HBA-RBT H.B. 729 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 729
By: Hochberg
Business & Industry
2/17/1999
Introduced



BACKGROUND AND PURPOSE 

Workers' Compensation rules provide that a benefit check must be issued in
a timely fashion.  H.B. 729 specifies that payment to the employee must be
made by the benefit due date.  The bill provides for payment by electronic
funds transfer, by mail, or by pick up at the business office.  The bill
also requires electronic funds transfer for payments over an extended
period of time at the employee's option. 
 
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workers' Compensation
Commission in SECTION 1 (Section 409.0231, Labor Code) of this bill. 
 
SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 409, 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.  Requires
the Texas Workers' Compensation Commission to adopt rules necessary to
implement this section, including rules prescribing a period of benefits
that is 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.
           Makes application of this Act prospective from January 1, 2000.
Requires the 
            Texas Worker's Compensation Commission to adopt the rules
Required by Section  
            409.0231 by December 1, 1999.

SECTION 3.  Emergency clause.