By Jackson, Eiland H.B. No. 1589
74R6199 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision of workers' compensation benefits for
1-3 certain state employees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 412, Labor Code, is amended by adding
1-6 Section 412.0015 to read as follows:
1-7 Sec. 412.0015. STATUS OF DIVISION. (a) The division is
1-8 administratively attached to the commission but shall perform its
1-9 functions under this chapter independently of the direction of the
1-10 commission.
1-11 (b) The commission shall provide facilities, staffing,
1-12 equipment, financial support, and other support as necessary for
1-13 the division to implement the duties assigned to the division.
1-14 SECTION 2. Section 412.002, Labor Code, is amended to read
1-15 as follows:
1-16 Sec. 412.002. PROVISIONAL EXEMPTION OF CERTAIN STATE
1-17 AGENCIES; REPORT. (a) Except as provided by Subsections (b) and
1-18 (c), this <This> chapter does not apply to a state agency that had
1-19 medical malpractice insurance coverage, workers' compensation
1-20 insurance coverage, or other self-insurance coverage with
1-21 associated risk management programs before January 1, 1989.
1-22 (b) Each state agency shall comply with the annual report
1-23 requirement imposed under Section 412.005.
1-24 (c) The division shall evaluate biennially the effectiveness
2-1 of the risk management program operated by a state agency that is
2-2 exempt under Subsection (a). If, based on that evaluation, the
2-3 director determines that the program operated by the state agency
2-4 is not effective in reducing losses, the director shall revoke the
2-5 exemption granted under this section, and the state agency shall
2-6 comply with the requirements of this chapter on notification by the
2-7 director that the exemption has been revoked.
2-8 SECTION 3. Chapter 412, Labor Code, is amended by adding
2-9 Section 412.0025 to read as follows:
2-10 Sec. 412.0025. DUTIES OF STATE AGENCIES. Each state agency
2-11 subject to this chapter shall actively manage the risks of that
2-12 agency by developing, implementing, and maintaining health and
2-13 safety programs and programs designed to assist employees who
2-14 sustain compensable injuries to return to work.
2-15 SECTION 4. Section 412.003, Labor Code, is amended by
2-16 amending Subsection (a) and by adding Subsection (c) to read as
2-17 follows:
2-18 (a) The division shall:
2-19 (1) administer guidelines adopted by the director
2-20 <commission> for a comprehensive risk management program applicable
2-21 to all state agencies to reduce property and liability losses,
2-22 including workers' compensation losses; and
2-23 (2) review, verify, monitor, and approve risk
2-24 management programs adopted by state agencies.
2-25 (c) The division shall administer the workers' compensation
2-26 insurance program for state employees established under Chapter
2-27 501.
3-1 SECTION 5. Section 412.005, Labor Code, is amended by adding
3-2 Subsection (c) to read as follows:
3-3 (c) For the purposes of this section, "state agency"
3-4 includes:
3-5 (1) The University of Texas System;
3-6 (2) The Texas A&M University System;
3-7 (3) an institution under the direction and control of
3-8 the board of regents of Texas Tech University; and
3-9 (4) the Texas Department of Transportation.
3-10 SECTION 6. Section 412.006, Labor Code, is amended to read
3-11 as follows:
3-12 Sec. 412.006. RULEMAKING AUTHORITY. (a) The director
3-13 <commission> may adopt rules as necessary to implement this
3-14 chapter, including rules relating to reporting requirements for a
3-15 state agency.
3-16 (b) Notwithstanding Section 402.061, the commission may not
3-17 adopt rules relating to the implementation of this chapter.
3-18 SECTION 7. Section 412.007(b), Labor Code, is amended to
3-19 read as follows:
3-20 (b) The report must include:
3-21 (1) the frequency, severity, and aggregate amount of
3-22 open and closed claims in the preceding biennium by category of
3-23 risk, including final judgments;
3-24 (2) the identification of each state agency that has
3-25 not complied with the risk management guidelines and reporting
3-26 requirements of this chapter; and
3-27 (3) recommendations for the coordination and
4-1 administration of a comprehensive risk management program to serve
4-2 all state agencies, including recommendations for any necessary
4-3 statutory changes.
