By Jackson, Brimer                                    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; provisions of workers' comp insurance coverage for

 1-4     state employees.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Chapter 412, Labor Code, is deleted and a new

 1-7     Chapter 412 is added:

 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 employee's

 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)  shall administer the workers' compensation

2-15     insurance program for state employees established under Chapter

2-16     501.

2-17           (c)  The office is administratively attached to the

2-18     commission and the commission shall provide the facilities for the

2-19     office, but the office shall be independent of the commission's

2-20     direction.

2-21           Sec. 412.012.  FUNDING.  (a)  The office shall be

2-22     administered through money appropriated by the legislature and

2-23     through (1) interagency contracts for the risk management program

2-24     and (2) the allocation program for the financing of state workers'

2-25     compensation benefits.

2-26           (b)  Interagency Contracts.  (1)  Each state agency shall

2-27     enter into an interagency contract with the office under Chapter

 3-1     771, Government Code, to pay the costs incurred by the office in

 3-2     administering this chapter for the benefit of that state agency.

 3-3     Costs payable under the contract include the cost of:

 3-4                       (A)  services of office employees;

 3-5                       (B)  materials; and

 3-6                       (C)  equipment, including computer hardware and

 3-7     software.

 3-8                 (2)  The amount of the costs to be paid by a state

 3-9     agency under the interagency contract is based on:

3-10                       (A)  the number of employees of the agency

3-11     compared with the total number of employees of all state agencies

3-12     to which this chapter applies;

3-13                       (B)  the dollar value of the agency's property

3-14     and asset and liability exposure compared to that of all state

3-15     agencies to which this chapter applies; and

3-16                       (C)  the number and aggregate cost of claims and

3-17     losses incurred by the state agency compared to those incurred by

3-18     all state agencies to which this chapter applies.

3-19           (c)  State Self-Insuring:  Allocation Program for Financing

3-20     of State Workers' Compensation Benefits.  (1)  The state is

3-21     self-insuring with respect to an employee's compensable injury.

3-22     The legislature shall appropriate the total amount designated for

3-23     the payment of state workers' compensation claims costs to the

3-24     office.  This section does not affect the reimbursement of claims

3-25     costs by funds other than general revenue funds, as provided by the

3-26     General Appropriations Act.

3-27                 (2)  The office shall establish an allocation program

 4-1     for the payment of workers' compensation claims costs incurred by

 4-2     state agencies subject to Chapter 501.  The money appropriated by

 4-3     the legislature for workers' compensation for state employees shall

 4-4     be allocated under that program as provided by Subsection (c).

 4-5                 (3)  Based on the information reported to the office

 4-6     under Sections 412.032 and 501.048, at the beginning of each state

 4-7     fiscal biennium the office shall determine which state agencies

 4-8     accounted for 90 percent of the state's workers' compensation

 4-9     claims costs for the preceding state fiscal biennium.  Those state

4-10     agencies are required to participate in the allocation program for

4-11     the next state fiscal biennium.  The office shall establish a

4-12     formula for allocating the state's workers' compensation costs

4-13     among those agencies, based on the claims experience of the

4-14     agencies and the related costs incurred by administering the

4-15     claims.

4-16                 (4)  A state agency that is required to participate in

4-17     the allocation program shall be rewarded or penalized for its

4-18     actual performance against expected workers' compensation losses as

4-19     provided by Subsection (c).

4-20                 (5)  The office shall receive the amount appropriated

4-21     for workers' compensation claims.  The office shall:

4-22                       (A)  monitor workers' compensation expenses

4-23     incurred by each state agency required to participate in the

4-24     allocation program; and

4-25                       (B)  compare and report to each of those agencies

4-26     the difference between the allocated amount and the agency's actual

4-27     expenses for workers' compensation.

 5-1                 (6)  If, based on the comparison performed under

 5-2     Subsection (5)(B), the office determines that an agency's

 5-3     performance resulted in workers' compensation claims costs that

 5-4     were higher than the amount allocated to that agency, the agency is

 5-5     not entitled to additional state funds for those costs beyond the

 5-6     initial allocation and shall pay the additional costs from the

 5-7     agency's regular appropriated funds as listed in the General

 5-8     Appropriations Act.  The agency shall reimburse the office for the

 5-9     additional costs through interagency contracts, from the agency's

5-10     regular appropriated funds.

