H.B. No. 1091
1-1 AN ACT
1-2 relating to the consolidation of the Texas Workers' Compensation
1-3 Research Center and the Legislative Oversight Committee for
1-4 workers' compensation and to the functions of the new entity.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 404, Labor Code, is amended to read as
1-7 follows:
1-8 CHAPTER 404. RESEARCH AND OVERSIGHT COUNCIL ON
1-9 <TEXAS> WORKERS' COMPENSATION <RESEARCH CENTER>
1-10 Sec. 404.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means the board of directors of the
1-12 Research and Oversight Council on <Texas> Workers' Compensation
1-13 <Research Center>.
1-14 (2) "Council" means the Research and Oversight Council
1-15 on Workers' Compensation.
1-16 (3) "Executive director" means the executive director
1-17 of the council <research center>.
1-18 Sec. 404.0015. APPLICATION OF SUNSET ACT. The Research and
1-19 Oversight Council on Workers' Compensation is subject to Chapter
1-20 325, Government Code (Texas Sunset Act). Unless continued in
1-21 existence as provided by that chapter, the council is abolished and
1-22 this chapter expires September 1, 2007.
1-23 Sec. 404.002. COUNCIL <RESEARCH CENTER>; GENERAL POWERS AND
1-24 DUTIES. (a) The Research and Oversight Council on <Texas>
2-1 Workers' Compensation <Research Center> is an advisory body to the
2-2 commission. The council <research center> shall be <constituted
2-3 and> operated in a manner that ensures that its research, findings,
2-4 and conclusions are factual, fair, and unbiased.
2-5 (b) The council <research center> shall conduct professional
2-6 studies and research related to:
2-7 (1) the delivery of benefits;
2-8 (2) litigation and controversy related to workers'
2-9 compensation;
2-10 (3) insurance rates and rate-making procedures;
2-11 (4) rehabilitation and reemployment of injured
2-12 workers;
2-13 (5) workplace health and safety issues;
2-14 (6) the quality and cost of medical benefits; <and>
2-15 (7) the Texas Workers' Compensation Insurance Fund and
2-16 the impact of that fund on the workers' compensation system; and
2-17 (8) other matters relevant to the cost, quality, and
2-18 operational effectiveness of the workers' compensation system.
2-19 (c) In addition to the studies and research conducted under
2-20 Subsection (b), the council <research center> shall conduct studies
2-21 and research related to drugs in the workplace, giving priority to
2-22 drug abuse in public and private establishments in which drug abuse
2-23 could result in serious consequences to the public. The studies
2-24 and research must include a survey designed to identify future
2-25 needs and current efforts of employers to counteract drug abuse and
2-26 its effects in the workplace.
2-27 (d) The council shall identify, collect, maintain, and
3-1 analyze the key information required to assess the operational
3-2 effectiveness of the workers' compensation system. The council
3-3 shall provide the information obtained under this subsection to the
3-4 governor and the legislature on a quarterly basis.
3-5 (e) The council, with the approval of the board, may apply
3-6 for and spend federal funds to implement this chapter.
3-7 Sec. 404.003. COUNCIL <RESEARCH CENTER> FUNDING; MAINTENANCE
3-8 TAX. (a) The council <research center> is funded through the
3-9 assessment of a maintenance tax collected annually from all
3-10 insurance carriers except governmental entities.
3-11 (b) The commission shall set the rate of the maintenance tax
3-12 based on the expenditures authorized and the receipts anticipated
3-13 in legislative appropriations. The tax rate for insurance
3-14 companies may not exceed one-tenth of one percent of the correctly
3-15 reported gross workers' compensation insurance premiums. The tax
3-16 rate for certified self-insurers may not exceed one-tenth of one
3-17 percent of the total tax base of all certified self-insurers, as
3-18 computed under Section 407.103(b).
3-19 (c) The tax imposed under Subsection (a) is in addition to
3-20 all other taxes imposed on those insurance carriers for workers'
3-21 compensation purposes.
3-22 (d) The tax on insurance companies shall be collected and
3-23 paid in the same manner and at the same time as the maintenance tax
3-24 established for the support of the Texas Department of Insurance
3-25 under Article 5.68, Insurance Code. The tax on certified
3-26 self-insurers shall be collected and paid in the same manner and at
3-27 the same time as the self-insurer maintenance tax collected under
4-1 Section 407.104.
4-2 (e) Amounts received under this section shall be deposited
4-3 in the state treasury to the credit of a special account <fund> to
4-4 be used for the operation of the council and to reimburse the
4-5 general revenue fund in accordance with Article 4.19, Insurance
4-6 Code <research center>.
