1-1 By: Brimer, et al. (Senate Sponsor - Armbrister) H.B. No. 1089
1-2 (In the Senate - Received from the House March 13, 1995;
1-3 March 14, 1995, read first time and referred to Committee on State
1-4 Affairs; April 25, 1995, reported favorably, as amended, by the
1-5 following vote: Yeas 13, Nays 0; April 25, 1995, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Rosson
1-7 Amend H.B. 1089 by adding the following language to subsection (b)
1-8 of Sec. 408.122 (page 17, line 1):
1-9 To the extent possible, a designated doctor must be in the
1-10 same discipline and licensed by the same board of examiners as the
1-11 employee's doctor of choice.
1-12 COMMITTEE AMENDMENT NO. 2 By: Armbrister
1-13 Amend H.B. 1089, on page 35, lines 1 through 8, by striking
1-14 SECTION 1.49 in its entirety and renumbering subsequent subsections
1-15 accordingly.
1-16 COMMITTEE AMENDMENT NO. 3 By: Armbrister
1-17 Amend H.B. 1089 as engrossed as follows:
1-18 (1) on page 13, line 15, after the word "self-insurer",
1-19 insert the phrase "in the previous year for administration of
1-20 self-insurance".
1-21 COMMITTEE AMENDMENT NO. 4 By: Whitmire
1-22 Amend H.B. 1089 by striking SECTION 1.19 in its entirety and
1-23 renumbering the subsequent sections accordingly.
1-24 A BILL TO BE ENTITLED
1-25 AN ACT
1-26 relating to the continuation and functions of the Texas Workers'
1-27 Compensation Commission; providing penalties.
1-28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-29 ARTICLE 1. TEXAS WORKERS' COMPENSATION COMMISSION
1-30 SECTION 1.01. Section 401.002, Labor Code, is amended to read
1-31 as follows:
1-32 Sec. 401.002. APPLICATION OF SUNSET ACT. The Texas Workers'
1-33 Compensation Commission is <and the Texas Workers' Compensation
1-34 Research Center are> subject to Chapter 325, Government Code (Texas
1-35 Sunset Act). Unless continued in existence as provided by that
1-36 chapter, the commission is abolished September 1, 2007 <1995, and
1-37 the research center and the legislative oversight committee are
1-38 abolished September 1, 1995>.
1-39 SECTION 1.02. Section 402.001(c), Labor Code, is amended to
1-40 read as follows:
1-41 (c) Three members of the commission must be employers of
1-42 labor and three members of the commission must be wage earners. A
1-43 person is not eligible for appointment as a member of the
1-44 commission if the person provides services subject to regulation by
1-45 the commission or charges fees that are subject to regulation by
1-46 the commission.
1-47 SECTION 1.03. Subchapter A, Chapter 402, Labor Code, is
1-48 amended by adding Section 402.0015 to read as follows:
1-49 Sec. 402.0015. TRAINING PROGRAM FOR COMMISSION MEMBERS.
1-50 (a) Before a member of the commission may assume the member's
1-51 duties, the member must complete the training program established
1-52 under this section.
1-53 (b) A training program established under this section must
1-54 provide information to the member regarding:
1-55 (1) the enabling legislation that created the
1-56 commission;
1-57 (2) the programs operated by the commission;
1-58 (3) the role and functions of the commission;
1-59 (4) the rules of the commission, with an emphasis on
1-60 the rules that relate to disciplinary and investigatory authority;
1-61 (5) the current budget for the commission;
1-62 (6) the results of the most recent formal audit of the
1-63 commission;
1-64 (7) the requirements of:
1-65 (A) the open meetings law, Chapter 551,
1-66 Government Code;
1-67 (B) the open records law, Chapter 552,
1-68 Government Code; and
2-1 (C) the administrative procedure law, Chapter
2-2 2001, Government Code;
2-3 (8) the requirements of the conflict of interest laws
2-4 and other laws relating to public officials; and
2-5 (9) any applicable ethics policies adopted by the
2-6 commission or the Texas Ethics Commission.
2-7 SECTION 1.04. Section 402.003, Labor Code, is amended to
2-8 read as follows:
2-9 Sec. 402.003. EFFECT OF LOBBYING ACTIVITY. A person may not
2-10 serve as a member of the commission or act as the general counsel
2-11 to the commission if the person is required to register as a
2-12 lobbyist under Chapter 305, Government Code, because of the
2-13 person's activities for compensation on behalf of a profession that
2-14 is regulated by or that has fees regulated by the commission <A
2-15 member of the commission may not be a lobbyist required to be
2-16 registered under Chapter 305, Government Code, if the primary
2-17 purpose of the person's employment is to influence the passage of
2-18 legislation>.
2-19 SECTION 1.05. Sections 402.005(a) and (c), Labor Code, are
2-20 amended to read as follows:
2-21 (a) It is a ground for removal from the commission if <that>
2-22 a member:
2-23 (1) does not have at the time of appointment the
2-24 qualifications required for appointment to the commission;
2-25 (2) does not maintain during service on the commission
2-26 the qualifications required for appointment to the commission;
2-27 (3) violates a prohibition established by Section
2-28 402.003 or 402.012;
2-29 (4) cannot <discharge> because of illness or
2-30 incapacity discharge the member's duties for a substantial part of
2-31 the term for which the member is appointed; or
2-32 (5) <(4)> is absent from more than half of the
2-33 regularly scheduled commission meetings that the member is eligible
2-34 to attend during a calendar year <unless the absence is excused by
2-35 a majority vote of the commission>.
2-36 (c) If the executive director of the commission knows that a
2-37 potential ground for removal exists, the executive director shall
2-38 notify the chairman of the commission of the potential ground. The
2-39 chairman shall then notify the governor and the attorney general
2-40 that a potential ground for removal exists. If the potential
2-41 ground for removal involves the chairman, the executive director
2-42 shall notify the next highest officer of the commission, who shall
2-43 notify the governor and the attorney general that a potential
2-44 ground for removal exists.
2-45 SECTION 1.06. Section 402.008(a), Labor Code, is amended to
2-46 read as follows:
2-47 (a) The governor shall designate a member of the commission
2-48 as the chairman of the commission <The commission shall elect one
2-49 of its members> to serve in that capacity <as chairman> for a
2-50 two-year term expiring February 1 of each odd-numbered year. The
2-51 governor shall alternate the chairmanship between the members who
2-52 are employers and the members who are wage earners.
2-53 SECTION 1.07. Subchapter A, Chapter 402, Labor Code, is
2-54 amended by adding Section 402.012 to read as follows:
2-55 Sec. 402.012. CONFLICT OF INTEREST. (a) An officer,
2-56 employee, or paid consultant of a Texas trade association whose
2-57 members provide services subject to regulation by the commission or
2-58 provide services whose fees are subject to regulation by the
2-59 commission may not be a member of the commission or an employee of
2-60 the commission who is exempt from the state's position
2-61 classification plan or is compensated at or above the amount
2-62 prescribed by the General Appropriations Act for step 1, salary
2-63 group 17, of the position classification salary schedule.
2-64 (b) On acceptance of appointment to the commission, an
2-65 appointee who is an officer, employee, or paid consultant of a
2-66 Texas trade association described by Subsection (a) must resign the
2-67 position or terminate the contract with the trade association.
