By Armbrister                                          S.B. No. 362
       74R5356 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the continuation and functions of the Texas Workers'
    1-3  Compensation Commission; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5          ARTICLE 1.  TEXAS WORKERS' COMPENSATION COMMISSION
    1-6        SECTION 1.01.  Section 401.002, Labor Code, is amended to
    1-7  read as follows:
    1-8        Sec. 401.002.  APPLICATION OF SUNSET ACT.  The Texas Workers'
    1-9  Compensation Commission is <and the Texas Workers' Compensation
   1-10  Research Center are> subject to Chapter 325, Government Code (Texas
   1-11  Sunset Act).  Unless continued in existence as provided by that
   1-12  chapter, the commission is abolished September 1, 2007 <1995, and
   1-13  the research center and the legislative oversight committee are
   1-14  abolished September 1, 1995>.
   1-15        SECTION 1.02.  Section 402.001(c), Labor Code, is amended to
   1-16  read as follows:
   1-17        (c)  Three members of the commission must be employers of
   1-18  labor and three members of the commission must be wage earners.  A
   1-19  person is not eligible for appointment as a member of the
   1-20  commission if the person provides services subject to regulation by
   1-21  the commission or charges fees that are subject to regulation by
   1-22  the commission.
   1-23        SECTION 1.03.  Subchapter A, Chapter 402, Labor Code, is
   1-24  amended by adding Section 402.0015 to read as follows:
    2-1        Sec. 402.0015.  TRAINING PROGRAM FOR COMMISSION MEMBERS.  (a)
    2-2  Before a member of the commission may assume the member's duties,
    2-3  the member must complete the training program established under
    2-4  this section.
    2-5        (b)  A training program established under this section must
    2-6  provide information to the member regarding:
    2-7              (1)  the enabling legislation that created the
    2-8  commission;
    2-9              (2)  the programs operated by the commission;
   2-10              (3)  the role and functions of the commission;
   2-11              (4)  the rules of the commission, with an emphasis on
   2-12  the rules that relate to disciplinary and investigatory authority;
   2-13              (5)  the current budget for the commission;
   2-14              (6)  the results of the most recent formal audit of the
   2-15  commission;
   2-16              (7)  the requirements of:
   2-17                    (A)  the open meetings law, Chapter 551,
   2-18  Government Code;
   2-19                    (B)  the open records law, Chapter 552,
   2-20  Government Code; and
   2-21                    (C)  the administrative procedure law, Chapter
   2-22  2001, Government Code;
   2-23              (8)  the requirements of the conflict of interest laws
   2-24  and other laws relating to public officials; and
   2-25              (9)  any applicable ethics policies adopted by the
   2-26  commission or the Texas Ethics Commission.
   2-27        SECTION 1.04.  Section 402.003, Labor Code, is amended to
    3-1  read as follows:
    3-2        Sec. 402.003.  EFFECT OF LOBBYING ACTIVITY.  A person may not
    3-3  serve as a member of the commission or act as the general counsel
    3-4  to the commission if the person is required to register as a
    3-5  lobbyist under Chapter 305, Government Code, because of the
    3-6  person's activities for compensation on behalf of a profession that
    3-7  is regulated by or that has fees regulated by the commission <A
    3-8  member of the commission may not be a lobbyist required to be
    3-9  registered under Chapter 305, Government Code, if the primary
   3-10  purpose of the person's employment is to influence the passage of
   3-11  legislation>.
   3-12        SECTION 1.05.  Sections 402.005(a) and (c), Labor Code, are
   3-13  amended to read as follows:
   3-14        (a)  It is a ground for removal from the commission if <that>
   3-15  a member:
   3-16              (1)  does not have at the time of appointment the
   3-17  qualifications required for appointment to the commission;
   3-18              (2)  does not maintain during service on the commission
   3-19  the qualifications required for appointment to the commission;
   3-20              (3)  violates a prohibition established by Section
   3-21  402.003 or 402.012;
   3-22              (4)  cannot <discharge> because of illness or
   3-23  incapacity discharge the member's duties for a substantial part of
   3-24  the term for which the member is appointed; or
   3-25              (5) <(4)>  is absent from more than half of the
   3-26  regularly scheduled commission meetings that the member is eligible
   3-27  to attend during a calendar year <unless the absence is excused by
    4-1  a majority vote of the commission>.
    4-2        (c)  If the executive director of the commission knows that a
    4-3  potential ground for removal exists, the executive director shall
    4-4  notify the chairman of the commission of the potential ground.  The
    4-5  chairman shall then notify the governor and the attorney general
    4-6  that a potential ground for removal exists.  If the potential
    4-7  ground for removal involves the chairman, the executive director
    4-8  shall notify the next highest officer of the commission, who shall
    4-9  notify the governor and the attorney general that a potential
   4-10  ground for removal exists.
   4-11        SECTION 1.06.  Section 402.008(a), Labor Code, is amended to
   4-12  read as follows:
   4-13        (a)  The governor shall designate a member of the commission
   4-14  as the chairman of the commission <The commission shall elect one
   4-15  of its members> to serve in that capacity <as chairman> for a
   4-16  two-year term expiring February 1 of each odd-numbered year.  The
   4-17  governor shall alternate the chairmanship between the members who
   4-18  are employers and the members who are wage earners.
   4-19        SECTION 1.07.  Subchapter A, Chapter 402, Labor Code, is
   4-20  amended by adding Section 402.012 to read as follows:
   4-21        Sec. 402.012.  CONFLICT OF INTEREST.  (a)  An officer,
   4-22  employee, or paid consultant of a Texas trade association whose
   4-23  members provide services subject to regulation by the commission or
   4-24  provide services whose fees are subject to regulation by the
   4-25  commission may not be a member of the commission or an employee of
   4-26  the commission who is exempt from the state's position
   4-27  classification plan or is compensated at or above the amount
    5-1  prescribed by the General Appropriations Act for step 1, salary
    5-2  group 17, of the position classification salary schedule.
    5-3        (b)  On acceptance of appointment to the commission, an
    5-4  appointee who is an officer, employee, or paid consultant of a
    5-5  Texas trade association described by Subsection (a) must resign the
    5-6  position or terminate the contract with the trade association.
    5-7        (c)  For the purposes of this section, "Texas trade
    5-8  association" means a nonprofit, cooperative, and voluntarily joined
    5-9  association of business or professional competitors in this state
   5-10  designed to assist its members and its industry or profession in
   5-11  dealing with mutual business or professional problems and in
   5-12  promoting their common interest.  The term does not include a labor
   5-13  union or an employees' association.
   5-14        SECTION 1.08.  Section 402.023, Labor Code, is amended to
   5-15  read as follows:
   5-16        Sec. 402.023.  COMPLAINT INFORMATION.  (a)  The executive
   5-17  director shall keep an information file about each written
   5-18  complaint filed with the commission that is unrelated to a specific
   5-19  workers' compensation claim.  The information must include:
   5-20              (1)  the date the complaint is received;
   5-21              (2)  the name of the complainant;
   5-22              (3)  the subject matter of the complaint;
   5-23              (4)  a record of all persons contacted in relation to
   5-24  the complaint;
   5-25              (5)  a summary of the results of the review or
   5-26  investigation of the complaint; and
   5-27              (6)  for complaints for which the commission took no
    6-1  action, an explanation of the reason the complaint was closed
    6-2  without action.
