1-1  By:  Brimer, et al. (Senate Sponsor - Armbrister)     H.B. No. 1090
    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 by the following vote:
    1-5  Yeas 13, Nays 0; April 25, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the continuation and functions of the Texas Workers'
    1-9  Compensation Insurance Fund.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Section 1(4), Article 5.76-3, Insurance Code, is
   1-12  amended to read as follows:
   1-13              (4)  "Workers' compensation insurance" means the
   1-14  insurance for any risk under:
   1-15                    (A)  Subtitle A, Title 5, Labor Code (the Texas
   1-16  Workers' Compensation Act); <(Article 8308-1.01 et seq., Vernon's
   1-17  Texas Civil Statutes),>
   1-18                    (B)  the Longshore and Harbor Workers'
   1-19  Compensation Act (33 U.S.C.  Section 901);<,>
   1-20                    (C)  the Federal Mine Safety and Health Act of
   1-21  1977 (33 U.S.C.  Section 801 et seq.);<,> or
   1-22                    (D)  Chapter 504, Labor Code <Article 8309h,
   1-23  Revised Statutes>.
   1-24        SECTION 2.  Section 2, Article 5.76-3, Insurance Code, is
   1-25  amended to read as follows:
   1-26        Sec. 2.  Creation; operation.  (a)  The Texas Workers'
   1-27  Compensation Insurance Fund is created as a corporate body with the
   1-28  powers provided in this article and with all general corporate
   1-29  powers incident to its operation as a corporate body.
   1-30        (b)  Except as otherwise provided by this subsection, the
   1-31  fund is subject to the open meetings law, Chapter 551, Government
   1-32  Code <271, Acts of the 60th Legislature, Regular Session, 1967
   1-33  (Article 6252-17, Vernon's Texas Civil Statutes)>, and the open
   1-34  records law, Chapter 552, Government Code <424, Acts of the 63rd
   1-35  Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
   1-36  Texas Civil Statutes)>.  The board may hold closed meetings to
   1-37  consider and refuse to release information relating to claims,
   1-38  rates, the fund's underwriting guidelines, and other information
   1-39  that would give advantage to competitors or bidders.
   1-40        (c)  A decision by the fund to deny, cancel, or refuse to
   1-41  renew a policy or risk insured under Article 5.76-4 of this code is
   1-42  appealable to the board not later than the 30th day after the date
   1-43  on which the affected party received actual notice that the act
   1-44  occurred or that the decision was made.  The board shall hear the
   1-45  appeal not later than the 30th day after the date on which the
   1-46  request for hearing is made and shall notify the fund and the
   1-47  appellant in writing of the time and place of the hearing not later
   1-48  than the 10th day before the date of the hearing.  Not later than
   1-49  the 30th day after the last day of the hearing, the board shall
   1-50  affirm, reverse, or modify the act appealed to the board.  A
   1-51  hearing under this subsection does not suspend the operation of any
   1-52  act, ruling, decision, or order of the fund, unless the board
   1-53  specifically so orders.
   1-54        (d)  A decision of the board under this section <subsection>
   1-55  is subject to review by the commissioner of insurance in the manner
   1-56  provided by the administrative procedure law, Chapter 2001,
   1-57  Government Code <Administrative Procedure and Texas Register Act
   1-58  (Article 6252-13a, Vernon's Texas Civil Statutes)>.  The
   1-59  commissioner's review of a decision by the board does not suspend
   1-60  the operation of any act, ruling, decision, or order of the fund
   1-61  unless the commissioner specifically so orders on a showing by an
   1-62  aggrieved party of:
   1-63              (1)  immediate, irreparable injury, loss, or damage;
   1-64  and
   1-65              (2)  probable success on the merits.
   1-66        (e)  A person aggrieved by the decision of the commissioner
   1-67  may appeal that decision to the district court.  Judicial review
   1-68  under this section <subsection> is governed by the substantial
    2-1  evidence rule.
