By Dukes H.B. No. 2510
76R10134 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration and operation of the workers'
1-3 compensation program of this state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 401.023(b), Labor Code, is amended to
1-6 read as follows:
1-7 (b) The commission shall compute and publish the interest
1-8 and discount rate quarterly, using the auction rate quoted on a
1-9 discount basis for the 52-week treasury bills issued by the United
1-10 States government, as published by the Federal Reserve Board on the
1-11 date nearest to the 15th day preceding the first day of the
1-12 calendar quarter for which the rate is to be effective, plus seven
1-13 percent. For this purpose, calendar quarters begin January 1, April
1-14 1, July 1, and October 1.
1-15 SECTION 2. Sections 402.011(b) and (c), Labor Code, are
1-16 amended to read as follows:
1-17 (b) A member is entitled to reimbursement for actual lost
1-18 wages or use of leave benefits, if any, for:
1-19 (1) attendance at commission meetings and hearings[,
1-20 not to exceed one day in each calendar quarter];
1-21 (2) preparation for a commission meeting, not to
1-22 exceed two days in each calendar quarter;
1-23 (3) attendance at a subcommittee meeting, not to
1-24 exceed one day each month;
2-1 (4) attendance by the chair or vice chair of the
2-2 commission at a legislative committee meeting if attendance is
2-3 requested by the committee chair; and
2-4 (5) attendance at a meeting by a member appointed to
2-5 the Research and Oversight Council on Workers' Compensation or the
2-6 Texas Certified Self-Insured Guaranty [Guarantee] Association.
2-7 (c) Reimbursement under Subsection (b) may not exceed $100 a
2-8 day and $5,000 [$12,000] a year.
2-9 SECTION 3. Section 402.085(a), Labor Code, is amended to
2-10 read as follows:
2-11 (a) The commission shall release information on a claim to:
2-12 (1) the Texas Department of Insurance for any
2-13 statutory or regulatory purpose;
2-14 (2) a legislative committee for legislative purposes;
2-15 (3) a state or federal elected official requested in
2-16 writing to provide assistance by a constituent who qualifies to
2-17 obtain injury information under Section 402.084(b), if the request
2-18 for assistance is provided to the commission;
2-19 (4) the Research and Oversight Council on Workers'
2-20 Compensation [research center] for research purposes; or
2-21 (5) the attorney general or another entity that
2-22 provides child support services under Part D, Title IV, Social
2-23 Security Act (42 U.S.C. Section 651 et seq.) [, or Chapter 76,
2-24 Human Resources Code,] relating to:
2-25 (A) establishing, modifying, or enforcing a
2-26 child support or medical support obligation; or
2-27 (B) locating an absent parent.
3-1 SECTION 4. Section 404.007(a), Labor Code, is amended to
3-2 read as follows:
3-3 (a) The board shall:
3-4 (1) approve the operating budget of the council;
3-5 (2) adopt rules for the operations of the board and
3-6 the council;
3-7 (3) conduct professional studies and research on all
3-8 matters relevant to the cost, quality, and operational
3-9 effectiveness of the workers' compensation system;
3-10 (4) monitor the cost of income benefits under this
3-11 subtitle, with emphasis on the availability and cost of
3-12 supplemental income benefits;
3-13 (5) monitor the performance and operation of the Texas
3-14 Workers' Compensation Insurance Fund, with emphasis on the insurer
3-15 of last resort program;
3-16 (6) hold regular public hearings and receive testimony
3-17 and reports from:
3-18 (A) the commission;
3-19 (B) the Texas Workers' Compensation Insurance
3-20 Fund;
3-21 (C) [the Texas workers' compensation insurance
3-22 facility;]
3-23 [(D)] the Texas Department of Insurance;
3-24 (D) [(E)] the State Office of Risk Management
3-25 [office of the attorney general]; and
3-26 (E) [(F)] any other public or private entity
3-27 that is involved in the workers' compensation system;
4-1 (7) receive information about workers' compensation
4-2 rules and operations of an entity listed in Subdivision (6); and
4-3 (8) review specific recommendations for legislation
4-4 relating to the Texas Workers' Compensation Act formally proposed
4-5 by an entity listed in Subdivision (6).
4-6 SECTION 5. Section 404.010, Labor Code, is amended by
4-7 amending Subsection (a) and adding Subsection (d) to read as
4-8 follows:
4-9 (a) As required to fulfill the objectives of the council,
4-10 the council is entitled to access to the files and records of:
4-11 (1) the commission;
4-12 (2) the Texas Workforce [Employment] Commission;
4-13 (3) the Texas Department of Insurance;
4-14 (4) the Texas Department of Human Services;
4-15 (5) [the Texas workers' compensation insurance
4-16 facility;]
4-17 [(6)] the Texas Workers' Compensation Insurance Fund;
4-18 and
4-19 (6) [(7)] other state agencies.
4-20 (d) The identity of an individual or entity selected to
4-21 participate in a council survey or who participates in such a
4-22 survey is confidential and is not subject to public disclosure
4-23 under Chapter 552, Government Code.