4-4 SECTION 8. Section 412.008(a), Labor Code, is amended to
4-5 read as follows:
4-6 (a) Each state agency shall enter into an interagency
4-7 contract with the division <commission> under Chapter 771,
4-8 Government Code, to pay the costs incurred by the division
4-9 <commission> in administering this chapter for the benefit of that
4-10 state agency. Costs payable under the contract include the cost
4-11 of:
4-12 (1) services of division <commission> employees;
4-13 (2) materials; and
4-14 (3) equipment, including computer hardware and
4-15 software.
4-16 SECTION 9. Sections 501.001(3) and (4), Labor Code, are
4-17 amended to read as follows:
4-18 (3) "Director" means the director of the <workers'
4-19 compensation> division of risk management of the commission
4-20 <attorney general's office>.
4-21 (4) "Division" means the <workers' compensation>
4-22 division of risk management of the commission <the attorney
4-23 general's office>.
4-24 SECTION 10. Sections 501.002(b) and (c), Labor Code, are
4-25 amended to read as follows:
4-26 (b) For the purposes of Chapter 451, the individual state
4-27 agency shall be considered the employer. For the purposes of this
5-1 chapter, the individual state agency is the employer except as
5-2 provided by Section 501.022.
5-3 (c) Except as provided by Section 501.022(b), for <For> the
5-4 purpose of applying the provisions listed by Subsection (a) to this
5-5 chapter, "insurer" or "employer" means "state," "division," <or>
5-6 "director," or "state agency," as applicable.
5-7 SECTION 11. Subchapter B, Chapter 501, Labor Code, is
5-8 amended by adding Section 501.0215 to read as follows:
5-9 Sec. 501.0215. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) A
5-10 state agency shall maintain an employee who incurs a compensable
5-11 injury on the agency's payroll until the 31st day after the first
5-12 day on which the employee is unable to work because of the
5-13 compensable injury. On the expiration of the 30-day period, the
5-14 employee may elect to use accrued sick leave before receiving
5-15 income benefits as provided by Section 501.044.
5-16 (b) The requirement imposed under Subsection (a) does not
5-17 affect:
5-18 (1) the employee's entitlement to benefits under this
5-19 chapter; or
5-20 (2) the employing agency's duty to report the injury
5-21 under Chapters 409 and 412.
5-22 SECTION 12. Section 501.022, Labor Code, is amended to read
5-23 as follows:
5-24 Sec. 501.022. TEXAS TECH UNIVERSITY EMPLOYEES. (a) An
5-25 eligible employee of Texas Tech University, Texas Tech University
5-26 Research Farm, Texas Tech University School of Medicine at Lubbock,
5-27 or another agency under the direction and control of the board of
6-1 regents of Texas Tech University is entitled to participate in the
6-2 workers' compensation program for state employees provided under
6-3 this chapter.
6-4 (b) For purposes of this chapter, the board of regents of
6-5 Texas Tech University shall act in the capacity of employer.
6-6 SECTION 13. Section 501.023, Labor Code, is amended to read
6-7 as follows:
6-8 Sec. 501.023. STATE SELF-INSURING; ALLOCATION PROGRAM FOR
6-9 FINANCING OF STATE WORKERS' COMPENSATION BENEFITS. (a) The state
6-10 is self-insuring with respect to an employee's compensable injury.
6-11 The legislature shall appropriate the total amount designated for
6-12 the payment of state workers' compensation claims costs to the
6-13 division.
6-14 (b) The division shall establish an allocation program for
6-15 the payment of workers' compensation claims costs incurred by state
6-16 agencies subject to this chapter. The money appropriated by the
6-17 legislature for workers' compensation for state employees shall be
6-18 allocated under that program as provided by this section.
6-19 (c) Based on the information reported to the division under
6-20 Sections 412.005 and 501.048, at the beginning of each state fiscal
6-21 biennium the division shall determine which state agencies
6-22 comprised 90 percent of the state's workers' compensation claims
6-23 costs for the preceding state fiscal biennium. Those state
6-24 agencies are required to participate in the allocation program for
6-25 the next state fiscal biennium. The division shall establish a
6-26 formula for allocating the state's workers' compensation costs
6-27 among those agencies, based on the claims experience of the
7-1 agencies and the related costs incurred for administering the
7-2 claims.