    2-2        (f) <(d)>  The fund is subject to Chapter 325, Government
    2-3  Code (Texas Sunset Act).  Unless continued in effect as provided by
    2-4  that chapter, the fund is abolished September 1, 2007 <1995>.
    2-5        (g) <(e)>  In addition to other rights of the fund under this
    2-6  article, the fund has the legal rights of a private person in this
    2-7  state and the power to sue in its own name.  No procedure
    2-8  established under this article is a prerequisite to the exercise of
    2-9  the power by the fund to sue.
   2-10        (h)  The fund shall prepare annually a complete and detailed
   2-11  written report accounting for all funds received and disbursed by
   2-12  the fund during the preceding fiscal year.  The annual report must
   2-13  meet the reporting requirements applicable to financial reporting
   2-14  provided by the General Appropriations Act.
   2-15        SECTION 3.  Section 3, Article 5.76-3, Insurance Code, is
   2-16  amended to read as follows:
   2-17        Sec. 3.  BOARD OF DIRECTORS.  (a)  The fund is governed by a
   2-18  board of directors composed of nine members, all of whom shall be
   2-19  citizens of this state.  The members shall be appointed by the
   2-20  governor with the advice and consent of the senate, and vacancies
   2-21  shall be filled in the same manner.  The members of the board of
   2-22  directors serve staggered six-year terms, with the terms of three
   2-23  members expiring February 1 of each odd-numbered year.
   2-24        (b)  Except as provided by Subsection (c) of this section, to
   2-25  be eligible for appointment as a member of the board a person must
   2-26  be a policyholder of the fund or an officer or employee of a
   2-27  policyholder and must maintain that status during the period of
   2-28  service on the board.  Failure to maintain that status disqualifies
   2-29  the board member and creates a vacancy on the board.
   2-30        (c)  The initial appointees to the board must be employers in
   2-31  this state.
   2-32        (d)  In making appointments to the board, the governor shall
   2-33  attempt to reflect the social, geographic, and economic diversity
   2-34  of the state.  To ensure balanced representation, the governor may
   2-35  consider the geographic location of a prospective appointee's
   2-36  domicile and the prospective appointee's experience in business and
   2-37  insurance matters and shall consider those factors in appointing
   2-38  members to fill vacancies on the board.  Appointments to the board
   2-39  shall be made without regard to the race, color, disability, sex,
   2-40  religion, age, or national origin of the appointees.
   2-41        (e)  A person may not serve as a member of the board if the
   2-42  person, an individual related to the person within the second
   2-43  degree by consanguinity or affinity, or an individual residing in
   2-44  the same household with the person:
   2-45              (1)  is required to be registered or licensed under
   2-46  this code;
   2-47              (2)  is employed by or acts as a consultant to a person
   2-48  required to be registered or licensed under this code;
   2-49              (3)  owns, controls, has a financial interest in, or
   2-50  participates in the management of an organization required to be
   2-51  registered or licensed under this code;
   2-52              (4)  receives a substantial tangible benefit from the
   2-53  fund or the Texas Department of Insurance; or
   2-54              (5)  is an officer, employee, or consultant of an
   2-55  association in the field of insurance<; or>
   2-56              <(6)  is required to register as a lobbyist under
   2-57  Chapter 305, Government Code>.
   2-58        (f)  It is a ground for removal from the board if a member:
   2-59              (1)  does not have at the time of appointment the
   2-60  qualifications required by Subsection (b) of this section;
   2-61              (2)  does not maintain during service on the board the
   2-62  qualifications required by Subsection (b) of this section;
   2-63              (3)  cannot because of illness or disability discharge
   2-64  the member's duties for a substantial part of the term for which
   2-65  the member is appointed; or
   2-66              (4)  is absent from more than half of the regularly
   2-67  scheduled board meetings that the member is eligible to attend
   2-68  during a calendar year.
   2-69        (g)  The validity of an action of the board is not affected
   2-70  by the fact that it is taken when a ground for removal of a board
    3-1  member exists.