5-11                 (7)  If, based on the comparison performed under

5-12     Subsection (5)(B) the office determines that an agency's

5-13     performance resulted in workers' compensation claims costs that

5-14     were lower than the amount allocated to that agency, the agency is

5-15     entitled to retain a portion of the savings.  The office shall

5-16     determine the amount of the savings that the agency may retain.

5-17                 (8)  A state agency that is determined by the office to

5-18     be exempt from participation in the allocation program shall

5-19     receive full coverage for workers' compensation costs incurred by

5-20     that agency from the office.

5-21           (d)  State Workers' Compensation Account.

5-22                 (1)  All money recovered by the director from a third

5-23     party through subrogation shall be deposited into the state

5-24     workers' compensation account in general revenue.

5-25                 (2)  Funds deposited under this section may be used for

5-26     the payment of compensation and other benefits to state employees.

5-27            (Sections 412.013 - 412.020 reserved for expansion.

 6-1                            SUBCHAPTER C.  BOARD

 6-2           Sec. 412.021 (a)  The office is governed by the risk

 6-3     management board.  Members of the board must have demonstrated

 6-4     experience in the field of workers' compensation and risk

 6-5     management administration.

 6-6           (b)  The board is composed of six members as follows:

 6-7                 (1)  three members appointed by the lieutenant

 6-8     governor; and

 6-9                 (2)  three members appointed by the speaker of the

6-10     house of representatives.

6-11           (c)  Members of the board hold office for staggered terms of

6-12     six years with two members' terms expiring February 1 of each

6-13     odd-numbered year.  A member appointed to fill a vacancy shall hold

6-14     office for the remainder of that term.

6-15           (d)  The lieutenant governor and speaker of the house of

6-16     representatives shall designate one member of the board as

6-17     presiding officer on an alternating basis.  The presiding officer

6-18     shall serve in that capacity for a two-year term.

6-19           (e)  The board is subject to Chapters 552 and 2001,

6-20     Government Code.

6-21           (f)  The board is subject to Chapter 325, Government Code,

6-22     (Texas Sunset Act).  Unless continued in existence as provided by

6-23     that chapter, the board is abolished and this section expires

6-24     September 1, 2009.

6-25           Sec. 412.022.  TRAINING PROGRAM FOR BOARD MEMBERS.  (a)

6-26     Before a member of the board may assume the member's duties, the

6-27     member must complete the training program established under this

 7-1     section.

 7-2           (b)  A training program established under this section must

 7-3     provide information to the member regarding:

 7-4                 (1)  the enabling legislation that created the board;

 7-5                 (2)  the program operated by the board;

 7-6                 (3)  the role and functions of the board;

 7-7                 (4)  the rules of the board, with an emphasis on the

 7-8     rules that relate to disciplinary and investigatory authority;

 7-9                 (5)  the current budget for the board;

7-10                 (6)  the results of the most recent formal audit of the

7-11     board;

7-12                 (7)  the requirements of:

7-13                       (A)  the open meetings law, Chapter 551,

7-14     Government Code;

7-15                       (B)  the open records law, Chapter 552,

7-16     Government Code; and

7-17                       (C)  the administrative procedure law, Chapter

7-18     2001, Government Code;

7-19                 (8)  the requirements of the conflict of interest laws

7-20     and other laws relating to public officials; and

7-21                 (9)  any applicable ethics policies adopted by the

7-22     board or the Texas Ethics Commission.

7-23           Sec. 412.023.  EFFECT OF LOBBYING ACTIVITY.  A person may not

7-24     serve as a member of the board or act as the general counsel to the

7-25     board if the person is required to register as a lobbyist under

7-26     Chapter 305, Government Code, because of the person's activities

7-27     for compensation on behalf of a profession that is regulated by or

 8-1     that has fees regulated by the board.