    6-3        (b)  For each written <The commission shall notify the
    6-4  parties to a> complaint that is unrelated to a specific workers'
    6-5  compensation claim that the commission has authority to resolve,
    6-6  the executive director shall provide to the person filing the
    6-7  complaint and the person about whom the complaint is made
    6-8  information about the commission's policies and procedures relating
    6-9  to complaint investigation and resolution.  The commission, <of the
   6-10  status of the complaint> at least quarterly and until final
   6-11  disposition of the complaint, shall notify those persons about the
   6-12  status of the complaint unless the notice would jeopardize an
   6-13  undercover investigation.
   6-14        SECTION 1.09.  Section 402.024, Labor Code, is amended to
   6-15  read as follows:
   6-16        Sec. 402.024.  PUBLIC PARTICIPATION.  (a)  The commission
   6-17  shall develop and implement policies that provide the public with a
   6-18  reasonable opportunity to appear before the commission and to speak
   6-19  on issues under the general jurisdiction of the commission.
   6-20        (b)  The commission shall comply with federal and state laws
   6-21  related to program and facility accessibility.
   6-22        (c)  In addition to compliance with Subsection (a), the
   6-23  <The> executive director shall prepare and maintain a written plan
   6-24  that describes how a person who does not speak English <or who has
   6-25  a physical, mental, or developmental disability> may be provided
   6-26  reasonable access to the commission's programs and services
   6-27  <workers' compensation proceedings>.
    7-1        <(c)  Section 401.011(16) does not apply to the use of
    7-2  "disability" in Subsection (b).>
    7-3        SECTION 1.10.  Section 402.041, Labor Code, is amended by
    7-4  adding Subsection (d) to read as follows:
    7-5        (d)  The commission shall develop and implement policies that
    7-6  clearly separate the policymaking responsibilities of the
    7-7  commission and the management responsibilities of the executive
    7-8  director and the staff of the commission.
    7-9        SECTION 1.11.  Section 402.044, Labor Code, is amended to
   7-10  read as follows:
   7-11        Sec. 402.044.  CAREER LADDER; ANNUAL PERFORMANCE EVALUATIONS.
   7-12  (a)  The executive director shall develop an intra-agency career
   7-13  ladder program that addresses opportunities for mobility and
   7-14  advancement for employees within the commission.  The program shall
   7-15  require intra-agency postings of all <nonentry level> positions
   7-16  concurrently with any public posting.
   7-17        (b)  The executive director shall develop a system of annual
   7-18  performance evaluations that are based on documented employee
   7-19  performance.  All merit pay for commission employees must be based
   7-20  on the system established under this subsection.
   7-21        SECTION 1.12.  Section 402.045, Labor Code, is amended to
   7-22  read as follows:
   7-23        Sec. 402.045.  EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
   7-24  (a)  The executive director shall prepare and maintain a written
   7-25  policy statement <approved by the commission> to ensure
   7-26  implementation of a program of equal employment opportunity under
   7-27  which all personnel transactions are made without regard to race,
    8-1  color, disability, sex, religion, age, or national origin.  The
    8-2  policy statement must include:
    8-3              (1)  personnel policies, including policies related to
    8-4  recruitment, evaluation, selection, appointment, training, and
    8-5  promotion of personnel that are in compliance with the requirements
    8-6  of Chapter 21;
    8-7              (2)  a comprehensive analysis of the commission work
    8-8  force that meets federal and state guidelines <of the commission's
    8-9  work force>;
   8-10              (3)  procedures by which a determination can be made of
   8-11  significant underuse in the commission <commission's> work force of
   8-12  all persons for whom federal or state guidelines encourage a more
   8-13  equitable balance; and
   8-14              (4)  reasonable methods to appropriately address those
   8-15  areas of <significant> underuse <appropriately>.
   8-16        (b)  A policy statement prepared under this section must:
   8-17              (1)  cover an annual period;
   8-18              (2)  be updated <at least> annually; <and>
   8-19              (3)  be reviewed by the Commission on Human Rights for
   8-20  compliance with Subsection (a)(1); and
   8-21              (4)  be filed with the governor's office.
   8-22        (c)  The governor's office shall deliver a biennial report to
   8-23  the legislature based on the information received under Subsection
   8-24  (b) <this section>.  The report may be made separately or as part
   8-25  of other biennial reports made to the legislature.
   8-26        SECTION 1.13.  Section 402.068, Labor Code, is amended to
   8-27  read as follows:
    9-1        Sec. 402.068.  DELEGATION OF RIGHTS AND DUTIES <PROHIBITED>.
    9-2  Except as expressly provided by this subchapter <Section 402.065>,
    9-3  the commission may not delegate rights and duties imposed on it by
    9-4  this subchapter.
    9-5        SECTION 1.14.  Section 402.069, Labor Code, is amended to
    9-6  read as follows:
    9-7        Sec. 402.069.  QUALIFICATIONS AND STANDARDS OF CONDUCT
    9-8  INFORMATION.  The executive director <commission> shall provide to
    9-9  <its> members of the commission and commission employees, as often
   9-10  as necessary, information regarding their:
   9-11              (1)  qualifications for office or employment under this
   9-12  subtitle; and
   9-13              (2)  responsibilities under applicable law relating to
   9-14  standards of conduct for state officers or employees.
   9-15        SECTION 1.15.  Section 402.070, Labor Code, is amended to
   9-16  read as follows:
   9-17        Sec. 402.070.  ANNUAL REPORT.  (a)  The commission shall
   9-18  prepare <file> annually <with the governor and the presiding
   9-19  officer of each house of the legislature> a complete and detailed
   9-20  written report accounting for all funds received and disbursed by
   9-21  the commission during the preceding fiscal year.
   9-22        (b)  The report required under this section must meet the
   9-23  reporting requirements applicable to financial reporting that are
   9-24  <be in the form and reported in the time> provided by the General
   9-25  Appropriations Act.
   9-26        SECTION 1.16.  Subchapter D, Chapter 402, Labor Code, is
   9-27  amended by adding Section 402.073 to read as follows:
   10-1        Sec. 402.073.  COOPERATION WITH STATE OFFICE OF
   10-2  ADMINISTRATIVE HEARINGS.  (a)  The commission and the chief
   10-3  administrative law judge of the State Office of Administrative
   10-4  Hearings by rule shall adopt a memorandum of understanding
   10-5  governing administrative procedure law hearings under this subtitle
   10-6  conducted by the State Office of Administrative Hearings in the
   10-7  manner provided for a contested case hearing under Chapter 2001,
   10-8  Government Code (the administrative procedure law).
   10-9        (b)  In a case in which a hearing is conducted by the State
  10-10  Office of Administrative Hearings under Section 411.049, 413.031,
  10-11  or 415.034, the administrative law judge who conducts the hearing
  10-12  for the State Office of Administrative Hearings shall enter the
  10-13  final decision in the case after completion of the hearing.
  10-14        (c)  In a case in which a hearing is conducted in conjunction
  10-15  with Section 402.072, 407.046, or 408.023, and in other cases under
  10-16  this subtitle that are not subject to Subsection (b), the
  10-17  administrative law judge who conducts the hearing for the State
  10-18  Office of Administrative Hearings shall propose a decision to the
  10-19  commission for final consideration and decision by the commission.
  10-20        SECTION 1.17.  Section 402.091(d), Labor Code, is amended to
  10-21  read as follows:
  10-22        (d)  An offense under this section may be prosecuted in a
  10-23  court in<:>
  10-24              <(1)  Travis County; or>
  10-25              <(2)>  the county where the information was unlawfully
  10-26  received, published, disclosed, or distributed.
