H.B. No. 1089
1-1 AN ACT
1-2 relating to the continuation and functions of the Texas Workers'
1-3 Compensation Commission; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. TEXAS WORKERS' COMPENSATION COMMISSION
1-6 SECTION 1.01. Section 401.002, Labor Code, is amended to
1-7 read as follows:
1-8 Sec. 401.002. APPLICATION OF SUNSET ACT. The Texas Workers'
1-9 Compensation Commission is <and the Texas Workers' Compensation
1-10 Research Center are> subject to Chapter 325, Government Code (Texas
1-11 Sunset Act). Unless continued in existence as provided by that
1-12 chapter, the commission is abolished September 1, 2007 <1995, and
1-13 the research center and the legislative oversight committee are
1-14 abolished September 1, 1995>.
1-15 SECTION 1.02. Section 402.001(c), Labor Code, is amended to
1-16 read as follows:
1-17 (c) Three members of the commission must be employers of
1-18 labor and three members of the commission must be wage earners. A
1-19 person is not eligible for appointment as a member of the
1-20 commission if the person provides services subject to regulation by
1-21 the commission or charges fees that are subject to regulation by
1-22 the commission.
1-23 SECTION 1.03. Subchapter A, Chapter 402, Labor Code, is
1-24 amended by adding Section 402.0015 to read as follows:
2-1 Sec. 402.0015. TRAINING PROGRAM FOR COMMISSION MEMBERS. (a)
2-2 Before a member of the commission may assume the member's duties,
2-3 the member must complete the training program established under
2-4 this section.
2-5 (b) A training program established under this section must
2-6 provide information to the member regarding:
2-7 (1) the enabling legislation that created the
2-8 commission;
2-9 (2) the programs operated by the commission;
2-10 (3) the role and functions of the commission;
2-11 (4) the rules of the commission, with an emphasis on
2-12 the rules that relate to disciplinary and investigatory authority;
2-13 (5) the current budget for the commission;
2-14 (6) the results of the most recent formal audit of the
2-15 commission;
2-16 (7) the requirements of:
2-17 (A) the open meetings law, Chapter 551,
2-18 Government Code;
2-19 (B) the open records law, Chapter 552,
2-20 Government Code; and
2-21 (C) the administrative procedure law, Chapter
2-22 2001, Government Code;
2-23 (8) the requirements of the conflict of interest laws
2-24 and other laws relating to public officials; and
2-25 (9) any applicable ethics policies adopted by the
2-26 commission or the Texas Ethics Commission.
2-27 SECTION 1.04. Section 402.003, Labor Code, is amended to
3-1 read as follows:
3-2 Sec. 402.003. EFFECT OF LOBBYING ACTIVITY. A person may not
3-3 serve as a member of the commission or act as the general counsel
3-4 to the commission if the person is required to register as a
3-5 lobbyist under Chapter 305, Government Code, because of the
3-6 person's activities for compensation on behalf of a profession that
3-7 is regulated by or that has fees regulated by the commission <A
3-8 member of the commission may not be a lobbyist required to be
3-9 registered under Chapter 305, Government Code, if the primary
3-10 purpose of the person's employment is to influence the passage of
3-11 legislation>.
3-12 SECTION 1.05. Sections 402.005(a) and (c), Labor Code, are
3-13 amended to read as follows:
3-14 (a) It is a ground for removal from the commission if <that>
3-15 a member:
3-16 (1) does not have at the time of appointment the
3-17 qualifications required for appointment to the commission;
3-18 (2) does not maintain during service on the commission
3-19 the qualifications required for appointment to the commission;
3-20 (3) violates a prohibition established by Section
3-21 402.003 or 402.012;
3-22 (4) cannot <discharge> because of illness or
3-23 incapacity discharge the member's duties for a substantial part of
3-24 the term for which the member is appointed; or
3-25 (5) <(4)> is absent from more than half of the
3-26 regularly scheduled commission meetings that the member is eligible
3-27 to attend during a calendar year <unless the absence is excused by
4-1 a majority vote of the commission>.
4-2 (c) If the executive director of the commission knows that a
4-3 potential ground for removal exists, the executive director shall
4-4 notify the chairman of the commission of the potential ground. The
4-5 chairman shall then notify the governor and the attorney general
4-6 that a potential ground for removal exists. If the potential
4-7 ground for removal involves the chairman, the executive director
4-8 shall notify the next highest officer of the commission, who shall
4-9 notify the governor and the attorney general that a potential
4-10 ground for removal exists.
4-11 SECTION 1.06. Section 402.008(a), Labor Code, is amended to
4-12 read as follows:
4-13 (a) The governor shall designate a member of the commission
4-14 as the chairman of the commission <The commission shall elect one
4-15 of its members> to serve in that capacity <as chairman> for a
4-16 two-year term expiring February 1 of each odd-numbered year. The
4-17 governor shall alternate the chairmanship between the members who
4-18 are employers and the members who are wage earners.
4-19 SECTION 1.07. Subchapter A, Chapter 402, Labor Code, is
4-20 amended by adding Section 402.012 to read as follows:
4-21 Sec. 402.012. CONFLICT OF INTEREST. (a) An officer,
4-22 employee, or paid consultant of a Texas trade association whose
4-23 members provide services subject to regulation by the commission or
4-24 provide services whose fees are subject to regulation by the
4-25 commission may not be a member of the commission or an employee of
4-26 the commission who is exempt from the state's position
4-27 classification plan or is compensated at or above the amount
5-1 prescribed by the General Appropriations Act for step 1, salary
5-2 group 17, of the position classification salary schedule.
5-3 (b) On acceptance of appointment to the commission, an
5-4 appointee who is an officer, employee, or paid consultant of a
5-5 Texas trade association described by Subsection (a) must resign the
5-6 position or terminate the contract with the trade association.
5-7 (c) For the purposes of this section, "Texas trade
5-8 association" means a nonprofit, cooperative, and voluntarily joined
5-9 association of business or professional competitors in this state
5-10 designed to assist its members and its industry or profession in
5-11 dealing with mutual business or professional problems and in
5-12 promoting their common interest. The term does not include a labor
5-13 union or an employees' association.
5-14 SECTION 1.08. Section 402.023, Labor Code, is amended to
5-15 read as follows:
5-16 Sec. 402.023. COMPLAINT INFORMATION. (a) The executive
5-17 director shall keep an information file about each written
5-18 complaint filed with the commission that is unrelated to a specific
5-19 workers' compensation claim. The information must include:
5-20 (1) the date the complaint is received;
5-21 (2) the name of the complainant;
5-22 (3) the subject matter of the complaint;
5-23 (4) a record of all persons contacted in relation to
5-24 the complaint;
5-25 (5) a summary of the results of the review or
5-26 investigation of the complaint; and
5-27 (6) for complaints for which the commission took no
6-1 action, an explanation of the reason the complaint was closed
6-2 without action.
6-3 (b) For each written <The commission shall notify the
6-4 parties to a> complaint that is unrelated to a specific workers'
6-5 compensation claim that the commission has authority to resolve,
6-6 the executive director shall provide to the person filing the
6-7 complaint and the person about whom the complaint is made
6-8 information about the commission's policies and procedures relating
6-9 to complaint investigation and resolution. The commission, <of the
6-10 status of the complaint> at least quarterly and until final
6-11 disposition of the complaint, shall notify those persons about the
6-12 status of the complaint unless the notice would jeopardize an
6-13 undercover investigation.
