By Hochberg                                            H.B. No. 729
         76R3245 JMM-F                           
                                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 necessary to implement
1-14     this section, including rules prescribing a period of benefits that
1-15     is of sufficient duration to allow payment by electronic funds
1-16     transfer.
1-17           Sec. 409.0232.  TIMELINESS OF PAYMENTS.  An insurance carrier
1-18     is considered to have paid benefits in a timely manner if a
1-19     payment:
1-20                 (1)  is made by electronic funds transfer and is
1-21     deposited in the employee's account on or before the benefit
1-22     payment due date;
1-23                 (2)  is made by mail and is mailed in time for the
1-24     payment to be postmarked on or before the benefit payment due date;
 2-1     or
 2-2                 (3)  is to be picked up by the employee and the payment
 2-3     is made available to the employee during regular business hours not
 2-4     later than the opening of business on the benefit payment due date.
 2-5           SECTION 2.  (a)  This Act  takes effect September 1, 1999.
 2-6           (b)  The change in law made by this Act applies only to
 2-7     workers' compensation benefits that become due on or after January
 2-8     1, 2000.  Workers' compensation benefits that become due before
 2-9     that date are governed by the law in effect on the date the
2-10     benefits become due, and the former law is continued in effect for
2-11     that purpose.
2-12           (c)  The Texas Workers' Compensation Commission shall adopt
2-13     rules under Section 409.0231, Labor Code, as added by this Act, not
2-14     later than December 1, 1999.
2-15           SECTION 3.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     days in each house be suspended, and this rule is hereby suspended.