By Nelson                                               S.B. No. 41

      75R590 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a discount on workers' compensation insurance premiums

 1-3     for certain employers who maintain a drug-free workplace.

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

 1-5           SECTION 1.  Subchapter D, Chapter 5, Insurance Code, is

 1-6     amended by adding Article 5.55A to read as follows:

 1-7           Art. 5.55A.  PREMIUM DISCOUNT FOR EMPLOYERS WITH DRUG-FREE

 1-8     WORKPLACE.  (a)  In this article, "insurer" means a stock company,

 1-9     mutual company, reciprocal, interinsurance exchange, Lloyd's

1-10     association, or other entity authorized to write workers'

1-11     compensation insurance in this state.  The term includes the Texas

1-12     workers' compensation insurance facility and the Texas workers'

1-13     compensation insurance fund.

1-14           (b)  This article applies to an employer who holds a

1-15     certificate of a drug-free workplace issued by the Texas Workers'

1-16     Compensation Commission under Section 411.092, Labor Code.

1-17           (c)  The commissioner by rule shall adopt a plan under which

1-18     each insurer shall grant a discount to an employer subject to

1-19     Subsection (b) of this article who obtains workers' compensation

1-20     insurance coverage from that insurer and applies for the discount

1-21     in the manner prescribed by the commissioner.  The insurer shall

1-22     grant a discount of five percent on the amount of the employer's

1-23     workers' compensation premium.

1-24           (d)  A discount established under this article is valid for

 2-1     the term of the policy or contract of insurance.  On renewal of the

 2-2     policy or contract, the employer must reapply for the discount in

 2-3     the manner prescribed by the commissioner.

 2-4           (e)  A discount under this article is in addition to any

 2-5     other premium discount to which the employer is eligible under this

 2-6     code.

 2-7           SECTION 2.  Subchapter G, Chapter 411, Labor Code, is amended

 2-8     to read as follows:

 2-9               SUBCHAPTER G.  POLICY FOR ELIMINATION OF DRUGS 

2-10                   IN THE WORKPLACE; CERTIFICATION PROGRAM

2-11           Sec. 411.091.  ADOPTION AND DISTRIBUTION OF DRUG ABUSE POLICY

2-12     BY EMPLOYER.  (a)  Each employer [with 15 or more employees] who

2-13     has workers' compensation insurance coverage shall adopt a policy

2-14     designed to eliminate drug abuse and its effects in the workplace.

2-15           (b)  The employer shall distribute a written copy of the

2-16     policy to each employee.

2-17           Sec. 411.092.  CERTIFICATION PROGRAM.  (a)  In addition to

2-18     the drug abuse policy required under Section 411.091, an employer

2-19     who has workers' compensation insurance coverage may adopt a

2-20     drug-free workplace program under this section.  The commission

2-21     shall issue a certificate to each employer maintaining a program

2-22     adopted under this section who is determined by the commission,

2-23     after an investigation by the division, to meet the requirements of

2-24     Subsection (b).

2-25           (b)  To qualify for certification as a drug-free workplace,

2-26     the employer must:

2-27                 (1)  maintain a resource file of providers of employee

 3-1     assistance programs, including drug and alcohol abuse programs,

 3-2     mental health programs, and other analogous programs designed to

 3-3     assist employees with personal or behavioral problems;

 3-4                 (2)  inform employees and new hires monthly about the

 3-5     availability of assistance through persons listed in the resource

 3-6     file and about employee assistance programs operated directly by

 3-7     the employer, if any; and

 3-8                 (3)  provide an annual education course for employees

 3-9     to assist employees in identifying personal or emotional problems

3-10     that may result in the misuse of alcohol or drugs.

3-11           (c)  A certificate issued under this section is valid for one

3-12     year from the date of issuance and may be renewed by the employer

3-13     on application to the commission and reinvestigation by the

3-14     division.

3-15           Sec. 411.093.  IMPLEMENTATION [ENFORCEMENT]; RULES.  The

3-16     commission shall implement this subchapter [enforce Section

3-17     411.091] and may adopt rules for that purpose.

3-18            SECTION 3.  This Act takes effect September 1, 1997, and

3-19     applies only to a workers' compensation insurance policy that is

3-20     delivered, issued for delivery, or renewed on or after January 1,

3-21     1998.  A policy that is delivered, issued for delivery, or renewed

3-22     before January 1, 1998, is governed by the law as it existed

3-23     immediately before the effective date of this Act, and that law is

3-24     continued in effect for that purpose.

3-25           SECTION 4.  The importance of this legislation and the

3-26     crowded condition of the calendars in both houses create an

3-27     emergency and an imperative public necessity that the

 4-1     constitutional rule requiring bills to be read on three several

 4-2     days in each house be suspended, and this rule is hereby suspended.