By Jackson H.B. No. 2133
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, powers, and duties of the State Office of
1-3 Risk Management and to provisions of workers' compensation
1-4 insurance coverage for state employees.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 412, Labor Code, is amended to read as
1-7 follows:
1-8 CHAPTER 412. STATE OFFICE OF RISK MANAGEMENT
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 412.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means the risk management board.
1-12 (2) "Director" means the executive director of the
1-13 office.
1-14 (3) "Office" means the State Office of Risk
1-15 Management.
1-16 (4) "State agency" means a board, commission,
1-17 department, office, or other agency in the executive, judicial, or
1-18 legislative branch of state government that has five or more
1-19 employees, was created by the constitution or a statute of this
1-20 state, and has authority not limited to a specific geographical
1-21 portion of the state.
1-22 (Sections 412.002-412.010 reserved for expansion
1-23 SUBCHAPTER B. OFFICE
1-24 Sec. 412.011. OFFICE. (a) The State Office of Risk
2-1 Management is created to administer the government employees
2-2 workers' compensation insurance and the state risk management
2-3 programs.
2-4 (b) The office shall:
2-5 (1) administer guidelines adopted by the board for a
2-6 comprehensive risk management program applicable to all state
2-7 agencies to reduce property and liability losses, including
2-8 workers' compensation losses;
2-9 (2) review, verify, monitor, and approve risk
2-10 management programs adopted by state agencies;
2-11 (3) assist a state agency that has not implemented an
2-12 effective risk management program to implement a comprehensive
2-13 program that meets the guidelines established by the board; and
2-14 (4) administer the workers' compensation insurance
2-15 program for state employees established under Chapter 501.
2-16 (c) The office is administratively attached to the
2-17 commission and the commission shall provide the facilities for the
2-18 office, but the office shall be independent of the commission's
2-19 direction.
2-20 Sec. 412.012. FUNDING. (a) The office shall be
2-21 administered through money appropriated by the legislature and
2-22 through (1) interagency contracts for the risk management program
2-23 and (2) the allocation program for the financing of state workers'
2-24 compensation benefits.
2-25 (b) Interagency Contracts. (1) Each state agency shall
2-26 enter into an interagency contract with the office under Chapter
2-27 771, Government Code, to pay the costs incurred by the office in
3-1 administering this chapter for the benefit of that state agency.
3-2 Costs payable under the contract include the cost of:
3-3 (A) services of office employees;
3-4 (B) materials; and
3-5 (C) equipment, including computer hardware and
3-6 software.
3-7 (2) The amount of the costs to be paid by a state
3-8 agency under the interagency contract is based on:
3-9 (A) the number of employees of the agency
3-10 compared with the total number of employees of all state agencies
3-11 to which this chapter applies;
3-12 (B) the dollar value of the agency's property
3-13 and asset and liability exposure compared to that of all state
3-14 agencies to which this chapter applies; and
3-15 (C) the number and aggregate cost of claims and
3-16 losses incurred by the state agency compared to those incurred by
3-17 all state agencies to which this chapter applies.
3-18 (c) State Self-Insuring: Allocation Program for Financing
3-19 of State Workers' Compensation Benefits. (1) The state is
3-20 self-insuring with respect to an employee's compensable injury.
3-21 The legislature shall appropriate the amount designated by the
3-22 appropriation structure for the payment of state workers'
3-23 compensation claims costs to the office. This section does not
3-24 affect the reimbursement of claims costs by funds other than
3-25 general revenue funds, as provided by the General Appropriations
3-26 Act.
3-27 (2) The office shall establish an allocation program
4-1 for the payment of workers' compensation claims paid from the
4-2 general revenue that are incurred by state agencies subject to
4-3 Chapter 501. The money appropriated by the legislature for
4-4 workers' compensation for state employees shall be allocated under
4-5 that program as provided herein.
4-6 (3) Based on the information reported to the office
4-7 under Sections 412.032 and 501.048, at the beginning of each state
4-8 fiscal biennium the office shall determine which state agencies
4-9 accounted for 90 percent of the state's general revenue claims for
4-10 workers' compensation claims costs for the preceding state fiscal
4-11 biennium. Those state agencies are required to participate in the
4-12 allocation program for the next state fiscal biennium. The office
4-13 shall establish a formula for allocating the state's workers'
4-14 compensation costs among those agencies, based on the claims
4-15 experience of the agencies and the related costs incurred by
4-16 administering the claims.
