Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Rhodes                                       H.B. No. 3522

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the administration and enforcement of the workers'

 1-3     compensation law; providing penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 401.011(30), Labor Code, is amended to

 1-6     read as follows:

 1-7                 (30)  "Maximum medical improvement" means the earlier

 1-8     of:

 1-9                       (A)  the earliest date after which, based on

1-10     reasonable medical probability, further material recovery from or

1-11     lasting improvement to an injury can no longer reasonably be

1-12     anticipated; [or]

1-13                       (B)  the expiration of 104 weeks from the date on

1-14     which income benefits begin to accrue; or

1-15                       (C)  that date that a condition is medically

1-16     stabilized if the injured employee has had surgery not later than

1-17     six weeks after the date computed under Paragraph (b), subject to

1-18     the commission's discretion.

1-19           SECTION 2.  Section 402.011, Labor Code, is amended by

1-20     amending Subsection (b) and adding Subsections (c) and (d) to read

1-21     as follows:

1-22           (b)  A member is entitled to reimbursement for actual lost

1-23     wages, if any, for:

1-24                 (1)  [due to] attendance at commission meetings, not to

 2-1     exceed one day in each calendar quarter;

 2-2                 (2)  preparation for a commission meeting, not to

 2-3     extend two days in each calendar quarter;

 2-4                 (3)  attendance at a subcommittee meeting, not to

 2-5     exceed one day each month;

 2-6                 (4)  attendance by the chair or vice chair of the

 2-7     commission at a legislative committee meeting if attendance is

 2-8     requested by the committee chair; and

 2-9                 (5)  attendance at a meeting by a member appointed to

2-10     the Research and Oversight Council on Workers' Compensation or the

2-11     Texas Certified Self-Insured Guarantee Association.

2-12           (c)  Reimbursement under Subsection (b) [this subsection] may

2-13     not exceed $100 a day and $12,000 a year.

2-14           (d)  A member of the commission is entitled to reimbursement

2-15     for actual and necessary expenses for attendance at not more than

2-16     10 seminars in a calendar year if:

2-17                 (1)  the member is invited as a representative of the

2-18     commission to participate in a program offered at the seminar; and

2-19                 (2)  the member's participation is approved by the

2-20     chair of the commission.

2-21           SECTION 3.  Section 403.002(a), Labor Code, is amended to

2-22     read as follows:

2-23           (a)  Each insurance carrier, other than a governmental

2-24     entity, shall pay an annual maintenance tax to pay the costs of

2-25     administering this subtitle[.] and to support the prosecution of

2-26     workers' compensation insurance fraud in this state.

2-27           (b)  The assessment may not exceed an amount equal to two

2-28     percent of the correctly reported gross workers' compensation

2-29     insurance premiums.  Out of this amount, and in addition to the

2-30     amounts assessed to pay the costs of administration, an amount not

 3-1     to exceed one-tenth of one percent of correctly reported gross

 3-2     premiums shall be assessed annually to support the prosecution of

 3-3     workers' compensation insurance fraud.

 3-4           SECTION 4.  Section 403.003(a), Texas Labor Code, is amended

 3-5     to read as follows:

 3-6           (a)(3)  a surplus or deficit produced by the tax in the

 3-7     preceding year; [and]

 3-8           (a)(4)  revenue recovered from other sources, including

 3-9     reappropriated receipts, grants, payments, fees, gifts, and

3-10     penalties recovered under this subtitle; and

3-11           (a)(5)  expenditures projected as necessary to support the

3-12     prosecution of workers' compensation insurance fraud.

3-13           SECTION 5.  Section 408.123, Labor Code, is amended by adding

3-14     Subsection (d) to read as follows:

3-15           (d)  The commission shall adopt rules that prescribe the

3-16     method of determining maximum medical improvement under Section

3-17     401.011(30)(C) and the criteria for determining whether a specific

3-18     injured employee is subject to that provision.

3-19           SECTION 6.  Section 407.103(a), Labor Code, is amended to

3-20     read as follows:

3-21           (a)  Each certified self-insurer shall pay a self insurer

3-22     maintenance tax for the administration of the commission and to

3-23     support the prosecution of workers' compensation insurance fraud in

3-24     this state.  Not more than two-percent of the total tax base of all

3-25     certified self insurers, as computed under Subsection (b), may be

3-26     assessed for a maintenance tax under this section.  Out of this

3-27     amount, and in addition to the amounts assessed to pay the costs of

3-28     administration, an amount not to exceed one-tenth of one percent of

3-29     the total tax base of all certified self-insurers shall be assessed

3-30     annually to support the prosecution of workers' compensation

 4-1     insurance fraud.

 4-2           SECTION 8.  Section 409.042(b), Labor Code, is amended to

 4-3     read as follows:

 4-4           (b)  To be eligible for designation as an ombudsman, a person

 4-5     must:

 4-6                 (1)  demonstrate satisfactory knowledge of the

 4-7     requirements of:

 4-8                       (A)  this subtitle and the provisions of Subtitle

 4-9     C that relate to claims management;

4-10                       (B)  other laws relating to workers'

4-11     compensation; and

4-12                       (C)  rules adopted under this subtitle and the

4-13     laws described under Subdivision (1)(B);

4-14                 (2)  have demonstrated experience in handling and

4-15     resolving problems for the general public;

4-16                 (3)  possesses strong interpersonal skills; and

4-17                 (4)  have at least [three years] one year of

4-18     demonstrated experience in the field of workers' compensation.

4-19           SECTION 9.  Section 415.024, Labor Code, is added to read as

4-20     follows:

4-21           Sec. 415.024.  A breach of a settlement agreement that

4-22     establishes a compliance plan is an administrative violation

4-23     punishable by an administrative penalty not to exceed $50,000.  In

4-24     determining the amount of the penalty, the commission shall

4-25     consider the total volume of claims handled by the insurance

4-26     carrier.

4-27           SECTION 10.  (a)  This Act takes effect September 1, 1997.

4-28           (b)  The change in law made by this Act to Sections 414.004

4-29     and 415.024, Labor Code, applies only to a violation that occurs on

4-30     or after the effective date of this Act.  A violation that occurs

 5-1     before the effective date of this Act is governed by the law in

 5-2     effect on the date the violation occurred, and the former law is

 5-3     continued for that purpose.

 5-4           (c)  The change in law made by this Act to Sections

 5-5     401.011(30) and 408.123, Labor Code, applies only to a claim for

 5-6     benefits filed with the Texas Workers' Compensation Commission on

 5-7     or after the effective date of this Act.  A claim for benefits

 5-8     filed before the effective date of this Act is governed by the law

 5-9     in effect on the date the claim was filed, and the former law is

5-10     continued in effect for that purpose.

5-11           SECTION 11.  The importance of this legislation and the

5-12     crowded condition of the calendars in both houses create an

5-13     emergency and an imperative public necessity that the

5-14     constitutional rule requiring bills to be read on three several

5-15     days in each house be suspended, and this rule is hereby suspended.