6-14 SECTION 1.09. Section 402.024, Labor Code, is amended to
6-15 read as follows:
6-16 Sec. 402.024. PUBLIC PARTICIPATION. (a) The commission
6-17 shall develop and implement policies that provide the public with a
6-18 reasonable opportunity to appear before the commission and to speak
6-19 on issues under the general jurisdiction of the commission.
6-20 (b) The commission shall comply with federal and state laws
6-21 related to program and facility accessibility.
6-22 (c) In addition to compliance with Subsection (a), the
6-23 <The> executive director shall prepare and maintain a written plan
6-24 that describes how a person who does not speak English <or who has
6-25 a physical, mental, or developmental disability> may be provided
6-26 reasonable access to the commission's programs and services
6-27 <workers' compensation proceedings>.
7-1 <(c) Section 401.011(16) does not apply to the use of
7-2 "disability" in Subsection (b).>
7-3 SECTION 1.10. Section 402.041, Labor Code, is amended by
7-4 adding Subsection (d) to read as follows:
7-5 (d) The commission shall develop and implement policies that
7-6 clearly separate the policymaking responsibilities of the
7-7 commission and the management responsibilities of the executive
7-8 director and the staff of the commission.
7-9 SECTION 1.11. Section 402.044, Labor Code, is amended to
7-10 read as follows:
7-11 Sec. 402.044. CAREER LADDER; ANNUAL PERFORMANCE EVALUATIONS.
7-12 (a) The executive director shall develop an intra-agency career
7-13 ladder program that addresses opportunities for mobility and
7-14 advancement for employees within the commission. The program shall
7-15 require intra-agency postings of all <nonentry level> positions
7-16 concurrently with any public posting.
7-17 (b) The executive director shall develop a system of annual
7-18 performance evaluations that are based on documented employee
7-19 performance. All merit pay for commission employees must be based
7-20 on the system established under this subsection.
7-21 SECTION 1.12. Section 402.045, Labor Code, is amended to
7-22 read as follows:
7-23 Sec. 402.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
7-24 (a) The executive director shall prepare and maintain a written
7-25 policy statement <approved by the commission> to ensure
7-26 implementation of a program of equal employment opportunity under
7-27 which all personnel transactions are made without regard to race,
8-1 color, disability, sex, religion, age, or national origin. The
8-2 policy statement must include:
8-3 (1) personnel policies, including policies related to
8-4 recruitment, evaluation, selection, appointment, training, and
8-5 promotion of personnel that are in compliance with the requirements
8-6 of Chapter 21;
8-7 (2) a comprehensive analysis of the commission work
8-8 force that meets federal and state guidelines <of the commission's
8-9 work force>;
8-10 (3) procedures by which a determination can be made of
8-11 significant underuse in the commission <commission's> work force of
8-12 all persons for whom federal or state guidelines encourage a more
8-13 equitable balance; and
8-14 (4) reasonable methods to appropriately address those
8-15 areas of <significant> underuse <appropriately>.
8-16 (b) A policy statement prepared under this section must:
8-17 (1) cover an annual period;
8-18 (2) be updated <at least> annually; <and>
8-19 (3) be reviewed by the Commission on Human Rights for
8-20 compliance with Subsection (a)(1); and
8-21 (4) be filed with the governor's office.
8-22 (c) The governor's office shall deliver a biennial report to
8-23 the legislature based on the information received under Subsection
8-24 (b) <this section>. The report may be made separately or as part
8-25 of other biennial reports made to the legislature.
8-26 SECTION 1.13. Subchapter D, Chapter 402, Labor Code, is
8-27 amended by adding Section 402.0665 to read as follows:
9-1 Sec. 402.0665. LEGISLATIVE OVERSIGHT. The legislature may
9-2 adopt requirements relating to legislative oversight of the
9-3 commission and the workers' compensation system of this state. The
9-4 commission shall comply with any requirements adopted by the
9-5 legislature under this section.
9-6 SECTION 1.14. Section 402.068, Labor Code, is amended to
9-7 read as follows:
9-8 Sec. 402.068. DELEGATION OF RIGHTS AND DUTIES <PROHIBITED>.
9-9 Except as expressly provided by this subchapter <Section 402.065>,
9-10 the commission may not delegate rights and duties imposed on it by
9-11 this subchapter.
9-12 SECTION 1.15. Section 402.069, Labor Code, is amended to
9-13 read as follows:
9-14 Sec. 402.069. QUALIFICATIONS AND STANDARDS OF CONDUCT
9-15 INFORMATION. The executive director <commission> shall provide to
9-16 <its> members of the commission and commission employees, as often
9-17 as necessary, information regarding their:
9-18 (1) qualifications for office or employment under this
9-19 subtitle; and
9-20 (2) responsibilities under applicable law relating to
9-21 standards of conduct for state officers or employees.
9-22 SECTION 1.16. Section 402.070, Labor Code, is amended to
9-23 read as follows:
9-24 Sec. 402.070. ANNUAL REPORT. (a) The commission shall
9-25 prepare <file> annually <with the governor and the presiding
9-26 officer of each house of the legislature> a complete and detailed
9-27 written report accounting for all funds received and disbursed by
10-1 the commission during the preceding fiscal year.
10-2 (b) The report required under this section must meet the
10-3 reporting requirements applicable to financial reporting that are
10-4 <be in the form and reported in the time> provided by the General
10-5 Appropriations Act.
10-6 SECTION 1.17. Subchapter D, Chapter 402, Labor Code, is
10-7 amended by adding Section 402.073 to read as follows:
10-8 Sec. 402.073. COOPERATION WITH STATE OFFICE OF
10-9 ADMINISTRATIVE HEARINGS. (a) The commission and the chief
10-10 administrative law judge of the State Office of Administrative
10-11 Hearings by rule shall adopt a memorandum of understanding
10-12 governing administrative procedure law hearings under this subtitle
10-13 conducted by the State Office of Administrative Hearings in the
10-14 manner provided for a contested case hearing under Chapter 2001,
10-15 Government Code (the administrative procedure law).
10-16 (b) In a case in which a hearing is conducted by the State
10-17 Office of Administrative Hearings under Section 411.049, 413.031,
10-18 or 415.034, the administrative law judge who conducts the hearing
10-19 for the State Office of Administrative Hearings shall enter the
10-20 final decision in the case after completion of the hearing.
10-21 (c) In a case in which a hearing is conducted in conjunction
10-22 with Section 402.072, 407.046, or 408.023, and in other cases under
10-23 this subtitle that are not subject to Subsection (b), the
10-24 administrative law judge who conducts the hearing for the State
10-25 Office of Administrative Hearings shall propose a decision to the
10-26 commission for final consideration and decision by the commission.
10-27 SECTION 1.18. Section 402.091(d), Labor Code, is amended to
11-1 read as follows:
11-2 (d) An offense under this section may be prosecuted in a
11-3 court in<:>
11-4 <(1) Travis County; or>
11-5 <(2)> the county where the information was unlawfully
11-6 received, published, disclosed, or distributed.