4-7 (f) Sections 403.094 and 403.095, Government Code, do not
4-8 apply to the special account established under this section.
4-9 Sec. 404.004. BOARD OF DIRECTORS. (a) The council
4-10 <research center> is governed by a board of directors, composed of:
4-11 (1) three senators, appointed by the lieutenant
4-12 governor;
4-13 (2) three members of the house of representatives,
4-14 appointed by the speaker of the house of representatives;
4-15 (3) a member of the commission, appointed <chosen> by
4-16 the commission, from the members who are wage earners;
4-17 (4) <(2)> a member of the commission, appointed
4-18 <chosen> by the commission, from the members who are employers of
4-19 labor; and
4-20 (5) the commissioner of insurance or a person
4-21 designated by that commissioner <(3) the public counsel of the
4-22 office of public insurance counsel; and>
4-23 <(4) six members of the public, two of whom are
4-24 appointed by the speaker of the house of representatives, two of
4-25 whom are appointed by the lieutenant governor, and two of whom are
4-26 appointed by the governor>.
4-27 (b) <The public members of the board shall be appointed
5-1 without regard to the race, color, disability, sex, religion, age,
5-2 or national origin of the appointee. Appointments are not subject
5-3 to senate confirmation.>
5-4 <(c)> A member of the board is not liable for any act
5-5 performed in good faith in the execution of duties as a board
5-6 member.
5-7 (c) <(d)> A member of the board may not receive remuneration
5-8 for service on the board but is entitled to reimbursement for
5-9 actual and necessary expenses incurred in performing functions as a
5-10 board member, subject to any limit in the General Appropriations
5-11 Act.
5-12 (d) An officer, employee, or paid consultant of a Texas
5-13 trade association whose members provide services subject to
5-14 regulation by the commission or provide services whose fees are
5-15 subject to regulation by the commission may not be an employee of
5-16 the council who is exempt from the state's position classification
5-17 plan or is compensated at or above the amount prescribed by the
5-18 General Appropriations Act for step 1, salary group 17, of the
5-19 position classification salary schedule.
5-20 (e) For the purposes of this section, a Texas trade
5-21 association is a nonprofit, cooperative, and voluntarily joined
5-22 association of business or professional competitors in this state
5-23 designed to assist its members and its industry or profession in
5-24 dealing with mutual business or professional problems and in
5-25 promoting their common interest.
5-26 (f) The board shall develop and implement policies that
5-27 clearly separate the policymaking responsibilities of the board and
6-1 the management responsibilities of the executive director and the
6-2 staff of the council.
6-3 <(e) Section 401.011(16) does not apply to the use of the
6-4 term "disability" in Subsection (b).>
6-5 Sec. 404.0041. EFFECT OF LOBBYING ACTIVITY. A person may
6-6 not act as the general counsel to the board or the council if the
6-7 person is required to register as a lobbyist under Chapter 305,
6-8 Government Code, because of the person's activities for
6-9 compensation on behalf of a profession that is regulated or has
6-10 fees regulated by the commission.
6-11 Sec. 404.005. SERVICE AT-WILL <TERMS>; VACANCY. (a) A
6-12 person appointed to the board serves at the will of the appointing
6-13 state officer or agency. <Public members of the board serve for
6-14 staggered four-year terms, with the terms of three appointed
6-15 members expiring February 1 of each odd-numbered year.>
6-16 (b) <A board member who also serves on the commission or as
6-17 the public counsel of the office of public insurance counsel serves
6-18 a term as determined by the appointing state agency.>
6-19 <(c)> If a vacancy occurs on the board <during a term>, the
6-20 appointing officer or agency shall appoint a replacement who meets
6-21 the qualifications of the vacated office <for the unexpired term>.
6-22 (c) The commissioner of insurance serves as an ex officio
6-23 member for the period of that officer's term as commissioner. The
6-24 commissioner of insurance or the designee of the commissioner may
6-25 vote on any matter before the board.
6-26 Sec. 404.0055. REMOVAL OF BOARD MEMBERS. (a) It is a
6-27 ground for removal from the board if a member:
7-1 (1) does not have at the time of appointment the
7-2 qualifications required by Section 404.004(a);
7-3 (2) does not maintain during service on the board the
7-4 qualifications required by Section 404.004(a);
7-5 (3) violates a prohibition established by Section
7-6 404.004(d);
7-7 (4) cannot because of illness or disability discharge
7-8 the member's duties for a substantial part of the term for which
7-9 the member is appointed; or
7-10 (5) is absent from more than half of the regularly
7-11 scheduled board meetings that the member is eligible to attend
7-12 during a calendar year.
