-6 ranch employer to perform work or provide a service for the benefit 405-7 of the employer and who ordinarily: 405-8 (1) acts as the employer of the employee by paying 405-9 wages, directing activities, and performing other similar functions 405-10 characteristic of an employer-employee relationship; 405-11 (2) is free to determine the manner in which the work 405-12 or service is performed, including the hours of labor or the method 405-13 of payment; 405-14 (3) is required to furnish necessary tools, supplies, 405-15 or materials to perform the work or service; and 405-16 (4) possesses skills required for the specific work or 405-17 service. (V.A.C.S. Art. 8308-3.07(k).) 405-18 CHAPTER 407. SELF-INSURANCE REGULATION 405-19 SUBCHAPTER A. GENERAL PROVISIONS 405-20 Sec. 407.001. DEFINITIONS 405-21 (Sections 407.002-407.020 reserved for expansion) 405-22 SUBCHAPTER B. DIVISION OF SELF-INSURANCE REGULATION 405-23 Sec. 407.021. DIVISION 405-24 Sec. 407.022. DIRECTOR 405-25 Sec. 407.023. EXCLUSIVE POWERS AND DUTIES OF COMMISSION 405-26 Sec. 407.024. CLAIM OR SUIT 405-27 (Sections 407.025-407.040 reserved for expansion) 406-1 SUBCHAPTER C. CERTIFICATE OF AUTHORITY TO SELF-INSURE 406-2 Sec. 407.041. APPLICATION 406-3 Sec. 407.042. ISSUANCE OF CERTIFICATE 406-4 Sec. 407.043. PROCEDURES ON DENIAL OF APPLICATION 406-5 Sec. 407.044. TERM OF CERTIFICATE; RENEWAL 406-6 Sec. 407.045. WITHDRAWAL FROM SELF-INSURANCE 406-7 Sec. 407.046. REVOCATION OF CERTIFICATE OF AUTHORITY 406-8 Sec. 407.047. EFFECT OF REVOCATION 406-9 (Sections 407.048-407.060 reserved for expansion) 406-10 SUBCHAPTER D. REQUIREMENTS FOR CERTIFICATE OF AUTHORITY 406-11 Sec. 407.061. GENERAL REQUIREMENTS 406-12 Sec. 407.062. FINANCIAL STRENGTH AND LIQUIDITY REQUIREMENTS 406-13 Sec. 407.063. PREMIUM REQUIREMENTS 406-14 Sec. 407.064. GENERAL SECURITY REQUIREMENTS 406-15 Sec. 407.065. SPECIFIC SECURITY REQUIREMENTS 406-16 Sec. 407.066. EFFECT OF DISPUTE 406-17 Sec. 407.067. EXCESS INSURANCE; REINSURANCE; ADMINISTRATIVE 406-18 VIOLATION 406-19 Sec. 407.068. GUARANTEE BY PARENT ORGANIZATION 406-20 (Sections 407.069-407.080 reserved for expansion) 406-21 SUBCHAPTER E. POWERS AND DUTIES OF CERTIFIED SELF-INSURER 406-22 Sec. 407.081. ANNUAL REPORT 406-23 Sec. 407.082. EXAMINATION OF RECORDS; ADMINISTRATIVE 406-24 VIOLATION 406-25 Sec. 407.083. PAYMENT OF INSURANCE AGENT'S COMMISSION 406-26 (Sections 407.084-407.100 reserved for expansion) 406-27 SUBCHAPTER F. FINANCING OF SELF-INSURANCE PROGRAM 407-1 Sec. 407.101. FUND 407-2 Sec. 407.102. REGULATORY FEE 407-3 Sec. 407.103. SELF-INSURER MAINTENANCE TAX; EFFECT ON GENERAL 407-4 MAINTENANCE TAX 407-5 Sec. 407.104. COLLECTION OF TAXES AND FEES; ADMINISTRATIVE 407-6 VIOLATION 407-7 (Sections 407.105-407.120 reserved for expansion) 407-8 SUBCHAPTER G. TEXAS CERTIFIED SELF-INSURER GUARANTY ASSOCIATION 407-9 Sec. 407.121. GUARANTY ASSOCIATION 407-10 Sec. 407.122. BOARD OF DIRECTORS 407-11 Sec. 407.123. BOARD RULES 407-12 Sec. 407.124. IMPAIRED EMPLOYER; ASSESSMENTS 407-13 Sec. 407.125. PAYMENT OF ASSESSMENTS 407-14 Sec. 407.126. TRUST FUND; FEE 407-15 Sec. 407.127. PAYMENT OF BENEFITS THROUGH ASSOCIATION 407-16 Sec. 407.128. POSSESSION OF SECURITY BY ASSOCIATION 407-17 Sec. 407.129. RELEASE OF CLAIM INFORMATION TO ASSOCIATION 407-18 Sec. 407.130. ASSOCIATION AS PARTY IN INTEREST 407-19 Sec. 407.131. PREFERENCE 407-20 Sec. 407.132. SPECIAL FUND 407-21 Sec. 407.133. SUSPENSION OR REVOCATION OF CERTIFICATE FOR 407-22 FAILURE TO PAY ASSESSMENT 407-23 CHAPTER 407. SELF-INSURANCE REGULATION 407-24 SUBCHAPTER A. GENERAL PROVISIONS 407-25 Sec. 407.001. DEFINITIONS. In this chapter: 407-26 (1) "Association" means the Texas Certified 407-27 Self-Insurer Guaranty Association. 408-1 (2) "Director" means the director of the division of 408-2 self-insurance regulation. 408-3 (3) "Impaired employer" means a certified 408-4 self-insurer: 408-5 (A) who has suspended payment of compensation as 408-6 determined by the commission; 408-7 (B) who has filed for relief under bankruptcy 408-8 laws; 408-9 (C) against whom bankruptcy proceedings have 408-10 been filed; or 408-11 (D) for whom a receiver has been appointed by a 408-12 court of this state. 408-13 (4) "Incurred liabilities for compensation" means the 408-14 amount equal to the sum of: 408-15 (A) the estimated amount of the liabilities for 408-16 outstanding workers' compensation claims, including claims incurred 408-17 but not yet reported; and 408-18 (B) the estimated amount necessary to provide 408-19 for the administration of those claims, including legal costs. 408-20 (5) "Qualified claims servicing contractor" means a 408-21 person who provides claims service for a certified self-insurer, 408-22 who is a separate business entity from the affected certified 408-23 self-insurer, and who is: 408-24 (A) an insurance company authorized by the Texas 408-25 Department of Insurance to write workers' compensation insurance; 408-26 (B) a subsidiary of an insurance company that 408-27 provides claims service under contract; or 409-1 (C) a third-party administrator that has on its 409-2 staff an individual licensed under Chapter 407, Acts of the 63rd 409-3 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas 409-4 Insurance Code). (V.A.C.S. Art. 8308-3.51.) 409-5 (Sections 407.002-407.020 reserved for expansion) 409-6 SUBCHAPTER B. DIVISION OF SELF-INSURANCE REGULATION 409-7 Sec. 407.021. DIVISION. The division of self-insurance 409-8 regulation is a division of the commission. (V.A.C.S. Art. 409-9 8308-3.53(a).) 409-10 Sec. 407.022. DIRECTOR. (a) The executive director of the 409-11 commission shall appoint the director of the division. 409-12 (b) The director shall exercise all the rights, powers, and 409-13 duties imposed or conferred on the commission by this chapter, 409-14 other than by Section 407.023. (V.A.C.S. Arts. 8308-3.53(b), 409-15 8308-3.54.) 409-16 Sec. 407.023. EXCLUSIVE POWERS AND DUTIES OF COMMISSION. 409-17 (a) The commission, by majority vote, shall: 409-18 (1) approve or deny a recommendation by the director 409-19 concerning the issuance or revocation of a certificate of authority 409-20 to self-insure; and 409-21 (2) certify that a certified self-insurer has 409-22 suspended payment of compensation or has otherwise become an 409-23 impaired employer. 409-24 (b) The commission may not delegate the powers and duties 409-25 imposed by this section. (V.A.C.S. Art. 8308-3.52.) 409-26 Sec. 407.024. CLAIM OR SUIT. (a) A claim or suit brought 409-27 by a claimant or a certified self-insurer shall be styled "in 410-1 re: (name of employee) and (name of certified self-insurer)." 410-2 (b) The director is the agent for service of process for a 410-3 claim or suit brought by a workers' compensation claimant against 410-4 the qualified claims servicing contractor of a certified 410-5 self-insurer. (V.A.C.S. Art. 8308-3.66.) 410-6 (Sections 407.025-407.040 reserved for expansion) 410-7 SUBCHAPTER C. CERTIFICATE OF AUTHORITY TO SELF-INSURE 410-8 Sec. 407.041. APPLICATION. (a) An employer who desires to 410-9 self-insure under this chapter must submit an application to the 410-10 commission for a certificate of authority to self-insure. 410-11 (b) The application must be: 410-12 (1) submitted on a form adopted by the commission; and 410-13 (2) accompanied by a nonrefundable $1,000 application 410-14 fee. 410-15 (c) Not later than the 60th day after the date on which the 410-16 application is received, the director shall recommend approval or 410-17 denial of the application to the commission. 410-18 (d) During the pendency of the approval or denial of the 410-19 application, the applicant may not operate as a self-insurer under 410-20 this chapter. (V.A.C.S. Arts. 8308-3.55(a) (part), (b) (part), 410-21 8308-3.59(c).) 410-22 Sec. 407.042. ISSUANCE OF CERTIFICATE. With the approval of 410-23 the Texas Certified Self-Insurer Guaranty Association, and by 410-24 majority vote, the commission shall issue a certificate of 410-25 authority to self-insure to an applicant who meets the 410-26 certification requirements under this chapter and pays the required 410-27 fee. (V.A.C.S. Arts. 8308-3.55(b) (part), 8308-3.56(m).) 411-1 Sec. 407.043. PROCEDURES ON DENIAL OF APPLICATION. (a) If 411-2 the commission determines that an applicant for a certificate of 411-3 authority to self-insure does not meet the certification 411-4 requirements, the commission shall notify the applicant in writing 411-5 of its determination, stating the specific reasons for the denial 411-6 and the conditions to be met before approval may be granted. 411-7 (b) The applicant is entitled to a reasonable period, as 411-8 determined by the commission, to meet the conditions for approval 411-9 before the application is considered rejected for purposes of 411-10 appeal. (V.A.C.S. Arts. 8308-3.59(a), (b).) 411-11 Sec. 407.044. TERM OF CERTIFICATE; RENEWAL. (a) A 411-12 certificate of authority to self-insure is valid for one year after 411-13 the date of issuance and may be renewed under procedures prescribed 411-14 by the commission. 411-15 (b) The director may stagger the renewal dates of 411-16 certificates of authority to self-insure to facilitate the work 411-17 load of the division. (V.A.C.S. Art. 8308-3.55(b) (part).) 411-18 Sec. 407.045. WITHDRAWAL FROM SELF-INSURANCE. (a) A 411-19 certified self-insurer may withdraw from self-insurance at any time 411-20 with the approval of the commission. The commission shall approve 411-21 the withdrawal if the certified self-insurer shows to the 411-22 satisfaction of the commission that the certified self-insurer has 411-23 established an adequate program to pay all incurred losses, 411-24 including unreported losses, that arise out of accidents or 411-25 occupational diseases first distinctly manifested during the period 411-26 of operation as a certified self-insurer. 411-27 (b) A certified self-insurer who withdraws from 412-1 self-insurance shall surrender to the commission the certificate of 412-2 authority to self-insure. (V.A.C.S. Art. 8308-3.65(a).) 412-3 Sec. 407.046. REVOCATION OF CERTIFICATE OF AUTHORITY. (a) 412-4 The commission by majority vote may revoke the certificate of 412-5 authority to self-insure of a certified self-insurer who fails to 412-6 comply with requirements or conditions established by this chapter 412-7 or a rule adopted by the commission under this chapter. 412-8 (b) If the commission believes that a ground exists to 412-9 revoke a certificate of authority to self-insure, the commission 412-10 shall hold a hearing to determine if the certificate should be 412-11 revoked. The hearing shall be conducted in the manner provided for 412-12 a contested case hearing under the Administrative Procedure and 412-13 Texas Register Act (Article 6252-13a, Vernon's Texas Civil 412-14 Statutes). 412-15 (c) The commission shall notify the certified self-insurer 412-16 of the hearing and the grounds not later than the 30th day before 412-17 the scheduled hearing date. 412-18 (d) If the certified self-insurer fails to show cause why 412-19 the certificate should not be revoked, the commission immediately 412-20 shall revoke the certificate. (V.A.C.S. Arts. 8308-3.68(a), (b).) 412-21 Sec. 407.047. EFFECT OF REVOCATION. (a) A certified 412-22 self-insurer whose certificate of authority to self-insure is 412-23 revoked is not relieved of the obligation for compensation to an 412-24 employee for an accidental injury or occupational disease that 412-25 occurred during the period of self-insurance. 412-26 (b) The security required under Sections 407.064 and 407.065 412-27 shall be maintained with the commission or under the commission's 413-1 control until each claim for workers' compensation benefits is 413-2 paid, is settled, or lapses under this subtitle. (V.A.C.S. 413-3 Art. 8308-3.68(c).) 413-4 (Sections 407.048-407.060 reserved for expansion) 413-5 SUBCHAPTER D. REQUIREMENTS FOR CERTIFICATE OF AUTHORITY 413-6 Sec. 407.061. GENERAL REQUIREMENTS. (a) To be eligible for 413-7 a certificate of authority to self-insure, an applicant for an 413-8 initial or renewal certificate must present evidence satisfactory 413-9 to the commission and the association of sufficient financial 413-10 strength and liquidity, under standards adopted by the commission, 413-11 to ensure that all workers' compensation obligations incurred by 413-12 the applicant under this chapter are met promptly. 413-13 (b) The applicant must: 413-14 (1) be a business entity, or one of the consolidated 413-15 subsidiaries of the entity, that is required to register under the 413-16 Securities Act of 1933 (15 U.S.C. Section 77a et seq.) and furnish 413-17 financial information prepared in accordance with the requirements 413-18 for those business entities; or 413-19 (2) annually furnish audited financial statements 413-20 comparable in form and manner of preparation to those filed by a 413-21 business entity required to register under the Securities Act of 413-22 1933 (15 U.S.C. Section 77a et seq.). 413-23 (c) The applicant must present a plan for claims 413-24 administration that is acceptable to the commission and that 413-25 designates a qualified claims servicing contractor. 413-26 (d) The applicant must demonstrate the existence of an 413-27 effective safety program for each location in the state at which it 414-1 conducts business. 414-2 (e) The applicant must provide to the commission a copy of 414-3 each contract entered into with a person that provides claims 414-4 services, underwriting services, or accident prevention services if 414-5 the provider of those services is not an employee of the applicant. 414-6 The contract must be acceptable to the commission and must be 414-7 submitted in a standard form adopted by the commission, if the 414-8 commission adopts such a form. 414-9 (f) The commission shall adopt rules for the requirements 414-10 for the financial statements required by Subsection (b)(2). 414-11 (V.A.C.S. Arts. 8308-3.56(a) (part), (b), (c), (d), (e).) 414-12 Sec. 407.062. FINANCIAL STRENGTH AND LIQUIDITY REQUIREMENTS. 414-13 In assessing the financial strength and liquidity of an applicant, 414-14 the commission shall consider: 414-15 (1) the applicant's organizational structure and 414-16 management background; 414-17 (2) the applicant's profit and loss history; 414-18 (3) the applicant's compensation loss history; 414-19 (4) the source and reliability of the financial 414-20 information submitted by the applicant; 414-21 (5) the number of employees affected by 414-22 self-insurance; 414-23 (6) the applicant's access to excess insurance 414-24 markets; 414-25 (7) financial ratios, indexes, or other financial 414-26 measures that the commission finds appropriate; and 414-27 (8) any other information considered appropriate by 415-1 the commission. (V.A.C.S. Art. 8308-3.56(a) (part).) 415-2 Sec. 407.063. PREMIUM REQUIREMENTS. (a) In addition to 415-3 meeting the other certification requirements imposed under this 415-4 chapter, an applicant for an initial certificate of authority to 415-5 self-insure must present evidence satisfactory to the commission of 415-6 a total unmodified workers' compensation insurance premium in this 415-7 state in the calendar year of application of at least $500,000. 415-8 (b) Instead of the state premium required under this 415-9 section, the applicant may present evidence of a total unmodified 415-10 national workers' compensation insurance premium of at least $10 415-11 million. 415-12 (c) Notwithstanding Subsection (a), if the application is 415-13 filed before January 1, 1994, an applicant who presents evidence of 415-14 a total unmodified insurance premium in this state must present 415-15 evidence of a premium of at least $750,000. This subsection 415-16 expires December 31, 1994. (V.A.C.S. Art. 8308-3.57.) 415-17 Sec. 407.064. GENERAL SECURITY REQUIREMENTS. (a) Each 415-18 applicant shall provide security for incurred liabilities for 415-19 compensation through a deposit with the director, in a combination 415-20 and from institutions approved by the director, of the following 415-21 security: 415-22 (1) cash or negotiable securities of the United States 415-23 or of this state; 415-24 (2) a surety bond that names the director as payee; or 415-25 (3) an irrevocable letter of credit that names the 415-26 director as payee. 415-27 (b) If an applicant who has provided a letter of credit as 416-1 all or part of the security required under this section desires to 416-2 cancel the existing letter of credit and substitute a different 416-3 letter of credit or another form of security, the applicant shall 416-4 notify the commission in writing not later than the 60th day before 416-5 the effective date of the cancellation of the original letter of 416-6 credit. 416-7 (c) An estimate of the applicant's incurred liabilities for 416-8 compensation must be signed and sworn to by an accredited casualty 416-9 actuary and submitted with the application. 416-10 (d) The sum of the deposited securities must be at least 416-11 equal to the greater of: 416-12 (1) $300,000; or 416-13 (2) 125 percent of the applicant's incurred 416-14 liabilities for compensation. 416-15 (e) If an applicant is granted a certificate of authority to 416-16 self-insure, any interest or other income that accrues from cash or 416-17 negotiable securities deposited by the applicant as security under 416-18 this section while the cash or securities are on deposit with the 416-19 director shall be paid to the applicant quarterly. (V.A.C.S. Arts. 416-20 8308-3.56(f), (g), (h), (i), (l).) 416-21 Sec. 407.065. SPECIFIC SECURITY REQUIREMENTS. (a) A 416-22 security deposit must include within its coverage all amounts 416-23 covered by terminated surety bonds or terminated excess insurance 416-24 policies. 416-25 (b) A surety bond, irrevocable letter of credit, or document 416-26 indicating issuance of an irrevocable letter of credit must be in a 416-27 form approved by the director and must be issued by an institution 417-1 acceptable to the director. The instrument may be released only 417-2 according to its terms but may not be released by the deposit of 417-3 additional security. 417-4 (c) The certified self-insurer shall deposit the security 417-5 with the state treasurer on behalf of the director. The state 417-6 treasurer may accept securities for deposit or withdrawal only on 417-7 the written order of the director. 417-8 (d) On receipt by the director of a request to renew, 417-9 submit, or increase or decrease a security deposit, a perfected 417-10 security interest is created in the certified self-insurer's assets 417-11 in favor of the director to the extent of any then unsecured 417-12 portion of the self-insurer's incurred liabilities for 417-13 compensation. That perfected security interest transfers to cash 417-14 or securities deposited by the self-insurer with the director after 417-15 the date of the request and may be released only on: 417-16 (1) the acceptance by the director of a surety bond or 417-17 irrevocable letter of credit for the full amount of the incurred 417-18 liabilities for compensation; or 417-19 (2) the return of cash or securities by the director. 417-20 (e) The certified self-insurer loses all right to, title to, 417-21 interest in, and control of the assets or obligations submitted or 417-22 deposited as security. The director may liquidate the deposit and 417-23 apply it to the certified self-insurer's incurred liabilities for 417-24 compensation either directly or through the association. 417-25 (f) If the director determines that a security deposit is 417-26 not immediately available for the payment of compensation, the 417-27 director shall determine the appropriate method of payment and 418-1 claims administration, which may include payment by the surety that 418-2 issued the bond or by the issuer of an irrevocable letter of 418-3 credit, and administration by a surety, an adjusting agency, the 418-4 association, or through any combination of those entities approved 418-5 by the director. (V.A.C.S. Arts. 8308-3.58(a), (b), (c), (d), (e), 418-6 (i).) 418-7 Sec. 407.066. EFFECT OF DISPUTE. (a) The director, after 418-8 notice to the concerned parties and an opportunity for a hearing, 418-9 shall resolve a dispute concerning the deposit, renewal, 418-10 termination, release, or return of all or part of the security, 418-11 liability arising out of the submission or failure to submit 418-12 security, or the adequacy of the security or reasonableness of the 418-13 administrative costs, including legal fees, that arises among: 418-14 (1) a surety; 418-15 (2) an issuer of an agreement of assumption and 418-16 guarantee of workers' compensation liabilities; 418-17 (3) an issuer of a letter of credit; 418-18 (4) a custodian of the security deposit; 418-19 (5) a certified self-insurer; or 418-20 (6) the association. 418-21 (b) A party aggrieved by a decision of the director is 418-22 entitled to judicial review. Venue for an appeal is in Travis 418-23 County. 418-24 (c) Payment of claims from the security deposit or by the 418-25 association may not be stayed pending the resolution of a dispute 418-26 under this section unless the court issues a determination staying 418-27 the payment of claims. (V.A.C.S. Arts. 8308-3.58(f), (g), (h).) 419-1 Sec. 407.067. EXCESS INSURANCE; REINSURANCE; ADMINISTRATIVE 419-2 VIOLATION. (a) Each applicant shall obtain excess insurance or 419-3 reinsurance to cover liability for losses not paid by the 419-4 self-insurer in an amount not less than the amount required by the 419-5 director. 419-6 (b) The director shall require excess insurance or 419-7 reinsurance in at least the amount of $5 million per occurrence. 419-8 (c) A certified self-insurer shall notify the director not 419-9 later than the 10th day after the date on which the certified 419-10 self-insurer has notice of the cancellation or termination of 419-11 excess insurance or reinsurance coverage required under this 419-12 section. 419-13 (d) A person commits a violation if the person violates 419-14 Subsection (c). A violation under this subsection is a Class B 419-15 administrative violation. Each day of noncompliance constitutes a 419-16 separate violation. (V.A.C.S. Arts. 8308-3.56(j), 8308-3.69.) 419-17 Sec. 407.068. GUARANTEE BY PARENT ORGANIZATION. If an 419-18 applicant for a certificate of authority to self-insure is a 419-19 subsidiary, the parent organization of the applicant must guarantee 419-20 the obligations imposed by this chapter. (V.A.C.S. Art. 419-21 8308-3.56(k).) 419-22 (Sections 407.069-407.080 reserved for expansion) 419-23 SUBCHAPTER E. POWERS AND DUTIES OF CERTIFIED SELF-INSURER 419-24 Sec. 407.081. ANNUAL REPORT. (a) Each certified 419-25 self-insurer shall file an annual report with the commission. The 419-26 commission shall prescribe the form of the report and shall furnish 419-27 blank forms for the preparation of the report to each certified 420-1 self-insurer. 420-2 (b) The report must: 420-3 (1) include payroll information, in the form 420-4 prescribed by this chapter and the commission; 420-5 (2) state the number of injuries sustained in the 420-6 three preceding calendar years; and 420-7 (3) indicate separately the amount paid during each 420-8 year for income benefits, medical benefits, death benefits, burial 420-9 benefits, and other proper expenses related to worker injuries. 420-10 (c) Each certified self-insurer shall file with the 420-11 commission as part of the annual report annual independent 420-12 financial statements that reflect the financial condition of the 420-13 self-insurer. The commission shall make a financial statement 420-14 filed under this subsection available for public review. 420-15 (d) The commission may require that the report include 420-16 additional financial and statistical information. 420-17 (e) The certified self-insurer shall present evidence in the 420-18 report of sufficient financial ability to meet all obligations 420-19 under this chapter. 420-20 (f) The report must include an estimate of future liability 420-21 for compensation. The estimate must be signed and sworn to by a 420-22 certified casualty actuary every third year, or more frequently if 420-23 required by the commission. 420-24 (g) If the commission considers it necessary, it may order a 420-25 certified self-insurer whose financial condition or claims record 420-26 warrants closer supervision to report as provided by this section 420-27 more often than annually. (V.A.C.S. Art. 8308-3.60.) 421-1 Sec. 407.082. EXAMINATION OF RECORDS; ADMINISTRATIVE 421-2 VIOLATION. (a) Each certified self-insurer shall maintain the 421-3 books, records, and payroll information necessary to compile the 421-4 annual report required under Section 407.081 and any other 421-5 information reasonably required by the commission. 421-6 (b) The certified self-insurer may maintain the books, 421-7 records, and payroll information in locations outside this state. 421-8 (c) The material maintained by the certified self-insurer 421-9 shall be open to examination by an authorized agent or 421-10 representative of the commission at reasonable times to ascertain 421-11 the correctness of the information. 421-12 (d) The examination may be conducted at any location, 421-13 including the commission's Austin offices, or, at the certified 421-14 self-insurer's option, in the offices of the certified 421-15 self-insurer. The certified self-insurer shall pay the reasonable 421-16 expenses, including travel expenses, of an inspector who conducts 421-17 an inspection at its offices. 421-18 (e) An unreasonable refusal on the part of a certified 421-19 self-insurer to make available for inspection the books, records, 421-20 payroll information, or other required information constitutes 421-21 grounds for the revocation of the certificate of authority to 421-22 self-insure and is a Class A administrative violation. Each day of 421-23 noncompliance constitutes a separate violation. (V.A.C.S. Art. 421-24 8308-3.61.) 421-25 Sec. 407.083. PAYMENT OF INSURANCE AGENT'S COMMISSION. This 421-26 chapter does not prohibit a certified self-insurer from paying a 421-27 commission to an insurance agent licensed in this state. (V.A.C.S. 422-1 Art. 8308-3.67.) 422-2 (Sections 407.084-407.100 reserved for expansion) 422-3 SUBCHAPTER F. FINANCING OF SELF-INSURANCE PROGRAM 422-4 Sec. 407.101. FUND. (a) The workers' compensation 422-5 self-insurance fund is a fund in the state treasury. The fund may 422-6 be used only for the regulation of certified self-insurers. 422-7 (b) The commission shall deposit the application fee for a 422-8 certificate of authority to self-insure in the state treasury to 422-9 the credit of the workers' compensation self-insurance fund. 422-10 (c) Any amount remaining in the fund at the end of a fiscal 422-11 year shall be used to reduce the regulatory fee assessed under 422-12 Section 407.102 in the succeeding fiscal year. (V.A.C.S. Arts. 422-13 8308-3.55(a) (part), 8308-3.62(b) (part).) 422-14 Sec. 407.102. REGULATORY FEE. (a) Each certified 422-15 self-insurer shall pay an annual fee to cover the administrative 422-16 costs incurred by the commission in implementing this chapter. 422-17 (b) The commission shall base the fee on the total amount of 422-18 income benefit payments made in the preceding calendar year. The 422-19 commission shall assess each certified self-insurer a pro rata 422-20 share based on the ratio that the total amount of income benefit 422-21 payments made by that certified self-insurer bears to the total 422-22 amount of income benefit payments made by all certified 422-23 self-insurers. (V.A.C.S. Art. 8308-3.62(a).) 422-24 Sec. 407.103. SELF-INSURER MAINTENANCE TAX; EFFECT ON 422-25 GENERAL MAINTENANCE TAX. (a) Each certified self-insurer shall 422-26 pay a self-insurer maintenance tax for the administration of the 422-27 commission. Not more than two percent of the total tax base of all 423-1 certified self-insurers, as computed under Subsection (b), may be 423-2 assessed for a maintenance tax under this section. 423-3 (b) To determine the tax base of a certified self-insurer 423-4 for purposes of this chapter, each certified self-insurer shall 423-5 report its payroll by individual workers' compensation risk code 423-6 classifications in its application for certification and in its 423-7 annual reports to the commission. The commission shall compute the 423-8 estimated manual premium for the certified self-insurer using the 423-9 workers' compensation insurance rates established by the State 423-10 Board of Insurance. The commission shall compute the certified 423-11 self-insurer's tax base by multiplying the estimated manual premium 423-12 by 0.75. 423-13 (c) The tax liability of a certified self-insurer under this 423-14 section is the tax base computed under Subsection (b) multiplied by 423-15 the rate assessed workers' compensation insurance companies under 423-16 Sections 403.002 and 403.003. 423-17 (d) In setting the rate of maintenance tax assessment for 423-18 insurance companies, the commission may not consider revenue or 423-19 expenditures related to the division. (V.A.C.S. Arts. 423-20 8308-3.53(c), 8308-3.63.) 423-21 Sec. 407.104. COLLECTION OF TAXES AND FEES; ADMINISTRATIVE 423-22 VIOLATION. (a) The regulatory fee imposed by Section 407.102 and 423-23 the taxes imposed by Section 407.103 are due on the 60th day after 423-24 the issuance of a certificate of authority to self-insure and on 423-25 the 60th day after each annual renewal date. 423-26 (b) The commission shall compute the fee and taxes of a 423-27 certified self-insurer and notify the certified self-insurer of the 424-1 amounts due. The taxes and fees shall be remitted to the 424-2 commission. 424-3 (c) The regulatory fee imposed under Section 407.102 shall 424-4 be deposited in the state treasury to the credit of the workers' 424-5 compensation self-insurance fund. The self-insurer maintenance tax 424-6 shall be deposited in the state treasury to the credit of the 424-7 commission. 424-8 (d) A certified self-insurer commits a violation if the 424-9 self-insurer does not pay the taxes and fee imposed under Sections 424-10 407.102 and 407.103 in a timely manner. A violation under this 424-11 subsection is a Class B administrative violation. Each day of 424-12 noncompliance constitutes a separate violation. 424-13 (e) If the certificate of authority to self-insure of a 424-14 certified self-insurer is terminated, the insurance commissioner or 424-15 the executive director of the commission shall proceed immediately 424-16 to collect taxes due under this subtitle, using legal process as 424-17 necessary. (V.A.C.S. Arts. 8308-3.62(b) (part), 8308-3.64, 424-18 8308-3.65(b).) 424-19 (Sections 407.105-407.120 reserved for expansion) 424-20 SUBCHAPTER G. TEXAS CERTIFIED SELF-INSURER GUARANTY ASSOCIATION 424-21 Sec. 407.121. GUARANTY ASSOCIATION. (a) The Texas 424-22 Certified Self-Insurer Guaranty Association provides for the 424-23 payment of workers' compensation insurance benefits for the injured 424-24 employees of an impaired employer. 424-25 (b) Each employer who desires to become a certified 424-26 self-insurer must be a member of the association. (V.A.C.S. 424-27 Art. 8308-3.70(a) (part).) 425-1 Sec. 407.122. BOARD OF DIRECTORS. (a) The members of the 425-2 association shall elect a board of directors. 425-3 (b) The board of directors is composed of the following 425-4 voting members: 425-5 (1) two certified self-insurers; 425-6 (2) one commission member representing wage earners; 425-7 (3) one commission member representing employers; 425-8 (4) the executive director of the commission; and 425-9 (5) the public counsel of the office of public 425-10 insurance counsel. 425-11 (c) The director serves as a nonvoting member of the board 425-12 of directors. (V.A.C.S. Art. 8308-3.70(a) (part).) 425-13 Sec. 407.123. BOARD RULES. (a) The board of directors may 425-14 adopt rules for the operation of the association. 425-15 (b) Rules adopted by the board are subject to the approval 425-16 of the commission. (V.A.C.S. Art. 8308-3.70(a) (part).) 425-17 Sec. 407.124. IMPAIRED EMPLOYER; ASSESSMENTS. (a) On 425-18 determination by the commission that a certified self-insurer has 425-19 become an impaired employer, the director shall secure release of 425-20 the security deposit required by this chapter and shall promptly 425-21 estimate: 425-22 (1) the amount of additional funds needed to 425-23 supplement the security deposit; 425-24 (2) the available assets of the impaired employer for 425-25 the purpose of making payment of all incurred liabilities for 425-26 compensation; and 425-27 (3) the funds maintained by the association for the 426-1 emergency payment of compensation liabilities. 426-2 (b) The director shall advise the board of directors of the 426-3 association of the estimate of necessary additional funds, and the 426-4 board shall promptly assess each certified self-insurer to collect 426-5 the required funds. An assessment against a certified self-insurer 426-6 shall be made in proportion to the ratio that the total paid income 426-7 benefit payment for the preceding reported calendar year for that 426-8 self-insurer bears to the total paid income benefit payment by all 426-9 certified self-insurers, except impaired employers, in this state 426-10 in that calendar year. 426-11 (c) A certified self-insurer designated as an impaired 426-12 employer is exempt from assessments beginning on the date of the 426-13 designation until the commission determines that the employer is no 426-14 longer impaired. (V.A.C.S. Arts. 8308-3.70(d), (e).) 426-15 Sec. 407.125. PAYMENT OF ASSESSMENTS. Each certified 426-16 self-insurer shall pay the amount of its assessment to the 426-17 association not later than the 30th day after the date on which the 426-18 division notifies the self-insurer of the assessment. A delinquent 426-19 assessment may be collected on behalf of the association through 426-20 suit. Venue is in Travis County. (V.A.C.S. Art. 8308-3.70(f).) 426-21 Sec. 407.126. TRUST FUND; FEE. (a) Each member of the 426-22 association shall be assessed a fee, based on total amount of 426-23 income benefits payments made in this state for the preceding 426-24 reported calendar year, to create, over a period of five years 426-25 beginning January 1, 1993, a Texas certified self-insurer guaranty 426-26 trust fund of at least $1 million for the emergency payment of the 426-27 compensation liabilities of an impaired employer. The fund may not 427-1 exceed $2 million. 427-2 (b) The assessment for the first year after an employer is 427-3 issued a certificate of authority to self-insure shall be based on 427-4 the income benefit payments paid by the employer's insurance 427-5 carrier on the employer's policy in the year before the certificate 427-6 was issued. 427-7 (c) The board of directors shall administer the trust fund 427-8 in accordance with rules adopted by the commission. (V.A.C.S. 427-9 Art. 8308-3.70(b).) 427-10 Sec. 407.127. PAYMENT OF BENEFITS THROUGH ASSOCIATION. (a) 427-11 If the commission determines that the payment of benefits and 427-12 claims administration shall be made through the association, the 427-13 association assumes the workers' compensation obligations of the 427-14 impaired employer and shall begin the payment of the obligations 427-15 for which it is liable not later than the 30th day after the date 427-16 of notification by the director. 427-17 (b) The association shall make payments to claimants whose 427-18 entitlement to benefits can be ascertained by the association. 427-19 (V.A.C.S. Art. 8308-3.70(c) (part).) 427-20 Sec. 407.128. POSSESSION OF SECURITY BY ASSOCIATION. On the 427-21 assumption of obligations by the association under the director's 427-22 determination, the association is entitled to immediate possession 427-23 of any deposited security, and the custodian, surety, or issuer of 427-24 an irrevocable letter of credit shall deliver the security to the 427-25 association with any accrued interest. (V.A.C.S. Art. 8308-3.70(c) 427-26 (part).) 427-27 Sec. 407.129. RELEASE OF CLAIM INFORMATION TO ASSOCIATION. 428-1 Information on a workers' compensation claim may be released to the 428-2 association as provided by Section 402.084(a), if the association 428-3 has assumed the obligations of an impaired employer. (V.A.C.S. 428-4 Art. 8308-3.70(l).) 428-5 Sec. 407.130. ASSOCIATION AS PARTY IN INTEREST. (a) The 428-6 association is a party in interest in a proceeding involving a 428-7 workers' compensation claim against an impaired employer whose 428-8 compensation obligations have been paid or assumed by the 428-9 association. 428-10 (b) The association has the same rights and defenses as the 428-11 impaired employer, including the right to: 428-12 (1) appear, defend, or appeal a claim; 428-13 (2) receive notice of, investigate, adjust, 428-14 compromise, settle, or pay a claim; and 428-15 (3) investigate, handle, or deny a claim. (V.A.C.S. 428-16 Art. 8308-3.70(k).) 428-17 Sec. 407.131. PREFERENCE. The benefit payments made by the 428-18 association or the surety under this chapter are entitled to the 428-19 same preference over other debts of the impaired employer or the 428-20 impaired employer's estate as provided by law to benefit payments 428-21 owed by the employer or employer's estate to the person entitled to 428-22 the benefits. (V.A.C.S. Art. 8308-3.70(h).) 428-23 Sec. 407.132. SPECIAL FUND. Funds advanced by the 428-24 association under this subchapter do not become assets of the 428-25 impaired employer but are a special fund advanced to the director, 428-26 trustee in bankruptcy, receiver, or other lawful conservator only 428-27 for the payment of compensation liabilities, including the costs of 429-1 claims administration and legal costs. (V.A.C.S. 429-2 Art. 8308-3.70(g).) 429-3 Sec. 407.133. SUSPENSION OR REVOCATION OF CERTIFICATE FOR 429-4 FAILURE TO PAY ASSESSMENT. (a) The commission, after notice and 429-5 hearing and by majority vote, may suspend or revoke the certificate 429-6 of authority to self-insure of a certified self-insurer who fails 429-7 to pay an assessment. The association promptly shall report such a 429-8 failure to the director. 429-9 (b) A certified self-insurer whose certificate of authority 429-10 to self-insure is revoked or surrendered remains liable for any 429-11 unpaid assessments made against an impaired employer who becomes an 429-12 impaired employer before the date of the revocation or surrender. 429-13 (c) Notwithstanding Section 407.127, the association is not 429-14 liable for the payment of any penalties assessed for any act or 429-15 omission on the part of any person other than the association. 429-16 (V.A.C.S. Arts. 8308-3.70(i), (j).) 429-17 CHAPTER 408. WORKERS' COMPENSATION BENEFITS 429-18 SUBCHAPTER A. GENERAL PROVISIONS 429-19 Sec. 408.001. EXCLUSIVE REMEDY; EXEMPLARY DAMAGES 429-20 Sec. 408.002. SURVIVAL OF CAUSE OF ACTION 429-21 Sec. 408.003. REIMBURSABLE EMPLOYER PAYMENTS 429-22 Sec. 408.004. REQUIRED MEDICAL EXAMINATIONS; ADMINISTRATIVE 429-23 VIOLATION 429-24 Sec. 408.005. SETTLEMENTS AND AGREEMENTS 429-25 Sec. 408.006. MENTAL TRAUMA INJURIES 429-26 Sec. 408.007. DATE OF INJURY FOR OCCUPATIONAL DISEASE 429-27 Sec. 408.008. COMPENSABILITY OF HEART ATTACKS 430-1 (Sections 408.009-408.020 reserved for expansion) 430-2 SUBCHAPTER B. MEDICAL BENEFITS 430-3 Sec. 408.021. ENTITLEMENT TO MEDICAL BENEFITS 430-4 Sec. 408.022. SELECTION OF DOCTOR 430-5 Sec. 408.023. LIST OF APPROVED DOCTORS 430-6 Sec. 408.024. NONCOMPLIANCE WITH SELECTION REQUIREMENTS 430-7 Sec. 408.025. REPORTS AND RECORDS REQUIRED FROM HEALTH CARE 430-8 PROVIDERS 430-9 Sec. 408.026. SPINAL SURGERY SECOND OPINION 430-10 Sec. 408.027. PAYMENT OF HEALTH CARE PROVIDER 430-11 Sec. 408.028. PHARMACEUTICAL SERVICES 430-12 (Sections 408.029-408.040 reserved for expansion) 430-13 SUBCHAPTER C. COMPUTATION OF AVERAGE WEEKLY WAGE 430-14 Sec. 408.041. AVERAGE WEEKLY WAGE 430-15 Sec. 408.042. AVERAGE WEEKLY WAGE FOR PART-TIME EMPLOYEE 430-16 Sec. 408.043. AVERAGE WEEKLY WAGE FOR SEASONAL EMPLOYEE 430-17 Sec. 408.044. AVERAGE WEEKLY WAGE FOR MINOR, APPRENTICE, 430-18 TRAINEE, OR STUDENT 430-19 Sec. 408.045. NONPECUNIARY WAGES 430-20 Sec. 408.046. SIMILAR EMPLOYEES, SERVICES, OR EMPLOYMENT 430-21 Sec. 408.047. STATE AVERAGE WEEKLY WAGE 430-22 (Sections 408.048-408.060 reserved for expansion) 430-23 SUBCHAPTER D. COMPUTATION OF BENEFITS 430-24 Sec. 408.061. MAXIMUM WEEKLY BENEFIT 430-25 Sec. 408.062. MINIMUM WEEKLY INCOME BENEFIT 430-26 Sec. 408.063. WAGE PRESUMPTIONS; ADMINISTRATIVE VIOLATION 430-27 Sec. 408.064. INTEREST ON ACCRUED BENEFITS 431-1 (Sections 408.065-408.080 reserved for expansion) 431-2 SUBCHAPTER E. INCOME BENEFITS IN GENERAL 431-3 Sec. 408.081. INCOME BENEFITS 431-4 Sec. 408.082. ACCRUAL OF RIGHT TO INCOME BENEFITS 431-5 Sec. 408.083. TERMINATION OF RIGHT TO TEMPORARY INCOME, 431-6 IMPAIRMENT INCOME, AND SUPPLEMENTAL INCOME 431-7 BENEFITS 431-8 Sec. 408.084. CONTRIBUTING INJURY 431-9 Sec. 408.085. ADVANCE OF BENEFITS FOR HARDSHIP 431-10 Sec. 408.086. COMMISSION DETERMINATION OF EXTENDED UNEMPLOYMENT 431-11 OR UNDEREMPLOYMENT 431-12 (Sections 408.087-408.100 reserved for expansion) 431-13 SUBCHAPTER F. TEMPORARY INCOME BENEFITS 431-14 Sec. 408.101. TEMPORARY INCOME BENEFITS 431-15 Sec. 408.102. DURATION OF TEMPORARY INCOME BENEFITS 431-16 Sec. 408.103. AMOUNT OF TEMPORARY INCOME BENEFITS 431-17 (Sections 408.104-408.120 reserved for expansion) 431-18 SUBCHAPTER G. IMPAIRMENT INCOME BENEFITS 431-19 Sec. 408.121. IMPAIRMENT INCOME BENEFITS 431-20 Sec. 408.122. ELIGIBILITY FOR IMPAIRMENT INCOME BENEFITS 431-21 Sec. 408.123. CERTIFICATION OF MAXIMUM MEDICAL IMPROVEMENT; 431-22 EVALUATION OF IMPAIRMENT RATING 431-23 Sec. 408.124. IMPAIRMENT RATING GUIDELINES 431-24 Sec. 408.125. DISPUTE AS TO IMPAIRMENT RATING 431-25 Sec. 408.126. AMOUNT OF IMPAIRMENT INCOME BENEFITS 431-26 Sec. 408.127. REDUCTION OF IMPAIRMENT INCOME BENEFITS 431-27 Sec. 408.128. COMMUTATION OF IMPAIRMENT INCOME BENEFITS 432-1 Sec. 408.129. ACCELERATION OF IMPAIRMENT INCOME BENEFITS 432-2 (Sections 408.130-408.140 reserved for expansion) 432-3 SUBCHAPTER H. SUPPLEMENTAL INCOME BENEFITS 432-4 Sec. 408.141. AWARD OF SUPPLEMENTAL INCOME BENEFITS 432-5 Sec. 408.142. SUPPLEMENTAL INCOME BENEFITS 432-6 Sec. 408.143. EMPLOYEE STATEMENT 432-7 Sec. 408.144. COMPUTATION OF SUPPLEMENTAL INCOME BENEFITS 432-8 Sec. 408.145. PAYMENT OF SUPPLEMENTAL INCOME BENEFITS 432-9 Sec. 408.146. TERMINATION OF SUPPLEMENTAL INCOME BENEFITS; 432-10 REINITIATION 432-11 Sec. 408.147. CONTEST OF SUPPLEMENTAL INCOME BENEFITS BY 432-12 INSURANCE CARRIER; ATTORNEY'S FEES 432-13 Sec. 408.148. EMPLOYEE DISCHARGE AFTER TERMINATION 432-14 Sec. 408.149. STATUS REVIEW; BENEFIT REVIEW CONFERENCE 432-15 Sec. 408.150. VOCATIONAL REHABILITATION 432-16 (Sections 408.151-408.160 reserved for expansion) 432-17 SUBCHAPTER I. LIFETIME INCOME BENEFITS 432-18 Sec. 408.161. LIFETIME INCOME BENEFITS 432-19 Sec. 408.162. SUBSEQUENT INJURY FUND BENEFITS 432-20 (Sections 408.163-408.180 reserved for expansion) 432-21 SUBCHAPTER J. DEATH AND BURIAL BENEFITS 432-22 Sec. 408.181. DEATH BENEFITS 432-23 Sec. 408.182. DISTRIBUTION OF DEATH BENEFITS 432-24 Sec. 408.183. DURATION OF DEATH BENEFITS 432-25 Sec. 408.184. REDISTRIBUTION OF DEATH BENEFITS 432-26 Sec. 408.185. EFFECT OF BENEFICIARY DISPUTE; ATTORNEY'S 432-27 FEES 433-1 Sec. 408.186. BURIAL BENEFITS 433-2 Sec. 408.187. AUTOPSY 433-3 (Sections 408.188-408.200 reserved for expansion) 433-4 SUBCHAPTER K. PROTECTION OF RIGHTS TO BENEFITS 433-5 Sec. 408.201. BENEFITS EXEMPT FROM LEGAL PROCESS 433-6 Sec. 408.202. ASSIGNABILITY OF BENEFITS 433-7 Sec. 408.203. ALLOWABLE LIENS 433-8 (Sections 408.204-408.220 reserved for expansion) 433-9 SUBCHAPTER L. ATTORNEY'S FEES IN WORKERS' COMPENSATION 433-10 BENEFIT MATTERS 433-11 Sec. 408.221. ATTORNEY'S FEES PAID TO CLAIMANT'S COUNSEL 433-12 Sec. 408.222. ATTORNEY'S FEES PAID TO DEFENSE COUNSEL 433-13 CHAPTER 408. WORKERS' COMPENSATION BENEFITS 433-14 SUBCHAPTER A. GENERAL PROVISIONS 433-15 Sec. 408.001. EXCLUSIVE REMEDY; EXEMPLARY DAMAGES. (a) 433-16 Recovery of workers' compensation benefits is the exclusive remedy 433-17 of an employee covered by workers' compensation insurance coverage 433-18 or a legal beneficiary against the employer or an agent or employee 433-19 of the employer for the death of or a work-related injury sustained 433-20 by the employee. 433-21 (b) This section does not prohibit the recovery of exemplary 433-22 damages by the surviving spouse or heirs of the body of a deceased 433-23 employee whose death was caused by an intentional act or omission 433-24 of the employer or by the employer's gross negligence. 433-25 (c) In this section, "gross negligence" has the meaning 433-26 assigned by Section 41.001, Civil Practice and Remedies Code. 433-27 (V.A.C.S. Art. 8308-4.01.) 434-1 Sec. 408.002. SURVIVAL OF CAUSE OF ACTION. A right of 434-2 action survives in a case based on a compensable injury that 434-3 results in the employee's death. (V.A.C.S. Art. 8308-4.03.) 434-4 Sec. 408.003. REIMBURSABLE EMPLOYER PAYMENTS. (a) After an 434-5 injury, an employer may: 434-6 (1) initiate benefit payments, including medical 434-7 benefits; or 434-8 (2) on the written request or agreement of the 434-9 employee, supplement income benefits paid by the insurance carrier 434-10 by an amount that does not exceed the amount computed by 434-11 subtracting the amount of the income benefit payments from the 434-12 employee's net preinjury wages. 434-13 (b) If an injury is found to be compensable and an insurance 434-14 carrier initiates compensation, the insurance carrier shall 434-15 reimburse the employer for the amount of benefits paid by the 434-16 employer to which the employee was entitled under this subtitle. 434-17 Payments that are not reimbursed or reimbursable under this section 434-18 may be reimbursed under Section 408.127. 434-19 (c) The employer shall notify the commission and the 434-20 insurance carrier on forms prescribed by the commission of the 434-21 initiation of and amount of payments made under this section. 434-22 (d) Employer payments made under this section: 434-23 (1) may not be construed as an admission of 434-24 compensability; and 434-25 (2) do not affect the payment of benefits from another 434-26 source. 434-27 (e) If an employer does not notify the commission of the 435-1 injury in compliance with Section 409.005, the employer waives the 435-2 right to reimbursement under this section. (V.A.C.S. Arts. 435-3 8308-4.06(a), (b), (c), (d), (f).) 435-4 Sec. 408.004. REQUIRED MEDICAL EXAMINATIONS; ADMINISTRATIVE 435-5 VIOLATION. (a) The commission may require an employee to submit 435-6 to medical examinations to resolve any question about: 435-7 (1) the appropriateness of the health care received by 435-8 the employee; 435-9 (2) the impairment caused by the compensable injury; 435-10 (3) the attainment of maximum medical improvement; or 435-11 (4) similar issues. 435-12 (b) The commission may require an employee to submit to a 435-13 medical examination at the request of the insurance carrier, but 435-14 only after the insurance carrier has attempted and failed to 435-15 receive the permission and concurrence of the employee for the 435-16 examination. The insurance carrier is entitled to the examination 435-17 only once in a 180-day period. A subsequent examination must be 435-18 performed by the same doctor unless otherwise approved by the 435-19 commission. 435-20 (c) The insurance carrier shall pay for: 435-21 (1) an examination required under Subsection (a) or 435-22 (b); and 435-23 (2) the reasonable expense incident to the employee in 435-24 submitting to the examination. 435-25 (d) An injured employee is entitled to have a doctor of the 435-26 employee's choice present at an examination required by the 435-27 commission at the request of an insurance carrier. The insurance 436-1 carrier shall pay a fee set by the commission to the doctor 436-2 selected by the employee. 436-3 (e) If the report of a doctor selected by an insurance 436-4 carrier indicates that the employee can return to work immediately, 436-5 the commission shall schedule a benefit review conference on the 436-6 next available docket. The insurance carrier may not suspend 436-7 medical or income benefit payments pending the benefit review 436-8 conference. 436-9 (f) An employee who, without good cause, fails or refuses to 436-10 appear at the time scheduled for an examination under Subsection 436-11 (a) or (b) commits a violation. A violation under this subsection 436-12 is a Class D administrative violation. (V.A.C.S. Art. 8308-4.16.) 436-13 Sec. 408.005. SETTLEMENTS AND AGREEMENTS. (a) A settlement 436-14 may not provide for payment of benefits in a lump sum except as 436-15 provided by Section 408.128. 436-16 (b) An employee's right to medical benefits as provided by 436-17 Section 408.021 may not be limited or terminated. 436-18 (c) A settlement or agreement resolving an issue of 436-19 impairment: 436-20 (1) may not be made before the employee reaches 436-21 maximum medical improvement; and 436-22 (2) must adopt an impairment rating using the 436-23 impairment rating guidelines described by Section 408.124. 436-24 (d) A settlement must be signed by the director of the 436-25 division of hearings and all parties to the dispute. 436-26 (e) The director of the division of hearings shall approve a 436-27 settlement if the director is satisfied that: 437-1 (1) the settlement accurately reflects the agreement 437-2 between the parties; 437-3 (2) the settlement reflects adherence to all 437-4 appropriate provisions of law and the policies of the commission; 437-5 and 437-6 (3) under the law and facts, the settlement is in the 437-7 best interest of the claimant. 437-8 (f) A settlement that is not approved or rejected before the 437-9 16th day after the date the settlement is submitted to the director 437-10 of the division of hearings is considered to be approved by the 437-11 director on that date. 437-12 (g) A settlement takes effect on the date it is approved by 437-13 the director of the division of hearings. 