76R10103 JMM-F                           
         By Hochberg, Giddings                                  H.B. No. 729
         Substitute the following for H.B. No. 729:
         By Hochberg                                        C.S.H.B. No. 729
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain requirements for an insurance carrier that
 1-3     pays workers' compensation benefits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 409, Labor Code, is amended
 1-6     by adding Sections 409.0231 and 409.0232 to read as follows:
 1-7           Sec. 409.0231.  PAYMENT BY ELECTRONIC FUNDS TRANSFER.  (a)
 1-8     An insurance carrier shall offer employees entitled to the payment
 1-9     of benefits for a period of sufficient duration the option of
1-10     receiving the payments by electronic funds transfer.  The insurance
1-11     carrier shall provide the necessary forms to an employee who
1-12     requests that benefits be paid by electronic funds transfer.
1-13           (b)  The commission shall adopt rules in consultation with
1-14     the Texas Department of Information Resources as necessary to
1-15     implement this section, including rules prescribing a period of
1-16     benefits that is of sufficient duration to allow payment by
1-17     electronic funds transfer.
1-18           Sec. 409.0232.  TIMELINESS OF PAYMENTS.  An insurance carrier
1-19     is considered to have paid benefits in a timely manner if a
1-20     payment:
1-21                 (1)  is made by electronic funds transfer and is
1-22     deposited in the employee's account on or before the benefit
1-23     payment due date;
1-24                 (2)  is made by mail and is mailed in time for the
 2-1     payment to be postmarked on or before the benefit payment due date;
 2-2     or
 2-3                 (3)  is to be picked up by the employee and the payment
 2-4     is made available to the employee during regular business hours not
 2-5     later than the opening of business on the benefit payment due date.
 2-6           SECTION 2.  (a)  This Act  takes effect September 1, 1999,
 2-7     except that Section 409.0232, Labor Code, as added by this Act,
 2-8     takes effect immediately.
 2-9           (b)  Section 409.0231, Labor Code, as added by this Act,
2-10     applies only to workers' compensation benefits that become due on
2-11     or after September 1, 2000.  Workers' compensation benefits that
2-12     become due before that date are governed by the law in effect on
2-13     the date the benefits become due, and the former law is continued
2-14     in effect for that purpose.
2-15           (c)  The Texas Workers' Compensation Commission shall adopt
2-16     rules under Section 409.0231, Labor Code, as added by this Act, not
2-17     later than December 1, 1999.
2-18           SECTION 3.  The importance of this legislation and the
2-19     crowded condition of the calendars in both houses create an
2-20     emergency and an imperative public necessity that the
2-21     constitutional rule requiring bills to be read on three several
2-22     days in each house be suspended, and this rule is hereby suspended,
2-23     and that this Act take effect and be in force according to its
2-24     terms, and it is so enacted.