11-7 SECTION 1.19. Subchapter E, Chapter 402, Labor Code, is
11-8 amended by adding Section 402.092 to read as follows:
11-9 Sec. 402.092. INVESTIGATION FILES CONFIDENTIAL. (a)
11-10 Information maintained in the investigation files of the commission
11-11 is confidential and may not be disclosed except:
11-12 (1) in a criminal proceeding;
11-13 (2) in a hearing conducted by the commission;
11-14 (3) on a judicial determination of good cause; or
11-15 (4) to a governmental agency, political subdivision,
11-16 or regulatory body if the disclosure is necessary or proper for the
11-17 enforcement of the laws of this or another state or of the United
11-18 States.
11-19 (b) Commission investigation files are not open records for
11-20 purposes of Chapter 552, Government Code.
11-21 (c) Information in an investigation file that is information
11-22 in or derived from a claim file, or an employer injury report or
11-23 occupational disease report, is governed by the confidentiality
11-24 provisions relating to that information.
11-25 (d) For purposes of this section, "investigation file" means
11-26 any information compiled or maintained by the commission with
11-27 respect to a commission investigation authorized by law.
12-1 (e) The commission, upon request, shall disclose the
12-2 identity of a complainant under this section if the commission
12-3 finds:
12-4 (1) the complaint was groundless or made in bad faith;
12-5 or
12-6 (2) the complaint lacks any basis in fact or evidence;
12-7 or
12-8 (3) the complaint is frivolous; or
12-9 (4) the complaint is done specifically for competitive
12-10 or economic advantage.
12-11 (f) Upon completion of an investigation where the commission
12-12 determines a complaint is groundless, frivolous, made in bad faith,
12-13 or is not supported by evidence or is done specifically for
12-14 competitive or economic advantage the commission shall notify the
12-15 person who was the subject of the complaint of its finding and the
12-16 identity of the complainant.
12-17 SECTION 1.20. Subchapter E, Chapter 406, Labor Code, is
12-18 amended by adding Section 406.097 to read as follows:
12-19 Sec. 406.097. EXECUTIVE EMPLOYEES OF CERTAIN BUSINESS
12-20 ENTITIES. (a) A sole proprietor, partner, or corporate executive
12-21 officer of a business entity that elects to provide workers'
12-22 compensation insurance coverage is entitled to benefits under that
12-23 coverage as an employee unless the sole proprietor, partner, or
12-24 corporate executive officer is specifically excluded from coverage
12-25 through an endorsement to the insurance policy or certificate of
12-26 authority to self-insure.
12-27 (b) The dual capacity doctrine does not apply to a corporate
13-1 executive officer with an equity ownership in the covered business
13-2 entity of at least 25 percent and will not invalidate the exclusion
13-3 of such a corporate executive officer from coverage under
13-4 Subsection (a).
13-5 (c) A sole proprietor or partner of a covered business
13-6 entity or a corporate officer with an equity ownership in a covered
13-7 business entity of at least 25 percent may be excluded from
13-8 coverage under this section notwithstanding Section 406.096.
13-9 SECTION 1.21. Sections 407.046(b) and (c), Labor Code, are
13-10 amended to read as follows:
13-11 (b) If the commission believes that a ground exists to
13-12 revoke a certificate of authority to self-insure, the commission
13-13 shall refer the matter to the State Office of Administrative
13-14 Hearings. That office shall hold a hearing to determine if the
13-15 certificate should be revoked. The hearing shall be conducted in
13-16 the manner provided for a contested case hearing under Chapter
13-17 2001, Government Code (the administrative procedure law
13-18 <Administrative Procedure and Texas Register Act (Article 6252-13a,
13-19 Vernon's Texas Civil Statutes>).
13-20 (c) The State Office of Administrative Hearings <commission>
13-21 shall notify the certified self-insurer of the hearing and the
13-22 grounds not later than the 30th day before the scheduled hearing
13-23 date.
13-24 SECTION 1.22. Section 407.103(b), Labor Code, is amended to
13-25 read as follows:
13-26 (b) To determine the tax base of a certified self-insurer
13-27 for purposes of this chapter, the director shall multiply the
14-1 amount of the certified self-insurer's liabilities for workers'
14-2 compensation claims incurred in the previous year, including claims
14-3 incurred but not reported, plus the amount of expense incurred by
14-4 the certified self-insurer in the previous year for administration
14-5 of self-insurance, including legal costs, by 1.02 <each certified
14-6 self-insurer shall report its payroll by individual workers'
14-7 compensation risk code classifications in its application for
14-8 certification and in its annual reports to the commission. The
14-9 commission shall compute the estimated manual premium for the
14-10 certified self-insurer using the workers' compensation insurance
14-11 rates established by the State Board of Insurance. The commission
14-12 shall compute the certified self-insurer's tax base by multiplying
14-13 the estimated manual premium by 0.75>.
14-14 SECTION 1.23. Section 407.122, Labor Code, is amended by
14-15 amending Subsections (b) and (c) and by adding Subsection (d) to
14-16 read as follows:
14-17 (b) The board of directors is composed of the following
14-18 voting members:
14-19 (1) three <two> certified self-insurers;
14-20 (2) one commission member representing wage earners;
14-21 (3) one commission member representing employers; and
14-22 (4) <the executive director of the commission; and>
14-23 <(5)> the public counsel of the office of public
14-24 insurance counsel.
14-25 (c) The executive director of the commission and the
14-26 director of the division of self-insurance regulation serve
14-27 <serves> as <a> nonvoting members <member> of the board of
15-1 directors.
15-2 (d) A member of the board of directors or a member of the
15-3 staff of the board of directors is not liable in a civil action for
15-4 an act performed in good faith in the execution of that person's
15-5 powers or duties.
15-6 SECTION 1.24. Section 407.126, Labor Code, is amended to
15-7 read as follows:
15-8 Sec. 407.126. Trust Fund; Fee; SCHEDULE. (a) Each member
15-9 of the association shall be assessed a fee, based on total amount
15-10 of income benefits payments made in this state for the preceding
15-11 reported calendar year, to create, over a period of 10 <five> years
15-12 beginning January 1, 1993, a Texas certified self-insurer guaranty
15-13 trust fund of at least $1 million for the emergency payment of the
15-14 compensation liabilities of an impaired employer. The fund may not
15-15 exceed $2 million.
15-16 (b) The board of directors shall adopt a year-by-year
15-17 schedule of assessments to meet the 10-year funding goal of the
15-18 trust fund.
15-19 (c) The assessment for the first year after an employer is
15-20 issued a certificate of authority to self-insure shall be based on
15-21 the income benefit payments paid by the employer's insurance
15-22 carrier on the employer's policy in the year before the certificate
15-23 was issued.
15-24 (d) <(c)> The board of directors shall administer the trust
15-25 fund in accordance with rules adopted by the commission.
15-26 SECTION 1.25. Section 408.023(b), Labor Code, is amended to
15-27 read as follows:
16-1 (b) The commission shall establish criteria for deleting a
16-2 doctor from the list of approved doctors. The criteria may include
16-3 anything the commission considers relevant, including:
16-4 (1) sanctions of the doctor by the commission for
16-5 violations of Chapter 413 or Chapter 415;
16-6 (2) sanctions by the Medicare or Medicaid program for:
16-7 (A) substandard medical care;
16-8 (B) overcharging; or
16-9 (C) overutilization of medical services;
16-10 (3) evidence from the commission's medical records
16-11 that the doctor's charges, fees, diagnoses, or treatments are
16-12 substantially different from those the commission finds to be fair
16-13 and reasonable; and
16-14 (4) suspension of the doctor's license by the
16-15 appropriate licensing authority.