437-14 (h) A party to a settlement may withdraw acceptance of the 437-15 settlement at any time before its effective date. (V.A.C.S. Art. 437-16 8308-4.33.) 437-17 Sec. 408.006. MENTAL TRAUMA INJURIES. (a) It is the 437-18 express intent of the legislature that nothing in this subtitle 437-19 shall be construed to limit or expand recovery in cases of mental 437-20 trauma injuries. 437-21 (b) A mental or emotional injury that arises principally 437-22 from a legitimate personnel action, including a transfer, 437-23 promotion, demotion, or termination, is not a compensable injury 437-24 under this subtitle. (V.A.C.S. Art. 8308-4.02.) 437-25 Sec. 408.007. Date of Injury for Occupational Disease. For 437-26 purposes of this subtitle, the date of injury for an occupational 437-27 disease is the date on which the employee knew or should have known 438-1 that the disease may be related to the employment. (V.A.C.S. 438-2 Art. 8308-4.14.) 438-3 Sec. 408.008. Compensability of Heart Attacks. A heart 438-4 attack is a compensable injury under this subtitle only if: 438-5 (1) the attack can be identified as: 438-6 (A) occurring at a definite time and place; and 438-7 (B) caused by a specific event occurring in the 438-8 course and scope of the employee's employment; 438-9 (2) the preponderance of the medical evidence 438-10 regarding the attack indicates that the employee's work rather than 438-11 the natural progression of a preexisting heart condition or disease 438-12 was a substantial contributing factor of the attack; and 438-13 (3) the attack was not triggered solely by emotional 438-14 or mental stress factors, unless it was precipitated by a sudden 438-15 stimulus. (V.A.C.S. Art. 8308-4.15.) 438-16 (Sections 408.009-408.020 reserved for expansion) 438-17 SUBCHAPTER B. MEDICAL BENEFITS 438-18 Sec. 408.021. ENTITLEMENT TO MEDICAL BENEFITS. (a) An 438-19 employee who sustains a compensable injury is entitled to all 438-20 health care reasonably required by the nature of the injury as and 438-21 when needed. The employee is specifically entitled to health care 438-22 that: 438-23 (1) cures or relieves the effects naturally resulting 438-24 from the compensable injury; 438-25 (2) promotes recovery; or 438-26 (3) enhances the ability of the employee to return to 438-27 or retain employment. 439-1 (b) Medical benefits are payable from the date of the 439-2 compensable injury. 439-3 (c) Except in an emergency, all health care must be approved 439-4 or recommended by the employee's treating doctor. 439-5 (d) An insurance carrier's liability for medical benefits 439-6 may not be limited or terminated by agreement or settlement. 439-7 (V.A.C.S. Art. 8308-4.61.) 439-8 Sec. 408.022. SELECTION OF DOCTOR. (a) Except in an 439-9 emergency, the commission shall require an employee to receive 439-10 medical treatment from a doctor chosen from a list of doctors 439-11 approved by the commission. A doctor may perform only those 439-12 procedures that are within the scope of the practice for which the 439-13 doctor is licensed. The employee is entitled to the employee's 439-14 initial choice of a doctor from the commission's list. 439-15 (b) If an employee is dissatisfied with the initial choice 439-16 of a doctor from the commission's list, the employee may notify the 439-17 commission and request authority to select an alternate doctor. 439-18 The notification must be in writing stating the reasons for the 439-19 change, except notification may be by telephone when a medical 439-20 necessity exists for immediate change. 439-21 (c) The commission shall prescribe criteria to be used by 439-22 the commission in granting the employee authority to select an 439-23 alternate doctor. The criteria may include: 439-24 (1) whether treatment by the current doctor is 439-25 medically inappropriate; 439-26 (2) the professional reputation of the doctor; 439-27 (3) whether the employee is receiving appropriate 440-1 medical care to reach maximum medical improvement; and 440-2 (4) whether a conflict exists between the employee and 440-3 the doctor to the extent that the doctor-patient relationship is 440-4 jeopardized or impaired. 440-5 (d) A change of doctor may not be made to secure a new 440-6 impairment rating or medical report. 440-7 (e) For purposes of this section, the following is not a 440-8 selection of an alternate doctor: 440-9 (1) a referral made by the doctor chosen by the 440-10 employee if the referral is medically reasonable and necessary; 440-11 (2) the receipt of services ancillary to surgery; 440-12 (3) the obtaining of a second or subsequent opinion 440-13 only on the appropriateness of the diagnosis or treatment; 440-14 (4) the selection of a doctor because the original 440-15 doctor: 440-16 (A) dies; 440-17 (B) retires; or 440-18 (C) becomes unavailable or unable to provide 440-19 medical care to the employee; or 440-20 (5) a change of doctors required because of a change 440-21 of residence by the employee. (V.A.C.S. Arts. 8308-1.03(17) 440-22 (part), 8308-4.63(b), (c), (d), (e), 8308-4.64.) 440-23 Sec. 408.023. LIST OF APPROVED DOCTORS. (a) Each doctor 440-24 licensed in this state on January 1, 1993, is on the commission's 440-25 list of approved doctors unless subsequently deleted and not 440-26 reinstated. The name of a doctor shall be placed on the list of 440-27 approved doctors when that doctor becomes licensed in this state. 441-1 A doctor not licensed in this state but licensed in another state 441-2 or jurisdiction who treats employees may apply to the commission to 441-3 be included on the list. 441-4 (b) The commission shall establish criteria for deleting a 441-5 doctor from the list of approved doctors. The criteria may include 441-6 anything the commission considers relevant, including: 441-7 (1) sanctions of the doctor by the commission for 441-8 violations of Chapter 415; 441-9 (2) sanctions by the Medicare or Medicaid program for: 441-10 (A) substandard medical care; 441-11 (B) overcharging; or 441-12 (C) overutilization of medical services; 441-13 (3) evidence from the commission's medical records 441-14 that the doctor's charges, fees, diagnoses, or treatments are 441-15 substantially different from those the commission finds to be fair 441-16 and reasonable; and 441-17 (4) suspension of the doctor's license by the 441-18 appropriate licensing authority. 441-19 (c) The commission shall establish procedures for a doctor 441-20 to apply for reinstatement to the list. (V.A.C.S. Arts. 441-21 8308-4.63(f), (g), (h).) 441-22 Sec. 408.024. NONCOMPLIANCE WITH SELECTION REQUIREMENTS. 441-23 Except as otherwise provided, and after notice and an opportunity 441-24 for hearing, the commission may relieve an insurance carrier of 441-25 liability for health care that is furnished by a health care 441-26 provider or another person selected in a manner inconsistent with 441-27 the requirements of this subchapter. (V.A.C.S. Art. 8308-4.65.) 442-1 Sec. 408.025. REPORTS AND RECORDS REQUIRED FROM HEALTH CARE 442-2 PROVIDERS. (a) The commission by rule shall adopt requirements 442-3 for reports and records that are required to be filed with the 442-4 commission or provided to the injured employee, the employee's 442-5 attorney, or the insurance carrier by a health care provider. 442-6 (b) The commission by rule shall adopt requirements for 442-7 reports and records that are to be made available by a health care 442-8 provider to another health care provider to prevent unnecessary 442-9 duplication of tests and examinations. 442-10 (c) The treating doctor is responsible for maintaining 442-11 efficient utilization of health care. 442-12 (d) On the request of an injured employee, the employee's 442-13 attorney, or the insurance carrier, a health care facility shall 442-14 furnish records relating to treatment or hospitalization for which 442-15 compensation is being sought. The commission may regulate the 442-16 charge for furnishing a report or record, but the charge may not be 442-17 less than the fair and reasonable charge for furnishing the report 442-18 or record. A health care facility may disclose to the insurance 442-19 carrier of an affected employer records relating to the diagnosis 442-20 or treatment of the injured employee without the authorization of 442-21 the injured employee to determine the amount of payment or the 442-22 entitlement to payment. (V.A.C.S. Art. 8308-4.66.) 442-23 Sec. 408.026. SPINAL SURGERY SECOND OPINION. (a) Except in 442-24 a medical emergency, an insurance carrier is liable for medical 442-25 costs related to spinal surgery only if: 442-26 (1) before surgery, the employee obtains from a doctor 442-27 approved by the insurance carrier or the commission a second 443-1 opinion that concurs with the treating doctor's recommendation; 443-2 (2) the insurance carrier waives the right to an 443-3 examination or fails to request an examination before the 15th day 443-4 after the date of the notification that surgery is recommended; or 443-5 (3) the commission determines that extenuating 443-6 circumstances exist and orders payment for surgery. 443-7 (b) The commission shall adopt rules necessary to ensure 443-8 that an examination required under this section is performed 443-9 without undue delay. (V.A.C.S. Art. 8308-4.67.) 443-10 Sec. 408.027. Payment of Health Care Provider. (a) An 443-11 insurance carrier shall pay the fee charged for a service rendered 443-12 by a health care provider not later than the 45th day after the 443-13 date the insurance carrier receives the charge unless the amount of 443-14 the payment or the entitlement to payment is disputed. 443-15 (b) If an insurance carrier disputes the amount charged by a 443-16 health care provider and requests an audit of the services 443-17 rendered, the insurance carrier shall pay 50 percent of the amount 443-18 charged by the health care provider not later than the 45th day 443-19 after the date the insurance carrier receives the statement of 443-20 charge. 443-21 (c) If an insurance carrier denies liability or the health 443-22 care provider's entitlement to payment and an accident or health 443-23 insurance company provides benefits to the employee for medical or 443-24 other health care services, the right to recover that amount may be 443-25 assigned by the employee to the accident or health insurance 443-26 company. 443-27 (d) If an insurance carrier disputes the amount of payment 444-1 or the health care provider's entitlement to payment, the insurance 444-2 carrier shall send to the commission, the health care provider, and 444-3 the injured employee a report that sufficiently explains the 444-4 reasons for the reduction or denial of payment for health care 444-5 services provided to the employee. The insurance carrier is 444-6 entitled to a hearing as provided by Section 413.031(d). (V.A.C.S. 444-7 Art. 8308-4.68.) 444-8 Sec. 408.028. Pharmaceutical Services. (a) A health care 444-9 practitioner providing care to an employee under this subchapter 444-10 shall prescribe for the employee any necessary prescription drugs 444-11 in accordance with applicable state law. 444-12 (b) An insurance carrier may not require an employee to use 444-13 pharmaceutical services designated by the carrier. (V.A.C.S. 444-14 Art. 8308-4.69.) 444-15 (Sections 408.029-408.040 reserved for expansion) 444-16 SUBCHAPTER C. COMPUTATION OF AVERAGE WEEKLY WAGE 444-17 Sec. 408.041. AVERAGE WEEKLY WAGE. (a) Except as otherwise 444-18 provided by this subtitle, the average weekly wage of an employee 444-19 who has worked for the employer for at least the 13 consecutive 444-20 weeks immediately preceding an injury is computed by dividing the 444-21 sum of the wages paid in the 13 consecutive weeks immediately 444-22 preceding the date of the injury by 13. 444-23 (b) The average weekly wage of an employee whose wage at the 444-24 time of injury has not been fixed or cannot be determined or who 444-25 has worked for the employer for less than the 13 weeks immediately 444-26 preceding the injury equals: 444-27 (1) the usual wage that the employer pays a similar 445-1 employee for similar services; or 445-2 (2) if a similar employee does not exist, the usual 445-3 wage paid in that vicinity for the same or similar services 445-4 provided for remuneration. 445-5 (c) If Subsection (a) or (b) cannot reasonably be applied 445-6 because the employee's employment has been irregular or because the 445-7 employee has lost time from work during the 13-week period 445-8 immediately preceding the injury because of illness, weather, or 445-9 another cause beyond the control of the employee, the commission 445-10 may determine the employee's average weekly wage by any method that 445-11 the commission considers fair, just, and reasonable to all parties 445-12 and consistent with the methods established under this section. 445-13 (V.A.C.S. Arts. 8308-4.10(a), (b), (g).) 445-14 Sec. 408.042. AVERAGE WEEKLY WAGE FOR PART-TIME EMPLOYEE. 445-15 (a) The average weekly wage of a part-time employee who limits the 445-16 employee's work to less than full-time hours or a full-time 445-17 workweek as a regular course of that employee's conduct is computed 445-18 as provided by Section 408.041. 445-19 (b) For part-time employees not covered by Subsection (a), 445-20 the average weekly wage: 445-21 (1) for determining temporary income benefits is 445-22 computed as provided by Section 408.041; and 445-23 (2) for determining impairment income benefits, 445-24 supplemental income benefits, lifetime income benefits, and death 445-25 benefits is computed as follows: 445-26 (A) if the employee has worked for the employer 445-27 for at least the 13 weeks immediately preceding the date of the 446-1 injury, the average weekly wage is computed by dividing the sum of 446-2 the wages paid in the 13 consecutive weeks immediately preceding 446-3 the date of the injury by 13 and adjusting that amount to the 446-4 weekly wage level the employee would have attained by working a 446-5 full-time workweek at the same rate of pay; or 446-6 (B) if the employee has worked for the employer 446-7 for less than 13 weeks immediately preceding the date of the 446-8 injury, the average weekly wage is equal to: 446-9 (i) the weekly wage that the employer pays 446-10 a similar employee for similar services in full-time employment; or 446-11 (ii) if a similar employee does not exist, 446-12 the usual wage paid in that vicinity for the same or similar 446-13 services provided for compensation in full-time employment. 446-14 (c) In this section, "part-time employee" means an employee 446-15 who, at the time of the injury, was working less than the full-time 446-16 hours or full-time workweek of similar employees in the same 446-17 employment, whether for the same or a different employer. 446-18 (V.A.C.S. Art. 8308-4.10(c).) 446-19 Sec. 408.043. AVERAGE WEEKLY WAGE FOR SEASONAL EMPLOYEE. 446-20 (a) For determining the amount of temporary income benefits of a 446-21 seasonal employee, the average weekly wage of the employee is 446-22 computed as provided by Section 408.041 and is adjusted as often as 446-23 necessary to reflect the wages the employee could reasonably have 446-24 expected to earn during the period that temporary income benefits 446-25 are paid. 446-26 (b) For determining the amount of impairment income 446-27 benefits, supplemental income benefits, lifetime income benefits, 447-1 or death benefits of a seasonal employee, the average weekly wage 447-2 of the employee is computed by dividing the amount of total wages 447-3 earned by the employee during the 12 months immediately preceding 447-4 the date of the injury by 50. 447-5 (c) If, for good reason, the commission determines that 447-6 computing the average weekly wage for a seasonal employee as 447-7 provided by this section is impractical, the commission shall 447-8 compute the average weekly wage as of the time of the injury in a 447-9 manner that is fair and just to both parties. 447-10 (d) In this section, "seasonal employee" means an employee 447-11 who, as a regular course of the employee's conduct, engages in 447-12 seasonal or cyclical employment that does not continue throughout 447-13 the entire year. (V.A.C.S. Art. 8308-4.10(d).) 447-14 Sec. 408.044. AVERAGE WEEKLY WAGE FOR MINOR, APPRENTICE, 447-15 TRAINEE, OR STUDENT. (a) For computing impairment income 447-16 benefits, supplemental income benefits, lifetime income benefits, 447-17 or death benefits, the average weekly wage of an employee shall be 447-18 adjusted to reflect the level of expected wages during the period 447-19 that the benefits are payable if: 447-20 (1) the employee is a minor, apprentice, trainee, or 447-21 student at the time of the injury; 447-22 (2) the employee's employment or earnings at the time 447-23 of the injury are limited primarily because of apprenticeship, 447-24 continuing formal training, or education intended to enhance the 447-25 employee's future wages; and 447-26 (3) the employee's wages would reasonably be expected 447-27 to change because of a change of employment during that period. 448-1 (b) An adjustment under Subsection (a) may not consider 448-2 expected wage levels for a period occurring after the third 448-3 anniversary of the date of the injury. (V.A.C.S. Art. 448-4 8308-4.10(e).) 448-5 Sec. 408.045. NONPECUNIARY WAGES. The commission may not 448-6 include nonpecuniary wages in computing an employee's average 448-7 weekly wage during a period in which the employer continues to 448-8 provide the nonpecuniary wages. (V.A.C.S. Art. 8308-4.10(i).) 448-9 Sec. 408.046. SIMILAR EMPLOYEES, SERVICES, OR EMPLOYMENT. 448-10 For purposes of this subchapter and Subchapter D, the determination 448-11 as to whether employees, services, or employment are the same or 448-12 similar must include consideration of: 448-13 (1) the training and experience of the employees; 448-14 (2) the nature of the work; and 448-15 (3) the number of hours normally worked. (V.A.C.S. 448-16 Art. 8308-4.10(h).) 448-17 Sec. 408.047. STATE AVERAGE WEEKLY WAGE. The state average 448-18 weekly wage equals the annual average of the average weekly wage of 448-19 manufacturing production workers in this state, as determined by 448-20 the Texas Employment Commission. (V.A.C.S. Art. 8308-4.11(b).) 448-21 (Sections 408.048-408.060 reserved for expansion) 448-22 SUBCHAPTER D. COMPUTATION OF BENEFITS 448-23 Sec. 408.061. MAXIMUM WEEKLY BENEFIT. (a) A weekly 448-24 temporary income benefit may not exceed 100 percent of the state 448-25 average weekly wage under Section 408.047 rounded to the nearest 448-26 whole dollar. 448-27 (b) A weekly impairment income benefit may not exceed 70 449-1 percent of the state average weekly wage rounded to the nearest 449-2 whole dollar. 449-3 (c) A weekly supplemental income benefit may not exceed 70 449-4 percent of the state average weekly wage rounded to the nearest 449-5 whole dollar. 449-6 (d) A weekly death benefit may not exceed 100 percent of the 449-7 state average weekly wage rounded to the nearest whole dollar. 449-8 (e) A weekly lifetime income benefit may not exceed 100 449-9 percent of the state average weekly wage rounded to the nearest 449-10 whole dollar. 449-11 (f) The commission shall compute the maximum weekly income 449-12 benefits for each state fiscal year not later than September 1 of 449-13 each year. 449-14 (g) The maximum weekly income benefit in effect on the date 449-15 of injury is applicable for the entire time that the benefit is 449-16 payable. (V.A.C.S. Arts. 8308-4.11(a), (c), (d).) 449-17 Sec. 408.062. MINIMUM WEEKLY INCOME BENEFIT. (a) The 449-18 minimum weekly income benefit is 15 percent of the state average 449-19 weekly wage as determined under Section 408.047, rounded to the 449-20 nearest whole dollar. 449-21 (b) The commission shall compute the minimum weekly income 449-22 benefit for each state fiscal year not later than September 1 of 449-23 each year. 449-24 (c) The minimum weekly income benefit in effect on the date 449-25 of injury is applicable for the entire time that income benefits 449-26 are payable. (V.A.C.S. Art. 8308-4.12.) 449-27 Sec. 408.063. WAGE PRESUMPTIONS; ADMINISTRATIVE VIOLATION. 450-1 (a) To expedite the payment of income benefits, the commission may 450-2 by rule establish reasonable presumptions relating to the wages 450-3 earned by an employee, including the presumption that an employee's 450-4 last paycheck accurately reflects the employee's usual wage. 450-5 (b) Not later than the 30th day after the date the employer 450-6 receives notice of an injury to the employee, the employer shall 450-7 file a wage statement showing the amount of all wages paid to the 450-8 employee. 450-9 (c) An employer who fails to file a wage statement in 450-10 accordance with Subsection (b) commits a violation. A violation 450-11 under this subsection is a Class D administrative violation. 450-12 (V.A.C.S. Art. 8308-4.10(f).) 450-13 Sec. 408.064. INTEREST ON ACCRUED BENEFITS. (a) An order 450-14 to pay income or death benefits accrued but unpaid must include 450-15 interest on the amount of compensation due at the rate provided by 450-16 Section 401.023. 450-17 (b) Accrued but unpaid compensation and interest shall be 450-18 paid in a lump sum. (V.A.C.S. Art. 8308-4.13.) 450-19 (Sections 408.065-408.080 reserved for expansion) 450-20 SUBCHAPTER E. INCOME BENEFITS IN GENERAL 450-21 Sec. 408.081. INCOME BENEFITS. (a) An employee is entitled 450-22 to income benefits as provided in this chapter. 450-23 (b) Except as otherwise provided by this subtitle, income 450-24 benefits shall be paid weekly as and when they accrue without order 450-25 from the commission. 450-26 (c) An employee's entitlement to income benefits under this 450-27 chapter terminates on the death of the employee. An interest in 451-1 future income benefits does not survive after the employee's death. 451-2 (V.A.C.S. Art. 8308-4.21.) 451-3 Sec. 408.082. ACCRUAL OF RIGHT TO INCOME BENEFITS. (a) 451-4 Income benefits may not be paid under this subtitle for an injury 451-5 that does not result in disability for at least one week. 451-6 (b) If the disability continues for longer than one week, 451-7 weekly income benefits begin to accrue on the eighth day after the 451-8 date of the injury. If the disability does not begin at once after 451-9 the injury occurs or within eight days of the occurrence but does 451-10 result subsequently, weekly income benefits accrue on the eighth 451-11 day after the date on which the disability began. 451-12 (c) If the disability continues for four weeks or longer 451-13 after the date it begins, compensation shall be computed from the 451-14 date the disability begins. 451-15 (d) This section does not preclude the recovery of medical 451-16 benefits as provided by Subchapter B. (V.A.C.S. Art. 8308-4.22.) 451-17 Sec. 408.083. TERMINATION OF RIGHT TO TEMPORARY INCOME, 451-18 IMPAIRMENT INCOME, AND SUPPLEMENTAL INCOME BENEFITS. An employee's 451-19 eligibility for temporary income benefits, impairment income 451-20 benefits, and supplemental income benefits terminates on the 451-21 expiration of 401 weeks after the date of injury. (V.A.C.S. Art. 451-22 8308-4.29.) 451-23 Sec. 408.084. CONTRIBUTING INJURY. (a) At the request of 451-24 the insurance carrier, the commission may order that impairment 451-25 income benefits and supplemental income benefits be reduced in a 451-26 proportion equal to the proportion of a documented impairment that 451-27 resulted from earlier compensable injuries. 452-1 (b) The commission shall consider the cumulative impact of 452-2 the compensable injuries on the employee's overall impairment in 452-3 determining a reduction under this section. 452-4 (c) If the combination of the compensable injuries results 452-5 in an injury compensable under Section 408.161, the benefits for 452-6 that injury shall be paid as provided by Section 408.162. 452-7 (V.A.C.S. Art. 8308-4.30.) 452-8 Sec. 408.085. ADVANCE OF BENEFITS FOR HARDSHIP. (a) If 452-9 there is a likelihood that income benefits will be paid, the 452-10 commission may grant an employee suffering financial hardship 452-11 advances as provided by this subtitle against the amount of income 452-12 benefits to which the employee may be entitled. An advance may be 452-13 ordered before or after the employee attains maximum medical 452-14 improvement. An insurance carrier shall pay the advance ordered. 452-15 (b) An employee must apply to the commission for an advance 452-16 on a form prescribed by the commission. The application must 452-17 describe the hardship that is the grounds for the advance. 452-18 (c) An advance under this section may not exceed an amount 452-19 equal to four times the maximum weekly benefit for temporary income 452-20 benefits as computed in Section 408.061. The commission may not 452-21 grant more than three advances to a particular employee based on 452-22 the same injury. 452-23 (d) The commission may not grant an advance to an employee 452-24 who is receiving, on the date of the application under Subsection 452-25 (b), at least 90 percent of the employee's net preinjury wages 452-26 under Section 408.003 or 408.129. (V.A.C.S. Art. 8308-4.32.) 452-27 Sec. 408.086. COMMISSION DETERMINATION OF EXTENDED 453-1 UNEMPLOYMENT OR UNDEREMPLOYMENT. (a) During the period that 453-2 impairment income benefits or supplemental income benefits are 453-3 being paid to an employee, the commission shall determine at least 453-4 annually whether any extended unemployment or underemployment is a 453-5 direct result of the employee's impairment. 453-6 (b) To make this determination, the commission may require 453-7 periodic reports from the employee and the insurance carrier and, 453-8 at the insurance carrier's expense, may require physical or other 453-9 examinations, vocational assessments, or other tests or diagnoses 453-10 necessary to perform its duty under this section and Subchapter H. 453-11 (V.A.C.S. Art. 8308-4.28(h).) 453-12 (Sections 408.087-408.100 reserved for expansion) 453-13 SUBCHAPTER F. TEMPORARY INCOME BENEFITS 453-14 Sec. 408.101. TEMPORARY INCOME BENEFITS. (a) An employee 453-15 is entitled to temporary income benefits if the employee has a 453-16 disability and has not attained maximum medical improvement. 453-17 (b) On the initiation of compensation as provided by Section 453-18 409.021, the insurance carrier shall pay temporary income benefits 453-19 as provided by this subchapter. (V.A.C.S. Art. 8308-4.23(a) 453-20 (part).) 453-21 Sec. 408.102. DURATION OF TEMPORARY INCOME BENEFITS. (a) 453-22 Temporary income benefits continue until the employee reaches 453-23 maximum medical improvement. 453-24 (b) The commission by rule shall establish a presumption 453-25 that maximum medical improvement has been reached based on a lack 453-26 of medical improvement in the employee's condition. (V.A.C.S. 453-27 Arts. 8308-4.23(b), (g).) 454-1 Sec. 408.103. AMOUNT OF TEMPORARY INCOME BENEFITS. (a) 454-2 Subject to Sections 408.061 and 408.062, the amount of a temporary 454-3 income benefit is equal to: 454-4 (1) 70 percent of the amount computed by subtracting 454-5 the employee's weekly earnings after the injury from the employee's 454-6 average weekly wage; or 454-7 (2) for the first 26 weeks, 75 percent of the amount 454-8 computed by subtracting the employee's weekly earnings after the 454-9 injury from the employee's average weekly wage if the employee 454-10 earns less than $8.50 an hour. 454-11 (b) A temporary income benefit under Subsection (a)(2) may 454-12 not exceed the employee's actual earnings for the previous year. 454-13 It is presumed that the employee's actual earnings for the previous 454-14 year are equal to: 454-15 (1) the sum of the employee's wages as reported in the 454-16 most recent four quarterly wage reports to the Texas Employment 454-17 Commission divided by 52; 454-18 (2) the employee's wages in the single quarter of the 454-19 most recent four quarters in which the employee's earnings were 454-20 highest, divided by 13, if the commission finds that the employee's 454-21 most recent four quarters' earnings reported in the Texas 454-22 Employment Commission wage reports are not representative of the 454-23 employee's usual earnings; or 454-24 (3) the amount the commission determines from other 454-25 credible evidence to be the actual earnings for the previous year 454-26 if the Texas Employment Commission does not have a wage report 454-27 reflecting at least one quarter's earnings because the employee 455-1 worked outside the state during the previous year. 455-2 (c) A presumption under Subsection (b) may be rebutted by 455-3 other credible evidence of the employee's actual earnings. 455-4 (d) The Texas Employment Commission shall provide 455-5 information required under this section in the manner most 455-6 efficient for transferring the information. 455-7 (e) For purposes of Subsection (a), if an employee is 455-8 offered a bona fide position of employment that the employee is 455-9 reasonably capable of performing, given the physical condition of 455-10 the employee and the geographic accessibility of the position to 455-11 the employee, the employee's weekly earnings after the injury are 455-12 equal to the weekly wage for the position offered to the employee. 455-13 (V.A.C.S. Arts. 8308-4.23(c), (d), (e), (f).) 455-14 (Sections 408.104-408.120 reserved for expansion) 455-15 SUBCHAPTER G. IMPAIRMENT INCOME BENEFITS 455-16 Sec. 408.121. IMPAIRMENT INCOME BENEFITS. (a) An 455-17 employee's entitlement to impairment income benefits begins on the 455-18 day after the date the employee reaches maximum medical improvement 455-19 and ends on the earlier of: 455-20 (1) the date of expiration of a period computed at the 455-21 rate of three weeks for each percentage point of impairment; or 455-22 (2) the date of the employee's death. 455-23 (b) The insurance carrier shall begin to pay impairment 455-24 income benefits not later than the fifth day after the date on 455-25 which the insurance carrier receives the doctor's report certifying 455-26 maximum medical improvement. Impairment income benefits shall be 455-27 paid for a period based on the impairment rating, unless that 456-1 rating is disputed under Subsection (c). 456-2 (c) If the insurance carrier disputes the impairment rating 456-3 used under Subsection (a), the carrier shall pay the employee 456-4 impairment income benefits for a period based on the carrier's 456-5 reasonable assessment of the correct rating. (V.A.C.S. Arts. 456-6 8308-4.26(c), (e), (f).) 456-7 Sec. 408.122. ELIGIBILITY FOR IMPAIRMENT INCOME BENEFITS. 456-8 (a) A claimant may not recover impairment income benefits unless 456-9 evidence of impairment based on an objective clinical or laboratory 456-10 finding exists. If the finding of impairment is made by a doctor 456-11 chosen by the claimant and the finding is contested, a designated 456-12 doctor or a doctor selected by the insurance carrier must be able 456-13 to confirm the objective clinical or laboratory finding on which 456-14 the finding of impairment is based. 456-15 (b) If a dispute exists as to whether the employee has 456-16 reached maximum medical improvement, the commission shall direct 456-17 the employee to be examined by a designated doctor chosen by mutual 456-18 agreement of the parties. If the parties are unable to agree on a 456-19 designated doctor, the commission shall direct the employee to be 456-20 examined by a designated doctor chosen by the commission. The 456-21 designated doctor shall report to the commission. The report of 456-22 the designated doctor has presumptive weight, and the commission 456-23 shall base its determination of whether the employee has reached 456-24 maximum medical improvement on the report unless the great weight 456-25 of the other medical evidence is to the contrary. (V.A.C.S. Art. 456-26 8308-4.25.) 456-27 Sec. 408.123. CERTIFICATION OF MAXIMUM MEDICAL IMPROVEMENT; 457-1 EVALUATION OF IMPAIRMENT RATING. (a) After an employee has been 457-2 certified by a doctor as having reached maximum medical 457-3 improvement, the certifying doctor shall evaluate the condition of 457-4 the employee and assign an impairment rating using the impairment 457-5 rating guidelines described by Section 408.124. If the 457-6 certification and evaluation are performed by a doctor other than 457-7 the employee's treating doctor, the certification and evaluation 457-8 shall be submitted to the treating doctor, and the treating doctor 457-9 shall indicate agreement or disagreement with the certification and 457-10 evaluation. 457-11 (b) A certifying doctor shall issue a written report 457-12 certifying that maximum medical improvement has been reached, 457-13 stating the employee's impairment rating, and providing any other 457-14 information required by the commission to: 457-15 (1) the commission; 457-16 (2) the employee; and 457-17 (3) the insurance carrier. 457-18 (c) If an employee is not certified as having reached 457-19 maximum medical improvement before the expiration of 102 weeks 457-20 after the date income benefits begin to accrue, the commission 457-21 shall notify the treating doctor of the requirements of this 457-22 subchapter. (V.A.C.S. Art. 8308-4.26(d).) 457-23 Sec. 408.124. IMPAIRMENT RATING GUIDELINES. (a) An award 457-24 of an impairment income benefit, whether by the commission or a 457-25 court, shall be made on an impairment rating determined using the 457-26 impairment rating guidelines described in this section. 457-27 (b) The commission shall use for determining the existence 458-1 and degree of an employee's impairment "Guides to the Evaluation of 458-2 Permanent Impairment," third edition, second printing, dated 458-3 February 1989, published by the American Medical Association. 458-4 (V.A.C.S. Arts. 8308-4.24, 8308-4.26(a).) 458-5 Sec. 408.125. DISPUTE AS TO IMPAIRMENT RATING. (a) If an 458-6 impairment rating is disputed, the commission shall direct the 458-7 employee to be examined by a designated doctor chosen by mutual 458-8 agreement of the parties. 458-9 (b) If the parties are unable to agree on a designated 458-10 doctor, the commission shall direct the employee to be examined by 458-11 a designated doctor chosen by the commission. 458-12 (c) The designated doctor shall report in writing to the 458-13 commission. 458-14 (d) If the designated doctor is chosen by the parties, the 458-15 commission shall adopt the impairment rating made by the designated 458-16 doctor. 458-17 (e) If the designated doctor is chosen by the commission, 458-18 the report of the designated doctor shall have presumptive weight, 458-19 and the commission shall base the impairment rating on that report 458-20 unless the great weight of the other medical evidence is to the 458-21 contrary. If the great weight of the medical evidence contradicts 458-22 the impairment rating contained in the report of the designated 458-23 doctor chosen by the commission, the commission shall adopt the 458-24 impairment rating of one of the other doctors. (V.A.C.S. Art. 458-25 8308-4.26(g).) 458-26 Sec. 408.126. AMOUNT OF IMPAIRMENT INCOME BENEFITS. Subject 458-27 to Sections 408.061 and 408.062, an impairment income benefit is 459-1 equal to 70 percent of the employee's average weekly wage. 459-2 (V.A.C.S. Art. 8308-4.26(b).) 459-3 Sec. 408.127. REDUCTION OF IMPAIRMENT INCOME BENEFITS. (a) 459-4 An insurance carrier shall reduce impairment income benefits to an 459-5 employee by an amount equal to employer payments made under Section 459-6 408.003 that are not reimbursed or reimbursable under that section. 459-7 (b) The insurance carrier shall remit the amount of a 459-8 reduction under this section to the employer who made the payments. 459-9 (c) The commission shall adopt rules and forms to ensure the 459-10 full reporting and the accuracy of reductions and reimbursements 459-11 made under this section. (V.A.C.S. Art. 8308-4.06(e).) 459-12 Sec. 408.128. COMMUTATION OF IMPAIRMENT INCOME BENEFITS. 459-13 (a) An employee may elect to commute the remainder of the 459-14 impairment income benefits to which the employee is entitled if the 459-15 employee has returned to work for at least three months, earning at 459-16 least 80 percent of the employee's average weekly wage. 459-17 (b) An employee who elects to commute impairment income 459-18 benefits is not entitled to additional income benefits for the 459-19 compensable injury. (V.A.C.S. Art. 8308-4.27.) 459-20 Sec. 408.129. ACCELERATION OF IMPAIRMENT INCOME BENEFITS. 459-21 (a) On approval by the commission of a written request received 459-22 from an employee, an insurance carrier shall accelerate the payment 459-23 of impairment income benefits to the employee. The accelerated 459-24 payment may not exceed a rate of payment equal to that of the 459-25 employee's net preinjury wage. 459-26 (b) The commission shall approve the request and order the 459-27 acceleration of the benefits if the commission determines that the 460-1 acceleration is: 460-2 (1) required to relieve hardship; and 460-3 (2) in the overall best interest of the employee. 460-4 (c) The duration of the impairment income benefits to which 460-5 the employee is entitled shall be reduced to offset the increased 460-6 payments caused by the acceleration taking into consideration the 460-7 discount for present payment computed at the rate provided under 460-8 Section 401.023. 460-9 (d) The commission may prescribe forms necessary to 460-10 implement this section. (V.A.C.S. Art. 8308-4.321.) 460-11 (Sections 408.130-408.140 reserved for expansion) 460-12 SUBCHAPTER H. SUPPLEMENTAL INCOME BENEFITS 460-13 Sec. 408.141. AWARD OF SUPPLEMENTAL INCOME BENEFITS. An 460-14 award of a supplemental income benefit, whether by the commission 460-15 or a court, shall be made in accordance with this subchapter. 460-16 (V.A.C.S. Art. 8308-4.28(a).) 460-17 Sec. 408.142. SUPPLEMENTAL INCOME BENEFITS. (a) An 460-18 employee is entitled to supplemental income benefits if on the 460-19 expiration of the impairment income benefit period computed under 460-20 Section 408.121(a)(1) the employee: 460-21 (1) has an impairment rating of 15 percent or more as 460-22 determined by this subtitle from the compensable injury; 460-23 (2) has not returned to work or has returned to work 460-24 earning less than 80 percent of the employee's average weekly wage 460-25 as a direct result of the employee's impairment; 460-26 (3) has not elected to commute a portion of the 460-27 impairment income benefit under Section 408.128; and 461-1 (4) has attempted in good faith to obtain employment 461-2 commensurate with the employee's ability to work. 461-3 (b) If an employee is not entitled to supplemental income 461-4 benefits at the time of payment of the final impairment income 461-5 benefit because the employee is earning at least 80 percent of the 461-6 employee's average weekly wage, the employee may become entitled to 461-7 supplemental income benefits at any time within one year after the 461-8 date the impairment income benefit period ends if: 461-9 (1) the employee earns wages for at least 90 days that 461-10 are less than 80 percent of the employee's average weekly wage; 461-11 (2) the employee meets the requirements of Subsections 461-12 (a)(1), (3), and (4); and 461-13 (3) the decrease in earnings is a direct result of the 461-14 employee's impairment from the compensable injury. (V.A.C.S. Arts. 461-15 8308-4.28(b), (c).) 461-16 Sec. 408.143. EMPLOYEE STATEMENT. (a) After the 461-17 commission's initial determination of supplemental income benefits, 461-18 the employee must file a statement with the insurance carrier 461-19 stating: 461-20 (1) that the employee has earned less than 80 percent 461-21 of the employee's average weekly wage as a direct result of the 461-22 employee's impairment; 461-23 (2) the amount of wages the employee earned in the 461-24 filing period provided by Subsection (b); and 461-25 (3) that the employee has in good faith sought 461-26 employment commensurate with the employee's ability to work. 461-27 (b) The statement required under this section must be filed 462-1 quarterly on a form and in the manner provided by the commission. 462-2 The commission may modify the filing period as appropriate to an 462-3 individual case. 462-4 (c) Failure to file a statement under this section relieves 462-5 the insurance carrier of liability for supplemental income benefits 462-6 for the period during which a statement is not filed. (V.A.C.S. 462-7 Art. 8308-4.28(k).) 462-8 Sec. 408.144. COMPUTATION OF SUPPLEMENTAL INCOME BENEFITS. 462-9 (a) Supplemental income benefits are calculated quarterly and paid 462-10 monthly. 462-11 (b) Subject to Section 408.061, the amount of a supplemental 462-12 income benefit for a week is equal to 80 percent of the amount 462-13 computed by subtracting the weekly wage the employee earned during 462-14 the reporting period provided by Section 408.143(b) from 80 percent 462-15 of the employee's average weekly wage determined under Section 462-16 408.041, 408.042, 408.043, or 408.044. 462-17 (c) For the purposes of this subchapter, if an employee is 462-18 offered a bona fide position of employment that the employee is 462-19 capable of performing, given the physical condition of the employee 462-20 and the geographic accessibility of the position to the employee, 462-21 the employee's weekly wages are considered to be equal to the 462-22 weekly wages for the position offered to the employee. (V.A.C.S. 462-23 Arts. 8308-4.28(m) (part), (n).) 462-24 Sec. 408.145. PAYMENT OF SUPPLEMENTAL INCOME BENEFITS. An 462-25 insurance carrier shall pay supplemental income benefits beginning 462-26 not later than the seventh day after the expiration date of the 462-27 employee's impairment income benefit period and shall continue to 463-1 pay the benefits in a timely manner. (V.A.C.S. Art. 463-2 8308-4.28(l)(1) (part).) 463-3 Sec. 408.146. TERMINATION OF SUPPLEMENTAL INCOME BENEFITS; 463-4 REINITIATION. (a) If an employee earns wages that are at least 80 463-5 percent of the employee's average weekly wage for at least 90 days 463-6 during a time that the employee receives supplemental income 463-7 benefits, the employee ceases to be entitled to supplemental income 463-8 benefits for the filing period. 463-9 (b) Supplemental income benefits terminated under this 463-10 section shall be reinitiated when the employee: 463-11 (1) satisfies the conditions of Section 408.142(b); 463-12 and 463-13 (2) files the statement required under Section 463-14 408.143. 463-15 (c) Notwithstanding any other provision of this section, an 463-16 employee who is not entitled to supplemental income benefits for 12 463-17 consecutive months ceases to be entitled to any additional income 463-18 benefits for the compensable injury. (V.A.C.S. Arts. 8308-4.28(d), 463-19 (e), (f).) 463-20 Sec. 408.147. CONTEST OF SUPPLEMENTAL INCOME BENEFITS BY 463-21 INSURANCE CARRIER; ATTORNEY'S FEES. (a) An insurance carrier may 463-22 request a benefit review conference to contest an employee's 463-23 entitlement to supplemental income benefits or the amount of 463-24 supplemental income benefits. 463-25 (b) If an insurance carrier fails to make a request for a 463-26 benefit review conference within 10 days after the date of the 463-27 expiration of the impairment income benefit period or within 10 464-1 days after receipt of the employee's statement, the insurance 464-2 carrier waives the right to contest entitlement to supplemental 464-3 income benefits and the amount of supplemental income benefits for 464-4 that period of supplemental income benefits. 464-5 (c) If an insurance carrier disputes a commission 464-6 determination that an employee is entitled to supplemental income 464-7 benefits or the amount of supplemental income benefits due and the 464-8 employee prevails on any disputed issue, the insurance carrier is 464-9 liable for reasonable and necessary attorney's fees incurred by the 464-10 employee as a result of the insurance carrier's dispute and for 464-11 supplemental income benefits accrued but not paid and interest on 464-12 that amount, according to Section 408.064. Attorney's fees awarded 464-13 under this subsection are not subject to Sections 408.221(b) and 464-14 (e). (V.A.C.S. Arts. 8308-4.28(l)(1) (part), (2).) 464-15 Sec. 408.148. EMPLOYEE DISCHARGE AFTER TERMINATION. The 464-16 commission may reinstate supplemental income benefits to an 464-17 employee who is discharged within 12 months of the date of losing 464-18 entitlement to supplemental income benefits under Section 464-19 408.146(c) if the commission finds that the employee was discharged 464-20 at that time with the intent to deprive the employee of 464-21 supplemental income benefits. (V.A.C.S. Art. 8308-4.28(g).) 464-22 Sec. 408.149. STATUS REVIEW; BENEFIT REVIEW CONFERENCE. 464-23 (a) Not more than once in each period of 12 calendar months, an 464-24 employee and an insurance carrier each may request the commission 464-25 to review the status of the employee and determine whether the 464-26 employee's unemployment or underemployment is a direct result of 464-27 impairment from the compensable injury. 465-1 (b) Either party may request a benefit review conference to 465-2 contest a determination of the commission at any time, subject only 465-3 to the limits placed on the insurance carrier by Section 408.147. 465-4 (V.A.C.S. Art. 8308-4.28(i).) 465-5 Sec. 408.150. VOCATIONAL REHABILITATION. (a) The 465-6 commission shall refer an employee to the Texas Rehabilitation 465-7 Commission with a recommendation for appropriate services if the 465-8 commission determines that an employee entitled to supplemental 465-9 income benefits could be materially assisted by vocational 465-10 rehabilitation or training in returning to employment or returning 465-11 to employment more nearly approximating the employee's preinjury 465-12 employment. 465-13 (b) An employee who refuses services or refuses to cooperate 465-14 with services provided under this section loses entitlement to 465-15 supplementary income benefits. (V.A.C.S. Art. 8308-4.28(j).) 465-16 (Sections 408.151-408.160 reserved for expansion) 465-17 SUBCHAPTER I. LIFETIME INCOME BENEFITS 465-18 Sec. 408.161. LIFETIME INCOME BENEFITS. (a) Lifetime 465-19 income benefits are paid until the death of the employee for: 465-20 (1) total and permanent loss of sight in both eyes; 465-21 (2) loss of both feet at or above the ankle; 465-22 (3) loss of both hands at or above the wrist; 465-23 (4) loss of one foot at or above the ankle and the 465-24 loss of one hand at or above the wrist; 465-25 (5) an injury to the spine that results in permanent 465-26 and complete paralysis of both arms, both legs, or one arm and one 465-27 leg; or 466-1 (6) an injury to the skull resulting in incurable 466-2 insanity or imbecility. 466-3 (b) For purposes of Subsection (a), the total and permanent 466-4 loss of use of a body part is the loss of that body part. 466-5 (c) Subject to Section 408.061, the amount of lifetime 466-6 income benefits is equal to 75 percent of the employee's average 466-7 weekly wage. Benefits being paid shall be increased at a rate of 466-8 three percent a year notwithstanding Section 408.061. (V.A.C.S. 466-9 Arts. 8308-4.31(a), (b), (c).) 466-10 Sec. 408.162. SUBSEQUENT INJURY FUND BENEFITS. (a) If a 466-11 subsequent compensable injury, with the effects of a previous 466-12 injury, results in a condition for which the injured employee is 466-13 entitled to lifetime income benefits, the insurance carrier is 466-14 liable for the payment of benefits for the subsequent injury only 466-15 to the extent that the subsequent injury would have entitled the 466-16 employee to benefits had the previous injury not existed. 466-17 (b) The subsequent injury fund shall compensate the employee 466-18 for the remainder of the lifetime income benefits to which the 466-19 employee is entitled. (V.A.C.S. Art. 8308-4.47.) 466-20 (Sections 408.163-408.180 reserved for expansion) 466-21 SUBCHAPTER J. DEATH AND BURIAL BENEFITS 466-22 Sec. 408.181. DEATH BENEFITS. (a) An insurance carrier 466-23 shall pay death benefits to the legal beneficiary if a compensable 466-24 injury to the employee results in death. 466-25 (b) Subject to Section 408.061, the amount of a death 466-26 benefit is equal to 75 percent of the employee's average weekly 466-27 wage. (V.A.C.S. Art. 8308-4.41.) 467-1 Sec. 408.182. DISTRIBUTION OF DEATH BENEFITS. (a) If there 467-2 is an eligible child or grandchild and an eligible spouse, half of 467-3 the death benefits shall be paid to the eligible spouse and half 467-4 shall be paid in equal shares to the eligible children. If an 467-5 eligible child has predeceased the employee, death benefits that 467-6 would have been paid to that child shall be paid in equal shares 467-7 per stirpes to the children of the deceased child. 467-8 (b) If there is an eligible spouse and no eligible child or 467-9 grandchild, all the death benefits shall be paid to the eligible 467-10 spouse. 467-11 (c) If there is an eligible child or grandchild and no 467-12 eligible spouse, the death benefits shall be paid to the eligible 467-13 children or grandchildren. 467-14 (d) If there is no eligible spouse, no eligible child, and 467-15 no eligible grandchild, the death benefits shall be paid in equal 467-16 shares to surviving dependents of the deceased employee who are 467-17 parents, stepparents, siblings, or grandparents of the deceased. 467-18 (e) If an employee is not survived by legal beneficiaries, 467-19 the death benefits shall be paid to the subsequent injury fund 467-20 under Section 403.007. 467-21 (f) In this section: 467-22 (1) "Eligible child" means a child of a deceased 467-23 employee if the child is: 467-24 (A) a minor; 467-25 (B) enrolled as a full-time student in an 467-26 accredited educational institution and is less than 25 years of 467-27 age; or 468-1 (C) a dependent of the deceased employee at the 468-2 time of the employee's death. 