7-13 (b) The validity of an action of the board is not affected
7-14 by the fact that it is taken when a ground for removal of a board
7-15 member exists.
7-16 (c) If the executive director has knowledge that a potential
7-17 ground for removal exists, the executive director shall notify the
7-18 chairman of the board of the potential ground. The chairman shall
7-19 then notify the lieutenant governor, the speaker of the house of
7-20 representatives, and the attorney general that a potential ground
7-21 for removal exists. If the potential ground for removal involves
7-22 the chairman, the executive director shall notify the next highest
7-23 officer of the board, who shall notify the lieutenant governor, the
7-24 speaker of the house of representatives, and the attorney general
7-25 that a potential ground for removal exists.
7-26 (d) Section 401.011(16) does not apply to the use of the
7-27 term "disability" in Subsection (a).
8-1 Sec. 404.006. PRESIDING OFFICERS <CHAIRMAN>; MEETINGS. (a)
8-2 The council <board> shall have a chairman and vice chairman as
8-3 presiding officers, who shall <elect an appointed member to> serve
8-4 in that capacity <as chairman> for a period of two years <two-year
8-5 term>. The lieutenant governor and the speaker of the house of
8-6 representatives shall alternate the designation of the chairman and
8-7 vice chairman, with the lieutenant governor designating the first
8-8 chairman and the speaker the first vice chairman.
8-9 (b) The periods of service as <term of the> chairman and
8-10 vice chairman expire <expires> on February 1 of each
8-11 even-numbered year. The chairman and vice chairman may vote on all
8-12 matters before the board.
8-13 (c) <(b)> The board shall meet as necessary <at least once
8-14 in each calendar quarter and may meet at other times> at the call
8-15 of the chairman <or as provided by board rules>.
8-16 Sec. 404.007. GENERAL POWERS AND DUTIES OF BOARD. (a) The
8-17 board shall:
8-18 (1) approve the <research agenda and> operating budget
8-19 of the council <research center>;
8-20 (2) <report annually in writing to the governor and
8-21 the legislature on the activities conducted by the research center;
8-22 and>
8-23 <(3)> adopt rules for the operations of the board and
8-24 the council; <research center>
8-25 (3) conduct professional studies and research on all
8-26 matters relevant to the cost, quality, and operational
8-27 effectiveness of the workers' compensation system;
9-1 (4) monitor the cost of income benefits under this
9-2 subtitle, with emphasis on the availability and cost of
9-3 supplemental income benefits;
9-4 (5) monitor the performance and operation of the Texas
9-5 Workers' Compensation Insurance Fund, with emphasis on the insurer
9-6 of last resort program;
9-7 (6) hold regular public hearings and receive testimony
9-8 and reports from:
9-9 (A) the commission;
9-10 (B) the Texas Workers' Compensation Insurance
9-11 Fund;
9-12 (C) the Texas workers' compensation insurance
9-13 facility;
9-14 (D) the Texas Department of Insurance;
9-15 (E) the office of the attorney general; and
9-16 (F) any other public or private entity that is
9-17 involved in the workers' compensation system;
9-18 (7) receive information about workers' compensation
9-19 rules and operations of an entity listed in Subdivision (6); and
9-20 (8) review specific recommendations for legislation
9-21 relating to the Texas Workers' Compensation Act formally proposed
9-22 by an entity listed in Subdivision (6).
9-23 (b) The board shall report to the governor, lieutenant
9-24 governor, and speaker of the house of representatives not later
9-25 than December 31 of each even-numbered year. The report must
9-26 include:
9-27 (1) the activities of the council;
10-1 (2) identification of any problems in the workers'
10-2 compensation system, with recommendations for regulatory and
10-3 legislative action based on research or testimony; and
10-4 (3) the status of the effectiveness of the workers'
10-5 compensation system to provide adequate, equitable, and timely
10-6 benefits to injured workers at a reasonable cost to employers, with
10-7 recommendations for any additional necessary research. <Through an
10-8 appropriate use of research staff and research contracted with
10-9 educational institutions or other public or private research
10-10 institutions and workers' compensation experts, the board shall
10-11 ensure:>
10-12 <(1) the quality of research products; and>
10-13 <(2) economy in the use of funds.>
10-14 (c) The board shall publish and disseminate its studies to
10-15 interested persons and may determine charges for the publications
10-16 as necessary to achieve optimal dissemination.
