By Longoria H.B. No. 80 75R1050 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to an employment security program for certain persons who 1-3 sustain an injury in the course and scope of their employment. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 5, Labor Code, is amended by adding 1-6 Subtitle D to read as follows: 1-7 SUBTITLE D. ALTERNATIVE COMPENSATION PROGRAMS 1-8 CHAPTER 551. EMPLOYMENT SECURITY PROGRAM 1-9 Sec. 551.001. DEFINITIONS. (a) In this chapter: 1-10 (1) "Employment security program" means an alternative 1-11 system created by an employer and an employee by contract, under 1-12 which the employee, in lieu of receipt of certain income benefits 1-13 to which the employee would otherwise be entitled, receives 1-14 vocational rehabilitation, retraining, and guaranteed employment in 1-15 a position equivalent in compensation and responsibility to that 1-16 held by the employee before a work-related injury. 1-17 (2) "Program" means an employment security program. 1-18 (b) The definitions adopted under Subchapter B, Chapter 401, 1-19 apply to this chapter. 1-20 Sec. 551.002. ALTERNATIVE SYSTEM; RULES. (a) 1-21 Notwithstanding any other provision of this title, an employer who 1-22 maintains workers' compensation insurance coverage through a policy 1-23 written by an insurance company and an employee who has reached 1-24 maximum medical improvement may establish by mutual contract an 2-1 employment security program as provided by this chapter. 2-2 (b) The commission shall adopt rules and standards as 2-3 necessary to implement this chapter. 2-4 Sec. 551.003. CONTRACT. (a) An employer and employee who 2-5 elect to establish an employment security program under this 2-6 chapter shall enter into a written contract regarding the terms of 2-7 the program. 2-8 (b) The commission by rule shall adopt a standard form for a 2-9 contract entered under this section. 2-10 (c) A program created under this chapter must be designed to 2-11 provide any vocational rehabilitation and retraining to the 2-12 employee injured in the course and scope of the employment with the 2-13 contracting employer that is necessary to enable the employee to 2-14 return to work with the employer. The contract must specify the 2-15 rehabilitation and retraining options to be offered to the affected 2-16 employee. 2-17 (d) The employer shall file a copy of the contract with the 2-18 commission not later than the 10th day after the date on which the 2-19 contract is signed by both parties. 2-20 Sec. 551.004. TRUST ACCOUNT; FUNDING. (a) An employee who 2-21 elects to participate in an employment security program shall file 2-22 a written statement of the election in the form prescribed by the 2-23 commission not later than the 30th day before the date on which the 2-24 employee is scheduled to return to work. 2-25 (b) An employee who elects to participate in an employment 2-26 security program under this chapter is not entitled to receive 2-27 impairment income benefits or supplemental income benefits under 3-1 Subtitle A and is entitled to receive lifetime income benefits only 3-2 as provided by Section 551.005(c). The commission shall determine 3-3 the amount of income benefits to which the employee would otherwise 3-4 be entitled under Subtitle A and shall notify the employee, the 3-5 employer, and the employer's insurance company of the amount. The 3-6 commission shall deliver the notification not later than the 15th 3-7 day after the date on which the commission receives the employee 3-8 statement under Subsection (a). 3-9 (c) On receipt of notification by the commission under 3-10 Subsection (b), the insurance company shall deposit an amount equal 3-11 to the amount determined by the commission under Subsection (b) in 3-12 a trust account, to be used only by the employer to pay expenses 3-13 authorized under Subsection (d). An insurance company that 3-14 deposits money in a trust account under this section is not liable 3-15 to pay benefits to the affected employee under the terms of the 3-16 employer's workers' compensation insurance policy and Subtitle A 3-17 except as provided by Section 551.005(c). Any balance remaining in 3-18 the trust account on the 10th anniversary of the date on which the 3-19 trust account was created shall be returned to the insurance 3-20 company and becomes the property of the insurance company. 