1-1 By: Brimer, et al. (Senate Sponsor - Armbrister) H.B. No. 1091
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; May 2, 1995, reported favorably, as amended, by the
1-5 following vote: Yeas 11, Nays 0; May 2, 1995, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Armbrister
1-7 Amend H.B. 1091, as engrossed, on page 8, by striking the
1-8 language on lines 7 and 8 and substituting the following: "vice
1-9 chairman, with the lieutenant governor designating the first
1-10 chairman and the speaker the first vice chairman."
1-11 COMMITTEE AMENDMENT NO. 2 By: Armbrister
1-12 Amend House Bill 1091 as follows:
1-13 (1) In SECTION 3, subsection (a), strike "August 31, 1995"
1-14 (house engrossment printing page 16, line 9) and substitute "August
1-15 30, 1995" in lieu thereof.
1-16 (2) In SECTION 6, strike "September 1, 1995" (house
1-17 engrossment printing page 16, line 26) and substitute "August 30,
1-18 1995" in lieu thereof.
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the consolidation of the Texas Workers' Compensation
1-22 Research Center and the Legislative Oversight Committee for
1-23 workers' compensation and to the functions of the new entity.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Chapter 404, Labor Code, is amended to read as
1-26 follows:
1-27 CHAPTER 404. RESEARCH AND OVERSIGHT COUNCIL ON
1-28 <TEXAS> WORKERS' COMPENSATION <RESEARCH CENTER>
1-29 Sec. 404.001. DEFINITIONS. In this chapter:
1-30 (1) "Board" means the board of directors of the
1-31 Research and Oversight Council on <Texas> Workers' Compensation
1-32 <Research Center>.
1-33 (2) "Council" means the Research and Oversight Council
1-34 on Workers' Compensation.
1-35 (3) "Executive director" means the executive director
1-36 of the council <research center>.
1-37 Sec. 404.0015. APPLICATION OF SUNSET ACT. The Research and
1-38 Oversight Council on Workers' Compensation is subject to Chapter
1-39 325, Government Code (Texas Sunset Act). Unless continued in
1-40 existence as provided by that chapter, the council is abolished and
1-41 this chapter expires September 1, 2007.
1-42 Sec. 404.002. COUNCIL <RESEARCH CENTER>; GENERAL POWERS AND
1-43 DUTIES. (a) The Research and Oversight Council on <Texas>
1-44 Workers' Compensation <Research Center> is an advisory body to the
1-45 commission. The council <research center> shall be <constituted
1-46 and> operated in a manner that ensures that its research, findings,
1-47 and conclusions are factual, fair, and unbiased.
1-48 (b) The council <research center> shall conduct professional
1-49 studies and research related to:
1-50 (1) the delivery of benefits;
1-51 (2) litigation and controversy related to workers'
1-52 compensation;
1-53 (3) insurance rates and rate-making procedures;
1-54 (4) rehabilitation and reemployment of injured
1-55 workers;
1-56 (5) workplace health and safety issues;
1-57 (6) the quality and cost of medical benefits; <and>
1-58 (7) the Texas Workers' Compensation Insurance Fund and
1-59 the impact of that fund on the workers' compensation system; and
1-60 (8) other matters relevant to the cost, quality, and
1-61 operational effectiveness of the workers' compensation system.
1-62 (c) In addition to the studies and research conducted under
1-63 Subsection (b), the council <research center> shall conduct studies
1-64 and research related to drugs in the workplace, giving priority to
1-65 drug abuse in public and private establishments in which drug abuse
1-66 could result in serious consequences to the public. The studies
1-67 and research must include a survey designed to identify future
1-68 needs and current efforts of employers to counteract drug abuse and
2-1 its effects in the workplace.
2-2 (d) The council shall identify, collect, maintain, and
2-3 analyze the key information required to assess the operational
2-4 effectiveness of the workers' compensation system. The council
2-5 shall provide the information obtained under this subsection to the
2-6 governor and the legislature on a quarterly basis.