    3-2        (h)  If the president has knowledge that a potential ground
    3-3  for removal exists, the president shall notify the chairman of the
    3-4  board of the potential ground.  The chairman shall then notify the
    3-5  governor and the attorney general that a potential ground for
    3-6  removal exists.  If the potential ground for removal involves the
    3-7  chairman, the president shall notify the next highest officer of
    3-8  the board, who shall notify the governor and the attorney general
    3-9  that a potential ground for removal exists.
   3-10        (i)  Subsection (e) of this section does not prohibit a
   3-11  person who is only a consumer of insurance or insurance products
   3-12  from serving as a member of the board.
   3-13        (j) <(g)>  A person who is ineligible to serve on the board
   3-14  under Subsection (e) of this section may not serve as a member of
   3-15  the board for one year after the date on which the condition that
   3-16  makes the person ineligible ends.
   3-17        (k) <(h)>  Each member shall receive actual and necessary
   3-18  travel expenses and expenses incurred in the performance of the
   3-19  member's duties as a member.
   3-20        (l) <(i)>  The governor shall designate a member of the board
   3-21  as the chairman of the board to serve in that capacity at the
   3-22  pleasure of the governor.  The members of the board shall elect
   3-23  annually from their number a <chairman, a> vice-chairman<,> and a
   3-24  secretary.
   3-25        (m) <(j)>  The board shall hold meetings at least once each
   3-26  month and at other times at the call of the chairman and at times
   3-27  established by board rule.  Special meetings may be called by any
   3-28  two members of the board on two days notice.
   3-29        (n) <(k)>  A majority of the board members constitutes a
   3-30  quorum.
   3-31        (o) <(l)>  The board shall maintain the principal office of
   3-32  the fund in Austin, Texas.
   3-33        (p) <(m)>  For cost control purposes and as is determined to
   3-34  be cost-effective, as many functions as possible shall be performed
   3-35  by the fund.
   3-36        (q)  A person may not serve as a member of the board or act
   3-37  as the general counsel to the board or the fund if the person is
   3-38  required to register as a lobbyist under Chapter 305, Government
   3-39  Code, because of the person's activities for compensation on behalf
   3-40  of any person or entity other than the fund.
   3-41        (r)  The board shall develop and implement policies that
   3-42  clearly separate the policymaking responsibilities of the board and
   3-43  the management responsibilities of the president and the staff of
   3-44  the fund.
   3-45        SECTION 4.  Article 5.76-3, Insurance Code, is amended by
   3-46  adding Section 3A to read as follows:
   3-47        Sec. 3A.  TRAINING PROGRAM FOR BOARD MEMBERS.  (a)  Before a
   3-48  member of the board may assume the member's duties, the member must
   3-49  complete the training program established under this section.
   3-50        (b)  A training program established under this section shall
   3-51  provide information to the member regarding:
   3-52              (1)  the enabling legislation that created the fund and
   3-53  the board;
   3-54              (2)  the programs operated by the fund;
   3-55              (3)  the role and functions of the fund;
   3-56              (4)  the current budget for the fund;
   3-57              (5)  the results of the most recent independent audit
   3-58  of the fund;
   3-59              (6)  the requirements of:
   3-60                    (A)  the open meetings law, Chapter 551,
   3-61  Government Code; and
   3-62                    (B)  the open records law, Chapter 552,
   3-63  Government Code;
   3-64              (7)  the requirements of the conflict of interest laws
   3-65  and other laws relating to members of the board; and
   3-66              (8)  any applicable ethics policies adopted by the fund
   3-67  or the Texas Ethics Commission.
   3-68        SECTION 5.  Section 4, Article 5.76-3, Insurance Code, is
   3-69  amended by adding Subsections (c), (d), and (e) to read as follows:
   3-70        (c)  The board shall appoint an internal auditor in
    4-1  compliance with Chapter 2102, Government Code.  The internal
    4-2  auditor serves at the pleasure of the board.