468-3 (2) "Eligible grandchild" means a grandchild of a 468-4 deceased employee who is a dependent of the deceased employee and 468-5 whose parent is not an eligible child. 468-6 (3) "Eligible spouse" means the surviving spouse of a 468-7 deceased employee unless the spouse abandoned the employee for 468-8 longer than the year immediately preceding the death without good 468-9 cause, as determined by the commission. (V.A.C.S. Arts. 468-10 8308-4.42(b), (c), (d), (e), (f), (g).) 468-11 Sec. 408.183. DURATION OF DEATH BENEFITS. (a) Entitlement 468-12 to death benefits begins on the day after the date of an employee's 468-13 death. 468-14 (b) An eligible spouse is entitled to receive death benefits 468-15 for life or until remarriage. On remarriage, the eligible spouse 468-16 is entitled to receive 104 weeks of death benefits, commuted as 468-17 provided by commission rule. 468-18 (c) A child who is eligible for death benefits because the 468-19 child is a minor on the date of the employee's death is entitled to 468-20 receive benefits until the child attains the age of 18. 468-21 (d) A child eligible for death benefits under Subsection (c) 468-22 who at age 18 is enrolled as a full-time student in an accredited 468-23 educational institution or a child who is eligible for death 468-24 benefits because on the date of the employee's death the child is 468-25 enrolled as a full-time student in an accredited educational 468-26 institution is entitled to receive or to continue to receive, as 468-27 appropriate, benefits until the earliest of: 469-1 (1) the date the child ceases, for a second 469-2 consecutive semester, to be enrolled as a full-time student in an 469-3 accredited educational institution; 469-4 (2) the date the child attains the age of 25; or 469-5 (3) the date the child dies. 469-6 (e) A child who is eligible for death benefits because the 469-7 child is a dependent of the deceased employee on the date of the 469-8 employee's death is entitled to receive benefits until the earlier 469-9 of: 469-10 (1) the date the child dies; or 469-11 (2) if the child is dependent: 469-12 (A) because the child is an individual with a 469-13 physical or mental disability, the date the child no longer has the 469-14 disability; or 469-15 (B) because of a reason other than a physical or 469-16 mental disability, the date of the expiration of 364 weeks of death 469-17 benefit payments. 469-18 (f) An eligible grandchild is entitled to receive death 469-19 benefits until the earlier of: 469-20 (1) the date the grandchild dies; or 469-21 (2) if the grandchild is: 469-22 (A) a minor at the time of the employee's death, 469-23 the date the grandchild ceases to be a minor; or 469-24 (B) not a minor at the time of the employee's 469-25 death, the date of the expiration of 364 weeks of death benefit 469-26 payments. 469-27 (g) Any other person entitled to death benefits is entitled 470-1 to receive death benefits until the earlier of: 470-2 (1) the date the person dies; or 470-3 (2) the date of the expiration of 364 weeks of death 470-4 benefit payments. 470-5 (h) Section 401.011(16) does not apply to the use of the 470-6 term "disability" in this section. (V.A.C.S. Art. 8308-4.43; New.) 470-7 Sec. 408.184. REDISTRIBUTION OF DEATH BENEFITS. (a) If a 470-8 legal beneficiary dies or otherwise becomes ineligible for death 470-9 benefits, benefits shall be redistributed to the remaining legal 470-10 beneficiaries as provided by Sections 408.182 and 408.183. 470-11 (b) If a spouse ceases to be eligible because of remarriage, 470-12 the benefits payable to the remaining legal beneficiaries remain 470-13 constant for 104 weeks. After the 104th week, the spouse's share 470-14 of benefits shall be redistributed as provided by Sections 408.182 470-15 and 408.183. 470-16 (c) If all legal beneficiaries, other than the subsequent 470-17 injury fund, cease to be eligible and the insurance carrier has not 470-18 made 364 weeks of full death benefit payments, including the 470-19 remarriage payment, the insurance carrier shall pay to the 470-20 subsequent injury fund an amount computed by subtracting the total 470-21 amount paid from the amount that would be paid for 364 weeks of 470-22 death benefits. (V.A.C.S. Art. 8308-4.44.) 470-23 Sec. 408.185. EFFECT OF BENEFICIARY DISPUTE; ATTORNEY'S 470-24 FEES. On settlement of a case in which the insurance carrier 470-25 admits liability for death benefits but a dispute exists as to the 470-26 proper beneficiary or beneficiaries, the settlement shall be paid 470-27 in periodic payments as provided by law, with a reasonable 471-1 attorney's fee not to exceed 25 percent of the settlement, paid 471-2 periodically, and based on time and expenses. (V.A.C.S. Art. 471-3 8308-4.45(b).) 471-4 Sec. 408.186. BURIAL BENEFITS. (a) If the death of an 471-5 employee results from a compensable injury, the insurance carrier 471-6 shall pay to the person who incurred liability for the costs of 471-7 burial the lesser of: 471-8 (1) the actual costs incurred for reasonable burial 471-9 expenses; or 471-10 (2) $2,500. 471-11 (b) If the employee died away from the employee's usual 471-12 place of employment, the insurance carrier shall pay the reasonable 471-13 cost of transporting the body, not to exceed the cost of 471-14 transporting the body to the employee's usual place of employment. 471-15 (V.A.C.S. Art. 8308-4.46.) 471-16 Sec. 408.187. AUTOPSY. (a) If in a claim for death 471-17 benefits based on an occupational disease an autopsy is necessary 471-18 to determine the cause of death, the commission may, after 471-19 opportunity for hearing, order the legal beneficiaries of a 471-20 deceased employee to permit an autopsy. 471-21 (b) A legal beneficiary is entitled to have a representative 471-22 present at an autopsy ordered under this section. 471-23 (c) The commission shall require the insurance carrier to 471-24 pay the costs of a procedure ordered under this section. (V.A.C.S. 471-25 Art. 8308-4.48.) 471-26 (Sections 408.188-408.200 reserved for expansion) 471-27 SUBCHAPTER K. PROTECTION OF RIGHTS TO BENEFITS 472-1 Sec. 408.201. BENEFITS EXEMPT FROM LEGAL PROCESS. Benefits 472-2 are exempt from: 472-3 (1) garnishment; 472-4 (2) attachment; 472-5 (3) judgment; and 472-6 (4) other actions or claims. (V.A.C.S. 472-7 Art. 8308-4.07(a).) 472-8 Sec. 408.202. ASSIGNABILITY OF BENEFITS. Benefits are not 472-9 assignable, except a legal beneficiary may, with commission 472-10 approval, assign the right to death benefits. (V.A.C.S. Arts. 472-11 8308-4.07(b), (c).) 472-12 Sec. 408.203. Allowable Liens. (a) An income or death 472-13 benefit is subject only to the following lien or claim, to the 472-14 extent the benefit is unpaid on the date the insurance carrier 472-15 receives written notice of the lien or claim, in the following 472-16 order of priority: 472-17 (1) an attorney's fee for representing an employee or 472-18 legal beneficiary in a matter arising under this subtitle; 472-19 (2) court-ordered child support; or 472-20 (3) a subrogation interest established under this 472-21 subtitle. 472-22 (b) A benefit that is subject to a lien for payment of 472-23 court-ordered child support shall be paid as required by: 472-24 (1) an order withholding income under Section 14.43, 472-25 Family Code; or 472-26 (2) a writ of income withholding under Section 14.45, 472-27 Family Code. (V.A.C.S. Art. 8308-4.08.) 473-1 (Sections 408.204-408.220 reserved for expansion) 473-2 SUBCHAPTER L. ATTORNEY'S FEES IN WORKERS' COMPENSATION 473-3 BENEFIT MATTERS 473-4 Sec. 408.221. ATTORNEY'S FEES PAID TO CLAIMANT'S COUNSEL. 473-5 (a) An attorney's fee, including a contingency fee, for 473-6 representing a claimant before the commission or court under this 473-7 subtitle must be approved by the commission or court. 473-8 (b) Except as otherwise provided, an attorney's fee under 473-9 this section is based on the attorney's time and expenses according 473-10 to written evidence presented to the commission or court. Except 473-11 as provided by Section 408.147(c), the attorney's fee shall be paid 473-12 from the claimant's recovery. 473-13 (c) In approving an attorney's fee under this section, the 473-14 commission or court shall consider: 473-15 (1) the time and labor required; 473-16 (2) the novelty and difficulty of the questions 473-17 involved; 473-18 (3) the skill required to perform the legal services 473-19 properly; 473-20 (4) the fee customarily charged in the locality for 473-21 similar legal services; 473-22 (5) the amount involved in the controversy; 473-23 (6) the benefits to the claimant that the attorney is 473-24 responsible for securing; and 473-25 (7) the experience and ability of the attorney 473-26 performing the services. 473-27 (d) The commission by rule or the court may provide for the 474-1 commutation of an attorney's fee, except that the attorney's fee 474-2 shall be paid in periodic payments in a claim involving death 474-3 benefits if the only dispute is as to the proper beneficiary or 474-4 beneficiaries. 474-5 (e) The commission by rule shall provide guidelines for 474-6 maximum attorney's fees for specific services in accordance with 474-7 this section. 474-8 (f) An attorney's fee may not be allowed in a case involving 474-9 a fatal injury or lifetime income benefit if the insurance carrier 474-10 admits liability on all issues and tenders payment of maximum 474-11 benefits in writing under this subtitle while the claim is pending 474-12 before the commission. 474-13 (g) An attorney's fee shall be paid to the attorney by 474-14 separate draft. 474-15 (h) Except as provided by Section 408.147(c), an attorney's 474-16 fee may not exceed 25 percent of the claimant's recovery. 474-17 (V.A.C.S. Art. 8308-4.09.) 474-18 Sec. 408.222. Attorney's Fees Paid to Defense Counsel. (a) 474-19 The amount of an attorney's fee for defending an insurance carrier 474-20 in a workers' compensation action brought under this subtitle must 474-21 be approved by the commission or court and determined by the 474-22 commission or court to be reasonable and necessary. 474-23 (b) In determining whether a fee is reasonable under this 474-24 section, the commission or court shall consider issues analogous to 474-25 those listed under Section 408.221(c). The defense counsel shall 474-26 present written evidence to the commission or court relating to: 474-27 (1) the time spent and expenses incurred in defending 475-1 the case; and 475-2 (2) other evidence considered necessary by the 475-3 commission or court in making a determination under this section. 475-4 (V.A.C.S. Art. 8308-4.091.) 475-5 CHAPTER 409. COMPENSATION PROCEDURES 475-6 SUBCHAPTER A. INJURY REPORTS, CLAIMS, AND RECORDS 475-7 Sec. 409.001. NOTICE OF INJURY TO EMPLOYER 475-8 Sec. 409.002. FAILURE TO FILE NOTICE OF INJURY 475-9 Sec. 409.003. CLAIM FOR COMPENSATION 475-10 Sec. 409.004. FAILURE TO FILE CLAIM FOR COMPENSATION 475-11 Sec. 409.005. EMPLOYER REPORT OF INJURY; ADMINISTRATIVE 475-12 VIOLATION 475-13 Sec. 409.006. RECORD OF INJURIES; ADMINISTRATIVE 475-14 VIOLATION 475-15 Sec. 409.007. DEATH BENEFIT CLAIMS 475-16 Sec. 409.008. FAILURE TO FILE EMPLOYER REPORT OF INJURY; 475-17 LIMITATIONS TOLLED 475-18 Sec. 409.009. SUBCLAIMS 475-19 Sec. 409.010. INFORMATION PROVIDED TO EMPLOYEE OR LEGAL 475-20 BENEFICIARY 475-21 Sec. 409.011. INFORMATION PROVIDED TO EMPLOYER; EMPLOYER'S 475-22 RIGHTS 475-23 Sec. 409.012. VOCATIONAL REHABILITATION INFORMATION 475-24 (Sections 409.013-409.020 reserved for expansion) 475-25 SUBCHAPTER B. PAYMENT OF BENEFITS 475-26 Sec. 409.021. INITIATION OF BENEFITS; INSURANCE CARRIER'S 475-27 REFUSAL; ADMINISTRATIVE VIOLATION 476-1 Sec. 409.022. REFUSAL TO PAY BENEFITS; NOTICE; 476-2 ADMINISTRATIVE VIOLATION 476-3 Sec. 409.023. PAYMENT OF BENEFITS; ADMINISTRATIVE 476-4 VIOLATION 476-5 Sec. 409.024. TERMINATION OR REDUCTION OF BENEFITS; 476-6 NOTICE; ADMINISTRATIVE VIOLATION 476-7 (Sections 409.025-409.040 reserved for expansion) 476-8 SUBCHAPTER C. OMBUDSMAN PROGRAM 476-9 Sec. 409.041. OMBUDSMAN PROGRAM; ADMINISTRATIVE VIOLATION 476-10 Sec. 409.042. PUBLIC INFORMATION 476-11 CHAPTER 409. COMPENSATION PROCEDURES 476-12 SUBCHAPTER A. INJURY REPORTS, CLAIMS, AND RECORDS 476-13 Sec. 409.001. NOTICE OF INJURY TO EMPLOYER. (a) An 476-14 employee or a person acting on the employee's behalf shall notify 476-15 the employer of the employee of an injury not later than the 30th 476-16 day after the date on which: 476-17 (1) the injury occurs; or 476-18 (2) if the injury is an occupational disease, the 476-19 employee knew or should have known that the injury may be related 476-20 to the employment. 476-21 (b) The notice required under Subsection (a) may be given 476-22 to: 476-23 (1) the employer; or 476-24 (2) an employee of the employer who holds a 476-25 supervisory or management position. 476-26 (c) If the injury is an occupational disease, for purposes 476-27 of this section, the employer is the person who employed the 477-1 employee on the date of last injurious exposure to the hazards of 477-2 the disease. (V.A.C.S. Arts. 8308-5.01(a), (c), (d).) 477-3 Sec. 409.002. FAILURE TO FILE NOTICE OF INJURY. Failure to 477-4 notify an employer as required by Section 409.001(a) relieves the 477-5 employer and the employer's insurance carrier of liability under 477-6 this subtitle unless: 477-7 (1) the employer, a person eligible to receive notice 477-8 under Section 409.001(b), or the employer's insurance carrier has 477-9 actual knowledge of the employee's injury; 477-10 (2) the commission determines that good cause exists 477-11 for failure to provide notice in a timely manner; or 477-12 (3) the employer or the employer's insurance carrier 477-13 does not contest the claim. (V.A.C.S. Art. 8308-5.02.) 477-14 Sec. 409.003. CLAIM FOR COMPENSATION. An employee or a 477-15 person acting on the employee's behalf shall file with the 477-16 commission a claim for compensation for an injury not later than 477-17 one year after the date on which: 477-18 (1) the injury occurred; or 477-19 (2) if the injury is an occupational disease, the 477-20 employee knew or should have known that the disease was related to 477-21 the employee's employment. (V.A.C.S. Art. 8308-5.01(b).) 477-22 Sec. 409.004. FAILURE TO FILE CLAIM FOR COMPENSATION. 477-23 Failure to file a claim for compensation with the commission as 477-24 required under Section 409.003 relieves the employer and the 477-25 employer's insurance carrier of liability under this subtitle 477-26 unless: 477-27 (1) good cause exists for failure to file a claim in a 478-1 timely manner; or 478-2 (2) the employer or the employer's insurance carrier 478-3 does not contest the claim. (V.A.C.S. Art. 8308-5.03.) 478-4 Sec. 409.005. EMPLOYER REPORT OF INJURY; ADMINISTRATIVE 478-5 VIOLATION. (a) An employer shall file a written report with the 478-6 commission and the employer's insurance carrier if: 478-7 (1) an injury results in the absence of an employee of 478-8 that employer from work for more than one day; or 478-9 (2) an employee of the employer notifies that employer 478-10 of an occupational disease under Section 409.001. 478-11 (b) The report must be mailed or delivered to the commission 478-12 and the insurance carrier not later than the eighth day after: 478-13 (1) the employee's absence from work for more than one 478-14 day due to an injury; or 478-15 (2) the day on which the employer receives notice 478-16 under Section 409.001 that the employee has contracted an 478-17 occupational disease. 478-18 (c) A report required under this section may not be 478-19 considered to be an admission by or evidence against an employer or 478-20 an insurance carrier in a proceeding before the commission or a 478-21 court in which the facts set out in the report are contradicted by 478-22 the employer or insurance carrier. 478-23 (d) The commission may adopt rules relating to the 478-24 information that must be contained in a report required under this 478-25 section. 478-26 (e) An employer shall file subsequent reports as required by 478-27 commission rule. 479-1 (f) A person commits a violation if the person fails to 479-2 comply with this section unless good cause exists. A violation 479-3 under this subsection is a Class D administrative violation. 479-4 (V.A.C.S. Arts. 8308-5.05(a), (b) (part), (c), (d), (e).) 479-5 Sec. 409.006. RECORD OF INJURIES; ADMINISTRATIVE VIOLATION. 479-6 (a) An employer shall maintain a record of each employee injury as 479-7 reported by an employee or otherwise made known to the employer. 479-8 (b) The record shall be available to the commission at 479-9 reasonable times and under conditions prescribed by the commission. 479-10 (c) The commission may adopt rules relating to the 479-11 information that must be contained in an employer record under this 479-12 section. 479-13 (d) Information contained in a record maintained under this 479-14 section is not an admission by the employer that: 479-15 (1) the injury did in fact occur; or 479-16 (2) a fact maintained in the record is true. 479-17 (e) A person commits a violation if the person fails to 479-18 comply with this section. A violation under this subsection is a 479-19 Class D administrative violation. (V.A.C.S. Art. 8308-5.04.) 479-20 Sec. 409.007. DEATH BENEFIT CLAIMS. (a) A person must file 479-21 a claim for death benefits with the commission not later than the 479-22 first anniversary of the date of the employee's death. 479-23 (b) Failure to file in the time required by Subsection (a) 479-24 bars the claim unless: 479-25 (1) the person is a minor or incompetent; or 479-26 (2) good cause exists for the failure to file a claim 479-27 under this section. 480-1 (c) A separate claim must be filed for each legal 480-2 beneficiary unless the claim expressly includes or is made on 480-3 behalf of another person. (V.A.C.S. Art. 8308-5.07.) 480-4 Sec. 409.008. FAILURE TO FILE EMPLOYER REPORT OF INJURY; 480-5 LIMITATIONS TOLLED. If an employer or the employer's insurance 480-6 carrier has been given notice or has knowledge of an injury to or 480-7 the death of an employee and the employer or insurance carrier 480-8 fails, neglects, or refuses to file the report under Section 480-9 409.005, the period for filing a claim for compensation under 480-10 Sections 409.003 and 409.007 does not begin to run against the 480-11 claim of an injured employee or a legal beneficiary until the day 480-12 on which the report required under Section 409.005 has been 480-13 furnished. (V.A.C.S. Art. 8308-5.06.) 480-14 Sec. 409.009. SUBCLAIMS. A person may file a written claim 480-15 with the commission as a subclaimant if the person has: 480-16 (1) provided compensation, including health care 480-17 provided by a health care insurer, directly or indirectly, to or 480-18 for an employee or legal beneficiary; and 480-19 (2) sought and been refused reimbursement from the 480-20 insurance carrier. (V.A.C.S. Arts. 8308-1.03(44), 8308-5.08.) 480-21 Sec. 409.010. INFORMATION PROVIDED TO EMPLOYEE OR LEGAL 480-22 BENEFICIARY. Immediately on receiving notice of an injury or death 480-23 from any person, the commission shall mail to the employee or legal 480-24 beneficiary a clear and concise description of: 480-25 (1) the services provided by the commission, including 480-26 the services of the ombudsman program; 480-27 (2) the commission's procedures; and 481-1 (3) the person's rights and responsibilities under 481-2 this subtitle. (V.A.C.S. Art. 8308-5.09.) 481-3 Sec. 409.011. INFORMATION PROVIDED TO EMPLOYER; EMPLOYER'S 481-4 RIGHTS. (a) Immediately on receiving notice of an injury or death 481-5 from any person, the commission shall mail to the employer a 481-6 description of: 481-7 (1) the services provided by the commission; 481-8 (2) the commission's procedures; and 481-9 (3) the employer's rights and responsibilities under 481-10 this subtitle. 481-11 (b) The information must include a clear statement of the 481-12 following rights of the employer: 481-13 (1) the right to be present at all administrative 481-14 proceedings relating to an employee's claim; 481-15 (2) the right to present relevant evidence relating to 481-16 an employee's claim at any proceeding; 481-17 (3) the right to report suspected fraud; 481-18 (4) the right to contest the compensability of an 481-19 injury if the insurance carrier accepts liability for the payment 481-20 of benefits; 481-21 (5) the right to receive notice, after making a 481-22 written request to the insurance carrier, of: 481-23 (A) a proposal to settle a claim; or 481-24 (B) an administrative or a judicial proceeding 481-25 relating to the resolution of a claim; and 481-26 (6) the right to contest the failure of the insurance 481-27 carrier to provide accident prevention services under Subchapter E, 482-1 Chapter 411. 482-2 (c) The commission is not required to provide the 482-3 information to an employer more than once during a calendar year. 482-4 (V.A.C.S. Art. 8308-5.10.) 482-5 Sec. 409.012. VOCATIONAL REHABILITATION INFORMATION. (a) 482-6 The commission shall analyze each report of injury received from an 482-7 employer under this chapter to determine whether the injured 482-8 employee would be assisted by vocational rehabilitation. 482-9 (b) If the commission determines that an injured employee 482-10 would be assisted by vocational rehabilitation, the commission 482-11 shall notify the injured employee in writing of the services and 482-12 facilities available through the Texas Rehabilitation Commission 482-13 and private providers of vocational rehabilitation. The commission 482-14 shall notify the Texas Rehabilitation Commission and the affected 482-15 insurance carrier that the injured employee has been identified as 482-16 one who could be assisted by vocational rehabilitation. 482-17 (c) The commission shall cooperate with the Texas 482-18 Rehabilitation Commission and private providers of vocational 482-19 rehabilitation in the provision of services and facilities to 482-20 employees by the Texas Rehabilitation Commission. 482-21 (d) A private provider of vocational rehabilitation services 482-22 may register with the commission. (V.A.C.S. Art. 8308-5.11.) 482-23 (Sections 409.013-409.020 reserved for expansion) 482-24 SUBCHAPTER B. PAYMENT OF BENEFITS 482-25 Sec. 409.021. INITIATION OF BENEFITS; INSURANCE CARRIER'S 482-26 REFUSAL; ADMINISTRATIVE VIOLATION. (a) An insurance carrier shall 482-27 initiate compensation under this subtitle promptly. Not later than 483-1 the seventh day after the date on which an insurance carrier 483-2 receives written notice of an injury, the insurance carrier shall: 483-3 (1) begin the payment of benefits as required by this 483-4 subtitle; or 483-5 (2) notify the commission and the employee in writing 483-6 of its refusal to pay and advise the employee of: 483-7 (A) the right to request a benefit review 483-8 conference; and 483-9 (B) the means to obtain additional information 483-10 from the commission. 483-11 (b) An insurance carrier shall notify the commission in 483-12 writing of the initiation of income or death benefit payments in 483-13 the manner prescribed by commission rules. 483-14 (c) If an insurance carrier does not contest the 483-15 compensability of an injury on or before the 60th day after the 483-16 date on which the insurance carrier is notified of the injury, the 483-17 insurance carrier waives its right to contest compensability. The 483-18 initiation of payments by an insurance carrier does not affect the 483-19 right of the insurance carrier to continue to investigate or deny 483-20 the compensability of an injury during the 60-day period. 483-21 (d) An insurance carrier may reopen the issue of the 483-22 compensability of an injury if there is a finding of evidence that 483-23 could not reasonably have been discovered earlier. 483-24 (e) An insurance carrier commits a violation if the 483-25 insurance carrier does not initiate payments or file a notice of 483-26 refusal as required by this section. A violation under this 483-27 subsection is a Class B administrative violation. Each day of 484-1 noncompliance constitutes a separate violation. (V.A.C.S. Arts. 484-2 8308-5.21(a) (part), (b).) 484-3 Sec. 409.022. REFUSAL TO PAY BENEFITS; NOTICE; 484-4 ADMINISTRATIVE VIOLATION. (a) An insurance carrier's notice of 484-5 refusal to pay benefits under Section 409.021 must specify the 484-6 grounds for the refusal. 484-7 (b) The grounds for the refusal specified in the notice 484-8 constitute the only basis for the insurance carrier's defense on 484-9 the issue of compensability in a subsequent proceeding, unless the 484-10 defense is based on newly discovered evidence that could not 484-11 reasonably have been discovered at an earlier date. 484-12 (c) An insurance carrier commits a violation if the 484-13 insurance carrier does not have reasonable grounds for a refusal to 484-14 pay benefits, as determined by the commission. A violation under 484-15 this subsection is a Class B administrative violation. (V.A.C.S. 484-16 Art. 8308-5.21(c).) 484-17 Sec. 409.023. PAYMENT OF BENEFITS; ADMINISTRATIVE VIOLATION. 484-18 (a) An insurance carrier shall continue to pay benefits promptly 484-19 as and when the benefits accrue without a final decision, order, or 484-20 other action of the commission, except as otherwise provided. 484-21 (b) Benefits shall be paid solely to the order of the 484-22 employee or the employee's legal beneficiary. 484-23 (c) An insurance carrier commits a violation if the 484-24 insurance carrier fails to comply with this section. A violation 484-25 under this subsection is a Class B administrative violation. Each 484-26 day of noncompliance constitutes a separate violation. 484-27 (d) An insurance carrier that commits multiple violations of 485-1 this section commits a Class A administrative violation and is 485-2 subject to: 485-3 (1) the sanctions provided under Section 415.023; and 485-4 (2) revocation of the right to do business under the 485-5 workers' compensation laws of this state. (V.A.C.S. Art. 485-6 8308-5.22.) 485-7 Sec. 409.024. TERMINATION OR REDUCTION OF BENEFITS; NOTICE; 485-8 ADMINISTRATIVE VIOLATION. (a) An insurance carrier shall file 485-9 with the commission a notice of termination or reduction of 485-10 benefits, including the reasons for the termination or reduction, 485-11 not later than the 10th day after the date on which benefits are 485-12 terminated or reduced. 485-13 (b) An insurance carrier commits a violation if the 485-14 insurance carrier does not have reasonable grounds to terminate or 485-15 reduce benefits, as determined by the commission. A violation 485-16 under this subsection is a Class B administrative violation. 485-17 (V.A.C.S. Art. 8308-5.23.) 485-18 (Sections 409.025-409.040 reserved for expansion) 485-19 SUBCHAPTER C. OMBUDSMAN PROGRAM 485-20 Sec. 409.041. OMBUDSMAN PROGRAM; ADMINISTRATIVE VIOLATION. 485-21 (a) The commission shall maintain an ombudsman program to assist 485-22 injured workers and persons claiming death benefits in obtaining 485-23 benefits under this subtitle. 485-24 (b) An ombudsman shall: 485-25 (1) meet with or otherwise provide information to 485-26 injured workers; 485-27 (2) investigate complaints; 486-1 (3) communicate with employers, insurance carriers, 486-2 and health care providers on behalf of injured workers; and 486-3 (4) assist unrepresented claimants, employers, and 486-4 other parties to enable those persons to protect their rights in 486-5 the workers' compensation system. 486-6 (c) At least one specially qualified employee in each 486-7 commission office shall be designated an ombudsman who shall 486-8 perform the duties under this section as the person's primary 486-9 responsibility. 486-10 (d) Each employer shall notify its employees of the 486-11 ombudsman program in a manner prescribed by the commission. An 486-12 employer commits a violation if the employer fails to comply with 486-13 this subsection. A violation under this subsection is a Class C 486-14 administrative violation. (V.A.C.S. Art. 8308-5.41.) 486-15 Sec. 409.042. PUBLIC INFORMATION. The commission shall 486-16 widely disseminate information about the ombudsman program. 486-17 (V.A.C.S. Art. 8308-5.42.) 486-18 CHAPTER 410. ADJUDICATION OF DISPUTES 486-19 SUBCHAPTER A. GENERAL PROVISIONS 486-20 Sec. 410.001. DEFINITIONS 486-21 Sec. 410.002. LAW GOVERNING LIABILITY PROCEEDINGS 486-22 Sec. 410.003. APPLICATION OF ADMINISTRATIVE PROCEDURE AND 486-23 TEXAS REGISTER ACT 486-24 Sec. 410.004. DIVISION OF HEARINGS 486-25 Sec. 410.005. VENUE FOR ADMINISTRATIVE PROCEEDINGS 486-26 Sec. 410.006. REPRESENTATION AT ADMINISTRATIVE PROCEEDINGS 486-27 (Sections 410.007-410.020 reserved for expansion) 487-1 SUBCHAPTER B. BENEFIT REVIEW CONFERENCE 487-2 Sec. 410.021. PURPOSE 487-3 Sec. 410.022. BENEFIT REVIEW OFFICERS; QUALIFICATIONS 487-4 Sec. 410.023. REQUEST FOR BENEFIT REVIEW CONFERENCE 487-5 Sec. 410.024. BENEFIT REVIEW CONFERENCE AS PREREQUISITE TO 487-6 FURTHER PROCEEDINGS ON CERTAIN CLAIMS 487-7 Sec. 410.025. SCHEDULING OF BENEFIT REVIEW CONFERENCE; 487-8 NOTICE 487-9 Sec. 410.026. POWERS AND DUTIES OF BENEFIT REVIEW OFFICER 487-10 Sec. 410.027. RULES 487-11 Sec. 410.028. FAILURE TO ATTEND; ADMINISTRATIVE VIOLATION 487-12 Sec. 410.029. RESOLUTION AT BENEFIT REVIEW CONFERENCE; 487-13 WRITTEN AGREEMENT 487-14 Sec. 410.030. BINDING EFFECT OF AGREEMENT 487-15 Sec. 410.031. INCOMPLETE RESOLUTION; REPORT 487-16 Sec. 410.032. PAYMENT OF BENEFITS UNDER INTERLOCUTORY ORDER; 487-17 REIMBURSEMENT 487-18 Sec. 410.033. MULTIPLE CARRIERS 487-19 Sec. 410.034. FILING OF AGREEMENT AND REPORT 487-20 (Sections 410.035-410.100 reserved for expansion) 487-21 SUBCHAPTER C. ARBITRATION 487-22 Sec. 410.101. PURPOSE 487-23 Sec. 410.102. ARBITRATORS; QUALIFICATIONS 487-24 Sec. 410.103. DUTIES OF ARBITRATOR 487-25 Sec. 410.104. ELECTION OF ARBITRATION; EFFECT 487-26 Sec. 410.105. LISTS OF ARBITRATORS 487-27 Sec. 410.106. SELECTION OF ARBITRATOR 488-1 Sec. 410.107. ASSIGNMENT OF ARBITRATOR 488-2 Sec. 410.108. REJECTION OF ARBITRATOR 488-3 Sec. 410.109. SCHEDULING OF ARBITRATION 488-4 Sec. 410.110. CONTINUANCE 488-5 Sec. 410.111. RULES 488-6 Sec. 410.112. EXCHANGE AND FILING OF INFORMATION; 488-7 ADMINISTRATIVE VIOLATION 488-8 Sec. 410.113. DUTIES OF PARTIES AT ARBITRATION; ATTENDANCE; 488-9 ADMINISTRATIVE VIOLATION 488-10 Sec. 410.114. TESTIMONY; RECORD 488-11 Sec. 410.115. EVIDENCE 488-12 Sec. 410.116. CLOSING STATEMENTS; BRIEFS 488-13 Sec. 410.117. EX PARTE CONTACTS PROHIBITED 488-14 Sec. 410.118. AWARD 488-15 Sec. 410.119. EFFECT OF AWARD 488-16 Sec. 410.120. CLERICAL ERROR 488-17 Sec. 410.121. COURT VACATING AWARD 488-18 (Sections 410.122-410.150 reserved for expansion) 488-19 SUBCHAPTER D. CONTESTED CASE HEARING 488-20 Sec. 410.151. CONTESTED CASE HEARING; SCOPE 488-21 Sec. 410.152. HEARING OFFICERS; QUALIFICATIONS 488-22 Sec. 410.153. APPLICATION OF ADMINISTRATIVE PROCEDURE AND 488-23 TEXAS REGISTER ACT 488-24 Sec. 410.154. SCHEDULING OF HEARING 488-25 Sec. 410.155. CONTINUANCE 488-26 Sec. 410.156. ATTENDANCE REQUIRED; ADMINISTRATIVE VIOLATION 488-27 Sec. 410.157. RULES 489-1 Sec. 410.158. DISCOVERY 489-2 Sec. 410.159. STANDARD INTERROGATORIES 489-3 Sec. 410.160. EXCHANGE OF INFORMATION 489-4 Sec. 410.161. FAILURE TO DISCLOSE INFORMATION 489-5 Sec. 410.162. ADDITIONAL DISCOVERY 489-6 Sec. 410.163. POWERS AND DUTIES OF HEARING OFFICER 489-7 Sec. 410.164. RECORD 489-8 Sec. 410.165. EVIDENCE 489-9 Sec. 410.166. STIPULATIONS 489-10 Sec. 410.167. EX PARTE CONTACTS PROHIBITED 489-11 Sec. 410.168. DECISION 489-12 Sec. 410.169. EFFECT OF DECISION 489-13 (Sections 410.170-410.200 reserved for expansion) 489-14 SUBCHAPTER E. APPEALS PANEL 489-15 Sec. 410.201. APPEALS JUDGES; QUALIFICATIONS 489-16 Sec. 410.202. REQUEST FOR APPEAL; RESPONSE 489-17 Sec. 410.203. POWERS AND DUTIES OF APPEALS PANEL; PRIORITY 489-18 OF HEARING ON REMAND 489-19 Sec. 410.204. DECISION 489-20 Sec. 410.205. EFFECT OF DECISION; REIMBURSEMENT FOR 489-21 OVERPAYMENT 489-22 Sec. 410.206. CLERICAL ERROR 489-23 Sec. 410.207. CONTINUATION OF COMMISSION JURISDICTION 489-24 Sec. 410.208. JUDICIAL ENFORCEMENT OF ORDER OR DECISION; 489-25 ADMINISTRATIVE VIOLATION 489-26 (Sections 410.209-410.250 reserved for expansion) 489-27 SUBCHAPTER F. JUDICIAL REVIEW--GENERAL PROVISIONS 490-1 Sec. 410.251. EXHAUSTION OF REMEDIES 490-2 Sec. 410.252. TIME FOR FILING PETITION; VENUE 490-3 Sec. 410.253. SERVICE 490-4 Sec. 410.254. COMMISSION INTERVENTION 490-5 Sec. 410.255. JUDICIAL REVIEW OF ISSUES OTHER THAN 490-6 COMPENSABILITY OR INCOME OR DEATH BENEFITS 490-7 Sec. 410.256. COURT APPROVAL OF SETTLEMENT 490-8 (Sections 410.257-410.300 reserved for expansion) 490-9 SUBCHAPTER G. JUDICIAL REVIEW OF ISSUES REGARDING 490-10 COMPENSABILITY OR INCOME OR DEATH BENEFITS 490-11 Sec. 410.301. JUDICIAL REVIEW OF ISSUES REGARDING 490-12 COMPENSABILITY OR INCOME OR DEATH BENEFITS 490-13 Sec. 410.302. LIMITATION OF ISSUES 490-14 Sec. 410.303. BURDEN OF PROOF 490-15 Sec. 410.304. CONSIDERATION OF APPEALS PANEL DECISION 490-16 Sec. 410.305. CONFLICT WITH RULES OF CIVIL PROCEDURE 490-17 Sec. 410.306. EVIDENCE 490-18 Sec. 410.307. SUBSTANTIAL CHANGE OF CONDITION 490-19 Sec. 410.308. CERTIFIED COPY OF NOTICE SECURING 490-20 COMPENSATION 490-21 CHAPTER 410. ADJUDICATION OF DISPUTES 490-22 SUBCHAPTER A. GENERAL PROVISIONS 490-23 Sec. 410.001. DEFINITIONS. In this chapter: 490-24 (1) "Director" means the director of the division. 490-25 (2) "Division" means the division of hearings. (New.) 490-26 Sec. 410.002. LAW GOVERNING LIABILITY PROCEEDINGS. A 490-27 proceeding before the commission to determine the liability of an 491-1 insurance carrier for compensation for an injury or death under 491-2 this subtitle is governed by this chapter. (V.A.C.S. 491-3 Art. 8308-6.01(b).) 491-4 Sec. 410.003. APPLICATION OF ADMINISTRATIVE PROCEDURE AND 491-5 TEXAS REGISTER ACT. Except as otherwise provided by this chapter, 491-6 the Administrative Procedure and Texas Register Act (Article 491-7 6252-13a, Vernon's Texas Civil Statutes) does not apply to a 491-8 proceeding under this chapter. (V.A.C.S. Art. 8308-6.01(a).) 491-9 Sec. 410.004. DIVISION OF HEARINGS. The division shall 491-10 conduct benefit review conferences, contested case hearings, 491-11 arbitration, and appeals within the commission related to workers' 491-12 compensation claims. (V.A.C.S. Art. 8308-6.02(a).) 491-13 Sec. 410.005. VENUE FOR ADMINISTRATIVE PROCEEDINGS. (a) 491-14 Unless the commission determines that good cause exists for the 491-15 selection of a different location, a benefit review conference or a 491-16 contested case hearing may not be conducted at a site more than 75 491-17 miles from the claimant's residence at the time of the injury. 491-18 (b) Unless the assigned arbitrator determines that good 491-19 cause exists for the selection of a different location, arbitration 491-20 may not be conducted at a site more than 75 miles from the 491-21 claimant's residence at the time of the injury. 491-22 (c) All appeals panel proceedings shall be conducted in 491-23 Travis County. (V.A.C.S. Art. 8308-6.03.) 491-24 Sec. 410.006. REPRESENTATION AT ADMINISTRATIVE PROCEEDINGS. 491-25 (a) A claimant may be represented at a benefit review conference, 491-26 a contested case hearing, or arbitration by an attorney or may be 491-27 assisted by an individual of the claimant's choice who does not 492-1 work for an attorney or receive a fee. An employee of an attorney 492-2 may represent a claimant if that employee: 492-3 (1) is a relative of the claimant; and 492-4 (2) does not receive a fee. 492-5 (b) An insurance carrier may be represented by an attorney 492-6 or adjuster. (V.A.C.S. Art. 8308-6.04.) 492-7 (Sections 410.007-410.020 reserved for expansion) 492-8 SUBCHAPTER B. BENEFIT REVIEW CONFERENCE 492-9 Sec. 410.021. PURPOSE. A benefit review conference is a 492-10 nonadversarial, informal dispute resolution proceeding designed to: 492-11 (1) explain, orally and in writing, the rights of the 492-12 respective parties to a workers' compensation claim and the 492-13 procedures necessary to protect those rights; 492-14 (2) discuss the facts of the claim, review available 492-15 information in order to evaluate the claim, and delineate the 492-16 disputed issues; and 492-17 (3) mediate and resolve disputed issues by agreement 492-18 of the parties in accordance with this subtitle and the policies of 492-19 the commission. (V.A.C.S. Art. 8308-6.11.) 492-20 Sec. 410.022. BENEFIT REVIEW OFFICERS; QUALIFICATIONS. (a) 492-21 A benefit review officer shall conduct a benefit review conference. 492-22 (b) A benefit review officer must: 492-23 (1) be an employee of the commission; and 492-24 (2) be trained in the principles and procedures of 492-25 dispute mediation. 492-26 (c) The commission shall institute and maintain an education 492-27 and training program for benefit review officers and shall consult 493-1 or contract with the Federal Mediation and Conciliation Service or 493-2 other appropriate organizations for this purpose. (V.A.C.S. 493-3 Art. 8308-6.02(b).) 493-4 Sec. 410.023. REQUEST FOR BENEFIT REVIEW CONFERENCE. On 493-5 receipt of a request from a party or on its own motion, the 493-6 commission may direct the parties to a disputed workers' 493-7 compensation claim to meet in a benefit review conference to 493-8 attempt to reach agreement on disputed issues involved in the 493-9 claim. (V.A.C.S. Art. 8308-6.12(a).) 493-10 Sec. 410.024. BENEFIT REVIEW CONFERENCE AS PREREQUISITE TO 493-11 FURTHER PROCEEDINGS ON CERTAIN CLAIMS. (a) Except as otherwise 493-12 provided by law or commission rule, the parties to a disputed 493-13 compensation claim are not entitled to a contested case hearing or 493-14 arbitration on the claim unless a benefit review conference is 493-15 conducted as provided by this subchapter. 493-16 (b) The commission by rule shall adopt guidelines relating 493-17 to claims that do not require a benefit review conference and may 493-18 proceed directly to a contested case hearing or arbitration. 493-19 (V.A.C.S. Art. 8308-6.12(c).) 493-20 Sec. 410.025. SCHEDULING OF BENEFIT REVIEW CONFERENCE; 493-21 NOTICE. (a) The commission by rule shall prescribe the time 493-22 within which a benefit review conference must be scheduled. 493-23 (b) At the time a benefit review conference is scheduled, 493-24 the commission shall schedule a contested case hearing to be held 493-25 not later than the 60th day after the date of the benefit review 493-26 conference if the disputed issues are not resolved at the benefit 493-27 review conference. 494-1 (c) The commission shall send written notice of the benefit 494-2 review conference to the parties to the claim and the employer. 494-3 (d) The commission by rule shall provide for expedited 494-4 proceedings in cases in which compensability or liability for 494-5 essential medical treatment is in dispute. (V.A.C.S. Arts. 494-6 8308-6.12(b), (d), (e) (part).) 494-7 Sec. 410.026. POWERS AND DUTIES OF BENEFIT REVIEW OFFICER. 494-8 (a) A benefit review officer shall: 494-9 (1) mediate disputes between the parties and assist in 494-10 the adjustment of the claim consistent with this subtitle and the 494-11 policies of the commission; 494-12 (2) thoroughly inform all parties of their rights and 494-13 responsibilities under this subtitle, especially in a case in which 494-14 the employee is not represented by an attorney or other 494-15 representative; and 494-16 (3) ensure that all documents and information relating 494-17 to the employee's wages, medical condition, and any other 494-18 information pertinent to the resolution of disputed issues are 494-19 contained in the claim file at the conference, especially in a case 494-20 in which the employee is not represented by an attorney or other 494-21 representative. 494-22 (b) A benefit review officer may reschedule a benefit review 494-23 conference if the benefit review officer determines that any 494-24 available information pertinent to the resolution of disputed 494-25 issues is not produced at the benefit review conference. 494-26 (c) A benefit review officer may not take testimony but may 494-27 direct questions to an employee, an employer, or a representative 495-1 of an insurance carrier to supplement or clarify information in a 495-2 claim file. 495-3 (d) A benefit review officer may not make a formal record. 495-4 (V.A.C.S. Art. 8308-6.13.) 495-5 Sec. 410.027. RULES. (a) The commission shall adopt rules 495-6 for conducting benefit review conferences. 495-7 (b) A benefit review conference is not subject to common law 495-8 or statutory rules of evidence or procedure. (V.A.C.S. 495-9 Art. 8308-6.14.) 495-10 Sec. 410.028. FAILURE TO ATTEND; ADMINISTRATIVE VIOLATION. 495-11 (a) A scheduled benefit review conference shall be conducted even 495-12 though a party fails to attend unless the benefit review officer 495-13 determines that good cause exists to reschedule the conference. 495-14 (b) A party commits a violation if the party fails to attend 495-15 a benefit review conference without good cause as determined by the 495-16 benefit review officer. A violation under this subsection is a 495-17 Class D administrative violation. (V.A.C.S. Art. 8308-6.12(e) 495-18 (part).) 495-19 Sec. 410.029. Resolution at Benefit Review Conference; 495-20 Written Agreement. (a) A dispute may be resolved either in whole 495-21 or in part at a benefit review conference. 495-22 (b) If the conference results in the resolution of some 495-23 disputed issues by agreement or in a settlement, the benefit review 495-24 officer shall reduce the agreement or the settlement to writing. 495-25 The benefit review officer and each party or the designated 495-26 representative of the party shall sign the agreement or settlement. 495-27 (c) A settlement takes effect on the date it is approved by 496-1 the director in accordance with Section 408.005. (V.A.C.S. 496-2 Art. 8308-6.15(a).) 496-3 Sec. 410.030. BINDING EFFECT OF AGREEMENT. (a) An 496-4 agreement signed in accordance with Section 410.029 is binding on 496-5 the insurance carrier through the conclusion of all matters 496-6 relating to the claim, unless the commission or a court, on a 496-7 finding of fraud, newly discovered evidence, or other good and 496-8 sufficient cause, relieves the insurance carrier of the effect of 496-9 the agreement. 496-10 (b) The agreement is binding on the claimant, if represented 496-11 by an attorney, to the same extent as on the insurance carrier. If 496-12 the claimant is not represented by an attorney, the agreement is 496-13 binding on the claimant through the conclusion of all matters 496-14 relating to the claim while the claim is pending before the 496-15 commission, unless the commission for good cause relieves the 496-16 claimant of the effect of the agreement. (V.A.C.S. Arts. 496-17 8308-6.15(b), (c).) 496-18 Sec. 410.031. INCOMPLETE RESOLUTION; REPORT. (a) If a 496-19 dispute is not entirely resolved at a benefit review conference, 496-20 the benefit review officer shall prepare a written report that 496-21 details each issue that is not settled at the conference. 496-22 (b) The report must also include: 496-23 (1) a statement of each resolved issue; 496-24 (2) a statement of each issue raised but not resolved; 496-25 (3) a statement of the position of the parties 496-26 regarding each unresolved issue; 496-27 (4) the officer's recommendation regarding each 497-1 unresolved issue; 497-2 (5) the officer's recommendations regarding the 497-3 payment or denial of benefits; 497-4 (6) a statement of any interlocutory orders entered 497-5 under Sections 410.032 and 410.033(a); and 497-6 (7) a statement of the procedures required to request 497-7 a contested case hearing or arbitration and a complete explanation 497-8 of the differences in those proceedings and the rights of the 497-9 parties to subsequent review of the determinations made in those 497-10 proceedings. (V.A.C.S. Art. 8308-6.15(d).) 497-11 Sec. 410.032. PAYMENT OF BENEFITS UNDER INTERLOCUTORY ORDER; 497-12 REIMBURSEMENT. (a) If a benefit review officer recommends that 497-13 benefits be paid or not paid, the benefit review officer may issue 497-14 an interlocutory order to pay or not pay the benefits. 497-15 (b) The subsequent injury fund shall reimburse an insurance 497-16 carrier for any overpayments of benefits made under an order 497-17 entered under this section if that order is reversed or modified at 497-18 a contested case hearing or at arbitration. The commission shall 497-19 adopt rules to provide for a periodic reimbursement schedule, 497-20 providing for reimbursement at least annually. (V.A.C.S. 497-21 Art. 8308-6.15(e).) 497-22 Sec. 410.033. MULTIPLE CARRIERS. (a) If there is a dispute 497-23 as to which of two or more insurance carriers is liable for 497-24 compensation for one or more compensable injuries, the benefit 497-25 review officer may issue an interlocutory order directing each 497-26 insurance carrier to pay a proportionate share of benefits due 497-27 pending a final decision on liability. The proportionate share is 498-1 computed by dividing the compensation due by the number of 498-2 insurance carriers involved. 498-3 (b) On final determination of liability, an insurance 498-4 carrier determined to be not liable for the payment of benefits is 498-5 entitled to reimbursement for the share paid by the insurance 498-6 carrier from any insurance carrier determined to be liable. 498-7 (V.A.C.S. Arts. 8308-6.15(f), (g).) 498-8 Sec. 410.034. FILING OF AGREEMENT AND REPORT. (a) The 498-9 benefit review officer shall file the signed agreement and the 498-10 report with the director. 498-11 (b) The commission by rule shall prescribe the times within 498-12 which the agreement and report must be filed. 498-13 (c) The director shall furnish a copy of the file-stamped 498-14 report to: 498-15 (1) the claimant; 498-16 (2) the employer; and 498-17 (3) the insurance carrier. (V.A.C.S. Art. 498-18 8308-6.15(h).) 498-19 (Sections 410.035-410.100 reserved for expansion) 498-20 SUBCHAPTER C. ARBITRATION 498-21 Sec. 410.101. PURPOSE. The purpose of arbitration is to: 498-22 (1) enter into formal, binding stipulations on issues 498-23 on which the parties agree; 498-24 (2) resolve issues on which the parties disagree; and 498-25 (3) render a final award with respect to all issues in 498-26 dispute. (V.A.C.S. Art. 8308-6.22.) 498-27 Sec. 410.102. ARBITRATORS; QUALIFICATIONS. (a) An 499-1 arbitrator must be an employee of the commission, except that the 499-2 commission may contract with qualified arbitrators on a 499-3 determination of special need. 499-4 (b) An arbitrator must: 499-5 (1) be a member of the National Academy of 499-6 Arbitrators; 499-7 (2) be on an approved list of the American Arbitration 499-8 Association or Federal Mediation and Conciliation Service; or 499-9 (3) meet qualifications established by the commission 499-10 by rule and be approved by an affirmative vote of at least two 499-11 commission members representing employers of labor and at least two 499-12 commission members representing wage earners. 499-13 (c) The commission shall require that each arbitrator have 499-14 appropriate training in the workers' compensation laws of this 499-15 state. The commission shall establish procedures to carry out this 499-16 subsection. (V.A.C.S. Arts. 8308-6.02(d) (part), (e).) 499-17 Sec. 410.103. DUTIES OF ARBITRATOR. An arbitrator shall: 499-18 (1) protect the interests of all parties; 499-19 (2) ensure that all relevant evidence has been 499-20 disclosed to the arbitrator and to all parties; and 499-21 (3) render an award consistent with this subtitle and 499-22 the policies of the commission. (V.A.C.S. Art. 8308-6.24(f).) 499-23 Sec. 410.104. ELECTION OF ARBITRATION; EFFECT. (a) If 499-24 issues remain unresolved after a benefit review conference, the 499-25 parties, by agreement, may elect to engage in arbitration in the 499-26 manner provided by this subchapter. Arbitration may be used only 499-27 to resolve disputed benefit issues and is an alternative to a 500-1 contested case hearing. A contested case hearing scheduled under 500-2 Section 410.025(b) is canceled by an election under this 500-3 subchapter. 500-4 (b) To elect arbitration, the parties must file the election 500-5 with the commission not later than the 20th day after the last day 500-6 of the benefit review conference. The commission shall prescribe a 500-7 form for that purpose. 500-8 (c) An election to engage in arbitration under this 500-9 subchapter is irrevocable and binding on all parties for the 500-10 resolution of all disputes arising out of the claims that are under 500-11 the jurisdiction of the commission. 500-12 (d) An agreement to elect arbitration binds the parties to 500-13 the provisions of Chapter 408 relating to benefits, and any award, 500-14 agreement, or settlement after arbitration is elected must comply 500-15 with that chapter. (V.A.C.S. Arts. 8308-6.21, 8308-6.25.) 500-16 Sec. 410.105. LISTS OF ARBITRATORS. (a) The commission 500-17 shall establish regional lists of arbitrators who meet the 500-18 qualifications prescribed under Sections 410.102(a) and (b). Each 500-19 regional list shall be initially prepared in a random name order, 500-20 and subsequent additions to a list shall be added chronologically. 500-21 (b) The commission shall review the lists of arbitrators 500-22 annually and determine if each arbitrator is fair and impartial and 500-23 makes awards that are consistent with and in accordance with this 500-24 subtitle and the rules of the commission. The commission shall 500-25 remove an arbitrator if after review the arbitrator does not 500-26 receive an affirmative vote of at least two commission members 500-27 representing employers of labor and at least two commission members 501-1 representing wage earners. 501-2 (c) The commission's lists are confidential and are not 501-3 subject to disclosure under the open records law, Chapter 424, Acts 501-4 of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a, 501-5 Vernon's Texas Civil Statutes). The lists may not be revealed by 501-6 any commission employee to any person who is not a commission 501-7 employee. The lists are exempt from discovery in civil litigation 501-8 unless the party seeking the discovery establishes reasonable cause 501-9 to believe that a violation of the requirements of this section or 501-10 Section 410.106, 410.107, 410.108, or 410.109(b) occurred and that 501-11 the violation is relevant to the issues in dispute. (V.A.C.S. 501-12 Arts. 8308-6.02(d) (part), (f); 8308-6.23(a) (part), (d).) 