SRC-JFA H.B. 3522 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3522
By: Rhodes (Ratliff)
Economic Development
5-18-97
Engrossed


DIGEST 

In 1989, the authors of Senate Bill 1 knew some provisions of the law
would have to be fine tuned as time passed, and observations could be made
about how the law was implemented.  The Sunset process in 1995 helped
alleviate some of the problems. Problems remain that require changes to
the law.  This bill amends eight sections of the Texas Labor Code that
relate to the administration and enforcement of the workers' compensation
law by the Texas Workers' Compensation Commission. 

PURPOSE

As proposed, H.B. 3522 revises eight sections of the Texas Labor Code that
relate to the administration and enforcement of the workers' compensation
law by the Texas Workers' Compensation Commission.   

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workers' Compensation
Commission in SECTION 5 (Section 408.104, Labor Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 401.011(30), Labor Code,  to redefine "maximum
medical improvement."   

SECTION 2. Amends Section 402.011, Labor Code, by amending Subsection (b)
and by adding Subsections (c) and (d), as follows:   

(b)  Provides that a member of the Texas Workers' Compensation Commission
(commission) is entitled to reimbursement for actual lost wages, if any,
for attendance at commission meetings, not to exceed one day in each
calender quarter; preparation for a commission meeting, not to exceed two
days in each calender quarter; attendance at a subcommittee meeting, not
to exceed one day each month; attendance by the chair or vice chair of the
commission at a legislative committee meeting if attendance is requested
by the committee chair; and attendance at a meeting by a member appointed
to the Research and Oversight Council on Workers' Compensation or the
Texas Certified Self-Insured Guarantee Association.   

(c)  Makes a conforming change. 

(d)  Provides that a member of the commission is entitled to reimbursement
for actual and necessary expenses for attendance at not more than five
seminars in a calender year if the member is invited as a representative
of the commission to participate in a program offered at the seminar, and
the member's participation is approved by the chair of the commission.  
SECTION 3. Amends Section 403.002(a) and (b), Labor Code, as follows:

(a)  Requires each insurance carrier to pay an annual maintenance tax to
pay the costs of administering this subtitle and to support the
prosecution of workers' compensation insurance fraud in the state.   
 
(b)  Requires an amount not to exceed one-tenth of one percent of
correctly reported gross premiums, out of a certain amount and in addition
to amounts assessed to pay the costs of administration, to be assessed
annually to support the prosecution of workers' compensation insurance
fraud.   

SECTION 4. Amends Section 403.003(a), Labor Code, to require the
commission to set and certify to the comptroller the rate of maintenance
tax assessment no later than October 31 of each year, taking into account,
among other items, expenditures projected as necessary to support the
prosecution of workers' compensation insurance fraud.    

SECTION 5. Amends Chapter 408F, Labor Code, by adding Section 408.104, as
follows: 

Sec. 408.104.  MAXIMUM MEDICAL IMPROVEMENT AFTER SPINAL SURGERY. (a)
Authorizes the commission, on application by either the employee or the
insurance carrier, to extend the 104-week period described by Section
401.011(30)(B) if the employee has had spinal surgery, or has been
approved for spinal surgery under Section 408.026 and commission rules,
within 12 weeks before the expiration of the 104-week period.  Requires
the order to extend the statutory period for maximum medical improvement
to a date certain, based on medical evidence presented to the commission.  

(b)  Authorizes either the employee or the insurance carrier to dispute an
application for extension made under this section.  Provides that a
dispute under this subsection is subject to Chapter 410.   

(c)  Requires the commission to adopt rules to implement this section,
including rules establishing procedures for requesting and disputing an
extension.   

SECTION 6. Amends Section 407.103(a), Labor Code, to require each
certified self-insurer to pay a self-insurer maintenance tax for the
administration of the commission and to support the prosecution of
workers' compensation insurance fraud in this state.  Requires an amount
not to exceed one-tenth of one percent of the total tax base of all
certified self-insurers, out of a certain amount and in addition to the
amounts assessed to pay the costs of administration, to be assessed
annually to support the prosecution of workers' compensation insurance
fraud.   

SECTION 7. Amends Section 409.042(b), Labor Code, to require a person, to
be eligible for designation as an ombudsman, to have at least one year,
rather than three years, of demonstrated experience in the field of
workers' compensation. 

SECTION 8. Amends Chapter 415B, Labor Code, by adding Section 415.024, as
follows: 

Sec. 415.024.  BREACH OF SETTLEMENT AGREEMENT; ADMINISTRATIVE VIOLATION.
Provides that a breach of a settlement agreement that establishes a
compliance plan is an administrative violation punishable by an
administrative penalty not to exceed $50,000.  Requires the commission, in
determining the amount of the penalty, to consider the total volume of
claims handled by the insurance carrier.   

SECTION 9. (a)  Effective date: September 1, 1997.

(b)  Makes application of Section 415.024, Labor Code, as added by this
Act, prospective.  

(c)  Makes application of this Act prospective.

SECTION 10. Emergency clause.