By Dukes H.B. No. 2509
76R8824 CMR-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of the workers' compensation system
1-3 for state employees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 412.042, Labor Code, is amended by
1-6 amending Subsection (b) and adding Subsection (d) to read as
1-7 follows:
1-8 (b) The report required under this section shall be dated
1-9 January 1 of the year in which the regular session is held and must
1-10 include:
1-11 (1) [a list of all persons who have received benefits
1-12 under Chapter 501, the nature and cause of each injury, and the
1-13 amounts paid weekly in income benefits and for medical, hospital,
1-14 and other services;]
1-15 [(2)] a summary of administrative expenses;
1-16 (2) [(3)] a statement:
1-17 (A) showing the amount of the money appropriated
1-18 by the preceding legislature that remains unexpended on the date of
1-19 the report; and
1-20 (B) estimating the amount of that balance
1-21 necessary to administer Chapter 501 for the remainder of that
1-22 fiscal year; and
1-23 (C) an estimate, based on experience factors, of
1-24 the amount of money that will be required to administer Chapter 501
2-1 and pay for the compensation and services provided under Chapter
2-2 501 during the next succeeding biennium.
2-3 (d) The director shall maintain, and make available to the
2-4 legislature on request, a list of all persons who have received
2-5 benefits under Chapter 501, the nature and cause of each
2-6 compensable injury, and the amounts paid weekly in income benefits
2-7 and for medical services, hospital services, and other services.
2-8 SECTION 2. Section 501.044, Labor Code, is amended to read
2-9 as follows:
2-10 Sec. 501.044. EFFECT OF SICK LEAVE; ANNUAL LEAVE. (a) An
2-11 employee may elect to use accrued sick leave before receiving
2-12 income benefits. If an employee elects to use sick leave, the
2-13 employee is not entitled to income benefits under this chapter
2-14 until the employee has exhausted the employee's accrued sick leave.
2-15 (b) An employee may elect to use all or any number of weeks
2-16 of accrued annual leave after the employee's accrued sick leave is
2-17 exhausted. If an employee elects to use annual leave, the employee
2-18 is not entitled to income benefits under this chapter until the
2-19 elected number of weeks of leave have been exhausted.
2-20 SECTION 3. Subchapter C, Chapter 501, Labor Code, is amended
2-21 by adding Section 501.051 to read as follows:
2-22 Sec. 501.051. PAYMENT OF MEDICAL AND INDEMNITY BENEFITS.
2-23 Medical benefit and income benefit payments made by the office are
2-24 subject to this subtitle and are exempt from Chapter 2251,
2-25 Government Code.
2-26 SECTION 4. Section 412.012(c), Labor Code, is amended to
2-27 read as follows:
3-1 (c) [State Self-Insuring: Allocation Program for Financing
3-2 of State Workers' Compensation Benefits. (1)] The state is
3-3 self-insuring with respect to an employee's compensable injury.
3-4 The legislature shall appropriate the amount designated by the
3-5 appropriation structure for the payment of state workers'
3-6 compensation claims costs to the office. This section does not
3-7 affect the reimbursement of claims costs by funds other than
3-8 general revenue funds, as provided by the General Appropriations
3-9 Act.
3-10 [(2) The office shall establish an allocation program
3-11 for the payment of workers' compensation claims paid from the
3-12 general revenue that are incurred by state agencies subject to
3-13 Chapter 501. The money appropriated by the legislature for
3-14 workers' compensation for state employees shall be allocated under
3-15 that program as provided herein.]
3-16 [(3) Based on the information reported to the office
3-17 under Sections 412.032 and 501.048, at the beginning of each state
3-18 fiscal biennium the office shall determine which state agencies
3-19 accounted for 90 percent of the state's general revenue claims for
3-20 workers' compensation claims costs for the preceding state fiscal
3-21 biennium. Those state agencies are required to participate in the
3-22 allocation program for the next state fiscal biennium. The office
3-23 shall establish a formula for allocating the state's workers'
3-24 compensation costs among those agencies, based on the claims
3-25 experience of the agencies, any anticipated changes in agencies'
3-26 workforces, and the related costs incurred by administering the
3-27 claims.]
4-1 [(4) A state agency that is required to participate in
4-2 the allocation program shall be rewarded or penalized for its
4-3 actual performance against expected workers' compensation losses as
4-4 provided by Subsection (c).]
4-5 [(5) The office shall receive the amount appropriated
4-6 for workers' compensation claims. The office shall:]
4-7 [(A) monitor workers' compensation expenses
4-8 incurred by each state agency required to participate in the
4-9 allocation program; and]
4-10 [(B) compare and report to each of those
4-11 agencies the difference between the allocated amount and the
4-12 agency's actual expenses for workers' compensation.]
4-13 [(6) If, based on the comparison performed under
4-14 Subdivision (5)(B), the office determines that an agency's
4-15 performance resulted in workers' compensation claims costs that
4-16 were higher than the amount allocated to that agency, the agency is
4-17 not entitled to additional state funds for those costs beyond the
4-18 initial allocation and shall pay the additional costs from the
4-19 agency's regular appropriated funds as listed in the General
4-20 Appropriations Act. For the first biennium that the allocation
4-21 program is in effect, an agency whose workers' compensation claim
4-22 costs exceed the amount allocated shall pay the additional costs
4-23 from the agency's regular appropriated funds up to an amount equal
4-24 to 50 percent of the total amount allocated to the agency. After
4-25 the first biennium, the agency shall reimburse the office for the
4-26 additional costs through interagency contracts, from the agency's
4-27 regular appropriated funds.]
5-1 [(7) If, based on the comparison performed under
5-2 Subdivision (5)(B), the office determines that an agency's
5-3 performance resulted in workers' compensation claims costs that
5-4 were lower than the amount allocated to that agency, the agency is
5-5 entitled to retain a portion of the savings. The office shall
5-6 determine the amount of the savings that the agency may retain.]
5-7 [(8) A state agency that is determined by the office
5-8 to be exempt from participation in the allocation program shall
5-9 receive full coverage for workers' compensation costs incurred by
5-10 that agency from the office.]
5-11 SECTION 5. (a) This Act takes effect September 1, 1999.
5-12 (b) Section 501.044, Labor Code, as amended by this Act,
5-13 applies only to a claim for workers' compensation benefits based on
5-14 a compensable injury that occurs on or after the effective date of
5-15 this Act. A claim based on a compensable injury that occurs before
5-16 that date is governed by the law in effect on the date that the
5-17 compensable injury occurred, and the former law is continued in
5-18 effect for that purpose.
5-19 (c) Section 501.051, Labor Code, as added by this Act,
5-20 applies only to a medical or income benefit payment that is made on
5-21 or after the effective date of this Act. A payment that is made
5-22 before that date is governed by the law in effect on the date the
5-23 payment is made, and the former law is continued in effect for that
5-24 purpose.
5-25 SECTION 6. The importance of this legislation and the
5-26 crowded condition of the calendars in both houses create an
5-27 emergency and an imperative public necessity that the
6-1 constitutional rule requiring bills to be read on three several
6-2 days in each house be suspended, and this rule is hereby suspended.