4-17 (4) A state agency that is required to participate in
4-18 the allocation program shall be rewarded or penalized for its
4-19 actual performance against expected workers' compensation losses as
4-20 provided by Subsection (c).
4-21 (5) The office shall receive the amount appropriated
4-22 for workers' compensation claims. The office shall:
4-23 (A) monitor workers' compensation expenses
4-24 incurred by each state agency required to participate in the
4-25 allocation program; and
4-26 (B) compare and report to each of those agencies
4-27 the difference between the allocated amount and the agency's actual
5-1 expenses for workers' compensation.
5-2 (6) If, based on the comparison performed under
5-3 Subdivision (5)(B), the office determines that an agency's
5-4 performance resulted in workers' compensation claims costs that
5-5 were higher than the amount allocated to that agency, the agency is
5-6 not entitled to additional state funds for those costs beyond the
5-7 initial allocation and shall pay the additional costs from the
5-8 agency's regular appropriated funds as listed in the General
5-9 Appropriations Act. The agency shall reimburse the office for the
5-10 additional costs through interagency contracts, from the agency's
5-11 regular appropriated funds.
5-12 (7) If, based on the comparison performed under
5-13 Subdivision (5)(B), the office determines that an agency's
5-14 performance resulted in workers' compensation claims costs that
5-15 were lower than the amount allocated to that agency, the agency is
5-16 entitled to retain a portion of the savings. The office shall
5-17 determine the amount of the savings that the agency may retain.
5-18 (8) A state agency that is determined by the office to
5-19 be exempt from participation in the allocation program shall
5-20 receive full coverage for workers' compensation costs incurred by
5-21 that agency from the office.
5-22 (d) State Workers' Compensation Account. (1) All money
5-23 recovered by the director from a third party through subrogation
5-24 shall be deposited into the state workers' compensation account in
5-25 general revenue.
5-26 (2) Funds deposited under this section may be used for
5-27 the payment of compensation and other benefits to state employees.
6-1 (Sections 412.013-412.020 reserved for expansion
6-2 SUBCHAPTER C. BOARD
6-3 Sec. 412.021. RISK MANAGEMENT BOARD. (a) The office is
6-4 governed by the risk management board. Members of the board must
6-5 have demonstrated experience in the field of workers' compensation
6-6 and risk management administration.
6-7 (b) The board is composed of six members as follows:
6-8 (1) three members appointed by the lieutenant
6-9 governor; and
6-10 (2) three members appointed by the speaker of the
6-11 house of representatives.
6-12 (c) Members of the board hold office for staggered terms of
6-13 six years with two members' terms expiring February 1 of each
6-14 odd-numbered year. A member appointed to fill a vacancy shall hold
6-15 office for the remainder of that term.
6-16 (d) The lieutenant governor and speaker of the house of
6-17 representatives shall designate one member of the board as
6-18 presiding officer on an alternating basis. The presiding officer
6-19 shall serve in that capacity for a two-year term.
6-20 (e) The board is subject to Chapters 552 and 2001,
6-21 Government Code.
6-22 (f) The board is subject to Chapter 325, Government Code
6-23 (Texas Sunset Act). Unless continued in existence as provided by
6-24 that chapter, the board is abolished and this section expires
6-25 September 1, 2009.
6-26 Sec. 412.022. TRAINING PROGRAM FOR BOARD MEMBERS. (a) To
6-27 be eligible to take office as a member of the board, a person
7-1 appointed to the board must complete at least one course of a
7-2 training program that complies with this section. If the course
7-3 has not been completed at the time of the appointment, the training
7-4 program is to be completed within six months from the date of
7-5 appointment, failure of which constitutes grounds for removal from
7-6 the board.
