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.