 8-2           Sec. 412.024.  GROUNDS FOR REMOVAL FROM BOARD.  (a)  It is a

 8-3     ground for removal from the board if a member:

 8-4                 (1)  does not have at the time of appointment the

 8-5     qualifications required for appointment to the board;

 8-6                 (2)  does not maintain during service on the board the

 8-7     qualifications required for appointment to the board;

 8-8                 (3)  violates a prohibition established by Section

 8-9     412.023;

8-10                 (4)  cannot because of illness or incapacity discharge

8-11     the member's duties for a substantial part of the term for which

8-12     the member is appointed; or

8-13                 (5)  is absent from more than half of the regularly

8-14     scheduled board meetings that the member is eligible to attend

8-15     during a calendar year.

8-16           (b)  If the director knows that a potential ground for

8-17     removal exists, the director shall notify the presiding officer of

8-18     the board of the potential ground.  The presiding officer shall

8-19     then notify the lieutenant governor, speaker of the house of

8-20     representatives, and the attorney general that a potential ground

8-21     for removal exists.  If the potential ground for removal involves

8-22     the presiding officer, the director shall notify the next highest

8-23     officer of the board, who shall notify the lieutenant governor,

8-24     speaker of the house of representatives, and the attorney general

8-25     that a potential ground for removal exists.

8-26             (Sections 412.025 - 412.030 reserved for expansion

 9-1              SUBCHAPTER D.  GENERAL POWERS AND DUTIES OF BOARD

 9-2           Sec. 412.031.  RULEMAKING AUTHORITY.  The board shall adopt

 9-3     rules as necessary to implement this chapter and Chapter 501,

 9-4     including rules relating to reporting requirements for a state

 9-5     agency.

 9-6           Sec. 412.032.  BOARD'S REPORT TO LEGISLATURE.  (a)  Based on

 9-7     the recommendations of the director, the board shall report to each

 9-8     legislature relating to:

 9-9                 (1)  methods to reduce the exposure of state agencies

9-10     to the risks of property and liability losses, including workers'

9-11     compensation losses;

9-12                 (2)  the operation, financing, and management of those

9-13     risks; and

9-14                 (3)  the handling of claims brought against the state.

9-15           (b)  The report must include:

9-16                 (1)  the frequency, severity, and aggregate amount of

9-17     open and closed claims in the preceding biennium by category of

9-18     risk, including final judgments;

9-19                 (2)  the identification of each state agency that has

9-20     not complied with the risk management guidelines and reporting

9-21     requirements of this chapter; and

9-22                 (3)  recommendations for the coordination and

9-23     administration of a comprehensive risk management program to serve

9-24     all state agencies, including recommendations for any necessary

9-25     statutory changes.

9-26           Sec. 412.033.  The board shall hire a qualified person to

9-27     serve as director of the office.  The director serves at the

 10-1    pleasure of the board.

 10-2           (Sections 412.034 - 412.040 reserved for expansion.

 10-3                          SUBCHAPTER E.  DIRECTOR

 10-4          Sec. 412.041.  DUTIES; RESPONSIBILITIES.  (a)  The director

 10-5    serves as the state risk manager.

 10-6          (b)  The director shall supervise the development and

 10-7    administration of systems to:

 10-8                (1)  identify the property and liability losses,

 10-9    including workers' compensation losses, of each state agency;

10-10                (2)  identify the administrative costs of risk

10-11    management incurred by each state agency;

10-12                (3)  identify and evaluate the exposure of each state

10-13    agency to claims for property and liability losses, including

10-14    workers' compensation; and

10-15                (4)  reduce the property and liability losses,

10-16    including workers' compensation, incurred by each state agency.

10-17          (c)  In addition to other duties provided by this chapter,

10-18    Chapter 501, and by the board, the director shall:

10-19                (1)  keep full and accurate minutes of the transactions

10-20    and proceedings of the board;

10-21                (2)  be the custodian of the files and records of the

10-22    board;

10-23                (3)  prepare and recommend to the board plans and

10-24    procedures necessary to implement the purposes and objectives of

10-25    this chapter and Chapter 501, including rules and proposals for

10-26    administrative procedures consistent with this chapter and Chapter

10-27    501;

 11-1                (4)  hire staff as necessary to accomplish the

 11-2    objectives of the board, and may delegate powers and duties to

 11-3    members of that staff as necessary;

 11-4                (5)  be responsible for the investigation of complaints

 11-5    and for the presentation of formal complaints;

 11-6                (6)  attend all meetings of the board as a nonvoting

 11-7    participant; and

 11-8                (7)  handle the correspondence of the board and obtain,

 11-9    assemble, or prepare the reports and information that the board may

11-10    direct or authorize.

