76R10658 PB-F                           
         By George, Dukes                                      H.B. No. 2508
         Substitute the following for H.B. No. 2508:
         By George                                         C.S.H.B. No. 2508
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the determination and payment of certain workers'
 1-3     compensation benefits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 408.081, Labor Code, is amended to read
 1-6     as  follows:
 1-7           Sec. 408.081.  INCOME BENEFITS.  (a)  An employee is entitled
 1-8     to income benefits as provided in this chapter.
 1-9           (b)  Except as otherwise provided by this section or this
1-10     subtitle, income benefits and interest on accrued but unpaid income
1-11     benefits shall be paid weekly as  and when they accrue without
1-12     order from the commission.
1-13           (c)  The commission by rule shall establish requirements for
1-14     agreements under which income benefits may be paid monthly.  Income
1-15     benefits may be  paid monthly only on the mutual agreement of the
1-16     employee and the insurance carrier and in compliance with the
1-17     requirements adopted by the commission.
1-18           (d)  An employee's entitlement to income benefits under this
1-19     chapter terminates on the death of the employee.  An interest in
1-20     future income benefits does not survive after the employee's death.
1-21           SECTION 2.  Section 408.103, Labor Code, is amended by
1-22     amending Subsections (a), (b), and (d) and adding Subsection (f) to
1-23     read as follows:
1-24           (a)  Except as otherwise provided by this section, the amount
 2-1     of temporary income benefits is subject [Subject] to Sections
 2-2     408.061 and  408.062.  The[, the] amount of a temporary income
 2-3     benefit is equal to:
 2-4                 (1)  70 percent of the amount computed by subtracting
 2-5     the employee's weekly earnings after the injury from the employee's
 2-6     average weekly wage; or
 2-7                 (2)  for the first 26 weeks, 75 percent of the amount
 2-8     computed by subtracting the employee's weekly earnings after the
 2-9     injury from the employee's average weekly wage if the employee
2-10     earns less than $8.50 an hour.
2-11           (b)  A temporary income benefit under Subsection (a)(2) may
2-12     not exceed the employee's actual earnings for the previous year.
2-13     It is presumed that the employee's actual earnings for the previous
2-14     year are equal to:
2-15                 (1)  the sum of the employee's wages as reported in the
2-16     most recent four quarterly wage reports to the Texas Workforce
2-17     [Employment] Commission divided by 52;
2-18                 (2)  the employee's wages in the single quarter of the
2-19     most recent four quarters in which the employee's earnings were
2-20     highest, divided by 13, if the commission finds that the employee's
2-21     most recent four quarters' earnings reported in the Texas Workforce
2-22     [Employment] Commission wage reports are not representative of the
2-23     employee's usual earnings; or
2-24                 (3)  the amount the commission determines from other
2-25     credible evidence to be the actual earnings for the previous year
2-26     if the Texas Workforce [Employment] Commission does not have a wage
2-27     report reflecting at least one quarter's earnings because the
 3-1     employee worked outside the state during the previous year.
 3-2           (d)  The Texas Workforce [Employment] Commission shall
 3-3     provide information required under this section in the manner most
 3-4     efficient for transferring the information.
 3-5           (f)  If an employee has returned to work at a reduced wage,
 3-6     the amount of the temporary income benefit is computed as specified
 3-7     by Subsection (a), but the minimum weekly income benefit
 3-8     established under Section 408.062 does not apply.
 3-9           SECTION 3.  Section 408.124, Labor Code, is amended by
3-10     amending Subsection (b) and adding Subsection (c) to read as
3-11     follows:
3-12           (b)  For [The commission shall use for] determining the
3-13     existence and degree of an employee's impairment, the commission
3-14     shall use "Guides to the Evaluation of Permanent Impairment,"
3-15     fourth [third] edition, [second printing, dated February 1989,]
3-16     published by the  American Medical Association.  For determining
3-17     the existence and degree of an employee's impairment relating to a
3-18     back injury, the commission shall use the range of motion model
3-19     contained in that publication.