  10-27        SECTION 1.18.   Subchapter E, Chapter 402, Labor Code, is
   11-1  amended by adding Section 402.092 to read as follows:
   11-2        Sec. 402.092.  INVESTIGATION FILES CONFIDENTIAL.  (a)
   11-3  Information maintained in the investigation files of the commission
   11-4  is confidential and may not be disclosed except:
   11-5              (1)  in a criminal proceeding;
   11-6              (2)  in a hearing conducted by the commission;
   11-7              (3)  on a judicial determination of good cause; or
   11-8              (4)  to a governmental agency, political subdivision,
   11-9  or regulatory body if the disclosure is necessary or proper for the
  11-10  enforcement of the laws of this or another state or of the United
  11-11  States.
  11-12        (b)  Commission investigation files are not open records for
  11-13  purposes of Chapter 552, Government Code.
  11-14        (c)  Information in an investigation file that is information
  11-15  in or derived from a claim file, or an employer injury report or
  11-16  occupational disease report, is governed by the confidentiality
  11-17  provisions relating to that information.
  11-18        (d)  For purposes of this section, "investigation file" means
  11-19  any information compiled or maintained by the commission with
  11-20  respect to a commission investigation authorized by law.
  11-21        SECTION 1.19.  Subchapter E, Chapter 406, Labor Code, is
  11-22  amended by adding Section 406.097 to read as follows:
  11-23        Sec. 406.097.  EXECUTIVE EMPLOYEES OF CERTAIN BUSINESS
  11-24  ENTITIES.  A sole proprietor, partner, or corporate executive
  11-25  officer of a business entity that elects to provide workers'
  11-26  compensation insurance coverage is entitled to benefits under that
  11-27  coverage as an employee unless the sole proprietor, partner, or
   12-1  corporate executive officer is specifically excluded from coverage
   12-2  through an endorsement to the insurance policy or certificate of
   12-3  authority to self-insure.
   12-4        SECTION 1.20.  Sections 407.046(b) and (c), Labor Code, are
   12-5  amended to read as follows:
   12-6        (b)  If the commission believes that a ground exists to
   12-7  revoke a certificate of authority to self-insure, the commission
   12-8  shall refer the matter to the State Office of Administrative
   12-9  Hearings.  That office shall hold a hearing to determine if the
  12-10  certificate should be revoked.  The hearing shall be conducted in
  12-11  the manner provided for a contested case hearing under Chapter
  12-12  2001, Government Code (the administrative procedure law
  12-13  <Administrative Procedure and Texas Register Act (Article 6252-13a,
  12-14  Vernon's Texas Civil Statutes>).
  12-15        (c)  The State Office of Administrative Hearings <commission>
  12-16  shall notify the certified self-insurer of the hearing and the
  12-17  grounds not later than the 30th day before the scheduled hearing
  12-18  date.
  12-19        SECTION 1.21.  Section 407.122, Labor Code, is amended by
  12-20  amending Subsections (b) and (c) and by adding Subsection (d) to
  12-21  read as follows:
  12-22        (b)  The board of directors is composed of the following
  12-23  voting members:
  12-24              (1)  three <two> certified self-insurers;
  12-25              (2)  one commission member representing wage earners;
  12-26              (3)  one commission member representing employers; and
  12-27              (4)  <the executive director of the commission; and>
   13-1              <(5)>  the public counsel of the office of public
   13-2  insurance counsel.
   13-3        (c)  The executive director of the commission and the
   13-4  director of the division of self-insurance regulation serve
   13-5  <serves> as <a> nonvoting members <member> of the board of
   13-6  directors.
   13-7        (d)  A member of the board of directors or a member of the
   13-8  staff of the board of directors is not liable in a civil action for
   13-9  an act performed in good faith in the execution of that person's
  13-10  powers or duties.
  13-11        SECTION 1.22.  Section 407.126, Labor Code, is amended to
  13-12  read as follows:
  13-13        Sec. 407.126.  Trust Fund; Fee; SCHEDULE.  (a)  Each member
  13-14  of the association shall be assessed a fee, based on total amount
  13-15  of income benefits payments made in this state for the preceding
  13-16  reported calendar year, to create, over a period of 10 <five> years
  13-17  beginning January 1, 1993, a Texas certified self-insurer guaranty
  13-18  trust fund of at least $1 million for the emergency payment of the
  13-19  compensation liabilities of an impaired employer.  The fund may not
  13-20  exceed $2 million.
  13-21        (b)  The board of directors shall adopt a year-by-year
  13-22  schedule of assessments to meet the 10-year funding goal of the
  13-23  trust fund.
  13-24        (c)  The assessment for the first year after an employer is
  13-25  issued a certificate of authority to self-insure shall be based on
  13-26  the income benefit payments paid by the employer's insurance
  13-27  carrier on the employer's policy in the year before the certificate
   14-1  was issued.
   14-2        (d) <(c)>  The board of directors shall administer the trust
   14-3  fund in accordance with rules adopted by the commission.
   14-4        SECTION 1.23.  Section 408.023(b), Labor Code, is amended to
   14-5  read as follows:
   14-6        (b)  The commission shall establish criteria for deleting a
   14-7  doctor from the list of approved doctors.  The criteria may include
   14-8  anything the commission considers relevant, including:
   14-9              (1)  sanctions of the doctor by the commission for
  14-10  violations of Chapter 413 or Chapter 415;
  14-11              (2)  sanctions by the Medicare or Medicaid program for:
  14-12                    (A)  substandard medical care;
  14-13                    (B)  overcharging; or
  14-14                    (C)  overutilization of medical services;
  14-15              (3)  evidence from the commission's medical records
  14-16  that the doctor's charges, fees, diagnoses, or treatments are
  14-17  substantially different from those the commission finds to be fair
  14-18  and reasonable; and
  14-19              (4)  suspension of the doctor's license by the
  14-20  appropriate licensing authority.
  14-21        SECTION 1.24.  Section 408.083, Labor Code, is amended to
  14-22  read as follows:
  14-23        Sec. 408.083.  Termination of Right to Temporary Income,
  14-24  Impairment Income, and Supplemental Income Benefits.  (a)  Except
  14-25  as provided by Subsection (b), an <An> employee's eligibility for
  14-26  temporary income benefits, impairment income benefits, and
  14-27  supplemental income benefits terminates on the expiration of 401
   15-1  weeks after the date of injury.
   15-2        (b)  If an employee incurs an occupational disease, the
   15-3  employee's eligibility for temporary income benefits, impairment
   15-4  income benefits, and supplemental income benefits terminates on the
   15-5  expiration of 401 weeks after the date on which benefits began to
   15-6  accrue.
   15-7        SECTION 1.25.  Section 408.122, Labor Code, is amended to
   15-8  read as follows:
   15-9        Sec. 408.122.  Eligibility for Impairment Income Benefits;
  15-10  DESIGNATED DOCTOR.  (a)  A claimant may not recover impairment
  15-11  income benefits unless evidence of impairment based on an objective
  15-12  clinical or laboratory finding exists.  If the finding of
  15-13  impairment is made by a doctor chosen by the claimant and the
  15-14  finding is contested, a designated doctor or a doctor selected by
  15-15  the insurance carrier must be able to confirm the objective
  15-16  clinical or laboratory finding on which the finding of impairment
  15-17  is based.
  15-18        (b)  To be eligible to serve as a designated doctor, a doctor
  15-19  must meet specific qualifications, including training in the
  15-20  determination of impairment ratings.  The executive director shall
  15-21  develop qualification standards and administrative policies to
  15-22  implement this subsection, and the commission may adopt rules as
  15-23  necessary.