2-68 (c) For the purposes of this section, "Texas trade
2-69 association" means a nonprofit, cooperative, and voluntarily joined
2-70 association of business or professional competitors in this state
3-1 designed to assist its members and its industry or profession in
3-2 dealing with mutual business or professional problems and in
3-3 promoting their common interest. The term does not include a labor
3-4 union or an employees' association.
3-5 SECTION 1.08. Section 402.023, Labor Code, is amended to
3-6 read as follows:
3-7 Sec. 402.023. COMPLAINT INFORMATION. (a) The executive
3-8 director shall keep an information file about each written
3-9 complaint filed with the commission that is unrelated to a specific
3-10 workers' compensation claim. The information must include:
3-11 (1) the date the complaint is received;
3-12 (2) the name of the complainant;
3-13 (3) the subject matter of the complaint;
3-14 (4) a record of all persons contacted in relation to
3-15 the complaint;
3-16 (5) a summary of the results of the review or
3-17 investigation of the complaint; and
3-18 (6) for complaints for which the commission took no
3-19 action, an explanation of the reason the complaint was closed
3-20 without action.
3-21 (b) For each written <The commission shall notify the
3-22 parties to a> complaint that is unrelated to a specific workers'
3-23 compensation claim that the commission has authority to resolve,
3-24 the executive director shall provide to the person filing the
3-25 complaint and the person about whom the complaint is made
3-26 information about the commission's policies and procedures relating
3-27 to complaint investigation and resolution. The commission, <of the
3-28 status of the complaint> at least quarterly and until final
3-29 disposition of the complaint, shall notify those persons about the
3-30 status of the complaint unless the notice would jeopardize an
3-31 undercover investigation.
3-32 SECTION 1.09. Section 402.024, Labor Code, is amended to
3-33 read as follows:
3-34 Sec. 402.024. PUBLIC PARTICIPATION. (a) The commission
3-35 shall develop and implement policies that provide the public with a
3-36 reasonable opportunity to appear before the commission and to speak
3-37 on issues under the general jurisdiction of the commission.
3-38 (b) The commission shall comply with federal and state laws
3-39 related to program and facility accessibility.
3-40 (c) In addition to compliance with Subsection (a), the
3-41 <The> executive director shall prepare and maintain a written plan
3-42 that describes how a person who does not speak English <or who has
3-43 a physical, mental, or developmental disability> may be provided
3-44 reasonable access to the commission's programs and services
3-45 <workers' compensation proceedings>.
3-46 <(c) Section 401.011(16) does not apply to the use of
3-47 "disability" in Subsection (b).>
3-48 SECTION 1.10. Section 402.041, Labor Code, is amended by
3-49 adding Subsection (d) to read as follows:
3-50 (d) The commission shall develop and implement policies that
3-51 clearly separate the policymaking responsibilities of the
3-52 commission and the management responsibilities of the executive
3-53 director and the staff of the commission.
3-54 SECTION 1.11. Section 402.044, Labor Code, is amended to
3-55 read as follows:
3-56 Sec. 402.044. CAREER LADDER; ANNUAL PERFORMANCE EVALUATIONS.
3-57 (a) The executive director shall develop an intra-agency career
3-58 ladder program that addresses opportunities for mobility and
3-59 advancement for employees within the commission. The program shall
3-60 require intra-agency postings of all <nonentry level> positions
3-61 concurrently with any public posting.
3-62 (b) The executive director shall develop a system of annual
3-63 performance evaluations that are based on documented employee
3-64 performance. All merit pay for commission employees must be based
3-65 on the system established under this subsection.
3-66 SECTION 1.12. Section 402.045, Labor Code, is amended to
3-67 read as follows:
3-68 Sec. 402.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
3-69 (a) The executive director shall prepare and maintain a written
3-70 policy statement <approved by the commission> to ensure
4-1 implementation of a program of equal employment opportunity under
4-2 which all personnel transactions are made without regard to race,
4-3 color, disability, sex, religion, age, or national origin. The
4-4 policy statement must include:
4-5 (1) personnel policies, including policies related to
4-6 recruitment, evaluation, selection, appointment, training, and
4-7 promotion of personnel that are in compliance with the requirements
4-8 of Chapter 21;
4-9 (2) a comprehensive analysis of the commission work
4-10 force that meets federal and state guidelines <of the commission's
4-11 work force>;
4-12 (3) procedures by which a determination can be made of
4-13 significant underuse in the commission <commission's> work force of
4-14 all persons for whom federal or state guidelines encourage a more
4-15 equitable balance; and
4-16 (4) reasonable methods to appropriately address those
4-17 areas of <significant> underuse <appropriately>.
4-18 (b) A policy statement prepared under this section must:
4-19 (1) cover an annual period;
4-20 (2) be updated <at least> annually; <and>
4-21 (3) be reviewed by the Commission on Human Rights for
4-22 compliance with Subsection (a)(1); and
4-23 (4) be filed with the governor's office.
4-24 (c) The governor's office shall deliver a biennial report to
4-25 the legislature based on the information received under Subsection
4-26 (b) <this section>. The report may be made separately or as part
4-27 of other biennial reports made to the legislature.
4-28 SECTION 1.13. Subchapter D, Chapter 402, Labor Code, is
4-29 amended by adding Section 402.0665 to read as follows:
4-30 Sec. 402.0665. LEGISLATIVE OVERSIGHT. The legislature may
4-31 adopt requirements relating to legislative oversight of the
4-32 commission and the workers' compensation system of this state. The
4-33 commission shall comply with any requirements adopted by the
4-34 legislature under this section.
4-35 SECTION 1.14. Section 402.068, Labor Code, is amended to
4-36 read as follows:
4-37 Sec. 402.068. DELEGATION OF RIGHTS AND DUTIES <PROHIBITED>.
4-38 Except as expressly provided by this subchapter <Section 402.065>,
4-39 the commission may not delegate rights and duties imposed on it by
4-40 this subchapter.
4-41 SECTION 1.15. Section 402.069, Labor Code, is amended to
4-42 read as follows:
4-43 Sec. 402.069. QUALIFICATIONS AND STANDARDS OF CONDUCT
4-44 INFORMATION. The executive director <commission> shall provide to
4-45 <its> members of the commission and commission employees, as often
4-46 as necessary, information regarding their:
4-47 (1) qualifications for office or employment under this
4-48 subtitle; and
4-49 (2) responsibilities under applicable law relating to
4-50 standards of conduct for state officers or employees.
4-51 SECTION 1.16. Section 402.070, Labor Code, is amended to
4-52 read as follows:
4-53 Sec. 402.070. ANNUAL REPORT. (a) The commission shall
4-54 prepare <file> annually <with the governor and the presiding
4-55 officer of each house of the legislature> a complete and detailed
4-56 written report accounting for all funds received and disbursed by
4-57 the commission during the preceding fiscal year.
4-58 (b) The report required under this section must meet the
4-59 reporting requirements applicable to financial reporting that are
4-60 <be in the form and reported in the time> provided by the General
4-61 Appropriations Act.
4-62 SECTION 1.17. Subchapter D, Chapter 402, Labor Code, is
4-63 amended by adding Section 402.073 to read as follows:
4-64 Sec. 402.073. COOPERATION WITH STATE OFFICE OF
4-65 ADMINISTRATIVE HEARINGS. (a) The commission and the chief
4-66 administrative law judge of the State Office of Administrative
4-67 Hearings by rule shall adopt a memorandum of understanding
4-68 governing administrative procedure law hearings under this subtitle
4-69 conducted by the State Office of Administrative Hearings in the
4-70 manner provided for a contested case hearing under Chapter 2001,
5-1 Government Code (the administrative procedure law).