2-7 (e) The council, with the approval of the board, may apply
2-8 for and spend federal funds to implement this chapter.
2-9 Sec. 404.003. COUNCIL <RESEARCH CENTER> FUNDING; MAINTENANCE
2-10 TAX. (a) The council <research center> is funded through the
2-11 assessment of a maintenance tax collected annually from all
2-12 insurance carriers except governmental entities.
2-13 (b) The commission shall set the rate of the maintenance tax
2-14 based on the expenditures authorized and the receipts anticipated
2-15 in legislative appropriations. The tax rate for insurance
2-16 companies may not exceed one-tenth of one percent of the correctly
2-17 reported gross workers' compensation insurance premiums. The tax
2-18 rate for certified self-insurers may not exceed one-tenth of one
2-19 percent of the total tax base of all certified self-insurers, as
2-20 computed under Section 407.103(b).
2-21 (c) The tax imposed under Subsection (a) is in addition to
2-22 all other taxes imposed on those insurance carriers for workers'
2-23 compensation purposes.
2-24 (d) The tax on insurance companies shall be collected and
2-25 paid in the same manner and at the same time as the maintenance tax
2-26 established for the support of the Texas Department of Insurance
2-27 under Article 5.68, Insurance Code. The tax on certified
2-28 self-insurers shall be collected and paid in the same manner and at
2-29 the same time as the self-insurer maintenance tax collected under
2-30 Section 407.104.
2-31 (e) Amounts received under this section shall be deposited
2-32 in the state treasury to the credit of a special account <fund> to
2-33 be used for the operation of the council and to reimburse the
2-34 general revenue fund in accordance with Article 4.19, Insurance
2-35 Code <research center>.
2-36 (f) Sections 403.094 and 403.095, Government Code, do not
2-37 apply to the special account established under this section.
2-38 Sec. 404.004. BOARD OF DIRECTORS. (a) The council
2-39 <research center> is governed by a board of directors, composed of:
2-40 (1) three senators, appointed by the lieutenant
2-41 governor;
2-42 (2) three members of the house of representatives,
2-43 appointed by the speaker of the house of representatives;
2-44 (3) a member of the commission, appointed <chosen> by
2-45 the commission, from the members who are wage earners;
2-46 (4) <(2)> a member of the commission, appointed
2-47 <chosen> by the commission, from the members who are employers of
2-48 labor; and
2-49 (5) the commissioner of insurance or a person
2-50 designated by that commissioner <(3) the public counsel of the
2-51 office of public insurance counsel; and>
2-52 <(4) six members of the public, two of whom are
2-53 appointed by the speaker of the house of representatives, two of
2-54 whom are appointed by the lieutenant governor, and two of whom are
2-55 appointed by the governor>.
2-56 (b) <The public members of the board shall be appointed
2-57 without regard to the race, color, disability, sex, religion, age,
2-58 or national origin of the appointee. Appointments are not subject
2-59 to senate confirmation.>
2-60 <(c)> A member of the board is not liable for any act
2-61 performed in good faith in the execution of duties as a board
2-62 member.
2-63 (c) <(d)> A member of the board may not receive remuneration
2-64 for service on the board but is entitled to reimbursement for
2-65 actual and necessary expenses incurred in performing functions as a
2-66 board member, subject to any limit in the General Appropriations
2-67 Act.
2-68 (d) An officer, employee, or paid consultant of a Texas
2-69 trade association whose members provide services subject to
2-70 regulation by the commission or provide services whose fees are
3-1 subject to regulation by the commission may not be an employee of
3-2 the council who is exempt from the state's position classification
3-3 plan or is compensated at or above the amount prescribed by the
3-4 General Appropriations Act for step 1, salary group 17, of the
3-5 position classification salary schedule.
3-6 (e) For the purposes of this section, a Texas trade
3-7 association is a nonprofit, cooperative, and voluntarily joined
3-8 association of business or professional competitors in this state
3-9 designed to assist its members and its industry or profession in
3-10 dealing with mutual business or professional problems and in
3-11 promoting their common interest.