16-16 SECTION 1.26. Section 408.083, Labor Code, is amended to
16-17 read as follows:
16-18 Sec. 408.083. Termination of Right to Temporary Income,
16-19 Impairment Income, and Supplemental Income Benefits. (a) Except
16-20 as provided by Subsection (b), an <An> employee's eligibility for
16-21 temporary income benefits, impairment income benefits, and
16-22 supplemental income benefits terminates on the expiration of 401
16-23 weeks after the date of injury.
16-24 (b) If an employee incurs an occupational disease, the
16-25 employee's eligibility for temporary income benefits, impairment
16-26 income benefits, and supplemental income benefits terminates on the
16-27 expiration of 401 weeks after the date on which benefits began to
17-1 accrue.
17-2 SECTION 1.27. Section 408.122, Labor Code, is amended to
17-3 read as follows:
17-4 Sec. 408.122. Eligibility for Impairment Income Benefits;
17-5 DESIGNATED DOCTOR. (a) A claimant may not recover impairment
17-6 income benefits unless evidence of impairment based on an objective
17-7 clinical or laboratory finding exists. If the finding of
17-8 impairment is made by a doctor chosen by the claimant and the
17-9 finding is contested, a designated doctor or a doctor selected by
17-10 the insurance carrier must be able to confirm the objective
17-11 clinical or laboratory finding on which the finding of impairment
17-12 is based.
17-13 (b) To be eligible to serve as a designated doctor, a doctor
17-14 must meet specific qualifications, including training in the
17-15 determination of impairment ratings. The executive director shall
17-16 develop qualification standards and administrative policies to
17-17 implement this subsection, and the commission may adopt rules as
17-18 necessary. To the extent possible, a designated doctor must be in
17-19 the same discipline and licensed by the same board of examiners as
17-20 the employee's doctor of choice.
17-21 (c) If a dispute exists as to whether the employee has
17-22 reached maximum medical improvement, the commission shall direct
17-23 the employee to be examined by a designated doctor chosen by mutual
17-24 agreement of the parties. If the parties are unable to agree on a
17-25 designated doctor, the commission shall direct the employee to be
17-26 examined by a designated doctor chosen by the commission. The
17-27 designated doctor shall report to the commission. The report of
18-1 the designated doctor has presumptive weight, and the commission
18-2 shall base its determination of whether the employee has reached
18-3 maximum medical improvement on the report unless the great weight
18-4 of the other medical evidence is to the contrary.
18-5 SECTION 1.28. Section 408.125, Labor Code, is amended by
18-6 adding Subsections (f) and (g) to read as follows:
18-7 (f) To avoid undue influence on a person selected as a
18-8 designated doctor under this section, only the injured employee or
18-9 an appropriate member of the staff of the commission may
18-10 communicate with the designated doctor about the case regarding the
18-11 injured employee's medical condition or history before the
18-12 examination of the injured employee by the designated doctor.
18-13 After that examination is completed, communication with the
18-14 designated doctor regarding the injured employee's medical
18-15 condition or history may be made only through appropriate
18-16 commission staff members. The designated doctor may initiate
18-17 communication with any doctor who has previously treated or
18-18 examined the injured employee for the work-related injury.
18-19 (g) A violation of Subsection (f) is a Class C
18-20 administrative violation.
18-21 SECTION 1.29. Section 409.005, Labor Code, is amended to
18-22 read as follows:
18-23 Sec. 409.005. <Employer> Report of Injury; Administrative
18-24 Violation. (a) An employer shall <file a written> report to
18-25 <with> the <commission and the> employer's insurance carrier if:
18-26 (1) an injury results in the absence of an employee of
18-27 that employer from work for more than one day; or
19-1 (2) an employee of the employer notifies that employer
19-2 of an occupational disease under Section 409.001.
19-3 (b) The report under Subsection (a) must be made <mailed or
19-4 delivered to the commission and the insurance carrier> not later
19-5 than the eighth day after:
19-6 (1) the employee's absence from work for more than one
19-7 day due to an injury; or
19-8 (2) the day on which the employer receives notice
19-9 under Section 409.001 that the employee has contracted an
19-10 occupational disease.
19-11 (c) The <A report required under this section may not be
19-12 considered to be an admission by or evidence against an> employer
19-13 shall deliver a written copy of the report under Subsection (a) to
19-14 the injured employee at the time that the report is made to the <or
19-15 an> insurance carrier <in a proceeding before the commission or a
19-16 court in which the facts set out in the report are contradicted by
19-17 the employer or insurance carrier>.
19-18 (d) The insurance carrier shall file the report of the
19-19 injury on behalf of the policyholder. Except as provided by
19-20 Subsection (e), the insurance carrier must electronically file the
19-21 report with the commission not later than the seventh day after the
19-22 date on which the carrier receives the report from the employer.
19-23 (e) The executive director may waive the electronic filing
19-24 requirement under Subsection (d) and allow an insurance carrier to
19-25 mail or deliver the report to the commission not later than the
19-26 seventh day after the date on which the carrier receives the report
19-27 from the employer.
20-1 (f) A report required under this section may not be
20-2 considered to be an admission by or evidence against an employer or
20-3 an insurance carrier in a proceeding before the commission or a
20-4 court in which the facts set out in the report are contradicted by
20-5 the employer or insurance carrier.
20-6 (g) In addition to any information required under Subsection
20-7 (h), the report provided to the injured employee under Subsection
20-8 (c) must contain a summary written in plain language of the
20-9 employee's statutory rights and responsibilities under this
20-10 subtitle.
20-11 (h) <(d)> The commission may adopt rules relating to:
20-12 (1) the information that must be contained in a report
20-13 required under this section, including the summary of rights and
20-14 responsibilities required under Subsection (g); and
20-15 (2) the development and implementation of an
20-16 electronic filing system for injury reports under this section.
20-17 (i) <(e)> An employer and insurance carrier shall file
20-18 subsequent reports as required by commission rule.
20-19 (j) <(f)> A person commits a violation if the person fails
20-20 to comply with this section unless good cause exists. A violation
20-21 under this subsection is a Class D administrative violation.
20-22 SECTION 1.30. Subchapter A, Chapter 409, Labor Code, is
20-23 amended by adding Section 409.013 to read as follows:
20-24 Sec. 409.013. PLAIN LANGUAGE INFORMATION; NOTIFICATION OF
20-25 INJURED WORKER. (a) The commission shall develop information for
20-26 public dissemination about the benefit process and the compensation
20-27 procedures established under this chapter. The information must be
21-1 written in plain language and must be available in English and
21-2 Spanish.
21-3 (b) On receipt of a report under Section 409.005, the
21-4 commission shall contact the affected employee by mail or by
21-5 telephone and shall provide the information required under
21-6 Subsection (a) to that employee, together with any other
21-7 information that may be prepared by the commission for public
21-8 dissemination that relates to the employee's situation, such as
21-9 information relating to back injuries or occupational diseases.
21-10 SECTION 1.31. Subchapter C, Chapter 409, Labor Code, is
21-11 amended to read as follows:
21-12 SUBCHAPTER C. OMBUDSMAN PROGRAM
21-13 Sec. 409.041. Ombudsman Program<; ADMINISTRATIVE VIOLATION>.
21-14 (a) The commission shall maintain an ombudsman program as provided
21-15 by this subchapter to assist injured workers and persons claiming
21-16 death benefits in obtaining benefits under this subtitle.
