SRC-PNG C.S.H.B. 542 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 542
76R2989 PB-DBy: Brimer (Fraser)
Economic Development
5/12/1999
Committee Report (Substituted)


DIGEST 

Currently, all sitting board members of the Texas Workers' Compensation
Insurance Fund must be policyholders of the fund.  Since 1994, the
policyholder base of the fund has decreased nearly 50 percent, making it
increasingly difficult to locate and recruit board members.  This bill
would delete the requirement that board members of the fund be
policyholders, in order to provide the fund the option of recruiting board
members from outside its policyholder base, if necessary. 

PURPOSE

As proposed, C.S.H.B. 542 deletes the requirement that board members of the
Texas Workers' Compensation Insurance Fund be policyholders of the fund, in
order to provide the fund the option of recruiting board members from
outside its policyholder base, if necessary. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3, Article 5.76-3, Insurance Code, by deleting
the requirement that to be eligible for appointment as a member of the
board of directors (board) of the Texas Workers' Compensation Insurance
Fund (fund) a person must be a policyholder of the fund or an officer or
employee of a policyholder and must maintain that status during the period
on the board.  Deletes text providing that failure to maintain eligibility
requirements disqualifies a board member and creates a vacancy on the
board.  Deletes text requiring the initial appointees to the board to be
employers in this state.  Makes conforming and nonsubstantive changes. 

SECTION 2. Amends Section 9(c), Article 5.76-3, Insurance Code, to
authorize the Texas Workers' Compensation Insurance Fund (fund) to
establish multitiered systems to price, rather than provide, workers'
compensation insurance policies to insureds in its competitive programs as
well as to insureds whose policies are offered pursuant to Article 5.76-4
of this code, rather than to insureds who would not otherwise meet the
fund's underwriting standards.  Authorizes the systems to provide for
higher or lower premium payments by insureds based on the fund's evaluation
of the underwriting characteristics of the individual risk and the
appropriate premium to be charged for the policy coverages, rather than by
insureds who present higher than normal risks within a class. 

SECTION 3. Emergency clause.
  Effective date: upon passage.