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."