SRC-JFA, MAX S.B. 41 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 41
By: Nelson
Economic Development
4-20-97
As Filed


DIGEST 

Currently, the law requires each employer of 15 or more employees with
workers' compensation insurance to adopt a written drug policy.  Six
states have enacted drug-free workplace programs.  Of the six states,
Texas is the only one that does not offer financial incentives. This bill
creates discounts on workers' compensation insurance premiums for certain
employers who maintain a drugfree workplace.  

PURPOSE

As proposed, S.B. 41 creates discounts on workers' compensation insurance
premiums for certain employers who maintain a drug-free workplace.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in
SECTION 1  (Article 5.55A(c), Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 5D, Insurance Code, by adding Article 5.55A, as
follows: 

Art.  5.55A.  PREMIUM DISCOUNT FOR EMPLOYERS WITH DRUG-FREE WORKPLACE.
Defines "insurer."  Provides that this article applies to an employer who
holds a certificate of a drug-free workplace issued by the Texas Workers'
Compensation Commission (commission) under Section 411.092, Labor Code.
Requires the commissioner of insurance (commissioner), by rule, to adopt a
plan under which each insurer is required to grant a discount to an
employer subject to Subsection (b) of this article who obtains workers'
compensation insurance coverage from that insurer and applies for the
discount in the manner prescribed by the commissioner.  Requires the
insurer to grant a discount of five percent on the amount of the
employer's workers' compensation premium.  Provides that a discount
established under this article is valid for the term of the policy or
contract of insurance.  Requires the employer, on renewal of the policy or
contract, to reapply for the discount in the manner prescribed by the
commissioner.  Provides that a discount under this article is in addition
to any other premium discount to which the employer is eligible under this
code.   

SECTION 2.  Amends Chapter 411G, Labor Code, as follows: 

SUBCHAPTER G.  New heading: POLICY FOR ELIMINATION OF DRUGS IN THE
WORKPLACE; CERTIFICATION PROGRAM   

Sec. 411.091. ADOPTION AND DISTRIBUTION OF DRUG ABUSE POLICY BY EMPLOYER.
Deletes the requirement that an employer must have 15 or more employees to
adopt a policy to eliminate drug abuse in the workplace. 

Sec.  411.092.  New heading:  CERTIFICATION PROGRAM.  Authorizes an
employer who has workers' compensation insurance coverage  to adopt a
drug-free workplace program under this section. Requires the commission to
issue a certificate to each employer  maintaining a program adopted under
this section who is determined by the commission, after an investigation
by the division of workers' health and safety of the commission
(division), to meet the requirements of Subsection (b).  Sets forth the
required conditions an employer must satisfy in order to qualify for
certification as a drug-free workplace.  Provides that a certificate is
valid for one year from the date of issuance and may be renewed by the
employer on application to the commission and reinvestigation by the
division. 

Sec.  411.093.  New heading: IMPLEMENTATION; RULES.  Requires the
commission to implement this subchapter and to adopt rules for that
purpose.   

SECTION 3.  Effective date:  September 1, 1997.            
                       Makes application of this Act prospective to
January 1, 1998. 

SECTION 4.   Emergency clause.