5-2 (b) In a case in which a hearing is conducted by the State
5-3 Office of Administrative Hearings under Section 411.049, 413.031,
5-4 or 415.034, the administrative law judge who conducts the hearing
5-5 for the State Office of Administrative Hearings shall enter the
5-6 final decision in the case after completion of the hearing.
5-7 (c) In a case in which a hearing is conducted in conjunction
5-8 with Section 402.072, 407.046, or 408.023, and in other cases under
5-9 this subtitle that are not subject to Subsection (b), the
5-10 administrative law judge who conducts the hearing for the State
5-11 Office of Administrative Hearings shall propose a decision to the
5-12 commission for final consideration and decision by the commission.
5-13 SECTION 1.18. Section 402.091(d), Labor Code, is amended to
5-14 read as follows:
5-15 (d) An offense under this section may be prosecuted in a
5-16 court in<:>
5-17 <(1) Travis County; or>
5-18 <(2)> the county where the information was unlawfully
5-19 received, published, disclosed, or distributed.
5-20 SECTION 1.19. Subchapter E, Chapter 402, Labor Code, is
5-21 amended by adding Section 402.092 to read as follows:
5-22 Sec. 402.092. INVESTIGATION FILES CONFIDENTIAL.
5-23 (a) Information maintained in the investigation files of the
5-24 commission is confidential and may not be disclosed except:
5-25 (1) in a criminal proceeding;
5-26 (2) in a hearing conducted by the commission;
5-27 (3) on a judicial determination of good cause; or
5-28 (4) to a governmental agency, political subdivision,
5-29 or regulatory body if the disclosure is necessary or proper for the
5-30 enforcement of the laws of this or another state or of the United
5-31 States.
5-32 (b) Commission investigation files are not open records for
5-33 purposes of Chapter 552, Government Code.
5-34 (c) Information in an investigation file that is information
5-35 in or derived from a claim file, or an employer injury report or
5-36 occupational disease report, is governed by the confidentiality
5-37 provisions relating to that information.
5-38 (d) For purposes of this section, "investigation file" means
5-39 any information compiled or maintained by the commission with
5-40 respect to a commission investigation authorized by law.
5-41 SECTION 1.20. Subchapter E, Chapter 406, Labor Code, is
5-42 amended by adding Section 406.097 to read as follows:
5-43 Sec. 406.097. EXECUTIVE EMPLOYEES OF CERTAIN BUSINESS
5-44 ENTITIES. (a) A sole proprietor, partner, or corporate executive
5-45 officer of a business entity that elects to provide workers'
5-46 compensation insurance coverage is entitled to benefits under that
5-47 coverage as an employee unless the sole proprietor, partner, or
5-48 corporate executive officer is specifically excluded from coverage
5-49 through an endorsement to the insurance policy or certificate of
5-50 authority to self-insure.
5-51 (b) The dual capacity doctrine does not apply to a corporate
5-52 executive officer with an equity ownership in the covered business
5-53 entity of at least 25 percent and will not invalidate the exclusion
5-54 of such a corporate executive officer from coverage under
5-55 Subsection (a).
5-56 (c) A sole proprietor or partner of a covered business
5-57 entity or a corporate officer with an equity ownership in a covered
5-58 business entity of at least 25 percent may be excluded from
5-59 coverage under this section notwithstanding Section 406.096.
5-60 SECTION 1.21. Sections 407.046(b) and (c), Labor Code, are
5-61 amended to read as follows:
5-62 (b) If the commission believes that a ground exists to
5-63 revoke a certificate of authority to self-insure, the commission
5-64 shall refer the matter to the State Office of Administrative
5-65 Hearings. That office shall hold a hearing to determine if the
5-66 certificate should be revoked. The hearing shall be conducted in
5-67 the manner provided for a contested case hearing under Chapter
5-68 2001, Government Code (the administrative procedure law
5-69 <Administrative Procedure and Texas Register Act (Article 6252-13a,
5-70 Vernon's Texas Civil Statutes>).
6-1 (c) The State Office of Administrative Hearings <commission>
6-2 shall notify the certified self-insurer of the hearing and the
6-3 grounds not later than the 30th day before the scheduled hearing
6-4 date.
6-5 SECTION 1.22. Section 407.103(b), Labor Code, is amended to
6-6 read as follows:
6-7 (b) To determine the tax base of a certified self-insurer
6-8 for purposes of this chapter, the director shall multiply the
6-9 amount of the certified self-insurer's liabilities for workers'
6-10 compensation claims incurred in the previous year, including claims
6-11 incurred but not reported, plus the amount of expense incurred by
6-12 the certified self-insurer, including legal costs, by 1.02 <each
6-13 certified self-insurer shall report its payroll by individual
6-14 workers' compensation risk code classifications in its application
6-15 for certification and in its annual reports to the commission. The
6-16 commission shall compute the estimated manual premium for the
6-17 certified self-insurer using the workers' compensation insurance
6-18 rates established by the State Board of Insurance. The commission
6-19 shall compute the certified self-insurer's tax base by multiplying
6-20 the estimated manual premium by 0.75>.
6-21 SECTION 1.23. Section 407.122, Labor Code, is amended by
6-22 amending Subsections (b) and (c) and by adding Subsection (d) to
6-23 read as follows:
6-24 (b) The board of directors is composed of the following
6-25 voting members:
6-26 (1) three <two> certified self-insurers;
6-27 (2) one commission member representing wage earners;
6-28 (3) one commission member representing employers; and
6-29 (4) <the executive director of the commission; and>
6-30 <(5)> the public counsel of the office of public
6-31 insurance counsel.
6-32 (c) The executive director of the commission and the
6-33 director of the division of self-insurance regulation serve
6-34 <serves> as <a> nonvoting members <member> of the board of
6-35 directors.
6-36 (d) A member of the board of directors or a member of the
6-37 staff of the board of directors is not liable in a civil action for
6-38 an act performed in good faith in the execution of that person's
6-39 powers or duties.
6-40 SECTION 1.24. Section 407.126, Labor Code, is amended to
6-41 read as follows:
6-42 Sec. 407.126. Trust Fund; Fee; SCHEDULE. (a) Each member
6-43 of the association shall be assessed a fee, based on total amount
6-44 of income benefits payments made in this state for the preceding
6-45 reported calendar year, to create, over a period of 10 <five> years
6-46 beginning January 1, 1993, a Texas certified self-insurer guaranty
6-47 trust fund of at least $1 million for the emergency payment of the
6-48 compensation liabilities of an impaired employer. The fund may not
6-49 exceed $2 million.
6-50 (b) The board of directors shall adopt a year-by-year
6-51 schedule of assessments to meet the 10-year funding goal of the
6-52 trust fund.
6-53 (c) The assessment for the first year after an employer is
6-54 issued a certificate of authority to self-insure shall be based on
6-55 the income benefit payments paid by the employer's insurance
6-56 carrier on the employer's policy in the year before the certificate
6-57 was issued.
6-58 (d) <(c)> The board of directors shall administer the trust
6-59 fund in accordance with rules adopted by the commission.