7-7 (b) A training program established under this section must
7-8 provide information to the member regarding:
7-9 (1) the enabling legislation that created the board;
7-10 (2) the program operated by the board;
7-11 (3) the role and functions of the board;
7-12 (4) the rules of the board, with an emphasis on the
7-13 rules that relate to disciplinary and investigatory authority;
7-14 (5) the current budget for the board;
7-15 (6) the results of the most recent formal audit of the
7-16 board;
7-17 (7) the requirements of:
7-18 (A) the open meetings law, Chapter 551,
7-19 Government Code;
7-20 (B) the open records law, Chapter 552,
7-21 Government Code; and
7-22 (C) the administrative procedure law, Chapter
7-23 2001, Government Code;
7-24 (8) the requirements of the conflict of interest laws
7-25 and other laws relating to public officials; and
7-26 (9) any applicable ethics policies adopted by the
7-27 board or the Texas Ethics Commission.
8-1 Sec. 412.023. EFFECT OF LOBBYING ACTIVITY. A person may not
8-2 serve as a member of the board or act as the general counsel to the
8-3 board if the person is required to register as a lobbyist under
8-4 Chapter 305, Government Code, because of the person's activities
8-5 for compensation on behalf of a profession that is regulated by or
8-6 that has fees regulated by the board.
8-7 Sec. 412.024. GROUNDS FOR REMOVAL FROM BOARD. (a) It is a
8-8 ground for removal from the board if a member:
8-9 (1) does not have at the time of appointment the
8-10 qualifications required for appointment to the board other than the
8-11 requirements of Section 412.022;
8-12 (2) does not maintain during service on the board the
8-13 qualifications required for appointment to the board;
8-14 (3) violates a prohibition established by Section
8-15 412.023;
8-16 (4) cannot because of illness or incapacity discharge
8-17 the member's duties for a substantial part of the term for which
8-18 the member is appointed; or
8-19 (5) is absent from more than half of the regularly
8-20 scheduled board meetings that the member is eligible to attend
8-21 during a calendar year.
8-22 (b) If the director knows that a potential ground for
8-23 removal exists, the director shall notify the presiding officer of
8-24 the board of the potential ground. The presiding officer shall
8-25 then notify the lieutenant governor, the speaker of the house of
8-26 representatives, and the attorney general that a potential ground
8-27 for removal exists. If the potential ground for removal involves
9-1 the presiding officer, the director shall notify the next highest
9-2 officer of the board, who shall notify the lieutenant governor, the
9-3 speaker of the house of representatives, and the attorney general
9-4 that a potential ground for removal exists.
9-5 (Sections 412.025-412.030 reserved for expansion
9-6 SUBCHAPTER D. GENERAL POWERS AND DUTIES OF BOARD
9-7 Sec. 412.031. RULEMAKING AUTHORITY. The board shall adopt
9-8 rules as necessary to implement this chapter and Chapter 501,
9-9 including rules relating to reporting requirements for a state
9-10 agency.
9-11 Sec. 412.032. BOARD'S REPORT TO LEGISLATURE. (a) Based on
9-12 the recommendations of the director, the board shall report to each
9-13 legislature relating to:
9-14 (1) methods to reduce the exposure of state agencies
9-15 to the risks of property and liability losses, including workers'
9-16 compensation losses;
9-17 (2) the operation, financing, and management of those
9-18 risks; and
9-19 (3) the handling of claims brought against the state.
9-20 (b) The report must include:
9-21 (1) the frequency, severity, and aggregate amount of
9-22 open and closed claims in the preceding biennium by category of
9-23 risk, including final judgments;
9-24 (2) the identification of each state agency that has
9-25 not complied with the risk management guidelines and reporting
9-26 requirements of this chapter; and
9-27 (3) recommendations for the coordination and
10-1 administration of a comprehensive risk management program to serve
10-2 all state agencies, including recommendations for any necessary
10-3 statutory changes.
10-4 Sec. 412.033. The board shall hire a qualified person to
10-5 serve as director of the office. The director serves at the
10-6 pleasure of the board.
10-7 (Sections 412.034-412.040 reserved for expansion
10-8 SUBCHAPTER E. DIRECTOR
10-9 Sec. 412.041. DUTIES; RESPONSIBILITIES. (a) The director
10-10 serves as the state risk manager.
10-11 (b) The director shall supervise the development and
10-12 administration of systems to:
10-13 (1) identify the property and liability losses,
10-14 including workers' compensation losses, of each state agency;
10-15 (2) identify the administrative costs of risk
10-16 management incurred by each state agency;
10-17 (3) identify and evaluate the exposure of each state
10-18 agency to claims for property and liability losses, including
10-19 workers' compensation; and
10-20 (4) reduce the property and liability losses,
10-21 including workers' compensation, incurred by each state agency.