21-17 (b) An ombudsman shall:
21-18 (1) meet with or otherwise provide information to
21-19 injured workers;
21-20 (2) investigate complaints;
21-21 (3) communicate with employers, insurance carriers,
21-22 and health care providers on behalf of injured workers; <and>
21-23 (4) assist unrepresented claimants, employers, and
21-24 other parties to enable those persons to protect their rights in
21-25 the workers' compensation system; and
21-26 (5) meet with an unrepresented claimant privately for
21-27 a minimum of 15 minutes prior to any informal or formal hearing.
22-1 Sec. 409.042. DESIGNATION AS OMBUDSMAN; ELIGIBILITY AND
22-2 TRAINING REQUIREMENTS; CONTINUING EDUCATION REQUIREMENTS.
22-3 (a) <(c)> At least one specially qualified employee in each
22-4 commission office shall be designated an ombudsman who shall
22-5 perform the duties under this section as the person's primary
22-6 responsibility.
22-7 (b) To be eligible for designation as an ombudsman, a person
22-8 must:
22-9 (1) demonstrate satisfactory knowledge of the
22-10 requirements of:
22-11 (A) this subtitle and the provisions of Subtitle
22-12 C that relate to claims management;
22-13 (B) other laws relating to workers'
22-14 compensation; and
22-15 (C) rules adopted under this subtitle and the
22-16 laws described under Subdivision (1)(B);
22-17 (2) have demonstrated experience in handling and
22-18 resolving problems for the general public;
22-19 (3) possess strong interpersonal skills; and
22-20 (4) have at least three years of demonstrated
22-21 experience in the field of workers' compensation.
22-22 (c) The commission by rule shall adopt training guidelines
22-23 and continuing education requirements for ombudsmen. Training
22-24 provided under this subsection must:
22-25 (1) include education regarding this subtitle, rules
22-26 adopted under this subtitle, and appeals panel decisions, with
22-27 emphasis on benefits and the dispute resolution process; and
23-1 (2) require an ombudsman undergoing training to be
23-2 observed and monitored by an experienced ombudsman during daily
23-3 activities conducted under this subchapter.
23-4 Sec. 409.043. EMPLOYER NOTIFICATION; ADMINISTRATIVE
23-5 VIOLATION. (a) <(d)> Each employer shall notify its employees of
23-6 the ombudsman program in a manner prescribed by the commission.
23-7 (b) An employer commits a violation if the employer fails to
23-8 comply with this section <subsection>. A violation under this
23-9 section <subsection> is a Class C administrative violation.
23-10 Sec. 409.044 <409.042>. PUBLIC INFORMATION. The commission
23-11 shall widely disseminate information about the ombudsman program.
23-12 SECTION 1.32. Section 411.032, Labor Code, is amended to
23-13 read as follows:
23-14 Sec. 411.032. Employer Injury and Occupational Disease
23-15 Report; ADMINISTRATIVE VIOLATION. (a) An employer shall file with
23-16 the commission a report of each:
23-17 (1) on-the-job injury that results in the employee's
23-18 absence from work for more than one day; and
23-19 (2) occupational disease of which the employer has
23-20 knowledge.
23-21 (b) The commission shall adopt rules and prescribe the form
23-22 and manner of reports filed under this section.
23-23 (c) An employer commits an administrative violation if the
23-24 employer fails to report to the commission as required under
23-25 Subsection (a) unless good cause exists, as determined by the
23-26 commission, for the failure. A violation under this subsection is
23-27 a Class D administrative violation.
24-1 SECTION 1.33. Section 411.034, Labor Code, is amended to
24-2 read as follows:
24-3 Sec. 411.034. Confidentiality Requirement; OFFENSE; PENALTY.
24-4 (a) The identity of an employee in a report filed under Section
24-5 411.032 is confidential and may not be disclosed as part of the job
24-6 safety information system.
24-7 (b) A person commits an offense if the person knowingly,
24-8 intentionally, or recklessly publishes, discloses, or distributes
24-9 information that is confidential under this section to a person not
24-10 authorized to receive the information.
24-11 (c) A person commits an offense if the person knowingly,
24-12 intentionally, or recklessly receives information that is
24-13 confidential under this section and that the person is not
24-14 authorized to receive.
24-15 (d) An offense under this section is a Class A misdemeanor.
24-16 (e) An offense under this section may be prosecuted in a
24-17 court in the county where the information was unlawfully received,
24-18 published, disclosed, or distributed.
24-19 (f) A district court in Travis County has jurisdiction to
24-20 enjoin the use, publication, disclosure, or distribution of
24-21 confidential information under this section.
24-22 SECTION 1.34. Section 411.041(b), Labor Code, is amended to
24-23 read as follows:
24-24 (b) Except as provided by Section 411.0415, an <An> employer
24-25 whose injury frequencies substantially exceed those that may
24-26 reasonably be expected in that employer's business or industry is
24-27 an extra-hazardous employer.
25-1 SECTION 1.35. Subchapter D, Chapter 411, Labor Code, is
25-2 amended by adding Section 411.0415 to read as follows:
25-3 Sec. 411.0415. EXEMPTION FOR CERTAIN EMPLOYERS; HEARING.
25-4 (a) The executive director may exclude from identification as an
25-5 extra-hazardous employer an employer who presents evidence
25-6 satisfactory to the commission that the injury frequencies of the
25-7 employer substantially exceed those that may reasonably be expected
25-8 in that employer's business or industry only because of a fatality
25-9 that:
25-10 (1) occurred because of factors beyond the employer's
25-11 control; or
25-12 (2) was outside the course and scope of the deceased
25-13 individual's employment.
25-14 (b) The commission by rule shall analyze and list fatalities
25-15 that may not be related to the work environment, including:
25-16 (1) heart attacks;
25-17 (2) common diseases of life;
25-18 (3) homicides;
25-19 (4) suicides;
25-20 (5) vehicle accidents involving a third party;
25-21 (6) common carrier accidents; and
25-22 (7) natural events.
25-23 (c) If the commission determines that the case history of
25-24 the employee's fatality indicates that the employer or the work
25-25 environment was a proximate cause of the fatality, the commission
25-26 may request a hearing under Section 411.049. If the hearing
25-27 establishes that a proximate cause of the fatality was a factor or
26-1 factors within the employer's control and was within the course and
26-2 scope of the employment, the commission may require the employer to
26-3 participate in the extra-hazardous employers program if that
26-4 fatality causes the employer to be designated as an extra-hazardous
26-5 employer.
26-6 SECTION 1.36. Section 411.045(a), Labor Code, is amended to
26-7 read as follows:
26-8 (a) Not earlier than six months or later than nine <Six>
26-9 months after the formulation of an accident prevention plan under
26-10 Section 411.043, the division shall conduct a follow-up inspection
26-11 of the employer's premises. The commission may require the
26-12 participation of the safety consultant who performed the initial
26-13 consultation and formulated the safety plan.
26-14 SECTION 1.37. Section 411.049(b), Labor Code, is amended to
26-15 read as follows:
26-16 (b) The hearing shall be conducted by the State Office of
26-17 Administrative Hearings in the manner provided for a contested case
26-18 under Chapter 2001, Government Code (the administrative procedure
26-19 law <Administrative Procedure and Texas Register Act (Article
26-20 6252-13a, Vernon's Texas Civil Statutes>) and is subject to
26-21 judicial review as provided by that chapter <Act>.