6-60 SECTION 1.25. Section 408.023(b), Labor Code, is amended to
6-61 read as follows:
6-62 (b) The commission shall establish criteria for deleting a
6-63 doctor from the list of approved doctors. The criteria may include
6-64 anything the commission considers relevant, including:
6-65 (1) sanctions of the doctor by the commission for
6-66 violations of Chapter 413 or Chapter 415;
6-67 (2) sanctions by the Medicare or Medicaid program for:
6-68 (A) substandard medical care;
6-69 (B) overcharging; or
6-70 (C) overutilization of medical services;
7-1 (3) evidence from the commission's medical records
7-2 that the doctor's charges, fees, diagnoses, or treatments are
7-3 substantially different from those the commission finds to be fair
7-4 and reasonable; and
7-5 (4) suspension of the doctor's license by the
7-6 appropriate licensing authority.
7-7 SECTION 1.26. Section 408.083, Labor Code, is amended to
7-8 read as follows:
7-9 Sec. 408.083. Termination of Right to Temporary Income,
7-10 Impairment Income, and Supplemental Income Benefits. (a) Except
7-11 as provided by Subsection (b), an <An> employee's eligibility for
7-12 temporary income benefits, impairment income benefits, and
7-13 supplemental income benefits terminates on the expiration of 401
7-14 weeks after the date of injury.
7-15 (b) If an employee incurs an occupational disease, the
7-16 employee's eligibility for temporary income benefits, impairment
7-17 income benefits, and supplemental income benefits terminates on the
7-18 expiration of 401 weeks after the date on which benefits began to
7-19 accrue.
7-20 SECTION 1.27. Section 408.122, Labor Code, is amended to
7-21 read as follows:
7-22 Sec. 408.122. Eligibility for Impairment Income Benefits;
7-23 DESIGNATED DOCTOR. (a) A claimant may not recover impairment
7-24 income benefits unless evidence of impairment based on an objective
7-25 clinical or laboratory finding exists. If the finding of
7-26 impairment is made by a doctor chosen by the claimant and the
7-27 finding is contested, a designated doctor or a doctor selected by
7-28 the insurance carrier must be able to confirm the objective
7-29 clinical or laboratory finding on which the finding of impairment
7-30 is based.
7-31 (b) To be eligible to serve as a designated doctor, a doctor
7-32 must meet specific qualifications, including training in the
7-33 determination of impairment ratings. The executive director shall
7-34 develop qualification standards and administrative policies to
7-35 implement this subsection, and the commission may adopt rules as
7-36 necessary.
7-37 (c) If a dispute exists as to whether the employee has
7-38 reached maximum medical improvement, the commission shall direct
7-39 the employee to be examined by a designated doctor chosen by mutual
7-40 agreement of the parties. If the parties are unable to agree on a
7-41 designated doctor, the commission shall direct the employee to be
7-42 examined by a designated doctor chosen by the commission. The
7-43 designated doctor shall report to the commission. The report of
7-44 the designated doctor has presumptive weight, and the commission
7-45 shall base its determination of whether the employee has reached
7-46 maximum medical improvement on the report unless the great weight
7-47 of the other medical evidence is to the contrary.
7-48 SECTION 1.28. Section 408.125, Labor Code, is amended by
7-49 adding Subsection (f) to read as follows:
7-50 (f) To avoid undue influence on a person selected as a
7-51 designated doctor under this section, only the injured employee or
7-52 an appropriate member of the staff of the commission may
7-53 communicate with the designated doctor about the case regarding the
7-54 injured employee's medical condition or history before the
7-55 examination of the injured employee by the designated doctor.
7-56 After that examination is completed, communication with the
7-57 designated doctor regarding the injured employee's medical
7-58 condition or history may be made only through appropriate
7-59 commission staff members. The designated doctor may initiate
7-60 communication with any doctor who has previously treated or
7-61 examined the injured employee for the work-related injury.
7-62 SECTION 1.29. Section 409.005, Labor Code, is amended to
7-63 read as follows:
7-64 Sec. 409.005. <Employer> Report of Injury; Administrative
7-65 Violation. (a) An employer shall <file a written> report to
7-66 <with> the <commission and the> employer's insurance carrier if:
7-67 (1) an injury results in the absence of an employee of
7-68 that employer from work for more than one day; or
7-69 (2) an employee of the employer notifies that employer
7-70 of an occupational disease under Section 409.001.
8-1 (b) The report under Subsection (a) must be made <mailed or
8-2 delivered to the commission and the insurance carrier> not later
8-3 than the eighth day after:
8-4 (1) the employee's absence from work for more than one
8-5 day due to an injury; or
8-6 (2) the day on which the employer receives notice
8-7 under Section 409.001 that the employee has contracted an
8-8 occupational disease.
8-9 (c) The <A report required under this section may not be
8-10 considered to be an admission by or evidence against an> employer
8-11 shall deliver a written copy of the report under Subsection (a) to
8-12 the injured employee at the time that the report is made to the <or
8-13 an> insurance carrier <in a proceeding before the commission or a
8-14 court in which the facts set out in the report are contradicted by
8-15 the employer or insurance carrier>.
8-16 (d) The insurance carrier shall file the report of the
8-17 injury on behalf of the policyholder. Except as provided by
8-18 Subsection (e), the insurance carrier must electronically file the
8-19 report with the commission not later than the seventh day after the
8-20 date on which the carrier receives the report from the employer.
8-21 (e) The executive director may waive the electronic filing
8-22 requirement under Subsection (d) and allow an insurance carrier to
8-23 mail or deliver the report to the commission not later than the
8-24 seventh day after the date on which the carrier receives the report
8-25 from the employer.
8-26 (f) A report required under this section may not be
8-27 considered to be an admission by or evidence against an employer or
8-28 an insurance carrier in a proceeding before the commission or a
8-29 court in which the facts set out in the report are contradicted by
8-30 the employer or insurance carrier.
8-31 (g) In addition to any information required under Subsection
8-32 (h), the report provided to the injured employee under Subsection
8-33 (c) must contain a summary written in plain language of the
8-34 employee's statutory rights and responsibilities under this
8-35 subtitle.
8-36 (h) <(d)> The commission may adopt rules relating to:
8-37 (1) the information that must be contained in a report
8-38 required under this section, including the summary of rights and
8-39 responsibilities required under Subsection (g); and
8-40 (2) the development and implementation of an
8-41 electronic filing system for injury reports under this section.
8-42 (i) <(e)> An employer and insurance carrier shall file
8-43 subsequent reports as required by commission rule.
8-44 (j) <(f)> A person commits a violation if the person fails
8-45 to comply with this section unless good cause exists. A violation
8-46 under this subsection is a Class D administrative violation.
8-47 SECTION 1.30. Subchapter A, Chapter 409, Labor Code, is
8-48 amended by adding Section 409.013 to read as follows:
8-49 Sec. 409.013. PLAIN LANGUAGE INFORMATION; NOTIFICATION OF
8-50 INJURED WORKER. (a) The commission shall develop information for
8-51 public dissemination about the benefit process and the compensation
8-52 procedures established under this chapter. The information must be
8-53 written in plain language and must be available in English and
8-54 Spanish.
8-55 (b) On receipt of a report under Section 409.005, the
8-56 commission shall contact the affected employee by mail or by
8-57 telephone and shall provide the information required under
8-58 Subsection (a) to that employee, together with any other
8-59 information that may be prepared by the commission for public
8-60 dissemination that relates to the employee's situation, such as
8-61 information relating to back injuries or occupational diseases.
8-62 SECTION 1.31. Subchapter C, Chapter 409, Labor Code, is
8-63 amended to read as follows:
8-64 SUBCHAPTER C. OMBUDSMAN PROGRAM
8-65 Sec. 409.041. Ombudsman Program<; ADMINISTRATIVE VIOLATION>.
