1-1 By: Dukes (Senate Sponsor - Shapleigh) H.B. No. 2509
1-2 (In the Senate - Received from the House April 23, 1999;
1-3 April 26, 1999, read first time and referred to Committee on State
1-4 Affairs; May 12, 1999, reported favorably by the following vote:
1-5 Yeas 7, Nays 0; May 12, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the administration of the workers' compensation system
1-9 for state employees.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 412.042, Labor Code, is amended by
1-12 amending Subsection (b) and adding Subsection (d) to read as
1-13 follows:
1-14 (b) The report required under this section shall be dated
1-15 January 1 of the year in which the regular session is held and must
1-16 include:
1-17 (1) [a list of all persons who have received benefits
1-18 under Chapter 501, the nature and cause of each injury, and the
1-19 amounts paid weekly in income benefits and for medical, hospital,
1-20 and other services;]
1-21 [(2)] a summary of administrative expenses;
1-22 (2) [(3)] a statement:
1-23 (A) showing the amount of the money appropriated
1-24 by the preceding legislature that remains unexpended on the date of
1-25 the report; and
1-26 (B) estimating the amount of that balance
1-27 necessary to administer Chapter 501 for the remainder of that
1-28 fiscal year; and
1-29 (C) an estimate, based on experience factors, of
1-30 the amount of money that will be required to administer Chapter 501
1-31 and pay for the compensation and services provided under Chapter
1-32 501 during the next succeeding biennium.
1-33 (d) The director shall maintain, and make available to the
1-34 legislature on request, a list of all persons who have received
1-35 benefits under Chapter 501, the nature and cause of each
1-36 compensable injury, and the amounts paid weekly in income benefits
1-37 and for medical services, hospital services, and other services.
1-38 SECTION 2. Section 501.044, Labor Code, is amended to read
1-39 as follows:
1-40 Sec. 501.044. EFFECT OF SICK LEAVE; ANNUAL LEAVE. (a) An
1-41 employee may elect to use accrued sick leave before receiving
1-42 income benefits. If an employee elects to use sick leave, the
1-43 employee is not entitled to income benefits under this chapter
1-44 until the employee has exhausted the employee's accrued sick leave.
1-45 (b) An employee may elect to use all or any number of weeks
1-46 of accrued annual leave after the employee's accrued sick leave is
1-47 exhausted. If an employee elects to use annual leave, the employee
1-48 is not entitled to income benefits under this chapter until the
1-49 elected number of weeks of leave have been exhausted.
1-50 SECTION 3. Subchapter C, Chapter 501, Labor Code, is amended
1-51 by adding Section 501.051 to read as follows:
1-52 Sec. 501.051. PAYMENT OF MEDICAL AND INDEMNITY BENEFITS.
1-53 Medical benefit and income benefit payments made by the office are
1-54 subject to this subtitle and are exempt from Chapter 2251,
1-55 Government Code.
1-56 SECTION 4. Section 412.012(c), Labor Code, is amended to
1-57 read as follows:
1-58 (c) [State Self-Insuring: Allocation Program for Financing
1-59 of State Workers' Compensation Benefits. (1)] The state is
1-60 self-insuring with respect to an employee's compensable injury.
1-61 The legislature shall appropriate the amount designated by the
1-62 appropriation structure for the payment of state workers'
1-63 compensation claims costs to the office. This section does not
1-64 affect the reimbursement of claims costs by funds other than
2-1 general revenue funds, as provided by the General Appropriations
2-2 Act.
2-3 [(2) The office shall establish an allocation program
2-4 for the payment of workers' compensation claims paid from the
2-5 general revenue that are incurred by state agencies subject to
2-6 Chapter 501. The money appropriated by the legislature for
2-7 workers' compensation for state employees shall be allocated under
2-8 that program as provided herein.]
2-9 [(3) Based on the information reported to the office
2-10 under Sections 412.032 and 501.048, at the beginning of each state
2-11 fiscal biennium the office shall determine which state agencies
2-12 accounted for 90 percent of the state's general revenue claims for
2-13 workers' compensation claims costs for the preceding state fiscal
2-14 biennium. Those state agencies are required to participate in the
2-15 allocation program for the next state fiscal biennium. The office
2-16 shall establish a formula for allocating the state's workers'
2-17 compensation costs among those agencies, based on the claims
2-18 experience of the agencies, any anticipated changes in agencies'
2-19 workforces, and the related costs incurred by administering the
2-20 claims.]
2-21 [(4) A state agency that is required to participate in
2-22 the allocation program shall be rewarded or penalized for its
2-23 actual performance against expected workers' compensation losses as
2-24 provided by Subsection (c).]
2-25 [(5) The office shall receive the amount appropriated
2-26 for workers' compensation claims. The office shall:]
2-27 [(A) monitor workers' compensation expenses
2-28 incurred by each state agency required to participate in the
2-29 allocation program; and]
2-30 [(B) compare and report to each of those
2-31 agencies the difference between the allocated amount and the
2-32 agency's actual expenses for workers' compensation.]
2-33 [(6) If, based on the comparison performed under
2-34 Subdivision (5)(B), the office determines that an agency's
2-35 performance resulted in workers' compensation claims costs that
2-36 were higher than the amount allocated to that agency, the agency is
2-37 not entitled to additional state funds for those costs beyond the
2-38 initial allocation and shall pay the additional costs from the
2-39 agency's regular appropriated funds as listed in the General
2-40 Appropriations Act. For the first biennium that the allocation
2-41 program is in effect, an agency whose workers' compensation claim
2-42 costs exceed the amount allocated shall pay the additional costs
2-43 from the agency's regular appropriated funds up to an amount equal
2-44 to 50 percent of the total amount allocated to the agency. After
2-45 the first biennium, the agency shall reimburse the office for the
2-46 additional costs through interagency contracts, from the agency's
2-47 regular appropriated funds.]
2-48 [(7) If, based on the comparison performed under
2-49 Subdivision (5)(B), the office determines that an agency's
2-50 performance resulted in workers' compensation claims costs that
2-51 were lower than the amount allocated to that agency, the agency is
2-52 entitled to retain a portion of the savings. The office shall
2-53 determine the amount of the savings that the agency may retain.]
2-54 [(8) A state agency that is determined by the office
2-55 to be exempt from participation in the allocation program shall
2-56 receive full coverage for workers' compensation costs incurred by
2-57 that agency from the office.]
2-58 SECTION 5. (a) This Act takes effect September 1, 1999.
2-59 (b) Section 501.044, Labor Code, as amended by this Act,
2-60 applies only to a claim for workers' compensation benefits based on
2-61 a compensable injury that occurs on or after the effective date of
2-62 this Act. A claim based on a compensable injury that occurs before
2-63 that date is governed by the law in effect on the date that the
2-64 compensable injury occurred, and the former law is continued in
2-65 effect for that purpose.
2-66 (c) Section 501.051, Labor Code, as added by this Act,
2-67 applies only to a medical or income benefit payment that is made on
2-68 or after the effective date of this Act. A payment that is made
2-69 before that date is governed by the law in effect on the date the
3-1 payment is made, and the former law is continued in effect for that
3-2 purpose.
3-3 SECTION 6. The importance of this legislation and the
3-4 crowded condition of the calendars in both houses create an
3-5 emergency and an imperative public necessity that the
3-6 constitutional rule requiring bills to be read on three several
3-7 days in each house be suspended, and this rule is hereby suspended.
3-8 * * * * *