  15-24        (c)  If a dispute exists as to whether the employee has
  15-25  reached maximum medical improvement, the commission shall direct
  15-26  the employee to be examined by a designated doctor chosen by mutual
  15-27  agreement of the parties.  If the parties are unable to agree on a
   16-1  designated doctor, the commission shall direct the employee to be
   16-2  examined by a designated doctor chosen by the commission.  The
   16-3  designated doctor shall report to the commission.  The report of
   16-4  the designated doctor has presumptive weight, and the commission
   16-5  shall base its determination of whether the employee has reached
   16-6  maximum medical improvement on the report unless the great weight
   16-7  of the other medical evidence is to the contrary.
   16-8        SECTION 1.26.  Section 408.125, Labor Code, is amended by
   16-9  adding Subsection (f) to read as follows:
  16-10        (f)  To avoid undue influence on a person selected as a
  16-11  designated doctor under this section, only the injured employee or
  16-12  an appropriate member of the staff of the commission may
  16-13  communicate with the designated doctor about the case regarding the
  16-14  injured employee's medical condition or history before the
  16-15  examination of the injured employee by the designated doctor.
  16-16  After that examination is completed, communication with the
  16-17  designated doctor regarding the injured employee's medical
  16-18  condition or history may be made only through appropriate
  16-19  commission staff members.  The designated doctor may initiate
  16-20  communication with any doctor who has previously treated or
  16-21  examined the injured employee for the work-related injury.
  16-22        SECTION 1.27.   Section 409.005, Labor Code, is amended to
  16-23  read as follows:
  16-24        Sec. 409.005.  <Employer> Report of Injury; Administrative
  16-25  Violation.  (a)  An employer shall <file a written> report to
  16-26  <with> the <commission and the> employer's insurance carrier if:
  16-27              (1)  an injury results in the absence of an employee of
   17-1  that employer from work for more than one day; or
   17-2              (2)  an employee of the employer notifies that employer
   17-3  of an occupational disease under Section 409.001.
   17-4        (b)  The report under Subsection (a) must be made <mailed or
   17-5  delivered to the commission and the insurance carrier> not later
   17-6  than the eighth day after:
   17-7              (1)  the employee's absence from work for more than one
   17-8  day due to an injury; or
   17-9              (2)  the day on which the employer receives notice
  17-10  under Section 409.001 that the employee has contracted an
  17-11  occupational disease.
  17-12        (c)  The <A report required under this section may not be
  17-13  considered to be an admission by or evidence against an> employer
  17-14  shall deliver a written copy of the report under Subsection (a) to
  17-15  the injured employee at the time that the report is made to the <or
  17-16  an> insurance carrier <in a proceeding before the commission or a
  17-17  court in which the facts set out in the report are contradicted by
  17-18  the employer or insurance carrier>.
  17-19        (d)  The insurance carrier shall file the report of the
  17-20  injury on behalf of the policyholder.  Except as provided by
  17-21  Subsection (e), the insurance carrier must electronically file the
  17-22  report with the commission not later than the seventh day after the
  17-23  date on which the carrier receives the report from the employer.
  17-24        (e)  The executive director may waive the electronic filing
  17-25  requirement under Subsection (d) and allow an insurance carrier to
  17-26  mail or deliver the report to the commission not later than the
  17-27  seventh day after the date on which the carrier receives the report
   18-1  from the employer.
   18-2        (f)  A report required under this section may not be
   18-3  considered to be an admission by or evidence against an employer or
   18-4  an insurance carrier in a proceeding before the commission or a
   18-5  court in which the facts set out in the report are contradicted by
   18-6  the employer or insurance carrier.
   18-7        (g)  In addition to any information required under Subsection
   18-8  (h), the report provided to the injured employee under Subsection
   18-9  (c) must contain a summary written in plain language of the
  18-10  employee's statutory rights and responsibilities under this
  18-11  subtitle.
  18-12        (h) <(d)>  The commission may adopt rules relating to:
  18-13              (1)  the information that must be contained in a report
  18-14  required under this section, including the summary of rights and
  18-15  responsibilities required under Subsection (g); and
  18-16              (2)  the development and implementation of an
  18-17  electronic filing system for injury reports under this section.
  18-18        (i) <(e)>  An employer and insurance carrier shall file
  18-19  subsequent reports as required by commission rule.
  18-20        (j) <(f)>  A person commits a violation if the person fails
  18-21  to comply with this section unless good cause exists.  A violation
  18-22  under this subsection is a Class D administrative violation.
  18-23        SECTION 1.28.  Subchapter A, Chapter 409, Labor Code, is
  18-24  amended by adding Section 409.013 to read as follows:
  18-25        Sec. 409.013.  PLAIN LANGUAGE INFORMATION; NOTIFICATION OF
  18-26  INJURED WORKER.  (a)  The commission shall develop information for
  18-27  public dissemination about the benefit process and the compensation
   19-1  procedures established under this chapter.  The information must
   19-2  be:
   19-3              (1)  written in plain language;
   19-4              (2)  available in English and Spanish; and
   19-5              (3)  available on request to employers and employees.
   19-6        (b)  On receipt of a report under Section 409.005, the
   19-7  commission shall contact the affected employee by mail or by
   19-8  telephone and shall provide the information required under
   19-9  Subsection (a) to that employee, together with any other
  19-10  information that may be prepared by the commission for public
  19-11  dissemination that relates to the employee's situation, such as
  19-12  information relating to back injuries or occupational diseases.
  19-13        SECTION 1.29.  Subchapter C, Chapter 409, Labor Code, is
  19-14  amended to read as follows:
  19-15                   SUBCHAPTER C.  OMBUDSMAN PROGRAM
  19-16        Sec. 409.041.  Ombudsman Program<; ADMINISTRATIVE VIOLATION>.
  19-17  (a)  The commission shall maintain an ombudsman program as provided
  19-18  by this subchapter to assist injured workers and persons claiming
  19-19  death benefits in obtaining benefits under this subtitle.
  19-20        (b)  An ombudsman shall:
  19-21              (1)  meet with or otherwise provide information to
  19-22  injured workers;
  19-23              (2)  investigate complaints;
  19-24              (3)  communicate with employers, insurance carriers,
  19-25  and health care providers on behalf of injured workers; and
  19-26              (4)  assist unrepresented claimants, employers, and
  19-27  other parties to enable those persons to protect their rights in
   20-1  the workers' compensation system.
   20-2        Sec. 409.042.  DESIGNATION AS OMBUDSMAN; ELIGIBILITY AND
   20-3  TRAINING REQUIREMENTS; CONTINUING EDUCATION REQUIREMENTS.
   20-4  (a) <(c)>  At least one specially qualified employee in each
   20-5  commission office shall be designated an ombudsman who shall
   20-6  perform the duties under this section as the person's primary
   20-7  responsibility.
   20-8        (b)  To be eligible for designation as an ombudsman, a person
   20-9  must:
  20-10              (1)  demonstrate satisfactory knowledge of the
  20-11  requirements of:
  20-12                    (A)  this subtitle and the provisions of Subtitle
  20-13  C that relate to claims management;
  20-14                    (B)  other laws relating to workers'
  20-15  compensation; and
  20-16                    (C)  rules adopted under this subtitle and the
  20-17  laws described under Subdivision (1)(B);
  20-18              (2)  have demonstrated experience in handling and
  20-19  resolving problems for the general public;
  20-20              (3)  possess strong interpersonal skills; and
  20-21              (4)  have at least three years of demonstrated
  20-22  experience in the field of workers' compensation.