10-22 (c) In addition to other duties provided by this chapter, by
10-23 Chapter 501, and by the board, the director shall:
10-24 (1) keep full and accurate minutes of the transactions
10-25 and proceedings of the board;
10-26 (2) be the custodian of the files and records of the
10-27 board;
11-1 (3) prepare and recommend to the board plans and
11-2 procedures necessary to implement the purposes and objectives of
11-3 this chapter and Chapter 501, including rules and proposals for
11-4 administrative procedures consistent with this chapter and Chapter
11-5 501;
11-6 (4) hire staff as necessary to accomplish the
11-7 objectives of the board and may delegate powers and duties to
11-8 members of that staff as necessary;
11-9 (5) be responsible for the investigation of complaints
11-10 and for the presentation of formal complaints;
11-11 (6) attend all meetings of the board as a nonvoting
11-12 participant; and
11-13 (7) handle the correspondence of the board and obtain,
11-14 assemble, or prepare the reports and information that the board may
11-15 direct or authorize.
11-16 (d) If necessary to the administration of this chapter and
11-17 Chapter 501, the director, with the approval of the board, may
11-18 secure and provide for services that are necessary and may employ
11-19 and compensate within available appropriations professional
11-20 consultants, technical assistants, and employees on a full-time or
11-21 part-time basis.
11-22 (e) The director also serves as the administrator of the
11-23 government employees workers' compensation insurance program.
11-24 (f) In administering and enforcing Chapter 501, the director
11-25 shall act in the capacity of employer and insurer. (effective for
11-26 dates of injury before September 1, 1995.)
11-27 (1) The director shall act as an adversary before the
12-1 commission and courts and present the legal defenses and positions
12-2 of the state as an employer and insurer.
12-3 (2) For the purposes of this subsection and Chapter
12-4 501, the director is entitled to the legal counsel of the attorney
12-5 general.
12-6 (3) The director is subject to the rules, orders, and
12-7 decisions of the commission in the same manner as a private
12-8 employer, insurer, or association.
12-9 (g) In administering and enforcing Chapter 501, the director
12-10 shall act in the capacity of insurer. (effective for dates of
12-11 injury on or after September 1, 1995.)
12-12 (1) The director shall act as an adversary before the
12-13 commission and courts and present the legal defenses and positions
12-14 of the state as an insurer.
12-15 (2) For purposes of this subsection and Chapter 501,
12-16 the director is entitled to legal counsel of the attorney general.
12-17 (3) The director is subject to the rules, orders, and
12-18 decisions of the commission in the same manner as an insurer or
12-19 association.
12-20 (h) The director shall:
12-21 (1) prepare for adoption by the board procedural rules
12-22 and prescribe forms necessary for the effective administration of
12-23 this chapter and Chapter 501 (effective for dates of injury before
12-24 September 1, 1995); and
12-25 (2) prepare for adoption by the board and enforce
12-26 reasonable rules for the prevention of accidents and injuries;
12-27 (3) prepare for adoption by the board procedural rules
13-1 and prescribe forms necessary for the effective administration of
13-2 this chapter and Chapter 501. (effective for dates of injury on or
13-3 after September 1, 1995.)
13-4 (i) The director shall hold hearings on all proposed rules
13-5 and provide reasonable opportunity for the officers of state
13-6 agencies to testify at hearings on all proposed rules under this
13-7 chapter and Chapter 501.
13-8 (j) The director shall furnish copies of all rules to the
13-9 commission and to the administrative heads of all state agencies
13-10 affected by this chapter and Chapter 501.
13-11 Sec. 412.042. REPORTS TO THE LEGISLATURE. (a) The director
13-12 shall report to the legislature at the beginning of each regular
13-13 session.