26-22 SECTION 1.38. Section 411.062, Labor Code, is amended to
26-23 read as follows:
26-24 Sec. 411.062. Field Safety Representative; Qualifications.
26-25 (a) The commission by rule shall establish qualifications for
26-26 field safety representatives. The rules must include education and
26-27 experience requirements for those representatives.
27-1 (b) Each <A> field safety representative must meet the
27-2 qualifications established by the commission <be:>
27-3 <(1) a college graduate with a bachelor's degree in
27-4 science or engineering;>
27-5 <(2) a registered professional engineer;>
27-6 <(3) a certified safety professional;>
27-7 <(4) a certified industrial hygienist;>
27-8 <(5) an individual with 10 years' experience in
27-9 occupational safety and health; or>
27-10 <(6) an individual who has completed a certified
27-11 training program in accident prevention services approved by the
27-12 division>.
27-13 SECTION 1.39. Chapter 412, Labor Code, is amended by adding
27-14 Section 412.0025 to read as follows:
27-15 Sec. 412.0025. DUTIES OF STATE AGENCIES. Each state agency
27-16 subject to this chapter shall actively manage the risks of that
27-17 agency by developing, implementing, and maintaining health and
27-18 safety programs and programs designed to assist employees who
27-19 sustain compensable injuries to return to work.
27-20 SECTION 1.40. Section 412.003(a), Labor Code, is amended to
27-21 read as follows:
27-22 (a) The division shall:
27-23 (1) administer guidelines adopted by the commission
27-24 for a comprehensive risk management program applicable to all state
27-25 agencies to reduce property and liability losses, including
27-26 workers' compensation losses; and
27-27 (2) review, verify, monitor, and approve risk
28-1 management programs adopted by state agencies.
28-2 SECTION 1.41. Section 412.007(b), Labor Code, is amended to
28-3 read as follows:
28-4 (b) The report must include:
28-5 (1) the frequency, severity, and aggregate amount of
28-6 open and closed claims in the preceding biennium by category of
28-7 risk, including final judgments;
28-8 (2) the identification of each state agency that has
28-9 not complied with the risk management guidelines and reporting
28-10 requirements of this chapter; and
28-11 (3) recommendations for the coordination and
28-12 administration of a comprehensive risk management program to serve
28-13 all state agencies, including recommendations for any necessary
28-14 statutory changes.
28-15 SECTION 1.42. Section 413.002, Labor Code, is amended by
28-16 adding Subsection (c) to read as follows:
28-17 (c) In monitoring health care providers who serve as
28-18 designated doctors under Chapter 408, the division shall evaluate
28-19 the compliance of those providers with this subtitle and with rules
28-20 adopted by the commission relating to medical policies, fee
28-21 guidelines, and impairment ratings.
28-22 SECTION 1.43. Section 413.031(d), Labor Code, is amended to
28-23 read as follows:
28-24 (d) A party to a medical dispute that remains unresolved
28-25 after a review of the medical service under this section is
28-26 entitled to a hearing. The hearing shall be conducted by the State
28-27 Office of Administrative Hearings within 90 days of receipt of a
29-1 request for a hearing in the manner provided for a contested case
29-2 under Chapter 2001, Government Code (the administrative procedure
29-3 law <Administrative Procedure and Texas Register Act (Article
29-4 6252-13a, Vernon's Texas Civil Statutes>).
29-5 SECTION 1.44. Subchapter D, Chapter 413, Labor Code, is
29-6 amended by adding Section 413.044 to read as follows:
29-7 Sec. 413.044. SANCTIONS ON DESIGNATED DOCTOR. In addition
29-8 to or in lieu of an administrative penalty under Section 415.021 or
29-9 a sanction imposed under Section 415.023, the commission may impose
29-10 sanctions against a person who serves as a designated doctor under
29-11 Chapter 408 who, after an evaluation conducted under Section
29-12 413.002(c), is determined by the division to be out of compliance
29-13 with this subtitle or with rules adopted by the commission relating
29-14 to medical policies, fee guidelines, and impairment ratings.
29-15 SECTION 1.45. Subchapter A, Chapter 415, Labor Code, is
29-16 amended by amending Sections 415.002 and 415.003 and by adding
29-17 Section 415.0035 to read as follows:
29-18 Sec. 415.002. Administrative Violation by an Insurance
29-19 Carrier. (a) An insurance carrier or its representative commits
29-20 an administrative violation if that person wilfully or
29-21 intentionally:
29-22 (1) misrepresents a provision of this subtitle to an
29-23 employee, an employer, a health care provider, or a legal
29-24 beneficiary;
29-25 (2) <fails to submit to the commission a settlement or
29-26 agreement of the parties;>
29-27 <(3) fails to timely notify the commission of the
30-1 termination or reduction of benefits and the reason for that
30-2 action;>
30-3 <(4)> terminates or reduces benefits without
30-4 substantiating evidence that the action is reasonable and
30-5 authorized by law;
30-6 (3) <(5)> instructs an employer not to file a document
30-7 required to be filed with the commission;
30-8 (4) <(6)> instructs or encourages an employer to
30-9 violate a claimant's right to medical benefits under this subtitle;
30-10 (5) <(7)> fails to tender promptly full death benefits
30-11 if a legitimate dispute does not exist as to the liability of the
30-12 insurance carrier;
30-13 (6) <(8)> allows an employer, other than a
30-14 self-insured employer, to dictate the methods by which and the
30-15 terms on which a claim is handled and settled;
30-16 (7) <(9)> fails to confirm medical benefits coverage
30-17 to a person or facility providing medical treatment to a claimant
30-18 if a legitimate dispute does not exist as to the liability of the
30-19 insurance carrier;
30-20 (8) <(10)> fails, without good cause, to attend a
30-21 dispute resolution proceeding within the commission;
30-22 (9) <(11)> attends a dispute resolution proceeding
30-23 within the commission without complete authority or fails to
30-24 exercise authority to effectuate agreement or settlement;
30-25 (10) <(12)> adjusts a workers' compensation claim in a
30-26 manner contrary to license requirements for an insurance adjuster,
30-27 including the requirements of Chapter 407, Acts of the 63rd
31-1 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas
31-2 Insurance Code), or the rules of the State Board of Insurance;
31-3 (11) <(13)> fails to process claims promptly in a
31-4 reasonable and prudent manner;
31-5 (12) <(14)> fails to initiate or reinstate benefits
31-6 when due if a legitimate dispute does not exist as to the liability
31-7 of the insurance carrier;
31-8 (13) <(15)> misrepresents the reason for not paying
31-9 benefits or terminating or reducing the payment of benefits;
31-10 (14) <(16)> dates documents to misrepresent the actual
31-11 date of the initiation of benefits;
31-12 (15) <(17)> makes a notation on a draft or other
31-13 instrument indicating that the draft or instrument represents a
31-14 final settlement of a claim if the claim is still open and pending
31-15 before the commission;
31-16 (16) <(18)> fails or refuses to pay benefits from week
31-17 to week as and when due directly to the person entitled to the
31-18 benefits;
31-19 (17) <(19)> fails to pay an order awarding benefits;
31-20 (18) <(20)> controverts a claim if the evidence
31-21 clearly indicates liability;
31-22 (19) <(21) unreasonably denies preauthorization
31-23 required under Section 413.014 or> unreasonably disputes the
31-24 reasonableness and necessity of health care;
31-25 (20) <(22)> violates a commission rule; or
31-26 (21) <(23)> fails to comply with a provision of this
31-27 subtitle.