8-66 (a) The commission shall maintain an ombudsman program as provided
8-67 by this subchapter to assist injured workers and persons claiming
8-68 death benefits in obtaining benefits under this subtitle.
8-69 (b) An ombudsman shall:
8-70 (1) meet with or otherwise provide information to
9-1 injured workers;
9-2 (2) investigate complaints;
9-3 (3) communicate with employers, insurance carriers,
9-4 and health care providers on behalf of injured workers; and
9-5 (4) assist unrepresented claimants, employers, and
9-6 other parties to enable those persons to protect their rights in
9-7 the workers' compensation system.
9-8 Sec. 409.042. DESIGNATION AS OMBUDSMAN; ELIGIBILITY AND
9-9 TRAINING REQUIREMENTS; CONTINUING EDUCATION REQUIREMENTS.
9-10 (a) <(c)> At least one specially qualified employee in each
9-11 commission office shall be designated an ombudsman who shall
9-12 perform the duties under this section as the person's primary
9-13 responsibility.
9-14 (b) To be eligible for designation as an ombudsman, a person
9-15 must:
9-16 (1) demonstrate satisfactory knowledge of the
9-17 requirements of:
9-18 (A) this subtitle and the provisions of Subtitle
9-19 C that relate to claims management;
9-20 (B) other laws relating to workers'
9-21 compensation; and
9-22 (C) rules adopted under this subtitle and the
9-23 laws described under Subdivision (1)(B);
9-24 (2) have demonstrated experience in handling and
9-25 resolving problems for the general public;
9-26 (3) possess strong interpersonal skills; and
9-27 (4) have at least three years of demonstrated
9-28 experience in the field of workers' compensation.
9-29 (c) The commission by rule shall adopt training guidelines
9-30 and continuing education requirements for ombudsmen. Training
9-31 provided under this subsection must:
9-32 (1) include education regarding this subtitle, rules
9-33 adopted under this subtitle, and appeals panel decisions, with
9-34 emphasis on benefits and the dispute resolution process; and
9-35 (2) require an ombudsman undergoing training to be
9-36 observed and monitored by an experienced ombudsman during daily
9-37 activities conducted under this subchapter.
9-38 Sec. 409.043. EMPLOYER NOTIFICATION; ADMINISTRATIVE
9-39 VIOLATION. (a) <(d)> Each employer shall notify its employees of
9-40 the ombudsman program in a manner prescribed by the commission.
9-41 (b) An employer commits a violation if the employer fails to
9-42 comply with this section <subsection>. A violation under this
9-43 section <subsection> is a Class C administrative violation.
9-44 Sec. 409.044 <409.042>. PUBLIC INFORMATION. The commission
9-45 shall widely disseminate information about the ombudsman program.
9-46 SECTION 1.32. Section 411.032, Labor Code, is amended to
9-47 read as follows:
9-48 Sec. 411.032. Employer Injury and Occupational Disease
9-49 Report; ADMINISTRATIVE VIOLATION. (a) An employer shall file with
9-50 the commission a report of each:
9-51 (1) on-the-job injury that results in the employee's
9-52 absence from work for more than one day; and
9-53 (2) occupational disease of which the employer has
9-54 knowledge.
9-55 (b) The commission shall adopt rules and prescribe the form
9-56 and manner of reports filed under this section.
9-57 (c) An employer commits an administrative violation if the
9-58 employer fails to report to the commission as required under
9-59 Subsection (a) unless good cause exists, as determined by the
9-60 commission, for the failure. A violation under this subsection is
9-61 a Class D administrative violation.
9-62 SECTION 1.33. Section 411.034, Labor Code, is amended to
9-63 read as follows:
9-64 Sec. 411.034. Confidentiality Requirement; OFFENSE; PENALTY.
9-65 (a) The identity of an employee in a report filed under Section
9-66 411.032 is confidential and may not be disclosed as part of the job
9-67 safety information system.
9-68 (b) A person commits an offense if the person knowingly,
9-69 intentionally, or recklessly publishes, discloses, or distributes
9-70 information that is confidential under this section to a person not
10-1 authorized to receive the information.
10-2 (c) A person commits an offense if the person knowingly,
10-3 intentionally, or recklessly receives information that is
10-4 confidential under this section and that the person is not
10-5 authorized to receive.
10-6 (d) An offense under this section is a Class A misdemeanor.
10-7 (e) An offense under this section may be prosecuted in a
10-8 court in the county where the information was unlawfully received,
10-9 published, disclosed, or distributed.
10-10 (f) A district court in Travis County has jurisdiction to
10-11 enjoin the use, publication, disclosure, or distribution of
10-12 confidential information under this section.
10-13 SECTION 1.34. Section 411.041(b), Labor Code, is amended to
10-14 read as follows:
10-15 (b) Except as provided by Section 411.0415, an <An> employer
10-16 whose injury frequencies substantially exceed those that may
10-17 reasonably be expected in that employer's business or industry is
10-18 an extra-hazardous employer.
10-19 SECTION 1.35. Subchapter D, Chapter 411, Labor Code, is
10-20 amended by adding Section 411.0415 to read as follows:
10-21 Sec. 411.0415. EXEMPTION FOR CERTAIN EMPLOYERS; HEARING.
10-22 (a) The executive director may exclude from identification as an
10-23 extra-hazardous employer an employer who presents evidence
10-24 satisfactory to the commission that the injury frequencies of the
10-25 employer substantially exceed those that may reasonably be expected
10-26 in that employer's business or industry only because of a fatality
10-27 that:
10-28 (1) occurred because of factors beyond the employer's
10-29 control; or
10-30 (2) was outside the course and scope of the deceased
10-31 individual's employment.
10-32 (b) The commission by rule shall analyze and list fatalities
10-33 that may not be related to the work environment, including:
10-34 (1) heart attacks;
10-35 (2) common diseases of life;
10-36 (3) homicides;
10-37 (4) suicides;
10-38 (5) vehicle accidents involving a third party;
10-39 (6) common carrier accidents; and
10-40 (7) natural events.
10-41 (c) If the commission determines that the case history of
10-42 the employee's fatality indicates that the employer or the work
10-43 environment was a proximate cause of the fatality, the commission
10-44 may request a hearing under Section 411.049. If the hearing
10-45 establishes that a proximate cause of the fatality was a factor or
10-46 factors within the employer's control and was within the course and
10-47 scope of the employment, the commission may require the employer to
10-48 participate in the extra-hazardous employers program if that
10-49 fatality causes the employer to be designated as an extra-hazardous
10-50 employer.
10-51 SECTION 1.36. Section 411.045(a), Labor Code, is amended to
10-52 read as follows:
10-53 (a) Not earlier than six months or later than nine <Six>
10-54 months after the formulation of an accident prevention plan under
10-55 Section 411.043, the division shall conduct a follow-up inspection
10-56 of the employer's premises. The commission may require the
10-57 participation of the safety consultant who performed the initial
10-58 consultation and formulated the safety plan.
10-59 SECTION 1.37. Section 411.049(b), Labor Code, is amended to
10-60 read as follows:
10-61 (b) The hearing shall be conducted by the State Office of
10-62 Administrative Hearings in the manner provided for a contested case
10-63 under Chapter 2001, Government Code (the administrative procedure
10-64 law <Administrative Procedure and Texas Register Act (Article
10-65 6252-13a, Vernon's Texas Civil Statutes>) and is subject to
10-66 judicial review as provided by that chapter <Act>.
