76R10340 JMM-F
By Giddings H.B. No. 2511
Substitute the following for H.B. No. 2511:
By Giddings C.S.H.B. No. 2511
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the reporting and transmission of certain information
1-3 in connection with workers' compensation coverage.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 401, Labor Code, is amended
1-6 by adding Section 401.024 to read as follows:
1-7 Sec. 401.024. TRANSMISSION OF INFORMATION. (a) In this
1-8 section, "electronic transmission" means the transmission of
1-9 information by facsimile, electronic mail, electronic data
1-10 interchange, or any other similar method.
1-11 (b) Notwithstanding another provision of this subtitle that
1-12 specifies the form, manner, or procedure for the transmission of
1-13 specified information, the commission by rule may permit or require
1-14 the use of an electronic transmission instead of the specified
1-15 form, manner, or procedure. If the electronic transmission of
1-16 information is not authorized or permitted by commission rule, the
1-17 transmission of that information is governed by any applicable
1-18 statute or rule that prescribes the form, manner, or procedure for
1-19 the transmission, including standards adopted by the Department of
1-20 Information Resources.
1-21 (c) The commission may designate and contract with a data
1-22 collection agent to fulfill the data collection requirements of
1-23 this subtitle.
1-24 (d) The executive director may prescribe the form, manner,
2-1 and procedure for transmitting any authorized or required
2-2 electronic transmission, including requirements related to
2-3 security, confidentiality, accuracy, and accountability.
2-4 SECTION 2. Section 406.006, Labor Code, is amended to read
2-5 as follows:
2-6 Sec. 406.006. INSURANCE COVERAGE AND CLAIM ADMINISTRATION
2-7 REPORTING REQUIREMENTS [COMPANY NOTICE]; ADMINISTRATIVE VIOLATION.
2-8 (a) An insurance company from which an employer has obtained
2-9 workers' compensation insurance coverage, a certified self-insurer,
2-10 and a political subdivision shall file notice of the coverage and
2-11 claim administration contact information with the commission not
2-12 later than the 10th day after the date on which the coverage or
2-13 claim administration agreement takes effect, unless the commission
2-14 adopts a rule establishing a later date for filing. Coverage takes
2-15 effect on the date on which a binder is issued, [or at] a later
2-16 date and time agreed to by the parties, on the date provided by the
2-17 certificate of self-insurance, or on the date provided in an
2-18 interlocal agreement that provides for self-insurance. The
2-19 commission may adopt rules that establish the coverage and claim
2-20 administration contact information required under this subsection.
2-21 (b) The notice required under this section shall be filed
2-22 with the commission in accordance with Section 406.009.
2-23 (c) An insurance company, certified self-insurer, or
2-24 political subdivision commits a violation if the person [company]
2-25 fails to file notice with the commission as provided by this
2-26 section. A violation under this subsection is a Class C
2-27 administrative violation. Each day of noncompliance constitutes a
3-1 separate violation.
3-2 (d) In this section, "political subdivision" has the meaning
3-3 assigned by Section 504.001.
3-4 SECTION 3. Section 406.009, Labor Code, is amended by adding
3-5 Subsections (c), (d), and (e) to read as follows:
3-6 (c) The commission may designate a data collection agent,
3-7 implement an electronic reporting and public information access
3-8 program, and adopt rules as necessary to implement the data
3-9 collection requirements of this subchapter. The executive director
3-10 may establish the form, manner, and procedure for the transmission
3-11 of information to the commission as authorized by Section
3-12 402.042(b)(11).
3-13 (d) The commission may require an employer or insurance
3-14 carrier subject to this subtitle to identify or confirm an
3-15 employer's coverage status and claim administration contact
3-16 information as necessary to achieve the purposes of this subtitle.
3-17 (e) An employer or insurance carrier commits a violation if
3-18 that person fails to comply with Subsection (d). A violation under
3-19 this subsection is a Class C administrative violation.
3-20 SECTION 4. Section 406.051(c), Labor Code, is amended to
3-21 read as follows:
3-22 (c) The employer may not transfer:
3-23 (1) the obligation to accept a report of injury under
3-24 Section 409.001;
3-25 (2) the obligation to maintain records of injuries
3-26 under Section 409.006;
3-27 (3) the obligation to report injuries to the insurance
4-1 carrier [commission] under Section 409.005;
4-2 (4) liability for a violation of Section 415.006 or
4-3 415.008 or of Chapter 451; or
4-4 (5) the obligation to comply with a commission order.
4-5 SECTION 5. Section 408.003(e), Labor Code, is amended to
4-6 read as follows:
4-7 (e) If an employer does not notify the insurance carrier
4-8 [commission] of the injury in compliance with Section 409.005, the
4-9 employer waives the right to reimbursement under this section.
4-10 SECTION 6. Section 504.002(a), Labor Code, is amended to
4-11 read as follows:
4-12 (a) The following provisions of Subtitles A and B apply to
4-13 and are included in this chapter except to the extent that they are
4-14 inconsistent with this chapter:
4-15 (1) Chapter 401, other than Section 401.011(18)
4-16 defining "employer" and Section 401.012 defining "employee";
4-17 (2) Chapter 402;
4-18 (3) Chapter 403, other than Sections 403.001-403.005;
4-19 (4) Sections 406.006-406.009 and [Chapter 405;]
4-20 [(5)] Subchapters B and D-G, Chapter 406, other than
4-21 Sections 406.033, 406.034, 406.035, 406.091, and 406.096;
4-22 (5) [(6)] Chapter 408, other than Sections 408.001(b)
4-23 and (c);
4-24 (6) [(7)] Chapters 409-417; and
4-25 (7) [(8)] Chapter 451.
4-26 SECTION 7. (a) This Act takes effect September 1, 1999,
4-27 except as provided by Subsection (c) of this section.
5-1 (b) The executive director of the Texas Workers'
5-2 Compensation Commission shall develop and publish, not later than
5-3 October 1, 2000, a plan to incorporate electronic reporting of
5-4 information and financial exchanges between the parties in the
5-5 workers' compensation system. The plan must describe options for
5-6 the public to access nonconfidential statistical and reference
5-7 information, including medical billing and payment information,
5-8 reports, and funds transfer transactions, employer coverage and
5-9 insurance carrier claim administration contact information, and
5-10 other public access information and transaction information that is
5-11 feasible for electronic access. The executive director shall
5-12 appoint a task force consisting of knowledgeable workers'
5-13 compensation system participants, including the Texas Health Care
5-14 Information Council, and shall hold public hearings and conduct
5-15 studies necessary to develop a comprehensive electronic information
5-16 exchange plan that includes dates for conversion of specific
5-17 workers' compensation information to electronic exchange. The plan
5-18 developed under this subsection shall be designed to achieve a 30
5-19 percent reduction in paper communication requirements not later
5-20 than January 1, 2002, and an additional 30 percent reduction from
5-21 the paper communication requirements in effect on the effective
5-22 date of this Act not later than January 1, 2003.
5-23 (c) The change in law made by this Act to Section 406.006,
5-24 Labor Code, with regard to a certified self-insurer and political
5-25 subdivision not required to file notice of coverage before the
5-26 effective date of this Act, takes effect January 1, 2000.
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.