11-11          (d)  If necessary to the administration of this chapter, and

11-12    Chapter 501, the director, with the approval of the board, may

11-13    secure and provide for services that are necessary and may employ

11-14    and compensate within available appropriations professional

11-15    consultants, technical assistants, and employees on a full-time or

11-16    part-time basis.

11-17          (e)  The director also serves as the administrator of the

11-18    government employee's workers' compensation insurance program.

11-19          (f)  In administering and enforcing Chapter 501, the director

11-20    shall act in the capacity of employer and insurer.  (effective for

11-21    dates of injury before September 1, 1995.)

11-22                (1)  The director shall act as an adversary before the

11-23    commission and courts and present the legal defenses and positions

11-24    of the state as an employer and insurer.

11-25                (2)  For the purposes of this subsection and Chapter

11-26    501, the director is entitled to the legal counsel of the attorney

11-27    general.

 12-1                (3)  The director is subject to the rules, orders, and

 12-2    decisions of the commission in the same manner as a private

 12-3    employer, insurer, or association.

 12-4          (g)  In administering and enforcing Chapter 501, the director

 12-5    shall act in the capacity of insurer.  (effective for dates of

 12-6    injury on or after September 1, 1995.)

 12-7                (1)  The director shall act as an adversary before the

 12-8    commission and courts and present the legal defenses and positions

 12-9    of the state as an insurer.

12-10                (2)  For purposes of this subsection and Chapter 501,

12-11    the director is entitled to legal counsel of the attorney general.

12-12                (3)  The director is subject to the rules, orders, and

12-13    decisions of the commission in the same manner as an insurer or

12-14    association.

12-15          (h)(1)  The director shall prepare for adoption by the board

12-16    procedural rules and prescribe forms necessary for the effective

12-17    administration of this chapter and Chapter 501 (effective for dates

12-18    of injury before September 1, 1995.); and

12-19                (2)  prepare for adoption by the board and enforce

12-20    reasonable rules for the prevention of accidents and injuries;

12-21                (3)  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 on or

12-24    after September 1, 1995.)

12-25          (i)  The director shall hold hearings on all proposed rules

12-26    and provide reasonable opportunity for the officers of state

12-27    agencies to testify at hearings on all proposed rules under this

 13-1    chapter and Chapter 501.

 13-2          (j)  The director shall furnish copies of all rules to the

 13-3    commission and to the administrative heads of all state agencies

 13-4    affected by this chapter and Chapter 501.

 13-5          Sec. 412.042.  REPORTS TO THE LEGISLATURE.  (a)  The director

 13-6    shall report to the legislature at the beginning of each regular

 13-7    session.

 13-8          (b)  The report required under this subsection shall be dated

 13-9    January 1 of the year in which the regular session is held and must

13-10    include:

13-11                (1)  a list of all persons who have received benefits

13-12    under Chapter 501, the nature and cause of each injury, and the

13-13    amounts paid weekly in income benefits and for medical, hospital

13-14    and other services;

13-15                (2)  a summary of administrative expenses;

13-16                (3)  a statement:

13-17                      (A)  showing the amount of the money appropriated

13-18    by the preceding legislature that remains unexpended on the date of

13-19    the report; and

13-20                      (B)  estimating the amount of that balance

13-21    necessary to administer Chapter 501 for the remainder of that

13-22    fiscal year; and

13-23                      (C)  an estimate, based on experience factors, of

13-24    the amount of money that will be required to administer Chapter 501

13-25    and pay for the compensation and services provided under Chapter

13-26    501 during the next succeeding biennium.

13-27          (c)  The director shall report to the legislature a state

 14-1    agency that fails to meet its obligation regarding the prevention

 14-2    of accidents and injuries to state employees.