10-17 (d) The board may:
10-18 (1) delegate powers to the executive director as it
10-19 considers appropriate, including general guidance on the
10-20 identification of information needs and the conduct of research;
10-21 (2) contract with other persons, including
10-22 institutions of higher education, for conducting economical studies
10-23 of high quality for the council <research center>;
10-24 (3) contract with the commission for a fiscal,
10-25 personnel, or other support function; <and>
10-26 (4) appoint expert advisory committees to provide
10-27 technical assistance in conducting research <help:>
11-1 <(A) prepare the research agenda;>
11-2 <(B) develop requests for research proposals;>
11-3 <(C) evaluate research proposals;>
11-4 <(D) technically review research products>; and
11-5 (5) request reports and other information on workers'
11-6 compensation from an entity listed in Subsection (a)(6). Requests
11-7 made under this subsection shall be reasonable in scope and shall
11-8 take into account the availability of the information requested,
11-9 the preparation time required, and other relevant circumstances
11-10 <(E) achieve other purposes appropriate to the purposes of the
11-11 research center>.
11-12 (e) The board may take action by majority vote when a quorum
11-13 is present.
11-14 Sec. 404.008. EXECUTIVE DIRECTOR; APPROPRIATIONS REQUEST.
11-15 (a) The board shall employ an executive director, who shall
11-16 administer the council <research center> in accordance with board
11-17 policies. The executive director serves at the pleasure of the
11-18 board.
11-19 (b) The executive director shall hire staff as necessary to
11-20 accomplish the objectives of the council, and may delegate powers
11-21 and duties to members of that staff as necessary <research center>.
11-22 (c) The executive director shall prepare a request for
11-23 legislative appropriations for the operations of the council
11-24 <research center>. If the request is approved by the board, the
11-25 board shall submit the request to the commission. The commission
11-26 shall include the request in the commission's legislative
11-27 appropriations request.
12-1 (d) The executive director shall prepare annually a complete
12-2 and detailed written report accounting for all funds received and
12-3 disbursed by the council during the preceding fiscal year. The
12-4 annual report must meet the reporting requirements applicable to
12-5 financial reporting provided by the General Appropriations Act.
12-6 (e) The executive director shall develop an intra-agency
12-7 career ladder program that addresses opportunities for mobility and
12-8 advancement for employees within the council. The program shall
12-9 require intra-agency posting of all positions concurrently with any
12-10 public posting.
12-11 (f) The executive director shall develop a system of annual
12-12 performance evaluations that are based on documented employee
12-13 performance. All merit pay for council employees must be based on
12-14 the system established under this subsection.
12-15 (g) The executive director shall prepare and maintain a
12-16 written policy statement to assure implementation of a program of
12-17 equal employment opportunity under which all personnel transactions
12-18 are made without regard to race, color, disability, sex, religion,
12-19 age, or national origin. The policy statement must include:
12-20 (1) personnel policies, including policies relating to
12-21 recruitment, evaluation, selection, appointment, training, and
12-22 promotion of personnel that are in compliance with the requirements
12-23 of Chapter 21;
12-24 (2) a comprehensive analysis of the council workforce
12-25 that meets federal and state guidelines;
12-26 (3) procedures by which a determination can be made
12-27 about the extent of underuse in the council workforce of all
13-1 persons for whom federal or state guidelines encourage a more
13-2 equitable balance; and
13-3 (4) reasonable methods to appropriately address those
13-4 areas of underuse.
13-5 (h) A policy statement prepared under Subsection (g) must:
13-6 (1) cover an annual period;
13-7 (2) be updated annually;
13-8 (3) be reviewed by the Commission on Human Rights for
13-9 compliance with Subsection (g)(1); and
13-10 (4) be filed with the governor's office.
13-11 (i) The governor's office shall deliver a biennial report to
13-12 the legislature based on the information received under Subsection
13-13 (h). The report may be made separately or as a part of other
13-14 biennial reports made to the legislature.
13-15 (j) The executive director shall provide to members of the
13-16 board and to council employees, as often as necessary, information
13-17 regarding their qualification for office or employment under this
13-18 chapter and their responsibilities under applicable laws relating
13-19 to standards of conduct for state officers or employees.
13-20 Sec. 404.009. RESEARCH AGENDA. (a) The executive director
13-21 annually shall prepare a research agenda for board review and
13-22 approval.
13-23 (b) The board shall publish annually in the Texas Register a
13-24 proposed research agenda and shall distribute the proposed agenda
13-25 to educational institutions in this state that have a demonstrated
13-26 research capacity.