501-13 Sec. 410.106. SELECTION OF ARBITRATOR. The commission shall 501-14 assign the arbitrator for a particular case by selecting the next 501-15 name after the previous case's selection in consecutive order. The 501-16 commission may not change the order of names once the order is 501-17 established under this subchapter, except that once each arbitrator 501-18 on the list has been assigned to a case, the names shall be 501-19 randomly reordered. (V.A.C.S. Art. 8308-6.23(a) (part).) 501-20 Sec. 410.107. ASSIGNMENT OF ARBITRATOR. (a) The commission 501-21 shall assign an arbitrator to a pending case not later than the 501-22 30th day after the date on which the election for arbitration is 501-23 filed with the commission. 501-24 (b) When an arbitrator has been assigned to a case under 501-25 Subsection (a), the parties shall be notified immediately. 501-26 (V.A.C.S. Arts. 8308-6.23(a) (part), (b) (part).) 501-27 Sec. 410.108. REJECTION OF ARBITRATOR. (a) Each party is 502-1 entitled, in its sole discretion, to one rejection of the 502-2 arbitrator in each case. If a party rejects the arbitrator, the 502-3 commission shall assign another arbitrator as provided by Section 502-4 410.106. 502-5 (b) A rejection must be made not later than the third day 502-6 after the date of notification of the arbitrator's assignment. 502-7 (c) When all parties have exercised their right of rejection 502-8 or if no rejection is registered, the assignment is final. 502-9 (V.A.C.S. Art. 8308-6.23(b) (part).) 502-10 Sec. 410.109. SCHEDULING OF ARBITRATION. (a) The 502-11 arbitrator shall schedule arbitration to be held not later than the 502-12 30th day after the date of the arbitrator's assignment and shall 502-13 notify the parties and the commission of the scheduled date. 502-14 (b) If an arbitrator is unable to schedule arbitration in 502-15 accordance with Subsection (a), the commission shall appoint the 502-16 next arbitrator on the applicable list. Each party is entitled to 502-17 reject the arbitrator appointed under this subsection in the manner 502-18 provided under Section 410.108. (V.A.C.S. Arts. 8308-6.23(c), 502-19 8308-6.24(a).) 502-20 Sec. 410.110. CONTINUANCE. (a) A request by a party for a 502-21 continuance of the arbitration to another date must be directed to 502-22 the director. The director may grant a continuance only if the 502-23 director determines, giving due regard to the availability of the 502-24 arbitrator, that good cause for the continuance exists. 502-25 (b) If the director grants a continuance under this section, 502-26 the rescheduled date may not be later than the 30th day after the 502-27 original date of the arbitration. 503-1 (c) Without regard to whether good cause exists, the 503-2 director may not grant more than one continuance to each party. 503-3 (V.A.C.S. Art. 8308-6.24(b).) 503-4 Sec. 410.111. RULES. The commission shall adopt rules for 503-5 arbitration consistent with generally recognized arbitration 503-6 principles and procedures. (V.A.C.S. Art. 8308-6.24(c).) 503-7 Sec. 410.112. EXCHANGE AND FILING OF INFORMATION; 503-8 ADMINISTRATIVE VIOLATION. (a) Not later than the seventh day 503-9 before the first day of arbitration, the parties shall exchange and 503-10 file with the arbitrator: 503-11 (1) all medical reports and other documentary evidence 503-12 not previously exchanged or filed that are pertinent to the 503-13 resolution of the claim; and 503-14 (2) information relating to their proposed resolution 503-15 of the disputed issues. 503-16 (b) A party commits a violation if the party, without good 503-17 cause as determined by the arbitrator, fails to comply with 503-18 Subsection (a). A violation under this subsection is a Class D 503-19 administrative violation. (V.A.C.S. Art. 8308-6.24(e).) 503-20 Sec. 410.113. DUTIES OF PARTIES AT ARBITRATION; ATTENDANCE; 503-21 ADMINISTRATIVE VIOLATION. (a) Each party shall attend the 503-22 arbitration prepared to set forth in detail its position on 503-23 unresolved issues and the issues on which it is prepared to 503-24 stipulate. 503-25 (b) A party commits a violation if the party does not attend 503-26 the arbitration unless the arbitrator determines that the party had 503-27 good cause not to attend. A violation under this subsection is a 504-1 Class D administrative violation. (V.A.C.S. Art. 8308-6.24(d).) 504-2 Sec. 410.114. TESTIMONY; RECORD. (a) The arbitrator may 504-3 require witnesses to testify under oath and shall require testimony 504-4 under oath if requested by a party. 504-5 (b) The commission shall make an electronic recording of the 504-6 proceeding. 504-7 (c) An official stenographic record is not required, but any 504-8 party may at the party's expense make a stenographic record of the 504-9 proceeding. (V.A.C.S. Art. 8308-6.24(g).) 504-10 Sec. 410.115. EVIDENCE. (a) The parties may offer evidence 504-11 as they desire and shall produce additional evidence as the 504-12 arbitrator considers necessary to an understanding and 504-13 determination of the dispute. 504-14 (b) The arbitrator is the judge of the relevance and 504-15 materiality of the evidence offered. Conformity to legal rules of 504-16 evidence is not required. (V.A.C.S. Art. 8308-6.24(h) (part).) 504-17 Sec. 410.116. CLOSING STATEMENTS; BRIEFS. The parties may 504-18 present closing statements as they desire, but the record may not 504-19 remain open for written briefs unless requested by the arbitrator. 504-20 (V.A.C.S. Art. 8308-6.24(h) (part).) 504-21 Sec. 410.117. EX PARTE CONTACTS PROHIBITED. A party and an 504-22 arbitrator may not communicate outside the arbitration unless the 504-23 communication is in writing with copies provided to all parties or 504-24 relates to procedural matters. (V.A.C.S. Art. 8308-6.24(i).) 504-25 Sec. 410.118. AWARD. (a) The arbitrator shall enter the 504-26 arbitrator's award not later than the seventh day after the last 504-27 day of arbitration. 505-1 (b) The arbitrator shall base the award on the facts 505-2 established at arbitration, including stipulations of the parties, 505-3 and on the law as properly applied to those facts. 505-4 (c) The award must: 505-5 (1) be in writing; 505-6 (2) be signed and dated by the arbitrator; and 505-7 (3) include a statement of the arbitrator's decision 505-8 on the contested issues and the parties' stipulations on 505-9 uncontested issues. 505-10 (d) The arbitrator shall file a copy of the award as part of 505-11 the permanent claim file at the commission and shall notify the 505-12 parties in writing of the decision. (V.A.C.S. Arts. 8308-6.26(a), 505-13 (b), (c).) 505-14 Sec. 410.119. EFFECT OF AWARD. (a) An arbitrator's award 505-15 is final and binding on all parties. Except as provided by Section 505-16 410.121, there is no right to appeal. 505-17 (b) An arbitrator's award is a final order of the 505-18 commission. (V.A.C.S. Arts. 8308-6.26(d), (e).) 505-19 Sec. 410.120. CLERICAL ERROR. For the purpose of correcting 505-20 a clerical error, an arbitrator retains jurisdiction of the award 505-21 for 20 days after the date of the award. (V.A.C.S. Art. 505-22 8308-6.27.) 505-23 Sec. 410.121. COURT VACATING AWARD. (a) On application of 505-24 an aggrieved party, a court of competent jurisdiction shall vacate 505-25 an arbitrator's award on a finding that: 505-26 (1) the award was procured by corruption, fraud, or 505-27 misrepresentation; 506-1 (2) the decision of the arbitrator was arbitrary and 506-2 capricious; or 506-3 (3) the award was outside the jurisdiction of the 506-4 commission. 506-5 (b) If an award is vacated, the case shall be remanded to 506-6 the commission for another arbitration proceeding. 506-7 (c) A suit to vacate an award must be filed not later than 506-8 the 30th day after: 506-9 (1) the date of the award; or 506-10 (2) the date the appealing party knew or should have 506-11 known of a basis for suit under this section, but in no event later 506-12 than 12 months after an order denying compensation or after the 506-13 expiration of the income or death benefit period. 506-14 (d) Venue for a suit to vacate an award is in the county in 506-15 which the arbitration was conducted. 506-16 (e) In a suit to vacate an arbitrator's award, only the 506-17 court may make determinations, including findings of fact or 506-18 conclusions of law. (V.A.C.S. Art. 8308-6.28.) 506-19 (Sections 410.122-410.150 reserved for expansion) 506-20 SUBCHAPTER D. CONTESTED CASE HEARING 506-21 Sec. 410.151. CONTESTED CASE HEARING; SCOPE. (a) If 506-22 arbitration is not elected under Section 410.104, a party to a 506-23 claim for which a benefit review conference is held or a party 506-24 eligible to proceed directly to a contested case hearing as 506-25 provided by Section 410.024 is entitled to a contested case 506-26 hearing. 506-27 (b) An issue that was not raised at a benefit review 507-1 conference or that was resolved at a benefit review conference may 507-2 not be considered unless: 507-3 (1) the parties consent; or 507-4 (2) if the issue was not raised, the commission 507-5 determines that good cause existed for not raising the issue at the 507-6 conference. (V.A.C.S. Art. 8308-6.31(a).) 507-7 Sec. 410.152. HEARING OFFICERS; QUALIFICATIONS. (a) A 507-8 hearing officer shall conduct a contested case hearing. 507-9 (b) A hearing officer must be licensed to practice law in 507-10 this state. (V.A.C.S. Art. 8308-6.02(c).) 507-11 Sec. 410.153. APPLICATION OF ADMINISTRATIVE PROCEDURE AND 507-12 TEXAS REGISTER ACT. The Administrative Procedure and Texas 507-13 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) 507-14 applies to a contested case hearing to the extent that the 507-15 commission finds appropriate, except that Sections 15 through 23 of 507-16 that Act do not apply. (V.A.C.S. Art. 8308-6.32.) 507-17 Sec. 410.154. SCHEDULING OF HEARING. The commission shall 507-18 schedule a contested case hearing in accordance with Section 507-19 410.024 or 410.025(b). (V.A.C.S. Art. 8308-6.31(b).) 507-20 Sec. 410.155. CONTINUANCE. (a) A written request by a 507-21 party for a continuance of a contested case hearing to another date 507-22 must be directed to the commission. 507-23 (b) The commission may grant a continuance only if the 507-24 commission determines that there is good cause for the continuance. 507-25 (V.A.C.S. Art. 8308-6.31(c).) 507-26 Sec. 410.156. ATTENDANCE REQUIRED; ADMINISTRATIVE VIOLATION. 507-27 (a) Each party shall attend a contested case hearing. 508-1 (b) A party commits a violation if the party, without good 508-2 cause as determined by the hearing officer, does not attend a 508-3 contested case hearing. A violation under this subsection is a 508-4 Class C administrative violation. (V.A.C.S. Art. 8308-6.34(f).) 508-5 Sec. 410.157. RULES. The commission shall adopt rules 508-6 governing procedures under which contested case hearings are 508-7 conducted. (V.A.C.S. Art. 8308-6.31(d).) 508-8 Sec. 410.158. DISCOVERY. (a) Except as provided by Section 508-9 410.162, discovery is limited to: 508-10 (1) depositions on written questions to any health 508-11 care provider; 508-12 (2) depositions of other witnesses as permitted by the 508-13 hearing officer for good cause shown; and 508-14 (3) interrogatories as prescribed by the commission. 508-15 (b) Discovery under Subsection (a) may not seek information 508-16 that may readily be derived from documentary evidence described in 508-17 Section 410.160. Answers to discovery under Subsection (a) need 508-18 not duplicate information that may readily be derived from 508-19 documentary evidence described in Section 410.160. (V.A.C.S. Arts. 508-20 8308-6.33(a), (c).) 508-21 Sec. 410.159. STANDARD INTERROGATORIES. (a) The commission 508-22 by rule shall prescribe standard form sets of interrogatories to 508-23 elicit information from claimants and insurance carriers. 508-24 (b) Standard interrogatories shall be answered by each party 508-25 and served on the opposing party within the time prescribed by 508-26 commission rule, unless the parties agree otherwise. (V.A.C.S. 508-27 Art. 8308-6.33(b).) 509-1 Sec. 410.160. EXCHANGE OF INFORMATION. Within the time 509-2 prescribed by commission rule, the parties shall exchange: 509-3 (1) all medical reports and reports of expert 509-4 witnesses who will be called to testify at the hearing; 509-5 (2) all medical records; 509-6 (3) any witness statements; 509-7 (4) the identity and location of any witness known to 509-8 the parties to have knowledge of relevant facts; and 509-9 (5) all photographs or other documents that a party 509-10 intends to offer into evidence at the hearing. (V.A.C.S. Art. 509-11 8308-6.33(d).) 509-12 Sec. 410.161. FAILURE TO DISCLOSE INFORMATION. A party who 509-13 fails to disclose information known to the party or documents that 509-14 are in the party's possession, custody, or control at the time 509-15 disclosure is required by Sections 410.158-410.160 may not 509-16 introduce the evidence at any subsequent proceeding before the 509-17 commission or in court on the claim unless good cause is shown for 509-18 not having disclosed the information or documents under those 509-19 sections. (V.A.C.S. Art. 8308-6.33(e).) 509-20 Sec. 410.162. ADDITIONAL DISCOVERY. For good cause shown, a 509-21 party may obtain permission from the hearing officer to conduct 509-22 additional discovery as necessary. (V.A.C.S. Art. 8308-6.33(f).) 509-23 Sec. 410.163. POWERS AND DUTIES OF HEARING OFFICER. (a) At 509-24 a contested case hearing the hearing officer shall: 509-25 (1) swear witnesses; 509-26 (2) receive testimony; 509-27 (3) allow examination and cross-examination of 510-1 witnesses; 510-2 (4) accept documents and other tangible evidence; and 510-3 (5) allow the presentation of evidence by affidavit. 510-4 (b) A hearing officer shall ensure the preservation of the 510-5 rights of the parties and the full development of facts required 510-6 for the determinations to be made. A hearing officer may permit 510-7 the use of summary procedures, if appropriate, including witness 510-8 statements, summaries, and similar measures to expedite the 510-9 proceedings. (V.A.C.S. Arts. 8308-6.34(a), (b).) 510-10 Sec. 410.164. RECORD. (a) The proceedings of a contested 510-11 case hearing shall be recorded electronically. A party may request 510-12 a transcript of the proceeding and shall pay the reasonable cost of 510-13 the transcription. 510-14 (b) A party may request that the proceedings of the 510-15 contested case hearing be recorded by a court reporter. The party 510-16 making the request shall bear the cost. (V.A.C.S. Arts. 510-17 8308-6.34(c), (d).) 510-18 Sec. 410.165. EVIDENCE. (a) The hearing officer is the 510-19 sole judge of the relevance and materiality of the evidence offered 510-20 and of the weight and credibility to be given to the evidence. 510-21 Conformity to legal rules of evidence is not necessary. 510-22 (b) A hearing officer may accept a written statement signed 510-23 by a witness and shall accept all written reports signed by a 510-24 health care provider. (V.A.C.S. Art. 8308-6.34(e) (part).) 510-25 Sec. 410.166. STIPULATIONS. A written stipulation or 510-26 agreement of the parties that is filed in the record or an oral 510-27 stipulation or agreement of the parties that is preserved in the 511-1 record is final and binding. (V.A.C.S. Art. 8308-6.34(e) (part).) 511-2 Sec. 410.167. EX PARTE CONTACTS PROHIBITED. A party and a 511-3 hearing officer may not communicate outside the contested case 511-4 hearing unless the communication is in writing with copies provided 511-5 to all parties or relates to procedural matters. (V.A.C.S. Art. 511-6 8308-6.34(i).) 511-7 Sec. 410.168. DECISION. (a) The hearing officer shall 511-8 issue a written decision that includes: 511-9 (1) findings of fact and conclusions of law; 511-10 (2) a determination of whether benefits are due; and 511-11 (3) an award of benefits due. 511-12 (b) On a form that the commission by rule prescribes, the 511-13 hearing officer shall issue a separate written decision regarding 511-14 attorney's fees and any matter related to attorney's fees. The 511-15 decision regarding attorney's fees and the form may not be made 511-16 known to a jury in a judicial review of an award, including an 511-17 appeal. 511-18 (c) The commission by rule shall prescribe the times within 511-19 which the hearing officer must file the decisions with the 511-20 division. 511-21 (d) The division shall send a copy of the decision to each 511-22 party. (V.A.C.S. Art. 8308-6.34(g).) 511-23 Sec. 410.169. EFFECT OF DECISION. A decision of a hearing 511-24 officer regarding benefits is final in the absence of a timely 511-25 appeal by a party and is binding during the pendency of an appeal 511-26 to the appeals panel. (V.A.C.S. Art. 8308-6.34(h).) 511-27 (Sections 410.170-410.200 reserved for expansion) 512-1 SUBCHAPTER E. APPEALS PANEL 512-2 Sec. 410.201. APPEALS JUDGES; QUALIFICATIONS. (a) Appeals 512-3 judges, in panels of three, shall conduct administrative appeals 512-4 proceedings. 512-5 (b) An appeals judge must be licensed to practice law in 512-6 this state. 512-7 (c) An appeals judge may not conduct a benefit review 512-8 conference or a contested case hearing. (V.A.C.S. Art. 512-9 8308-6.02(g).) 512-10 Sec. 410.202. REQUEST FOR APPEAL; RESPONSE. (a) To appeal 512-11 the decision of a hearing officer, a party shall file a written 512-12 request for appeal with the appeals panel not later than the 15th 512-13 day after the date on which the decision of the hearing officer is 512-14 received from the division and shall on the same date serve a copy 512-15 of the request for appeal on the other party. 512-16 (b) The respondent shall file a written response with the 512-17 appeals panel not later than the 15th day after the date on which 512-18 the copy of the request for appeal is served and shall on the same 512-19 date serve a copy of the response on the appellant. 512-20 (c) A request for appeal or a response must clearly and 512-21 concisely rebut or support the decision of the hearing officer on 512-22 each issue on which review is sought. (V.A.C.S. Art. 8308-6.41.) 512-23 Sec. 410.203. POWERS AND DUTIES OF APPEALS PANEL; PRIORITY 512-24 OF HEARING ON REMAND. (a) An appeals panel shall consider: 512-25 (1) the record developed at the contested case 512-26 hearing; and 512-27 (2) the written request for appeal and response filed 513-1 with the appeals panel. 513-2 (b) An appeals panel may: 513-3 (1) affirm the decision of the hearing officer; 513-4 (2) reverse that decision and render a new decision; 513-5 or 513-6 (3) reverse that decision and remand the case to the 513-7 hearing officer for further consideration and development of 513-8 evidence. 513-9 (c) An appeals panel may not remand a case under Subsection 513-10 (b)(3) more than once. 513-11 (d) A hearing on remand shall be accelerated and the 513-12 commission shall adopt rules to give priority to the hearing over 513-13 other proceedings. (V.A.C.S. Arts. 8308-6.42(a), (b).) 513-14 Sec. 410.204. DECISION. (a) An appeals panel shall issue a 513-15 decision that determines each issue on which review was requested. 513-16 The decision must be in writing and shall be issued not later than 513-17 the 30th day after the date on which the written response to the 513-18 request for appeal is filed. The appeals panel shall file a copy 513-19 of the decision with the director. 513-20 (b) A copy of the decision of the appeals panel shall be 513-21 sent to each party not later than the seventh day after the date 513-22 the decision is filed with the commission. 513-23 (c) If an appeals panel does not issue its decision in 513-24 accordance with this section, the decision of the hearing officer 513-25 becomes final and is the final decision of the appeals panel. 513-26 (V.A.C.S. Art. 8308-6.42(c).) 513-27 Sec. 410.205. EFFECT OF DECISION; REIMBURSEMENT FOR 514-1 OVERPAYMENT. (a) A decision of an appeals panel regarding 514-2 benefits is final in the absence of a timely appeal for judicial 514-3 review. 514-4 (b) The decision of the appeals panel regarding benefits is 514-5 binding during the pendency of an appeal under Subchapter F or G. 514-6 (c) If the court of last resort in the case finally modifies 514-7 or reverses an appeals panel decision awarding benefits, the 514-8 insurance carrier who has paid benefits as required by this section 514-9 may recover reimbursement of any benefit overpayments from the 514-10 subsequent injury fund. (V.A.C.S. Arts. 8308-6.42(d), (e).) 514-11 Sec. 410.206. CLERICAL ERROR. The executive director may 514-12 revise a decision in a contested case hearing on a finding of 514-13 clerical error. (V.A.C.S. Art. 8308-6.44.) 514-14 Sec. 410.207. CONTINUATION OF COMMISSION JURISDICTION. 514-15 During judicial review of an appeals panel decision on any disputed 514-16 issue relating to a workers' compensation claim, the commission 514-17 retains jurisdiction of all other issues related to the claim. 514-18 (V.A.C.S. Art. 8308-6.43.) 514-19 Sec. 410.208. JUDICIAL ENFORCEMENT OF ORDER OR DECISION; 514-20 ADMINISTRATIVE VIOLATION. (a) If an insurance carrier refuses or 514-21 fails to comply with a final order or decision of the commission, 514-22 the claimant may bring suit in the county of the claimant's 514-23 residence or the county in which the injury occurred to enforce the 514-24 award as a final and binding order of the commission. 514-25 (b) In addition to a judgment enforcing the order, the 514-26 claimant is entitled to a penalty equal to 12 percent of the amount 514-27 of benefits recovered in the judgment and interest, with reasonable 515-1 attorney's fees for the prosecution and collection of the claim. 515-2 (c) A person commits a violation if the person fails or 515-3 refuses to comply with a commission order or decision within 20 515-4 days after the date the order or decision becomes final. A 515-5 violation under this subsection is a Class A administrative 515-6 violation. (V.A.C.S. Art. 8308-6.45.) 515-7 (Sections 410.209-410.250 reserved for expansion) 515-8 SUBCHAPTER F. JUDICIAL REVIEW--GENERAL PROVISIONS 515-9 Sec. 410.251. EXHAUSTION OF REMEDIES. A party that has 515-10 exhausted its administrative remedies under this subtitle and that 515-11 is aggrieved by a final decision of the appeals panel may seek 515-12 judicial review under this subchapter and Subchapter G, if 515-13 applicable. (V.A.C.S. Art. 8308-6.61(a) (part).) 515-14 Sec. 410.252. TIME FOR FILING PETITION; VENUE. (a) A party 515-15 may seek judicial review by filing suit not later than the 40th day 515-16 after the date on which the decision of the appeals panel was filed 515-17 with the division. 515-18 (b) The party bringing suit to appeal the decision must file 515-19 a petition with the appropriate court in: 515-20 (1) the county where the employee resided at the time 515-21 of the injury or death, if the employee is deceased; or 515-22 (2) in the case of an occupational disease, in the 515-23 county where the employee resided on the date disability began or 515-24 any county agreed to by the parties. (V.A.C.S. Arts. 8308-6.61(a) 515-25 (part), (b), (c).) 515-26 Sec. 410.253. SERVICE. A copy of the petition shall be 515-27 simultaneously filed with the court and the commission and served 516-1 on any opposing party. (V.A.C.S. Art. 8308-6.61(d).) 516-2 Sec. 410.254. COMMISSION INTERVENTION. On timely motion 516-3 initiated by the executive director, the commission shall be 516-4 permitted to intervene in any judicial proceeding under this 516-5 subchapter or Subchapter G. (V.A.C.S. Art. 8308-6.61(e).) 516-6 Sec. 410.255. JUDICIAL REVIEW OF ISSUES OTHER THAN 516-7 COMPENSABILITY OR INCOME OR DEATH BENEFITS. (a) For all issues 516-8 other than those covered under Section 410.301(a), judicial review 516-9 shall be conducted in the manner provided for judicial review of a 516-10 contested case under Section 19, Administrative Procedure and Texas 516-11 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes). 516-12 (b) Judicial review conducted under this section is governed 516-13 by the substantial evidence rule. (V.A.C.S. Art. 8308-6.64.) 516-14 Sec. 410.256. COURT APPROVAL OF SETTLEMENT. (a) The trial 516-15 court must approve a settlement made by the parties after judicial 516-16 review of an award is sought and before the court enters judgment. 516-17 The court may not approve a settlement except on a finding that: 516-18 (1) the settlement accurately reflects the agreement 516-19 between the parties; 516-20 (2) the settlement adheres to all appropriate 516-21 provisions of the law; and 516-22 (3) under the law and facts, the settlement is in the 516-23 best interest of the claimant. 516-24 (b) A settlement may not provide for: 516-25 (1) payment of any benefits in a lump sum except as 516-26 provided by Section 408.128; or 516-27 (2) the limitation or termination of the claimant's 517-1 right to medical benefits under Section 408.021. 517-2 (c) A settlement or agreement that resolves an issue of 517-3 impairment may not be made before the claimant reaches maximum 517-4 medical improvement and must adopt one of the impairment ratings 517-5 under Subchapter G, Chapter 408. 517-6 (d) A party proposing a settlement before judgment is 517-7 entered by the trial court may petition the court orally or in 517-8 writing for approval of the settlement. (V.A.C.S. Art. 8308-6.63.) 517-9 (Sections 410.257-410.300 reserved for expansion) 517-10 SUBCHAPTER G. JUDICIAL REVIEW OF ISSUES 517-11 REGARDING COMPENSABILITY OR INCOME OR DEATH BENEFITS 517-12 Sec. 410.301. JUDICIAL REVIEW OF ISSUES REGARDING 517-13 COMPENSABILITY OR INCOME OR DEATH BENEFITS. (a) Judicial review 517-14 of a final decision of a commission appeals panel regarding 517-15 compensability or eligibility for or the amount of income or death 517-16 benefits shall be conducted as provided by this subchapter. 517-17 (b) A determination of benefits before a court shall be in 517-18 accordance with this subtitle. (V.A.C.S. Arts. 8308-6.62(a), (l).) 517-19 Sec. 410.302. LIMITATION OF ISSUES. A trial under this 517-20 subchapter is limited to issues decided by the commission appeals 517-21 panel and on which judicial review is sought. The pleadings must 517-22 specifically set forth the determinations of the appeals panel by 517-23 which the party is aggrieved. (V.A.C.S. Art. 8308-6.62(b).) 517-24 Sec. 410.303. BURDEN OF PROOF. The party appealing the 517-25 decision on an issue described in Section 410.301(a) has the burden 517-26 of proof by a preponderance of the evidence. (V.A.C.S. Art. 517-27 8308-6.62(c) (part).) 518-1 Sec. 410.304. CONSIDERATION OF APPEALS PANEL DECISION. (a) 518-2 In a jury trial, the court, before submitting the case to the jury, 518-3 shall inform the jury in the court's instructions, charge, or 518-4 questions to the jury of the commission appeals panel decision on 518-5 each disputed issue described by Section 410.301(a) that is 518-6 submitted to the jury. 518-7 (b) In a trial to the court without a jury, the court in 518-8 rendering its judgment on an issue described by Section 410.301(a) 518-9 shall consider the decision of the commission appeals panel. 518-10 (V.A.C.S. Art. 8308-6.62(c) (part).) 518-11 Sec. 410.305. CONFLICT WITH RULES OF CIVIL PROCEDURE. (a) 518-12 To the extent that this subchapter conflicts with the Texas Rules 518-13 of Civil Procedure or any other rules adopted by the supreme court, 518-14 this subchapter controls. 518-15 (b) Notwithstanding Section 22.004, Government Code, or any 518-16 other law, the supreme court may not adopt rules in conflict with 518-17 or inconsistent with this subchapter. (V.A.C.S. Art. 8308-6.62(c) 518-18 (part).) 518-19 Sec. 410.306. EVIDENCE. (a) Evidence shall be adduced as 518-20 in other civil trials. 518-21 (b) The commission on payment of a reasonable fee shall make 518-22 available to the parties a certified copy of the commission's 518-23 record. All facts and evidence the record contains are admissible 518-24 to the extent allowed under the Texas Rules of Civil Evidence. 518-25 (c) Except as provided by Section 410.307, evidence of 518-26 extent of impairment shall be limited to that presented to the 518-27 commission. The court or jury, in its determination of the extent 519-1 of impairment, shall adopt one of the impairment ratings under 519-2 Subchapter G, Chapter 408. (V.A.C.S. Art. 8308-6.62(d).) 519-3 Sec. 410.307. SUBSTANTIAL CHANGE OF CONDITION. (a) 519-4 Evidence of the extent of impairment is not limited to that 519-5 presented to the commission if the court, after a hearing, finds 519-6 that there is a substantial change of condition. The court's 519-7 finding of a substantial change of condition may be based only on: 519-8 (1) medical evidence from the same doctor or doctors 519-9 whose testimony or opinion was presented to the commission; 519-10 (2) evidence that has come to the party's knowledge 519-11 since the contested case hearing; 519-12 (3) evidence that could not have been discovered 519-13 earlier with due diligence by the party; and 519-14 (4) evidence that would probably produce a different 519-15 result if it is admitted into evidence at the trial. 519-16 (b) If substantial change of condition is disputed, the 519-17 court shall require the designated doctor in the case to verify the 519-18 substantial change of condition, if any. The findings of the 519-19 designated doctor shall be presumed to be correct, and the court 519-20 shall base its finding on the medical evidence presented by the 519-21 designated doctor in regard to substantial change of condition 519-22 unless the preponderance of the other medical evidence is to the 519-23 contrary. 519-24 (c) The substantial change of condition must be confirmable 519-25 by recognized laboratory or diagnostic tests or signs confirmable 519-26 by physical examination. 519-27 (d) If the court finds a substantial change of condition 520-1 under this section, new medical evidence of the extent of 520-2 impairment must be from and is limited to the same doctor or 520-3 doctors who made impairment ratings before the commission under 520-4 Section 408.123. 520-5 (e) The court's finding of a substantial change of condition 520-6 may not be made known to the jury. 520-7 (f) The court or jury in its determination of the extent of 520-8 impairment shall adopt one of the impairment ratings made under 520-9 this section. (V.A.C.S. Arts. 8308-6.62(e), (f), (g), (h), (i), 520-10 (j).) 520-11 Sec. 410.308. CERTIFIED COPY OF NOTICE SECURING 520-12 COMPENSATION. (a) The commission or the Texas Department of 520-13 Insurance shall furnish any interested party in the claim with a 520-14 certified copy of the notice of the employer securing compensation 520-15 with the insurance carrier, filed with the commission. 520-16 (b) The certified copy of the notice is admissible in 520-17 evidence on trial of the claim pending and is prima facie proof of 520-18 the facts stated in the notice unless the facts are denied under 520-19 oath by the opposing party. (V.A.C.S. Art. 8308-6.62(k).) 520-20 CHAPTER 411. WORKERS' HEALTH AND SAFETY 520-21 SUBCHAPTER A. GENERAL PROVISIONS 520-22 Sec. 411.001. DEFINITIONS 520-23 Sec. 411.002. APPLICATION 520-24 Sec. 411.003. IMMUNITY FROM CERTAIN LIABILITY 520-25 Sec. 411.004. EXCLUSIVE REMEDY 520-26 (Sections 411.005-411.010 reserved for expansion) 520-27 SUBCHAPTER B. GENERAL POWERS AND DUTIES OF DIVISION 521-1 Sec. 411.011. COORDINATION AND ENFORCEMENT OF STATE LAWS 521-2 AND RULES 521-3 Sec. 411.012. COLLECTION AND ANALYSIS OF INFORMATION 521-4 Sec. 411.013. FEDERAL CONTRACTS AND PROGRAMS 521-5 Sec. 411.014. EDUCATIONAL PROGRAMS; COOPERATION WITH 521-6 OTHER ENTITIES 521-7 Sec. 411.015. EDUCATIONAL PUBLICATIONS 521-8 Sec. 411.016. PEER REVIEW SAFETY PROGRAM 521-9 Sec. 411.017. ADVISORY SERVICE TO INSURANCE CARRIERS 521-10 Sec. 411.018. FEDERAL OSHA COMPLIANCE 521-11 (Sections 411.019-411.030 reserved for expansion) 521-12 SUBCHAPTER C. JOB SAFETY INFORMATION SYSTEM 521-13 Sec. 411.031. JOB SAFETY INFORMATION SYSTEM; COOPERATION 521-14 WITH OTHER AGENCIES 521-15 Sec. 411.032. EMPLOYER INJURY AND OCCUPATIONAL 521-16 DISEASE REPORT 521-17 Sec. 411.033. JOB SAFETY DATA BASE 521-18 Sec. 411.034. CONFIDENTIALITY REQUIREMENT 521-19 Sec. 411.035. USE OF INJURY REPORT 521-20 (Sections 411.036-411.040 reserved for expansion) 521-21 SUBCHAPTER D. EXTRA-HAZARDOUS EMPLOYER PROGRAM 521-22 Sec. 411.041. IDENTIFICATION OF EXTRA-HAZARDOUS EMPLOYER 521-23 Sec. 411.042. NOTIFICATION TO EXTRA-HAZARDOUS EMPLOYER 521-24 AND INSURANCE CARRIER 521-25 Sec. 411.043. SAFETY CONSULTATION; REPORT; ACCIDENT 521-26 PREVENTION PLAN 521-27 Sec. 411.044. ACCIDENT INVESTIGATION 522-1 Sec. 411.045. COMPLIANCE CERTIFICATION 522-2 Sec. 411.046. ADMINISTRATIVE VIOLATION 522-3 Sec. 411.047. ADDITIONAL SAFETY PLAN 522-4 Sec. 411.048. COSTS CHARGED TO EMPLOYER 522-5 Sec. 411.049. HEARING 522-6 Sec. 411.050. ADMISSIBILITY OF IDENTIFICATION AS 522-7 EXTRA-HAZARDOUS EMPLOYER 522-8 (Sections 411.051-411.060 reserved for expansion) 522-9 SUBCHAPTER E. ACCIDENT PREVENTION SERVICES 522-10 Sec. 411.061. ACCIDENT PREVENTION SERVICES; PREREQUISITE 522-11 FOR LICENSE 522-12 Sec. 411.062. FIELD SAFETY REPRESENTATIVE; QUALIFICATIONS 522-13 Sec. 411.063. ACCIDENT PREVENTION PERSONNEL 522-14 Sec. 411.064. INSPECTIONS 522-15 Sec. 411.065. ANNUAL INFORMATION SUBMITTED BY INSURANCE 522-16 COMPANY 522-17 Sec. 411.066. NOTICE TO POLICYHOLDERS 522-18 Sec. 411.067. COMMISSION PERSONNEL 522-19 Sec. 411.068. ADMINISTRATIVE VIOLATION 522-20 (Sections 411.069-411.080 reserved for expansion) 522-21 SUBCHAPTER F. EMPLOYEE REPORTS OF SAFETY VIOLATIONS 522-22 Sec. 411.081. TELEPHONE HOTLINE 522-23 Sec. 411.082. EMPLOYER RETALIATION PROHIBITED 522-24 Sec. 411.083. JUDICIAL RELIEF FOR EMPLOYER RETALIATION 522-25 (Sections 411.084-411.090 reserved for expansion) 522-26 SUBCHAPTER G. POLICY FOR ELIMINATION OF DRUGS IN THE WORKPLACE 522-27 Sec. 411.091. ADOPTION AND DISTRIBUTION OF DRUG ABUSE POLICY 523-1 BY EMPLOYER 523-2 Sec. 411.092. ENFORCEMENT; RULES 523-3 CHAPTER 411. WORKERS' HEALTH AND SAFETY 523-4 SUBCHAPTER A. GENERAL PROVISIONS 523-5 Sec. 411.001. DEFINITIONS. In this chapter: 523-6 (1) "Division" means the division of workers' health 523-7 and safety of the commission. 523-8 (2) "Employer" means a person who makes a contract of 523-9 hire. (New; V.A.C.S. Art. 8308-7.01(a).) 523-10 Sec. 411.002. APPLICATION. (a) An employer who obtains 523-11 workers' compensation insurance coverage is subject to this 523-12 chapter. 523-13 (b) An employer is subject to this chapter if the employer: 523-14 (1) is not required to and does not obtain workers' 523-15 compensation insurance coverage; and 523-16 (2) employs five or more employees not exempt from 523-17 workers' compensation insurance coverage. 523-18 (c) Notwithstanding Subsection (b), until January 1, 1994, 523-19 an employer who is not required to and does not obtain workers' 523-20 compensation insurance coverage is subject to this chapter if the 523-21 employer employs: 523-22 (1) 150 or more employees not exempt from workers' 523-23 compensation insurance coverage beginning January 1, 1992; or 523-24 (2) 50 or more employees not exempt from workers' 523-25 compensation insurance coverage beginning January 1, 1993. 523-26 (V.A.C.S. Arts. 8308-7.01(b), (c), (d).) 523-27 Sec. 411.003. IMMUNITY FROM CERTAIN LIABILITY. (a) An 524-1 insurance company, the agent, servant, or employee of the insurance 524-2 company, or a safety consultant who performs a safety consultation 524-3 under Subchapter D or E has no liability for an accident based on 524-4 an allegation that the accident was caused or could have been 524-5 prevented by a program, inspection, or other activity or service 524-6 undertaken by the insurance company for the prevention of accidents 524-7 in connection with operations of the employer. 524-8 (b) The immunity provided by Subsection (a) does not affect 524-9 the liability of an insurance carrier for compensation or as 524-10 otherwise provided in this subtitle. (V.A.C.S. Art. 8308-7.06.) 524-11 Sec. 411.004. EXCLUSIVE REMEDY. Except as specifically 524-12 provided by Subchapter F, this chapter does not create an 524-13 independent cause of action at law or in equity. This chapter 524-14 provides the sole remedy for violation of this chapter. (V.A.C.S. 524-15 Art. 8308-7.09.) 524-16 (Sections 411.005-411.010 reserved for expansion) 524-17 SUBCHAPTER B. GENERAL POWERS AND DUTIES OF DIVISION 524-18 Sec. 411.011. COORDINATION AND ENFORCEMENT OF STATE LAWS AND 524-19 RULES. The division shall coordinate and enforce the 524-20 implementation of state laws and rules relating to workers' health 524-21 and safety issues. (V.A.C.S. Art. 8308-7.02(a).) 524-22 Sec. 411.012. COLLECTION AND ANALYSIS OF INFORMATION. (a) 524-23 The division shall collect and serve as a repository for 524-24 statistical information on workers' health and safety. The 524-25 division shall analyze and use that information to: 524-26 (1) identify and assign priorities to safety needs; 524-27 and 525-1 (2) better coordinate the safety services provided by 525-2 public or private organizations, including insurance carriers. 525-3 (b) The division shall coordinate or supervise the 525-4 collection by state or federal entities of information relating to 525-5 job safety, including information collected for the supplementary 525-6 data system and the annual survey of the Bureau of Labor Statistics 525-7 of the United States Department of Labor. (V.A.C.S. Arts. 525-8 8308-7.02(b) (part), (c).) 525-9 Sec. 411.013. FEDERAL CONTRACTS AND PROGRAMS. With the 525-10 approval of the commission, the division may: 525-11 (1) enter into contracts with the federal government 525-12 to perform occupational safety projects; and 525-13 (2) apply for federal funds through any federal 525-14 program relating to occupational safety. (V.A.C.S. Art. 525-15 8308-7.02(d).) 525-16 Sec. 411.014. EDUCATIONAL PROGRAMS; COOPERATION WITH OTHER 525-17 ENTITIES. (a) The division shall promote workers' health and 525-18 safety through educational and other innovative programs developed 525-19 by the division. 525-20 (b) The division shall cooperate with other entities in the 525-21 development and approval of safety courses, safety plans, and 525-22 safety programs. 525-23 (c) The division shall cooperate with business and industry 525-24 trade associations, labor organizations, and other entities to 525-25 develop means and methods of educating employees and employers 525-26 concerning workplace safety. (V.A.C.S. Arts. 8308-7.02(b) (part), 525-27 (f), (g).) 526-1 Sec. 411.015. EDUCATIONAL PUBLICATIONS. (a) The division 526-2 shall publish or procure and issue educational books, pamphlets, 526-3 brochures, films, videotapes, and other informational and 526-4 educational material. 526-5 (b) Specific educational material shall be directed to 526-6 high-risk industries and employments and must specifically address 526-7 means and methods of avoiding high frequency, but preventable, 526-8 workers' injuries. 526-9 (c) Other educational material shall be directed to business 526-10 and industry generally and must specifically address means and 526-11 methods of avoiding common workers' injuries. 526-12 (d) The division shall make specific decisions regarding the 526-13 issues and problems to be addressed by the educational materials 526-14 after assigning appropriate priorities based on frequency of 526-15 injuries, degree of hazard, severity of injuries, and similar 526-16 considerations. 526-17 (e) The educational materials provided under this section 526-18 must include specific references to: 526-19 (1) the requirements of state and federal laws and 526-20 regulations; 526-21 (2) recommendations and practices of business, 526-22 industry, and trade associations; and 526-23 (3) if needed, recommended work practices based on 526-24 recommendations made by the division for the prevention of injury. 526-25 (V.A.C.S. Art. 8308-7.02(e).) 526-26 Sec. 411.016. PEER REVIEW SAFETY PROGRAM. The division 526-27 shall certify safe employers to provide peer review safety 527-1 programs. (V.A.C.S. Art. 8308-7.02(h).) 527-2 Sec. 411.017. ADVISORY SERVICE TO INSURANCE CARRIERS. The 527-3 division shall advise insurance carrier loss control service 527-4 organizations of safety needs and priorities developed by the 527-5 division and of: 527-6 (1) hazard classifications, specific employers, 527-7 industries, occupations, or geographic regions to which loss 527-8 control services should be directed; or 527-9 (2) the identity and types of injuries or occupational 527-10 diseases and means and methods for prevention of those injuries or 527-11 diseases to which loss control services should be directed. 527-12 (V.A.C.S. Art. 8308-7.02(i).) 527-13 Sec. 411.018. FEDERAL OSHA COMPLIANCE. In accordance with 527-14 Section 7(c), Occupational Safety and Health Act of 1970 (29 U.S.C. 527-15 Section 656), the division shall: 527-16 (1) consult with employers regarding compliance with 527-17 federal occupational safety laws and rules; and 527-18 (2) collect information relating to occupational 527-19 safety as required by federal laws, rules, or agreements. 527-20 (V.A.C.S. Art. 8308-7.02(j).) 527-21 (Sections 411.019-411.030 reserved for expansion) 527-22 SUBCHAPTER C. JOB SAFETY INFORMATION SYSTEM 527-23 Sec. 411.031. JOB SAFETY INFORMATION SYSTEM; COOPERATION 527-24 WITH OTHER AGENCIES. (a) The division shall maintain a job safety 527-25 information system. 527-26 (b) The division shall obtain from any state agency, 527-27 including the Texas Department of Insurance, the Texas Department 528-1 of Health, and the Texas Employment Commission, data and 528-2 statistics, including data and statistics compiled for rate-making 528-3 purposes. 528-4 (c) The division shall consult with the Texas Department of 528-5 Insurance and the Texas Employment Commission in the design of data 528-6 information and retrieval systems to accomplish the mutual purposes 528-7 of those agencies and of the division. (V.A.C.S. Art. 528-8 8308-7.03(a).) 528-9 Sec. 411.032. EMPLOYER INJURY AND OCCUPATIONAL DISEASE 528-10 REPORT. (a) An employer shall file with the commission a report 528-11 of each: 528-12 (1) on-the-job injury that results in the employee's 528-13 absence from work for more than one day; and 528-14 (2) occupational disease of which the employer has 528-15 knowledge. 528-16 (b) The commission shall adopt rules and prescribe the form 528-17 and manner of reports filed under this section. (V.A.C.S. Art. 528-18 8308-7.03(b).) 528-19 Sec. 411.033. JOB SAFETY DATA BASE. The job safety 528-20 information system must include a comprehensive data base that 528-21 incorporates all pertinent information relating to each injury 528-22 reported under Section 411.032, including: 528-23 (1) the age, sex, wage level, occupation, and 528-24 insurance company payroll classification code of the injured 528-25 employee; 528-26 (2) the nature, source, and severity of the injury; 528-27 (3) the reported cause of the injury; 529-1 (4) the part of the body affected; 529-2 (5) any equipment involved in the injury; 529-3 (6) the number of prior workers' compensation claims 529-4 by the employee; 529-5 (7) the prior loss history of the employer; 529-6 (8) the standard industrial classification code of the 529-7 employer; 529-8 (9) the classification code of the employer; and 529-9 (10) any other information considered useful for 529-10 statistical analysis. (V.A.C.S. Art. 8308-7.03(c).) 529-11 Sec. 411.034. CONFIDENTIALITY REQUIREMENT. The identity of 529-12 an employee in a report filed under Section 411.032 is confidential 529-13 and may not be disclosed as part of the job safety information 529-14 system. (V.A.C.S. Art. 8308-7.03(d).) 529-15 Sec. 411.035. USE OF INJURY REPORT. A report made under 529-16 Section 411.032 may not be considered to be an admission by or 529-17 evidence against an employer or an insurance carrier in a 529-18 proceeding before the commission or a court in which the facts set 529-19 out in the report are contradicted by the employer or insurance 529-20 carrier. (V.A.C.S. Art. 8308-5.05(b) (part).) 529-21 (Sections 411.036-411.040 reserved for expansion) 529-22 SUBCHAPTER D. EXTRA-HAZARDOUS EMPLOYER PROGRAM 529-23 Sec. 411.041. IDENTIFICATION OF EXTRA-HAZARDOUS EMPLOYER. 529-24 (a) The division shall develop a program to identify 529-25 extra-hazardous employers. The program must include analysis of 529-26 injury frequency. 529-27 (b) An employer whose injury frequencies substantially 530-1 exceed those that may reasonably be expected in that employer's 530-2 business or industry is an extra-hazardous employer. (V.A.C.S. 530-3 Art. 8308-7.04(a) (part).) 530-4 Sec. 411.042. NOTIFICATION TO EXTRA-HAZARDOUS EMPLOYER AND 530-5 INSURANCE CARRIER. The division shall notify each employer 530-6 identified as an extra-hazardous employer and the insurance carrier 530-7 for that employer that the employer has been identified as an 530-8 extra-hazardous employer. (V.A.C.S. Art. 8308-7.04(a) (part).) 530-9 Sec. 411.043. SAFETY CONSULTATION; REPORT; ACCIDENT 530-10 PREVENTION PLAN. (a) Not later than the 30th day after the date 530-11 an employer receives notice under Section 411.042, the employer 530-12 shall obtain a safety consultation from: 530-13 (1) the division; 530-14 (2) the employer's insurance carrier; or 530-15 (3) another professional source approved by the 530-16 division for that purpose. 530-17 (b) The safety consultant shall file a written report with 530-18 the commission and the employer setting out any hazardous 530-19 conditions or practices identified by the safety consultation. 530-20 (c) The employer and the consultant shall formulate a 530-21 specific accident prevention plan that addresses the hazards 530-22 identified by the consultant. The division may monitor the 530-23 implementation of the accident prevention plan as it considers 530-24 necessary. 530-25 (d) An employer shall comply with the accident prevention 530-26 plan developed under this section. (V.A.C.S. Arts. 8308-7.04(b), 530-27 (c), (d) (part).) 531-1 Sec. 411.044. ACCIDENT INVESTIGATION. The division may 531-2 investigate an accident occurring at the worksite of an employer 531-3 for whom a plan has been formulated under Section 411.043. 531-4 (V.A.C.S. Art. 8308-7.04(d) (part).) 531-5 Sec. 411.045. COMPLIANCE CERTIFICATION. (a) Six months 531-6 after the formulation of an accident prevention plan under Section 531-7 411.043, the division shall conduct a follow-up inspection of the 531-8 employer's premises. The commission may require the participation 531-9 of the safety consultant who performed the initial consultation and 531-10 formulated the safety plan. 531-11 (b) If the division determines that the employer has 531-12 complied with the terms of the accident prevention plan or has 531-13 implemented other acceptable corrective measures, the division 531-14 shall so certify. (V.A.C.S. Art. 8308-7.04(e) (part).) 531-15 Sec. 411.046. ADMINISTRATIVE VIOLATION. (a) An employer 531-16 commits an administrative violation if the employer fails or 531-17 refuses to implement an accident prevention plan or other suitable 531-18 hazard abatement measures required by this subchapter. 531-19 (b) A violation under Subsection (a) is a Class B 531-20 administrative violation. Each day of noncompliance constitutes a 531-21 separate violation. (V.A.C.S. Art. 8308-7.04(e) (part).) 531-22 Sec. 411.047. ADDITIONAL SAFETY PLAN. (a) If at the time 531-23 of the follow-up inspection under Section 411.045 the employer is 531-24 exceeding the injury frequencies that may reasonably be expected in 531-25 the employer's business or industry, the division shall continue to 531-26 monitor the safety conditions at that worksite and may formulate 531-27 additional safety plans reasonably designed to abate hazards. 532-1 (b) The employer shall comply with the additional plans and 532-2 is subject to additional penalties for failure to implement those 532-3 plans. (V.A.C.S. Art. 8308-7.04(f).) 532-4 Sec. 411.048. COSTS CHARGED TO EMPLOYER. The commission 532-5 shall charge the employer for reimbursement of the reasonable cost 532-6 of services provided by the division, including a reasonable 532-7 allocation of the commission's administrative costs, in formulating 532-8 and monitoring the implementation of a plan under Section 411.043 532-9 or 411.047, investigating an accident under Section 411.044, or in 532-10 conducting a follow-up inspection under Section 411.045. (V.A.C.S. 532-11 Art. 8308-7.04(g).) 532-12 Sec. 411.049. HEARING. (a) An employer may request a 532-13 hearing to contest findings made by the commission under this 532-14 subchapter. 532-15 (b) The hearing shall be conducted in the manner provided 532-16 for a contested case under the Administrative Procedure and Texas 532-17 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and 532-18 is subject to judicial review as provided by that Act. (V.A.C.S. 532-19 Art. 8308-7.04(h).) 532-20 Sec. 411.050. ADMISSIBILITY OF IDENTIFICATION AS 532-21 EXTRA-HAZARDOUS EMPLOYER. The identification of an employer as an 532-22 extra-hazardous employer under this subchapter is not admissible in 532-23 any judicial proceeding unless: 532-24 (1) the commission has determined that the employer is 532-25 not in compliance with this subchapter; and 532-26 (2) that determination has not been reversed or 532-27 superseded at the time of the event giving rise to the judicial 533-1 proceeding. (V.A.C.S. Art. 8308-7.04(i).) 