3-20           (c)  Notwithstanding Subsection (b), the commission by rule
3-21     may adopt a later edition of the "Guides to the Evaluation of
3-22     Permanent Impairment" or its successor publication as published by
3-23     the American Medical Association or another analogous publication
3-24     published by a nationally recognized medical organization as
3-25     necessary to appropriately determine the existence and degree of an
3-26     employee's impairment for purposes of this title.
3-27           SECTION 4.  Section 408.161, Labor Code, is amended by adding
 4-1     Subsection (d) to read as follows:
 4-2           (d)  An insurance carrier may pay lifetime income benefits
 4-3     through an annuity if the annuity agreement meets the terms and
 4-4     conditions for annuity agreements adopted by the commission by
 4-5     rule.  The establishment of an annuity under this subsection does
 4-6     not relieve the insurance carrier of the liability under this title
 4-7     for ensuring that the lifetime income benefits are paid.
 4-8           SECTION 5.  Section 408.181, Labor Code, is amended by adding
 4-9     Subsections (c) and (d) to read as follows:
4-10           (c)  The commission by rule shall establish requirements for
4-11     agreements under which death benefits may be paid monthly.  Death
4-12     benefits may be paid monthly only on the mutual agreement of the
4-13     legal beneficiary and the insurance carrier and in compliance with
4-14     the requirements adopted by the commission.
4-15           (d)  An insurance carrier may pay death benefits through an
4-16     annuity if the annuity agreement meets the terms and conditions for
4-17     annuity agreements adopted by the commission by rule.  The
4-18     establishment of an annuity under this subsection does not relieve
4-19     the insurance carrier of the liability under this title for
4-20     ensuring that the death benefits are paid.
4-21           SECTION 6.  Section 408.186(a), Labor Code, is amended to
4-22     read as follows:
4-23           (a)  If the death of an employee results from a compensable
4-24     injury, the insurance carrier shall pay to the person who incurred
4-25     liability for the costs of burial the lesser of:
4-26                 (1)  the actual costs incurred for reasonable burial
4-27     expenses; or
 5-1                 (2)  $6,000 [$2,500].
 5-2           SECTION 7.  (a)  This Act takes effect September 1, 1999, and
 5-3     applies only to an agreement regarding payment of workers'
 5-4     compensation income benefits or death benefits that is entered into
 5-5     on or after that date.
 5-6           (b)  Section 408.103, Labor Code, as amended by this Act,
 5-7     applies only to a claim for workers' compensation temporary income
 5-8     benefits based on a compensable injury that occurs on or after the
 5-9     effective date of this Act.  A claim based on a compensable injury
5-10     that occurs before that date is governed by the law in effect on
5-11     the date that the compensable injury occurred, and the former law
5-12     is continued in effect for that purpose.
5-13           (c)  Section 408.124, Labor Code, as amended by this Act,
5-14     applies only to determination of an impairment rating for workers'
5-15     compensation benefits under Subchapter G, Chapter 408, Labor Code,
5-16     on or after January 1, 2000.  The determination of an impairment
5-17     rating before that date is governed by the law in effect
5-18     immediately before the effective date of this Act, and the former
5-19     law is continued in effect for that purpose.
5-20           (d)  Section 408.186(a), Labor Code, as amended by this Act,
5-21     applies only to a claim for workers' compensation burial benefits
5-22     based on a compensable injury that occurs on or after the effective
5-23     date of this Act.  A claim based on a compensable injury that
5-24     occurs before that date is governed by the law in effect on the
5-25     date that the compensable injury occurred, and the former law is
5-26     continued in effect for that purpose.
5-27           SECTION 8.  The importance of this legislation and the
 6-1     crowded condition of the calendars in both houses create an
 6-2     emergency and an imperative public necessity that the
 6-3     constitutional rule requiring bills to be read on three several
 6-4     days in each house be suspended, and this rule is hereby suspended.