  20-23        (c)  The commission by rule shall adopt training guidelines
  20-24  and continuing education requirements for ombudsmen.  Training
  20-25  provided under this subsection must:
  20-26              (1)  include education regarding this subtitle, rules
  20-27  adopted under this subtitle, and appeals panel decisions, with
   21-1  emphasis on benefits and the dispute resolution process; and
   21-2              (2)  require an ombudsman undergoing training to be
   21-3  observed and monitored by an experienced ombudsman during daily
   21-4  activities conducted under this subchapter.
   21-5        Sec. 409.043.  EMPLOYER NOTIFICATION; ADMINISTRATIVE
   21-6  VIOLATION.  (a) <(d)>  Each employer shall notify its employees of
   21-7  the ombudsman program in a manner prescribed by the commission.
   21-8        (b)  An employer commits a violation if the employer fails to
   21-9  comply with this section <subsection>.  A violation under this
  21-10  section <subsection> is a Class C administrative violation.
  21-11        Sec. 409.044 <409.042>.  PUBLIC INFORMATION.  The commission
  21-12  shall widely disseminate information about the ombudsman program.
  21-13        SECTION 1.30.  Section 411.032, Labor Code, is amended to
  21-14  read as follows:
  21-15        Sec. 411.032.  Employer Injury and Occupational Disease
  21-16  Report; ADMINISTRATIVE VIOLATION.  (a)  An employer shall file with
  21-17  the commission a report of each:
  21-18              (1)  on-the-job injury that results in the employee's
  21-19  absence from work for more than one day; and
  21-20              (2)  occupational disease of which the employer has
  21-21  knowledge.
  21-22        (b)  The commission shall adopt rules and prescribe the form
  21-23  and manner of reports filed under this section.
  21-24        (c)  An employer commits an administrative violation if the
  21-25  employer fails to report to the commission as required under
  21-26  Subsection (a) unless good cause exists, as determined by the
  21-27  commission, for the failure.  A violation under this subsection is
   22-1  a Class D administrative violation.
   22-2        SECTION 1.31.  Section 411.034, Labor Code, is amended to
   22-3  read as follows:
   22-4        Sec. 411.034.  Confidentiality Requirement; OFFENSE; PENALTY.
   22-5  (a)  The identity of an employee in a report filed under Section
   22-6  411.032 is confidential and may not be disclosed as part of the job
   22-7  safety information system.
   22-8        (b)  A person commits an offense if the person knowingly,
   22-9  intentionally, or recklessly publishes, discloses, or distributes
  22-10  information that is confidential under this section to a person not
  22-11  authorized to receive the information.
  22-12        (c)  A person commits an offense if the person knowingly,
  22-13  intentionally, or recklessly receives information that is
  22-14  confidential under this section and that the person is not
  22-15  authorized to receive.
  22-16        (d)  An offense under this section is a Class A misdemeanor.
  22-17        (e)  An offense under this section may be prosecuted in a
  22-18  court in the county where the information was unlawfully received,
  22-19  published, disclosed, or distributed.
  22-20        (f)  A district court in Travis County has jurisdiction to
  22-21  enjoin the use, publication, disclosure, or distribution of
  22-22  confidential information under this section.
  22-23        SECTION 1.32.  Section 411.041(b), Labor Code, is amended to
  22-24  read as follows:
  22-25        (b)  Except as provided by Section 411.0415, an <An> employer
  22-26  whose injury frequencies substantially exceed those that may
  22-27  reasonably be expected in that employer's business or industry is
   23-1  an extra-hazardous employer.
   23-2        SECTION 1.33.  Subchapter D, Chapter 411, Labor Code, is
   23-3  amended by adding Section 411.0415 to read as follows:
   23-4        Sec. 411.0415.  EXEMPTION FOR CERTAIN EMPLOYERS; HEARING.
   23-5  (a)  The executive director may exclude from identification as an
   23-6  extra-hazardous employer an employer who presents evidence
   23-7  satisfactory to the commission that the injury frequencies of the
   23-8  employer substantially exceed those that may reasonably be expected
   23-9  in that employer's business or industry only because of a fatality
  23-10  that:
  23-11              (1)  occurred because of factors beyond the employer's
  23-12  control; or
  23-13              (2)  was outside the course and scope of the deceased
  23-14  individual's employment.
  23-15        (b)  The commission by rule shall analyze and list fatalities
  23-16  that may not be related to the work environment, including:
  23-17              (1)  heart attacks;
  23-18              (2)  common diseases of life;
  23-19              (3)  homicides;
  23-20              (4)  suicides;
  23-21              (5)  vehicle accidents involving a third party;
  23-22              (6)  common carrier accidents; and
  23-23              (7)  natural events.
  23-24        (c)  If the commission determines that the case history of
  23-25  the employee's fatality indicates that the employer or the work
  23-26  environment was the proximate cause of the fatality, the commission
  23-27  may request a hearing under Section 411.049.  If the hearing
   24-1  establishes that the proximate cause of the fatality was a factor
   24-2  or factors within the employer's control and was within the course
   24-3  and scope of the employment, the commission may require the
   24-4  employer to participate in the extra-hazardous employers program if
   24-5  that fatality causes the employer to be designated as an
   24-6  extra-hazardous employer.
   24-7        SECTION 1.34.  Section 411.045(a), Labor Code, is amended to
   24-8  read as follows:
   24-9        (a)  Not earlier than six months or later than nine <Six>
  24-10  months after the formulation of an accident prevention plan under
  24-11  Section 411.043, the division shall conduct a follow-up inspection
  24-12  of the employer's premises.  The commission may require the
  24-13  participation of the safety consultant who performed the initial
  24-14  consultation and formulated the safety plan.
  24-15        SECTION 1.35.  Section 411.049(b), Labor Code, is amended to
  24-16  read as follows:
  24-17        (b)  The hearing shall be conducted by the State Office of
  24-18  Administrative Hearings in the manner provided for a contested case
  24-19  under Chapter 2001, Government Code (the administrative procedure
  24-20  law <Administrative Procedure and Texas Register Act (Article
  24-21  6252-13a, Vernon's Texas Civil Statutes>) and is subject to
  24-22  judicial review as provided by that chapter <Act>.
  24-23        SECTION 1.36.  Section 411.062, Labor Code, is amended to
  24-24  read as follows:
  24-25        Sec. 411.062.  Field Safety Representative; Qualifications.
  24-26  (a)  The commission by rule shall establish qualifications for
  24-27  field safety representatives.  The rules must include education and
   25-1  experience requirements for those representatives.
   25-2        (b)  Each <A> field safety representative must meet the
   25-3  qualifications established by the commission <be:>
   25-4              <(1)  a college graduate with a bachelor's degree in
   25-5  science or engineering;>
   25-6              <(2)  a registered professional engineer;>
   25-7              <(3)  a certified safety professional;>
   25-8              <(4)  a certified industrial hygienist;>
   25-9              <(5)  an individual with 10 years' experience in
  25-10  occupational safety and health; or>
  25-11              <(6)  an individual who has completed a certified
  25-12  training program in accident prevention services approved by the
  25-13  division>.