32-1 (b) An insurance carrier or its representative does not
32-2 commit an administrative violation under Subsection (a)(6)<(8)> by
32-3 allowing an employer to:
32-4 (1) freely discuss a claim;
32-5 (2) assist in the investigation and evaluation of a
32-6 claim; or
32-7 (3) attend a proceeding of the commission and
32-8 participate at the proceeding in accordance with this subtitle.
32-9 Sec. 415.003. Administrative Violation by Health Care
32-10 Provider. A health care provider commits an administrative
32-11 violation if the person wilfully or intentionally:
32-12 (1) submits a charge for health care that was not
32-13 furnished;
32-14 (2) administers improper, unreasonable, or medically
32-15 unnecessary treatment or services;
32-16 (3) <fails or refuses to timely file required reports
32-17 or records;>
32-18 <(4)> makes an unnecessary referral;
32-19 (4) <(5) fails to disclose an interest as required by
32-20 Section 413.041;>
32-21 <(6)> violates the commission's fee and treatment
32-22 guidelines;
32-23 (5) <(7)> violates a commission rule; or
32-24 (6) <(8)> fails to comply with a provision of this
32-25 subtitle.
32-26 Sec. 415.0035. ADDITIONAL VIOLATIONS BY INSURANCE CARRIER OR
32-27 HEALTH CARE PROVIDER. (a) An insurance carrier or its
33-1 representative commits an administrative violation if that person:
33-2 (1) fails to submit to the commission a settlement or
33-3 agreement of the parties;
33-4 (2) fails to timely notify the commission of the
33-5 termination or reduction of benefits and the reason for that
33-6 action; or
33-7 (3) denies preauthorization in a manner that is not in
33-8 accordance with rules adopted by the commission under Section
33-9 413.014.
33-10 (b) A health care provider commits an administrative
33-11 violation if that person:
33-12 (1) fails or refuses to timely file required reports
33-13 or records; or
33-14 (2) fails to file with the commission the annual
33-15 disclosure statement required by Section 413.041.
33-16 (c) A violation under Subsection (a) is a Class C
33-17 administrative violation.
33-18 (d) A violation under Subsection (b) is a Class D
33-19 administrative violation.
33-20 SECTION 1.46. Section 415.034(a), Labor Code, is amended to
33-21 read as follows:
33-22 (a) On the request of the charged party or <at the
33-23 discretion of> the executive director <of the division of
33-24 hearings>, the State Office of Administrative Hearings <division of
33-25 hearings> shall set a hearing. The hearing shall be conducted in
33-26 the manner provided for a contested case under Chapter 2001,
33-27 Government Code (the administrative procedure law <Administrative
34-1 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
34-2 Civil Statutes>).
34-3 SECTION 1.47. Subtitle A, Title 5, Labor Code, is amended by
34-4 adding Chapter 418 to read as follows:
34-5 CHAPTER 418. CRIMINAL PENALTIES
34-6 Sec. 418.001. PENALTY FOR FRAUDULENTLY OBTAINING OR DENYING
34-7 BENEFITS. (a) A person commits an offense if the person, with the
34-8 intent to obtain or deny payment of benefits, including medical
34-9 benefits, under this subtitle or Subtitle C, for himself or
34-10 another, knowingly or intentionally:
34-11 (1) makes a false or misleading statement;
34-12 (2) misrepresents or conceals a material fact; or
34-13 (3) fabricates, alters, conceals, or destroys a
34-14 document other than a governmental record.
34-15 (b) An offense under Subsection (a) is:
34-16 (1) a Class A misdemeanor if the value of the benefits
34-17 is less than $1,500; and
34-18 (2) a state jail felony if the value of the benefits
34-19 is $1,500 or more.
34-20 Sec. 418.002. PENALTY FOR FRAUDULENTLY OBTAINING WORKERS'
34-21 COMPENSATION INSURANCE COVERAGE. (a) A person commits an offense
34-22 if the person, with the intent to obtain workers' compensation
34-23 insurance coverage under the workers' compensation insurance laws
34-24 of this state or to avoid payment of premiums due for that
34-25 coverage, for himself or another, knowingly or intentionally:
34-26 (1) makes a false statement;
34-27 (2) misrepresents or conceals a material fact; or
35-1 (3) makes a false entry in, fabricates, alters,
35-2 conceals, or destroys a document other than a governmental record.
35-3 (b) An offense under Subsection (a) is:
35-4 (1) a Class A misdemeanor if the amount of premium
35-5 avoided is less than $1,500; and
35-6 (2) a state jail felony if the amount of the premium
35-7 avoided is $1,500 or more.
35-8 (c) The court may order a person to pay restitution to an
35-9 insurance company, the Texas workers' compensation insurance
35-10 facility, or the Texas Workers' Compensation Insurance Fund if the
35-11 person commits an offense under this section.
35-12 SECTION 1.48. (a) The change in law made by Sections
35-13 402.001, 402.005, and 402.012, Labor Code, as amended or added by
35-14 this Act, in the qualifications and the grounds for removal of
35-15 persons appointed to the Texas Workers' Compensation Commission
35-16 applies only to a member appointed on or after September 1, 1995,
35-17 and does not affect the entitlement of a member appointed before
35-18 September 1, 1995, to continue to hold office for the term for
35-19 which the member was appointed.
35-20 (b) The training program required under Section 402.0015,
35-21 Labor Code, as added by this Act, shall be established not later
35-22 than January 1, 1996. Each person appointed to the commission on
35-23 or after that date must comply with the requirements imposed under
35-24 that section.
35-25 SECTION 1.49. The Texas Workers' Compensation Commission
35-26 shall adopt rules as necessary to implement the changes in law made
35-27 by this Act to Title 5, Labor Code, not later than March 1, 1996.
36-1 SECTION 1.50. Section 406.097, Labor Code, as added by this
36-2 Act, applies only to an insurance policy or certificate of
36-3 authority to self-insure that is delivered, issued for delivery, or
36-4 renewed on or after January 1, 1996. A policy or certificate that
36-5 is delivered, issued for delivery, or renewed before January 1,
36-6 1996, is governed by the law as it existed immediately before
36-7 September 1, 1995, and that law is continued in effect for that
36-8 purpose.
36-9 SECTION 1.51. The change in law made by this Act to Section
36-10 408.083, Labor Code, applies only to an occupational disease for
36-11 which the date of injury occurs on or after September 1, 1995. A
36-12 claim based on an occupational disease for which the date of injury
36-13 occurs before September 1, 1995, is governed by the law in effect
36-14 on the date of injury for that occupational disease, and the former
36-15 law is continued in effect for that purpose.
36-16 SECTION 1.52. The change in law made by this Act to Section
36-17 409.005, Labor Code, applies only to an injury report regarding a
36-18 compensable injury that occurs on or after September 1, 1995. An
36-19 injury report for a compensable injury that occurs before that date
36-20 is governed by the law in effect on the date that the injury
36-21 occurred, and the former law is continued in effect for that
36-22 purpose.
