1-1 By: Jackson (Senate Sponsor - Ratliff) H.B. No. 2133
1-2 (In the Senate - Received from the House April 17, 1997;
1-3 April 18, 1997, read first time and referred to Committee on
1-4 Economic Development; May 18, 1997, reported favorably by the
1-5 following vote: Yeas 11, Nays 0; May 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the creation, powers, and duties of the State Office of
1-9 Risk Management and to provisions of workers' compensation
1-10 insurance coverage for state employees.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Chapter 412, Labor Code, is amended to read as
1-13 follows:
1-14 CHAPTER 412. STATE OFFICE OF RISK MANAGEMENT
1-15 SUBCHAPTER A. GENERAL PROVISIONS
1-16 Sec. 412.001. DEFINITIONS. In this chapter:
1-17 (1) "Board" means the risk management board.
1-18 (2) "Director" means the executive director of the
1-19 office.
1-20 (3) "Office" means the State Office of Risk
1-21 Management.
1-22 (4) "State agency" means a board, commission,
1-23 department, office, or other agency in the executive, judicial, or
1-24 legislative branch of state government that has five or more
1-25 employees, was created by the constitution or a statute of this
1-26 state, and has authority not limited to a specific geographical
1-27 portion of the state.
1-28 (Sections 412.002-412.010 reserved for expansion
1-29 SUBCHAPTER B. OFFICE
1-30 Sec. 412.011. OFFICE. (a) The State Office of Risk
1-31 Management is created to administer the government employees
1-32 workers' compensation insurance and the state risk management
1-33 programs.
1-34 (b) The office shall:
1-35 (1) administer guidelines adopted by the board for a
1-36 comprehensive risk management program applicable to all state
1-37 agencies to reduce property and liability losses, including
1-38 workers' compensation losses;
1-39 (2) review, verify, monitor, and approve risk
1-40 management programs adopted by state agencies;
1-41 (3) assist a state agency that has not implemented an
1-42 effective risk management program to implement a comprehensive
1-43 program that meets the guidelines established by the board; and
1-44 (4) administer the workers' compensation insurance
1-45 program for state employees established under Chapter 501.
1-46 (c) The office is administratively attached to the
1-47 commission and the commission shall provide the facilities for the
1-48 office, but the office shall be independent of the commission's
1-49 direction.
1-50 Sec. 412.012. FUNDING. (a) The office shall be
1-51 administered through money appropriated by the legislature and
1-52 through (1) interagency contracts for the risk management program
1-53 and (2) the allocation program for the financing of state workers'
1-54 compensation benefits.
1-55 (b) Interagency Contracts. (1) Each state agency shall
1-56 enter into an interagency contract with the office under Chapter
1-57 771, Government Code, to pay the costs incurred by the office in
1-58 administering this chapter for the benefit of that state agency.
1-59 Costs payable under the contract include the cost of:
1-60 (A) services of office employees;
1-61 (B) materials; and
1-62 (C) equipment, including computer hardware and
1-63 software.
1-64 (2) The amount of the costs to be paid by a state
2-1 agency under the interagency contract is based on:
2-2 (A) the number of employees of the agency
2-3 compared with the total number of employees of all state agencies
2-4 to which this chapter applies;
2-5 (B) the dollar value of the agency's property
2-6 and asset and liability exposure compared to that of all state
2-7 agencies to which this chapter applies; and
2-8 (C) the number and aggregate cost of claims and
2-9 losses incurred by the state agency compared to those incurred by
2-10 all state agencies to which this chapter applies.
2-11 (c) State Self-Insuring: Allocation Program for Financing
2-12 of State Workers' Compensation Benefits. (1) The state is
2-13 self-insuring with respect to an employee's compensable injury.
2-14 The legislature shall appropriate the amount designated by the
2-15 appropriation structure for the payment of state workers'
2-16 compensation claims costs to the office. This section does not
2-17 affect the reimbursement of claims costs by funds other than
2-18 general revenue funds, as provided by the General Appropriations
2-19 Act.
2-20 (2) The office shall establish an allocation program
2-21 for the payment of workers' compensation claims paid from the
2-22 general revenue that are incurred by state agencies subject to
2-23 Chapter 501. The money appropriated by the legislature for
2-24 workers' compensation for state employees shall be allocated under
2-25 that program as provided herein.
