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.