  25-14        SECTION 1.37.  Chapter 412, Labor Code, is amended by adding
  25-15  Section 412.0025 to read as follows:
  25-16        Sec. 412.0025.  DUTIES OF STATE AGENCIES.  Each state agency
  25-17  subject to this chapter shall actively manage the risks of that
  25-18  agency by developing, implementing, and maintaining health and
  25-19  safety programs and programs designed to assist employees who
  25-20  sustain compensable injuries to return to work.
  25-21        SECTION 1.38.  Section 412.003(a), Labor Code, is amended to
  25-22  read as follows:
  25-23        (a)  The division shall:
  25-24              (1)  administer guidelines adopted by the commission
  25-25  for a comprehensive risk management program applicable to all state
  25-26  agencies to reduce property and liability losses, including
  25-27  workers' compensation losses; and
   26-1              (2)  review, verify, monitor, and approve risk
   26-2  management programs adopted by state agencies.
   26-3        SECTION 1.39.  Section 412.007(b), Labor Code, is amended to
   26-4  read as follows:
   26-5        (b)  The report must include:
   26-6              (1)  the frequency, severity, and aggregate amount of
   26-7  open and closed claims in the preceding biennium by category of
   26-8  risk, including final judgments;
   26-9              (2)  the identification of each state agency that has
  26-10  not complied with the risk management guidelines and reporting
  26-11  requirements of this chapter; and
  26-12              (3)  recommendations for the coordination and
  26-13  administration of a comprehensive risk management program to serve
  26-14  all state agencies, including recommendations for any necessary
  26-15  statutory changes.
  26-16        SECTION 1.40.  Section 413.002, Labor Code, is amended by
  26-17  adding Subsection (c) to read as follows:
  26-18        (c)  In monitoring health care providers who serve as
  26-19  designated doctors under Chapter 408, the division shall evaluate
  26-20  the compliance of those providers with this subtitle and with rules
  26-21  adopted by the commission relating to medical policies, fee
  26-22  guidelines, and impairment ratings.
  26-23        SECTION 1.41.  Section 413.031(d), Labor Code, is amended to
  26-24  read as follows:
  26-25        (d)  A party to a medical dispute that remains unresolved
  26-26  after a review of the medical service under this section is
  26-27  entitled to a hearing.  The hearing shall be conducted by the State
   27-1  Office of Administrative Hearings in the manner provided for a
   27-2  contested case under Chapter 2001, Government Code (the
   27-3  administrative procedure law <Administrative Procedure and Texas
   27-4  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes>).
   27-5        SECTION 1.42.  Subchapter D, Chapter 413, Labor Code, is
   27-6  amended by adding Section 413.044 to read as follows:
   27-7        Sec. 413.044.  SANCTIONS ON DESIGNATED DOCTOR.  In addition
   27-8  to or in lieu of an administrative penalty under Section 415.021 or
   27-9  a sanction imposed under Section 415.023, the commission may impose
  27-10  sanctions against a person who serves as a designated doctor under
  27-11  Chapter 408 who, after an evaluation conducted under Section
  27-12  413.002(c), is determined by the division to be out of compliance
  27-13  with this subtitle or with rules adopted by the commission relating
  27-14  to medical policies, fee guidelines, and impairment ratings.
  27-15        SECTION 1.43.  Subchapter A, Chapter 415, Labor Code, is
  27-16  amended by amending Sections 415.002 and 415.003 and by adding
  27-17  Section 415.0035 to read as follows:
  27-18        Sec. 415.002.  Administrative Violation by an Insurance
  27-19  Carrier.  (a)  An insurance carrier or its representative commits
  27-20  an administrative violation if that person wilfully or
  27-21  intentionally:
  27-22              (1)  misrepresents a provision of this subtitle to an
  27-23  employee, an employer, a health care provider, or a legal
  27-24  beneficiary;
  27-25              (2)  <fails to submit to the commission a settlement or
  27-26  agreement of the parties;>
  27-27              <(3)  fails to timely notify the commission of the
   28-1  termination or reduction of benefits and the reason for that
   28-2  action;>
   28-3              <(4)>  terminates or reduces benefits without
   28-4  substantiating evidence that the action is reasonable and
   28-5  authorized by law;
   28-6              (3) <(5)>  instructs an employer not to file a document
   28-7  required to be filed with the commission;
   28-8              (4) <(6)>  instructs or encourages an employer to
   28-9  violate a claimant's right to medical benefits under this subtitle;
  28-10              (5) <(7)>  fails to tender promptly full death benefits
  28-11  if a legitimate dispute does not exist as to the liability of the
  28-12  insurance carrier;
  28-13              (6) <(8)>  allows an employer, other than a
  28-14  self-insured employer, to dictate the methods by which and the
  28-15  terms on which a claim is handled and settled;
  28-16              (7) <(9)>  fails to confirm medical benefits coverage
  28-17  to a person or facility providing medical treatment to a claimant
  28-18  if a legitimate dispute does not exist as to the liability of the
  28-19  insurance carrier;
  28-20              (8) <(10)>  fails, without good cause, to attend a
  28-21  dispute resolution proceeding within the commission;
  28-22              (9) <(11)>  attends a dispute resolution proceeding
  28-23  within the commission without complete authority or fails to
  28-24  exercise authority to effectuate agreement or settlement;
  28-25              (10) <(12)>  adjusts a workers' compensation claim in a
  28-26  manner contrary to license requirements for an insurance adjuster,
  28-27  including the requirements of Chapter 407, Acts of the 63rd
   29-1  Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas
   29-2  Insurance Code), or the rules of the State Board of Insurance;
   29-3              (11) <(13)>  fails to process claims promptly in a
   29-4  reasonable and prudent manner;
   29-5              (12) <(14)>  fails to initiate or reinstate benefits
   29-6  when due if a legitimate dispute does not exist as to the liability
   29-7  of the insurance carrier;
   29-8              (13) <(15)>  misrepresents the reason for not paying
   29-9  benefits or terminating or reducing the payment of benefits;
  29-10              (14) <(16)>  dates documents to misrepresent the actual
  29-11  date of the initiation of benefits;
  29-12              (15) <(17)>  makes a notation on a draft or other
  29-13  instrument indicating that the draft or instrument represents a
  29-14  final settlement of a claim if the claim is still open and pending
  29-15  before the commission;
  29-16              (16) <(18)>  fails or refuses to pay benefits from week
  29-17  to week as and when due directly to the person entitled to the
  29-18  benefits;
  29-19              (17) <(19)>  fails to pay an order awarding benefits;
  29-20              (18) <(20)>  controverts a claim if the evidence
  29-21  clearly indicates liability;
  29-22              (19) <(21)  unreasonably denies preauthorization
  29-23  required under Section 413.014 or> unreasonably disputes the
  29-24  reasonableness and necessity of health care;
  29-25              (20) <(22)>  violates a commission rule; or
  29-26              (21) <(23)>  fails to comply with a provision of this
  29-27  subtitle.
   30-1        (b)  An insurance carrier or its representative does not
   30-2  commit an administrative violation under Subsection (a)(6)<(8)> by
   30-3  allowing an employer to:
   30-4              (1)  freely discuss a claim;
   30-5              (2)  assist in the investigation and evaluation of a
   30-6  claim; or
   30-7              (3)  attend a proceeding of the commission and
   30-8  participate at the proceeding in accordance with this subtitle.