13-14 (b) The report required under this section shall be dated
13-15 January 1 of the year in which the regular session is held and must
13-16 include:
13-17 (1) a list of all persons who have received benefits
13-18 under Chapter 501, the nature and cause of each injury, and the
13-19 amounts paid weekly in income benefits and for medical, hospital,
13-20 and other services;
13-21 (2) a summary of administrative expenses;
13-22 (3) a statement:
13-23 (A) showing the amount of the money appropriated
13-24 by the preceding legislature that remains unexpended on the date of
13-25 the report; and
13-26 (B) estimating the amount of that balance
13-27 necessary to administer Chapter 501 for the remainder of that
14-1 fiscal year; and
14-2 (C) an estimate, based on experience factors, of
14-3 the amount of money that will be required to administer Chapter 501
14-4 and pay for the compensation and services provided under Chapter
14-5 501 during the next succeeding biennium.
14-6 (c) The director shall report to the legislature a state
14-7 agency that fails to meet its obligation regarding the prevention
14-8 of accidents and injuries to state employees.
14-9 (Sections 412.043-412.050 reserved for expansion
14-10 SUBCHAPTER F. STATE AGENCIES
14-11 Sec. 412.051. DUTIES OF STATE AGENCIES. Each state agency
14-12 subject to this chapter shall actively manage the risks of that
14-13 agency by developing, implementing, and maintaining programs
14-14 designed to assist employees who sustain compensable injuries to
14-15 return to work.
14-16 Sec. 412.052. EXEMPTION OF CERTAIN STATE AGENCIES. This
14-17 chapter does not apply to a state agency that had medical
14-18 malpractice insurance coverage, workers' compensation insurance
14-19 coverage, or other self-insurance coverage with associated risk
14-20 management programs before January 1, 1989.
14-21 Sec. 412.053. ANNUAL REPORT BY STATE AGENCY. (a) Each
14-22 state agency shall report to the director for each fiscal year:
14-23 (1) the location, timing, frequency, severity, and
14-24 aggregate amounts of losses by category of risk, including open and
14-25 closed claims and final judgments;
14-26 (2) loss information obtained by the state agency in
14-27 the course of its administration of the workers' compensation
15-1 program;
15-2 (3) detailed information on existing and potential
15-3 exposure to loss, including property location and values,
15-4 descriptions of agency operations, and estimates of maximum
15-5 probable and maximum possible losses by category of risk;
15-6 (4) estimates by category of risk of losses incurred
15-7 but not reported;
15-8 (5) information the director determines necessary to
15-9 prepare a Texas Workers' Compensation Unit Statistical Report; and
15-10 (6) additional information that the director
15-11 determines to be necessary.
15-12 (b) The information shall be reported on or before 60 days
15-13 after the close of each fiscal year.
15-14 [CHAPTER 412. DIVISION OF RISK MANAGEMENT]
15-15 [Sec. 412.001. DEFINITIONS. In this chapter:]
15-16 [(1) "Director" means the director of the division.]
15-17 [(2) "Division" means the division of risk management
15-18 of the commission.]
15-19 [(3) "State agency" means a board, commission,
15-20 department, office, or other agency in the executive, judicial, or
15-21 legislative branch of state government that has five or more
15-22 employees, was created by the constitution or a statute of this
15-23 state, and has authority not limited to a specific geographical
15-24 portion of the state. The term includes an institution of higher
15-25 education as defined by Section 61.003, Education Code.]
15-26 [Sec. 412.002. EXEMPTION OF CERTAIN STATE AGENCIES. This
15-27 chapter does not apply to a state agency that had medical
16-1 malpractice insurance coverage, workers' compensation insurance
16-2 coverage, or other self-insurance coverage with associated risk
16-3 management programs before January 1, 1989.]
16-4 [Sec. 412.0025. DUTIES OF STATE AGENCIES. Each state agency
16-5 subject to this chapter shall actively manage the risks of that
16-6 agency by developing, implementing, and maintaining health and
16-7 safety programs and programs designed to assist employees who
16-8 sustain compensable injuries to return to work.]
16-9 [Sec. 412.003. DUTIES OF DIVISION. (a) The division shall:]
16-10 [(1) administer guidelines adopted by the commission
16-11 for a comprehensive risk management program applicable to all state
16-12 agencies to reduce property and liability losses, including
16-13 workers' compensation losses; and]
16-14 [(2) review, verify, monitor, and approve risk
16-15 management programs adopted by state agencies.]
16-16 [(b) The division shall assist a state agency that has not
16-17 implemented an effective risk management program to implement a
16-18 comprehensive program that meets the division guidelines.]