3-12 (f) The board shall develop and implement policies that
3-13 clearly separate the policymaking responsibilities of the board and
3-14 the management responsibilities of the executive director and the
3-15 staff of the council.
3-16 <(e) Section 401.011(16) does not apply to the use of the
3-17 term "disability" in Subsection (b).>
3-18 Sec. 404.0041. EFFECT OF LOBBYING ACTIVITY. A person may
3-19 not act as the general counsel to the board or the council if the
3-20 person is required to register as a lobbyist under Chapter 305,
3-21 Government Code, because of the person's activities for
3-22 compensation on behalf of a profession that is regulated or has
3-23 fees regulated by the commission.
3-24 Sec. 404.005. SERVICE AT-WILL <TERMS>; VACANCY. (a) A
3-25 person appointed to the board serves at the will of the appointing
3-26 state officer or agency. <Public members of the board serve for
3-27 staggered four-year terms, with the terms of three appointed
3-28 members expiring February 1 of each odd-numbered year.>
3-29 (b) <A board member who also serves on the commission or as
3-30 the public counsel of the office of public insurance counsel serves
3-31 a term as determined by the appointing state agency.>
3-32 <(c)> If a vacancy occurs on the board <during a term>, the
3-33 appointing officer or agency shall appoint a replacement who meets
3-34 the qualifications of the vacated office <for the unexpired term>.
3-35 (c) The commissioner of insurance serves as an ex officio
3-36 member for the period of that officer's term as commissioner. The
3-37 commissioner of insurance or the designee of the commissioner may
3-38 vote on any matter before the board.
3-39 Sec. 404.0055. REMOVAL OF BOARD MEMBERS. (a) It is a
3-40 ground for removal from the board if a member:
3-41 (1) does not have at the time of appointment the
3-42 qualifications required by Section 404.004(a);
3-43 (2) does not maintain during service on the board the
3-44 qualifications required by Section 404.004(a);
3-45 (3) violates a prohibition established by Section
3-46 404.004(d);
3-47 (4) cannot because of illness or disability discharge
3-48 the member's duties for a substantial part of the term for which
3-49 the member is appointed; or
3-50 (5) is absent from more than half of the regularly
3-51 scheduled board meetings that the member is eligible to attend
3-52 during a calendar year.
3-53 (b) The validity of an action of the board is not affected
3-54 by the fact that it is taken when a ground for removal of a board
3-55 member exists.
3-56 (c) If the executive director has knowledge that a potential
3-57 ground for removal exists, the executive director shall notify the
3-58 chairman of the board of the potential ground. The chairman shall
3-59 then notify the lieutenant governor, the speaker of the house of
3-60 representatives, and the attorney general that a potential ground
3-61 for removal exists. If the potential ground for removal involves
3-62 the chairman, the executive director shall notify the next highest
3-63 officer of the board, who shall notify the lieutenant governor, the
3-64 speaker of the house of representatives, and the attorney general
3-65 that a potential ground for removal exists.
3-66 (d) Section 401.011(16) does not apply to the use of the
3-67 term "disability" in Subsection (a).
3-68 Sec. 404.006. PRESIDING OFFICERS <CHAIRMAN>; MEETINGS.
3-69 (a) The council <board> shall have a chairman and vice chairman as
3-70 presiding officers, who shall <elect an appointed member to> serve
4-1 in that capacity <as chairman> for a period of two years <two-year
4-2 term>. The lieutenant governor and the speaker of the house of
4-3 representatives shall alternate the designation of the chairman and
4-4 vice chairman, with the speaker designating the first chairman and
4-5 the lieutenant governor the first vice chairman.
4-6 (b) The periods of service as <term of the> chairman and
4-7 vice chairman expire <expires> on February 1 of each
4-8 even-numbered year. The chairman and vice chairman may vote on all
4-9 matters before the board.