 14-3            (Sections 412.043 - 412.050 reserved for expansion

 14-4                       SUBCHAPTER F.  STATE AGENCIES

 14-5          Sec. 412.051.  DUTIES OF STATE AGENCIES.  Each state agency

 14-6    subject to this chapter shall actively manage the risks of that

 14-7    agency by developing, implementing, and maintaining programs

 14-8    designed to assist employees who sustain compensable injuries to

 14-9    return to work.

14-10          Sec. 412.052.  PROVISIONAL EXEMPTION OF CERTAIN STATE

14-11    AGENCIES.  (a)  This chapter does not apply to a state agency that

14-12    had medical malpractice insurance coverage, workers' compensation

14-13    insurance coverage, or other self-insurance coverage with

14-14    associated risk management programs before January 1, 1989.

14-15          (b)  The office shall evaluate biennially the effectiveness

14-16    of the risk management program operated by a state agency.  If,

14-17    based on that evaluation, the director determines that the program

14-18    operated by the state agency is not effective in reducing losses,

14-19    the director shall revoke the exemption granted under this section,

14-20    and the state agency shall comply with the requirements of this

14-21    chapter on notification by the director that the exemption has been

14-22    revoked.

14-23          (c)  By January 1, 1999, the board shall have in place rules

14-24    to authorize and provide procedures for the revocation of an

14-25    agency's exemption.

14-26          Sec. 412.053.  ANNUAL REPORT BY STATE AGENCY.  (a)  Each

14-27    state agency shall report to the director for each fiscal year:

 15-1                (1)  the location, timing, frequency, severity, and

 15-2    aggregate amounts of losses by category of risk, including open and

 15-3    closed claims and final judgments;

 15-4                (2)  loss information obtained by the state agency in

 15-5    the course of its administration of the workers' compensation

 15-6    program;

 15-7                (3)  detailed information on existing and potential

 15-8    exposure to loss, including property location and values,

 15-9    descriptions of agency operations, and estimates of maximum

15-10    probable and maximum possible losses by category of risk;

15-11                (4)  estimates by category of risk of losses incurred

15-12    but not reported;

15-13                (5)  information the director determines necessary to

15-14    prepare a Texas Workers' Compensation Unit Statistical Report; and

15-15                (6)  additional information that the director

15-16    determines to be necessary.

15-17          (b)  The information shall be reported on or before 60 days

15-18    after the close of each fiscal year.

15-19          SECTION 2.  Section 501.001, Labor Code is amended by

15-20    amending Subdivisions (3) and (4) and by adding Subdivision (7) to

15-21    read as follows:

15-22                (3)  "Director" means the director of the State Office

15-23    of Risk Management [workers' compensation division of the attorney

15-24    general's office].

15-25                (4)  "Office" ["Division"] means the State Office of

15-26    Risk Management [workers' compensation division of the attorney

15-27    general's office].

 16-1                (7)  "Board" means the risk management board.

 16-2          SECTION 3.  Section 501.002 (c), Labor Code, is amended to

 16-3    read as follows:

 16-4          (c)  For the purpose of applying the provisions listed by

 16-5    Subsection (a) to this chapter, "insurer" or "employer" means

 16-6    "state", "office," ["division," or] "director," or "state agency,"

 16-7    as applicable.

 16-8          SECTION 4.  Section 501.003 (a), Labor Code, is amended to

 16-9    read as follows:

16-10          (a)  The provisions of this chapter and the rules of the

16-11    board [director] affecting an employee also apply to the legal

16-12    beneficiary of a deceased employee.

16-13          SECTION 5.  Section 501.046, Labor Code, is amended to read

16-14    as follows:

16-15          Reports of Termination or Continuation of Injuries.  In

16-16    addition to other reports required by the board [commission], the

16-17    director shall file a subsequent report not later than the 10th day

16-18    after the date of the termination of the injured employee's

16-19    incapacity.  If the employee's incapacity extends beyond 60 days,

16-20    the director shall file a subsequent report before the 70th day

16-21    after the date the employee's incapacity began.

16-22          SECTION 6.  The following laws are repealed:

16-23                (1)  Section 501.023, Labor Code;

16-24                (2)  Section 501.041, Labor Code;

16-25                (3)  Section 501.042 (effective for dates of injury

16-26    before September 1, 1995); Section 501.042 (effective for dates of

16-27    injury on or after September 1, 1995), Labor Code;

 17-1                (4)  Section 501.043, Labor Code;

 17-2                (5)  Section 501.047, Labor Code;

 17-3                (6)  Section 501.049, Labor Code.