10-67 SECTION 1.38. Section 411.062, Labor Code, is amended to
10-68 read as follows:
10-69 Sec. 411.062. Field Safety Representative; Qualifications.
10-70 (a) The commission by rule shall establish qualifications for
11-1 field safety representatives. The rules must include education and
11-2 experience requirements for those representatives.
11-3 (b) Each <A> field safety representative must meet the
11-4 qualifications established by the commission <be:>
11-5 <(1) a college graduate with a bachelor's degree in
11-6 science or engineering;>
11-7 <(2) a registered professional engineer;>
11-8 <(3) a certified safety professional;>
11-9 <(4) a certified industrial hygienist;>
11-10 <(5) an individual with 10 years' experience in
11-11 occupational safety and health; or>
11-12 <(6) an individual who has completed a certified
11-13 training program in accident prevention services approved by the
11-14 division>.
11-15 SECTION 1.39. Chapter 412, Labor Code, is amended by adding
11-16 Section 412.0025 to read as follows:
11-17 Sec. 412.0025. DUTIES OF STATE AGENCIES. Each state agency
11-18 subject to this chapter shall actively manage the risks of that
11-19 agency by developing, implementing, and maintaining health and
11-20 safety programs and programs designed to assist employees who
11-21 sustain compensable injuries to return to work.
11-22 SECTION 1.40. Section 412.003(a), Labor Code, is amended to
11-23 read as follows:
11-24 (a) The division shall:
11-25 (1) administer guidelines adopted by the commission
11-26 for a comprehensive risk management program applicable to all state
11-27 agencies to reduce property and liability losses, including
11-28 workers' compensation losses; and
11-29 (2) review, verify, monitor, and approve risk
11-30 management programs adopted by state agencies.
11-31 SECTION 1.41. Section 412.007(b), Labor Code, is amended to
11-32 read as follows:
11-33 (b) The report must include:
11-34 (1) the frequency, severity, and aggregate amount of
11-35 open and closed claims in the preceding biennium by category of
11-36 risk, including final judgments;
11-37 (2) the identification of each state agency that has
11-38 not complied with the risk management guidelines and reporting
11-39 requirements of this chapter; and
11-40 (3) recommendations for the coordination and
11-41 administration of a comprehensive risk management program to serve
11-42 all state agencies, including recommendations for any necessary
11-43 statutory changes.
11-44 SECTION 1.42. Section 413.002, Labor Code, is amended by
11-45 adding Subsection (c) to read as follows:
11-46 (c) In monitoring health care providers who serve as
11-47 designated doctors under Chapter 408, the division shall evaluate
11-48 the compliance of those providers with this subtitle and with rules
11-49 adopted by the commission relating to medical policies, fee
11-50 guidelines, and impairment ratings.
11-51 SECTION 1.43. Section 413.031(d), Labor Code, is amended to
11-52 read as follows:
11-53 (d) A party to a medical dispute that remains unresolved
11-54 after a review of the medical service under this section is
11-55 entitled to a hearing. The hearing shall be conducted by the State
11-56 Office of Administrative Hearings in the manner provided for a
11-57 contested case under Chapter 2001, Government Code (the
11-58 administrative procedure law <Administrative Procedure and Texas
11-59 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes>).
11-60 SECTION 1.44. Subchapter D, Chapter 413, Labor Code, is
11-61 amended by adding Section 413.044 to read as follows:
11-62 Sec. 413.044. SANCTIONS ON DESIGNATED DOCTOR. In addition
11-63 to or in lieu of an administrative penalty under Section 415.021 or
11-64 a sanction imposed under Section 415.023, the commission may impose
11-65 sanctions against a person who serves as a designated doctor under
11-66 Chapter 408 who, after an evaluation conducted under Section
11-67 413.002(c), is determined by the division to be out of compliance
11-68 with this subtitle or with rules adopted by the commission relating
11-69 to medical policies, fee guidelines, and impairment ratings.
11-70 SECTION 1.45. Subchapter A, Chapter 415, Labor Code, is
12-1 amended by amending Sections 415.002 and 415.003 and by adding
12-2 Section 415.0035 to read as follows:
12-3 Sec. 415.002. Administrative Violation by an Insurance
12-4 Carrier. (a) An insurance carrier or its representative commits
12-5 an administrative violation if that person wilfully or
12-6 intentionally:
12-7 (1) misrepresents a provision of this subtitle to an
12-8 employee, an employer, a health care provider, or a legal
12-9 beneficiary;
12-10 (2) <fails to submit to the commission a settlement or
12-11 agreement of the parties;>
12-12 <(3) fails to timely notify the commission of the
12-13 termination or reduction of benefits and the reason for that
12-14 action;>
12-15 <(4)> terminates or reduces benefits without
12-16 substantiating evidence that the action is reasonable and
12-17 authorized by law;
12-18 (3) <(5)> instructs an employer not to file a document
12-19 required to be filed with the commission;
12-20 (4) <(6)> instructs or encourages an employer to
12-21 violate a claimant's right to medical benefits under this subtitle;
12-22 (5) <(7)> fails to tender promptly full death benefits
12-23 if a legitimate dispute does not exist as to the liability of the
12-24 insurance carrier;
12-25 (6) <(8)> allows an employer, other than a
12-26 self-insured employer, to dictate the methods by which and the
12-27 terms on which a claim is handled and settled;
12-28 (7) <(9)> fails to confirm medical benefits coverage
12-29 to a person or facility providing medical treatment to a claimant
12-30 if a legitimate dispute does not exist as to the liability of the
12-31 insurance carrier;
12-32 (8) <(10)> fails, without good cause, to attend a
12-33 dispute resolution proceeding within the commission;
12-34 (9) <(11)> attends a dispute resolution proceeding
12-35 within the commission without complete authority or fails to
12-36 exercise authority to effectuate agreement or settlement;
12-37 (10) <(12)> adjusts a workers' compensation claim in a
12-38 manner contrary to license requirements for an insurance adjuster,
12-39 including the requirements of Chapter 407, Acts of the 63rd
12-40 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas
12-41 Insurance Code), or the rules of the State Board of Insurance;
12-42 (11) <(13)> fails to process claims promptly in a
12-43 reasonable and prudent manner;
12-44 (12) <(14)> fails to initiate or reinstate benefits
12-45 when due if a legitimate dispute does not exist as to the liability
12-46 of the insurance carrier;
12-47 (13) <(15)> misrepresents the reason for not paying
12-48 benefits or terminating or reducing the payment of benefits;
12-49 (14) <(16)> dates documents to misrepresent the actual
12-50 date of the initiation of benefits;
12-51 (15) <(17)> makes a notation on a draft or other
12-52 instrument indicating that the draft or instrument represents a
12-53 final settlement of a claim if the claim is still open and pending
12-54 before the commission;
12-55 (16) <(18)> fails or refuses to pay benefits from week
12-56 to week as and when due directly to the person entitled to the
12-57 benefits;
12-58 (17) <(19)> fails to pay an order awarding benefits;
12-59 (18) <(20)> controverts a claim if the evidence
12-60 clearly indicates liability;
12-61 (19) <(21) unreasonably denies preauthorization
12-62 required under Section 413.014 or> unreasonably disputes the
12-63 reasonableness and necessity of health care;
12-64 (20) <(22)> violates a commission rule; or
12-65 (21) <(23)> fails to comply with a provision of this
12-66 subtitle.