2-26 (3) Based on the information reported to the office
2-27 under Sections 412.032 and 501.048, at the beginning of each state
2-28 fiscal biennium the office shall determine which state agencies
2-29 accounted for 90 percent of the state's general revenue claims for
2-30 workers' compensation claims costs for the preceding state fiscal
2-31 biennium. Those state agencies are required to participate in the
2-32 allocation program for the next state fiscal biennium. The office
2-33 shall establish a formula for allocating the state's workers'
2-34 compensation costs among those agencies, based on the claims
2-35 experience of the agencies and the related costs incurred by
2-36 administering the claims.
2-37 (4) A state agency that is required to participate in
2-38 the allocation program shall be rewarded or penalized for its
2-39 actual performance against expected workers' compensation losses as
2-40 provided by Subsection (c).
2-41 (5) The office shall receive the amount appropriated
2-42 for workers' compensation claims. The office shall:
2-43 (A) monitor workers' compensation expenses
2-44 incurred by each state agency required to participate in the
2-45 allocation program; and
2-46 (B) compare and report to each of those agencies
2-47 the difference between the allocated amount and the agency's actual
2-48 expenses for workers' compensation.
2-49 (6) If, based on the comparison performed under
2-50 Subdivision (5)(B), the office determines that an agency's
2-51 performance resulted in workers' compensation claims costs that
2-52 were higher than the amount allocated to that agency, the agency is
2-53 not entitled to additional state funds for those costs beyond the
2-54 initial allocation and shall pay the additional costs from the
2-55 agency's regular appropriated funds as listed in the General
2-56 Appropriations Act. The agency shall reimburse the office for the
2-57 additional costs through interagency contracts, from the agency's
2-58 regular appropriated funds.
2-59 (7) If, based on the comparison performed under
2-60 Subdivision (5)(B), the office determines that an agency's
2-61 performance resulted in workers' compensation claims costs that
2-62 were lower than the amount allocated to that agency, the agency is
2-63 entitled to retain a portion of the savings. The office shall
2-64 determine the amount of the savings that the agency may retain.
2-65 (8) A state agency that is determined by the office to
2-66 be exempt from participation in the allocation program shall
2-67 receive full coverage for workers' compensation costs incurred by
2-68 that agency from the office.
2-69 (d) State Workers' Compensation Account. (1) All money
3-1 recovered by the director from a third party through subrogation
3-2 shall be deposited into the state workers' compensation account in
3-3 general revenue.
3-4 (2) Funds deposited under this section may be used for
3-5 the payment of compensation and other benefits to state employees.
3-6 (Sections 412.013-412.020 reserved for expansion
3-7 SUBCHAPTER C. BOARD
3-8 Sec. 412.021. RISK MANAGEMENT BOARD. (a) The office is
3-9 governed by the risk management board. Members of the board must
3-10 have demonstrated experience in the field of workers' compensation
3-11 and risk management administration.
3-12 (b) The board is composed of six members as follows:
3-13 (1) three members appointed by the lieutenant
3-14 governor; and
3-15 (2) three members appointed by the speaker of the
3-16 house of representatives.
3-17 (c) Members of the board hold office for staggered terms of
3-18 six years with two members' terms expiring February 1 of each
3-19 odd-numbered year. A member appointed to fill a vacancy shall hold
3-20 office for the remainder of that term.
3-21 (d) The lieutenant governor and speaker of the house of
3-22 representatives shall designate one member of the board as
3-23 presiding officer on an alternating basis. The presiding officer
3-24 shall serve in that capacity for a two-year term.
3-25 (e) The board is subject to Chapters 552 and 2001,
3-26 Government Code.
3-27 (f) The board is subject to Chapter 325, Government Code
3-28 (Texas Sunset Act). Unless continued in existence as provided by
3-29 that chapter, the board is abolished and this section expires
3-30 September 1, 2009.
3-31 Sec. 412.022. TRAINING PROGRAM FOR BOARD MEMBERS. (a) To
3-32 be eligible to take office as a member of the board, a person
3-33 appointed to the board must complete at least one course of a
3-34 training program that complies with this section. If the course
3-35 has not been completed at the time of the appointment, the training
3-36 program is to be completed within six months from the date of
3-37 appointment, failure of which constitutes grounds for removal from
3-38 the board.