    4-3        (d)  If the fund obtains legal services through the use of
    4-4  outside counsel, the attorney general shall annually review the use
    4-5  of outside counsel by the fund to ensure that:
    4-6              (1)  the use of outside counsel does not result in a
    4-7  conflict of interest; and
    4-8              (2)  the persons used as outside counsel comply with
    4-9  state and federal policies regarding the treatment of persons who
   4-10  are members of minority groups.
   4-11        (e)  The board shall provide requested information to
   4-12  appropriate legislative committees in the manner requested by those
   4-13  committees.
   4-14        SECTION 6.  Section 6, Article 5.76-3, Insurance Code, is
   4-15  amended by adding Subsections (f)-(l) to read as follows:
   4-16        (f)  The president shall develop a career ladder program that
   4-17  addresses opportunities for mobility and advancement for employees
   4-18  within the fund.  The program shall require internal posting of all
   4-19  positions concurrently with any public posting.
   4-20        (g)  The president shall develop a system of annual
   4-21  performance evaluations that are based on documented employee
   4-22  performance.  All merit pay for fund employees must be based on the
   4-23  system established under this subsection.
   4-24        (h)  The president shall prepare and maintain a written
   4-25  policy statement to assure implementation of a program of equal
   4-26  employment opportunity under which all personnel transactions are
   4-27  made without regard to race, color, disability, sex, religion, age,
   4-28  or national origin.  The policy statement must include:
   4-29              (1)  personnel policies, including policies relating to
   4-30  recruitment, evaluation, selection, appointment, training, and
   4-31  promotion of personnel that are in compliance with the requirements
   4-32  of Chapter 21, Labor Code;
   4-33              (2)  a comprehensive analysis of the fund workforce
   4-34  that meets federal and state guidelines;
   4-35              (3)  procedures by which a determination can be made
   4-36  about the extent of underuse in the fund workforce of all persons
   4-37  for whom federal or state guidelines encourage a more equitable
   4-38  balance; and
   4-39              (4)  reasonable methods to appropriately address those
   4-40  areas of underuse.
   4-41        (i)  A policy statement prepared under Subsection (h) of this
   4-42  section must:
   4-43              (1)  cover an annual period;
   4-44              (2)  be updated annually;
   4-45              (3)  be reviewed annually by the Commission on Human
   4-46  Rights for compliance with Subsection (h)(1); and
   4-47              (4)  be filed with the governor's office.
   4-48        (j)  The governor's office shall deliver a biennial report to
   4-49  the legislature based on the information received under Subsection
   4-50  (i) of this section.  The report may be made separately or as a
   4-51  part of other biennial reports made to the legislature.
   4-52        (k)  The president shall provide to members of the board and
   4-53  to fund employees, as often as necessary, information regarding
   4-54  their qualification for office or employment under this article and
   4-55  their responsibilities under applicable laws relating to standards
   4-56  of conduct for board members or employees.
   4-57        (l)  In hiring employees for the fund under this article, the
   4-58  president shall ensure that the fund complies with the minority
   4-59  hiring practices guidelines adopted for state agencies and
   4-60  institutions by the General Appropriations Act.
   4-61        SECTION 7.  Section 7, Article 5.76-3, Insurance Code, is
   4-62  amended by adding Subsections (f) and (g) to read as follows:
   4-63        (f)  Notwithstanding any other provision of this code or
   4-64  another insurance law of this state, the fund is not required to
   4-65  appoint a local recording agent to act as an agent for the fund.
   4-66  An agent transacting business with the fund does so as an agent for
   4-67  the applicant and not as an agent for the fund.
   4-68        (g)  Information submitted to the fund by a licensed agent on
   4-69  behalf of an employer, including a policy expiration date, is the
   4-70  work product of that agent, and the fund may not use that
    5-1  information in any marketing or direct sales activity.  Except as
    5-2  required or permitted by the open records law, Chapter 552,
    5-3  Government Code, the fund may not provide information obtained from
    5-4  a licensed agent to any other licensed agent.  This subsection does
    5-5  not prevent an employer from designating another licensed agent or
    5-6  the fund as the agent of record and does not prevent the fund from
    5-7  using the information submitted to the fund under this subsection
    5-8  for the purpose of underwriting or fraud investigation.  The fund
    5-9  shall adopt reasonable guidelines in the plan of operation to
   5-10  implement this subsection.