3-21 (d) The employer may pay the costs associated with the 3-22 rehabilitation and retraining of the employee from the trust 3-23 account in the manner provided by commission rules. 3-24 Sec. 551.005. GUARANTY OF EMPLOYMENT. (a) A program 3-25 established under this chapter must provide for continuous 3-26 employment of the employee with the contracting employer until the 3-27 earlier of: 4-1 (1) the 10th anniversary of the date on which the 4-2 employee returns to work; or 4-3 (2) the date on which the employee's entitlement to 4-4 retirement benefits provided through the employer is vested. 4-5 (b) An employee who elects to participate in an employment 4-6 security program under this chapter may not be discharged by that 4-7 employer during the 10-year period except for cause. An employer 4-8 who discharges an employee in violation of this subsection is 4-9 liable for any loss of wages and employer-provided benefits 4-10 incurred by the employee as a result of the violation. A person 4-11 discharged in violation of this subsection is entitled to 4-12 reinstatement in the same or an equivalent position of employment 4-13 with commensurate pay. 4-14 (c) If the contracting employer ceases to be an employer 4-15 before the 10th anniversary of the date on which the employee 4-16 returns to work, the affected employee may apply to the commission 4-17 for a determination as to the amount of any lifetime income 4-18 benefits or other benefits for which the employee is eligible. If 4-19 the commission determines that the employee is eligible for 4-20 benefits, the employee shall elect either to receive the remaining 4-21 benefits in the manner provided by Section 408.161 or to commute 4-22 the remainder of the benefits. 4-23 Sec. 551.006. PREMIUM DISCOUNT. An employer who establishes 4-24 an employment security program under this chapter is entitled to a 4-25 discount on the amount of the employer's workers' compensation 4-26 insurance premium in the manner provided by Article 5.55A, 4-27 Insurance Code. 5-1 SECTION 2. Subchapter D, Chapter 5, Insurance Code, is 5-2 amended by adding Article 5.55A to read as follows: 5-3 Art. 5.55A. PREMIUM DISCOUNT FOR EMPLOYERS WHO ESTABLISH 5-4 CERTAIN EMPLOYMENT SECURITY PROGRAMS. (a) In this article, 5-5 "insurer" means a stock company, mutual company, reciprocal, 5-6 interinsurance exchange, Lloyd's association, or other entity 5-7 authorized to write workers' compensation insurance in this state. 5-8 The term includes the Texas workers' compensation insurance 5-9 facility and the Texas workers' compensation insurance fund. 5-10 (b) This article applies to an employer who establishes an 5-11 employment security program under Chapter 551, Labor Code. 5-12 (c) The commissioner by rule shall adopt a plan under which 5-13 each insurer shall grant a discount to an employer subject to this 5-14 article who obtains workers' compensation insurance coverage from 5-15 that insurer and applies for the discount in the manner prescribed 5-16 by the commissioner. The insurer shall grant a discount of 10 5-17 percent on the amount of the employer's workers' compensation 5-18 premium. 5-19 (d) A discount established under this article is valid for 5-20 the term of the policy or contract of insurance. On renewal of the 5-21 policy, the employer must reapply for the discount in the manner 5-22 prescribed by the commissioner. 5-23 (e) A discount under this article is in addition to any 5-24 other premium discount for which the employer is eligible under 5-25 this code. 5-26 SECTION 3. This Act takes effect September 1, 1997, and 5-27 applies only to a workers' compensation insurance policy that is 6-1 delivered, issued for delivery, or renewed on or after January 1, 6-2 1998. A policy that is delivered, issued for delivery, or renewed 6-3 before January 1, 1998, is governed by the law as it existed 6-4 immediately before the effective date of this Act, and that law is 6-5 continued in effect for that purpose. 6-6 SECTION 4. The importance of this legislation and the 6-7 crowded condition of the calendars in both houses create an 6-8 emergency and an imperative public necessity that the 6-9 constitutional rule requiring bills to be read on three several 6-10 days in each house be suspended, and this rule is hereby suspended.