4-10 (c) <(b)> The board shall meet as necessary <at least once
4-11 in each calendar quarter and may meet at other times> at the call
4-12 of the chairman <or as provided by board rules>.
4-13 Sec. 404.007. GENERAL POWERS AND DUTIES OF BOARD. (a) The
4-14 board shall:
4-15 (1) approve the <research agenda and> operating budget
4-16 of the council <research center>;
4-17 (2) <report annually in writing to the governor and
4-18 the legislature on the activities conducted by the research center;
4-19 and>
4-20 <(3)> adopt rules for the operations of the board and
4-21 the council; <research center>
4-22 (3) conduct professional studies and research on all
4-23 matters relevant to the cost, quality, and operational
4-24 effectiveness of the workers' compensation system;
4-25 (4) monitor the cost of income benefits under this
4-26 subtitle, with emphasis on the availability and cost of
4-27 supplemental income benefits;
4-28 (5) monitor the performance and operation of the Texas
4-29 Workers' Compensation Insurance Fund, with emphasis on the insurer
4-30 of last resort program;
4-31 (6) hold regular public hearings and receive testimony
4-32 and reports from:
4-33 (A) the commission;
4-34 (B) the Texas Workers' Compensation Insurance
4-35 Fund;
4-36 (C) the Texas workers' compensation insurance
4-37 facility;
4-38 (D) the Texas Department of Insurance;
4-39 (E) the office of the attorney general; and
4-40 (F) any other public or private entity that is
4-41 involved in the workers' compensation system;
4-42 (7) receive information about workers' compensation
4-43 rules and operations of an entity listed in Subdivision (6); and
4-44 (8) review specific recommendations for legislation
4-45 relating to the Texas Workers' Compensation Act formally proposed
4-46 by an entity listed in Subdivision (6).
4-47 (b) The board shall report to the governor, lieutenant
4-48 governor, and speaker of the house of representatives not later
4-49 than December 31 of each even-numbered year. The report must
4-50 include:
4-51 (1) the activities of the council;
4-52 (2) identification of any problems in the workers'
4-53 compensation system, with recommendations for regulatory and
4-54 legislative action based on research or testimony; and
4-55 (3) the status of the effectiveness of the workers'
4-56 compensation system to provide adequate, equitable, and timely
4-57 benefits to injured workers at a reasonable cost to employers, with
4-58 recommendations for any additional necessary research. <Through an
4-59 appropriate use of research staff and research contracted with
4-60 educational institutions or other public or private research
4-61 institutions and workers' compensation experts, the board shall
4-62 ensure:>
4-63 <(1) the quality of research products; and>
4-64 <(2) economy in the use of funds.>
4-65 (c) The board shall publish and disseminate its studies to
4-66 interested persons and may determine charges for the publications
4-67 as necessary to achieve optimal dissemination.
4-68 (d) The board may:
4-69 (1) delegate powers to the executive director as it
4-70 considers appropriate, including general guidance on the
5-1 identification of information needs and the conduct of research;
5-2 (2) contract with other persons, including
5-3 institutions of higher education, for conducting economical studies
5-4 of high quality for the council <research center>;
5-5 (3) contract with the commission for a fiscal,
5-6 personnel, or other support function; <and>
5-7 (4) appoint expert advisory committees to provide
5-8 technical assistance in conducting research <help:>
5-9 <(A) prepare the research agenda;>
5-10 <(B) develop requests for research proposals;>
5-11 <(C) evaluate research proposals;>
5-12 <(D) technically review research products>; and
5-13 (5) request reports and other information on workers'
5-14 compensation from an entity listed in Subsection (a)(6). Requests
5-15 made under this subsection shall be reasonable in scope and shall
5-16 take into account the availability of the information requested,
5-17 the preparation time required, and other relevant circumstances
5-18 <(E) achieve other purposes appropriate to the purposes of the
5-19 research center>.
5-20 (e) The board may take action by majority vote when a quorum
5-21 is present.