3-39 (b) A training program established under this section must
3-40 provide information to the member regarding:
3-41 (1) the enabling legislation that created the board;
3-42 (2) the program operated by the board;
3-43 (3) the role and functions of the board;
3-44 (4) the rules of the board, with an emphasis on the
3-45 rules that relate to disciplinary and investigatory authority;
3-46 (5) the current budget for the board;
3-47 (6) the results of the most recent formal audit of the
3-48 board;
3-49 (7) the requirements of:
3-50 (A) the open meetings law, Chapter 551,
3-51 Government Code;
3-52 (B) the open records law, Chapter 552,
3-53 Government Code; and
3-54 (C) the administrative procedure law, Chapter
3-55 2001, Government Code;
3-56 (8) the requirements of the conflict of interest laws
3-57 and other laws relating to public officials; and
3-58 (9) any applicable ethics policies adopted by the
3-59 board or the Texas Ethics Commission.
3-60 Sec. 412.023. EFFECT OF LOBBYING ACTIVITY. A person may not
3-61 serve as a member of the board or act as the general counsel to the
3-62 board if the person is required to register as a lobbyist under
3-63 Chapter 305, Government Code, because of the person's activities
3-64 for compensation on behalf of a profession that is regulated by or
3-65 that has fees regulated by the board.
3-66 Sec. 412.024. GROUNDS FOR REMOVAL FROM BOARD. (a) It is a
3-67 ground for removal from the board if a member:
3-68 (1) does not have at the time of appointment the
3-69 qualifications required for appointment to the board other than the
4-1 requirements of Section 412.022;
4-2 (2) does not maintain during service on the board the
4-3 qualifications required for appointment to the board;
4-4 (3) violates a prohibition established by Section
4-5 412.023;
4-6 (4) cannot because of illness or incapacity discharge
4-7 the member's duties for a substantial part of the term for which
4-8 the member is appointed; or
4-9 (5) is absent from more than half of the regularly
4-10 scheduled board meetings that the member is eligible to attend
4-11 during a calendar year.
4-12 (b) If the director knows that a potential ground for
4-13 removal exists, the director shall notify the presiding officer of
4-14 the board of the potential ground. The presiding officer shall
4-15 then notify the lieutenant governor, the speaker of the house of
4-16 representatives, and the attorney general that a potential ground
4-17 for removal exists. If the potential ground for removal involves
4-18 the presiding officer, the director shall notify the next highest
4-19 officer of the board, who shall notify the lieutenant governor, the
4-20 speaker of the house of representatives, and the attorney general
4-21 that a potential ground for removal exists.
4-22 (Sections 412.025-412.030 reserved for expansion
4-23 SUBCHAPTER D. GENERAL POWERS AND DUTIES OF BOARD
4-24 Sec. 412.031. RULEMAKING AUTHORITY. The board shall adopt
4-25 rules as necessary to implement this chapter and Chapter 501,
4-26 including rules relating to reporting requirements for a state
4-27 agency.
4-28 Sec. 412.032. BOARD'S REPORT TO LEGISLATURE. (a) Based on
4-29 the recommendations of the director, the board shall report to each
4-30 legislature relating to:
4-31 (1) methods to reduce the exposure of state agencies
4-32 to the risks of property and liability losses, including workers'
4-33 compensation losses;
4-34 (2) the operation, financing, and management of those
4-35 risks; and
4-36 (3) the handling of claims brought against the state.
4-37 (b) The report must include:
4-38 (1) the frequency, severity, and aggregate amount of
4-39 open and closed claims in the preceding biennium by category of
4-40 risk, including final judgments;
4-41 (2) the identification of each state agency that has
4-42 not complied with the risk management guidelines and reporting
4-43 requirements of this chapter; and
4-44 (3) recommendations for the coordination and
4-45 administration of a comprehensive risk management program to serve
4-46 all state agencies, including recommendations for any necessary
4-47 statutory changes.
4-48 Sec. 412.033. The board shall hire a qualified person to
4-49 serve as director of the office. The director serves at the
4-50 pleasure of the board.
4-51 (Sections 412.034-412.040 reserved for expansion
4-52 SUBCHAPTER E. DIRECTOR
4-53 Sec. 412.041. DUTIES; RESPONSIBILITIES. (a) The director
4-54 serves as the state risk manager.