12-67 (b) An insurance carrier or its representative does not
12-68 commit an administrative violation under Subsection (a)(6)<(8)> by
12-69 allowing an employer to:
12-70 (1) freely discuss a claim;
13-1 (2) assist in the investigation and evaluation of a
13-2 claim; or
13-3 (3) attend a proceeding of the commission and
13-4 participate at the proceeding in accordance with this subtitle.
13-5 Sec. 415.003. Administrative Violation by Health Care
13-6 Provider. A health care provider commits an administrative
13-7 violation if the person wilfully or intentionally:
13-8 (1) submits a charge for health care that was not
13-9 furnished;
13-10 (2) administers improper, unreasonable, or medically
13-11 unnecessary treatment or services;
13-12 (3) <fails or refuses to timely file required reports
13-13 or records;>
13-14 <(4)> makes an unnecessary referral;
13-15 (4) <(5) fails to disclose an interest as required by
13-16 Section 413.041;>
13-17 <(6)> violates the commission's fee and treatment
13-18 guidelines;
13-19 (5) <(7)> violates a commission rule; or
13-20 (6) <(8)> fails to comply with a provision of this
13-21 subtitle.
13-22 Sec. 415.0035. ADDITIONAL VIOLATIONS BY INSURANCE CARRIER OR
13-23 HEALTH CARE PROVIDER. (a) An insurance carrier or its
13-24 representative commits an administrative violation if that person:
13-25 (1) fails to submit to the commission a settlement or
13-26 agreement of the parties;
13-27 (2) fails to timely notify the commission of the
13-28 termination or reduction of benefits and the reason for that
13-29 action; or
13-30 (3) denies preauthorization in a manner that is not in
13-31 accordance with rules adopted by the commission under Section
13-32 413.014.
13-33 (b) A health care provider commits an administrative
13-34 violation if that person:
13-35 (1) fails or refuses to timely file required reports
13-36 or records; or
13-37 (2) fails to file with the commission the annual
13-38 disclosure statement required by Section 413.041.
13-39 (c) A violation under Subsection (a) is a Class C
13-40 administrative violation.
13-41 (d) A violation under Subsection (b) is a Class D
13-42 administrative violation.
13-43 SECTION 1.46. Section 415.034(a), Labor Code, is amended to
13-44 read as follows:
13-45 (a) On the request of the charged party or <at the
13-46 discretion of> the executive director <of the division of
13-47 hearings>, the State Office of Administrative Hearings <division of
13-48 hearings> shall set a hearing. The hearing shall be conducted in
13-49 the manner provided for a contested case under Chapter 2001,
13-50 Government Code (the administrative procedure law <Administrative
13-51 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
13-52 Civil Statutes>).
13-53 SECTION 1.47. Subtitle A, Title 5, Labor Code, is amended by
13-54 adding Chapter 418 to read as follows:
13-55 CHAPTER 418. CRIMINAL PENALTIES
13-56 Sec. 418.001. PENALTY FOR FRAUDULENTLY OBTAINING OR DENYING
13-57 BENEFITS. (a) A person commits an offense if the person, with the
13-58 intent to obtain or deny payment of benefits, including medical
13-59 benefits, under this subtitle or Subtitle C, for himself or
13-60 another, knowingly or intentionally:
13-61 (1) makes a false or misleading statement;
13-62 (2) misrepresents or conceals a material fact; or
13-63 (3) fabricates, alters, conceals, or destroys a
13-64 document other than a governmental record.
13-65 (b) An offense under Subsection (a) is:
13-66 (1) a Class A misdemeanor if the value of the benefits
13-67 is less than $1,500; and
13-68 (2) a state jail felony if the value of the benefits
13-69 is $1,500 or more.
13-70 Sec. 418.002. PENALTY FOR FRAUDULENTLY OBTAINING WORKERS'
14-1 COMPENSATION INSURANCE COVERAGE. (a) A person commits an offense
14-2 if the person, with the intent to obtain workers' compensation
14-3 insurance coverage under the workers' compensation insurance laws
14-4 of this state or to avoid payment of premiums due for that
14-5 coverage, for himself or another, knowingly or intentionally:
14-6 (1) makes a false statement;
14-7 (2) misrepresents or conceals a material fact; or
14-8 (3) makes a false entry in, fabricates, alters,
14-9 conceals, or destroys a document other than a governmental record.
14-10 (b) An offense under Subsection (a) is:
14-11 (1) a Class A misdemeanor if the amount of premium
14-12 avoided is less than $1,500; and
14-13 (2) a state jail felony if the amount of the premium
14-14 avoided is $1,500 or more.
14-15 (c) The court may order a person to pay restitution to an
14-16 insurance company, the Texas workers' compensation insurance
14-17 facility, or the Texas Workers' Compensation Insurance Fund if the
14-18 person commits an offense under this section.
14-19 SECTION 1.48. (a) The change in law made by Sections
14-20 402.001, 402.005, and 402.012, Labor Code, as amended or added by
14-21 this Act, in the qualifications and the grounds for removal of
14-22 persons appointed to the Texas Workers' Compensation Commission
14-23 applies only to a member appointed on or after September 1, 1995,
14-24 and does not affect the entitlement of a member appointed before
14-25 September 1, 1995, to continue to hold office for the term for
14-26 which the member was appointed.
14-27 (b) The training program required under Section 402.0015,
14-28 Labor Code, as added by this Act, shall be established not later
14-29 than January 1, 1996. Each person appointed to the commission on
14-30 or after that date must comply with the requirements imposed under
14-31 that section.
14-32 SECTION 1.49. The change in law made by this Act to Section
14-33 402.008, Labor Code, in the method of selecting the chairman of the
14-34 Texas Workers' Compensation Commission, applies only to a member
14-35 designated to serve in that capacity on or after September 1, 1995.
14-36 The change does not affect the entitlement of a member elected to
14-37 serve in that capacity before September 1, 1995, to continue to
14-38 serve in that capacity for the term for which the member was
14-39 elected.
14-40 SECTION 1.50. The Texas Workers' Compensation Commission
14-41 shall adopt rules as necessary to implement the changes in law made
14-42 by this Act to Title 5, Labor Code, not later than March 1, 1996.
14-43 SECTION 1.51. Section 406.097, Labor Code, as added by this
14-44 Act, applies only to an insurance policy or certificate of
14-45 authority to self-insure that is delivered, issued for delivery, or
14-46 renewed on or after January 1, 1996. A policy or certificate that
14-47 is delivered, issued for delivery, or renewed before January 1,
14-48 1996, is governed by the law as it existed immediately before
14-49 September 1, 1995, and that law is continued in effect for that
14-50 purpose.
14-51 SECTION 1.52. The change in law made by this Act to Section
14-52 408.083, Labor Code, applies only to an occupational disease for
14-53 which the date of injury occurs on or after September 1, 1995. A
14-54 claim based on an occupational disease for which the date of injury
14-55 occurs before September 1, 1995, is governed by the law in effect
14-56 on the date of injury for that occupational disease, and the former
14-57 law is continued in effect for that purpose.
14-58 SECTION 1.53. The change in law made by this Act to Section
14-59 409.005, Labor Code, applies only to an injury report regarding a
14-60 compensable injury that occurs on or after September 1, 1995. An
14-61 injury report for a compensable injury that occurs before that date
14-62 is governed by the law in effect on the date that the injury
14-63 occurred, and the former law is continued in effect for that
14-64 purpose.