5-22 Sec. 404.008. EXECUTIVE DIRECTOR; APPROPRIATIONS REQUEST.
5-23 (a) The board shall employ an executive director, who shall
5-24 administer the council <research center> in accordance with board
5-25 policies. The executive director serves at the pleasure of the
5-26 board.
5-27 (b) The executive director shall hire staff as necessary to
5-28 accomplish the objectives of the council, and may delegate powers
5-29 and duties to members of that staff as necessary <research center>.
5-30 (c) The executive director shall prepare a request for
5-31 legislative appropriations for the operations of the council
5-32 <research center>. If the request is approved by the board, the
5-33 board shall submit the request to the commission. The commission
5-34 shall include the request in the commission's legislative
5-35 appropriations request.
5-36 (d) The executive director shall prepare annually a complete
5-37 and detailed written report accounting for all funds received and
5-38 disbursed by the council during the preceding fiscal year. The
5-39 annual report must meet the reporting requirements applicable to
5-40 financial reporting provided by the General Appropriations Act.
5-41 (e) The executive director shall develop an intra-agency
5-42 career ladder program that addresses opportunities for mobility and
5-43 advancement for employees within the council. The program shall
5-44 require intra-agency posting of all positions concurrently with any
5-45 public posting.
5-46 (f) The executive director shall develop a system of annual
5-47 performance evaluations that are based on documented employee
5-48 performance. All merit pay for council employees must be based on
5-49 the system established under this subsection.
5-50 (g) The executive director shall prepare and maintain a
5-51 written policy statement to assure implementation of a program of
5-52 equal employment opportunity under which all personnel transactions
5-53 are made without regard to race, color, disability, sex, religion,
5-54 age, or national origin. The policy statement must include:
5-55 (1) personnel policies, including policies relating to
5-56 recruitment, evaluation, selection, appointment, training, and
5-57 promotion of personnel that are in compliance with the requirements
5-58 of Chapter 21;
5-59 (2) a comprehensive analysis of the council workforce
5-60 that meets federal and state guidelines;
5-61 (3) procedures by which a determination can be made
5-62 about the extent of underuse in the council workforce of all
5-63 persons for whom federal or state guidelines encourage a more
5-64 equitable balance; and
5-65 (4) reasonable methods to appropriately address those
5-66 areas of underuse.
5-67 (h) A policy statement prepared under Subsection (g) must:
5-68 (1) cover an annual period;
5-69 (2) be updated annually;
5-70 (3) be reviewed by the Commission on Human Rights for
6-1 compliance with Subsection (g)(1); and
6-2 (4) be filed with the governor's office.
6-3 (i) The governor's office shall deliver a biennial report to
6-4 the legislature based on the information received under Subsection
6-5 (h). The report may be made separately or as a part of other
6-6 biennial reports made to the legislature.
6-7 (j) The executive director shall provide to members of the
6-8 board and to council employees, as often as necessary, information
6-9 regarding their qualification for office or employment under this
6-10 chapter and their responsibilities under applicable laws relating
6-11 to standards of conduct for state officers or employees.
6-12 Sec. 404.009. RESEARCH AGENDA. (a) The executive director
6-13 annually shall prepare a research agenda for board review and
6-14 approval.
6-15 (b) The board shall publish annually in the Texas Register a
6-16 proposed research agenda and shall distribute the proposed agenda
6-17 to educational institutions in this state that have a demonstrated
6-18 research capacity.
6-19 (c) The board shall accept public comments on the proposed
6-20 agenda and shall conduct a public hearing on the agenda if a
6-21 hearing is requested by interested persons.
6-22 Sec. 404.0091. PUBLIC INFORMATION; ACCESSIBILITY. (a) The
6-23 council shall prepare information of public interest describing the
6-24 functions of the council and the procedures by which complaints are
6-25 filed with and resolved by the council. The council shall make the
6-26 information available to the public and appropriate state agencies.