4-55 (b) The director shall supervise the development and
4-56 administration of systems to:
4-57 (1) identify the property and liability losses,
4-58 including workers' compensation losses, of each state agency;
4-59 (2) identify the administrative costs of risk
4-60 management incurred by each state agency;
4-61 (3) identify and evaluate the exposure of each state
4-62 agency to claims for property and liability losses, including
4-63 workers' compensation; and
4-64 (4) reduce the property and liability losses,
4-65 including workers' compensation, incurred by each state agency.
4-66 (c) In addition to other duties provided by this chapter, by
4-67 Chapter 501, and by the board, the director shall:
4-68 (1) keep full and accurate minutes of the transactions
4-69 and proceedings of the board;
5-1 (2) be the custodian of the files and records of the
5-2 board;
5-3 (3) prepare and recommend to the board plans and
5-4 procedures necessary to implement the purposes and objectives of
5-5 this chapter and Chapter 501, including rules and proposals for
5-6 administrative procedures consistent with this chapter and Chapter
5-7 501;
5-8 (4) hire staff as necessary to accomplish the
5-9 objectives of the board and may delegate powers and duties to
5-10 members of that staff as necessary;
5-11 (5) be responsible for the investigation of complaints
5-12 and for the presentation of formal complaints;
5-13 (6) attend all meetings of the board as a nonvoting
5-14 participant; and
5-15 (7) handle the correspondence of the board and obtain,
5-16 assemble, or prepare the reports and information that the board may
5-17 direct or authorize.
5-18 (d) If necessary to the administration of this chapter and
5-19 Chapter 501, the director, with the approval of the board, may
5-20 secure and provide for services that are necessary and may employ
5-21 and compensate within available appropriations professional
5-22 consultants, technical assistants, and employees on a full-time or
5-23 part-time basis.
5-24 (e) The director also serves as the administrator of the
5-25 government employees workers' compensation insurance program.
5-26 (f) In administering and enforcing Chapter 501, the director
5-27 shall act in the capacity of employer and insurer. (effective for
5-28 dates of injury before September 1, 1995.)
5-29 (1) The director shall act as an adversary before the
5-30 commission and courts and present the legal defenses and positions
5-31 of the state as an employer and insurer.
5-32 (2) For the purposes of this subsection and Chapter
5-33 501, the director is entitled to the legal counsel of the attorney
5-34 general.
5-35 (3) The director is subject to the rules, orders, and
5-36 decisions of the commission in the same manner as a private
5-37 employer, insurer, or association.
5-38 (g) In administering and enforcing Chapter 501, the director
5-39 shall act in the capacity of insurer. (effective for dates of
5-40 injury on or after September 1, 1995.)
5-41 (1) The director shall act as an adversary before the
5-42 commission and courts and present the legal defenses and positions
5-43 of the state as an insurer.
5-44 (2) For purposes of this subsection and Chapter 501,
5-45 the director is entitled to legal counsel of the attorney general.
5-46 (3) The director is subject to the rules, orders, and
5-47 decisions of the commission in the same manner as an insurer or
5-48 association.
5-49 (h) The director shall:
5-50 (1) prepare for adoption by the board procedural rules
5-51 and prescribe forms necessary for the effective administration of
5-52 this chapter and Chapter 501 (effective for dates of injury before
5-53 September 1, 1995); and
5-54 (2) prepare for adoption by the board and enforce
5-55 reasonable rules for the prevention of accidents and injuries;
5-56 (3) prepare for adoption by the board procedural rules
5-57 and prescribe forms necessary for the effective administration of
5-58 this chapter and Chapter 501. (effective for dates of injury on or
5-59 after September 1, 1995.)
5-60 (i) The director shall hold hearings on all proposed rules
5-61 and provide reasonable opportunity for the officers of state
5-62 agencies to testify at hearings on all proposed rules under this
5-63 chapter and Chapter 501.
5-64 (j) The director shall furnish copies of all rules to the
5-65 commission and to the administrative heads of all state agencies
5-66 affected by this chapter and Chapter 501.
5-67 Sec. 412.042. REPORTS TO THE LEGISLATURE. (a) The director
5-68 shall report to the legislature at the beginning of each regular
5-69 session.