13-27 (c) The board shall accept public comments on the proposed
14-1 agenda and shall conduct a public hearing on the agenda if a
14-2 hearing is requested by interested persons.
14-3 Sec. 404.0091. PUBLIC INFORMATION; ACCESSIBILITY. (a) The
14-4 council shall prepare information of public interest describing the
14-5 functions of the council and the procedures by which complaints are
14-6 filed with and resolved by the council. The council shall make the
14-7 information available to the public and appropriate state agencies.
14-8 (b) The board shall develop and implement policies that
14-9 provide the public with a reasonable opportunity to appear before
14-10 the board and to speak on any issue under the jurisdiction of the
14-11 council.
14-12 (c) The council shall comply with federal and state laws
14-13 related to program and facility accessibility. In addition, the
14-14 executive director shall prepare and maintain a written plan that
14-15 describes how a person who does not speak English can be provided
14-16 reasonable access to the council's programs and services.
14-17 Sec. 404.0092. RESOLUTION OF COMPLAINTS. (a) The council
14-18 shall keep information about each written complaint filed with the
14-19 council. The information shall include:
14-20 (1) the date the complaint is received;
14-21 (2) the name of the complainant;
14-22 (3) the subject matter of the complaint;
14-23 (4) a record of all persons contacted in relation to
14-24 the complaint;
14-25 (5) a summary of the results of the review or
14-26 investigation of the complaint; and
14-27 (6) for complaints for which the council took no
15-1 action, an explanation of the reason the complaint was closed
15-2 without action.
15-3 (b) For each written complaint filed with the council that
15-4 the council has authority to resolve, the council shall provide to
15-5 the person filing the complaint and the person about whom the
15-6 complaint is filed information about the council's policies and
15-7 procedures relating to complaint investigation and resolution. The
15-8 council, at least quarterly and until final disposition of the
15-9 complaint, shall notify those persons of the status of the
15-10 complaint unless the notice would jeopardize an undercover
15-11 investigation.
15-12 Sec. 404.010. COORDINATION WITH OTHER STATE AGENCIES;
15-13 CONFIDENTIALITY. (a) As required to fulfill the objectives of the
15-14 council <research center>, the council <research center> is
15-15 entitled to access to the files and records of:
15-16 (1) the commission;
15-17 (2) the Texas Employment Commission;
15-18 (3) the Texas Department of Insurance;
15-19 (4) the Texas Department of Human Services; <and>
15-20 (5) the Texas workers' compensation insurance
15-21 facility;
15-22 (6) the Texas Workers' Compensation Insurance Fund;
15-23 and
15-24 (7) other state agencies.
15-25 (b) A state agency shall assist and cooperate in providing
15-26 the information to the council <research center>.
15-27 (c) Information that is confidential under state law is
16-1 accessible to the council <research center> under rules of
16-2 confidentiality and remains confidential.
16-3 SECTION 2. Chapter 405, Labor Code, is repealed.
16-4 SECTION 3. (a) The Texas Workers' Compensation Research
16-5 Center and the board of directors of that center are abolished on
16-6 the effective date of this Act. All state records and other
16-7 property, employees, and unexpended and unobligated appropriations
16-8 of the Texas Workers' Compensation Research Center or the board of
16-9 directors on August 30, 1995, are transferred to the Research and
16-10 Oversight Council on Workers' Compensation. Any reference in law
16-11 to the research center or its board of directors means the Research
16-12 and Oversight Council on Workers' Compensation or its board of
16-13 directors.
16-14 (b) The special fund created under Section 404.003, Labor
16-15 Code, as that section existed prior to amendment by this Act, is
16-16 recreated and redesignated as a special account to be used for the
16-17 purposes designated in Section 404.003, Labor Code, as amended by
16-18 this Act.
16-19 SECTION 4. The board of directors and executive director of
16-20 the Research and Oversight Council on Workers' Compensation shall
16-21 adopt policies as required by this Act not later than January 1,
16-22 1996.
16-23 SECTION 5. The initial chairman of the board of directors of
16-24 the Research and Oversight Council on Workers' Compensation shall
16-25 serve in that capacity until February 1, 1998.
16-26 SECTION 6. This Act takes effect August 30, 1995.
16-27 SECTION 7. The importance of this legislation and the
17-1 crowded condition of the calendars in both houses create an
17-2 emergency and an imperative public necessity that the
17-3 constitutional rule requiring bills to be read on three several
17-4 days in each house be suspended, and this rule is hereby suspended.