533-2 (Sections 411.051-411.060 reserved for expansion) 533-3 SUBCHAPTER E. ACCIDENT PREVENTION SERVICES 533-4 Sec. 411.061. ACCIDENT PREVENTION SERVICES; PREREQUISITE FOR 533-5 LICENSE. (a) As a prerequisite for a license to write workers' 533-6 compensation insurance in this state, an insurance company must 533-7 maintain or provide accident prevention facilities that are 533-8 adequate to provide accident prevention services required by the 533-9 nature of its policyholders' operations. 533-10 (b) To implement a program of accident prevention services, 533-11 a facility must include: 533-12 (1) surveys; 533-13 (2) recommendations; 533-14 (3) training programs; 533-15 (4) consultations; 533-16 (5) analyses of accident causes; 533-17 (6) industrial hygiene; and 533-18 (7) industrial health services. (V.A.C.S. Art. 533-19 8308-7.05(a) (part).) 533-20 Sec. 411.062. FIELD SAFETY REPRESENTATIVE; QUALIFICATIONS. 533-21 A field safety representative must be: 533-22 (1) a college graduate with a bachelor's degree in 533-23 science or engineering; 533-24 (2) a registered professional engineer; 533-25 (3) a certified safety professional; 533-26 (4) a certified industrial hygienist; 533-27 (5) an individual with 10 years' experience in 534-1 occupational safety and health; or 534-2 (6) an individual who has completed a certified 534-3 training program in accident prevention services approved by the 534-4 division. (V.A.C.S. Art. 8308-7.05(a) (part).) 534-5 Sec. 411.063. ACCIDENT PREVENTION PERSONNEL. (a) To 534-6 provide qualified accident prevention personnel and services, an 534-7 insurance company may: 534-8 (1) employ qualified personnel; 534-9 (2) retain qualified independent contractors; 534-10 (3) contract with the policyholder to provide the 534-11 personnel and services; or 534-12 (4) use a combination of the methods provided by this 534-13 subsection. 534-14 (b) A person who provides accident prevention services under 534-15 this section must have the qualifications required for a field 534-16 safety representative. (V.A.C.S. Art. 8308-7.05(a) (part).) 534-17 Sec. 411.064. INSPECTIONS. The division shall conduct an 534-18 inspection at least every two years to determine the adequacy of 534-19 the accident prevention services required by Section 411.061 for 534-20 each insurance company writing workers' compensation insurance in 534-21 this state. (V.A.C.S. Art. 8308-7.05(b).) 534-22 Sec. 411.065. ANNUAL INFORMATION SUBMITTED BY INSURANCE 534-23 COMPANY. (a) Each insurance company writing workers' compensation 534-24 insurance in this state shall submit to the division at least once 534-25 a year detailed information on the type of accident prevention 534-26 facilities offered to that insurance company's policyholders. 534-27 (b) The information must include: 535-1 (1) the amount of money spent by the insurance company 535-2 on accident prevention services; 535-3 (2) the number and qualifications of field safety 535-4 representatives employed by the insurance company; 535-5 (3) the number of site inspections performed; 535-6 (4) accident prevention services for which the 535-7 insurance company contracts; 535-8 (5) a breakdown of the premium size of the risks to 535-9 which services were provided; 535-10 (6) evidence of the effectiveness of and 535-11 accomplishments in accident prevention; and 535-12 (7) any additional information required by the 535-13 commission. (V.A.C.S. Art. 8308-7.05(d).) 535-14 Sec. 411.066. NOTICE TO POLICYHOLDERS. Notice that accident 535-15 prevention services are available to the policyholder from the 535-16 insurance company must appear in at least 10-point bold type on the 535-17 front of each workers' compensation insurance policy delivered or 535-18 issued for delivery in this state. (V.A.C.S. Art. 8308-7.05(c).) 535-19 Sec. 411.067. COMMISSION PERSONNEL. (a) The commission 535-20 shall employ the personnel necessary to enforce this subchapter, 535-21 including at least 10 safety inspectors to perform inspections at a 535-22 job site and at an insurance company to determine the adequacy of 535-23 the accident prevention services provided by the insurance company. 535-24 (b) A safety inspector must have the qualifications required 535-25 for a field safety representative by Section 411.062. (V.A.C.S. 535-26 Art. 8308-7.05(f).) 535-27 Sec. 411.068. ADMINISTRATIVE VIOLATION. (a) An insurance 536-1 company commits a violation if the insurance company does not: 536-2 (1) maintain or provide the accident prevention 536-3 services required by this subchapter; or 536-4 (2) use the services in a reasonable manner to prevent 536-5 injury to employees of its policyholders. 536-6 (b) A violation under Subsection (a) is a Class B 536-7 administrative violation. Each day of noncompliance constitutes a 536-8 separate violation. (V.A.C.S. Art. 8308-7.05(e).) 536-9 (Sections 411.069-411.080 reserved for expansion) 536-10 SUBCHAPTER F. EMPLOYEE REPORTS OF SAFETY VIOLATIONS 536-11 Sec. 411.081. TELEPHONE HOTLINE. (a) The division shall 536-12 maintain a 24-hour toll-free telephone service for reports of 536-13 violations of occupational health or safety law. 536-14 (b) Each employer shall notify its employees of this service 536-15 in a manner prescribed by the commission. (V.A.C.S. Art. 536-16 8308-7.08(a).) 536-17 Sec. 411.082. EMPLOYER RETALIATION PROHIBITED. An employer 536-18 may not suspend or terminate the employment of or otherwise 536-19 discriminate against an employee for using the telephone service to 536-20 report in good faith an alleged violation of an occupational health 536-21 or safety law. (V.A.C.S. Art. 8308-7.08(b).) 536-22 Sec. 411.083. JUDICIAL RELIEF FOR EMPLOYER RETALIATION. (a) 536-23 An employee whose employment is terminated or suspended in 536-24 violation of Section 411.082 is entitled to: 536-25 (1) reinstatement to the employee's former position; 536-26 (2) compensation for wages lost during the period of 536-27 suspension or termination; and 537-1 (3) reinstatement of any fringe benefits or seniority 537-2 rights lost because of the suspension or termination. 537-3 (b) An employee seeking relief under this section must file 537-4 suit not later than the 90th day after the alleged conduct of the 537-5 employer occurred or was discovered or discoverable by the employee 537-6 through reasonable diligence. 537-7 (c) An employee who prevails in a suit under this section is 537-8 entitled to recover court costs and reasonable attorney's fees. 537-9 (V.A.C.S. Art. 8308-7.08(c).) 537-10 (Sections 411.084-411.090 reserved for expansion) 537-11 SUBCHAPTER G. POLICY FOR ELIMINATION OF DRUGS IN THE WORKPLACE 537-12 Sec. 411.091. ADOPTION AND DISTRIBUTION OF DRUG ABUSE POLICY 537-13 BY EMPLOYER. (a) Each employer with 15 or more employees who has 537-14 workers' compensation insurance coverage shall adopt a policy 537-15 designed to eliminate drug abuse and its effects in the workplace. 537-16 (b) The employer shall distribute a written copy of the 537-17 policy to each employee. (V.A.C.S. Art. 8308-7.10(a).) 537-18 Sec. 411.092. ENFORCEMENT; RULES. The commission shall 537-19 enforce Section 411.091 and may adopt rules for that purpose. 537-20 (V.A.C.S. Art. 8308-7.10(b).) 537-21 CHAPTER 412. DIVISION OF RISK MANAGEMENT 537-22 Sec. 412.001. DEFINITIONS 537-23 Sec. 412.002. EXEMPTION OF CERTAIN STATE AGENCIES 537-24 Sec. 412.003. DUTIES OF DIVISION 537-25 Sec. 412.004. STATE RISK MANAGER 537-26 Sec. 412.005. ANNUAL REPORT BY STATE AGENCY 537-27 Sec. 412.006. RULEMAKING AUTHORITY 538-1 Sec. 412.007. COMMISSION'S REPORT TO LEGISLATURE 538-2 Sec. 412.008. INTERAGENCY CONTRACTS 538-3 CHAPTER 412. DIVISION OF RISK MANAGEMENT 538-4 Sec. 412.001. DEFINITIONS. In this chapter: 538-5 (1) "Director" means the director of the division. 538-6 (2) "Division" means the division of risk management 538-7 of the commission. 538-8 (3) "State agency" means a board, commission, 538-9 department, office, or other agency in the executive, judicial, or 538-10 legislative branch of state government that has five or more 538-11 employees, was created by the constitution or a statute of this 538-12 state, and has authority not limited to a specific geographical 538-13 portion of the state. The term includes an institution of higher 538-14 education as defined by Section 61.003, Education Code. (New; 538-15 V.A.C.S. Art. 8308-7.21(a).) 538-16 Sec. 412.002. EXEMPTION OF CERTAIN STATE AGENCIES. This 538-17 chapter does not apply to a state agency that had medical 538-18 malpractice insurance coverage, workers' compensation insurance 538-19 coverage, or other self-insurance coverage with associated risk 538-20 management programs before January 1, 1989. (V.A.C.S. 538-21 Art. 8308-7.21(b).) 538-22 Sec. 412.003. DUTIES OF DIVISION. (a) The division shall 538-23 administer guidelines adopted by the commission for a comprehensive 538-24 risk management program applicable to all state agencies to reduce 538-25 property and liability losses, including workers' compensation 538-26 losses. 538-27 (b) The division shall assist a state agency that has not 539-1 implemented an effective risk management program to implement a 539-2 comprehensive program that meets the division guidelines. 539-3 (V.A.C.S. Arts. 8308-7.21(f), (g).) 539-4 Sec. 412.004. STATE RISK MANAGER. (a) The director serves 539-5 as the state risk manager. 539-6 (b) The director shall supervise the development and 539-7 administration of systems to: 539-8 (1) identify the property and liability losses, 539-9 including workers' compensation losses, of each state agency; 539-10 (2) identify the administrative costs of risk 539-11 management incurred by each state agency; 539-12 (3) identify and evaluate the exposure of each state 539-13 agency to claims for property and liability losses, including 539-14 workers' compensation; and 539-15 (4) reduce the property and liability losses, 539-16 including workers' compensation, incurred by each state agency. 539-17 (V.A.C.S. Art. 8308-7.21(c).) 539-18 Sec. 412.005. ANNUAL REPORT BY STATE AGENCY. (a) Each 539-19 state agency shall report to the director for each fiscal year: 539-20 (1) the location, timing, frequency, severity, and 539-21 aggregate amounts of losses by category of risk, including open and 539-22 closed claims and final judgments; 539-23 (2) loss information obtained by the workers' 539-24 compensation division of the attorney general's office in the 539-25 course of its administration of the workers' compensation program 539-26 for state agencies; 539-27 (3) detailed information on existing and potential 540-1 exposures to loss, including property location and values, 540-2 descriptions of agency operations, and estimates of maximum 540-3 probable and maximum possible losses by category of risk; 540-4 (4) estimates by category of risk of losses incurred 540-5 but not reported; 540-6 (5) information the director determines necessary to 540-7 prepare a Texas Workers' Compensation Unit Statistical Report; and 540-8 (6) additional information that the director 540-9 determines to be necessary. 540-10 (b) The information shall be reported on or before 60 days 540-11 after the close of each fiscal year. (V.A.C.S. Art. 8308-7.21(d).) 540-12 Sec. 412.006. RULEMAKING AUTHORITY. The commission may 540-13 adopt rules to implement this chapter, including rules relating to 540-14 reporting requirements for a state agency. (V.A.C.S. Art. 540-15 8308-7.21(j).) 540-16 Sec. 412.007. COMMISSION'S REPORT TO LEGISLATURE. (a) 540-17 Based on the recommendations of the director, the commission shall 540-18 report to each legislature relating to: 540-19 (1) methods to reduce the exposure of state agencies 540-20 to the risks of property and liability losses, including workers' 540-21 compensation losses; 540-22 (2) the operation, financing, and management of those 540-23 risks; and 540-24 (3) the handling of claims brought against the state. 540-25 (b) The report must include: 540-26 (1) the frequency, severity, and aggregate amount of 540-27 open and closed claims in the preceding biennium by category of 541-1 risk, including final judgments; 541-2 (2) the identification of each state agency that has 541-3 not complied with the reporting requirements of this chapter; and 541-4 (3) recommendations for the coordination and 541-5 administration of a comprehensive risk management program to serve 541-6 all state agencies, including recommendations for any necessary 541-7 statutory changes. (V.A.C.S. Art. 8308-7.21(e).) 541-8 Sec. 412.008. INTERAGENCY CONTRACTS. (a) Each state agency 541-9 shall enter into an interagency contract with the commission under 541-10 Chapter 771, Government Code, to pay the costs incurred by the 541-11 commission in administering this chapter for the benefit of that 541-12 state agency. Costs payable under the contract include the cost 541-13 of: 541-14 (1) services of commission employees; 541-15 (2) materials; and 541-16 (3) equipment, including computer hardware and 541-17 software. 541-18 (b) The amount of the costs to be paid by a state agency 541-19 under the interagency contract is based on: 541-20 (1) the number of employees of the agency compared 541-21 with the total number of employees of all state agencies to which 541-22 this chapter applies; 541-23 (2) the dollar value of the agency's property and 541-24 asset and liability exposure compared to that of all state agencies 541-25 to which this chapter applies; and 541-26 (3) the number and aggregate cost of claims and losses 541-27 incurred by the agency compared to those incurred by all state 542-1 agencies to which this chapter applies. (V.A.C.S. Arts. 542-2 8308-7.21(h), (i).) 542-3 CHAPTER 413. MEDICAL REVIEW 542-4 SUBCHAPTER A. DIVISION OF MEDICAL REVIEW 542-5 Sec. 413.001. DEFINITION 542-6 Sec. 413.002. DIVISION OF MEDICAL REVIEW 542-7 Sec. 413.003. AUTHORITY TO CONTRACT 542-8 Sec. 413.004. COORDINATION WITH PROVIDERS 542-9 Sec. 413.005. MEDICAL ADVISORY COMMITTEE 542-10 Sec. 413.006. ADVISORY COMMITTEES 542-11 Sec. 413.007. INFORMATION MAINTAINED BY DIVISION 542-12 Sec. 413.008. INFORMATION FROM INSURANCE CARRIERS; 542-13 ADMINISTRATIVE VIOLATION 542-14 (Sections 413.009-413.010 reserved for expansion) 542-15 SUBCHAPTER B. MEDICAL SERVICES AND FEES 542-16 Sec. 413.011. GUIDELINES AND MEDICAL POLICIES 542-17 Sec. 413.012. MEDICAL POLICY AND GUIDELINE UPDATES REQUIRED 542-18 Sec. 413.013. PROGRAMS 542-19 Sec. 413.014. PREAUTHORIZATION 542-20 Sec. 413.015. PAYMENT BY INSURANCE CARRIERS; AUDIT 542-21 AND REVIEW 542-22 Sec. 413.016. PAYMENTS IN VIOLATION OF MEDICAL POLICIES AND 542-23 FEE GUIDELINES 542-24 Sec. 413.017. PRESUMPTION OF REASONABLENESS 542-25 Sec. 413.018. REVIEW OF MEDICAL CARE IF GUIDELINES 542-26 EXCEEDED 542-27 Sec. 413.019. INTEREST EARNED FOR DELAYED PAYMENT, REFUND, 543-1 OR OVERPAYMENT 543-2 Sec. 413.020. COMMISSION CHARGES 543-3 (Sections 413.021-413.030 reserved for expansion) 543-4 SUBCHAPTER C. DISPUTE RESOLUTION 543-5 Sec. 413.031. MEDICAL DISPUTE RESOLUTION 543-6 (Sections 413.032-413.040 reserved for expansion) 543-7 SUBCHAPTER D. HEALTH CARE PROVIDERS 543-8 Sec. 413.041. DISCLOSURE 543-9 Sec. 413.042. PRIVATE CLAIMS; ADMINISTRATIVE VIOLATION 543-10 Sec. 413.043. OVERCHARGING PROHIBITED; OFFENSE 543-11 (Sections 413.044-413.050 reserved for expansion) 543-12 SUBCHAPTER E. IMPLEMENTATION OF COMMISSION POWERS AND DUTIES 543-13 Sec. 413.051. CONTRACTS WITH REVIEW ORGANIZATIONS AND HEALTH 543-14 CARE PROVIDERS 543-15 Sec. 413.052. PRODUCTION OF DOCUMENTS 543-16 Sec. 413.053. STANDARDS OF REPORTING AND BILLING 543-17 Sec. 413.054. IMMUNITY FROM LIABILITY 543-18 CHAPTER 413. MEDICAL REVIEW 543-19 SUBCHAPTER A. DIVISION OF MEDICAL REVIEW 543-20 Sec. 413.001. DEFINITION. In this chapter, "division" means 543-21 the division of medical review of the commission. (New.) 543-22 Sec. 413.002. DIVISION OF MEDICAL REVIEW. (a) The 543-23 commission shall maintain a division of medical review to ensure 543-24 compliance with the rules and to implement this chapter under the 543-25 policies adopted by the commission. 543-26 (b) The division shall monitor health care providers, 543-27 insurance carriers, and workers' compensation claimants who receive 544-1 medical services to ensure the compliance of those persons with 544-2 rules adopted by the commission relating to health care, including 544-3 medical policies and fee guidelines. (V.A.C.S. Arts. 8308-8.01(a) 544-4 (part), (d).) 544-5 Sec. 413.003. AUTHORITY TO CONTRACT. The commission may 544-6 contract with a private or public entity to perform a duty or 544-7 function of the division. (V.A.C.S. Art. 8308-8.02(a).) 544-8 Sec. 413.004. COORDINATION WITH PROVIDERS. The division 544-9 shall coordinate its activities with health care providers as 544-10 necessary to perform its duties under this chapter. The 544-11 coordination may include: 544-12 (1) conducting educational seminars on commission 544-13 rules and procedures; or 544-14 (2) providing information to and requesting assistance 544-15 from professional peer review organizations. (V.A.C.S. Art. 544-16 8308-8.03.) 544-17 Sec. 413.005. MEDICAL ADVISORY COMMITTEE. (a) The medical 544-18 advisory committee advises the division in developing and 544-19 administering the medical policies, fee guidelines, and utilization 544-20 guidelines established under Section 413.011. The committee shall 544-21 advise the commission or professional organization in the review 544-22 and revision of medical policies and fee guidelines required under 544-23 Section 413.012. 544-24 (b) The medical advisory committee is composed of members 544-25 appointed by the commission as follows: 544-26 (1) a representative of a public health care facility; 544-27 (2) a representative of a private health care 545-1 facility; 545-2 (3) a doctor of medicine; 545-3 (4) a doctor of osteopathic medicine; 545-4 (5) a chiropractor; 545-5 (6) a dentist; 545-6 (7) a physical therapist; 545-7 (8) a pharmacist; 545-8 (9) a podiatrist; 545-9 (10) an occupational therapist; 545-10 (11) a medical equipment supplier; 545-11 (12) a registered nurse; 545-12 (13) a representative of employers; 545-13 (14) a representative of employees; and 545-14 (15) two representatives of the general public. 545-15 (c) Each member of the medical advisory committee must be 545-16 knowledgeable and qualified regarding work-related injuries and 545-17 diseases. 545-18 (d) The commission shall designate the presiding officer of 545-19 the medical advisory committee. 545-20 (e) The medical advisory committee shall meet at the call of 545-21 its presiding officer or at the call of a majority of the 545-22 committee. (V.A.C.S. Arts. 8308-8.23(a), (b), (c), (d); 8308-8.24 545-23 (part).) 545-24 Sec. 413.006. ADVISORY COMMITTEES. The commission may 545-25 appoint advisory committees in addition to the medical advisory 545-26 committee as it considers necessary. (V.A.C.S. Art. 8308-8.23(e).) 545-27 Sec. 413.007. INFORMATION MAINTAINED BY DIVISION. (a) The 546-1 division shall maintain a statewide data base of medical charges, 546-2 actual payments, and treatment protocols that may be used by: 546-3 (1) the commission in adopting the medical policies 546-4 and fee guidelines; and 546-5 (2) the division in administering the medical 546-6 policies, fee guidelines, or rules. 546-7 (b) The division shall ensure that the data base: 546-8 (1) contains information necessary to detect practices 546-9 and patterns in medical charges, actual payments, and treatment 546-10 protocols; and 546-11 (2) can be used in a meaningful way to allow the 546-12 commission to control medical costs as provided by this subtitle. 546-13 (c) The division shall ensure that the data base is 546-14 available for public access for a reasonable fee established by the 546-15 commission. The identities of injured workers and beneficiaries 546-16 may not be disclosed. 546-17 (d) The division shall take appropriate action to be aware 546-18 of and to maintain the most current information on developments in 546-19 the treatment and cure of injuries and diseases common in workers' 546-20 compensation cases. (V.A.C.S. Arts. 8308-8.01(b) (part), (c), 546-21 (h).) 546-22 Sec. 413.008. INFORMATION FROM INSURANCE CARRIERS; 546-23 ADMINISTRATIVE VIOLATION. (a) On request from the commission for 546-24 specific information, an insurance carrier shall provide to the 546-25 division any information in its possession, custody, or control 546-26 that reasonably relates to the commission's duties under this 546-27 subtitle and to health care: 547-1 (1) treatment; 547-2 (2) services; 547-3 (3) fees; and 547-4 (4) charges. 547-5 (b) The commission shall keep confidential information that 547-6 is confidential by law. 547-7 (c) An insurance carrier commits a violation if the 547-8 insurance carrier fails or refuses to comply with a request or 547-9 violates a rule adopted to implement this section. A violation 547-10 under this subsection is a Class C administrative violation. Each 547-11 day of noncompliance constitutes a separate violation. (V.A.C.S. 547-12 Art. 8308-8.04.) 547-13 (Sections 413.009-413.010 reserved for expansion) 547-14 SUBCHAPTER B. MEDICAL SERVICES AND FEES 547-15 Sec. 413.011. GUIDELINES AND MEDICAL POLICIES. (a) The 547-16 commission by rule shall establish medical policies and guidelines 547-17 relating to: 547-18 (1) fees charged or paid for medical services for 547-19 employees who suffer compensable injuries, including guidelines 547-20 relating to payment of fees for specific medical treatments or 547-21 services; 547-22 (2) use of medical services by employees who suffer 547-23 compensable injuries; and 547-24 (3) fees charged or paid for providing expert 547-25 testimony relating to an issue arising under this subtitle. 547-26 (b) Guidelines for medical services fees must be fair and 547-27 reasonable and designed to ensure the quality of medical care and 548-1 to achieve effective medical cost control. The guidelines may not 548-2 provide for payment of a fee in excess of the fee charged for 548-3 similar treatment of an injured individual of an equivalent 548-4 standard of living and paid by that individual or by someone acting 548-5 on that individual's behalf. The commission shall consider the 548-6 increased security of payment afforded by this subtitle in 548-7 establishing the fee guidelines. 548-8 (c) Medical policies adopted by the commission must be 548-9 consistent with Sections 413.013, 413.020, 413.052, and 413.053. 548-10 (d) The commission by rule shall establish medical policies 548-11 relating to necessary treatments for injuries. Medical policies 548-12 shall be designed to ensure the quality of medical care and to 548-13 achieve effective medical cost control. (V.A.C.S. Arts. 548-14 8308-8.01(a) (part), 8308-8.21(a), (b) (part).) 548-15 Sec. 413.012. MEDICAL POLICY AND GUIDELINE UPDATES REQUIRED. 548-16 The medical policies and fee guidelines shall be reviewed and 548-17 revised at least every two years to reflect fair and reasonable 548-18 fees and to reflect medical treatment or ranges of treatment that 548-19 are reasonable or necessary at the time the review and revision is 548-20 conducted. (V.A.C.S. Art. 8308-8.24 (part).) 548-21 Sec. 413.013. PROGRAMS. The commission by rule shall 548-22 establish: 548-23 (1) a program for prospective, concurrent, and 548-24 retrospective review and resolution of a dispute regarding health 548-25 care treatments and services; 548-26 (2) a program for the systematic monitoring of the 548-27 necessity of treatments administered and fees charged and paid for 549-1 medical treatments or services, including the authorization of 549-2 prospective, concurrent, or retrospective review under the medical 549-3 policies of the commission to ensure that the medical policies or 549-4 guidelines are not exceeded; 549-5 (3) a program to detect practices and patterns by 549-6 insurance carriers in unreasonably denying authorization of payment 549-7 for medical services requested or performed if authorization is 549-8 required by the medical policies of the commission; and 549-9 (4) a program to increase the intensity of review for 549-10 compliance with the medical policies or fee guidelines for any 549-11 health care provider that has established a practice or pattern in 549-12 charges and treatments inconsistent with the medical policies and 549-13 fee guidelines. (V.A.C.S. Art. 8308-8.21(b) (part).) 549-14 Sec. 413.014. PREAUTHORIZATION. (a) The commission by rule 549-15 shall specify which health care treatments and services require 549-16 express preauthorization by the insurance carrier. Treatments and 549-17 services for a medical emergency do not require express 549-18 preauthorization. 549-19 (b) The insurance carrier is not liable for those specified 549-20 treatments and services unless preauthorization is sought by the 549-21 claimant or health care provider and either obtained from the 549-22 insurance carrier or ordered by the commission. (V.A.C.S. Art. 549-23 8308-8.28(a).) 549-24 Sec. 413.015. PAYMENT BY INSURANCE CARRIERS; AUDIT AND 549-25 REVIEW. (a) Insurance carriers shall make appropriate payment of 549-26 charges for medical services provided under this subtitle. 549-27 (b) The commission shall provide by rule for the review and 550-1 audit of the payment by insurance carriers of charges for medical 550-2 services provided under this subtitle to ensure compliance of 550-3 health care providers and insurance carriers with the medical 550-4 policies and fee guidelines adopted by the commission. 550-5 (c) The rules must require the insurance carrier to pay the 550-6 expenses of the review and audit. (V.A.C.S. Art. 8308-8.01(b) 550-7 (part).) 550-8 Sec. 413.016. PAYMENTS IN VIOLATION OF MEDICAL POLICIES AND 550-9 FEE GUIDELINES. (a) The division shall order a refund of charges 550-10 paid to a health care provider in excess of those allowed by the 550-11 medical policies or fee guidelines. The division shall also refer 550-12 the health care provider alleged to have violated this subtitle to 550-13 the division of compliance and practices. 550-14 (b) If the division determines that an insurance carrier has 550-15 paid medical charges that are inconsistent with the medical 550-16 policies or fee guidelines adopted by the commission, the division 550-17 shall refer the insurance carrier alleged to have violated this 550-18 subtitle to the division of compliance and practices. If the 550-19 insurance carrier reduced a charge of a health care provider that 550-20 was within the guidelines, the insurance carrier shall be directed 550-21 to submit the difference to the provider unless the reduction is in 550-22 accordance with an agreement between the health care provider and 550-23 the insurance carrier. (V.A.C.S. Arts. 8308-8.01(e), (f).) 550-24 Sec. 413.017. PRESUMPTION OF REASONABLENESS. The following 550-25 medical services are presumed reasonable: 550-26 (1) medical services consistent with the medical 550-27 policies and fee guidelines adopted by the commission; and 551-1 (2) medical services that are provided subject to 551-2 prospective, concurrent, or retrospective review as required by the 551-3 medical policies of the commission and that are authorized by an 551-4 insurance carrier. (V.A.C.S. Art. 8308-8.25.) 551-5 Sec. 413.018. REVIEW OF MEDICAL CARE IF GUIDELINES EXCEEDED. 551-6 (a) The commission by rule shall provide for the periodic review 551-7 of medical care provided in claims in which lost-time guidelines or 551-8 other appropriate guidelines are exceeded. 551-9 (b) The division shall review the medical treatment provided 551-10 in a claim that exceeds the guidelines and may take appropriate 551-11 action to ensure that necessary and reasonable care is provided. 551-12 (V.A.C.S. Art. 8308-8.01(g).) 551-13 Sec. 413.019. INTEREST EARNED FOR DELAYED PAYMENT, REFUND, 551-14 OR OVERPAYMENT. (a) Interest on an unpaid fee or charge that is 551-15 consistent with the fee guidelines accrues at the rate provided by 551-16 Section 401.023 beginning on the 60th day after the date the health 551-17 care provider submits the bill to an insurance carrier until the 551-18 date the bill is paid. 551-19 (b) Interest on a refund from a health care provider accrues 551-20 at the rate provided by Section 401.023 beginning on the 60th day 551-21 after the date the provider receives notice of alleged overpayment 551-22 from the insurance carrier until the date the refund is paid. 551-23 (V.A.C.S. Art. 8308-8.27.) 551-24 Sec. 413.020. COMMISSION CHARGES. The commission by rule 551-25 shall establish procedures to enable the commission to charge: 551-26 (1) an insurance carrier a reasonable fee for access 551-27 to or evaluation of health care treatment, fees, or charges under 552-1 this subtitle; and 552-2 (2) a health care provider who exceeds a fee or 552-3 utilization guideline established under this subtitle or an 552-4 insurance carrier who unreasonably disputes charges that are 552-5 consistent with a fee or utilization guideline established under 552-6 this subtitle a reasonable fee for review of health care treatment, 552-7 fees, or charges under this subtitle. (V.A.C.S. Art. 8308-8.21(b) 552-8 (part).) 552-9 (Sections 413.021-413.030 reserved for expansion) 552-10 SUBCHAPTER C. DISPUTE RESOLUTION 552-11 Sec. 413.031. MEDICAL DISPUTE RESOLUTION. (a) A party, 552-12 including a health care provider, is entitled to a review of a 552-13 medical service provided or for which authorization of payment is 552-14 sought if a health care provider is: 552-15 (1) denied payment or paid a reduced amount for the 552-16 medical service rendered; 552-17 (2) denied authorization for the payment for the 552-18 service requested or performed if authorization is required by the 552-19 medical policies of the commission; or 552-20 (3) ordered by the division to refund a payment 552-21 received for a medical service rendered. 552-22 (b) A health care provider who submits a charge in excess of 552-23 the fee guidelines or treatment policies is entitled to a review of 552-24 the medical service to determine if reasonable medical 552-25 justification exists for the deviation. 552-26 (c) A review of a medical service under this section shall 552-27 be provided by a health care provider professional review 553-1 organization if requested by the health care practitioner or if 553-2 ordered by the commission. 553-3 (d) A party to a medical dispute that remains unresolved 553-4 after a review of the medical service under this section is 553-5 entitled to a hearing. The hearing shall be conducted in the 553-6 manner provided for a contested case under the Administrative 553-7 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas 553-8 Civil Statutes). (V.A.C.S. Art. 8308-8.26.) 553-9 (Sections 413.032-413.040 reserved for expansion) 553-10 SUBCHAPTER D. HEALTH CARE PROVIDERS 553-11 Sec. 413.041. DISCLOSURE. A health care provider who refers 553-12 a workers' compensation claimant to another health care provider in 553-13 which the referring provider has more than a five percent financial 553-14 interest shall file an annual disclosure statement with the 553-15 commission as provided by commission rules and shall disclose the 553-16 interest to the insurance carrier at the time of the referral. The 553-17 referring provider shall specify the degree of the financial 553-18 interest and shall provide other information as required by 553-19 commission rules. (V.A.C.S. Art. 8308-8.41.) 553-20 Sec. 413.042. PRIVATE CLAIMS; ADMINISTRATIVE VIOLATION. (a) 553-21 A health care provider may not pursue a private claim against a 553-22 workers' compensation claimant for all or part of the cost of a 553-23 health care service provided to the claimant by the provider 553-24 unless: 553-25 (1) the injury is finally adjudicated not compensable 553-26 under this subtitle; or 553-27 (2) the employee violates Section 408.022 relating to 554-1 the selection of a doctor and the doctor did not know of the 554-2 violation at the time the services were rendered. 554-3 (b) A health care provider commits a violation if the 554-4 provider violates Subsection (a). A violation under this 554-5 subsection is a Class B administrative violation. (V.A.C.S. 554-6 Art. 8308-8.42.) 554-7 Sec. 413.043. OVERCHARGING PROHIBITED; OFFENSE. (a) A 554-8 health care provider commits an offense if the person knowingly 554-9 charges an insurance carrier an amount greater than that normally 554-10 charged for similar treatment to a payor outside the workers' 554-11 compensation system, except for mandated or negotiated charges. 554-12 (b) An offense under this section is a Class A misdemeanor. 554-13 (V.A.C.S. Arts. 8308-10.08(a), (b).) 554-14 (Sections 413.044-413.050 reserved for expansion) 554-15 SUBCHAPTER E. IMPLEMENTATION OF COMMISSION POWERS AND DUTIES 554-16 Sec. 413.051. CONTRACTS WITH REVIEW ORGANIZATIONS AND HEALTH 554-17 CARE PROVIDERS. (a) The commission may contract with a health 554-18 care provider professional review organization or other entity to 554-19 develop, maintain, or review medical policies or fee guidelines or 554-20 to review compliance with the medical policies or fee guidelines. 554-21 (b) For purposes of review or resolution of a dispute as to 554-22 compliance with the medical policies or fee guidelines, the 554-23 commission may contract only with a health care provider 554-24 professional review organization that includes in the review 554-25 process health care practitioners who are licensed in the category 554-26 under review and are of the same field or specialty as the category 554-27 under review. 555-1 (c) The commission may contract with a health care provider 555-2 for medical consultant services, including: 555-3 (1) independent medical examinations; 555-4 (2) medical case reviews; or 555-5 (3) establishment of medical policies and fee 555-6 guidelines. (V.A.C.S. Arts. 8308-8.02(b), 8308-8.22.) 555-7 Sec. 413.052. PRODUCTION OF DOCUMENTS. The commission by 555-8 rule shall establish procedures to enable the commission to compel 555-9 the production of documents. (V.A.C.S. Art. 8308-8.21(b) (part).) 555-10 Sec. 413.053. STANDARDS OF REPORTING AND BILLING. The 555-11 commission by rule shall establish standards of reporting and 555-12 billing governing both form and content. (V.A.C.S. 555-13 Art. 8308-8.21(b) (part).) 555-14 Sec. 413.054. IMMUNITY FROM LIABILITY. (a) A person who 555-15 performs services for the commission as a designated doctor, an 555-16 independent medical examiner, a doctor performing a medical case 555-17 review, or a member of a peer review panel has the same immunity 555-18 from liability as a commission member under Section 402.010. 555-19 (b) Immunity from liability under this section does not 555-20 apply to a person providing medical treatment to an injured 555-21 employee. (V.A.C.S. Art. 8308-8.05.) 555-22 CHAPTER 414. DIVISION OF COMPLIANCE AND PRACTICES 555-23 Sec. 414.001. DEFINITION 555-24 Sec. 414.002. MONITORING DUTIES 555-25 Sec. 414.003. COMPILATION AND USE OF INFORMATION 555-26 Sec. 414.004. PERFORMANCE REVIEW OF INSURANCE CARRIERS 555-27 Sec. 414.005. INVESTIGATION UNIT 556-1 Sec. 414.006. REFERRAL TO OTHER AUTHORITIES 556-2 Sec. 414.007. REVIEW OF REFERRALS FROM DIVISION 556-3 OF MEDICAL REVIEW 556-4 CHAPTER 414. DIVISION OF COMPLIANCE AND PRACTICES 556-5 Sec. 414.001. DEFINITION. In this chapter, "division" means 556-6 the division of compliance and practices. (New.) 556-7 Sec. 414.002. MONITORING DUTIES. (a) The division shall 556-8 monitor for compliance with commission rules, this subtitle, and 556-9 other laws relating to workers' compensation the conduct of persons 556-10 subject to this subtitle, other than persons monitored by the 556-11 division of medical review. Persons to be monitored include: 556-12 (1) persons claiming benefits under this subtitle; 556-13 (2) employers; 556-14 (3) insurance carriers; and 556-15 (4) attorneys and other representatives of parties. 556-16 (b) The division shall monitor conduct described by Sections 556-17 415.001, 415.002, and 415.003 and refer persons engaging in that 556-18 conduct to the division of hearings. 556-19 (c) The division shall monitor payments made to health care 556-20 providers on behalf of workers' compensation claimants who receive 556-21 medical services to ensure that the payments are made on time as 556-22 required by Section 408.027. (V.A.C.S. Arts. 8308-9.01, 8308-9.03, 556-23 8308-10.07(a) (part).) 556-24 Sec. 414.003. COMPILATION AND USE OF INFORMATION. (a) The 556-25 division shall compile and maintain statistical and other 556-26 information as necessary to detect practices or patterns of conduct 556-27 by persons subject to monitoring under this chapter that: 557-1 (1) violate this subtitle or commission rules; or 557-2 (2) otherwise adversely affect the workers' 557-3 compensation system of this state. 557-4 (b) The commission shall use the information compiled under 557-5 this section to impose appropriate penalties and other sanctions 557-6 under Chapters 415 and 416. (V.A.C.S. Art. 8308-9.04.) 557-7 Sec. 414.004. PERFORMANCE REVIEW OF INSURANCE CARRIERS. (a) 557-8 The division shall review regularly the workers' compensation 557-9 records of insurance carriers as required to ensure compliance with 557-10 this subtitle. 557-11 (b) Each insurance carrier, the carrier's agents, and those 557-12 with whom the carrier has contracted to provide, review, or monitor 557-13 services under this subtitle shall: 557-14 (1) cooperate with the division; 557-15 (2) make available to the division any records or 557-16 other necessary information; and 557-17 (3) allow the division access to the information at 557-18 reasonable times at the person's offices. 557-19 (c) The insurance carrier, other than a governmental entity, 557-20 shall pay the reasonable expenses, including travel expenses, of an 557-21 auditor who audits the workers' compensation records at the office 557-22 of the insurance carrier. (V.A.C.S. Art. 8308-9.02.) 557-23 Sec. 414.005. INVESTIGATION UNIT. The division shall 557-24 maintain an investigation unit to conduct investigations relating 557-25 to alleged violations of this subtitle or commission rules, with 557-26 particular emphasis on violations of Chapters 415 and 416. 557-27 (V.A.C.S. Art. 8308-9.06(a).) 558-1 Sec. 414.006. REFERRAL TO OTHER AUTHORITIES. For further 558-2 investigation or the institution of appropriate proceedings, the 558-3 division may refer the persons involved in a case subject to an 558-4 investigation to: 558-5 (1) the division of hearings; or 558-6 (2) other appropriate authorities, including licensing 558-7 agencies, district and county attorneys, or the attorney general. 558-8 (V.A.C.S. Art. 8308-9.06(b).) 558-9 Sec. 414.007. REVIEW OF REFERRALS FROM DIVISION OF MEDICAL 558-10 REVIEW. The division shall review information and referrals 558-11 received from the division of medical review concerning alleged 558-12 violations of this subtitle and, under Sections 414.005 and 414.006 558-13 and Chapters 415 and 416, may conduct investigations, make 558-14 referrals to other authorities, and initiate administrative 558-15 violation proceedings. (V.A.C.S. Art. 8308-9.05.) 558-16 CHAPTER 415. ADMINISTRATIVE VIOLATIONS 558-17 SUBCHAPTER A. PROHIBITED ACTS 558-18 Sec. 415.001. ADMINISTRATIVE VIOLATION BY REPRESENTATIVE 558-19 OF EMPLOYEE OR LEGAL BENEFICIARY 558-20 Sec. 415.002. ADMINISTRATIVE VIOLATION BY AN INSURANCE 558-21 CARRIER 558-22 Sec. 415.003. ADMINISTRATIVE VIOLATION BY HEALTH CARE 558-23 PROVIDER 558-24 Sec. 415.004. PENALTY SPECIFIED IN OTHER LAW 558-25 Sec. 415.005. OVERCHARGING BY HEALTH CARE PROVIDERS 558-26 PROHIBITED; ADMINISTRATIVE VIOLATION 558-27 Sec. 415.006. EMPLOYER CHARGEBACKS PROHIBITED; ADMINISTRATIVE 559-1 VIOLATION 559-2 Sec. 415.007. LOANS BY ATTORNEYS PROHIBITED 559-3 Sec. 415.008. FRAUDULENTLY OBTAINING OR DENYING BENEFITS; 559-4 ADMINISTRATIVE VIOLATION 559-5 Sec. 415.009. FRIVOLOUS ACTIONS; ADMINISTRATIVE VIOLATION 559-6 Sec. 415.010. BREACH OF AGREEMENT; ADMINISTRATIVE 559-7 VIOLATION 559-8 (Sections 415.011-415.020 reserved for expansion) 559-9 SUBCHAPTER B. PENALTIES 559-10 Sec. 415.021. ASSESSMENT OF ADMINISTRATIVE PENALTIES 559-11 Sec. 415.022. CLASSIFICATION OF ADMINISTRATIVE VIOLATIONS; 559-12 PENALTIES 559-13 Sec. 415.023. COMMISSION OF WRONGFUL ACT AS MATTER OF PRACTICE; 559-14 ADMINISTRATIVE VIOLATION 559-15 (Sections 415.024-415.030 reserved for expansion) 559-16 SUBCHAPTER C. PROCEDURES 559-17 Sec. 415.031. INITIATION OF ADMINISTRATIVE VIOLATION 559-18 PROCEEDINGS 559-19 Sec. 415.032. NOTICE OF POSSIBLE ADMINISTRATIVE VIOLATION; 559-20 RESPONSE 559-21 Sec. 415.033. FAILURE TO RESPOND 559-22 Sec. 415.034. HEARING PROCEDURES 559-23 Sec. 415.035. JUDICIAL REVIEW 559-24 CHAPTER 415. ADMINISTRATIVE VIOLATIONS 559-25 SUBCHAPTER A. PROHIBITED ACTS 559-26 Sec. 415.001. ADMINISTRATIVE VIOLATION BY REPRESENTATIVE OF 559-27 EMPLOYEE OR LEGAL BENEFICIARY. A representative of an employee or 560-1 legal beneficiary commits an administrative violation if the person 560-2 wilfully or intentionally: 560-3 (1) fails without good cause to attend a dispute 560-4 resolution proceeding within the commission; 560-5 (2) attends a dispute resolution proceeding within the 560-6 commission without complete authority or fails to exercise 560-7 authority to effectuate an agreement or settlement; 560-8 (3) commits an act of barratry under Section 38.12, 560-9 Penal Code; 560-10 (4) withholds from the employee's or legal 560-11 beneficiary's weekly benefits or from advances amounts not 560-12 authorized to be withheld by the commission; 560-13 (5) enters into a settlement or agreement without the 560-14 knowledge, consent, and signature of the employee or legal 560-15 beneficiary; 560-16 (6) takes a fee or withholds expenses in excess of the 560-17 amounts authorized by the commission; 560-18 (7) refuses or fails to make prompt delivery to the 560-19 employee or legal beneficiary of funds belonging to the employee or 560-20 legal beneficiary as a result of a settlement, agreement, order, or 560-21 award; 560-22 (8) violates the Texas Disciplinary Rules of 560-23 Professional Conduct of the State Bar of Texas; 560-24 (9) misrepresents the provisions of this subtitle to 560-25 an employee, an employer, a health care provider, or a legal 560-26 beneficiary; 560-27 (10) violates a commission rule; or 561-1 (11) fails to comply with this subtitle. (V.A.C.S. 561-2 Art. 8308-10.07(a) (part).) 561-3 Sec. 415.002. ADMINISTRATIVE VIOLATION BY AN INSURANCE 561-4 CARRIER. (a) An insurance carrier or its representative commits 561-5 an administrative violation if that person wilfully or 561-6 intentionally: 561-7 (1) misrepresents a provision of this subtitle to an 561-8 employee, an employer, a health care provider, or a legal 561-9 beneficiary; 561-10 (2) fails to submit to the commission a settlement or 561-11 agreement of the parties; 561-12 (3) fails to timely notify the commission of the 561-13 termination or reduction of benefits and the reason for that 561-14 action; 561-15 (4) terminates or reduces benefits without 561-16 substantiating evidence that the action is reasonable and 561-17 authorized by law; 561-18 (5) instructs an employer not to file a document 561-19 required to be filed with the commission; 561-20 (6) instructs or encourages an employer to violate a 561-21 claimant's right to medical benefits under this subtitle; 561-22 (7) fails to tender promptly full death benefits if a 561-23 legitimate dispute does not exist as to the liability of the 561-24 insurance carrier; 561-25 (8) allows an employer, other than a self-insured 561-26 employer, to dictate the methods by which and the terms on which a 561-27 claim is handled and settled; 562-1 (9) fails to confirm medical benefits coverage to a 562-2 person or facility providing medical treatment to a claimant if a 562-3 legitimate dispute does not exist as to the liability of the 562-4 insurance carrier; 562-5 (10) fails, without good cause, to attend a dispute 562-6 resolution proceeding within the commission; 562-7 (11) attends a dispute resolution proceeding within 562-8 the commission without complete authority or fails to exercise 562-9 authority to effectuate agreement or settlement; 562-10 (12) adjusts a workers' compensation claim in a manner 562-11 contrary to license requirements for an insurance adjuster, 562-12 including the requirements of Chapter 407, Acts of the 63rd 562-13 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas 562-14 Insurance Code), or the rules of the State Board of Insurance; 562-15 (13) fails to process claims promptly in a reasonable 562-16 and prudent manner; 562-17 (14) fails to initiate or reinstate benefits when due 562-18 if a legitimate dispute does not exist as to the liability of the 562-19 insurance carrier; 562-20 (15) misrepresents the reason for not paying benefits 562-21 or terminating or reducing the payment of benefits; 562-22 (16) dates documents to misrepresent the actual date 562-23 of the initiation of benefits; 562-24 (17) makes a notation on a draft or other instrument 562-25 indicating that the draft or instrument represents a final 562-26 settlement of a claim if the claim is still open and pending before 562-27 the commission; 563-1 (18) fails or refuses to pay benefits from week to 563-2 week as and when due directly to the person entitled to the 563-3 benefits; 563-4 (19) fails to pay an order awarding benefits; 563-5 (20) controverts a claim if the evidence clearly 563-6 indicates liability; 563-7 (21) unreasonably denies preauthorization required 563-8 under Section 413.014 or unreasonably disputes the reasonableness 563-9 and necessity of health care; 563-10 (22) violates a commission rule; or 563-11 (23) fails to comply with a provision of this 563-12 subtitle. 563-13 (b) An insurance carrier or its representative does not 563-14 commit an administrative violation under Subsection (a)(8) by 563-15 allowing an employer to: 563-16 (1) freely discuss a claim; 563-17 (2) assist in the investigation and evaluation of a 563-18 claim; or 563-19 (3) attend a proceeding of the commission and 563-20 participate at the proceeding in accordance with this subtitle. 563-21 (V.A.C.S. Art. 8308-10.07(b).) 563-22 Sec. 415.003. ADMINISTRATIVE VIOLATION BY HEALTH CARE 563-23 PROVIDER. A health care provider commits an administrative 563-24 violation if the person wilfully or intentionally: 563-25 (1) submits a charge for health care that was not 563-26 furnished; 563-27 (2) administers improper, unreasonable, or medically 564-1 unnecessary treatment or services; 564-2 (3) fails or refuses to timely file required reports 564-3 or records; 564-4 (4) makes an unnecessary referral; 564-5 (5) fails to disclose an interest as required by 564-6 Section 413.041; 564-7 (6) violates the commission's fee and treatment 564-8 guidelines; 564-9 (7) violates a commission rule; or 564-10 (8) fails to comply with a provision of this subtitle. 564-11 (V.A.C.S. Art. 8308-10.07(c).) 564-12 Sec. 415.004. PENALTY SPECIFIED IN OTHER LAW. If an act 564-13 that is an administrative violation under Section 415.001, 415.002, 564-14 or 415.003 is expressly made an administrative violation of a 564-15 particular class or subject to a specified penalty in another 564-16 section of this subtitle, the administrative penalty assessed under 564-17 that section, and not under Section 415.001, 415.002, or 415.003, 564-18 prevails. (New.) 564-19 Sec. 415.005. OVERCHARGING BY HEALTH CARE PROVIDERS 564-20 PROHIBITED; ADMINISTRATIVE VIOLATION. (a) A health care provider 564-21 commits a violation if the person charges an insurance carrier an 564-22 amount greater than that normally charged for similar treatment to 564-23 a payor outside the workers' compensation system, except for 564-24 mandated or negotiated charges. 564-25 (b) A violation under this section is a Class B 564-26 administrative violation. A health care provider may be liable for 564-27 an administrative penalty regardless of whether a criminal action 565-1 is initiated under Section 413.043. (V.A.C.S. Art. 8308-10.08(c).) 565-2 Sec. 415.006. EMPLOYER CHARGEBACKS PROHIBITED; 565-3 ADMINISTRATIVE VIOLATION. (a) An employer may not collect from an 565-4 employee, directly or indirectly, a premium or other fee paid by 565-5 the employer to obtain workers' compensation insurance coverage, 565-6 except as provided by Sections 406.123 and 406.144. 565-7 (b) An employee or legal beneficiary of an employee has a 565-8 right of action to recover damages against an employer who violates 565-9 Subsection (a). 565-10 (c) A person commits a violation if the person violates 565-11 Subsection (a). A violation under this subsection is a Class C 565-12 administrative violation. (V.A.C.S. Art. 8308-10.02.) 565-13 Sec. 415.007. Loans by Attorneys Prohibited. (a) An 565-14 attorney who represents a claimant before the commission may not 565-15 lend money to the claimant during the pendency of the workers' 565-16 compensation claim. 565-17 (b) The attorney may assist the claimant in obtaining 565-18 financial assistance from another source if the attorney is not 565-19 personally liable for the credit extended to the claimant. 565-20 (V.A.C.S. Art. 8308-10.03.) 565-21 Sec. 415.008. Fraudulently Obtaining or Denying Benefits; 565-22 Administrative Violation. (a) A person commits a violation if the 565-23 person, to obtain or deny a payment of a workers' compensation 565-24 benefit or the provision of a benefit for the person or another, 565-25 knowingly or intentionally: 565-26 (1) makes a false or misleading statement; 565-27 (2) misrepresents or conceals a material fact; 566-1 (3) fabricates, alters, conceals, or destroys a 566-2 document; or 566-3 (4) conspires to commit an act described by 566-4 Subdivision (1), (2), or (3). 566-5 (b) A violation under this section is a Class B 566-6 administrative violation. 566-7 (c) A person who has obtained an excess payment in violation 566-8 of this section is liable for full repayment plus interest computed 566-9 at the rate prescribed by Section 401.023. If the person is an 566-10 employee or person claiming death benefits, the repayment may be 566-11 redeemed from future income or death benefits to which the person 566-12 is otherwise entitled. 