1-1     By:  Hochberg, Giddings (Senate Sponsor - Duncan)      H.B. No. 729
 1-2           (In the Senate - Received from the House April 22, 1999;
 1-3     April 26, 1999, read first time and referred to Committee on
 1-4     Economic Development; May 14, 1999, reported favorably by the
 1-5     following vote:  Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to certain requirements for an insurance carrier that
 1-9     pays workers' compensation benefits.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter B, Chapter 409, Labor Code, is amended
1-12     by adding Sections 409.0231 and 409.0232 to read as follows:
1-13           Sec. 409.0231.  PAYMENT BY ELECTRONIC FUNDS TRANSFER.  (a)
1-14     An insurance carrier shall offer employees entitled to the payment
1-15     of benefits for a period of sufficient duration the option of
1-16     receiving the payments by electronic funds transfer.  The insurance
1-17     carrier shall provide the necessary forms to an employee who
1-18     requests that benefits be paid by electronic funds transfer.
1-19           (b)  The commission shall adopt rules in consultation with
1-20     the Texas Department of Information Resources as necessary to
1-21     implement this section, including rules prescribing a period of
1-22     benefits that is of sufficient duration to allow payment by
1-23     electronic funds transfer.
1-24           Sec. 409.0232.  TIMELINESS OF PAYMENTS.  An insurance carrier
1-25     is considered to have paid benefits in a timely manner if a
1-26     payment:
1-27                 (1)  is made by electronic funds transfer and is
1-28     deposited in the employee's account on or before the benefit
1-29     payment due date;
1-30                 (2)  is made by mail and is mailed in time for the
1-31     payment to be postmarked on or before the benefit payment due date;
1-32     or
1-33                 (3)  is to be picked up by the employee and the payment
1-34     is made available to the employee during regular business hours not
1-35     later than the opening of business on the benefit payment due date.
1-36           SECTION 2.  (a)  This Act  takes effect September 1, 1999,
1-37     except that Section 409.0232, Labor Code, as added by this Act,
1-38     takes effect immediately.
1-39           (b)  Section 409.0231, Labor Code, as added by this Act,
1-40     applies only to workers' compensation benefits that become due on
1-41     or after September 1, 2000.  Workers' compensation benefits that
1-42     become due before that date are governed by the law in effect on
1-43     the date the benefits become due, and the former law is continued
1-44     in effect for that purpose.
1-45           (c)  The Texas Workers' Compensation Commission shall adopt
1-46     rules under Section 409.0231, Labor Code, as added by this Act, not
1-47     later than December 1, 1999.
1-48           SECTION 3.  The importance of this legislation and the
1-49     crowded condition of the calendars in both houses create an
1-50     emergency and an imperative public necessity that the
1-51     constitutional rule requiring bills to be read on three several
1-52     days in each house be suspended, and this rule is hereby suspended,
1-53     and that this Act take effect and be in force according to its
1-54     terms, and it is so enacted.
1-55                                  * * * * *