GEC C.S.H.B. 3139 75(R)    BILL ANALYSIS


BUSINESS & INDUSTRY
C.S.H.B. 3139
By: Brimer
4-1-97
Committee Report (Substituted)



BACKGROUND 

The current confidentiality requirements under Section 403.083(a) of the
Labor Code only apply to information contained in or derived from an
injured employee's claim file maintained by the Texas Workers'
Compensation Commission ("Commission").  This protection does not extend
to claim information contained in an employer's personnel files if that
information was not obtained or derived from a Commission claim file.
Therefore, an employer may disclose certain information regarding an
employee's claim history.  CSHB 3139 would extend the scope of the Section
403.083(a) and 402.086(a) confidentiality requirements to protect this
type of information from disclosure.  This is accomplished by making these
provisions applicable to any information regarding an injured employee's
workers' compensation injury, including information contained in or
derived from the employee's workers' compensation claim file and
information regarding the employee's workers' compensation claim, that is
released to or obtained by any person or entity. 

CSHB 3139 also authorizes the Director of Self-Insurance Regulation to
designate as "confidential" financial statements received from employers
possessing a Certificate to SelfInsure and those employers applying for
such certification.  This will protect an employer's proprietary financial
statements from disclosure under the Texas Public Information Act.  

The Commission's Safety Violations Hotline, which provides a means for
citizens to report violations of health or safety law, does not protect
the identity of a caller from an open records request under the Texas
Public Information Act.  As a result, complaints are often made
anonymously for fear that an employer might obtain a caller's name through
such an open records request.  When calls are made anonymously,
investigators are unable to obtain additional information regarding the
complaint and in some instances cannot begin an investigation due to
insufficient information.   

CSHB 3139 would also exempt from disclosure under the Texas Public
Information Act information relating to open liability claims reported
under Section 412.005 of the Labor Code to the Risk Management Division of
the Commission by the Office of the Attorney General.  This will allow the
Office of the Attorney General provide this type of information to the
Risk Management Division without fear that sensitive information contained
in a claim file might be subject to release. 


PURPOSE


CSHB 3139 prevents the following from disclosure by the Commission

 - certain information relating to an injured employee's injury, main
workers' compensation claim or contained in an employee's claim file; 

 - certain proprietary financial statements provided to the Commission by
an employer electing to self-insure; 

 - any information obtained by the Commission through its Safety
Violations Hotline; 

 - information relating to open liability claims reported to the
Commission by the Office of the Attorney General. 


 RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 402.083(a), Labor Code by extending the scope
of the subtitle's confidentiality requirements to prohibit any person or
entity from disclosing either information in or derived from an injured
employee's claim file that relates to an employee's workers' compensation
injury, or information regarding an injured employee's claim.   

SECTION 2.  Amends Section 402.086(a), Labor Code by extending the scope
of the subtitle's confidentiality requirements by clarifying that even
though confidential claim information may be released to or obtained by a
person or entity under the subtitle, it remains confidential and may not
be disclosed, except when used in court for the purposes of an appeal. 

SECTION 3.  Amends Chapter 407, Labor Code by adding a new Section 407.002
that enables the Director of Self-Insurance Regulation to designate
certain financial statements, received by an employer possessing a
Certificate to Self-Insure or an employer applying to self-insure under
Chapter 407, as confidential upon request of the employer.  Exempts
financial statements designated as confidential under this section from
disclosure under the Chapter 552, Government Code. 

SECTION 4.  Amends Section 411.081, Labor Code by adding a new Subsection
(c) that protects from disclosure all information contained in the
commission's files regarding reports made through the telephone hotline,
except as provided by Section 402.085, Labor Code. 

SECTION 5.  Amends Section 412.005, Labor Code by adding a new Subsection
(c) that exempts from the disclosure requirements of Chapter 552,
Government Code, information relating to open liability claims obtained by
the Risk Management Division of the TWCC from the Office of the Attorney
General. 

SECTION 6.  Establishes the effective date of the Act as September 1, 1997

SECTION 7.  Suspends the three-day rule.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 4.  Deleted (c) and replaced it with a new (c) which reads as
follows: "All information contained in the commission's files regarding
reports made through the telephone hotline, including the identity of a
person who reports a violation under this subsection, is confidential for
purposes of Chapter 552, Government Code, and may not be disclosed to the
public or released by the commission except as provided by Section
402.085."