7-3 (d) A state agency that is required to participate in the
7-4 allocation program shall be rewarded or penalized for its actual
7-5 performance against expected workers' compensation losses as
7-6 provided by this section.
7-7 (e) The division shall receive the amount appropriated for
7-8 workers' compensation claims. The division shall:
7-9 (1) monitor workers' compensation expenses incurred by
7-10 each state agency required to participate in the allocation
7-11 program; and
7-12 (2) compare and report to each of those agencies the
7-13 difference between the allocated amount and the agency's actual
7-14 expenses for workers' compensation.
7-15 (f) If, based on the comparison performed under Subsection
7-16 (e)(2), the division determines that an agency's performance
7-17 resulted in workers' compensation claims costs that were higher
7-18 than the amount allocated to that agency, the agency is not
7-19 entitled to additional state funds for those costs beyond the
7-20 initial allocation and shall pay the additional costs from the
7-21 agency's regular appropriated funds as listed in the General
7-22 Appropriations Act.
7-23 (g) If, based on the comparison performed under Subsection
7-24 (e)(2), the division determines that an agency's performance
7-25 resulted in workers' compensation claims costs that were lower than
7-26 the amount allocated to that agency, the agency is entitled to
7-27 retain a portion of the savings. The division shall determine the
8-1 amount of the savings that the agency may retain.
8-2 (h) A state agency that is determined by the division to be
8-3 exempt from participation in the allocation program shall receive
8-4 full coverage for workers' compensation costs incurred by that
8-5 agency from the division.
8-6 SECTION 14. Section 501.041, Labor Code, is amended to read
8-7 as follows:
8-8 Sec. 501.041. ADMINISTRATION OF <WORKERS' COMPENSATION>
8-9 DIVISION<; DIRECTOR>. (a) <The attorney general shall maintain a
8-10 division of workers' compensation to administer this chapter.>
8-11 <(b) The attorney general shall appoint a director to act as
8-12 chief executive and administrative officer of the division.>
8-13 <(c) The attorney general shall provide the director with
8-14 office space and sufficient personnel to administer this chapter.>
8-15 <(d)> The director shall administer this chapter with money
8-16 appropriated by the legislature.
8-17 (b) The <(e) With the approval of the attorney general,
8-18 the> director may contract with a company authorized to do business
8-19 in this state for any or all of the administrative services
8-20 required by this chapter. A contract awarded under this subsection
8-21 shall be awarded on the basis of competitive bidding by qualified
8-22 companies.
8-23 SECTION 15. Section 501.042, Labor Code, is amended to read
8-24 as follows:
8-25 Sec. 501.042. DIRECTOR AS <EMPLOYER AND> INSURER. (a) In
8-26 administering and enforcing this chapter, the director shall act in
8-27 the capacity of <employer and> insurer.
9-1 (b) The director shall act as an adversary before the
9-2 commission and courts and present the legal defenses and positions
9-3 of the state as an <employer and> insurer.
9-4 (c) For the purposes of this section, the director is
9-5 entitled to the legal counsel of the attorney general.
9-6 (d) In the capacity of insurer, the <The> director is
9-7 subject to the rules, orders, and decisions of the commission in
9-8 the same manner as any other <a private employer,> insurer<,> or
9-9 association.
9-10 SECTION 16. Section 501.043(a), Labor Code, is amended to
9-11 read as follows:
9-12 (a) The director shall<:>
9-13 <(1)> adopt procedural rules and prescribe forms
9-14 necessary for the effective administration of this chapter<; and>
9-15 <(2) adopt and enforce reasonable rules for the
9-16 prevention of accidents and injuries>.
