SRC-JBJ, JXG H.B. 729 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 729
76R10103 JMM-FBy: Hochberg (Barrientos)
Economic Development
5/13/1999
Engrossed


DIGEST 

Workers' Compensation Commission rules provide that a benefit check must be
issued in a timely fashion.  H.B. 729 would specify that payment to the
employee must be made by the benefit due date, and would require electronic
funds transfer for payments over an extended period of time, at the
employee's option.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workers' Compensation
Commission in SECTION 1 (Section 409.0231, Labor Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 409B, Labor Code, by adding Sections 409.0231 and
409.0232, as follows:  

Sec. 409.0231. PAYMENT BY ELECTRONIC FUNDS TRANSFER.  Requires insurance
carriers to offer employees entitled to payment of benefits, for a period
of sufficient duration, the option of receiving payments by electronic
funds transfer.  Requires the insurance carrier to provide the necessary
forms to an employee who requests payments by electronic funds transfer.
Authorizes the Texas Workers' Compensation Commission (TWCC) to adopt rules
in consultation with the Texas Department of Information Resources as
necessary to implement this section, including rules prescribing a period
of benefits that are of sufficient duration to allow payment by electronic
funds transfer.  

Sec. 409.0232. TIMELINESS OF PAYMENTS. Provides that an insurance carrier
is considered to have paid benefits in a timely manner if payment is made
by electronic funds transfer and deposited in the employee's account by the
benefit payment due date, if payment is made by mail and mailed in time for
the payment to be postmarked by the benefit payment due date, or if payment
is made available for the employee to pick up by the opening of business on
the benefit payment due date.  

SECTION 2. Effective date: September 1, 1999, except that Section 409.0232,
Labor Code, as added by this Act, takes effect upon passage.  Makes
application of Section 409.0231 of this Act prospective to September 1,
2000.  Requires TWCC to adopt the rules required by Section 409.0231 by
December 1, 1999. 

SECTION 3. Emergency clause.