566-13 (d) An employer who has committed an act described by 566-14 Subsection (a) that results in denial of payments is liable for the 566-15 past benefit payments that would otherwise have been payable by the 566-16 insurance carrier during the period of denial, plus interest 566-17 computed at the rate prescribed by Section 401.023. The insurance 566-18 carrier is not liable for benefit payments during the period of 566-19 denial. 566-20 (e) If an administrative violation proceeding is pending 566-21 under this section against an employee or person claiming death 566-22 benefits, the commission may not take final action on the person's 566-23 benefits. (V.A.C.S. Art. 8308-10.04.) 566-24 Sec. 415.009. Frivolous Actions; Administrative Violation. 566-25 (a) A person commits a violation if the person knowingly brings, 566-26 prosecutes, or defends an action for benefits under this subtitle 566-27 or requests initiation of an administrative violation proceeding 567-1 that does not have a basis in fact or is not warranted by existing 567-2 law or a good faith argument for the extension, modification, or 567-3 reversal of existing law. 567-4 (b) A violation under Subsection (a) is a Class B 567-5 administrative violation. (V.A.C.S. Art. 8308-10.05.) 567-6 Sec. 415.010. BREACH OF AGREEMENT; ADMINISTRATIVE VIOLATION. 567-7 (a) A party to an agreement approved by the commission commits a 567-8 violation if the person knowingly breaches a provision of the 567-9 agreement. 567-10 (b) A violation under Subsection (a) is a Class C 567-11 administrative violation. (V.A.C.S. Art. 8308-10.06.) 567-12 (Sections 415.011-415.020 reserved for expansion) 567-13 SUBCHAPTER B. PENALTIES 567-14 Sec. 415.021. ASSESSMENT OF ADMINISTRATIVE PENALTIES. (a) 567-15 The commission may assess an administrative penalty against a 567-16 person who commits an administrative violation. 567-17 (b) The commission may assess an administrative penalty not 567-18 to exceed $10,000 and may enter a cease and desist order against a 567-19 person who: 567-20 (1) commits repeated administrative violations; 567-21 (2) allows, as a business practice, the commission of 567-22 repeated administrative violations; or 567-23 (3) violates an order or decision of the commission. 567-24 (c) In assessing an administrative penalty, the commission 567-25 shall consider: 567-26 (1) the seriousness of the violation, including the 567-27 nature, circumstances, consequences, extent, and gravity of the 568-1 prohibited act; 568-2 (2) the history and extent of previous administrative 568-3 violations; 568-4 (3) the demonstrated good faith of the violator, 568-5 including actions taken to rectify the consequences of the 568-6 prohibited act; 568-7 (4) the economic benefit resulting from the prohibited 568-8 act; 568-9 (5) the penalty necessary to deter future violations; 568-10 and 568-11 (6) other matters that justice may require. 568-12 (d) A penalty may be assessed only after the person charged 568-13 with an administrative violation has been given an opportunity for 568-14 a hearing under Subchapter C. (V.A.C.S. Art. 8308-10.21.) 568-15 Sec. 415.022. CLASSIFICATION OF ADMINISTRATIVE VIOLATIONS; 568-16 PENALTIES. Administrative violations are classified as follows: 568-17 (1) a Class A administrative violation, punishable by 568-18 an administrative penalty not to exceed $10,000; 568-19 (2) a Class B administrative violation, punishable by 568-20 an administrative penalty not to exceed $5,000; 568-21 (3) a Class C administrative violation, punishable by 568-22 an administrative penalty not to exceed $1,000; and 568-23 (4) a Class D administrative violation, punishable by 568-24 an administrative penalty not to exceed $500. (V.A.C.S. Art. 568-25 8308-10.22.) 568-26 Sec. 415.023. COMMISSION OF WRONGFUL ACT AS MATTER OF 568-27 PRACTICE; ADMINISTRATIVE VIOLATION. (a) A person who commits an 569-1 administrative violation under Section 415.001, 415.002, or 415.003 569-2 as a matter of practice is subject to an applicable rule adopted 569-3 under Subsection (b) in addition to the penalty assessed for the 569-4 violation. 569-5 (b) The commission may adopt rules providing for: 569-6 (1) a reduction or denial of fees; 569-7 (2) public or private reprimand by the commission; 569-8 (3) suspension from practice before the commission; or 569-9 (4) restriction, suspension, or revocation of the 569-10 right to receive reimbursement under this subtitle. (V.A.C.S. Art. 569-11 8308-10.07(d).) 569-12 (Sections 415.024-415.030 reserved for expansion) 569-13 SUBCHAPTER C. PROCEDURES 569-14 Sec. 415.031. INITIATION OF ADMINISTRATIVE VIOLATION 569-15 PROCEEDINGS. Any person may request the initiation of 569-16 administrative violation proceedings by filing a written allegation 569-17 with the director of the division of compliance and practices. 569-18 (V.A.C.S. Art. 8308-10.31.) 569-19 Sec. 415.032. NOTICE OF POSSIBLE ADMINISTRATIVE VIOLATION; 569-20 RESPONSE. (a) If investigation by the division of compliance and 569-21 practices indicates that an administrative violation has occurred, 569-22 the division shall notify the person alleged to have committed the 569-23 violation in writing of: 569-24 (1) the charge; 569-25 (2) the proposed penalty; 569-26 (3) the right to consent to the charge and the 569-27 penalty; and 570-1 (4) the right to request a hearing. 570-2 (b) Not later than the 20th day after the date on which 570-3 notice is received, the charged party shall: 570-4 (1) remit the amount of the penalty to the commission; 570-5 or 570-6 (2) submit to the commission a written request for a 570-7 hearing. (V.A.C.S. Art. 8308-10.32.) 570-8 Sec. 415.033. FAILURE TO RESPOND. If, without good cause, a 570-9 charged party fails to respond as required under Section 415.032, 570-10 the penalty is due and the commission shall initiate enforcement 570-11 proceedings. (V.A.C.S. Art. 8308-10.34.) 570-12 Sec. 415.034. HEARING PROCEDURES. (a) On request of the 570-13 charged party or at the discretion of the director of the division 570-14 of hearings, the division of hearings shall set a hearing. The 570-15 hearing shall be conducted in the manner provided for a contested 570-16 case under the Administrative Procedure and Texas Register Act 570-17 (Article 6252-13a, Vernon's Texas Civil Statutes). 570-18 (b) At the close of the hearing, the hearing officer 570-19 conducting the hearing shall make findings of fact and conclusions 570-20 of law and shall issue a written decision. If the hearing officer 570-21 determines that an administrative violation has occurred, the 570-22 hearing officer shall include in the decision the amount of the 570-23 administrative penalty assessed and shall order payment of the 570-24 penalty. 570-25 (c) The findings of fact, the decision, and the order shall 570-26 be sent immediately to the charged party. (V.A.C.S. Art. 570-27 8308-10.33.) 571-1 Sec. 415.035. JUDICIAL REVIEW. (a) A decision under 571-2 Section 415.034 is subject to judicial review in the manner 571-3 provided for judicial review under the Administrative Procedure and 571-4 Texas Register Act (Article 6252-13a, Vernon's Texas Civil 571-5 Statutes). 571-6 (b) If an administrative penalty is assessed, the person 571-7 charged shall: 571-8 (1) forward the amount of the penalty to the executive 571-9 director for deposit in an escrow account; or 571-10 (2) post with the executive director a bond for the 571-11 amount of the penalty, effective until all judicial review of the 571-12 determination is final. 571-13 (c) Failure to comply with Subsection (b) results in a 571-14 waiver of all legal rights to contest the violation or the amount 571-15 of the penalty. 571-16 (d) If the court determines that the penalty should not have 571-17 been assessed or reduces the amount of the penalty, the executive 571-18 director shall: 571-19 (1) remit the appropriate amount, plus accrued 571-20 interest, if the administrative penalty was paid; or 571-21 (2) release the bond. (V.A.C.S. Art. 8308-10.35.) 571-22 CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH 571-23 OF DUTY 571-24 Sec. 416.001. CERTAIN CAUSES OF ACTION PRECLUDED 571-25 Sec. 416.002. EXEMPLARY DAMAGES 571-26 CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH 571-27 OF DUTY 572-1 Sec. 416.001. Certain Causes of Action Precluded. An action 572-2 taken by an insurance carrier under an order of the commission or 572-3 recommendations of a benefit review officer under Section 410.031, 572-4 410.032, or 410.033 may not be the basis of a cause of action 572-5 against the insurance carrier for a breach of the duty of good 572-6 faith and fair dealing. (V.A.C.S. Art. 8308-10.41.) 572-7 Sec. 416.002. EXEMPLARY DAMAGES. (a) In an action against 572-8 an insurance carrier for a breach of the duty of good faith and 572-9 fair dealing, recovery of exemplary damages is limited to the 572-10 greater of: 572-11 (1) four times the amount of actual damages; or 572-12 (2) $250,000. 572-13 (b) An action against a governmental entity or unit or an 572-14 employee of a governmental entity or unit for a breach of the duty 572-15 of good faith and fair dealing is governed by Chapters 101 and 104, 572-16 Civil Practice and Remedies Code. (V.A.C.S. Art. 8308-10.42.) 572-17 CHAPTER 417. THIRD-PARTY LIABILITY 572-18 Sec. 417.001. THIRD-PARTY LIABILITY 572-19 Sec. 417.002. RECOVERY IN THIRD-PARTY ACTION 572-20 Sec. 417.003. ATTORNEY'S FEE FOR REPRESENTATION OF INSURANCE 572-21 CARRIER'S INTEREST 572-22 Sec. 417.004. EMPLOYER LIABILITY TO THIRD PARTY 572-23 CHAPTER 417. THIRD-PARTY LIABILITY 572-24 Sec. 417.001. THIRD-PARTY LIABILITY. (a) An employee or 572-25 legal beneficiary may seek damages from a third party who is or 572-26 becomes liable to pay damages for an injury or death that is 572-27 compensable under this subtitle and may also pursue a claim for 573-1 workers' compensation benefits under this subtitle. 573-2 (b) If a benefit is claimed by an injured employee or a 573-3 legal beneficiary of the employee, the insurance carrier is 573-4 subrogated to the rights of the injured employee and may enforce 573-5 the liability of the third party in the name of the injured 573-6 employee or the legal beneficiary. If the recovery is for an 573-7 amount greater than that paid or assumed by the insurance carrier 573-8 to the employee or the legal beneficiary, the insurance carrier 573-9 shall: 573-10 (1) reimburse itself and pay the costs from the amount 573-11 recovered; and 573-12 (2) pay the remainder of the amount recovered to the 573-13 injured employee or the legal beneficiary. 573-14 (c) If a claimant receives benefits from the subsequent 573-15 injury fund, the commission is: 573-16 (1) considered to be the insurance carrier under this 573-17 section for purposes of those benefits; 573-18 (2) subrogated to the rights of the claimant; and 573-19 (3) entitled to reimbursement in the same manner as 573-20 the insurance carrier. 573-21 (d) The commission shall remit money recovered under this 573-22 section to the state treasurer for deposit to the credit of the 573-23 subsequent injury fund. (V.A.C.S. Arts. 8308-4.05(a), (b), (c).) 573-24 Sec. 417.002. RECOVERY IN THIRD-PARTY ACTION. (a) The net 573-25 amount recovered by a claimant in a third-party action shall be 573-26 used to reimburse the insurance carrier for benefits, including 573-27 medical benefits, that have been paid for the compensable injury. 574-1 (b) Any amount recovered that exceeds the amount of the 574-2 reimbursement required under Subsection (a) shall be treated as an 574-3 advance against future benefits, including medical benefits, that 574-4 the claimant is entitled to receive under this subtitle. 574-5 (c) If the advance under Subsection (b) is adequate to cover 574-6 all future benefits, the insurance carrier is not required to 574-7 resume the payment of benefits. If the advance is insufficient, 574-8 the insurance carrier shall resume the payment of benefits when the 574-9 advance is exhausted. (V.A.C.S. Art. 8308-4.05(f).) 574-10 Sec. 417.003. ATTORNEY'S FEE FOR REPRESENTATION OF INSURANCE 574-11 CARRIER'S INTEREST. (a) An insurance carrier whose interest is 574-12 not actively represented by an attorney in a third-party action 574-13 shall pay a fee to an attorney representing the claimant in the 574-14 amount agreed on between the attorney and the insurance carrier. 574-15 In the absence of an agreement, the court shall award to the 574-16 attorney payable out of the insurance carrier's recovery: 574-17 (1) a reasonable fee for recovery of the insurance 574-18 carrier's interest that may not exceed one-third of the insurance 574-19 carrier's recovery; and 574-20 (2) a proportionate share of expenses. 574-21 (b) An attorney who represents the claimant and is also to 574-22 represent the subrogated insurance carrier shall make a full 574-23 written disclosure to the claimant before employment as an attorney 574-24 by the insurance carrier. The claimant must acknowledge the 574-25 disclosure and consent to the representation. A signed copy of the 574-26 disclosure shall be furnished to all concerned parties and made a 574-27 part of the commission file. A copy of the disclosure with the 575-1 claimant's consent shall be filed with the claimant's pleading 575-2 before a judgment is entered and approved by the court. The 575-3 claimant's attorney may not receive a fee under this section to 575-4 which the attorney is otherwise entitled under an agreement with 575-5 the insurance carrier unless the attorney complies with the 575-6 requirements of this subsection. 575-7 (c) If an attorney actively representing the insurance 575-8 carrier's interest actively participates in obtaining a recovery, 575-9 the court shall award and apportion between the claimant's and the 575-10 insurance carrier's attorneys a fee payable out of the insurance 575-11 carrier's subrogation recovery. In apportioning the award, the 575-12 court shall consider the benefit accruing to the insurance carrier 575-13 as a result of each attorney's service. The total attorney's fees 575-14 may not exceed one-third of the insurance carrier's recovery. 575-15 (d) For purposes of determining the amount of an attorney's 575-16 fee under this section, only the amount recovered for benefits, 575-17 including medical benefits, that have been paid by the insurance 575-18 carrier may be considered. (V.A.C.S. Arts. 8308-4.05(d) (part), 575-19 (e), (g).) 575-20 Sec. 417.004. EMPLOYER LIABILITY TO THIRD PARTY. In an 575-21 action for damages brought by an injured employee, a legal 575-22 beneficiary, or an insurance carrier against a third party liable 575-23 to pay damages for the injury or death under this chapter that 575-24 results in a judgment against the third party or a settlement by 575-25 the third party, the employer is not liable to the third party for 575-26 reimbursement or damages based on the judgment or settlement unless 575-27 the employer executed, before the injury or death occurred, a 576-1 written agreement with the third party to assume the liability. 576-2 (V.A.C.S. Art. 8308-4.04.) 576-3 (Chapters 418-450 reserved for expansion) 576-4 SUBTITLE B. DISCRIMINATION ISSUES 576-5 CHAPTER 451. DISCRIMINATION PROHIBITED 576-6 Sec. 451.001. DISCRIMINATION AGAINST EMPLOYEES PROHIBITED 576-7 Sec. 451.002. REMEDIES; BURDEN OF PROOF 576-8 Sec. 451.003. INJUNCTION 576-9 CHAPTER 451. DISCRIMINATION PROHIBITED 576-10 Sec. 451.001. DISCRIMINATION AGAINST EMPLOYEES PROHIBITED. 576-11 A person may not discharge or in any other manner discriminate 576-12 against an employee because the employee has: 576-13 (1) filed a workers' compensation claim in good faith; 576-14 (2) hired a lawyer to represent the employee in a 576-15 claim; 576-16 (3) instituted or caused to be instituted in good 576-17 faith a proceeding under Subtitle A; or 576-18 (4) testified or is about to testify in a proceeding 576-19 under Subtitle A. (V.A.C.S. Art. 8307c, Sec. 1.) 576-20 Sec. 451.002. REMEDIES; BURDEN OF PROOF. (a) A person who 576-21 violates Section 451.001 is liable for reasonable damages incurred 576-22 by the employee as a result of the violation. 576-23 (b) An employee discharged in violation of Section 451.001 576-24 is entitled to reinstatement in the former position of employment. 576-25 (c) The burden of proof in a proceeding under this section 576-26 is on the employee. (V.A.C.S. Art. 8307c, Sec. 2.) 576-27 Sec. 451.003. INJUNCTION. A district court may restrain, 577-1 for cause shown, a violation of Section 451.001. (V.A.C.S. Art. 577-2 8307c, Sec. 3.) 577-3 (Chapters 452-500 reserved for expansion) 577-4 SUBTITLE C. WORKERS' COMPENSATION INSURANCE 577-5 COVERAGE FOR CERTAIN GOVERNMENT EMPLOYEES 577-6 CHAPTER 501. WORKERS' COMPENSATION INSURANCE COVERAGE FOR STATE 577-7 EMPLOYEES, INCLUDING EMPLOYEES UNDER THE DIRECTION OR CONTROL OF 577-8 THE BOARD OF REGENTS OF TEXAS TECH UNIVERSITY 577-9 SUBCHAPTER A. GENERAL PROVISIONS 577-10 Sec. 501.001. DEFINITIONS 577-11 Sec. 501.002. APPLICATION OF GENERAL WORKERS' COMPENSATION LAWS; 577-12 LIMIT ON ACTIONS AND DAMAGES 577-13 Sec. 501.003. LEGAL BENEFICIARY OF DECEASED EMPLOYEE 577-14 (Sections 501.004-501.020 reserved for expansion) 577-15 SUBCHAPTER B. COVERAGE 577-16 Sec. 501.021. WORKERS' COMPENSATION COVERAGE FOR 577-17 EMPLOYEES 577-18 Sec. 501.022. TEXAS TECH UNIVERSITY EMPLOYEES 577-19 Sec. 501.023. STATE SELF-INSURING 577-20 Sec. 501.024. EXCLUSIONS FROM COVERAGE 577-21 Sec. 501.025. COVERAGE FOR OUT-OF-STATE EMPLOYEES 577-22 (Sections 501.026-501.040 reserved for expansion) 577-23 SUBCHAPTER C. ADMINISTRATION 577-24 Sec. 501.041. WORKERS' COMPENSATION DIVISION; DIRECTOR 577-25 Sec. 501.042. DIRECTOR AS EMPLOYER AND INSURER 577-26 Sec. 501.043. DIRECTOR'S POWERS AND DUTIES 577-27 Sec. 501.044. EFFECT OF SICK LEAVE 578-1 Sec. 501.045. EFFECT OF EMERGENCY LEAVE 578-2 Sec. 501.046. REPORTS OF TERMINATION OR CONTINUATION 578-3 OF INJURIES 578-4 Sec. 501.047. REPORTS TO LEGISLATURE 578-5 Sec. 501.048. STATE AGENCY SUMMARY IN BUDGET REQUESTS 578-6 Sec. 501.049. STATE WORKERS' COMPENSATION ACCOUNT 578-7 Sec. 501.050. NOTICE OF APPEAL; NOTICE OF TRIAL COURT 578-8 JUDGMENT; OFFENSE 578-9 CHAPTER 501. WORKERS' COMPENSATION INSURANCE COVERAGE FOR STATE 578-10 EMPLOYEES, INCLUDING EMPLOYEES UNDER THE DIRECTION OR CONTROL OF 578-11 THE BOARD OF REGENTS OF TEXAS TECH UNIVERSITY 578-12 SUBCHAPTER A. GENERAL PROVISIONS 578-13 Sec. 501.001. DEFINITIONS. In this chapter: 578-14 (1) "Commission" means the Texas Workers' Compensation 578-15 Commission. 578-16 (2) "Compensable injury" has the meaning assigned to 578-17 that term under Subtitle A. 578-18 (3) "Director" means the director of the workers' 578-19 compensation division of the attorney general's office. 578-20 (4) "Division" means the workers' compensation 578-21 division of the attorney general's office. 578-22 (5) "Employee" means a person who is: 578-23 (A) in the service of the state pursuant to an 578-24 election, appointment, or express oral or written contract of hire; 578-25 (B) paid from state funds but whose duties 578-26 require that the person work and frequently receive supervision in 578-27 a political subdivision of the state; or 579-1 (C) a peace officer employed by a political 579-2 subdivision, while the peace officer is exercising authority 579-3 granted under Article 14.03(c), Code of Criminal Procedure. 579-4 (6) "State agency" includes a department, board, 579-5 commission, or institution of this state. (New; V.A.C.S. Art. 579-6 8309g, Secs. 1(1), (3) (part), (4), (5), (6).) 579-7 Sec. 501.002. APPLICATION OF GENERAL WORKERS' COMPENSATION 579-8 LAWS; LIMIT ON ACTIONS AND DAMAGES. (a) The following provisions 579-9 of Subtitles A and B apply to and are included in this chapter 579-10 except to the extent that they are inconsistent with this chapter: 579-11 (1) Chapter 401, other than Section 401.012 defining 579-12 "employee"; 579-13 (2) Chapter 402; 579-14 (3) Chapter 403, other than Sections 403.001-403.005; 579-15 (4) Chapter 405; 579-16 (5) Subchapters B and D through H, Chapter 406, other 579-17 than Sections 406.071(a), 406.073, and 406.075; 579-18 (6) Chapter 408, other than Sections 408.001(b) and 579-19 (c); 579-20 (7) Chapters 409 and 410; 579-21 (8) Subchapters A and G, Chapter 411, other than 579-22 Sections 411.003 and 411.004; 579-23 (9) Chapters 412-417; and 579-24 (10) Chapter 451. 579-25 (b) For the purposes of Chapter 451, the individual agency 579-26 shall be considered the employer. 579-27 (c) For the purpose of applying the provisions listed by 580-1 Subsection (a) to this chapter, "insurer" or "employer" means 580-2 "state," "division," or "director," as applicable. 580-3 (d) Neither this chapter nor Subtitle A authorizes a cause 580-4 of action or damages against the state, a state agency, or an 580-5 employee of the state beyond the actions and damages authorized by 580-6 Chapter 101, Civil Practice and Remedies Code. (V.A.C.S. Art. 580-7 8309g, Sec. 15.) 580-8 Sec. 501.003. LEGAL BENEFICIARY OF DECEASED EMPLOYEE. (a) 580-9 The provisions of this chapter and the rules of the director 580-10 affecting an employee also apply to the legal beneficiary of a 580-11 deceased employee. 580-12 (b) In this section, "legal beneficiary" has the meaning 580-13 assigned to that term under Section 401.011. (V.A.C.S. Art. 8309g, 580-14 Secs. 1(3) (part), 13.) 580-15 (Sections 501.004-501.020 reserved for expansion) 580-16 SUBCHAPTER B. COVERAGE 580-17 Sec. 501.021. WORKERS' COMPENSATION COVERAGE FOR EMPLOYEES. 580-18 An employee with a compensable injury is entitled to compensation 580-19 by the director as provided by this chapter. (V.A.C.S. Art. 8309g, 580-20 Sec. 11(a).) 580-21 Sec. 501.022. TEXAS TECH UNIVERSITY EMPLOYEES. An eligible 580-22 employee of Texas Tech University, Texas Tech University Research 580-23 Farm, Texas Tech University School of Medicine at Lubbock, or 580-24 another agency under the direction and control of the board of 580-25 regents of Texas Tech University is entitled to participate in the 580-26 workers' compensation program for state employees provided under 580-27 this chapter. (V.A.C.S. Art. 8309g-1.) 581-1 Sec. 501.023. STATE SELF-INSURING. The state is 581-2 self-insuring with respect to an employee's compensable injury. 581-3 (V.A.C.S. Art. 8309g, Sec. 2.) 581-4 Sec. 501.024. EXCLUSIONS FROM COVERAGE. The following 581-5 persons are excluded from coverage as an employee under this 581-6 chapter: 581-7 (1) a person performing personal services for the 581-8 state as an independent contractor or volunteer; 581-9 (2) a member of the state military forces as defined 581-10 by Section 431.001, Government Code; 581-11 (3) a person who at the time of injury was performing 581-12 services for the federal government and who is covered by some form 581-13 of federal workers' compensation insurance; 581-14 (4) a prisoner or inmate of a prison or correctional 581-15 institution; 581-16 (5) a client or patient of a state agency; 581-17 (6) a person employed by the Texas Department of 581-18 Transportation who is covered under Chapter 505; 581-19 (7) a person employed by The University of Texas 581-20 System who is covered by Chapter 503; and 581-21 (8) a person employed by The Texas A&M University 581-22 System who is covered by Chapter 502. (V.A.C.S. Art. 8309g, 581-23 Sec. 1(2).) 581-24 Sec. 501.025. COVERAGE FOR OUT-OF-STATE EMPLOYEES. (a) An 581-25 employee who performs services outside the state is entitled to 581-26 benefits under this chapter even if the person: 581-27 (1) is hired or not hired in this state; 582-1 (2) does not work in this state; 582-2 (3) works both in this state and out of state; 582-3 (4) is injured outside this state; or 582-4 (5) has been outside this state for more than one 582-5 year. 582-6 (b) An employee who elects to pursue remedies provided by 582-7 the state where the injury occurred is not entitled to benefits 582-8 under this chapter. (V.A.C.S. Art. 8309g, Sec. 17.) 582-9 (Sections 501.026-501.040 reserved for expansion) 582-10 SUBCHAPTER C. ADMINISTRATION 582-11 Sec. 501.041. WORKERS' COMPENSATION DIVISION; DIRECTOR. (a) 582-12 The attorney general shall maintain a division of workers' 582-13 compensation to administer this chapter. 582-14 (b) The attorney general shall appoint a director to act as 582-15 chief executive and administrative officer of the division. 582-16 (c) The attorney general shall provide the director with 582-17 office space and sufficient personnel to administer this chapter. 582-18 (d) The director shall administer this chapter with money 582-19 appropriated by the legislature. 582-20 (e) With the approval of the attorney general, the director 582-21 may contract with a company authorized to do business in this state 582-22 for any or all of the administrative services required by this 582-23 chapter. A contract awarded under this subsection shall be awarded 582-24 on the basis of competitive bidding by qualified companies. 582-25 (V.A.C.S. Art. 8309g, Sec. 3.) 582-26 Sec. 501.042. DIRECTOR AS EMPLOYER AND INSURER. (a) In 582-27 administering and enforcing this chapter, the director shall act in 583-1 the capacity of employer and insurer. 583-2 (b) The director shall act as an adversary before the 583-3 commission and courts and present the legal defenses and positions 583-4 of the state as an employer and insurer. 583-5 (c) For the purposes of this section, the director is 583-6 entitled to the legal counsel of the attorney general. 583-7 (d) The director is subject to the rules, orders, and 583-8 decisions of the commission in the same manner as a private 583-9 employer, insurer, or association. (V.A.C.S. Art. 8309g, Secs. 4, 583-10 10.) 583-11 Sec. 501.043. DIRECTOR'S POWERS AND DUTIES. (a) The 583-12 director shall: 583-13 (1) adopt procedural rules and prescribe forms 583-14 necessary for the effective administration of this chapter; and 583-15 (2) adopt and enforce reasonable rules for the 583-16 prevention of accidents and injuries. 583-17 (b) The director shall hold hearings on all proposed rules 583-18 and provide reasonable opportunity for the officers of state 583-19 agencies to testify at hearings on all proposed rules under this 583-20 section. 583-21 (c) The director shall furnish copies of all rules to the 583-22 commission and to the administrative heads of all state agencies 583-23 affected by this chapter. (V.A.C.S. Art. 8309g, Secs. 5, 6 (part), 583-24 7.) 583-25 Sec. 501.044. EFFECT OF SICK LEAVE. An employee may elect 583-26 to use accrued sick leave before receiving income benefits. If an 583-27 employee elects to use sick leave, the employee is not entitled to 584-1 income benefits under this chapter until the employee has exhausted 584-2 the employee's accrued sick leave. (V.A.C.S. Art. 8309g, 584-3 Sec. 12(a).) 584-4 Sec. 501.045. EFFECT OF EMERGENCY LEAVE. (a) Payments for 584-5 emergency leave authorized by the administrative head of a state 584-6 agency in accordance with the General Appropriations Act for an 584-7 employee receiving income benefits under this chapter may not: 584-8 (1) exceed for a month the amount computed by 584-9 subtracting the amount of income benefits received for the month 584-10 from the basic monthly wage of the employee; and 584-11 (2) be paid for a period longer than six months after 584-12 the date on which benefits begin. 584-13 (b) The administrative head authorizing the emergency leave 584-14 payments shall review the merits of each case individually. 584-15 (c) If payment for emergency leave is authorized, the state 584-16 agency shall attach a statement of the reasons for the 584-17 authorization to its duplicate payroll voucher for the first 584-18 payroll period affected by the leave. (V.A.C.S. Art. 8309g, Sec. 584-19 12(b).) 584-20 Sec. 501.046. REPORTS OF TERMINATION OR CONTINUATION OF 584-21 INJURIES. In addition to other reports required by the commission, 584-22 the director shall file a subsequent report not later than the 10th 584-23 day after the date of the termination of the injured employee's 584-24 incapacity. If the employee's incapacity extends beyond 60 days, 584-25 the director shall file a subsequent report before the 70th day 584-26 after the date the employee's incapacity began. (V.A.C.S. Art. 584-27 8309g, Sec. 8 (part).) 585-1 Sec. 501.047. REPORTS TO LEGISLATURE. (a) The director 585-2 shall report to the legislature at the beginning of each regular 585-3 session. 585-4 (b) The report required under this section shall be dated 585-5 January 1 of the year in which the regular session is held and 585-6 must include: 585-7 (1) a list of all persons who have received benefits 585-8 under this chapter, the nature and cause of each injury, and the 585-9 amounts paid weekly in income benefits and for medical, hospital, 585-10 and other services; 585-11 (2) a summary of administrative expenses; 585-12 (3) a statement: 585-13 (A) showing the amount of the money appropriated 585-14 by the preceding legislature that remains unexpended on the date of 585-15 the report; and 585-16 (B) estimating the amount of that balance 585-17 necessary to administer this chapter for the remainder of that 585-18 fiscal year; and 585-19 (4) an estimate, based on experience factors, of the 585-20 amount of money that will be required to administer this chapter 585-21 and pay for the compensation and services provided under this 585-22 chapter during the next succeeding biennium. 585-23 (c) The director shall report to the legislature a state 585-24 agency that fails to meet its obligation regarding the prevention 585-25 of accidents and injuries to state employees. (V.A.C.S. Art. 585-26 8309g, Secs. 6 (part), 9.) 585-27 Sec. 501.048. STATE AGENCY SUMMARY IN BUDGET REQUESTS. Each 586-1 state agency shall submit in the administrative statement of its 586-2 biennial budget request a summary containing: 586-3 (1) the number of first reports of injury filed by the 586-4 agency during the preceding biennium; 586-5 (2) the amount of workers' compensation indemnity and 586-6 medical benefits paid to or for employees during the preceding 586-7 biennium; 586-8 (3) the number of on-the-job injuries per 100 of its 586-9 employees during each year of the preceding biennium; and 586-10 (4) a description of the efforts made by the agency to 586-11 increase job safety and to reduce job injuries, including the 586-12 participation of the head of the agency and the executive staff of 586-13 the agency in training programs offered by the division and others. 586-14 (V.A.C.S. Art. 8309g, Sec. 6 (part).) 586-15 Sec. 501.049. STATE WORKERS' COMPENSATION ACCOUNT. (a) All 586-16 money recovered by the director from a third party through 586-17 subrogation shall be deposited into the state workers' compensation 586-18 account in general revenue. 586-19 (b) Funds deposited under this section may be used for the 586-20 payment of compensation and other benefits to state employees. 586-21 (V.A.C.S. Art. 8309g, Sec. 18.) 586-22 Sec. 501.050. NOTICE OF APPEAL; NOTICE OF TRIAL COURT 586-23 JUDGMENT; OFFENSE. (a) In each case appealed from the commission 586-24 to a county or district court: 586-25 (1) the clerk of the court shall mail to the 586-26 commission: 586-27 (A) not later than the 20th day after the date 587-1 the case is filed, a notice containing the style, number, and date 587-2 of filing of the case; and 587-3 (B) not later than the 20th day after the date 587-4 the judgment is rendered, a certified copy of the judgment; and 587-5 (2) the attorney preparing the judgment shall file the 587-6 original and a copy of the judgment with the clerk. 587-7 (b) An attorney's failure to comply with Subsection (a)(2) 587-8 does not excuse the failure of a county or district clerk to comply 587-9 with Subsection (a)(1)(B). 587-10 (c) The clerk is not entitled to a fee for the services. 587-11 (d) A county or district clerk who violates this section 587-12 commits an offense. An offense under this subsection is a 587-13 misdemeanor punishable by a fine not to exceed $250. (V.A.C.S. 587-14 Art. 8309g, Sec. 14.) 587-15 CHAPTER 502. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 587-16 EMPLOYEES OF THE TEXAS A&M UNIVERSITY SYSTEM 587-17 SUBCHAPTER A. GENERAL PROVISIONS 587-18 Sec. 502.001. DEFINITIONS 587-19 Sec. 502.002. APPLICATION OF GENERAL WORKERS' COMPENSATION LAWS; 587-20 LIMIT ON ACTIONS AND DAMAGES 587-21 Sec. 502.003. LEGAL BENEFICIARY OF DECEASED EMPLOYEE 587-22 (Sections 502.004-502.020 reserved for expansion) 587-23 SUBCHAPTER B. COVERAGE 587-24 Sec. 502.021. WORKERS' COMPENSATION COVERAGE FOR INSTITUTION 587-25 EMPLOYEES 587-26 Sec. 502.022. AUTHORITY TO SELF-INSURE 587-27 Sec. 502.023. INSURANCE REQUIREMENT 588-1 Sec. 502.024. PREEXISTING DISQUALIFYING CONDITION 588-2 (Sections 502.025-502.040 reserved for expansion) 588-3 SUBCHAPTER C. OFFSETS 588-4 Sec. 502.041. EXHAUSTION OF ANNUAL AND SICK LEAVE 588-5 (Sections 502.042-502.060 reserved for expansion) 588-6 SUBCHAPTER D. ADMINISTRATION 588-7 Sec. 502.061. ADMINISTRATION AND RULES 588-8 Sec. 502.062. PERCENTAGE OF PAYROLL SET ASIDE FOR WORKERS' 588-9 COMPENSATION EXPENSES; ACCOUNT; REPORTS 588-10 Sec. 502.063. CERTIFIED COPIES OF COMMISSION DOCUMENTS 588-11 Sec. 502.064. PREEMPLOYMENT PHYSICAL REQUIRED; EXAMINING 588-12 PHYSICIANS; INSTITUTION RECORDS 588-13 Sec. 502.065. REPORTS OF INJURIES 588-14 Sec. 502.066. REQUIRED EXAMINATION OF INJURED EMPLOYEE; REFUSAL 588-15 TO SUBMIT TO EXAMINATION 588-16 Sec. 502.067. REFUSAL TO SUBMIT TO MEDICAL TREATMENT 588-17 Sec. 502.068. POSTPONEMENT OF HEARING 588-18 Sec. 502.069. NOTICE OF APPEAL; NOTICE OF TRIAL COURT JUDGMENT; 588-19 OFFENSE 588-20 Sec. 502.070. ATTORNEY GENERAL AS LEGAL REPRESENTATIVE 588-21 CHAPTER 502. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 588-22 EMPLOYEES OF THE TEXAS A&M UNIVERSITY SYSTEM 588-23 SUBCHAPTER A. GENERAL PROVISIONS 588-24 Sec. 502.001. DEFINITIONS. In this chapter: 588-25 (1) "Commission" means the Texas Workers' Compensation 588-26 Commission. 588-27 (2) "Employee" means a person employed in the service 589-1 of an institution whose name appears on the institution's payroll. 589-2 (3) "Institution" means an institution of higher 589-3 education or agency under the direction or governance of the board 589-4 of regents of The Texas A&M University System. 589-5 (4) "System" has the meaning assigned by Section 589-6 85.01(1), Education Code. (New; V.A.C.S. Art. 8309b, Secs. 589-7 2(a)(1), (2), (3), (4).) 589-8 Sec. 502.002. APPLICATION OF GENERAL WORKERS' COMPENSATION 589-9 LAWS; LIMIT ON ACTIONS AND DAMAGES. (a) The following provisions 589-10 of Subtitle A apply to and are included in this chapter except to 589-11 the extent that they are inconsistent with this chapter: 589-12 (1) Chapter 401, other than Section 401.012 defining 589-13 "employee"; 589-14 (2) Chapter 402; 589-15 (3) Chapter 403, other than Sections 403.001-403.005; 589-16 (4) Chapter 405; 589-17 (5) Sections 406.031-406.033; Subchapter D, Chapter 589-18 406; Sections 406.092 and 406.093; 589-19 (6) Chapter 408, other than Sections 408.001(b) and 589-20 (c); 589-21 (7) Chapters 409 and 410; 589-22 (8) Subchapters A and G, Chapter 411, other than 589-23 Sections 411.003 and 411.004; and 589-24 (9) Chapters 412-417. 589-25 (b) For the purpose of applying the provisions listed by 589-26 Subsection (a) to this chapter, "employer" means "the institution." 589-27 (c) Neither this chapter nor Subtitle A authorizes a cause 590-1 of action or damages against the system or any institution or 590-2 employee of the system or institution beyond the actions and 590-3 damages authorized by Chapter 101, Civil Practice and Remedies 590-4 Code. (V.A.C.S. Art. 8309b, Sec. 7.) 590-5 Sec. 502.003. LEGAL BENEFICIARY OF DECEASED EMPLOYEE. (a) 590-6 A reference in this chapter to an injured employee includes the 590-7 legal beneficiaries of the employee if the injured employee is 590-8 dead. 590-9 (b) In this section, "legal beneficiary" has the meaning 590-10 assigned to that term under Section 401.011. (V.A.C.S. Art. 8309b, 590-11 Secs. 2(a)(5), (b) (part).) 590-12 (Sections 502.004-502.020 reserved for expansion) 590-13 SUBCHAPTER B. COVERAGE 590-14 Sec. 502.021. WORKERS' COMPENSATION COVERAGE FOR INSTITUTION 590-15 EMPLOYEES. (a) The institution shall pay benefits as provided by 590-16 this chapter to an employee with a compensable injury. 590-17 (b) A benefit under this section for an employee who is 590-18 employed on less than a full workday basis may not exceed 60 590-19 percent of the employee's average weekly wage as computed under 590-20 Section 408.042. 590-21 (c) A benefit shall be paid weekly as it accrues directly to 590-22 the person entitled to it unless the liability is redeemed as 590-23 provided by this chapter. 590-24 (d) In this section, "average weekly wage" has the meaning 590-25 assigned to that term by Subchapter C, Chapter 408. (V.A.C.S. 590-26 Art. 8309b, Secs. 2(a)(6), 3 (part), 4, 9 (part).) 590-27 Sec. 502.022. AUTHORITY TO SELF-INSURE. An institution may 591-1 self-insure. (V.A.C.S. Art. 8309b, Sec. 3 (part).) 591-2 Sec. 502.023. INSURANCE REQUIREMENT. (a) The board of 591-3 regents of the system may require each employee, as a condition of 591-4 employment, to acquire protection under a group life and accident 591-5 insurance plan approved by the board. 591-6 (b) This section does not apply to an employee who is paid 591-7 on a piece-work basis or on any basis other than by the hour, day, 591-8 week, month, or year. (V.A.C.S. Art. 8309b, Sec. 3 (part).) 591-9 Sec. 502.024. PREEXISTING DISQUALIFYING CONDITION. (a) An 591-10 institution may certify as an employee a person who indicates a 591-11 preexisting disqualifying physical condition in a medical history 591-12 obtained under Section 502.064 or who is found to have a 591-13 preexisting disqualifying medical condition in a physical 591-14 examination under Section 502.064 on the condition that the person 591-15 execute in writing a waiver of coverage under this chapter for the 591-16 preexisting disqualifying physical condition before becoming an 591-17 employee of the institution. 591-18 (b) A waiver under Subsection (a) is valid and binding on 591-19 the employee who executes the waiver. Compensation or death 591-20 benefits may not be paid to the employee or the employee's 591-21 beneficiaries for an injury or death of the employee that is 591-22 attributable to the condition for which coverage was waived. 591-23 (V.A.C.S. Art. 8309b, Sec. 15.) 591-24 (Sections 502.025-502.040 reserved for expansion) 591-25 SUBCHAPTER C. OFFSETS 591-26 Sec. 502.041. EXHAUSTION OF ANNUAL AND SICK LEAVE. (a) An 591-27 institution may provide that an injured employee may remain on the 592-1 payroll until the employee's earned annual and sick leave is 592-2 exhausted. 592-3 (b) While an injured employee remains on the payroll under 592-4 Subsection (a), medical services remain available to the employee, 592-5 but workers' compensation benefits do not accrue or become payable 592-6 to the injured employee. (V.A.C.S. Art. 8309b, Sec. 9 (part).) 592-7 (Sections 502.042-502.060 reserved for expansion) 592-8 SUBCHAPTER D. ADMINISTRATION 592-9 Sec. 502.061. ADMINISTRATION AND RULES. (a) Each 592-10 institution shall administer this chapter. 592-11 (b) Process and procedure under this chapter shall be as 592-12 summary as possible. 592-13 (c) The institution may: 592-14 (1) adopt and publish rules and prescribe and furnish 592-15 forms necessary for the administration of this chapter; and 592-16 (2) adopt and enforce rules necessary for the 592-17 prevention of accidents and injuries. (V.A.C.S. Art. 8309b, Secs. 592-18 3 (part), 10 (part), 13 (part).) 592-19 Sec. 502.062. PERCENTAGE OF PAYROLL SET ASIDE FOR WORKERS' 592-20 COMPENSATION EXPENSES; ACCOUNT; REPORTS. (a) An institution may 592-21 set aside from its available appropriations, other than itemized 592-22 salary appropriations, an amount not to exceed two percent of the 592-23 institution's annual payroll for the payment of administrative 592-24 expenses, charges, benefits, and awards under this chapter. 592-25 (b) The amount set aside under Subsection (a) shall be set 592-26 up in a separate account in the institution's records. The balance 592-27 of the account at any time may not exceed an amount equal to two 593-1 percent of the institution's annual payroll. 593-2 (c) The account must show the disbursements authorized by 593-3 this chapter. A statement of the amount set aside for the account 593-4 and the disbursements from the account shall be included in the 593-5 reports made to the governor and the legislature as required by 593-6 law. (V.A.C.S. Art. 8309b, Sec. 19.) 593-7 Sec. 502.063. CERTIFIED COPIES OF COMMISSION DOCUMENTS. (a) 593-8 The commission shall furnish a certified copy of an order, award, 593-9 decision, or paper on file in the commission's office to a person 593-10 entitled to the copy on written request and payment of the fee for 593-11 the copy. The fee is the same as that charged for similar services 593-12 by the secretary of state's office. 593-13 (b) An institution may obtain certified copies under this 593-14 section without charge. 593-15 (c) A fee or salary may not be paid to a member or employee 593-16 of the commission for making a copy under Subsection (a) that 593-17 exceeds the fee charged for the copy. (V.A.C.S. Art. 8309b, Sec. 593-18 16 (part).) 593-19 Sec. 502.064. PREEMPLOYMENT PHYSICAL REQUIRED; EXAMINING 593-20 PHYSICIANS; INSTITUTION RECORDS. (a) An institution may obtain 593-21 and record on a form prescribed by the institution the medical 593-22 history of a person to be employed by the institution. 593-23 (b) The institution may require that an individual may not 593-24 be certified as an employee of the institution under this chapter 593-25 until the individual: 593-26 (1) submits to a physical examination as provided by 593-27 this section; and 594-1 (2) is certified by the examining physician or 594-2 chiropractor to be physically fit to perform the duties and 594-3 services to which the individual is to be assigned. 594-4 (c) The institution may designate a convenient number of 594-5 licensed practicing physicians and chiropractors to perform 594-6 physical examinations under this section. 594-7 (d) A physician or chiropractor designated under Subsection 594-8 (c) who conducts an examination shall file with the institution a 594-9 complete transcript of the examination. The transcript must be 594-10 sworn to on a form provided by the institution. 594-11 (e) The institution shall maintain all reports and medical 594-12 histories filed with the institution under this section as part of 594-13 the institution's permanent records. (V.A.C.S. Art. 8309b, Secs. 594-14 13 (part), 14.) 594-15 Sec. 502.065. REPORTS OF INJURIES. (a) In addition to a 594-16 report of an injury filed with the commission under Section 594-17 409.005(a), an institution shall file a supplemental report that 594-18 contains: 594-19 (1) the name, age, sex, and occupation of the injured 594-20 employee; 594-21 (2) the character of work in which the employee was 594-22 engaged at the time of the injury; 594-23 (3) the place, date, and hour of the injury; and 594-24 (4) the nature and cause of the injury. 594-25 (b) The institution shall file the supplemental report on a 594-26 form obtained for that purpose: 594-27 (1) on the termination of incapacity of the injured 595-1 employee; or 595-2 (2) if the incapacity extends beyond 60 days. 595-3 (V.A.C.S. Art. 8309b, Sec. 12 (part).) 595-4 Sec. 502.066. REQUIRED EXAMINATION OF INJURED EMPLOYEE; 595-5 REFUSAL TO SUBMIT TO EXAMINATION. (a) The commission may require 595-6 an employee who claims to have been injured to submit to an 595-7 examination by the commission or a person acting under the 595-8 commission's authority at a reasonable time and place in this 595-9 state. 595-10 (b) On the request of an employee or the institution, the 595-11 employee or the institution is entitled to have a physician or 595-12 chiropractor selected by the employee or the institution, as 595-13 appropriate, present to participate in an examination under 595-14 Subsection (a) or Section 408.004. 595-15 (c) An employee is not entitled to compensation during or 595-16 for a period in which the employee refuses to submit to an 595-17 examination under Subsection (a) or Section 408.004. 595-18 (d) The institution may have an injured employee examined at 595-19 a reasonable time and at a place suitable to the employee's 595-20 condition and convenient and accessible to the employee by a 595-21 physician or chiropractor selected by the institution. The 595-22 institution shall pay for an examination under this subsection and 595-23 for the employee's reasonable expenses incident to the examination. 595-24 The employee is entitled to have a physician or chiropractor 595-25 selected by the employee present to participate in an examination 595-26 under this subsection. 595-27 (e) The institution shall pay the fee set by the commission 596-1 of a physician or chiropractor selected by the employee under 596-2 Subsection (b) or (d). (V.A.C.S. Art. 8309b, Sec. 10 (part).) 596-3 Sec. 502.067. REFUSAL TO SUBMIT TO MEDICAL TREATMENT. (a) 596-4 The commission may order or direct the institution to reduce or 596-5 suspend the compensation of an injured employee who: 596-6 (1) persists in insanitary or injurious practices that 596-7 tend to imperil or retard the employee's recovery; or 596-8 (2) refuses to submit to medical, surgical, 596-9 chiropractic, or other remedial treatment recognized by the state 596-10 that is reasonably essential to promote the employee's recovery. 596-11 (b) Compensation may not be reduced or suspended under this 596-12 section without reasonable notice to the employee and an 596-13 opportunity to be heard. (V.A.C.S. Art. 8309b, Sec. 10 (part).) 596-14 Sec. 502.068. POSTPONEMENT OF HEARING. If an injured 596-15 employee is receiving benefits under this chapter and the 596-16 institution is providing hospitalization, medical treatment, or 596-17 chiropractic care to the employee, the commission may postpone the 596-18 hearing on the employee's claim. An appeal may not be taken from a 596-19 commission order under this section. (V.A.C.S. Art. 8309b, Sec. 18 596-20 (part).) 596-21 Sec. 502.069. NOTICE OF APPEAL; NOTICE OF TRIAL COURT 596-22 JUDGMENT; OFFENSE. (a) In each case appealed from the commission 596-23 to a county or district court: 596-24 (1) the clerk of the court shall mail to the 596-25 commission: 596-26 (A) not later than the 20th day after the date 596-27 the case is filed, a notice containing the style, number, and date 597-1 of filing of the case; and 597-2 (B) not later than the 20th day after the date 597-3 the judgment is rendered, a certified copy of the judgment; and 597-4 (2) the attorney preparing the judgment shall file the 597-5 original and a copy of the judgment with the clerk. 597-6 (b) An attorney's failure to comply with Subsection (a)(2) 597-7 does not excuse the failure of a county or district clerk to comply 597-8 with Subsection (a)(1)(B). 597-9 (c) The duties of a county or district clerk under 597-10 Subsection (a)(1) are part of the clerk's ex officio duties, and 597-11 the clerk is not entitled to a fee for the services. 597-12 (d) A county or district clerk who violates this section 597-13 commits an offense. An offense under this section is a misdemeanor 597-14 punishable by a fine not to exceed $250. (V.A.C.S. Art. 8309b, 597-15 Sec. 21.) 597-16 Sec. 502.070. ATTORNEY GENERAL AS LEGAL REPRESENTATIVE. The 597-17 attorney general is the institution's legal representative and may 597-18 bring and defend all suits and hearings necessary to carry out the 597-19 purposes of this chapter. (V.A.C.S. Art. 8309b, Sec. 20.) 597-20 CHAPTER 503. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 597-21 EMPLOYEES OF THE UNIVERSITY OF TEXAS SYSTEM 597-22 SUBCHAPTER A. GENERAL PROVISIONS 597-23 Sec. 503.001. DEFINITIONS 597-24 Sec. 503.002. APPLICATION OF GENERAL WORKERS' COMPENSATION LAWS; 597-25 LIMIT ON ACTIONS AND DAMAGES 597-26 Sec. 503.003. LEGAL BENEFICIARY OF DECEASED EMPLOYEE 597-27 (Sections 503.004-503.020 reserved for expansion) 598-1 SUBCHAPTER B. COVERAGE 598-2 Sec. 503.021. WORKERS' COMPENSATION COVERAGE FOR SYSTEM 598-3 AND INSTITUTION EMPLOYEES 598-4 Sec. 503.022. AUTHORITY TO SELF-INSURE 598-5 Sec. 503.023. INSURANCE REQUIREMENT 598-6 Sec. 503.024. WAIVER OF RIGHTS 598-7 (Sections 503.025-503.040 reserved for expansion) 598-8 SUBCHAPTER C. OFFSETS 598-9 Sec. 503.041. EXHAUSTION OF ANNUAL AND SICK LEAVE 598-10 (Sections 503.042-503.060 reserved for expansion) 598-11 SUBCHAPTER D. ADMINISTRATION 598-12 Sec. 503.061. ADMINISTRATION AND RULES 598-13 Sec. 503.062. PERCENTAGE OF PAYROLL SET ASIDE FOR WORKERS' 598-14 COMPENSATION EXPENSES; ACCOUNT; REPORTS 598-15 Sec. 503.063. CERTIFIED COPIES OF COMMISSION DOCUMENTS 598-16 Sec. 503.064. EXAMINING PHYSICIANS 598-17 Sec. 503.065. REPORTS OF INJURIES 598-18 Sec. 503.066. REQUIRED EXAMINATION OF INJURED EMPLOYEE; REFUSAL 598-19 TO SUBMIT TO EXAMINATION 598-20 Sec. 503.067. REFUSAL TO SUBMIT TO MEDICAL TREATMENT 598-21 Sec. 503.068. POSTPONEMENT OF HEARING 598-22 Sec. 503.069. NOTICE OF APPEAL; NOTICE OF TRIAL COURT JUDGMENT; 598-23 OFFENSE 598-24 Sec. 503.070. VENUE FOR JUDICIAL REVIEW 598-25 Sec. 503.071. ATTORNEY GENERAL AS LEGAL REPRESENTATIVE 598-26 CHAPTER 503. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 598-27 EMPLOYEES OF THE UNIVERSITY OF TEXAS SYSTEM 599-1 SUBCHAPTER A. GENERAL PROVISIONS 599-2 Sec. 503.001. DEFINITIONS. In this chapter: 599-3 (1) "Commission" means the Texas Workers' Compensation 599-4 Commission. 599-5 (2) "Employee" means a person employed in the service 599-6 of the system under an appointment or oral or written express 599-7 contract for hire whose name appears on the system's payroll. 599-8 (3) "Institution" means an institution of higher 599-9 education or agency under the direction of the board of regents of 599-10 The University of Texas System. 599-11 (4) "System" has the meaning assigned by Section 599-12 65.01(1), Education Code. (New; V.A.C.S. Art. 8309d, Secs. 599-13 2(a)(1), (2), (3), (4).) 