6-1 (b) The report required under this section shall be dated
6-2 January 1 of the year in which the regular session is held and must
6-3 include:
6-4 (1) a list of all persons who have received benefits
6-5 under Chapter 501, the nature and cause of each injury, and the
6-6 amounts paid weekly in income benefits and for medical, hospital,
6-7 and other services;
6-8 (2) a summary of administrative expenses;
6-9 (3) a statement:
6-10 (A) showing the amount of the money appropriated
6-11 by the preceding legislature that remains unexpended on the date of
6-12 the report; and
6-13 (B) estimating the amount of that balance
6-14 necessary to administer Chapter 501 for the remainder of that
6-15 fiscal year; and
6-16 (C) an estimate, based on experience factors, of
6-17 the amount of money that will be required to administer Chapter 501
6-18 and pay for the compensation and services provided under Chapter
6-19 501 during the next succeeding biennium.
6-20 (c) The director shall report to the legislature a state
6-21 agency that fails to meet its obligation regarding the prevention
6-22 of accidents and injuries to state employees.
6-23 (Sections 412.043-412.050 reserved for expansion
6-24 SUBCHAPTER F. STATE AGENCIES
6-25 Sec. 412.051. DUTIES OF STATE AGENCIES. Each state agency
6-26 subject to this chapter shall actively manage the risks of that
6-27 agency by developing, implementing, and maintaining programs
6-28 designed to assist employees who sustain compensable injuries to
6-29 return to work.
6-30 Sec. 412.052. EXEMPTION OF CERTAIN STATE AGENCIES. This
6-31 chapter does not apply to a state agency that had medical
6-32 malpractice insurance coverage, workers' compensation insurance
6-33 coverage, or other self-insurance coverage with associated risk
6-34 management programs before January 1, 1989.
6-35 Sec. 412.053. ANNUAL REPORT BY STATE AGENCY. (a) Each
6-36 state agency shall report to the director for each fiscal year:
6-37 (1) the location, timing, frequency, severity, and
6-38 aggregate amounts of losses by category of risk, including open and
6-39 closed claims and final judgments;
6-40 (2) loss information obtained by the state agency in
6-41 the course of its administration of the workers' compensation
6-42 program;
6-43 (3) detailed information on existing and potential
6-44 exposure to loss, including property location and values,
6-45 descriptions of agency operations, and estimates of maximum
6-46 probable and maximum possible losses by category of risk;
6-47 (4) estimates by category of risk of losses incurred
6-48 but not reported;
6-49 (5) information the director determines necessary to
6-50 prepare a Texas Workers' Compensation Unit Statistical Report; and
6-51 (6) additional information that the director
6-52 determines to be necessary.
6-53 (b) The information shall be reported on or before 60 days
6-54 after the close of each fiscal year.
6-55 [CHAPTER 412. DIVISION OF RISK MANAGEMENT]
6-56 [Sec. 412.001. DEFINITIONS. In this chapter:]
6-57 [(1) "Director" means the director of the division.]
6-58 [(2) "Division" means the division of risk management
6-59 of the commission.]
6-60 [(3) "State agency" means a board, commission,
6-61 department, office, or other agency in the executive, judicial, or
6-62 legislative branch of state government that has five or more
6-63 employees, was created by the constitution or a statute of this
6-64 state, and has authority not limited to a specific geographical
6-65 portion of the state. The term includes an institution of higher
6-66 education as defined by Section 61.003, Education Code.]
6-67 [Sec. 412.002. EXEMPTION OF CERTAIN STATE AGENCIES. This
6-68 chapter does not apply to a state agency that had medical
6-69 malpractice insurance coverage, workers' compensation insurance
7-1 coverage, or other self-insurance coverage with associated risk
7-2 management programs before January 1, 1989.]
7-3 [Sec. 412.0025. DUTIES OF STATE AGENCIES. Each state agency
7-4 subject to this chapter shall actively manage the risks of that
7-5 agency by developing, implementing, and maintaining health and
7-6 safety programs and programs designed to assist employees who
7-7 sustain compensable injuries to return to work.]
7-8 [Sec. 412.003. DUTIES OF DIVISION. (a) The division shall:]
7-9 [(1) administer guidelines adopted by the commission
7-10 for a comprehensive risk management program applicable to all state
7-11 agencies to reduce property and liability losses, including
7-12 workers' compensation losses; and]
7-13 [(2) review, verify, monitor, and approve risk
7-14 management programs adopted by state agencies.]
7-15 [(b) The division shall assist a state agency that has not
7-16 implemented an effective risk management program to implement a
7-17 comprehensive program that meets the division guidelines.]