36-23 SECTION 1.53. The change in law made by this Act to
36-24 Subchapter C, Chapter 409, Labor Code, in the qualifications of
36-25 persons who serve as ombudsmen under the Texas Workers'
36-26 Compensation Commission applies only to a person who is designated
36-27 as an ombudsman on or after September 1, 1995. The change does not
37-1 affect the entitlement of a person serving as an ombudsman
37-2 immediately before that date to continue to serve as an ombudsman
37-3 if that person continues to meet the qualifications for that
37-4 service that were in effect before September 1, 1995, and complies
37-5 with applicable continuing education requirements adopted by the
37-6 commission.
37-7 SECTION 1.54. The change in law made by Section 402.092,
37-8 Labor Code, as added by this Act, applies to information maintained
37-9 in investigation files of the Texas Workers' Compensation
37-10 Commission without regard to the date the information is collected,
37-11 compiled, developed, or otherwise becomes part of the investigation
37-12 file.
37-13 SECTION 1.55. The change in law made by this Act to Section
37-14 411.062, Labor Code, in the qualifications of a person who serves
37-15 as a field safety representative, applies only to a person employed
37-16 as a field safety representative on or after September 1, 1995.
37-17 The change does not affect the entitlement of a person serving as a
37-18 field safety representative immediately before that date to
37-19 continue to serve as a field safety representative if the person
37-20 continues to meet the qualifications for that service that were in
37-21 effect before September 1, 1995, and complies with applicable
37-22 continuing education requirements adopted by the Texas Workers'
37-23 Compensation Commission.
37-24 SECTION 1.56. A state agency subject to Section 412.0025,
37-25 Labor Code, as added by this Act, shall develop programs as
37-26 required by that section not later than January 1, 1996.
37-27 SECTION 1.57. A change in law under this Act that transfers
38-1 jurisdiction of a hearing to the State Office of Administrative
38-2 Hearings takes effect January 1, 1996. A hearing held before or
38-3 pending on December 31, 1995, is governed by the law in effect
38-4 immediately before September 1, 1995, and that law is continued in
38-5 effect for that purpose.
38-6 SECTION 1.58. (a) The change in law made to Subtitle A,
38-7 Title 5, Labor Code, by this Act applies only to a penalty or
38-8 sanction for an offense committed on or after the effective date of
38-9 this Act.
38-10 (b) For purposes of this section, an offense is committed
38-11 before the effective date of this Act if any element of the offense
38-12 occurs before that date.
38-13 (c) An offense committed before the effective date of this
38-14 Act is governed by the law in effect when the offense was
38-15 committed, and the former law is continued in effect for that
38-16 purpose.
38-17 ARTICLE 2. WORKERS' COMPENSATION INSURANCE COVERAGE
38-18 FOR CERTAIN GOVERNMENTAL EMPLOYEES
38-19 SECTION 2.01. Sections 501.002(b) and (c), Labor Code, are
38-20 amended to read as follows:
38-21 (b) For the purposes of this chapter and Chapter 451, the
38-22 individual state agency shall be considered the employer.
38-23 (c) For the purpose of applying the provisions listed by
38-24 Subsection (a) to this chapter, "insurer" or "employer" means
38-25 "state," "division," <or> "director," or "state agency," as
38-26 applicable.
38-27 SECTION 2.02. Section 501.022, Labor Code, is amended to
39-1 read as follows:
39-2 Sec. 501.022. TEXAS TECH UNIVERSITY EMPLOYEES. (a) An
39-3 eligible employee of Texas Tech University, Texas Tech University
39-4 Health Sciences Center <Research Farm, Texas Tech University School
39-5 of Medicine at Lubbock>, or another agency under the direction and
39-6 control of the board of regents of Texas Tech University and Texas
39-7 Tech University Health Sciences Center is entitled to participate
39-8 in the workers' compensation program for state employees provided
39-9 under this chapter.
39-10 (b) For purposes of this chapter, Texas Tech University is a
39-11 state agency and shall act in the capacity of employer.
39-12 (c) For purposes of this chapter, Texas Tech University
39-13 Health Sciences Center is a state agency and shall act in the
39-14 capacity of employer.
39-15 SECTION 2.03. Section 501.042, Labor Code, is amended to
39-16 read as follows:
39-17 Sec. 501.042. DIRECTOR AS <EMPLOYER AND> INSURER. (a) In
39-18 administering and enforcing this chapter, the director shall act in
39-19 the capacity of <employer and> insurer.
39-20 (b) The director shall act as an adversary before the
39-21 commission and courts and present the legal defenses and positions
39-22 of the state as an <employer and> insurer.
39-23 (c) For the purposes of this section, the director is
39-24 entitled to the legal counsel of the attorney general.
39-25 (d) The director is subject to the rules, orders, and
39-26 decisions of the commission in the same manner as an <a private
39-27 employer,> insurer<,> or association.
40-1 SECTION 2.04. Section 501.043(a), Labor Code, is amended to
40-2 read as follows:
40-3 (a) The director shall<:>
40-4 <(1)> adopt procedural rules and prescribe forms
40-5 necessary for the effective administration of this chapter<; and>
40-6 <(2) adopt and enforce reasonable rules for the
40-7 prevention of accidents and injuries>.
40-8 SECTION 2.05. The change in law made by this Act to Chapter
40-9 501, Labor Code, applies only to a claim for workers' compensation
40-10 benefits based on a compensable injury that occurs on or after
40-11 September 1, 1995. A claim based on a compensable injury that
40-12 occurs before that date is governed by the law in effect on the
40-13 date that the injury occurred, and the former law is continued in
40-14 effect for that purpose.
40-15 ARTICLE 3. CONFORMING AMENDMENTS
40-16 SECTION 3.01. Section 2003.001(3), Government Code, is
40-17 amended to read as follows:
40-18 (3) "State agency" means:
40-19 (A) a state board, commission, department, or
40-20 other agency that is subject to Chapter 2001; and
40-21 (B) to the extent provided by Title 5, Labor
40-22 Code, the Texas Workers' Compensation Commission.
40-23 SECTION 3.02. Section 2003.021, Government Code, is amended
40-24 by adding Subsection (c) to read as follows:
40-25 (c) The office shall conduct hearings under Title 5, Labor
40-26 Code, as provided by that title. In conducting hearings under
40-27 Title 5, Labor Code, the office shall consider the applicable
41-1 substantive rules and policies of the Texas Workers' Compensation
41-2 Commission. The office and the Texas Workers' Compensation
41-3 Commission shall enter into an interagency contract under Chapter
41-4 771 to pay the costs incurred by the office in implementing this
41-5 subsection.
41-6 ARTICLE 4. MISCELLANEOUS PROVISIONS
41-7 SECTION 4.01. The changes in law made by this Act to Chapter
41-8 2003, Government Code, and Sections 407.046, 411.049(b),
41-9 413.031(d), and 415.034, Labor Code, apply only to a hearing that
41-10 begins on or after January 1, 1996. A hearing held before or
41-11 pending on January 1, 1996, is governed by the law in effect
41-12 immediately before September 1, 1995, and that law is continued in
41-13 effect for that purpose.
41-14 SECTION 4.02. This Act takes effect September 1, 1995.
41-15 SECTION 4.03. The importance of this legislation and the
41-16 crowded condition of the calendars in both houses create an
41-17 emergency and an imperative public necessity that the
41-18 constitutional rule requiring bills to be read on three several
41-19 days in each house be suspended, and this rule is hereby suspended.