16-19 [Sec. 412.004. STATE RISK MANAGER. (a) The director serves
16-20 as the state risk manager.]
16-21 [(b) The director shall supervise the development and
16-22 administration of systems to:]
16-23 [(1) identify the property and liability losses,
16-24 including workers' compensation losses, of each state agency;]
16-25 [(2) identify the administrative costs of risk
16-26 management incurred by each state agency;]
16-27 [(3) identify and evaluate the exposure of each state
17-1 agency to claims for property and liability losses, including
17-2 workers' compensation; and]
17-3 [(4) reduce the property and liability losses,
17-4 including workers' compensation, incurred by each state agency.]
17-5 [Sec. 412.005. ANNUAL REPORT BY STATE AGENCY. (a) Each
17-6 state agency shall report to the director for each fiscal year:]
17-7 [(1) the location, timing, frequency, severity, and
17-8 aggregate amounts of losses by category of risk, including open and
17-9 closed claims and final judgments;]
17-10 [(2) loss information obtained by the workers'
17-11 compensation division of the attorney general's office in the
17-12 course of its administration of the workers' compensation program
17-13 for state agencies;]
17-14 [(3) detailed information on existing and potential
17-15 exposures to loss, including property location and values,
17-16 descriptions of agency operations, and estimates of maximum
17-17 probable and maximum possible losses by category of risk;]
17-18 [(4) estimates by category of risk of losses incurred
17-19 but not reported;]
17-20 [(5) information the director determines necessary to
17-21 prepare a Texas Workers' Compensation Unit Statistical Report; and]
17-22 [(6) additional information that the director
17-23 determines to be necessary.]
17-24 [(b) The information shall be reported on or before 60 days
17-25 after the close of each fiscal year.]
17-26 [Sec. 412.006. RULEMAKING AUTHORITY. The commission may
17-27 adopt rules to implement this chapter, including rules relating to
18-1 reporting requirements for a state agency.]
18-2 [Sec. 412.007. COMMISSION'S REPORT TO LEGISLATURE.
18-3 (a) Based on the recommendations of the director, the commission
18-4 shall report to each legislature relating to:]
18-5 [(1) methods to reduce the exposure of state agencies
18-6 to the risks of property and liability losses, including workers'
18-7 compensation losses;]
18-8 [(2) the operation, financing, and management of those
18-9 risks; and]
18-10 [(3) the handling of claims brought against the state.]
18-11 [(b) The report must include:]
18-12 [(1) the frequency, severity, and aggregate amount of
18-13 open and closed claims in the preceding biennium by category of
18-14 risk, including final judgments;]
18-15 [(2) the identification of each state agency that has
18-16 not complied with the risk management guidelines and reporting
18-17 requirements of this chapter; and]
18-18 [(3) recommendations for the coordination and
18-19 administration of a comprehensive risk management program to serve
18-20 all state agencies, including recommendations for any necessary
18-21 statutory changes.]
18-22 [Sec. 412.008. INTERAGENCY CONTRACTS. (a) Each state
18-23 agency shall enter into an interagency contract with the commission
18-24 under Chapter 771, Government Code, to pay the costs incurred by
18-25 the commission in administering this chapter for the benefit of
18-26 that state agency. Costs payable under the contract include the
18-27 cost of:]
19-1 [(1) services of commission employees;]
19-2 [(2) materials; and]
19-3 [(3) equipment, including computer hardware and
19-4 software.]
19-5 [(b) The amount of the costs to be paid by a state agency
19-6 under the interagency contract is based on:]
19-7 [(1) the number of employees of the agency compared
19-8 with the total number of employees of all state agencies to which
19-9 this chapter applies;]
19-10 [(2) the dollar value of the agency's property and
19-11 asset and liability exposure compared to that of all state agencies
19-12 to which this chapter applies; and]
19-13 [(3) the number and aggregate cost of claims and
19-14 losses incurred by the agency compared to those incurred by all
19-15 state agencies to which this chapter applies.]
19-16 SECTION 2. Section 501.001, Labor Code, is amended by
19-17 amending Subdivisions (3) and (4) and adding Subdivision (7) to
19-18 read as follows:
19-19 (3) "Director" means the director of the State Office
19-20 of Risk Management [workers' compensation division of the attorney
19-21 general's office].