7-18 [Sec. 412.004. STATE RISK MANAGER. (a) The director serves
7-19 as the state risk manager.]
7-20 [(b) The director shall supervise the development and
7-21 administration of systems to:]
7-22 [(1) identify the property and liability losses,
7-23 including workers' compensation losses, of each state agency;]
7-24 [(2) identify the administrative costs of risk
7-25 management incurred by each state agency;]
7-26 [(3) identify and evaluate the exposure of each state
7-27 agency to claims for property and liability losses, including
7-28 workers' compensation; and]
7-29 [(4) reduce the property and liability losses,
7-30 including workers' compensation, incurred by each state agency.]
7-31 [Sec. 412.005. ANNUAL REPORT BY STATE AGENCY. (a) Each
7-32 state agency shall report to the director for each fiscal year:]
7-33 [(1) the location, timing, frequency, severity, and
7-34 aggregate amounts of losses by category of risk, including open and
7-35 closed claims and final judgments;]
7-36 [(2) loss information obtained by the workers'
7-37 compensation division of the attorney general's office in the
7-38 course of its administration of the workers' compensation program
7-39 for state agencies;]
7-40 [(3) detailed information on existing and potential
7-41 exposures to loss, including property location and values,
7-42 descriptions of agency operations, and estimates of maximum
7-43 probable and maximum possible losses by category of risk;]
7-44 [(4) estimates by category of risk of losses incurred
7-45 but not reported;]
7-46 [(5) information the director determines necessary to
7-47 prepare a Texas Workers' Compensation Unit Statistical Report; and]
7-48 [(6) additional information that the director
7-49 determines to be necessary.]
7-50 [(b) The information shall be reported on or before 60 days
7-51 after the close of each fiscal year.]
7-52 [Sec. 412.006. RULEMAKING AUTHORITY. The commission may
7-53 adopt rules to implement this chapter, including rules relating to
7-54 reporting requirements for a state agency.]
7-55 [Sec. 412.007. COMMISSION'S REPORT TO LEGISLATURE.
7-56 (a) Based on the recommendations of the director, the commission
7-57 shall report to each legislature relating to:]
7-58 [(1) methods to reduce the exposure of state agencies
7-59 to the risks of property and liability losses, including workers'
7-60 compensation losses;]
7-61 [(2) the operation, financing, and management of those
7-62 risks; and]
7-63 [(3) the handling of claims brought against the state.]
7-64 [(b) The report must include:]
7-65 [(1) the frequency, severity, and aggregate amount of
7-66 open and closed claims in the preceding biennium by category of
7-67 risk, including final judgments;]
7-68 [(2) the identification of each state agency that has
7-69 not complied with the risk management guidelines and reporting
8-1 requirements of this chapter; and]
8-2 [(3) recommendations for the coordination and
8-3 administration of a comprehensive risk management program to serve
8-4 all state agencies, including recommendations for any necessary
8-5 statutory changes.]
8-6 [Sec. 412.008. INTERAGENCY CONTRACTS. (a) Each state
8-7 agency shall enter into an interagency contract with the commission
8-8 under Chapter 771, Government Code, to pay the costs incurred by
8-9 the commission in administering this chapter for the benefit of
8-10 that state agency. Costs payable under the contract include the
8-11 cost of:]
8-12 [(1) services of commission employees;]
8-13 [(2) materials; and]
8-14 [(3) equipment, including computer hardware and
8-15 software.]
8-16 [(b) The amount of the costs to be paid by a state agency
8-17 under the interagency contract is based on:]
8-18 [(1) the number of employees of the agency compared
8-19 with the total number of employees of all state agencies to which
8-20 this chapter applies;]
8-21 [(2) the dollar value of the agency's property and
8-22 asset and liability exposure compared to that of all state agencies
8-23 to which this chapter applies; and]
8-24 [(3) the number and aggregate cost of claims and
8-25 losses incurred by the agency compared to those incurred by all
8-26 state agencies to which this chapter applies.]
8-27 SECTION 2. Section 501.001, Labor Code, is amended by
8-28 amending Subdivisions (3) and (4) and adding Subdivision (7) to
8-29 read as follows:
8-30 (3) "Director" means the director of the State Office
8-31 of Risk Management [workers' compensation division of the attorney
8-32 general's office].