4-24 SECTION 6. Section 408.025(d), Labor Code, is amended to
4-25 read as follows:
4-26 (d) On the request of an injured employee, the employee's
4-27 attorney, or the insurance carrier, a health care provider
5-1 [facility] shall furnish records relating to treatment or
5-2 hospitalization for which compensation is being sought. The
5-3 commission may regulate the charge for furnishing a report or
5-4 record, but the charge may not be less than the fair and reasonable
5-5 charge for furnishing the report or record. A health care provider
5-6 [facility] may disclose to the insurance carrier of an affected
5-7 employer records relating to the diagnosis or treatment of the
5-8 injured employee without the authorization of the injured employee
5-9 to determine the amount of payment or the entitlement to payment.
5-10 SECTION 7. Section 408.027(a), Labor Code, is amended to
5-11 read as follows:
5-12 (a) An insurance carrier shall pay the fee allowed under
5-13 Section 413.011 [charged] for a service rendered by a health care
5-14 provider not later than the 45th day after the date the insurance
5-15 carrier receives the charge unless the amount of the payment or the
5-16 entitlement to payment is disputed.
5-17 SECTION 8. Section 408.150(b), Labor Code, is amended to
5-18 read as follows:
5-19 (b) An employee who refuses services or refuses to cooperate
5-20 with services provided under this section loses entitlement to
5-21 supplemental [supplementary] income benefits.
5-22 SECTION 9. Section 413.005(b), Labor Code, is amended to
5-23 read as follows:
5-24 (b) The medical advisory committee is composed of members
5-25 appointed by the commission as follows:
5-26 (1) a representative of a public health care facility;
5-27 (2) a representative of a private health care
6-1 facility;
6-2 (3) a doctor of medicine;
6-3 (4) a doctor of osteopathic medicine;
6-4 (5) a chiropractor;
6-5 (6) a dentist;
6-6 (7) a physical therapist;
6-7 (8) a pharmacist;
6-8 (9) a podiatrist;
6-9 (10) an occupational therapist;
6-10 (11) a medical equipment supplier;
6-11 (12) a registered nurse;
6-12 (13) a representative of employers;
6-13 (14) a representative of employees; [and]
6-14 (15) a representative of an insurance carrier; and
6-15 (16) two representatives of the general public.
6-16 SECTION 10. Article 5.61, Insurance Code, is amended to read
6-17 as follows:
6-18 Art. 5.61. ADEQUATE RESERVES. (a) Each workers'
6-19 compensation insurer transacting business in this state shall
6-20 maintain reserves in an amount estimated in the aggregate to
6-21 provide for the payment of all losses and claims incurred, whether
6-22 reported or unreported, but not in an amount greater than
6-23 reasonably required for those purposes. The reserves shall be
6-24 computed in accordance with any rules adopted [approved] by the
6-25 commissioner [Board] for the purpose of adequately protecting the
6-26 insureds, securing the solvency of the insurer, and preventing
6-27 unreasonably large reserves.
7-1 (b) [Each workers' compensation insurer shall provide a
7-2 separate report to the Board showing its year-end loss, expense,
7-3 and unearned premium reserves for workers' compensation insurance
7-4 results in this state. The report must be filed not later than
7-5 June 30 of each year and must show the reserve development over a
7-6 period of years sufficiently long to allow the Board to determine
7-7 whether the reserves are adequate, inadequate, or unreasonably
7-8 large. The report shall be audited by an independent certified
7-9 public accountant in accordance with generally accepted auditing
7-10 standards and the rules of the Board. The reserve amounts reported
7-11 may be taken from an audited financial report prepared by an
7-12 independent auditor as prescribed by law.]
7-13 [(c)] If the reserves are determined to be inadequate, the
7-14 commissioner [Board] shall notify the insurer and require the
7-15 insurer to establish and maintain reasonable additional reserves.
7-16 If the reserves are determined to be unreasonably large, the
7-17 commissioner [Board] shall notify the insurer and require the
7-18 insurer to reduce its reserves to a reasonable amount.
7-19 (c) [(d)] Not later than the 60th day after the date of the
7-20 notification by the commissioner [Board] that its reserves have
7-21 been determined not to be in compliance with the requirements of
7-22 this article, the insurer shall restore compliance and file a
7-23 statement of restored compliance, together with such documentation
7-24 as the commissioner [Board] may require.
7-25 SECTION 11. (a) Except as provided by Subsection (b) of
7-26 this section, this Act takes effect September 1, 1999.
7-27 (b) Section 401.023(b), Labor Code, as amended by this Act,
8-1 takes effect October 1, 1999.
8-2 SECTION 12. The importance of this legislation and the
8-3 crowded condition of the calendars in both houses create an
8-4 emergency and an imperative public necessity that the
8-5 constitutional rule requiring bills to be read on three several
8-6 days in each house be suspended, and this rule is hereby suspended.