599-14 Sec. 503.002. APPLICATION OF GENERAL WORKERS' COMPENSATION 599-15 LAWS; LIMIT ON ACTIONS AND DAMAGES. (a) The following provisions 599-16 of Subtitle A apply to and are included in this chapter except to 599-17 the extent that they are inconsistent with this chapter: 599-18 (1) Chapter 401, other than Section 401.012 defining 599-19 "employee"; 599-20 (2) Chapter 402; 599-21 (3) Chapter 403, other than Sections 403.001-403.005; 599-22 (4) Chapter 405; 599-23 (5) Sections 406.031-406.033; Subchapter D, Chapter 599-24 406; Sections 406.092 and 406.093; 599-25 (6) Chapter 408, other than Sections 408.001(b) and 599-26 (c); 599-27 (7) Chapters 409 and 410; 600-1 (8) Subchapters A and G, Chapter 411, other than 600-2 Sections 411.003 and 411.004; and 600-3 (9) Chapters 412-417. 600-4 (b) For the purpose of applying the provisions listed by 600-5 Subsection (a) to this chapter, "employer" means "the institution." 600-6 (c) Neither this chapter nor Subtitle A authorizes a cause 600-7 of action or damages against the system or any institution or 600-8 employee of the system or institution beyond the actions and 600-9 damages authorized by Chapter 101, Civil Practice and Remedies 600-10 Code. (V.A.C.S. Art. 8309d, Sec. 7.) 600-11 Sec. 503.003. LEGAL BENEFICIARY OF DECEASED EMPLOYEE. (a) 600-12 A reference in this chapter to an injured employee includes the 600-13 legal beneficiaries of the employee if the injured employee is 600-14 dead. 600-15 (b) In this section, "legal beneficiary" has the meaning 600-16 assigned to that term under Section 401.011. (V.A.C.S. Art. 8309d, 600-17 Secs. 2(a)(5), (b) (part).) 600-18 (Sections 503.004-503.020 reserved for expansion) 600-19 SUBCHAPTER B. COVERAGE 600-20 Sec. 503.021. WORKERS' COMPENSATION COVERAGE FOR SYSTEM AND 600-21 INSTITUTION EMPLOYEES. (a) The institution shall pay benefits as 600-22 provided by this chapter to an employee with a compensable injury. 600-23 (b) A benefit under this section for an employee who is 600-24 employed on less than a full workday basis may not exceed 60 600-25 percent of the employee's average weekly wage as computed under 600-26 Section 408.042. 600-27 (c) A benefit shall be paid weekly as it accrues directly to 601-1 the person entitled to it unless the liability is redeemed as 601-2 provided by this chapter. 601-3 (d) In this section, "average weekly wage" has the meaning 601-4 assigned to that term by Subchapter C, Chapter 408. (V.A.C.S. 601-5 Art. 8309d, Secs. 2(a)(6), 3 (part), 4, 9 (part).) 601-6 Sec. 503.022. AUTHORITY TO SELF-INSURE. An institution may 601-7 self-insure. (V.A.C.S. Art. 8309d, Sec. 3 (part).) 601-8 Sec. 503.023. INSURANCE REQUIREMENT. The board of regents 601-9 of the system may require each person employed by the system or an 601-10 institution other than by appointment or express contract for hire, 601-11 as a condition of employment, to acquire protection under a group 601-12 life and accident insurance plan approved by the board. (V.A.C.S. 601-13 Art. 8309d, Sec. 3 (part).) 601-14 Sec. 503.024. WAIVER OF RIGHTS. An agreement by an employee 601-15 to waive the employee's rights under this chapter is valid if made 601-16 in writing by the employee before becoming an employee. (V.A.C.S. 601-17 Art. 8309d, Sec. 15.) 601-18 (Sections 503.025-503.040 reserved for expansion) 601-19 SUBCHAPTER C. OFFSETS 601-20 Sec. 503.041. EXHAUSTION OF ANNUAL AND SICK LEAVE. (a) An 601-21 institution may provide that an injured employee may remain on the 601-22 payroll until the employee's earned annual and sick leave is 601-23 exhausted. 601-24 (b) While an injured employee remains on the payroll under 601-25 Subsection (a), the employee is entitled to medical benefits but 601-26 income benefits do not accrue. (V.A.C.S. Art. 8309d, Sec. 9 601-27 (part).) 602-1 (Sections 503.042-503.060 reserved for expansion) 602-2 SUBCHAPTER D. ADMINISTRATION 602-3 Sec. 503.061. ADMINISTRATION AND RULES. (a) Each 602-4 institution shall administer this chapter. 602-5 (b) Process and procedure under this chapter shall be as 602-6 summary as possible. 602-7 (c) The institution may: 602-8 (1) adopt and publish rules and prescribe and furnish 602-9 forms necessary for the administration of this chapter; and 602-10 (2) adopt and enforce rules necessary for the 602-11 prevention of accidents and injuries. (V.A.C.S. Art. 8309d, Secs. 602-12 3 (part), 10 (part), 13 (part).) 602-13 Sec. 503.062. PERCENTAGE OF PAYROLL SET ASIDE FOR WORKERS' 602-14 COMPENSATION EXPENSES; ACCOUNT; REPORTS. (a) An institution may 602-15 set aside from its available appropriations, other than itemized 602-16 salary appropriations, an amount not to exceed two percent of the 602-17 institution's annual payroll for the payment of administrative 602-18 expenses, charges, benefits, and awards under this chapter. 602-19 (b) The amount set aside under Subsection (a) shall be set 602-20 up in a separate account in the institution's records. The balance 602-21 of the account at any time may not exceed an amount equal to two 602-22 percent of the institution's annual payroll. 602-23 (c) The account must show the disbursements authorized by 602-24 this chapter. A statement of the amount set aside for the account 602-25 and the disbursements from the account shall be included in the 602-26 reports made to the governor and the legislature as required by 602-27 law. (V.A.C.S. Art. 8309d, Sec. 19.) 603-1 Sec. 503.063. CERTIFIED COPIES OF COMMISSION DOCUMENTS. (a) 603-2 The commission shall furnish a certified copy of an order, award, 603-3 decision, or paper on file in the commission's office to a person 603-4 entitled to the copy on written request and payment of the fee for 603-5 the copy. The fee is the same as that charged for similar services 603-6 by the secretary of state's office. 603-7 (b) The institution may obtain certified copies under this 603-8 section without charge. 603-9 (c) A fee or salary may not be paid to a member or employee 603-10 of the commission for making a copy under Subsection (a) that 603-11 exceeds the fee charged for the copy. (V.A.C.S. Art. 8309d, 603-12 Sec. 16 (part).) 603-13 Sec. 503.064. EXAMINING PHYSICIANS. (a) The institution 603-14 shall designate a convenient number of licensed practicing 603-15 physicians to perform physical examinations of individuals employed 603-16 or to be employed by the institution to determine if an individual 603-17 is physically fit to be classified as an employee. 603-18 (b) A physician designated under Subsection (a) who conducts 603-19 an examination shall file with the institution a complete 603-20 transcript of the examination. The transcript must be sworn to on 603-21 a form provided by the institution. 603-22 (c) The institution shall maintain all reports under this 603-23 section as part of the institution's permanent records. (V.A.C.S. 603-24 Art. 8309d, Sec. 13 (part).) 603-25 Sec. 503.065. REPORTS OF INJURIES. (a) In addition to a 603-26 report of an injury filed with the commission under Section 603-27 409.005(a), an institution shall file a supplemental report that 604-1 contains: 604-2 (1) the name, age, sex, and occupation of the injured 604-3 employee; 604-4 (2) the character of work in which the employee was 604-5 engaged at the time of the injury; 604-6 (3) the place, date, and hour of the injury; and 604-7 (4) the nature and cause of the injury. 604-8 (b) The institution shall file the supplemental report on a 604-9 form obtained for that purpose: 604-10 (1) on the termination of incapacity of the injured 604-11 employee; or 604-12 (2) if the incapacity extends beyond 60 days. 604-13 (V.A.C.S. Art. 8309d, Sec. 12 (part).) 604-14 Sec. 503.066. REQUIRED EXAMINATION OF INJURED EMPLOYEE; 604-15 REFUSAL TO SUBMIT TO EXAMINATION. (a) The commission may require 604-16 an employee who claims to have been injured to submit to an 604-17 examination by the commission or a person acting under the 604-18 commission's authority at a reasonable time and place in this 604-19 state. 604-20 (b) On the request of an employee or the institution, the 604-21 employee or the institution is entitled to have a physician 604-22 selected by the employee or the institution, as appropriate, 604-23 present to participate in an examination under Subsection (a) or 604-24 Section 408.004. 604-25 (c) An employee is not entitled to compensation during or 604-26 for a period in which the employee refuses to submit to an 604-27 examination under Subsection (a) or Section 408.004. 605-1 (d) The institution may have an injured employee examined at 605-2 a reasonable time and at a place suitable to the employee's 605-3 condition and convenient and accessible to the employee by a 605-4 physician selected by the institution. The institution shall pay 605-5 for an examination under this subsection and for the employee's 605-6 reasonable expenses incident to the examination. The employee is 605-7 entitled to have a physician selected by the employee present to 605-8 participate in an examination under this subsection. 605-9 (e) The institution shall pay the fee, as set by the 605-10 commission, of a physician selected by the employee under 605-11 Subsection (b) or (d). (V.A.C.S. Art. 8309d, Sec. 10 (part).) 605-12 Sec. 503.067. REFUSAL TO SUBMIT TO MEDICAL TREATMENT. (a) 605-13 The commission may order or direct the institution to reduce or 605-14 suspend the compensation of an injured employee who: 605-15 (1) persists in insanitary or injurious practices that 605-16 tend to imperil or retard the employee's recovery; or 605-17 (2) refuses to submit to medical, surgical, or other 605-18 remedial treatment recognized by the state that is reasonably 605-19 essential to promote the employee's recovery. 605-20 (b) Compensation may not be reduced or suspended under this 605-21 section without reasonable notice to the employee and an 605-22 opportunity to be heard. (V.A.C.S. Art. 8309d, Sec. 10 (part).) 605-23 Sec. 503.068. POSTPONEMENT OF HEARING. If an injured 605-24 employee is receiving benefits under this chapter and the 605-25 institution is providing hospitalization or medical treatment to 605-26 the employee, the commission may postpone the hearing on the 605-27 employee's claim. An appeal may not be taken from a commission 606-1 order under this section. (V.A.C.S. Art. 8309d, Sec. 18 (part).) 606-2 Sec. 503.069. NOTICE OF APPEAL; NOTICE OF TRIAL COURT 606-3 JUDGMENT; OFFENSE. (a) In each case appealed from the commission 606-4 to a county or district court: 606-5 (1) the clerk of the court shall mail to the 606-6 commission: 606-7 (A) not later than the 20th day after the date 606-8 the case is filed, a notice containing the style, number, and date 606-9 of filing of the case; and 606-10 (B) not later than the 20th day after the date 606-11 the judgment is rendered, a certified copy of the judgment; and 606-12 (2) the attorney preparing the judgment shall file the 606-13 original and a copy of the judgment with the clerk. 606-14 (b) An attorney's failure to comply with Subsection (a)(2) 606-15 does not excuse the failure of a county or district clerk to comply 606-16 with Subsection (a)(1)(B). 606-17 (c) The duties of a county or district clerk under 606-18 Subsection (a)(1) are part of the clerk's ex officio duties, and 606-19 the clerk is not entitled to a fee for the services. 606-20 (d) A county or district clerk who violates this section 606-21 commits an offense. An offense under this section is a misdemeanor 606-22 punishable by a fine not to exceed $250. (V.A.C.S. Art. 8309d, 606-23 Sec. 21.) 606-24 Sec. 503.070. VENUE FOR JUDICIAL REVIEW. (a) A party who 606-25 does not consent to abide by the final decision of the commission 606-26 shall file notice with the commission as required by Section 606-27 410.253 and bring suit in the county in which the injury occurred 607-1 to set aside the final decision of the commission. 607-2 (b) If a suit under this section is filed in a county other 607-3 than the county in which the injury occurred, the court, on 607-4 determining that it does not have jurisdiction to render judgment 607-5 on the merits of the suit, shall transfer the case to a proper 607-6 court in the county in which the injury occurred. 607-7 (c) Notice of the transfer of a suit under Subsection (b) 607-8 shall be given to the parties. A suit transferred under Subsection 607-9 (b) shall be considered for all purposes the same as if originally 607-10 filed in the court to which it is transferred. (V.A.C.S. 607-11 Art. 8309d, Sec. 17.) 607-12 Sec. 503.071. ATTORNEY GENERAL AS LEGAL REPRESENTATIVE. The 607-13 attorney general is the institution's legal representative and may 607-14 bring and defend all suits and hearings necessary to carry out the 607-15 purposes of this chapter. (V.A.C.S. Art. 8309d, Sec. 20.) 607-16 CHAPTER 504. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 607-17 EMPLOYEES OF POLITICAL SUBDIVISIONS 607-18 SUBCHAPTER A. GENERAL PROVISIONS 607-19 Sec. 504.001. DEFINITIONS 607-20 Sec. 504.002. APPLICATION OF GENERAL WORKERS' COMPENSATION 607-21 LAWS; LIMIT ON ACTIONS AND DAMAGES 607-22 Sec. 504.003. ELECTION OF REMEDIES 607-23 (Sections 504.004-504.010 reserved for expansion) 607-24 SUBCHAPTER B. COVERAGE 607-25 Sec. 504.011. METHOD OF PROVIDING COVERAGE 607-26 Sec. 504.012. OPTIONAL COVERAGES 607-27 Sec. 504.013. COVERAGE FOR TRUSTEES AND STAFF OF SELF-INSURANCE 608-1 FUND 608-2 Sec. 504.014. EXCLUSIONS 608-3 Sec. 504.015. MUNICIPAL UTILITIES 608-4 Sec. 504.016. JOINT INSURANCE FUND 608-5 Sec. 504.017. FEDERAL AND STATE FUNDED TRANSPORTATION 608-6 ENTITIES 608-7 Sec. 504.018. NOTICE TO COMMISSION AND EMPLOYEES; EFFECT ON 608-8 COMMON-LAW OR STATUTORY LIABILITY 608-9 (Sections 504.019-504.050 reserved for expansion) 608-10 SUBCHAPTER C. BENEFITS AND OFFSETS 608-11 Sec. 504.051. OFFSET AGAINST PAYMENTS FOR INCAPACITY 608-12 Sec. 504.052. SICK LEAVE BENEFITS 608-13 (Sections 504.053-504.070 reserved for expansion) 608-14 SUBCHAPTER D. ADMINISTRATION 608-15 Sec. 504.071. RULES; FORMS 608-16 Sec. 504.072. APPROPRIATIONS FOR DISBURSEMENTS; ACCOUNT; 608-17 REPORT 608-18 Sec. 504.073. REPRESENTATION IN LEGAL PROCEEDINGS 608-19 CHAPTER 504. WORKERS' COMPENSATION INSURANCE COVERAGE 608-20 FOR EMPLOYEES OF POLITICAL SUBDIVISIONS 608-21 SUBCHAPTER A. GENERAL PROVISIONS 608-22 Sec. 504.001. DEFINITIONS. In this chapter, unless a 608-23 different meaning is plainly required by the context: 608-24 (1) "Commission" means the Texas Workers' Compensation 608-25 Commission. 608-26 (2) "Employee" means: 608-27 (A) a person in the service of a political 609-1 subdivision who has been employed as provided by law; or 609-2 (B) a person for whom optional coverage is 609-3 provided under Section 504.012 or 504.013. 609-4 (3) "Political subdivision" means a county, 609-5 municipality, special district, school district, junior college 609-6 district, housing authority, community center for mental health and 609-7 mental retardation services established under Subchapter A, Chapter 609-8 534, Health and Safety Code, or any other legally constituted 609-9 political subdivision of the state. (V.A.C.S. Art. 8309h, Sec. 1 609-10 (part).) 609-11 Sec. 504.002. APPLICATION OF GENERAL WORKERS' COMPENSATION 609-12 LAWS; LIMIT ON ACTIONS AND DAMAGES. (a) The following provisions 609-13 of Subtitles A and B apply to and are included in this chapter 609-14 except to the extent that they are inconsistent with this chapter: 609-15 (1) Chapter 401, other than Section 401.011(18) 609-16 defining "employer" and Section 401.012 defining "employee"; 609-17 (2) Chapter 402; 609-18 (3) Chapter 403, other than Sections 403.001-403.005; 609-19 (4) Chapter 405; 609-20 (5) Subchapters B and D-G, Chapter 406, other than 609-21 Sections 406.033, 406.034, 406.035, 406.091, and 406.096; 609-22 (6) Chapter 408, other than Sections 408.001(b) and 609-23 (c); 609-24 (7) Chapters 409-417; and 609-25 (8) Chapter 451. 609-26 (b) For the purpose of applying the provisions listed by 609-27 Subsection (a) to this chapter, "employer" means "political 610-1 subdivision." 610-2 (c) Neither this chapter nor Subtitle A authorizes a cause 610-3 of action or damages against a political subdivision or an employee 610-4 of a political subdivision beyond the actions and damages 610-5 authorized by Chapter 101, Civil Practice and Remedies Code. 610-6 (V.A.C.S. Art. 8309h, Secs. 3(a), (b), (c), (e).) 610-7 Sec. 504.003. ELECTION OF REMEDIES. A person may not bring 610-8 an action for wrongful discharge under both Chapter 451 and Chapter 610-9 832, Acts of the 68th Legislature, Regular Session, 1983 (Article 610-10 6252-16a, Vernon's Texas Civil Statutes). (V.A.C.S. Art. 8309h, 610-11 Sec. 3(d).) 610-12 (Sections 504.004-504.010 reserved for expansion) 610-13 SUBCHAPTER B. COVERAGE 610-14 Sec. 504.011. METHOD OF PROVIDING COVERAGE. A political 610-15 subdivision shall extend workers' compensation benefits to its 610-16 employees by: 610-17 (1) becoming a self-insurer; 610-18 (2) providing insurance under a workers' compensation 610-19 insurance policy; or 610-20 (3) entering into an interlocal agreement with other 610-21 political subdivisions providing for self-insurance. (V.A.C.S. 610-22 Art. 8309h, Sec. 2(a).) 610-23 Sec. 504.012. OPTIONAL COVERAGES. (a) A political 610-24 subdivision may cover volunteer fire fighters, police officers, 610-25 emergency medical personnel, and other volunteers that are 610-26 specifically named. A person covered under this subsection is 610-27 entitled to full medical benefits and the minimum compensation 611-1 payments under the law. 611-2 (b) By majority vote of the members of the governing body of 611-3 a political subdivision, the political subdivision may cover as 611-4 employees: 611-5 (1) an elected official; 611-6 (2) persons paid for jury service; or 611-7 (3) persons paid for service in the conduct of an 611-8 election. 611-9 (c) A political subdivision may cover a child who is in a 611-10 program established by the political subdivision to assist children 611-11 in rendering personal services to a charitable or educational 611-12 institution under Section 54.041(b), Family Code. (V.A.C.S. Art. 611-13 8309h, Sec. 1 (part).) 611-14 Sec. 504.013. COVERAGE FOR TRUSTEES AND STAFF OF 611-15 SELF-INSURANCE FUND. By majority vote of the board of trustees of 611-16 a self-insurance fund created under this chapter, the fund may 611-17 cover: 611-18 (1) members of the board of trustees; 611-19 (2) staff of the fund, including persons with whom the 611-20 fund has contracted to perform staff functions; or 611-21 (3) any other self-insurance fund created under 611-22 Chapter 791, Government Code. (V.A.C.S. Art. 8309h, Sec. 1 611-23 (part).) 611-24 Sec. 504.014. EXCLUSIONS. A person is not an employee and 611-25 is not entitled to compensation under this chapter if the person 611-26 is: 611-27 (1) in the service of a political subdivision and is 612-1 paid on a piecework basis or on a basis other than by the hour, 612-2 day, week, month, or year; 612-3 (2) a patient or client of a political subdivision 612-4 involved in vocational training; or 612-5 (3) a prisoner incarcerated by a political 612-6 subdivision. (V.A.C.S. Art. 8309h, Sec. 1 (part).) 612-7 Sec. 504.015. MUNICIPAL UTILITIES. (a) This section 612-8 applies to a municipal utility operated by a board of trustees 612-9 established under Article 1115, Revised Statutes, or a similar law. 612-10 (b) The board of trustees of a utility has the authority of 612-11 the governing body of the municipality under this chapter to: 612-12 (1) adopt a self-insurance program or take out a 612-13 policy of workers' compensation insurance; and 612-14 (2) adopt resolutions, give notices, and do all things 612-15 concerning workers' compensation regarding the utility's employees 612-16 that the governing body of the municipality would be authorized to 612-17 do regarding other municipal employees or groups of employees. 612-18 (c) Funds set aside or spent for the purpose of workers' 612-19 compensation insurance are considered operating expenses of the 612-20 utility. Funds set aside or paid by the board of trustees for 612-21 self-insurance or for premiums on insurance policies shall be paid 612-22 out of utility revenues. A provision for self-insurance or an 612-23 obligation incurred under an insurance policy is not a general 612-24 liability of the municipality but is payable only out of utility 612-25 revenues. (V.A.C.S. Art. 8309h, Sec. 2(d).) 612-26 Sec. 504.016. JOINT INSURANCE FUND. (a) Two or more 612-27 political subdivisions may establish a joint insurance fund as 613-1 provided by this section. 613-2 (b) A political subdivision may pay into the fund its 613-3 proportionate part as due and may contract for the fund, by and 613-4 through its directors, to make the payments due under this chapter 613-5 to employees of the political subdivision. 613-6 (c) The fund may be operated under the rules and bylaws 613-7 established by the participating political subdivisions. 613-8 (d) A joint insurance fund created under this section may 613-9 provide to the Texas Department of Insurance loss data in the same 613-10 manner as an insurance company writing workers' compensation 613-11 insurance. The State Board of Insurance shall use the loss data as 613-12 provided by Subchapter D, Chapter 5, Insurance Code. 613-13 (e) Except as provided by Subsection (d), a joint insurance 613-14 fund created under this section is not considered insurance for 613-15 purposes of any state statute and is not subject to State Board of 613-16 Insurance rules. (V.A.C.S. Art. 8309h, Sec. 4.) 613-17 Sec. 504.017. FEDERAL AND STATE FUNDED TRANSPORTATION 613-18 ENTITIES. An entity is eligible to participate under Section 613-19 504.016; Chapter 1084, Acts of the 70th Legislature, Regular 613-20 Session, 1987 (Article 715c, Vernon's Texas Civil Statutes); or 613-21 Chapter 791, Government Code, if the entity provides transportation 613-22 subsidized in whole or in part by and provided to clients of: 613-23 (1) the Texas Department on Aging; 613-24 (2) the Texas Commission on Alcohol and Drug Abuse; 613-25 (3) the Texas Commission for the Blind; 613-26 (4) the Texas Cancer Council; 613-27 (5) the Texas Commission for the Deaf and Hearing 614-1 Impaired; 614-2 (6) the Texas Department of Housing and Community 614-3 Affairs; 614-4 (7) the Texas Department of Human Services; 614-5 (8) the Texas Department of Mental Health and Mental 614-6 Retardation; 614-7 (9) the Texas Rehabilitation Commission; or 614-8 (10) the Texas Youth Commission. (V.A.C.S. Art. 614-9 8309h, Sec. 9.) 614-10 Sec. 504.018. NOTICE TO COMMISSION AND EMPLOYEES; EFFECT ON 614-11 COMMON-LAW OR STATUTORY LIABILITY. (a) A political subdivision 614-12 shall notify the commission of the method by which its employees 614-13 will receive benefits, the approximate number of employees covered, 614-14 and the estimated amount of payroll. 614-15 (b) A political subdivision shall notify its employees of 614-16 the method by which the employees will receive benefits and the 614-17 effective date of the coverage. Employees of a political 614-18 subdivision are conclusively considered to have accepted the 614-19 compensation provisions instead of common-law or statutory 614-20 liability or cause of action, if any, for injuries received in the 614-21 course of employment or death resulting from injuries received in 614-22 the course of employment. (V.A.C.S. Art. 8309h, Secs. 2(b), (c).) 614-23 (Sections 504.019-504.050 reserved for expansion) 614-24 SUBCHAPTER C. BENEFITS AND OFFSETS 614-25 Sec. 504.051. OFFSET AGAINST PAYMENTS FOR INCAPACITY. (a) 614-26 Benefits provided under this chapter shall be offset: 614-27 (1) to the extent applicable, by any amount for 615-1 incapacity received as provided by: 615-2 (A) Chapter 143, Local Government Code; or 615-3 (B) any other statute in effect on June 19, 615-4 1975, that provides for the payment for incapacity to work because 615-5 of injury on the job that is also covered by this chapter; and 615-6 (2) by any amount paid under Article III, Section 52e, 615-7 of the Texas Constitution, as added in 1967. 615-8 (b) If benefits are offset, the employer may not withhold 615-9 the offset portion of the employee's wages until the time that 615-10 benefits under this chapter are received. 615-11 (c) If an employee's wages are offset, the employee and 615-12 employer shall contribute to the pension fund on the amount of 615-13 money by which the employee's wages were offset. An employee's 615-14 pension benefit may not be reduced as a result of the employee's 615-15 injuries or any compensation received under this chapter unless the 615-16 reduction results from a pension revision passed by a majority vote 615-17 of the affected members of a pension system. (V.A.C.S. Art. 8309h, 615-18 Secs. 5(a) (part), (b).) 615-19 Sec. 504.052. SICK LEAVE BENEFITS. (a) The governing body 615-20 of a political subdivision, by majority vote, may provide that 615-21 while an employee of the political subdivision is receiving 615-22 benefits under this chapter, the employee may elect to receive 615-23 previously accrued sick leave benefits, whether statutory or 615-24 contractual, in an amount equal to the difference between the 615-25 benefits under this chapter and the weekly compensation that the 615-26 employee was receiving before the injury that resulted in the 615-27 claim. 616-1 (b) Sick leave benefits received under Subsection (a) shall 616-2 be deducted proportionately from the employee's sick leave balance. 616-3 (c) This section does not limit the medical benefits to be 616-4 paid to the employee. A sick leave plan may not require an 616-5 employee to take sick leave benefits before receiving benefits 616-6 under this chapter. (V.A.C.S. Art. 8309h, Sec. 5(c) (part).) 616-7 (Sections 504.053-504.070 reserved for expansion) 616-8 SUBCHAPTER D. ADMINISTRATION 616-9 Sec. 504.071. RULES; FORMS. A political subdivision may: 616-10 (1) adopt and publish rules and prescribe and furnish 616-11 forms necessary to effectively administer this chapter; and 616-12 (2) adopt and enforce necessary rules for the 616-13 prevention of accidents and injuries. (V.A.C.S. Art. 8309h, Sec. 616-14 6.) 616-15 Sec. 504.072. APPROPRIATIONS FOR DISBURSEMENTS; ACCOUNT; 616-16 REPORT. (a) A political subdivision may set aside from available 616-17 appropriations, other than itemized salary appropriations, an 616-18 amount sufficient to pay all costs, administrative expenses, 616-19 benefits, insurance, and attorney's fees authorized by this 616-20 chapter. 616-21 (b) The amount set aside under Subsection (a) shall be set 616-22 up in a separate account in the political subdivision's records 616-23 showing the disbursements authorized by this chapter. A statement 616-24 of the amount set aside for disbursements from the account shall be 616-25 included in an annual report made to the political subdivision's 616-26 governing body and its treasurer. (V.A.C.S. Art. 8309h, Sec. 7.) 616-27 Sec. 504.073. REPRESENTATION IN LEGAL PROCEEDINGS. (a) 617-1 Except as provided by Subsection (b), in a proceeding in connection 617-2 with workers' compensation benefits provided by a political 617-3 subdivision as a self-insurer, the political subdivision may be 617-4 represented by: 617-5 (1) the political subdivision's attorney or that 617-6 attorney's assistants; or 617-7 (2) outside counsel. 617-8 (b) In a proceeding involving workers' compensation for 617-9 employees of a municipal utility operated by a board of trustees 617-10 established under Article 1115, Revised Statutes, or a similar law, 617-11 if the board of trustees is a self-insurer, the municipality shall 617-12 be represented by the regularly employed attorney or outside 617-13 counsel of the board of trustees. (V.A.C.S. Art. 8309h, Sec. 8.) 617-14 CHAPTER 505. WORKERS' COMPENSATION INSURANCE COVERAGE 617-15 FOR EMPLOYEES OF TEXAS 617-16 DEPARTMENT OF TRANSPORTATION 617-17 SUBCHAPTER A. GENERAL PROVISIONS 617-18 Sec. 505.001. DEFINITIONS 617-19 Sec. 505.002. APPLICATION OF GENERAL WORKERS' COMPENSATION LAWS; 617-20 LIMIT ON ACTIONS AND DAMAGES 617-21 (Sections 505.003-505.010 reserved for expansion) 617-22 SUBCHAPTER B. COVERAGE 617-23 Sec. 505.011. WORKERS' COMPENSATION COVERAGE FOR DEPARTMENT 617-24 EMPLOYEES 617-25 Sec. 505.012. AUTHORITY TO SELF-INSURE 617-26 Sec. 505.013. INDIVIDUALS EMPLOYED BY SUBCONTRACTORS 617-27 (Sections 505.014-505.050 reserved for expansion) 618-1 SUBCHAPTER C. ADMINISTRATION 618-2 Sec. 505.051. ADMINISTRATION; RULES; FORMS 618-3 Sec. 505.052. PERCENTAGE OF PAYROLL SET ASIDE FOR WORKERS' 618-4 COMPENSATION EXPENSES; ACCOUNT; REPORTS 618-5 Sec. 505.053. CERTIFIED COPIES OF COMMISSION DOCUMENTS 618-6 Sec. 505.054. PREEMPLOYMENT PHYSICAL REQUIRED; EXAMINING 618-7 PHYSICIANS 618-8 Sec. 505.055. REPORTS OF INJURIES 618-9 Sec. 505.056. REQUIRED EXAMINATION OF INJURED EMPLOYEE; REFUSAL 618-10 TO SUBMIT TO EXAMINATION 618-11 Sec. 505.057. REFUSAL TO SUBMIT TO MEDICAL TREATMENT 618-12 Sec. 505.058. POSTPONEMENT OF HEARING 618-13 Sec. 505.059. NOTICE OF APPEAL; NOTICE OF TRIAL COURT JUDGMENT; 618-14 OFFENSE 618-15 CHAPTER 505. WORKERS' COMPENSATION INSURANCE COVERAGE FOR 618-16 EMPLOYEES OF TEXAS DEPARTMENT OF TRANSPORTATION 618-17 SUBCHAPTER A. GENERAL PROVISIONS 618-18 Sec. 505.001. DEFINITIONS. (a) In this chapter: 618-19 (1) "Commission" means the Texas Workers' Compensation 618-20 Commission. 618-21 (2) "Department" means the Texas Department of 618-22 Transportation. 618-23 (3) "Employee" means a person in the service of the 618-24 department under an appointment or express contract of hire and 618-25 whose name appears on the department's payroll. 618-26 (4) "Legal beneficiary" has the meaning assigned to 618-27 that term under Section 401.011. 619-1 (b) A reference in this chapter to an employee who has been 619-2 injured includes the employee's legal beneficiary if the injured 619-3 employee is dead. (V.A.C.S. Art. 6674s, Secs. 2(a)(1), (2), (4), 619-4 (5), (b) (part).) 619-5 Sec. 505.002. APPLICATION OF GENERAL WORKERS' COMPENSATION 619-6 LAWS; LIMIT ON ACTIONS AND DAMAGES. (a) The following provisions 619-7 of Subtitles A and B apply to and are included in this chapter 619-8 except to the extent that they are inconsistent with this chapter: 619-9 (1) Chapter 401, other than Section 401.012, defining 619-10 "employee"; 619-11 (2) Chapter 402; 619-12 (3) Chapter 403, other than Sections 403.001-403.005; 619-13 (4) Chapter 405; 619-14 (5) Subchapters B, D, E, and H, Chapter 406, other 619-15 than Sections 406.071-406.073, and 406.075; 619-16 (6) Chapter 408, other than Sections 408.001(b) and 619-17 (c); 619-18 (7) Chapters 409 and 410; 619-19 (8) Subchapters A and G, Chapter 411, other than 619-20 Sections 411.003 and 411.004; 619-21 (9) Chapters 412-417; and 619-22 (10) Chapter 451. 619-23 (b) For the purpose of applying the provisions listed by 619-24 Subsection (a) to this chapter, "employer" means "department." 619-25 (c) Neither this chapter nor Subtitle A authorizes a cause 619-26 of action or damages against the department or an employee of the 619-27 department beyond the actions and damages authorized by Chapter 620-1 101, Civil Practice and Remedies Code. (V.A.C.S. Art. 6674s, Sec. 620-2 7.) 620-3 (Sections 505.003-505.010 reserved for expansion) 620-4 SUBCHAPTER B. COVERAGE 620-5 Sec. 505.011. WORKERS' COMPENSATION COVERAGE FOR DEPARTMENT 620-6 EMPLOYEES. The department shall pay benefits as provided by this 620-7 chapter to an employee with a compensable injury. (V.A.C.S. Art. 620-8 6674s, Secs. 3 (part), 4.) 620-9 Sec. 505.012. AUTHORITY TO SELF-INSURE. The department may 620-10 self-insure. (V.A.C.S. Art. 6674s, Sec. 3 (part).) 620-11 Sec. 505.013. INDIVIDUALS EMPLOYED BY SUBCONTRACTORS. (a) 620-12 Except as provided by Subsection (b), an individual employed by a 620-13 subcontractor performing work under contract with the department is 620-14 not considered an employee for purposes of this chapter. 620-15 (b) The department shall treat a person leasing a tractor, a 620-16 truck, mowing or cutting machinery, or other equipment to the 620-17 department and using the equipment to perform work under a contract 620-18 with the department: 620-19 (1) as an independent contractor, and the department 620-20 shall require the person, while performing the contract, to provide 620-21 life, health and accident, and disability insurance for the person 620-22 and any individual employed by the person to perform the contract 620-23 in an amount and with coverage approved by the Texas Department of 620-24 Insurance as substantially the same as provided for under workers' 620-25 compensation insurance; 620-26 (2) as an employee of the state for workers' 620-27 compensation purposes, and the department shall require the person 621-1 to provide workers' compensation insurance for each individual 621-2 employed by the person to perform the contract, in which case this 621-3 chapter applies to the person and the individuals employed by the 621-4 person without regard to the number of individuals employed; or 621-5 (3) as an employee of the state for workers' 621-6 compensation purposes, and each individual employed by that person 621-7 to perform the contract as an employee of the state for workers' 621-8 compensation purposes. (V.A.C.S. Art. 6674s, Sec. 12.) 621-9 (Sections 505.014-505.050 reserved for expansion) 621-10 SUBCHAPTER C. ADMINISTRATION 621-11 Sec. 505.051. ADMINISTRATION; RULES; FORMS. (a) The 621-12 department shall administer this chapter. 621-13 (b) Process and procedure under this chapter shall be as 621-14 summary as possible. 621-15 (c) The department may: 621-16 (1) adopt rules and prescribe and furnish forms 621-17 necessary to effectively administer this chapter; and 621-18 (2) adopt and enforce necessary rules for the 621-19 prevention of accidents and injuries. (V.A.C.S. Art. 6674s, Secs. 621-20 3 (part), 10 (part), 14 (part).) 621-21 Sec. 505.052. PERCENTAGE OF PAYROLL SET ASIDE FOR WORKERS' 621-22 COMPENSATION EXPENSES; ACCOUNT; REPORTS. (a) The department may 621-23 set aside from its available appropriations, other than itemized 621-24 appropriations, an amount not exceeding three and one-half percent 621-25 of the department's annual payroll for the payment of 621-26 administrative expenses, charges, benefits, and awards under this 621-27 chapter. 622-1 (b) The amount set aside under Subsection (a) shall be set 622-2 up in a separate account in the department's records. The balance 622-3 of the account at any time may not exceed an amount equal to three 622-4 and one-half percent of the department's annual payroll. 622-5 (c) The account shall show the disbursements authorized by 622-6 this chapter. A statement of the amount set aside for the account 622-7 and the disbursements from the account shall be included in the 622-8 reports made to the governor and the legislature as required by 622-9 law. (V.A.C.S. Art. 6674s, Sec. 18.) 622-10 Sec. 505.053. CERTIFIED COPIES OF COMMISSION DOCUMENTS. (a) 622-11 The commission shall furnish a certified copy of an order, award, 622-12 decision, or paper on file in the commission's office to a person 622-13 entitled to the copy on written request and payment of the fee for 622-14 the copy. The fee shall be the same as that charged for similar 622-15 services by the secretary of state's office. 622-16 (b) The department may obtain certified copies under this 622-17 section without charge. 622-18 (c) A fee or salary may not be paid to a person in the 622-19 commission for making the copies that exceeds the fee charged for 622-20 the copies. (V.A.C.S. Art. 6674s, Sec. 15 (part).) 622-21 Sec. 505.054. PREEMPLOYMENT PHYSICAL REQUIRED; EXAMINING 622-22 PHYSICIANS. (a) An individual may not be certified as an employee 622-23 of the department under this chapter until the individual: 622-24 (1) submits to a physical examination as provided by 622-25 this section; and 622-26 (2) is certified by the examining physician to be 622-27 physically fit to perform the duties and services to which the 623-1 individual is to be assigned. 623-2 (b) Absence of a physical examination under this section 623-3 does not bar recovery. 623-4 (c) The department shall designate a convenient number of 623-5 regularly licensed practicing physicians to make physical 623-6 examinations of individuals employed by or to be employed by the 623-7 department to determine if the individuals are physically fit to be 623-8 classified as department employees. 623-9 (d) A physician designated under Subsection (c) who conducts 623-10 an examination shall file with the department a complete transcript 623-11 of the examination on a form furnished by the department. The 623-12 department shall maintain all reports under this subsection as part 623-13 of the department's permanent records. A report under this 623-14 subsection is admissible in evidence before the commission and in 623-15 an appeal from a final award or ruling of the commission in which 623-16 the individual named in the examination is a claimant for 623-17 compensation under this chapter. A report under this subsection 623-18 that is admitted is prima facie evidence of the facts stated in the 623-19 report. (V.A.C.S. Art. 6674s, Secs. 14 (part), 14a.) 623-20 Sec. 505.055. REPORTS OF INJURIES. (a) A report of an 623-21 injury filed with the commission under Section 409.005, in addition 623-22 to the information required by commission rules, must contain: 623-23 (1) the name, age, sex, and occupation of the injured 623-24 employee; 623-25 (2) the character of work in which the employee was 623-26 engaged at the time of the injury; 623-27 (3) the place, date, and hour of the injury; and 624-1 (4) the nature and cause of the injury. 624-2 (b) In addition to subsequent reports of an injury filed 624-3 with the commission under Section 409.005(e), the department shall 624-4 file a subsequent report on a form obtained for that purpose: 624-5 (1) on the termination of incapacity of the injured 624-6 employee; or 624-7 (2) if the incapacity extends beyond 60 days. 624-8 (V.A.C.S. Art. 6674s, Sec. 13 (part).) 624-9 Sec. 505.056. REQUIRED EXAMINATION OF INJURED EMPLOYEE; 624-10 REFUSAL TO SUBMIT TO EXAMINATION. (a) The commission may require 624-11 an employee who claims to have been injured to submit to an 624-12 examination by the commission or a person acting under the 624-13 commission's authority at a reasonable time and place in this 624-14 state. 624-15 (b) An employee is not entitled to compensation during or 624-16 for a period in which the employee refuses to submit to an 624-17 examination under Subsection (a) or Section 408.004. 624-18 (c) The department may have an injured employee examined at 624-19 a reasonable time and at a place suitable to the employee's 624-20 condition and convenient and accessible to the employee by a 624-21 physician selected by the department. The department shall pay for 624-22 an examination under this subsection and for the employee's 624-23 reasonable expenses incident to the examination. 624-24 (d) On the request of an employee or the department, the 624-25 employee or the department is entitled to have a physician selected 624-26 by the employee or the department present to participate in an 624-27 examination under Subsection (a) or Section 408.004. The employee 625-1 is entitled to have a physician selected by the employee present to 625-2 participate in an examination under Subsection (c). The department 625-3 shall pay the fee set by the commission of a physician selected by 625-4 the employee under this subsection. (V.A.C.S. Art. 6674s, Sec. 10 625-5 (part).) 625-6 Sec. 505.057. REFUSAL TO SUBMIT TO MEDICAL TREATMENT. (a) 625-7 The commission may order or direct the department to reduce or 625-8 suspend the compensation of an injured employee if the employee: 625-9 (1) persists in insanitary or injurious practices that 625-10 tend to imperil or retard the employee's recovery; or 625-11 (2) refuses to submit to medical, surgical, or other 625-12 remedial treatment recognized by the state that is reasonably 625-13 essential to promote the employee's recovery. 625-14 (b) Compensation may not be reduced or suspended under this 625-15 section without reasonable notice to the employee and an 625-16 opportunity to be heard. (V.A.C.S. Art. 6674s, Sec. 10 (part).) 625-17 Sec. 505.058. POSTPONEMENT OF HEARING. If an injured 625-18 employee is receiving benefits under this chapter and the 625-19 department is providing hospitalization or medical treatment to the 625-20 employee, the commission may postpone the hearing of the employee's 625-21 claim. An appeal may not be taken from a commission order under 625-22 this section. (V.A.C.S. Art. 6674s, Sec. 17 (part).) 625-23 Sec. 505.059. NOTICE OF APPEAL; NOTICE OF TRIAL COURT 625-24 JUDGMENT; OFFENSE. (a) In each case appealed from the commission 625-25 to a county or district court: 625-26 (1) the clerk of the court shall mail to the 625-27 commission: 626-1 (A) not later than the 20th day after the date 626-2 the case is filed, a notice containing the style, number, and date 626-3 of filing of the case; and 626-4 (B) not later than the 20th day after the date 626-5 the judgment is rendered, a certified copy of the judgment; and 626-6 (2) the attorney preparing the judgment shall file the 626-7 original and a copy of the judgment with the clerk. 626-8 (b) An attorney's failure to comply with Subsection (a)(2) 626-9 does not excuse the failure of a county or district clerk to comply 626-10 with Subsection (a)(1)(B). 626-11 (c) The duties of a county or district clerk under 626-12 Subsection (a)(1) are part of the clerk's ex officio duties, and 626-13 the clerk is not entitled to a fee for the services. 626-14 (d) A county or district clerk who violates this section 626-15 commits an offense. An offense under this section is a misdemeanor 626-16 punishable by a fine not to exceed $250. (V.A.C.S. Art. 6674s, 626-17 Sec. 19.) 626-18 CHAPTER 506. PAYMENT OF CERTAIN JUDGMENTS 626-19 Sec. 506.001. LATE PAYMENT OF JUDGMENT BY THE STATE 626-20 CHAPTER 506. PAYMENT OF CERTAIN JUDGMENTS 626-21 Sec. 506.001. LATE PAYMENT OF JUDGMENT BY THE STATE. (a) 626-22 In a workers' compensation case in which a claimant is awarded a 626-23 judgment against the state or a political subdivision of the state 626-24 under Chapter 501, 502, 503, 504, or 505, the state or political 626-25 subdivision shall comply with the judgment not later than the 30th 626-26 day after the judgment is entered. 626-27 (b) If the state or a political subdivision of the state 627-1 fails or refuses to comply with a judgment as provided under 627-2 Subsection (a) and the claimant secures a mandamus order against 627-3 the state or political subdivision to force compliance with the 627-4 judgment, the claimant is also entitled to an award of: 627-5 (1) a penalty of 12 percent of the amount of 627-6 compensation recovered in the judgment; and 627-7 (2) reasonable attorney's fees for prosecution of the 627-8 mandamus action. (V.A.C.S. Art. 8309i.) 627-9 SECTION 2. CONFORMING AMENDMENT. Subtitle E, Title 4, 627-10 Government Code, is amended to conform to the Commission on Human 627-11 Rights Act (Article 5221k, Vernon's Texas Civil Statutes), by 627-12 adding Chapter 461 to read as follows: 627-13 CHAPTER 461. COMMISSION ON HUMAN RIGHTS 627-14 SUBCHAPTER A. GENERAL PROVISIONS; SUNSET 627-15 Sec. 461.001. DEFINITIONS 627-16 Sec. 461.002. APPLICATION OF SUNSET ACT 627-17 (Sections 461.003-461.050 reserved for expansion 627-18 SUBCHAPTER B. ORGANIZATION AND ADMINISTRATION 627-19 Sec. 461.051. MEMBERSHIP 627-20 Sec. 461.052. ELIGIBILITY 627-21 Sec. 461.053. TERM OF OFFICE 627-22 Sec. 461.054. REMOVAL OF MEMBER 627-23 Sec. 461.055. REIMBURSEMENT OF EXPENSES 627-24 Sec. 461.056. CHAIRMAN 627-25 Sec. 461.057. GENERAL ADMINISTRATIVE POWERS 627-26 Sec. 461.058. PERSONNEL MATTERS 627-27 Sec. 461.059. EQUAL EMPLOYMENT OPPORTUNITY POLICY 628-1 STATEMENT 628-2 Sec. 461.060. PUBLIC INTEREST INFORMATION AND COMPLAINTS 628-3 Sec. 461.061. PLAN FOR REASONABLE ACCESS TO COMMISSION 628-4 PROGRAMS 628-5 Sec. 461.062. ANNUAL REPORT 628-6 (Sections 461.063-461.100 reserved for expansion 628-7 SUBCHAPTER C. OFFENSE; PENALTY 628-8 Sec. 461.101. CRIMINAL OFFENSE OF INTERFERENCE; PENALTY 628-9 CHAPTER 461. COMMISSION ON HUMAN RIGHTS 628-10 SUBCHAPTER A. GENERAL PROVISIONS; SUNSET 628-11 Sec. 461.001. DEFINITIONS. In this chapter: 628-12 (1) "Commission" means the Commission on Human Rights. 628-13 (2) "Commissioner" means a member of the commission. 628-14 (V.A.C.S. Art. 5221k, Secs. 2.01(2), (3).) 628-15 Sec. 461.002. APPLICATION OF SUNSET ACT. The Commission on 628-16 Human Rights is subject to Chapter 325 (Texas Sunset Act). Unless 628-17 continued in existence as provided by that chapter, the commission 628-18 is abolished September 1, 1999. (V.A.C.S. Art. 5221k, Sec. 3.03.) 628-19 (Sections 461.003-461.050 reserved for expansion 628-20 SUBCHAPTER B. ORGANIZATION AND ADMINISTRATION 628-21 Sec. 461.051. MEMBERSHIP. (a) The commission consists of 628-22 six members. One member of the commission shall be a 628-23 representative of industry, one member shall be a representative of 628-24 labor, and four members shall be representatives of the public. 628-25 (b) The governor shall appoint the commissioners with the 628-26 advice and consent of the senate. In making the appointments, the 628-27 governor shall strive to achieve representation on the commission 629-1 that is diverse with respect to disability, religion, age, economic 629-2 status, sex, race, and ethnicity. (V.A.C.S. Art. 5221k, Sec. 629-3 3.01(a) (part).) 629-4 Sec. 461.052. ELIGIBILITY. (a) A person is not eligible 629-5 for appointment as a public member of the commission if the person 629-6 or the person's spouse: 629-7 (1) is employed by or participates in the management 629-8 of a business entity or other organization receiving funds from the 629-9 commission; 629-10 (2) owns or controls, directly or indirectly, more 629-11 than a 10 percent interest in a business entity or other 629-12 organization receiving funds from the commission; or 629-13 (3) uses or receives a substantial amount of tangible 629-14 goods, services, or funds from the commission, other than 629-15 compensation or reimbursement authorized by law for commission 629-16 membership, attendance, or expenses. 629-17 (b) A person may not serve as a member of the commission or 629-18 act as general counsel to the commission if the person is required 629-19 to register as a lobbyist under Chapter 305 because of the person's 629-20 activities for compensation on behalf of a profession related to 629-21 the operation of the commission. (V.A.C.S. Art. 5221k, Secs. 629-22 3.01(e), (f).) 629-23 Sec. 461.053. TERM OF OFFICE. The term of office of each 629-24 commissioner is six years. (V.A.C.S. Art. 5221k, Sec. 3.01(b) 629-25 (part).) 629-26 Sec. 461.054. REMOVAL OF MEMBER. (a) It is a ground for 629-27 removal from the commission if a member: 630-1 (1) does not have at the time of appointment the 630-2 qualifications required by Section 461.051 or 461.052(a); 630-3 (2) does not maintain during service on the commission 630-4 the qualifications required by Section 461.051 or 461.052(a); 630-5 (3) violates a prohibition established by Section 630-6 461.052(b); 630-7 (4) cannot discharge the member's duties for a 630-8 substantial part of the term for which the member is appointed 630-9 because of illness or disability; or 630-10 (5) is absent for more than half of the regularly 630-11 scheduled commission meetings that the member is eligible to attend 630-12 during a calendar year unless the absence is excused by majority 630-13 vote of the commission. 630-14 (b) The validity of an act of the commission is not affected 630-15 by the fact that it is taken when a ground for removal of a 630-16 commission member exists. 630-17 (c) If the executive director of the commission has 630-18 knowledge that a potential ground for removal exists, the executive 630-19 director shall notify the presiding officer of the commission of 630-20 the ground. The presiding officer shall then notify the governor 630-21 that a potential ground for removal exists. (V.A.C.S. Art. 5221k, 630-22 Sec. 3.011.) 630-23 Sec. 461.055. REIMBURSEMENT OF EXPENSES. A commissioner is 630-24 entitled to reimbursement of actual and necessary expenses incurred 630-25 in the performance of official duties. (V.A.C.S. Art. 5221k, Sec. 630-26 3.01(d).) 630-27 Sec. 461.056. CHAIRMAN. The governor shall designate one of 631-1 the commissioners to serve as the chairman of the commission. 631-2 (V.A.C.S. Art. 5221k, Sec. 3.01(a) (part).) 631-3 Sec. 461.057. GENERAL ADMINISTRATIVE POWERS. The commission 631-4 may: 631-5 (1) maintain an office in the city of Austin; 631-6 (2) meet and exercise its powers at any place in the 631-7 state; 631-8 (3) by rule establish panels of not less than a quorum 631-9 to exercise its powers; 631-10 (4) employ an executive director and authorize the 631-11 employment of other staff members, representatives, or agents; 631-12 (5) set the compensation of the executive director and 631-13 other staff members, representatives, and agents; and 631-14 (6) accept public grants or private gifts, bequests, 631-15 or other payments. (V.A.C.S. Art. 5221k, Secs. 3.01(c) (part), 631-16 3.02(a)(1), (2), (3), (5).) 631-17 Sec. 461.058. PERSONNEL MATTERS. (a) The executive 631-18 director or the person designated by the executive director shall 631-19 develop an intraagency career ladder program. The program shall 631-20 require intraagency posting of all nonentry level positions 631-21 concurrently with any public posting. 631-22 (b) The executive director or the person designated by the 631-23 executive director shall develop a system of annual performance 631-24 evaluations. All merit pay for commission employees must be based 631-25 on the system established under this subsection. 631-26 (c) The commission shall provide to its members and 631-27 employees, as often as necessary, information regarding their 632-1 qualifications for office or employment under this chapter and 632-2 their responsibilities under applicable laws relating to standards 632-3 of conduct for state officers or employees. 