9-17 SECTION 17. Section 502.002(a), Labor Code, is amended to
9-18 read as follows:
9-19 (a) The following provisions of Subtitle A apply to and are
9-20 included in this chapter except to the extent that they are
9-21 inconsistent with this chapter:
9-22 (1) Chapter 401, other than Section 401.012 defining
9-23 "employee";
9-24 (2) Chapter 402;
9-25 (3) Chapter 403, other than Sections 403.001-403.005;
9-26 (4) Chapter 405;
9-27 (5) Sections 406.031-406.033; Subchapter D, Chapter
10-1 406; Sections 406.092 and 406.093;
10-2 (6) Chapter 408, other than Sections 408.001(b) and
10-3 (c);
10-4 (7) Chapters 409 and 410;
10-5 (8) Subchapters A and G, Chapter 411, other than
10-6 Sections 411.003 and 411.004; <and>
10-7 (9) Chapters 412-417; and
10-8 (10) Chapter 451.
10-9 SECTION 18. Section 502.041, Labor Code, is amended to read
10-10 as follows:
10-11 Sec. 502.041. EFFECT <EXHAUSTION> OF <ANNUAL AND> SICK
10-12 LEAVE. <(a)> An <institution may provide that an injured>
10-13 employee may elect to use accrued <remain on the payroll until the
10-14 employee's earned annual and> sick leave before receiving income
10-15 benefits. If an employee elects to use sick leave, the employee is
10-16 not entitled to income benefits under this chapter until the
10-17 employee has <is> exhausted the employee's accrued sick leave.
10-18 <(b) While an injured employee remains on the payroll under
10-19 Subsection (a), medical services remain available to the employee,
10-20 but workers' compensation benefits do not accrue or become payable
10-21 to the injured employee.>
10-22 SECTION 19. Subchapter C, Chapter 502, Labor Code, is
10-23 amended by adding Section 502.042 to read as follows:
10-24 Sec. 502.042. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) An
10-25 institution shall maintain an employee who incurs a compensable
10-26 injury on the institution's payroll until the 31st day after the
10-27 first day on which the employee is unable to work because of the
11-1 compensable injury. On the expiration of the 30-day period, the
11-2 employee may elect to use accrued sick leave before receiving
11-3 income benefits as provided by Section 502.041.
11-4 (b) The requirement imposed under Subsection (a) does not
11-5 affect:
11-6 (1) the employee's entitlement to benefits under this
11-7 chapter; or
11-8 (2) the institution's duty to report the injury under
11-9 Chapters 409 and 412.
11-10 SECTION 20. Section 503.002(a), Labor Code, is amended to
11-11 read as follows:
11-12 (a) The following provisions of Subtitle A apply to and are
11-13 included in this chapter except to the extent that they are
11-14 inconsistent with this chapter:
11-15 (1) Chapter 401, other than Section 401.012 defining
11-16 "employee";
11-17 (2) Chapter 402;
11-18 (3) Chapter 403, other than Sections 403.001-403.005;
11-19 (4) Chapter 405;
11-20 (5) Sections 406.031-406.033; Subchapter D, Chapter
11-21 406; Sections 406.092 and 406.093;
11-22 (6) Chapter 408, other than Sections 408.001(b) and
11-23 (c);
11-24 (7) Chapters 409 and 410;
11-25 (8) Subchapters A and G, Chapter 411, other than
11-26 Sections 411.003 and 411.004; <and>
11-27 (9) Chapters 412-417; and
12-1 (10) Chapter 451.
12-2 SECTION 21. Section 503.041, Labor Code, is amended to read
12-3 as follows:
12-4 Sec. 503.041. EFFECT <EXHAUSTION> OF <ANNUAL AND> SICK
12-5 LEAVE. <(a)> An <institution may provide that an injured>
12-6 employee may elect to use accrued <remain on the payroll until the
12-7 employee's earned annual and> sick leave before receiving income
12-8 benefits. If an employee elects to use sick leave, the employee is
12-9 not entitled to income benefits under this chapter until the
12-10 employee has <is> exhausted the employee's accrued sick leave.