 17-4          SECTION 7.  Section 402.021 (a), Labor Code is amended to

 17-5    read as follows:

 17-6          (a)  The commission shall have:

 17-7                (1)  a division of workers' health and safety;

 17-8                (2)  a division of medical review;

 17-9                (3)  a division of compliance and practices; and

17-10                (4)  a division of hearings[; and]

17-11                [(5)  a division of risk management].

17-12          SECTION 8.  Section 403.003(b), Labor Code, is amended to

17-13    read as follows:

17-14          (b)  In setting the rate of assessment, the commission may

17-15    not consider revenue or expenditures related to:

17-16                (1)  the State Office of Risk Management [the division

17-17    of risk management];

17-18                (2)  the research and oversight council on workers'

17-19    compensation [the research center]; or

17-20                (3)  any other revenue or expenditure excluded from

17-21    consideration by law.

17-22          SECTION 9.  Except as provided by Section 17 of this Act, the

17-23    change in law made by this Act to Chapter 501, excluding

17-24    Sec. 501.022, Labor Code, applies only to a claim for workers'

17-25    compensation benefits based on a compensable injury that occurs on

17-26    or after September 1, 1997.  A claim based on a compensable injury

17-27    that occurs before that date is governed by the law in effect on

 18-1    the date that the injury occurred, and the former law is continued

 18-2    in effect for that purpose.

 18-3          SECTION 10.  (a)  The division of workers' compensation in

 18-4    the office of attorney general and the division of risk management

 18-5    in the Texas Workers' Compensation Commission are abolished on the

 18-6    effective date of this Act.  All employees, records, equipment, and

 18-7    supplies in the custody of those divisions, as those divisions

 18-8    existed on August 31, 1997, shall be transferred to the State

 18-9    Office of Risk Management not later than December 31, 1997.

18-10          (b)  In making the initial appointments to the risk

18-11    management board, the lieutenant governor and the speaker of the

18-12    house of representatives shall each appoint:

18-13                (1)  one member for a term expiring February 1, 1999;

18-14                (2)  one member for a term expiring February 1, 2001;

18-15    and

18-16                (3)  one member for a term expiring February 1, 2003.

18-17          (c)  The lieutenant governor shall appoint the first

18-18    presiding officer to serve in that capacity for a term expiring

18-19    February 1, 1999.

18-20          SECTION 11.  This Act takes effect September 1, 1997.

18-21          SECTION 12.  The importance of this legislation and the

18-22    crowded condition of the calendars in both houses create an

18-23    emergency and an imperative public necessity that the

18-24    constitutional rule requiring bills to be read on three several

18-25    days in each house be suspended, and this rule is hereby suspended.

18-26                         COMMITTEE AMENDMENT NO. 1

18-27          Amend H.B. 2133 as follows:

 19-1          (1)  Sec. 412.052, Labor Code, is amended to read as follows:

 19-2          Sec. 412.052.  [PROVISIONAL] EXEMPTION OF CERTAIN STATE

 19-3    AGENCIES.

 19-4          (2)  Sec. 412.052, Labor Code, is amended by deleting

 19-5    subsections (b) and (c).

 19-6          (3)  SECTION 9 is amended to read as follows:

 19-7          SECTION 9.  Except as provided by Section 17 of this Act the

 19-8    change in law made by this Act to Chapter 501[, excluding Sec.

 19-9    501.022, Labor Code,] applies only to a claim for workers'

19-10    compensation benefits based on a compensable injury that occurs on

19-11    or after September 1, 1997.  A claim based on a compensable injury

19-12    that occurs before that date is governed by the law in effect on

19-13    the date that the injury occurred, and the former law in continued

19-14    in effect for that purpose.

19-15                                                                Woolley

19-16                         COMMITTEE AMENDMENT NO. 2

19-17          HB 2133 Amend page 3 line 21 by striking "total" and

19-18    inserting on line 22 "by the appropriation structure".

19-19                                                                 Elkins