632-4 (d) The commission shall develop and implement policies that 632-5 clearly define the responsibilities of the commission and the staff 632-6 of the commission. (V.A.C.S. Art. 5221k, Secs. 3.04(a), (b), (c), 632-7 (g).) 632-8 Sec. 461.059. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT. 632-9 (a) The executive director or the person designated by the 632-10 executive director shall prepare and maintain a written policy 632-11 statement to assure implementation of a program of equal employment 632-12 opportunity under which all personnel transactions are made without 632-13 regard to race, color, disability, sex, religion, age, or national 632-14 origin. 632-15 (b) The policy statement required under this section must 632-16 include: 632-17 (1) personnel policies, including policies related to 632-18 recruitment, evaluation, selection, appointment, training, and 632-19 promotion of personnel; 632-20 (2) a comprehensive analysis of the commission work 632-21 force that meets federal and state guidelines; 632-22 (3) procedures by which a determination can be made of 632-23 significant underutilization in the commission work force of all 632-24 persons for whom federal or state guidelines encourage a more 632-25 equitable balance; and 632-26 (4) reasonable methods to appropriately address those 632-27 areas of significant underutilization. 633-1 (c) A policy statement under this section must cover an 633-2 annual period, be updated not less than annually, and be filed with 633-3 the governor's office. 633-4 (d) The governor's office shall make a biennial report to 633-5 the legislature from the information received under this section. 633-6 The report may be made separately or as a part of other biennial 633-7 reports made to the legislature. (V.A.C.S. Art. 5221k, 633-8 Secs. 3.04(d), (e), (f).) 633-9 Sec. 461.060. PUBLIC INTEREST INFORMATION AND COMPLAINTS. 633-10 (a) The commission shall prepare information of public interest 633-11 describing the functions of the commission and the commission's 633-12 procedures by which complaints are filed with and resolved by the 633-13 commission. The commission shall make the information available to 633-14 the public and appropriate state agencies. 633-15 (b) If a written complaint is filed with the commission that 633-16 the commission has authority to resolve, the commission, at least 633-17 quarterly and until final disposition of the complaint, shall 633-18 notify the parties to the complaint of the status of the complaint 633-19 unless the notice would jeopardize an undercover investigation by 633-20 another agency of the state, federal, or local government. 633-21 (c) The commission shall develop and implement policies that 633-22 provide the public with a reasonable opportunity to appear before 633-23 the commission. (V.A.C.S. Art. 5221k, Sec. 3.05.) 633-24 Sec. 461.061. PLAN FOR REASONABLE ACCESS TO COMMISSION 633-25 PROGRAMS. The commission shall prepare and maintain a written plan 633-26 that describes how a person with a disability or a person who does 633-27 not speak English can be provided reasonable access to the 634-1 commission's programs. (V.A.C.S. Art. 5221k, Sec. 3.02(c).) 634-2 Sec. 461.062. ANNUAL REPORT. (a) The commission shall file 634-3 annually with the governor and the presiding officer of each house 634-4 of the legislature a complete and detailed written report 634-5 accounting for all funds received and disbursed by the commission 634-6 during the preceding fiscal year. 634-7 (b) The report must be in the form and reported in the time 634-8 provided by the General Appropriations Act. (V.A.C.S. Art. 5221k, 634-9 Sec. 3.02(b).) 634-10 (Sections 461.063-461.100 reserved for expansion 634-11 SUBCHAPTER C. OFFENSE; PENALTY 634-12 Sec. 461.101. CRIMINAL OFFENSE OF INTERFERENCE; PENALTY. 634-13 (a) A person commits an offense if the person wilfully resists, 634-14 prevents, impedes, or interferes with the performance of a duty 634-15 under or the exercise of a power provided by this chapter. 634-16 (b) An offense under this section is a Class B misdemeanor. 634-17 (V.A.C.S. Art. 5221k, Sec. 9.02.) 634-18 SECTION 3. CONFORMING AMENDMENT. Subtitle G, Title 2, 634-19 Health and Safety Code, is amended to conform to Chapter 788, Acts 634-20 of the 62nd Legislature, Regular Session, 1971 (Article 5221e-1, 634-21 Vernon's Texas Civil Statutes), by adding Chapter 146 to read as 634-22 follows: 634-23 CHAPTER 146. MIGRANT LABOR HOUSING FACILITIES 634-24 Sec. 146.001. DEFINITIONS 634-25 Sec. 146.002. LICENSE REQUIRED 634-26 Sec. 146.003. LICENSE APPLICATION; APPLICATION INSPECTION 634-27 Sec. 146.004. INSPECTION 635-1 Sec. 146.005. FAILURE TO MEET STANDARDS; REINSPECTION 635-2 Sec. 146.006. LICENSE ISSUANCE; TERM; NOT TRANSFERABLE 635-3 Sec. 146.007. LICENSE POSTING 635-4 Sec. 146.008. INSPECTION OF FACILITIES 635-5 Sec. 146.009. FEE 635-6 Sec. 146.010. SUSPENSION OR REVOCATION OF LICENSE 635-7 Sec. 146.011. ENFORCEMENT; ADOPTION OF RULES 635-8 Sec. 146.012. INJUNCTIVE RELIEF 635-9 Sec. 146.013. CIVIL PENALTY 635-10 CHAPTER 146. MIGRANT LABOR HOUSING FACILITIES 635-11 Sec. 146.001. DEFINITIONS. In this chapter: 635-12 (1) "Facility" means a structure, trailer, or vehicle, 635-13 or two or more contiguous or grouped structures, trailers, or 635-14 vehicles, together with the land appurtenant. 635-15 (2) "Migrant agricultural worker" means an individual 635-16 who: 635-17 (A) is working or available for work seasonally 635-18 or temporarily in primarily an agricultural or agriculturally 635-19 related industry; and 635-20 (B) moves one or more times from one place to 635-21 another to perform seasonal or temporary employment or to be 635-22 available for seasonal or temporary employment. 635-23 (3) "Migrant labor housing facility" means a facility 635-24 that is established, operated, or used for more than three days as 635-25 living quarters for two or more seasonal, temporary, or migrant 635-26 families or three or more seasonal, temporary, or migrant workers, 635-27 whether rent is paid or reserved in connection with the use of the 636-1 facility. 636-2 (4) "Person" means an individual, association, 636-3 partnership, corporation, or political subdivision. (V.A.C.S. Art. 636-4 5221e-1, Sec. 1 (part).) 636-5 Sec. 146.002. LICENSE REQUIRED. A person may not establish, 636-6 maintain, or operate a migrant labor housing facility without 636-7 obtaining a license from the department. (V.A.C.S. Art. 5221e-1, 636-8 Sec. 2 (part).) 636-9 Sec. 146.003. LICENSE APPLICATION; APPLICATION INSPECTION. 636-10 (a) To receive a migrant labor housing facility license, a person 636-11 must apply to the department according to rules adopted by the 636-12 board and on a form prescribed by the board. 636-13 (b) The application must be made not later than the 45th day 636-14 before the intended date of operation of the facility. 636-15 (c) The application must state: 636-16 (1) the location and ownership of the migrant labor 636-17 housing facility; 636-18 (2) the approximate number of persons to be 636-19 accommodated; 636-20 (3) the probable periods of use of the facility; and 636-21 (4) any other information required by the board. 636-22 (d) The application must be accompanied by the license fee. 636-23 (V.A.C.S. Art. 5221e-1, Sec. 3 (part).) 636-24 Sec. 146.004. INSPECTION. The department shall inspect the 636-25 migrant labor housing facility not later than the 30th day after 636-26 the date of receipt of a complete application and the fee. 636-27 (V.A.C.S. Art. 5221e-1, Sec. 4(a).) 637-1 Sec. 146.005. FAILURE TO MEET STANDARDS; REINSPECTION. (a) 637-2 If a migrant labor housing facility for which a license application 637-3 is made does not meet the reasonable minimum standards of 637-4 construction, sanitation, equipment, and operation required by 637-5 rules adopted under this chapter, the department at the time of 637-6 inspection shall give the license applicant the reasons that the 637-7 facility does not meet those standards. The applicant may request 637-8 the department to reinspect the facility not later than the 60th 637-9 day after the date on which the reasons are given. 637-10 (b) If a facility does not meet the standards on 637-11 reinspection, the applicant must submit a new license application 637-12 as provided by Section 146.003. (V.A.C.S. Art. 5221e-1, 637-13 Sec. 4(c).) 637-14 Sec. 146.006. LICENSE ISSUANCE; TERM; NOT TRANSFERABLE. (a) 637-15 The department shall issue a license to establish, maintain, and 637-16 operate a migrant labor housing facility if the facility meets the 637-17 standards of construction, sanitation, equipment, and operation 637-18 required by rules adopted under this chapter. 637-19 (b) The license expires on the first anniversary of the date 637-20 of issuance. 637-21 (c) The license issued under this chapter is not 637-22 transferable. (V.A.C.S. Art. 5221e-1, Sec. 4(b).) 637-23 Sec. 146.007. LICENSE POSTING. A person who holds a license 637-24 issued under this chapter shall post the license in the migrant 637-25 labor housing facility at all times during the maintenance or 637-26 operation of the facility. (V.A.C.S. Art. 5221e-1, Sec. 2 (part).) 637-27 Sec. 146.008. INSPECTION OF FACILITIES. An authorized 638-1 representative of the department, after giving or making a 638-2 reasonable attempt to give notice to the operator of a migrant 638-3 labor housing facility, may enter and inspect the facility during 638-4 reasonable hours and investigate conditions, practices, or other 638-5 matters as necessary or appropriate to determine whether a person 638-6 has violated this chapter or a rule adopted under this chapter. 638-7 (V.A.C.S. Art. 5221e-1, Sec. 8.) 638-8 Sec. 146.009. FEE. The board shall set the license fee in 638-9 an amount not to exceed $100. (V.A.C.S. Art. 5221e-1, Secs. 3 638-10 (part), 6 (part).) 638-11 Sec. 146.010. SUSPENSION OR REVOCATION OF LICENSE. (a) The 638-12 department may suspend or revoke a license for a violation of this 638-13 chapter or a rule adopted under this chapter. 638-14 (b) The Administrative Procedure and Texas Register Act 638-15 (Article 6252-13a, Vernon's Texas Civil Statutes) and department 638-16 rules for a contested case hearing govern the procedures for the 638-17 suspension or revocation of a license issued under this chapter. 638-18 (c) A hearing conducted under this section must be held in 638-19 the county in which the affected migrant labor housing facility is 638-20 located. (V.A.C.S. Art. 5221e-1, Sec. 5.) 638-21 Sec. 146.011. ENFORCEMENT; ADOPTION OF RULES. (a) The 638-22 department shall enforce this chapter. 638-23 (b) The board shall adopt rules to protect the health and 638-24 safety of persons living in migrant labor housing facilities. 638-25 (c) The board by rule shall adopt standards for living 638-26 quarters at a migrant labor housing facility, including standards 638-27 relating to: 639-1 (1) construction of the facility; 639-2 (2) sanitary conditions; 639-3 (3) water supply; 639-4 (4) toilets; 639-5 (5) sewage disposal; 639-6 (6) storage, collection, and disposal of refuse; 639-7 (7) light and air; 639-8 (8) safety requirements; 639-9 (9) fire protection; 639-10 (10) equipment; 639-11 (11) maintenance and operation of the facility; and 639-12 (12) any other matter appropriate or necessary for the 639-13 protection of the health and safety of the occupants. 639-14 (d) An employee or occupant of a migrant labor housing 639-15 facility who uses the sanitary or other facilities furnished for 639-16 the convenience of employees or occupants shall comply with the 639-17 rules adopted under Subsection (b) or (c). 639-18 (e) The board by rule shall adopt minimum standards for 639-19 issuing, revoking, or suspending a license issued under this 639-20 chapter. (V.A.C.S. Art. 5221e-1, Secs. 6 (part), 7, and 10.) 639-21 Sec. 146.012. INJUNCTIVE RELIEF. (a) A district court for 639-22 good cause shown in a hearing and on application by the department 639-23 may grant a temporary or permanent injunction to prohibit a person 639-24 from violating this chapter or a rule adopted under this chapter. 639-25 (b) A person subject to a temporary or permanent injunction 639-26 under Subsection (a) may appeal to the supreme court as in other 639-27 cases. (V.A.C.S. Art. 5221e-1, Sec. 9(b).) 640-1 Sec. 146.013. CIVIL PENALTY. (a) A person who violates 640-2 this chapter or a rule adopted under this chapter is subject to a 640-3 civil penalty of $200 for each day that the violation occurs. 640-4 (b) The county attorney for the county in which the 640-5 violation occurred, or the attorney general, at the request of the 640-6 department, shall bring an action in the name of the state to 640-7 collect the penalty. (V.A.C.S. Art. 5221e-1, Sec. 9(a).) 640-8 SECTION 4. CONFORMING AMENDMENT. Subtitle C, Title 5, Local 640-9 Government Code, is amended to conform to The Fire and Police 640-10 Employee Relations Act (Article 5154c-1, Vernon's Texas Civil 640-11 Statutes) by adding Chapter 174 to read as follows: 640-12 CHAPTER 174. FIRE AND POLICE EMPLOYEE RELATIONS 640-13 SUBCHAPTER A. GENERAL PROVISIONS 640-14 Sec. 174.001. SHORT TITLE 640-15 Sec. 174.002. POLICY 640-16 Sec. 174.003. DEFINITIONS 640-17 Sec. 174.004. LIBERAL CONSTRUCTION 640-18 Sec. 174.005. PREEMPTION OF OTHER LAW 640-19 Sec. 174.006. EFFECT ON CIVIL SERVICE PROVISIONS 640-20 Sec. 174.007. EFFECT ON EXISTING BENEFITS 640-21 (Sections 174.008-174.020 reserved for expansion 640-22 SUBCHAPTER B. CONDITIONS OF EMPLOYMENT 640-23 AND RIGHT TO ORGANIZE 640-24 Sec. 174.021. PREVAILING WAGE AND WORKING CONDITIONS 640-25 REQUIRED 640-26 Sec. 174.022. CERTAIN PUBLIC EMPLOYERS CONSIDERED TO 640-27 BE IN COMPLIANCE 641-1 Sec. 174.023. RIGHT TO ORGANIZE AND BARGAIN COLLECTIVELY 641-2 (Sections 174.024-174.050 reserved for expansion 641-3 SUBCHAPTER C. ADOPTION AND REPEAL OF 641-4 COLLECTIVE BARGAINING PROVISIONS 641-5 Sec. 174.051. ADOPTION ELECTION 641-6 Sec. 174.052. EFFECT OF SUCCESSFUL ADOPTION ELECTION 641-7 Sec. 174.053. REPEAL ELECTION 641-8 Sec. 174.054. EFFECT OF SUCCESSFUL REPEAL ELECTION 641-9 Sec. 174.055. FREQUENCY OF ELECTIONS 641-10 (Sections 174.056-174.100 reserved for expansion 641-11 SUBCHAPTER D. COLLECTIVE BARGAINING 641-12 Sec. 174.101. RECOGNITION OF BARGAINING AGENT FOR 641-13 FIRE FIGHTERS 641-14 Sec. 174.102. RECOGNITION OF BARGAINING AGENT FOR 641-15 POLICE OFFICERS 641-16 Sec. 174.103. SINGLE BARGAINING AGENT FOR FIRE FIGHTERS 641-17 AND POLICE OFFICERS 641-18 Sec. 174.104. QUESTION REGARDING REPRESENTATION 641-19 Sec. 174.105. DUTY TO BARGAIN COLLECTIVELY 641-20 IN GOOD FAITH 641-21 Sec. 174.106. DESIGNATION OF NEGOTIATOR 641-22 Sec. 174.107. NOTICE TO PUBLIC EMPLOYER REGARDING 641-23 CERTAIN ISSUES 641-24 Sec. 174.108. OPEN DELIBERATIONS 641-25 Sec. 174.109. EFFECT OF AGREEMENT 641-26 (Sections 174.110-174.150 reserved for expansion 641-27 SUBCHAPTER E. MEDIATION; ARBITRATION 642-1 Sec. 174.151. MEDIATION 642-2 Sec. 174.152. IMPASSE 642-3 Sec. 174.153. REQUEST FOR ARBITRATION; AGREEMENT 642-4 TO ARBITRATE 642-5 Sec. 174.154. ARBITRATION BOARD 642-6 Sec. 174.155. ARBITRATION HEARING 642-7 Sec. 174.156. SCOPE OF ARBITRATION 642-8 Sec. 174.157. EVIDENCE; OATH; SUBPOENA 642-9 Sec. 174.158. ARBITRATION AWARD 642-10 Sec. 174.159. EFFECT OF AWARD 642-11 Sec. 174.160. AMENDMENT OF AWARD 642-12 Sec. 174.161. BEGINNING OF NEW FISCAL YEAR 642-13 Sec. 174.162. EXTENSION OF PERIOD 642-14 Sec. 174.163. COMPULSORY ARBITRATION NOT REQUIRED 642-15 Sec. 174.164. COMPENSATION OF ARBITRATORS; EXPENSES 642-16 OF ARBITRATION 642-17 (Sections 174.165-174.200 reserved for expansion 642-18 SUBCHAPTER F. STRIKES; LOCKOUTS 642-19 Sec. 174.201. DEFINITION 642-20 Sec. 174.202. STRIKES, SLOWDOWNS, AND LOCKOUTS PROHIBITED 642-21 Sec. 174.203. LOCKOUT BY MUNICIPALITY; INJUNCTION; PENALTY 642-22 Sec. 174.204. STRIKE; PENALTY AGAINST ASSOCIATION 642-23 Sec. 174.205. STRIKE; PENALTY AGAINST INDIVIDUAL 642-24 (Sections 174.206-174.250 reserved for expansion 642-25 SUBCHAPTER G. JUDICIAL ENFORCEMENT AND REVIEW 642-26 Sec. 174.251. JUDICIAL ENFORCEMENT GENERALLY 642-27 Sec. 174.252. JUDICIAL ENFORCEMENT WHEN PUBLIC EMPLOYER 643-1 DECLINES ARBITRATION 643-2 Sec. 174.253. JUDICIAL REVIEW OF ARBITRATION AWARD 643-3 CHAPTER 174. FIRE AND POLICE EMPLOYEE RELATIONS 643-4 SUBCHAPTER A. GENERAL PROVISIONS 643-5 Sec. 174.001. SHORT TITLE. This chapter may be cited as The 643-6 Fire and Police Employee Relations Act. (V.A.C.S. Art. 5154c-1, 643-7 Sec. 1.) 643-8 Sec. 174.002. POLICY. (a) The policy of this state is that 643-9 a political subdivision shall provide its fire fighters and police 643-10 officers with compensation and other conditions of employment that 643-11 are substantially the same as compensation and conditions of 643-12 employment prevailing in comparable private sector employment. 643-13 (b) The policy of this state is that fire fighters and 643-14 police officers, like employees in the private sector, should have 643-15 the right to organize for collective bargaining, as collective 643-16 bargaining is a fair and practical method for determining 643-17 compensation and other conditions of employment. Denying fire 643-18 fighters and police officers the right to organize and bargain 643-19 collectively would lead to strife and unrest, consequently injuring 643-20 the health, safety, and welfare of the public. 643-21 (c) The health, safety, and welfare of the public demands 643-22 that strikes, lockouts, and work stoppages and slowdowns of fire 643-23 fighters and police officers be prohibited, and therefore it is the 643-24 state's duty to make available reasonable alternatives to strikes 643-25 by fire fighters and police officers. 643-26 (d) Because of the essential and emergency nature of the 643-27 public service performed by fire fighters and police officers, a 644-1 reasonable alternative to strikes is a system of arbitration 644-2 conducted under adequate legislative standards. Another reasonable 644-3 alternative, if the parties fail to agree to arbitrate, is judicial 644-4 enforcement of the requirements of this chapter regarding 644-5 compensation and conditions of employment applicable to fire 644-6 fighters and police officers. 644-7 (e) With the right to strike prohibited, to maintain the 644-8 high morale of fire fighters and police officers and the efficient 644-9 operation of the departments in which they serve, alternative 644-10 procedures must be expeditious, effective, and binding. (V.A.C.S. 644-11 Art. 5154c-1, Secs. 2(a), (b)(1), (2), (3) (part).) 644-12 Sec. 174.003. DEFINITIONS. In this chapter: 644-13 (1) "Association" means any type of organization, 644-14 including an agency or employee representation committee or plan, 644-15 in which fire fighters, police officers, or both, participate and 644-16 that exists, in whole or in part, to deal with one or more public 644-17 or private employers concerning grievances, labor disputes, or 644-18 conditions of employment affecting fire fighters, police officers, 644-19 or both. 644-20 (2) "Fire fighter" means a permanent, paid employee of 644-21 the fire department of a political subdivision. The term does not 644-22 include: 644-23 (A) the chief of the department; or 644-24 (B) a volunteer fire fighter. 644-25 (3) "Police officer" means a paid employee who is 644-26 sworn, certified, and full-time, and who regularly serves in a 644-27 professional law enforcement capacity in the police department of a 645-1 political subdivision. The term does not include the chief of the 645-2 department. 645-3 (4) "Political subdivision" includes a municipality. 645-4 (5) "Public employer" means the official or group of 645-5 officials of a political subdivision whose duty is to establish the 645-6 compensation, hours, and other conditions of employment of fire 645-7 fighters, police officers, or both, and may include the mayor, city 645-8 manager, town manager, town administrator, city council, director 645-9 of personnel, personnel board, commissioners, or another official 645-10 or combination of those persons. (New; V.A.C.S. Art. 5154c-1, 645-11 Secs. 3(1), (2), (3), (4).) 645-12 Sec. 174.004. LIBERAL CONSTRUCTION. This chapter shall be 645-13 liberally construed. (V.A.C.S. Art. 5154c-1, Sec. 2(b)(3) (part).) 645-14 Sec. 174.005. PREEMPTION OF OTHER LAW. This chapter 645-15 preempts all contrary local ordinances, executive orders, 645-16 legislation, or rules adopted by the state or by a political 645-17 subdivision or agent of the state, including a personnel board, 645-18 civil service commission, or home-rule municipality. (V.A.C.S. 645-19 Art. 5154c-1, Sec. 20(a) (part).) 645-20 Sec. 174.006. EFFECT ON CIVIL SERVICE PROVISIONS. (a) A 645-21 state or local civil service provision prevails over a collective 645-22 bargaining contract under this chapter unless the collective 645-23 bargaining contract specifically provides otherwise. 645-24 (b) A civil service provision may not be repealed or 645-25 modified by arbitration or judicial action but may be interpreted 645-26 or enforced by an arbitrator or court. 645-27 (c) This chapter does not limit the authority of a municipal 646-1 fire chief or police chief under Chapter 143 except as modified by 646-2 the parties through collective bargaining. (V.A.C.S. Art. 5154c-1, 646-3 Secs. 20(b), (d).) 646-4 Sec. 174.007. EFFECT ON EXISTING BENEFITS. This chapter may 646-5 not be construed as repealing any existing benefit provided by 646-6 statute or ordinance concerning fire fighters' or police officers' 646-7 compensation, pensions, retirement plans, hours of work, conditions 646-8 of employment, or other emoluments. This chapter is in addition to 646-9 the benefits provided by existing statutes and ordinances. 646-10 (V.A.C.S. Art. 5154c-1, Sec. 20(c).) 646-11 (Sections 174.008-174.020 reserved for expansion 646-12 SUBCHAPTER B. CONDITIONS OF EMPLOYMENT 646-13 AND RIGHT TO ORGANIZE 646-14 Sec. 174.021. PREVAILING WAGE AND WORKING CONDITIONS 646-15 REQUIRED. A political subdivision that employs fire fighters, 646-16 police officers, or both, shall provide those employees with 646-17 compensation and other conditions of employment that are: 646-18 (1) substantially equal to compensation and other 646-19 conditions of employment that prevail in comparable employment in 646-20 the private sector; and 646-21 (2) based on prevailing private sector compensation 646-22 and conditions of employment in the labor market area in other jobs 646-23 that require the same or similar skills, ability, and training and 646-24 may be performed under the same or similar conditions. (V.A.C.S. 646-25 Art. 5154c-1, Sec. 4.) 646-26 Sec. 174.022. CERTAIN PUBLIC EMPLOYERS CONSIDERED TO BE IN 646-27 COMPLIANCE. (a) A public employer that has reached an agreement 647-1 with an association on compensation or other conditions of 647-2 employment as provided by this chapter is considered to be in 647-3 compliance with the requirements of Section 174.021 as to the 647-4 conditions of employment for the duration of the agreement. 647-5 (b) If an arbitration award is rendered as provided by 647-6 Subchapter E, the public employer involved is considered to be in 647-7 compliance with the requirements of Section 174.021 as to the 647-8 conditions of employment provided by the award for the duration of 647-9 the collective bargaining period to which the award applies. 647-10 (V.A.C.S. Art. 5154c-1, Secs. 8 (part), 13(b).) 647-11 Sec. 174.023. RIGHT TO ORGANIZE AND BARGAIN COLLECTIVELY. 647-12 On adoption of this chapter or the law codified by this chapter by 647-13 a political subdivision to which this chapter applies, fire 647-14 fighters, police officers, or both are entitled to organize and 647-15 bargain collectively with their public employer regarding 647-16 compensation, hours, and other conditions of employment. (V.A.C.S. 647-17 Art. 5154c-1, Sec. 5(a).) 647-18 (Sections 174.024-174.050 reserved for expansion 647-19 SUBCHAPTER C. ADOPTION AND REPEAL OF 647-20 COLLECTIVE BARGAINING PROVISIONS 647-21 Sec. 174.051. ADOPTION ELECTION. (a) The governing body of 647-22 a political subdivision to which this chapter applies shall order 647-23 an election for the adoption of this chapter on receiving a 647-24 petition signed by qualified voters of the political subdivision in 647-25 a number equal to or greater than the lesser of: 647-26 (1) 20,000; or 647-27 (2) five percent of the number of qualified voters 648-1 voting in the political subdivision in the preceding general 648-2 election for state and county officers. 648-3 (b) The governing body shall hold the election on the first 648-4 authorized uniform election date prescribed by Chapter 41, Election 648-5 Code, that allows sufficient time for compliance with any 648-6 requirements established by law. 648-7 (c) The ballot in the election shall be printed to provide 648-8 for voting for or against the proposition: "Adoption of the state 648-9 law applicable to (fire fighters, police officers, or both, as 648-10 applicable) that establishes collective bargaining if a majority of 648-11 the affected employees favor representation by an employees 648-12 association, preserves the prohibition against strikes and 648-13 lockouts, and provides penalties for strikes and lockouts." 648-14 (V.A.C.S. Art. 5154c-1, Sec. 5(b) (part).) 648-15 Sec. 174.052. EFFECT OF SUCCESSFUL ADOPTION ELECTION. If a 648-16 majority of the votes cast in an election under Section 174.051 648-17 favor adoption of this chapter, the governing body shall place this 648-18 chapter in effect not later than the 30th day after the beginning 648-19 of the first fiscal year of the political subdivision after the 648-20 election. (V.A.C.S. Art. 5154c-1, Sec. 5(b) (part).) 648-21 Sec. 174.053. REPEAL ELECTION. (a) The governing body of a 648-22 political subdivision in which the collective bargaining provisions 648-23 of this chapter have been in effect for at least one year shall 648-24 order an election for the repeal of the adoption of this chapter on 648-25 receiving a petition signed by qualified voters of the political 648-26 subdivision in a number equal to or greater than the lesser of: 648-27 (1) 20,000; or 649-1 (2) five percent of the number of qualified voters 649-2 voting in the political subdivision in the preceding general 649-3 election for state and county officers. 649-4 (b) The ballot in the election shall be printed to provide 649-5 for voting for or against the proposition: "Repeal of the adoption 649-6 of the state law applicable to (fire fighters, police officers, or 649-7 both, as applicable) that establishes collective bargaining if a 649-8 majority of the affected employees favor representation by an 649-9 employees association, preserves the prohibition against strikes 649-10 and lockouts, and provides penalties for strikes and lockouts." 649-11 (V.A.C.S. Art. 5154c-1, Sec. 5(c) (part).) 649-12 Sec. 174.054. EFFECT OF SUCCESSFUL REPEAL ELECTION. If a 649-13 majority of the votes cast in an election under Section 174.053 649-14 favor repeal of the adoption of this chapter, the collective 649-15 bargaining provisions of this chapter are void as to the political 649-16 subdivision. (V.A.C.S. Art. 5154c-1, Sec. 5(c) (part).) 649-17 Sec. 174.055. FREQUENCY OF ELECTIONS. If an election for 649-18 the adoption or the repeal of the adoption of this chapter is held 649-19 under this subchapter, a like petition for a subsequent election 649-20 may not be submitted before the first anniversary of the date of 649-21 the preceding election. (V.A.C.S. Art. 5154c-1, Sec. 5(d).) 649-22 (Sections 174.056-174.100 reserved for expansion 649-23 SUBCHAPTER D. COLLECTIVE BARGAINING 649-24 Sec. 174.101. RECOGNITION OF BARGAINING AGENT FOR FIRE 649-25 FIGHTERS. A public employer shall recognize an association 649-26 selected by a majority of the fire fighters of the fire department 649-27 of a political subdivision as the exclusive bargaining agent for 650-1 the fire fighters of that department unless a majority of the fire 650-2 fighters withdraw the recognition. (V.A.C.S. Art. 5154c-1, Sec. 650-3 6(a).) 650-4 Sec. 174.102. RECOGNITION OF BARGAINING AGENT FOR POLICE 650-5 OFFICERS. A public employer shall recognize an association 650-6 selected by a majority of the police officers of the police 650-7 department of a political subdivision as the exclusive bargaining 650-8 agent for the police officers of that department unless a majority 650-9 of the police officers withdraw the recognition. (V.A.C.S. Art. 650-10 5154c-1, Sec. 6(b).) 650-11 Sec. 174.103. SINGLE BARGAINING AGENT FOR FIRE FIGHTERS AND 650-12 POLICE OFFICERS. (a) Except as provided by Subsection (b), the 650-13 fire and police departments of a political subdivision are separate 650-14 collective bargaining units under this chapter. 650-15 (b) Associations that represent employees in the fire and 650-16 police departments of a political subdivision may voluntarily join 650-17 together for collective bargaining with the public employer. 650-18 (V.A.C.S. Art. 5154c-1, Sec. 6(d).) 650-19 Sec. 174.104. QUESTION REGARDING REPRESENTATION. (a) A 650-20 question of whether an association is the majority representative 650-21 of the employees of a department under Sections 174.101-174.103 650-22 shall be resolved by a fair election conducted according to 650-23 procedures agreed on by the parties. 650-24 (b) If the parties are unable to agree on election 650-25 procedures under Subsection (a), either party may request the 650-26 American Arbitration Association to conduct the election and 650-27 certify the results. Certification of the results of an election 651-1 under this section shall resolve the question regarding 651-2 representation. The public employer shall pay the expenses of the 651-3 election, except that if two or more associations seek recognition 651-4 as the bargaining agent, the associations shall pay the costs of 651-5 the election equally. (V.A.C.S. Art. 5154c-1, Sec. 6(c).) 651-6 Sec. 174.105. DUTY TO BARGAIN COLLECTIVELY IN GOOD FAITH. 651-7 (a) If the fire fighters, police officers, or both of a political 651-8 subdivision are represented by an association as provided by 651-9 Sections 174.101-174.104, the public employer and the association 651-10 shall bargain collectively. 651-11 (b) For purposes of this section, the duty to bargain 651-12 collectively means a public employer and an association shall: 651-13 (1) meet at reasonable times; 651-14 (2) confer in good faith regarding compensation, 651-15 hours, and other conditions of employment or the negotiation of an 651-16 agreement or a question arising under an agreement; and 651-17 (3) execute a written contract incorporating any 651-18 agreement reached, if either party requests a written contract. 651-19 (c) This section does not require a public employer or an 651-20 association to: 651-21 (1) agree to a proposal; or 651-22 (2) make a concession. (V.A.C.S. Art. 5154c-1, Secs. 651-23 7(a), (b).) 651-24 Sec. 174.106. DESIGNATION OF NEGOTIATOR. A public employer 651-25 or an association may designate one or more persons to negotiate or 651-26 bargain on its behalf. (V.A.C.S. Art. 5154c-1, Sec. 7(c) (part).) 651-27 Sec. 174.107. NOTICE TO PUBLIC EMPLOYER REGARDING CERTAIN 652-1 ISSUES. If compensation or another matter that requires an 652-2 appropriation of money by any governing body is included for 652-3 collective bargaining under this chapter, an association shall 652-4 serve on the public employer a written notice of its request for 652-5 collective bargaining at least 120 days before the date on which 652-6 the public employer's current fiscal operating budget ends. 652-7 (V.A.C.S. Art. 5154c-1, Sec. 7(d).) 652-8 Sec. 174.108. OPEN DELIBERATIONS. A deliberation relating 652-9 to collective bargaining between a public employer and an 652-10 association, a deliberation by a quorum of an association 652-11 authorized to bargain collectively, or a deliberation by a member 652-12 of a public employer authorized to bargain collectively shall be 652-13 open to the public and comply with state law. (V.A.C.S. Art. 652-14 5154c-1, Sec. 7(e).) 652-15 Sec. 174.109. EFFECT OF AGREEMENT. An agreement under this 652-16 chapter is binding and enforceable against a public employer, an 652-17 association, and a fire fighter or police officer covered by the 652-18 agreement. (V.A.C.S. Art. 5154c-1, Sec. 8 (part).) 652-19 (Sections 174.110-174.150 reserved for expansion 652-20 SUBCHAPTER E. MEDIATION; ARBITRATION 652-21 Sec. 174.151. MEDIATION. (a) A public employer and an 652-22 association that is a bargaining agent may use mediation to assist 652-23 them in reaching an agreement. 652-24 (b) If a mediator is used, then a mediator may be appointed 652-25 by agreement of the parties or by an appropriate state agency. 652-26 (c) A mediator may: 652-27 (1) hold separate or joint conferences as the mediator 653-1 considers expedient to settle issues voluntarily, amicably, and 653-2 expeditiously; and 653-3 (2) notwithstanding Subsection (d), recommend or 653-4 suggest to the parties any proposal or procedure that in the 653-5 mediator's judgment might lead to settlement. 653-6 (d) A mediator may not: 653-7 (1) make a public recommendation on any negotiation 653-8 issue in connection with the mediator's service; or 653-9 (2) make a public statement or report that evaluates 653-10 the relative merits of the parties' positions. (V.A.C.S. Art. 653-11 5154c-1, Secs. 7(c) (part), 9(c) (part).) 653-12 Sec. 174.152. IMPASSE. (a) For purposes of this 653-13 subchapter, an impasse in the collective bargaining process is 653-14 considered to have occurred if the parties do not settle in writing 653-15 each issue in dispute before the 61st day after the date on which 653-16 the collective bargaining process begins. 653-17 (b) The period specified in Subsection (a) may be extended 653-18 by written agreement of the parties. An extension must be for a 653-19 definite period not to exceed 15 days. (V.A.C.S. Art. 5154c-1, 653-20 Sec. 9(b).) 653-21 Sec. 174.153. REQUEST FOR ARBITRATION; AGREEMENT TO 653-22 ARBITRATE. (a) A public employer or an association that is a 653-23 bargaining agent may request the appointment of an arbitration 653-24 board if: 653-25 (1) the parties: 653-26 (A) reach an impasse in collective bargaining; 653-27 or 654-1 (B) are unable to settle after the appropriate 654-2 lawmaking body fails to approve a contract reached through 654-3 collective bargaining; 654-4 (2) the parties made every reasonable effort, 654-5 including mediation, to settle the dispute through good-faith 654-6 collective bargaining; and 654-7 (3) the public employer or association gives written 654-8 notice to the other party, specifying the issue in dispute. 654-9 (b) A request for arbitration must be made not later than 654-10 the fifth day after: 654-11 (1) the date an impasse was reached under Section 654-12 174.152; or 654-13 (2) the expiration of an extension period under 654-14 Section 174.152. 654-15 (c) An election by both parties to arbitrate must: 654-16 (1) be made not later than the fifth day after the 654-17 date arbitration is requested; and 654-18 (2) be a written agreement to arbitrate. 654-19 (d) A party may not request arbitration more than once in a 654-20 fiscal year. (V.A.C.S. Art. 5154c-1, Secs. 9(a), (c) (part), 10(a) 654-21 (part).) 654-22 Sec. 174.154. ARBITRATION BOARD. (a) Not later than the 654-23 fifth day after the date an agreement to arbitrate is executed, 654-24 each party shall: 654-25 (1) select one arbitrator; and 654-26 (2) immediately notify the other party in writing of 654-27 the name and address of the arbitrator selected. 655-1 (b) Not later than the 10th day after the date an agreement 655-2 to arbitrate is executed, the arbitrators named under Subsection 655-3 (a) shall attempt to select a third (neutral) arbitrator. If the 655-4 arbitrators are unable to agree on a third arbitrator, either party 655-5 may request the American Arbitration Association to select the 655-6 third arbitrator, and the American Arbitration Association may 655-7 appoint the third arbitrator according to its fair and regular 655-8 procedures. Unless both parties consent, the third arbitrator may 655-9 not be the same individual who served as a mediator under Section 655-10 174.151. 655-11 (c) The arbitrator selected under Subsection (b) presides 655-12 over the arbitration board. (V.A.C.S. Art. 5154c-1, Sec. 11.) 655-13 Sec. 174.155. ARBITRATION HEARING. (a) A presiding 655-14 arbitrator shall: 655-15 (1) call a hearing to be held not later than the 10th 655-16 day after the date on which the presiding arbitrator is appointed; 655-17 and 655-18 (2) notify the other arbitrators, the public employer, 655-19 and the association in writing of the time and place of the 655-20 hearing, not later than the eighth day before the hearing. 655-21 (b) An arbitration hearing shall end not later than the 20th 655-22 day after the date the hearing begins. 655-23 (c) An arbitration hearing shall be informal. (V.A.C.S. 655-24 Art. 5154c-1, Secs. 12(a) (part), (b) (part).) 655-25 Sec. 174.156. SCOPE OF ARBITRATION. (a) The issues to be 655-26 arbitrated are all matters the parties are unable to resolve 655-27 through collective bargaining and mediation procedures required by 656-1 this chapter. 656-2 (b) An arbitration board shall render an award in accordance 656-3 with the requirements of Section 174.021. In settling disputes 656-4 relating to compensation, hours, and other conditions of 656-5 employment, the board shall consider: 656-6 (1) hazards of employment; 656-7 (2) physical qualifications; 656-8 (3) educational qualifications; 656-9 (4) mental qualifications; 656-10 (5) job training; 656-11 (6) skills; and 656-12 (7) other factors. (V.A.C.S. Art. 5154c-1, Secs. 656-13 10(a) (part), 13(a).) 656-14 Sec. 174.157. EVIDENCE; OATH; SUBPOENA. (a) The rules of 656-15 evidence applicable to judicial proceedings are not binding in an 656-16 arbitration hearing. 656-17 (b) An arbitration board may: 656-18 (1) receive in evidence any documentary evidence or 656-19 other information the board considers relevant; 656-20 (2) administer oaths; and 656-21 (3) issue subpoenas to require: 656-22 (A) the attendance and testimony of witnesses; 656-23 and 656-24 (B) the production of books, records, and other 656-25 evidence relevant to an issue presented to the board for 656-26 determination. (V.A.C.S. Art. 5154c-1, Sec. 12(a) (part).) 656-27 Sec. 174.158. ARBITRATION AWARD. (a) Not later than the 657-1 10th day after the end of the hearing, an arbitration board shall: 657-2 (1) make written findings; and 657-3 (2) render a written award on the issues presented to 657-4 the board. 657-5 (b) A copy of the findings and award shall be mailed or 657-6 delivered to the public employer and the association. 657-7 (c) An increase in compensation awarded by an arbitration 657-8 board under this subchapter may take effect only at the beginning 657-9 of the next fiscal year after the date of the award. 657-10 (d) If a new fiscal year begins after the initiation of 657-11 arbitration procedures under this subchapter, Subsection (c) does 657-12 not apply and an increase in compensation may be retroactive to the 657-13 beginning of the fiscal year. (V.A.C.S. Art. 5154c-1, Secs. 12(b) 657-14 (part), 13(d) (part).) 657-15 Sec. 174.159. EFFECT OF AWARD. If a majority decision of an 657-16 arbitration board is supported by competent, material, and 657-17 substantial evidence on the whole record, the decision: 657-18 (1) is final and binding on the parties; and 657-19 (2) may be enforced by either party or the arbitration 657-20 board in a district court for the judicial district in which a 657-21 majority of the affected employees reside. (V.A.C.S. Art. 5154c-1, 657-22 Sec. 13(c).) 657-23 Sec. 174.160. AMENDMENT OF AWARD. The parties to an 657-24 arbitration award may amend the award by written agreement at any 657-25 time. (V.A.C.S. Art. 5154c-1, Sec. 13(e).) 657-26 Sec. 174.161. BEGINNING OF NEW FISCAL YEAR. If a new fiscal 657-27 year begins after the initiation of arbitration procedures under 658-1 this subchapter but before an award is rendered or enforced: 658-2 (1) the dispute is not moot; 658-3 (2) the jurisdiction of the arbitration board is not 658-4 impaired; and 658-5 (3) the arbitration award is not impaired. (V.A.C.S. 658-6 Art. 5154c-1, Sec. 13(d) (part).) 658-7 Sec. 174.162. EXTENSION OF PERIOD. A period specified by 658-8 Section 174.155 or 174.158 may be extended: 658-9 (1) by the written agreement of the parties for a 658-10 reasonable period; or 658-11 (2) by the arbitration board for good cause for one or 658-12 more periods that in the aggregate do not exceed 20 days. 658-13 (V.A.C.S. Art. 5154c-1, Sec. 12(c).) 658-14 Sec. 174.163. COMPULSORY ARBITRATION NOT REQUIRED. This 658-15 chapter does not require compulsory arbitration. (V.A.C.S. Art. 658-16 5154c-1, Sec. 10(b).) 658-17 Sec. 174.164. COMPENSATION OF ARBITRATORS; EXPENSES OF 658-18 ARBITRATION. (a) The compensation of an arbitrator selected by a 658-19 public employer shall be paid by the public employer. 658-20 (b) The compensation, if any, of an arbitrator selected by 658-21 fire fighters, police officers, or both shall be paid by the 658-22 association representing the employees. 658-23 (c) The public employer and the association representing the 658-24 employees shall jointly pay in even proportions: 658-25 (1) the compensation of the neutral arbitrator; and 658-26 (2) the stenographic and other expenses incurred by 658-27 the arbitration board in connection with the arbitration 659-1 proceedings. 659-2 (d) If a party to arbitration requires a transcript of the 659-3 arbitration proceedings, the party shall pay the cost of the 659-4 transcript. (V.A.C.S. Art. 5154c-1, Sec. 15.) 659-5 (Sections 174.165-174.200 reserved for expansion 659-6 SUBCHAPTER F. STRIKES; LOCKOUTS 659-7 Sec. 174.201. DEFINITION. In this subchapter, "strike" 659-8 means failing to report for duty in concerted action with others, 659-9 wilfully being absent from one's position, stopping work, 659-10 abstaining from the full, faithful, and proper performance of the 659-11 duties of employment, or interfering with the operation of a 659-12 municipality in any manner, to induce, influence, or coerce a 659-13 change in the conditions, compensation, rights, privileges, or 659-14 obligations of employment. (V.A.C.S. Art. 5154c-1, Sec. 3(5).) 659-15 Sec. 174.202. STRIKES, SLOWDOWNS, AND LOCKOUTS PROHIBITED. 659-16 (a) A fire fighter or police officer may not engage in a strike or 659-17 slowdown. 659-18 (b) A lockout of fire fighters or police officers is 659-19 prohibited. (V.A.C.S. Art. 5154c-1, Sec. 17(a).) 659-20 Sec. 174.203. LOCKOUT BY MUNICIPALITY; INJUNCTION; PENALTY. 659-21 If a municipality or its designated agent or a department or agency 659-22 head engages in a lockout of fire fighters or police officers, a 659-23 court shall: 659-24 (1) prohibit the lockout; 659-25 (2) impose a fine not to exceed $2,000 on any 659-26 individual violator; or 659-27 (3) both prohibit the lockout and impose the fine. 660-1 (V.A.C.S. Art. 5154c-1, Sec. 17(b).) 660-2 Sec. 174.204. STRIKE; PENALTY AGAINST ASSOCIATION. (a) A 660-3 district court for the judicial district in which a municipality is 660-4 located that finds that an association has called, ordered, aided, 660-5 or abetted a strike by fire fighters or police officers shall: 660-6 (1) impose a fine on the association for each day of 660-7 the strike equal to 1/26 of the total of the association's annual 660-8 membership dues, but not less than $2,500 nor more than $20,000; 660-9 and 660-10 (2) order the forfeiture of any membership dues 660-11 checkoff for a specified period not to exceed 12 months. 660-12 (b) If the court finds that the municipality or its 660-13 representative engaged in acts of extreme provocation that detract 660-14 substantially from the association's responsibility for the strike, 660-15 the court may reduce the amount of the fine. 660-16 (c) An association that appeals a fine under Subsection (b) 660-17 is not required to pay the fine until the appeal is finally 660-18 determined. (V.A.C.S. Art. 5154c-1, Secs. 17(c), (d).) 660-19 Sec. 174.205. STRIKE; PENALTY AGAINST INDIVIDUAL. If a fire 660-20 fighter or police officer engages in a strike, interferes with the 660-21 municipality, prevents the municipality from engaging in its duty, 660-22 directs any employee of the municipality to decline to work or to 660-23 stop or slow down work, causes another to fail or refuse to deliver 660-24 goods or services to the municipality, pickets for any of those 660-25 unlawful acts, or conspires to perform any of those acts: 660-26 (1) the fire fighter's or police officer's 660-27 compensation in any form may not increase in any manner until after 661-1 the first anniversary of the date the individual resumes normal 661-2 working duties; and 661-3 (2) the fire fighter or police officer shall be on 661-4 probation for two years regarding civil service status, tenure of 661-5 employment, or contract of employment to which the individual was 661-6 previously entitled. (V.A.C.S. Art. 5154c-1, Sec. 17(e).) 661-7 (Sections 174.206-174.250 reserved for expansion 661-8 SUBCHAPTER G. JUDICIAL ENFORCEMENT AND REVIEW 661-9 Sec. 174.251. JUDICIAL ENFORCEMENT GENERALLY. A district 661-10 court for the judicial district in which a municipality is located, 661-11 on the application of a party aggrieved by an act or omission of 661-12 the other party that relates to the rights or duties under this 661-13 chapter, may issue a restraining order, temporary or permanent 661-14 injunction, contempt order, or other writ, order, or process 661-15 appropriate to enforce this chapter. (V.A.C.S. Art. 5154c-1, Sec. 661-16 18.) 661-17 Sec. 174.252. JUDICIAL ENFORCEMENT WHEN PUBLIC EMPLOYER 661-18 DECLINES ARBITRATION. (a) If an association requests arbitration 661-19 as provided by Subchapter E and a public employer refuses to engage 661-20 in arbitration, on the application of the association, a district 661-21 court for the judicial district in which a majority of affected 661-22 employees reside may enforce the requirements of Section 174.021 as 661-23 to any unsettled issue relating to compensation or other conditions 661-24 of employment of fire fighters, police officers, or both. 661-25 (b) If the court finds that the public employer has violated 661-26 Section 174.021, the court shall: 661-27 (1) order the public employer to make the affected 662-1 employees whole as to the employees' past losses; 662-2 (2) declare the compensation or other conditions of 662-3 employment required by Section 174.021 for the period, not to 662-4 exceed one year, as to which the parties are bargaining; and 662-5 (3) award the association reasonable attorney's fees. 662-6 (c) The court costs of an action under this section, 662-7 including costs for a master if one is appointed, shall be taxed to 662-8 the public employer. (V.A.C.S. Art. 5154c-1, Sec. 16.) 662-9 Sec. 174.253. JUDICIAL REVIEW OF ARBITRATION AWARD. (a) An 662-10 award of an arbitration board may be reviewed by a district court 662-11 for the judicial district in which the municipality is located only 662-12 on the grounds that: 662-13 (1) the arbitration board was without jurisdiction; 662-14 (2) the arbitration board exceeded its jurisdiction; 662-15 (3) the order is not supported by competent, material, 662-16 and substantial evidence on the whole record; or 662-17 (4) the order was obtained by fraud, collusion, or 662-18 similar unlawful means. 662-19 (b) The pendency of a review proceeding does not 662-20 automatically stay enforcement of the arbitration board's order. 662-21 (V.A.C.S. Art. 5154c-1, Sec. 14.) 662-22 SECTION 5. REPEALER. The following laws are repealed: 662-23 (1) The following articles and Acts, as compiled in 662-24 Vernon's Texas Civil Statutes: 239, 240, 241, 242, 243, 244, 245, 662-25 246, 247, 248, 249, 4413(52), 5152, 5153, 5154, 5154a, 5154b, 662-26 5154c-1, 5154d, 5154e, 5154f, 5154g, 5155, 5159d, 5165.4, 5181.1, 662-27 5196c, 5196d, 5196e, 5196f, 5196g, 5207, 5207a, 5207c, 5221a-2, 663-1 5221a-3, 5221b-1, 5221b-2, 5221b-2a, 5221b-3, 5221b-4, 5221b-4a, 663-2 5221b-5, 5221b-5a, 5221b-5b, 5221b-5c, 5221b-6, 5221b-7, 5221b-7a, 663-3 5221b-7b, 5221b-7c, 5221b-7d, 5221b-8, 5221b-9, 5221b-9a, 5221b-9b, 663-4 5221b-9c, 5221b-9d, 5221b-9e, 5221b-9ee, 5221b-10, 5221b-11, 663-5 5221b-12, 5221b-12A, 5221b-13, 5221b-14, 5221b-15, 5221b-15a, 663-6 5221b-16, 5221b-17, 5221b-17a, 5221b-19, 5221b-20, 5221b-21, 663-7 5221b-22, 5221b-22a, 5221b-22aa, 5221b-22b, 5221b-22c, 5221b-22d, 663-8 5221b-22dd, 5221b-22e, 5221b-22f, 5221b-24, 5221e-1, 5221g, 663-9 5221g-1, 5221g-2, 5221j, 5221k, 6674s, 8307c, 8308a, 8309b, 8309d, 663-10 8309g, 8309g-1, 8309h, 8309i, and 9005. 663-11 (2) The Texas Workers' Compensation Act (Article 663-12 8308-1.01 et seq., Vernon's Texas Civil Statutes). 663-13 SECTION 6. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE. 663-14 This Act is enacted under Article III, Section 43, of the Texas 663-15 Constitution. This Act is intended as a recodification only, and 663-16 no substantive change in the law is intended by this Act. 663-17 SECTION 7. SAVINGS PROVISION. A code provision adopted by 663-18 this Act that conflicts with an applicable provision of Article 663-19 6252-31, Revised Statutes, as added by Section 35, Chapter 641, 663-20 Acts of the 72nd Legislature, Regular Session, 1991, does not 663-21 prevail over that article unless the law from which the code 663-22 provision was derived would prevail over that article. 663-23 SECTION 8. EFFECTIVE DATE. This Act takes effect September 663-24 1, 1993. 663-25 SECTION 9. EMERGENCY. The importance of this legislation 663-26 and the crowded condition of the calendars in both houses create an 663-27 emergency and an imperative public necessity that the 664-1 constitutional rule requiring bills to be read on three several 664-2 days in each house be suspended, and this rule is hereby suspended.