SRC-JJJ H.B. 2514 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2514
By: Ritter (Armbrister)
Economic Development
5/13/1999
Engrossed


DIGEST 

Currently, the Texas Workers' Compensation Commission's (TWCC)
extra-hazardous employer program is limited in application to public
employers such as counties, cities, and school districts. This is the
result of a 1996 decision by the Third Court of Appeals, which ruled that
the program was duplicative of the federal Occupational Safety and Health
Act (OSHA). Also, the Texas Workers' Compensation Act does not authorize
TWCC to obtain reimbursement for the cost of inspecting an insurance
carrier's accident prevention services program, and if the insurance
carrier fails the inspection, the carrier is not responsible for the cost
of a reinspection by TWCC. H.B. 2514 limits the application of the renamed
hazardous employer program to reflect the OSHA preemption, and requires
TWCC to reinspect the accident prevention services of insurance carriers
who fail an initial inspection, and to collect reasonable costs from
insurance carriers to cover reinspection. 

PURPOSE

As proposed, H.B. 2514 establishes conditions regarding workers'
compensation programs conducted to increase worker safety. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workers' Compensation
Commission in SECTION 2.04 (Section 411.042, Labor Code) of this bill.  

SECTION BY SECTION ANALYSIS

ARTICLE 1. IMMUNITY FOR LIABILITY FOR CERTAIN SAFETY CONSULTATIONS

SECTION 1.01. Amends Section 411.003(a), Labor Code, to provide that an
insurance company or safety consultant has no liability for accident,
injury, or occupational disease caused by a program, inspection, or other
activity or service undertaken by the insurance company for accident
prevention.  

ARTICLE 2. HAZARDOUS EMPLOYER PROGRAM

SECTION 2.01. Amends the heading to Subchapter D, Chapter 411, Labor Code,
as follows:  

 SUBCHAPTER D. New heading: HAZARDOUS EMPLOYER PROGRAM

SECTION 2.02. Amends Section 411.041, Labor Code, as follows:

Sec. 411.041. New heading: APPLICATION; IDENTIFICATION OF HAZARDOUS
EMPLOYER. Provides that this subchapter does not apply to a federal entity
or to a state agency, institution, or department described by Chapters 501,
502, 503, or 505; Sections 411.043, 411.044, 411.045, 411.046, and 411.047
apply only to a political subdivision that is subject to Chapter 504, and
employees not covered by Subdivision (1); Sections 411.0415, 411.042,
411.048, 411.049, and 411.050 apply to all employers, other than those
described in Subdivision (1).  Makes conforming and nonsubstantive changes. 

SECTION 2.03. Amends Sections 411.0415(a) and (c), Labor Code, to make
conforming and nonsubstantive changes.  
 
SECTION 2.04. Amends Section 411.042, Labor Code, as follows:

Sec. 411.042.  New heading NOTIFICATION TO HAZARDOUS EMPLOYER AND INSURANCE
CARRIER.  Requires the Texas Workers' Compensation Commission (commission),
by rule, to require a minimum interval of at least six months before a
subsequent audit to identify an employer who was previously identified as a
hazardous employer.  Makes conforming and nonsubstantive changes.  

SECTION 2.05. Amends Section 411.048, Labor Code, to require the commission
to charge a private employer for reimbursement of the reasonable cost of
services provided by the division of workers' health and safety of the
commission (division), including a reasonable allocation of administrative
costs, in providing safety and health services at the employer's request.
Provides that this subsection does not apply to services provided to an
employer under Section 411.018. Makes conforming and nonsubstantive
changes.  

SECTION 2.06. Amends Section 411.050, Labor Code, to make conforming
changes.  

ARTICLE 3. INSURER ACCIDENT PREVENTION SERVICES

SECTION 3.01. Amends Section 411.064, Labor Code, by creating Subsection(a)
from existing text, and by adding Subsections (b) and (c), to require the
division, if after the biennial inspection required under this section it
determines that an insurance company's accident prevention services are
inadequate, to reinspect the services no earlier than 180 days or later
than 270 days after they are determined inadequate.  Requires the insurance
company to reimburse the commission for the cost of reinspection, including
the reasonable administrative costs.  

ARTICLE 4. TRANSITION; EFFECTIVE DATE; EMERGENCY

SECTION 4.01. Makes application of Section 411.003, Labor Code, as amended
by this Act, prospective.  

SECTION 4.02. Makes application of Section 411.064, Labor Code, as amended
by this Act, prospective.  

SECTION 4.03. Effective date: September 1, 1999.

SECTION 4.04. Emergency clause.