   30-9        Sec. 415.003.  Administrative Violation by Health Care
  30-10  Provider.  A health care provider commits an administrative
  30-11  violation if the person wilfully or intentionally:
  30-12              (1)  submits a charge for health care that was not
  30-13  furnished;
  30-14              (2)  administers improper, unreasonable, or medically
  30-15  unnecessary treatment or services;
  30-16              (3)  <fails or refuses to timely file required reports
  30-17  or records;>
  30-18              <(4)>  makes an unnecessary referral;
  30-19              (4) <(5)  fails to disclose an interest as required by
  30-20  Section 413.041;>
  30-21              <(6)>  violates the commission's fee and treatment
  30-22  guidelines;
  30-23              (5) <(7)>  violates a commission rule; or
  30-24              (6) <(8)>  fails to comply with a provision of this
  30-25  subtitle.
  30-26        Sec. 415.0035.  ADDITIONAL VIOLATIONS BY INSURANCE CARRIER OR
  30-27  HEALTH CARE PROVIDER.  (a)  An insurance carrier or its
   31-1  representative commits an administrative violation if that person:
   31-2              (1)  fails to submit to the commission a settlement or
   31-3  agreement of the parties;
   31-4              (2)  fails to timely notify the commission of the
   31-5  termination or reduction of benefits and the reason for that
   31-6  action; or
   31-7              (3)  denies preauthorization in a manner that is not in
   31-8  accordance with rules adopted by the commission under Section
   31-9  413.014.
  31-10        (b)  A health care provider commits an administrative
  31-11  violation if that person:
  31-12              (1)  fails or refuses to timely file required reports
  31-13  or records; or
  31-14              (2)  fails to file with the commission the annual
  31-15  disclosure statement required by Section 413.041.
  31-16        (c)  A violation under Subsection (a) is a Class C
  31-17  administrative violation.
  31-18        (d)  A violation under Subsection (b) is a Class D
  31-19  administrative violation.
  31-20        SECTION 1.44.  Section 415.034(a), Labor Code, is amended to
  31-21  read as follows:
  31-22        (a)  On the request of the charged party or <at the
  31-23  discretion of> the executive director <of the division of
  31-24  hearings>, the State Office of Administrative Hearings <division of
  31-25  hearings> shall set a hearing.  The hearing shall be conducted in
  31-26  the manner provided for a contested case under Chapter 2001,
  31-27  Government Code (the administrative procedure law <Administrative
   32-1  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   32-2  Civil Statutes>).
   32-3        SECTION 1.45.  Subtitle A, Title 5, Labor Code, is amended by
   32-4  adding Chapter 418 to read as follows:
   32-5                   CHAPTER 418.  CRIMINAL PENALTIES
   32-6        Sec. 418.001.  PENALTY FOR FRAUDULENTLY OBTAINING OR DENYING
   32-7  BENEFITS.  (a)  A person commits an offense if the person, with the
   32-8  intent to obtain or deny payment of benefits, including medical
   32-9  benefits, under this subtitle or Subtitle C, for himself or
  32-10  another, knowingly or intentionally:
  32-11              (1)  makes a false or misleading statement;
  32-12              (2)  misrepresents or conceals a material fact; or
  32-13              (3)  fabricates, alters, conceals, or destroys a
  32-14  document other than a governmental record.
  32-15        (b)  An offense under Subsection (a) is:
  32-16              (1)  a Class A misdemeanor if the value of the benefits
  32-17  is less than $1,500; and
  32-18              (2)  a state jail felony if the value of the benefits
  32-19  is $1,500 or more.
  32-20        Sec. 418.002.  PENALTY FOR FRAUDULENTLY OBTAINING WORKERS'
  32-21  COMPENSATION INSURANCE COVERAGE.  (a)  A person commits an offense
  32-22  if the person, with the intent to obtain workers' compensation
  32-23  insurance coverage under the workers' compensation insurance laws
  32-24  of this state or to avoid payment of premiums due for that
  32-25  coverage, for himself or another, knowingly or intentionally:
  32-26              (1)  makes a false statement;
  32-27              (2)  misrepresents or conceals a material fact; or
   33-1              (3)  makes a false entry in, fabricates, alters,
   33-2  conceals, or destroys a document other than a governmental record.
   33-3        (b)  An offense under Subsection (a) is:
   33-4              (1)  a Class A misdemeanor if the amount of premium
   33-5  avoided is less than $1,500; and
   33-6              (2)  a state jail felony if the amount of the premium
   33-7  avoided is $1,500 or more.
   33-8        (c)  The court may order a person to pay restitution to an
   33-9  insurance company, the Texas workers' compensation insurance
  33-10  facility, or the Texas Workers' Compensation Insurance Fund if the
  33-11  person commits an offense under this section.
  33-12        SECTION 1.46.  (a)  The change in law made by Sections
  33-13  402.001, 402.005, and 402.012, Labor Code, as amended or added by
  33-14  this Act, in the qualifications and the grounds for removal of
  33-15  persons appointed to the Texas Workers' Compensation Commission
  33-16  applies only to a member appointed on or after September 1, 1995,
  33-17  and does not affect the entitlement of a member appointed before
  33-18  September 1, 1995, to continue to hold office for the term for
  33-19  which the member was appointed.
  33-20        (b)  The training program required under Section 402.0015,
  33-21  Labor Code, as added by this Act, shall be established not later
  33-22  than January 1, 1996.  Each person appointed to the commission on
  33-23  or after that date must comply with the requirements imposed under
  33-24  that section.
  33-25        SECTION 1.47.   The change in law made by this Act to Section
  33-26  402.008, Labor Code, in the method of selecting the chairman of the
  33-27  Texas Workers' Compensation Commission, applies only to a member
   34-1  designated to serve in that capacity on or after September 1, 1995.
   34-2  The change does not affect the entitlement of a member elected to
   34-3  serve in that capacity before September 1, 1995, to continue to
   34-4  serve in that capacity for the term for which the member was
   34-5  elected.
   34-6        SECTION 1.48.  The Texas Workers' Compensation Commission
   34-7  shall adopt rules as necessary to implement the changes in law made
   34-8  by this Act to Title 5, Labor Code, not later than March 1, 1996.
   34-9        SECTION 1.49.  Section 406.097, Labor Code, as added by this
  34-10  Act, applies only to an insurance policy or certificate of
  34-11  authority to self-insure that is delivered, issued for delivery, or
  34-12  renewed on or after January 1, 1996.  A policy or certificate that
  34-13  is delivered, issued for delivery, or renewed before January 1,
  34-14  1996, is governed by the law as it existed immediately before
  34-15  September 1, 1995, and that law is continued in effect for that
  34-16  purpose.
  34-17        SECTION 1.50.  The change in law made by this Act to Section
  34-18  408.083, Labor Code, applies only to an occupational disease for
  34-19  which the date of injury occurs on or after September 1, 1995.  A
  34-20  claim based on an occupational disease for which the date of injury
  34-21  occurs before September 1, 1995, is governed by the law in effect
  34-22  on the date of injury for that occupational disease, and the former
  34-23  law is continued in effect for that purpose.
  34-24        SECTION 1.51.  The change in law made by this Act to Section
  34-25  409.005, Labor Code, applies only to an injury report regarding a
  34-26  compensable injury that occurs on or after September 1, 1995.  An
  34-27  injury report for a compensable injury that occurs before that date
   35-1  is governed by the law in effect on the date that the injury
   35-2  occurred, and the former law is continued in effect for that
   35-3  purpose.
   35-4        SECTION 1.52.  The change in law made by this Act to
   35-5  Subchapter C, Chapter 409, Labor Code, in the qualifications of
   35-6  persons who serve as ombudsmen under the Texas Workers'
   35-7  Compensation Commission applies only to a person who is designated
   35-8  as an ombudsman on or after September 1, 1995.  The change does not
   35-9  affect the entitlement of a person serving as an ombudsman
  35-10  immediately before that date to continue to serve as an ombudsman
  35-11  if that person continues to meet the qualifications for that
  35-12  service that were in effect before September 1, 1995, and complies
  35-13  with applicable continuing education requirements adopted by the
  35-14  commission.