   5-11        SECTION 8.  Sections 10(k) and (l), Article 5.76-3, Insurance
   5-12  Code, are amended to read as follows:
   5-13        (k)  The commission shall charge the policyholder for the
   5-14  reasonable cost of services provided under Subsections (e), <and>
   5-15  (f), and (h) of this section.  The fees for those services shall be
   5-16  set at a cost-reimbursement level including a reasonable allocation
   5-17  of the commission's administrative costs.
   5-18        (l)  The compliance and practices division of the commission
   5-19  shall enforce compliance with this section through the
   5-20  administrative violation proceedings under Chapter 415, Labor Code
   5-21  <Article 10, Texas Workers' Compensation Act (Article 8308-10.01 et
   5-22  seq., Vernon's Texas Civil Statutes)>.
   5-23        SECTION 9.  Sections 11(a) and (b), Article 5.76-3,
   5-24  Insurance Code, are amended to read as follows:
   5-25        (a)  The fund shall develop and implement a program to
   5-26  identify and investigate fraud and violations of this code relating
   5-27  to workers' compensation insurance by an applicant, policyholder,
   5-28  claimant, agent, <or> insurer, health care provider, or other
   5-29  person.   The fund shall contract with the commission to compile
   5-30  and maintain information necessary to detect practices or patterns
   5-31  of conduct that violate this code relating to the workers'
   5-32  compensation insurance or Subtitle A, Title 5, Labor Code (the
   5-33  Texas Workers' Compensation Act <(Article 8308-1.01 et seq.,
   5-34  Vernon's Texas Civil Statutes>).
   5-35        (b)  The fund may conduct investigations of <shall refer all>
   5-36  cases of suspected fraud and violations of this code relating to
   5-37  workers' compensation insurance.  The fund shall:
   5-38              (1)  coordinate its investigations with those conducted
   5-39  by the commission to avoid duplication of efforts; and
   5-40              (2)  refer cases that are not resolved by the fund to
   5-41  the commission to:
   5-42                    (A) <(1)>  perform any further investigations
   5-43  that are necessary under the circumstances;
   5-44                    (B) <(2)>  conduct administrative violation
   5-45  proceedings; and
   5-46                    (C) <(3)>  assess and collect penalties and
   5-47  restitution.
   5-48        SECTION 10.  Article 5.76-3, Insurance Code, is amended by
   5-49  adding Section 11A to read as follows:
   5-50        Sec. 11A.  INVESTIGATION FILES CONFIDENTIAL.
   5-51  (a)  Information maintained in the investigation files of the fund
   5-52  is confidential and may not be disclosed except:
   5-53              (1)  in a criminal proceeding;
   5-54              (2)  in a hearing conducted by the fund or the
   5-55  commission;
   5-56              (3)  on a judicial determination of good cause; or
   5-57              (4)  to a governmental agency, political subdivision,
   5-58  or regulatory body if the disclosure is necessary or proper for the
   5-59  enforcement of the laws of this or another state or of the United
   5-60  States.
   5-61        (b)  Fund investigation files are not open records for
   5-62  purposes of the open records law, Chapter 552, Government Code.
   5-63        (c)  Information in an investigation file that is information
   5-64  in or derived from a claim file, or an employer injury report or
   5-65  occupational disease report, is governed by the confidentiality
   5-66  provisions relating to that information.
   5-67        (d)  For purposes of this section, "investigation file" means
   5-68  any information compiled or maintained by the fund with respect to
   5-69  a fund investigation authorized by law.
   5-70        SECTION 11.  Section 16, Article 5.76-3, Insurance Code, is
    6-1  amended to read as follows:
    6-2        Sec. 16.  CANCELLATION AND NONRENEWAL.  The fund may cancel
    6-3  or refuse to renew coverage on a policyholder as provided by
    6-4  Section 406.008, Labor Code <in Section 3.28, Texas Workers'
    6-5  Compensation Act (Article 8308-3.28, Vernon's Texas Civil
    6-6  Statutes)>.