8-33 (4) "Office" ["Division"] means the State Office of
8-34 Risk Management [workers' compensation division of the attorney
8-35 general's office].
8-36 (7) "Board" means the risk management board.
8-37 SECTION 3. Section 501.002(c), Labor Code, is amended to
8-38 read as follows:
8-39 (c) For the purpose of applying the provisions listed by
8-40 Subsection (a) to this chapter, "insurer" or "employer" means
8-41 "state," "office," ["division," or] "director," or "state agency,"
8-42 as applicable.
8-43 SECTION 4. Section 501.003(a), Labor Code, is amended to
8-44 read as follows:
8-45 (a) The provisions of this chapter and the rules of the
8-46 board [director] affecting an employee also apply to the legal
8-47 beneficiary of a deceased employee.
8-48 SECTION 5. Section 501.046, Labor Code, is amended to read
8-49 as follows:
8-50 Sec. 501.046. Reports of Termination or Continuation of
8-51 Injuries. In addition to other reports required by the board
8-52 [commission], the director shall file a subsequent report not later
8-53 than the 10th day after the date of the termination of the injured
8-54 employee's incapacity. If the employee's incapacity extends beyond
8-55 60 days, the director shall file a subsequent report before the
8-56 70th day after the date the employee's incapacity began.
8-57 SECTION 6. The following laws are repealed:
8-58 (1) Section 501.023, Labor Code;
8-59 (2) Section 501.041, Labor Code;
8-60 (3) Section 501.042 (effective for dates of injury
8-61 before September 1, 1995); Section 501.042 (effective for dates of
8-62 injury on or after September 1, 1995), Labor Code;
8-63 (4) Section 501.043, Labor Code;
8-64 (5) Section 501.047, Labor Code; and
8-65 (6) Section 501.049, Labor Code.
8-66 SECTION 7. Section 402.021(a), Labor Code, is amended to
8-67 read as follows:
8-68 (a) The commission shall have:
8-69 (1) a division of workers' health and safety;
9-1 (2) a division of medical review;
9-2 (3) a division of compliance and practices; and
9-3 (4) a division of hearings[; and]
9-4 [(5) a division of risk management].
9-5 SECTION 8. Section 403.003(b), Labor Code, is amended to
9-6 read as follows:
9-7 (b) In setting the rate of assessment, the commission may
9-8 not consider revenue or expenditures related to:
9-9 (1) the State Office of Risk Management [the division
9-10 of risk management];
9-11 (2) the research and oversight council on workers'
9-12 compensation [the research center]; or
9-13 (3) any other revenue or expenditure excluded from
9-14 consideration by law.
9-15 SECTION 9. The change in law made by this Act to Chapter
9-16 501, Labor Code, applies only to a claim for workers' compensation
9-17 benefits based on a compensable injury that occurs on or after
9-18 September 1, 1997. A claim based on a compensable injury that
9-19 occurs before that date is governed by the law in effect on the
9-20 date that the injury occurred, and the former law is continued in
9-21 effect for that purpose.
9-22 SECTION 10. (a) The division of workers' compensation in
9-23 the office of the attorney general and the division of risk
9-24 management in the Texas Workers' Compensation Commission are
9-25 abolished on the effective date of this Act. All employees,
9-26 records, equipment, and supplies in the custody of those divisions,
9-27 as those divisions existed on August 31, 1997, shall be transferred
9-28 to the State Office of Risk Management not later than December 31,
9-29 1997.
9-30 (b) In making the initial appointments to the risk
9-31 management board, the lieutenant governor and the speaker of the
9-32 house of representatives shall each appoint:
9-33 (1) one member for a term expiring February 1, 1999;
9-34 (2) one member for a term expiring February 1, 2001;
9-35 and
9-36 (3) one member for a term expiring February 1, 2003.
9-37 (c) The lieutenant governor shall appoint the first
9-38 presiding officer to serve in that capacity for a term expiring
9-39 February 1, 1999.
9-40 SECTION 11. This Act takes effect September 1, 1997.
9-41 SECTION 12. The importance of this legislation and the
9-42 crowded condition of the calendars in both houses create an
9-43 emergency and an imperative public necessity that the
9-44 constitutional rule requiring bills to be read on three several
9-45 days in each house be suspended, and this rule is hereby suspended.
9-46 * * * * *