  35-15        SECTION 1.53.  The change in law made by Section 402.092,
  35-16  Labor Code, as added by this Act, applies to information maintained
  35-17  in investigation files of the Texas Workers' Compensation
  35-18  Commission without regard to the date the information is collected,
  35-19  compiled, developed, or otherwise becomes part of the investigation
  35-20  file.
  35-21        SECTION 1.54.  The change in law made by this Act to Section
  35-22  411.062, Labor Code, in the qualifications of a person who serves
  35-23  as a field safety representative, applies only to a person employed
  35-24  as a field safety representative on or after September 1, 1995.
  35-25  The change does not affect the entitlement of a person serving as a
  35-26  field safety representative immediately before that date to
  35-27  continue to serve as a field safety representative if the person
   36-1  continues to meet the qualifications for that service that were in
   36-2  effect before September 1, 1995, and complies with applicable
   36-3  continuing education requirements adopted by the Texas Workers'
   36-4  Compensation Commission.
   36-5        SECTION 1.55.  A state agency subject to Section 412.0025,
   36-6  Labor Code, as added by this Act, shall develop programs as
   36-7  required by that section not later than January 1, 1996.
   36-8        SECTION 1.56.  A change in law under this Act that transfers
   36-9  jurisdiction of a hearing to the State Office of Administrative
  36-10  Hearings takes effect January 1, 1996.  A hearing held before or
  36-11  pending on December 31, 1995, is governed by the law in effect
  36-12  immediately before September 1, 1995, and that law is continued in
  36-13  effect for that purpose.
  36-14        SECTION 1.57.  (a)  The change in law made to Subtitle A,
  36-15  Title 5, Labor Code, by this Act applies only to a penalty or
  36-16  sanction for an offense committed on or after the effective date of
  36-17  this Act.
  36-18        (b)  For purposes of this section, an offense is committed
  36-19  before the effective date of this Act if any element of the offense
  36-20  occurs before that date.
  36-21        (c)  An offense committed before the effective date of this
  36-22  Act is governed by the law in effect when the offense was
  36-23  committed, and the former law is continued in effect for that
  36-24  purpose.
  36-25         ARTICLE 2.  WORKERS' COMPENSATION INSURANCE COVERAGE
  36-26                  FOR CERTAIN GOVERNMENTAL EMPLOYEES
  36-27        SECTION 2.01.  Sections 501.002(b) and (c), Labor Code, are
   37-1  amended to read as follows:
   37-2        (b)  For the purposes of Chapter 451, the individual state
   37-3  agency shall be considered the employer.  For the purposes of this
   37-4  chapter, the individual state agency is the employer except as
   37-5  provided by Section 501.022.
   37-6        (c)  Except as provided by Section 501.022(b), for <For> the
   37-7  purpose of applying the provisions listed by Subsection (a) to this
   37-8  chapter, "insurer" or "employer" means "state," "division," <or>
   37-9  "director," or "state agency," as applicable.
  37-10        SECTION 2.02.  Section 501.022, Labor Code, is amended to
  37-11  read as follows:
  37-12        Sec. 501.022.  TEXAS TECH UNIVERSITY EMPLOYEES.  (a)  An
  37-13  eligible employee of Texas Tech University, Texas Tech University
  37-14  Research Farm, Texas Tech University School of Medicine at Lubbock,
  37-15  or another agency under the direction and control of the board of
  37-16  regents of Texas Tech University is entitled to participate in the
  37-17  workers' compensation program for state employees provided under
  37-18  this chapter.
  37-19        (b)  For purposes of this chapter, the board of regents of
  37-20  Texas Tech University shall act in the capacity of employer.
  37-21        SECTION 2.03.  Section 501.042, Labor Code, is amended to
  37-22  read as follows:
  37-23        Sec. 501.042.  DIRECTOR AS <EMPLOYER AND> INSURER.  (a)  In
  37-24  administering and enforcing this chapter, the director shall act in
  37-25  the capacity of <employer and> insurer.
  37-26        (b)  The director shall act as an adversary before the
  37-27  commission and courts and present the legal defenses and positions
   38-1  of the state as an <employer and> insurer.
   38-2        (c)  For the purposes of this section, the director is
   38-3  entitled to the legal counsel of the attorney general.
   38-4        (d)  The director is subject to the rules, orders, and
   38-5  decisions of the commission in the same manner as an <a private
   38-6  employer,> insurer<,> or association.
   38-7        SECTION 2.04.  Section 501.043(a), Labor Code, is amended to
   38-8  read as follows:
   38-9        (a)  The director shall<:>
  38-10              <(1)>  adopt procedural rules and prescribe forms
  38-11  necessary for the effective administration of this chapter<; and>
  38-12              <(2)  adopt and enforce reasonable rules for the
  38-13  prevention of accidents and injuries>.
  38-14        SECTION 2.05.  The change in law made by this Act to Chapter
  38-15  501, Labor Code, applies only to a claim for workers' compensation
  38-16  benefits based on a compensable injury that occurs on or after
  38-17  September 1, 1995.  A claim based on a compensable injury that
  38-18  occurs before that date is governed by the law in effect on the
  38-19  date that the injury occurred, and the former law is continued in
  38-20  effect for that purpose.
  38-21                   ARTICLE 3.  CONFORMING AMENDMENTS
  38-22        SECTION 3.01.  Section 2003.001(3), Government Code, is
  38-23  amended to read as follows:
  38-24              (3)  "State agency" means:
  38-25                    (A)  a state board, commission, department, or
  38-26  other agency that is subject to Chapter 2001; and
  38-27                    (B)  to the extent provided by Title 5, Labor
   39-1  Code, the Texas Workers' Compensation Commission.
   39-2        SECTION 3.02.  Section 2003.021, Government Code, is amended
   39-3  by adding Subsection (c) to read as follows:
   39-4        (c)  The office shall conduct hearings under Title 5, Labor
   39-5  Code, as provided by that title.  In conducting hearings under
   39-6  Title 5, Labor Code, the office shall consider the applicable
   39-7  substantive rules and policies of the Texas Workers' Compensation
   39-8  Commission.  The office and the Texas Workers' Compensation
   39-9  Commission shall enter into an interagency contract under Chapter
  39-10  771 to pay the costs incurred by the office in implementing this
  39-11  subsection.
  39-12                 ARTICLE 4.  MISCELLANEOUS PROVISIONS
  39-13        SECTION 4.01.  The changes in law made by this Act to Chapter
  39-14  2003, Government Code, and Sections 407.046, 411.049(b),
  39-15  413.031(d), and 415.034, Labor Code, apply only to a hearing that
  39-16  begins on or after January 1, 1996.  A hearing held before or
  39-17  pending on January 1, 1996, is governed by the law in effect
  39-18  immediately before September 1, 1995, and that law is continued in
  39-19  effect for that purpose.
  39-20        SECTION 4.02.  This Act takes effect September 1, 1995.
  39-21        SECTION 4.03.  The importance of this legislation and the
  39-22  crowded condition of the calendars in both houses create an
  39-23  emergency and an imperative public necessity that the
  39-24  constitutional rule requiring bills to be read on three several
  39-25  days in each house be suspended, and this rule is hereby suspended.