    6-7        SECTION 12.  Section 17(a), Article 5.76-3, Insurance Code,
    6-8  is amended to read as follows:
    6-9        (a)  Not later than March 1 of each subsequent year <the 30th
   6-10  day after the date on which the fund's fiscal year ends>, the board
   6-11  shall publish a report analyzing the fund's activities and fiscal
   6-12  condition during the preceding fiscal year  and shall file the
   6-13  report with the Texas Department of Insurance.  The board shall
   6-14  have an independent audit made of the annual <each such> report.
   6-15        SECTION 13.  Article 5.76-3, Insurance Code, is amended by
   6-16  adding Section 17A to read as follows:
   6-17        Sec. 17A.  ADDITIONAL AUDIT REQUIREMENTS; INTERNAL AUDIT
   6-18  REPORT.  (a)  The state auditor shall periodically identify issues
   6-19  related to the operational efficiency, effectiveness, and statutory
   6-20  compliance of the fund.  The fund shall include all issues
   6-21  identified by the state auditor in the fund's annual independent
   6-22  and internal audit plans.
   6-23        (b)  Each person who conducts an independent audit or
   6-24  internal audit of the fund shall send a copy of the audit report
   6-25  prepared by the person to the office of the state auditor.  The
   6-26  state auditor shall summarize the audit reports presented under
   6-27  this subsection in an annual memorandum to the Legislative Audit
   6-28  Committee.
   6-29        (c)  The internal auditor appointed under Section 4 of this
   6-30  article shall submit the internal audit report directly to the
   6-31  board and shall provide a summary of the report to the governor,
   6-32  lieutenant governor, and speaker of the house of representatives.
   6-33  The internal auditor's summary report must include an analysis of
   6-34  the use by the fund of historically underutilized businesses.  For
   6-35  purposes of this subsection, "historically underutilized business"
   6-36  has the meaning assigned by Section 1.02, State Purchasing and
   6-37  General Services Commission Act (Article 601b, Vernon's Texas Civil
   6-38  Statutes).
   6-39        SECTION 14.  Article 5.76-3, Insurance Code, is amended  by
   6-40  adding Sections 19A and 19B to read as follows:
   6-41        Sec. 19A.  PUBLIC INFORMATION; ACCESSIBILITY.  (a)  The fund
   6-42  shall prepare information of public interest describing the
   6-43  functions of the fund and the procedures by which complaints are
   6-44  filed with and resolved by the fund.  The fund shall make the
   6-45  information available to the public and appropriate state agencies.
   6-46        (b)  The board shall establish methods by which consumers and
   6-47  service recipients are notified of the name, mailing address, and
   6-48  telephone number of the fund for the purpose of directing
   6-49  complaints to the fund.  The board may provide for that
   6-50  notification:
   6-51              (1)  by a supplement or endorsement to a written
   6-52  policy;
   6-53              (2)  on a sign prominently displayed in the place of
   6-54  business of each regional office of the fund; or
   6-55              (3)  in a bill for services provided by the fund.
   6-56        (c)  The fund shall comply with federal and state laws
   6-57  related to program and facility accessibility.  The president shall
   6-58  also prepare and maintain a written plan that describes how a
   6-59  person who does not speak English can be provided reasonable access
   6-60  to the fund's programs and services.
   6-61        (d)  The board shall develop and implement policies that
   6-62  provide the public with a reasonable opportunity to appear before
   6-63  the board and to speak on any issue under the jurisdiction of the
   6-64  fund.
   6-65        Sec. 19B.  COMPLAINT RESOLUTION.  (a)  The fund shall keep
   6-66  information about each written complaint submitted to the fund.