19-22 (4) "Office" ["Division"] means the State Office of
19-23 Risk Management [workers' compensation division of the attorney
19-24 general's office].
19-25 (7) "Board" means the risk management board.
19-26 SECTION 3. Section 501.002(c), Labor Code, is amended to
19-27 read as follows:
20-1 (c) For the purpose of applying the provisions listed by
20-2 Subsection (a) to this chapter, "insurer" or "employer" means
20-3 "state," "office," ["division," or] "director," or "state agency,"
20-4 as applicable.
20-5 SECTION 4. Section 501.003(a), Labor Code, is amended to
20-6 read as follows:
20-7 (a) The provisions of this chapter and the rules of the
20-8 board [director] affecting an employee also apply to the legal
20-9 beneficiary of a deceased employee.
20-10 SECTION 5. Section 501.046, Labor Code, is amended to read
20-11 as follows:
20-12 Sec. 501.046. Reports of Termination or Continuation of
20-13 Injuries. In addition to other reports required by the board
20-14 [commission], the director shall file a subsequent report not later
20-15 than the 10th day after the date of the termination of the injured
20-16 employee's incapacity. If the employee's incapacity extends beyond
20-17 60 days, the director shall file a subsequent report before the
20-18 70th day after the date the employee's incapacity began.
20-19 SECTION 6. The following laws are repealed:
20-20 (1) Section 501.023, Labor Code;
20-21 (2) Section 501.041, Labor Code;
20-22 (3) Section 501.042 (effective for dates of injury
20-23 before September 1, 1995); Section 501.042 (effective for dates of
20-24 injury on or after September 1, 1995), Labor Code;
20-25 (4) Section 501.043, Labor Code;
20-26 (5) Section 501.047, Labor Code; and
20-27 (6) Section 501.049, Labor Code.
21-1 SECTION 7. Section 402.021(a), Labor Code, is amended to
21-2 read as follows:
21-3 (a) The commission shall have:
21-4 (1) a division of workers' health and safety;
21-5 (2) a division of medical review;
21-6 (3) a division of compliance and practices; and
21-7 (4) a division of hearings[; and]
21-8 [(5) a division of risk management].
21-9 SECTION 8. Section 403.003(b), Labor Code, is amended to
21-10 read as follows:
21-11 (b) In setting the rate of assessment, the commission may
21-12 not consider revenue or expenditures related to:
21-13 (1) the State Office of Risk Management [the division
21-14 of risk management];
21-15 (2) the research and oversight council on workers'
21-16 compensation [the research center]; or
21-17 (3) any other revenue or expenditure excluded from
21-18 consideration by law.
21-19 SECTION 9. The change in law made by this Act to Chapter
21-20 501, Labor Code, applies only to a claim for workers' compensation
21-21 benefits based on a compensable injury that occurs on or after
21-22 September 1, 1997. A claim based on a compensable injury that
21-23 occurs before that date is governed by the law in effect on the
21-24 date that the injury occurred, and the former law is continued in
21-25 effect for that purpose.
21-26 SECTION 10. (a) The division of workers' compensation in
21-27 the office of the attorney general and the division of risk
22-1 management in the Texas Workers' Compensation Commission are
22-2 abolished on the effective date of this Act. All employees,
22-3 records, equipment, and supplies in the custody of those divisions,
22-4 as those divisions existed on August 31, 1997, shall be transferred
22-5 to the State Office of Risk Management not later than December 31,
22-6 1997.
22-7 (b) In making the initial appointments to the risk
22-8 management board, the lieutenant governor and the speaker of the
22-9 house of representatives shall each appoint:
22-10 (1) one member for a term expiring February 1, 1999;
22-11 (2) one member for a term expiring February 1, 2001;
22-12 and
22-13 (3) one member for a term expiring February 1, 2003.
22-14 (c) The lieutenant governor shall appoint the first
22-15 presiding officer to serve in that capacity for a term expiring
22-16 February 1, 1999.
22-17 SECTION 11. This Act takes effect September 1, 1997.
22-18 SECTION 12. The importance of this legislation and the
22-19 crowded condition of the calendars in both houses create an
22-20 emergency and an imperative public necessity that the
22-21 constitutional rule requiring bills to be read on three several
22-22 days in each house be suspended, and this rule is hereby suspended.