14-65 SECTION 1.54. The change in law made by this Act to
14-66 Subchapter C, Chapter 409, Labor Code, in the qualifications of
14-67 persons who serve as ombudsmen under the Texas Workers'
14-68 Compensation Commission applies only to a person who is designated
14-69 as an ombudsman on or after September 1, 1995. The change does not
14-70 affect the entitlement of a person serving as an ombudsman
15-1 immediately before that date to continue to serve as an ombudsman
15-2 if that person continues to meet the qualifications for that
15-3 service that were in effect before September 1, 1995, and complies
15-4 with applicable continuing education requirements adopted by the
15-5 commission.
15-6 SECTION 1.55. The change in law made by Section 402.092,
15-7 Labor Code, as added by this Act, applies to information maintained
15-8 in investigation files of the Texas Workers' Compensation
15-9 Commission without regard to the date the information is collected,
15-10 compiled, developed, or otherwise becomes part of the investigation
15-11 file.
15-12 SECTION 1.56. The change in law made by this Act to Section
15-13 411.062, Labor Code, in the qualifications of a person who serves
15-14 as a field safety representative, applies only to a person employed
15-15 as a field safety representative on or after September 1, 1995.
15-16 The change does not affect the entitlement of a person serving as a
15-17 field safety representative immediately before that date to
15-18 continue to serve as a field safety representative if the person
15-19 continues to meet the qualifications for that service that were in
15-20 effect before September 1, 1995, and complies with applicable
15-21 continuing education requirements adopted by the Texas Workers'
15-22 Compensation Commission.
15-23 SECTION 1.57. A state agency subject to Section 412.0025,
15-24 Labor Code, as added by this Act, shall develop programs as
15-25 required by that section not later than January 1, 1996.
15-26 SECTION 1.58. A change in law under this Act that transfers
15-27 jurisdiction of a hearing to the State Office of Administrative
15-28 Hearings takes effect January 1, 1996. A hearing held before or
15-29 pending on December 31, 1995, is governed by the law in effect
15-30 immediately before September 1, 1995, and that law is continued in
15-31 effect for that purpose.
15-32 SECTION 1.59. (a) The change in law made to Subtitle A,
15-33 Title 5, Labor Code, by this Act applies only to a penalty or
15-34 sanction for an offense committed on or after the effective date of
15-35 this Act.
15-36 (b) For purposes of this section, an offense is committed
15-37 before the effective date of this Act if any element of the offense
15-38 occurs before that date.
15-39 (c) An offense committed before the effective date of this
15-40 Act is governed by the law in effect when the offense was
15-41 committed, and the former law is continued in effect for that
15-42 purpose.
15-43 ARTICLE 2. WORKERS' COMPENSATION INSURANCE COVERAGE
15-44 FOR CERTAIN GOVERNMENTAL EMPLOYEES
15-45 SECTION 2.01. Sections 501.002(b) and (c), Labor Code, are
15-46 amended to read as follows:
15-47 (b) For the purposes of this chapter and Chapter 451, the
15-48 individual state agency shall be considered the employer.
15-49 (c) For the purpose of applying the provisions listed by
15-50 Subsection (a) to this chapter, "insurer" or "employer" means
15-51 "state," "division," <or> "director," or "state agency," as
15-52 applicable.
15-53 SECTION 2.02. Section 501.022, Labor Code, is amended to
15-54 read as follows:
15-55 Sec. 501.022. TEXAS TECH UNIVERSITY EMPLOYEES. (a) An
15-56 eligible employee of Texas Tech University, Texas Tech University
15-57 Health Sciences Center <Research Farm, Texas Tech University School
15-58 of Medicine at Lubbock>, or another agency under the direction and
15-59 control of the board of regents of Texas Tech University and Texas
15-60 Tech University Health Sciences Center is entitled to participate
15-61 in the workers' compensation program for state employees provided
15-62 under this chapter.
15-63 (b) For purposes of this chapter, Texas Tech University is a
15-64 state agency and shall act in the capacity of employer.
15-65 (c) For purposes of this chapter, Texas Tech University
15-66 Health Sciences Center is a state agency and shall act in the
15-67 capacity of employer.
15-68 SECTION 2.03. Section 501.042, Labor Code, is amended to
15-69 read as follows:
15-70 Sec. 501.042. DIRECTOR AS <EMPLOYER AND> INSURER. (a) In
16-1 administering and enforcing this chapter, the director shall act in
16-2 the capacity of <employer and> insurer.
16-3 (b) The director shall act as an adversary before the
16-4 commission and courts and present the legal defenses and positions
16-5 of the state as an <employer and> insurer.
16-6 (c) For the purposes of this section, the director is
16-7 entitled to the legal counsel of the attorney general.
16-8 (d) The director is subject to the rules, orders, and
16-9 decisions of the commission in the same manner as an <a private
16-10 employer,> insurer<,> or association.
16-11 SECTION 2.04. Section 501.043(a), Labor Code, is amended to
16-12 read as follows:
16-13 (a) The director shall<:>
16-14 <(1)> adopt procedural rules and prescribe forms
16-15 necessary for the effective administration of this chapter<; and>
16-16 <(2) adopt and enforce reasonable rules for the
16-17 prevention of accidents and injuries>.
16-18 SECTION 2.05. The change in law made by this Act to Chapter
16-19 501, Labor Code, applies only to a claim for workers' compensation
16-20 benefits based on a compensable injury that occurs on or after
16-21 September 1, 1995. A claim based on a compensable injury that
16-22 occurs before that date is governed by the law in effect on the
16-23 date that the injury occurred, and the former law is continued in
16-24 effect for that purpose.
16-25 ARTICLE 3. CONFORMING AMENDMENTS
16-26 SECTION 3.01. Section 2003.001(3), Government Code, is
16-27 amended to read as follows:
16-28 (3) "State agency" means:
16-29 (A) a state board, commission, department, or
16-30 other agency that is subject to Chapter 2001; and
16-31 (B) to the extent provided by Title 5, Labor
16-32 Code, the Texas Workers' Compensation Commission.
16-33 SECTION 3.02. Section 2003.021, Government Code, is amended
16-34 by adding Subsection (c) to read as follows:
16-35 (c) The office shall conduct hearings under Title 5, Labor
16-36 Code, as provided by that title. In conducting hearings under
16-37 Title 5, Labor Code, the office shall consider the applicable
16-38 substantive rules and policies of the Texas Workers' Compensation
16-39 Commission. The office and the Texas Workers' Compensation
16-40 Commission shall enter into an interagency contract under Chapter
16-41 771 to pay the costs incurred by the office in implementing this
16-42 subsection.
16-43 ARTICLE 4. MISCELLANEOUS PROVISIONS
16-44 SECTION 4.01. The changes in law made by this Act to Chapter
16-45 2003, Government Code, and Sections 407.046, 411.049(b),
16-46 413.031(d), and 415.034, Labor Code, apply only to a hearing that
16-47 begins on or after January 1, 1996. A hearing held before or
16-48 pending on January 1, 1996, is governed by the law in effect
16-49 immediately before September 1, 1995, and that law is continued in
16-50 effect for that purpose.
16-51 SECTION 4.02. This Act takes effect September 1, 1995.
16-52 SECTION 4.03. The importance of this legislation and the
16-53 crowded condition of the calendars in both houses create an
16-54 emergency and an imperative public necessity that the
16-55 constitutional rule requiring bills to be read on three several
16-56 days in each house be suspended, and this rule is hereby suspended.
16-57 * * * * *