   6-67  The information shall include:
   6-68              (1)  the date the complaint is received;
   6-69              (2)  the name of the complainant;
   6-70              (3)  the subject matter of the complaint;
    7-1              (4)  a record of all persons contacted in relation to
    7-2  the complaint;
    7-3              (5)  a summary of the results of the review or
    7-4  investigation of the complaint; and
    7-5              (6)  for complaints for which the fund took no action,
    7-6  an explanation of the reason the complaint was closed without
    7-7  action.
    7-8        (b)  For each written complaint that the fund has authority
    7-9  to resolve, the fund shall provide to the person filing the
   7-10  complaint and the persons or entities complained about the fund's
   7-11  policies and procedures pertaining to complaint investigation and
   7-12  resolution.  The fund, at least quarterly and until final
   7-13  disposition of the complaint, shall notify the person filing the
   7-14  complaint and the persons or entities complained about of the
   7-15  status of the complaint unless the notice would jeopardize an
   7-16  undercover investigation.
   7-17        SECTION 15.  Section 21(a), Article 5.76-3, Insurance Code,
   7-18  is amended to read as follows:
   7-19        (a)  The fund is an insurance company for purposes of
   7-20  Subtitle A, Title 5, Labor Code (the Texas Workers' Compensation
   7-21  Act) <(Article 8308-1.01 et seq., Vernon's Texas Civil Statutes)>.
   7-22        SECTION 16.  Article 5.76-4, Insurance Code, is amended by
   7-23  adding Subsections (g) and (h) to read as follows:
   7-24        (g)  If the fund suspects fraud or identifies conditions that
   7-25  may result in acts of fraud, the fund may require an applicant for
   7-26  workers' compensation insurance coverage who is identified as a
   7-27  risk for purposes of Subsection (b) of this article to insure all
   7-28  business entities that are commonly owned or commonly controlled by
   7-29  the applicant.
   7-30        (h)  The fund shall report the statistical and other
   7-31  information developed under Subsection (c) of this article on
   7-32  request to the Texas Workers' Compensation Research Center and the
   7-33  legislative oversight committee on workers' compensation, or to any
   7-34  successor entity for research and oversight of the workers'
   7-35  compensation system of this state.
   7-36        SECTION 17.  (a)  The training program adopted under Section
   7-37  3A, Article 5.76-3, Insurance Code, as added by this Act, for
   7-38  members of the board of directors of the Texas Workers'
   7-39  Compensation Insurance Fund applies only to a person who is
   7-40  appointed to that board on or after September 1, 1995.
   7-41        (b)  The president of the fund shall adopt personnel policies
   7-42  under Section 6, Article 5.76-3, Insurance Code, as amended by this
   7-43  Act, not later than January 1, 1996.
   7-44        (c)  The change in law made by this Act to Section 10(k),
   7-45  Article 5.76-3, Insurance Code, applies only to a fee for a
   7-46  follow-up inspection under Section 10(h), Article 5.76-3, Insurance
   7-47  Code, conducted on or after the effective date of this Act.
   7-48        (d)  The change in law made by Section 11A, Article 5.76-3,
   7-49  Insurance Code, as added by this Act, applies to information
   7-50  maintained in investigation files of the Texas workers'
   7-51  compensation insurance fund without regard to the date the
   7-52  information is collected, compiled, or developed or otherwise
   7-53  becomes part of the investigation file.
   7-54        (e)  The board of directors of the Texas Workers'
   7-55  Compensation Insurance Fund shall adopt a public information system
   7-56  under Section 19A, Article 5.76-3, Insurance Code, and a complaint
   7-57  resolution system under Section 19B, Article 5.76-3, Insurance
   7-58  Code, as added by this Act, not later than January 1, 1996.
   7-59        SECTION 18.  This Act takes effect September 1, 1995.
   7-60        SECTION 19.  The importance of this legislation and the
   7-61  crowded condition of the calendars in both houses create an
   7-62  emergency and an imperative public necessity that the
   7-63  constitutional rule requiring bills to be read on three several
   7-64  days in each house be suspended, and this rule is hereby suspended.
   7-65                               * * * * *