12-11 <(b) While an injured employee remains on the payroll under
12-12 Subsection (a), the employee is entitled to medical benefits but
12-13 income benefits do not accrue.>
12-14 SECTION 22. Subchapter C, Chapter 503, Labor Code, is
12-15 amended by adding Section 503.042 to read as follows:
12-16 Sec. 503.042. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) An
12-17 institution shall maintain an employee who incurs a compensable
12-18 injury on the institution's payroll until the 31st day after the
12-19 first day on which the employee is unable to work because of the
12-20 compensable injury. On the expiration of the 30-day period, the
12-21 employee may elect to use accrued sick leave before receiving
12-22 income benefits as provided by Section 503.041.
12-23 (b) The requirement imposed under Subsection (a) does not
12-24 affect:
12-25 (1) the employee's entitlement to benefits under this
12-26 chapter; or
12-27 (2) the institution's duty to report the injury under
13-1 Chapters 409 and 412.
13-2 SECTION 23. Subchapter B, Chapter 505, Labor Code, is
13-3 amended by adding Sections 505.014 and 505.015 to read as follows:
13-4 Sec. 505.014. EFFECT OF SICK LEAVE. An employee may elect
13-5 to use accrued sick leave before receiving income benefits. If an
13-6 employee elects to use sick leave, the employee is not entitled to
13-7 income benefits under this chapter until the employee has exhausted
13-8 the employee's accrued sick leave.
13-9 Sec. 505.015. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) The
13-10 department shall maintain an employee who incurs a compensable
13-11 injury on the department's payroll until the 31st day after the
13-12 first day on which the employee is unable to work because of the
13-13 compensable injury. On the expiration of the 30-day period, the
13-14 employee may elect to use accrued sick leave before receiving
13-15 income benefits as provided by Section 505.014.
13-16 (b) The requirement imposed under Subsection (a) does not
13-17 affect:
13-18 (1) the employee's entitlement to benefits under this
13-19 chapter; or
13-20 (2) the department's duty to report the injury under
13-21 Chapters 409 and 412.
13-22 SECTION 24. The following laws are repealed:
13-23 (1) Section 502.024, Labor Code;
13-24 (2) Section 502.064, Labor Code;
13-25 (3) Section 503.024, Labor Code;
13-26 (4) Section 503.064, Labor Code;
13-27 (5) Section 503.070, Labor Code; and
14-1 (6) Section 505.054, Labor Code.
14-2 SECTION 25. Except as provided by Section 26 of this Act,
14-3 the change in law made by this Act to Chapters 501, 502, 503, and
14-4 505, Labor Code, applies only to a claim for workers' compensation
14-5 benefits based on a compensable injury that occurs on or after
14-6 September 1, 1995. A claim based on a compensable injury that
14-7 occurs before that date is governed by the law in effect on the
14-8 date that the injury occurred, and the former law is continued in
14-9 effect for that purpose.
14-10 SECTION 26. The change in law made by the repeal by this Act
14-11 of Sections 502.024, 502.064, 503.024, 503.064, 503.070, and
14-12 505.054, Labor Code, applies to a claim for workers' compensation
14-13 benefits based on a compensable injury that occurred on or after
14-14 July 26, 1992, the effective date for implementation of the
14-15 Americans With Disabilities Act of 1990 (42 U.S.C. Section 12101 et
14-16 seq.). A claim based on a compensable injury that occurred before
14-17 that date is governed by the law in effect on the date that the
14-18 injury occurred, and the former law is continued in effect for that
14-19 purpose.
14-20 SECTION 27. The division of workers' compensation in the
14-21 office of the attorney general is abolished on the effective date
14-22 of this Act. All employees, records, equipment, and supplies in
14-23 the custody of the division of workers' compensation of the office
14-24 of the attorney general, as that division existed on August 31,
14-25 1995, shall be transferred to the division of risk management of
14-26 the Texas Workers' Compensation Commission not later than December
14-27 31, 1995.
15-1 SECTION 28. This Act takes effect September 1, 1995.
15-2 SECTION 29. The importance of this legislation and the
15-3 crowded condition of the calendars in both houses create an
15-4 emergency and an imperative public necessity that the
15-5 constitutional rule requiring bills to be read on three several
15-6 days in each house be suspended, and this rule is hereby suspended.