6-27 (b) The board shall develop and implement policies that
6-28 provide the public with a reasonable opportunity to appear before
6-29 the board and to speak on any issue under the jurisdiction of the
6-30 council.
6-31 (c) The council shall comply with federal and state laws
6-32 related to program and facility accessibility. In addition, the
6-33 executive director shall prepare and maintain a written plan that
6-34 describes how a person who does not speak English can be provided
6-35 reasonable access to the council's programs and services.
6-36 Sec. 404.0092. RESOLUTION OF COMPLAINTS. (a) The council
6-37 shall keep information about each written complaint filed with the
6-38 council. The information shall include:
6-39 (1) the date the complaint is received;
6-40 (2) the name of the complainant;
6-41 (3) the subject matter of the complaint;
6-42 (4) a record of all persons contacted in relation to
6-43 the complaint;
6-44 (5) a summary of the results of the review or
6-45 investigation of the complaint; and
6-46 (6) for complaints for which the council took no
6-47 action, an explanation of the reason the complaint was closed
6-48 without action.
6-49 (b) For each written complaint filed with the council that
6-50 the council has authority to resolve, the council shall provide to
6-51 the person filing the complaint and the person about whom the
6-52 complaint is filed information about the council's policies and
6-53 procedures relating to complaint investigation and resolution. The
6-54 council, at least quarterly and until final disposition of the
6-55 complaint, shall notify those persons of the status of the
6-56 complaint unless the notice would jeopardize an undercover
6-57 investigation.
6-58 Sec. 404.010. COORDINATION WITH OTHER STATE AGENCIES;
6-59 CONFIDENTIALITY. (a) As required to fulfill the objectives of the
6-60 council <research center>, the council <research center> is
6-61 entitled to access to the files and records of:
6-62 (1) the commission;
6-63 (2) the Texas Employment Commission;
6-64 (3) the Texas Department of Insurance;
6-65 (4) the Texas Department of Human Services; <and>
6-66 (5) the Texas workers' compensation insurance
6-67 facility;
6-68 (6) the Texas Workers' Compensation Insurance Fund;
6-69 and
6-70 (7) other state agencies.
7-1 (b) A state agency shall assist and cooperate in providing
7-2 the information to the council <research center>.
7-3 (c) Information that is confidential under state law is
7-4 accessible to the council <research center> under rules of
7-5 confidentiality and remains confidential.
7-6 SECTION 2. Chapter 405, Labor Code, is repealed.
7-7 SECTION 3. (a) The Texas Workers' Compensation Research
7-8 Center and the board of directors of that center are abolished on
7-9 the effective date of this Act. All state records and other
7-10 property, employees, and unexpended and unobligated appropriations
7-11 of the Texas Workers' Compensation Research Center or the board of
7-12 directors on August 31, 1995, are transferred to the Research and
7-13 Oversight Council on Workers' Compensation. Any reference in law
7-14 to the research center or its board of directors means the Research
7-15 and Oversight Council on Workers' Compensation or its board of
7-16 directors.
7-17 (b) The special fund created under Section 404.003, Labor
7-18 Code, as that section existed prior to amendment by this Act, is
7-19 recreated and redesignated as a special account to be used for the
7-20 purposes designated in Section 404.003, Labor Code, as amended by
7-21 this Act.
7-22 SECTION 4. The board of directors and executive director of
7-23 the Research and Oversight Council on Workers' Compensation shall
7-24 adopt policies as required by this Act not later than January 1,
7-25 1996.
7-26 SECTION 5. The initial chairman of the board of directors of
7-27 the Research and Oversight Council on Workers' Compensation shall
7-28 serve in that capacity until February 1, 1998.
7-29 SECTION 6. This Act takes effect September 1, 1995.
7-30 SECTION 7. The importance of this legislation and the
7-31 crowded condition of the calendars in both houses create an
7-32 emergency and an imperative public necessity that the
7-33 constitutional rule requiring bills to be read on three several
7-34 days in each house be suspended, and this rule is hereby suspended.
7-35 * * * * *