1-1 By: Giddings (Senate Sponsor - Armbrister) H.B. No. 2511
1-2 (In the Senate - Received from the House April 19, 1999;
1-3 April 20, 1999, read first time and referred to Committee on
1-4 Economic Development; May 14, 1999, reported favorably by the
1-5 following vote: Yeas 7, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the reporting and transmission of certain information
1-9 in connection with workers' compensation coverage.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subchapter C, Chapter 401, Labor Code, is amended
1-12 by adding Section 401.024 to read as follows:
1-13 Sec. 401.024. TRANSMISSION OF INFORMATION. (a) In this
1-14 section, "electronic transmission" means the transmission of
1-15 information by facsimile, electronic mail, electronic data
1-16 interchange, or any other similar method.
1-17 (b) Notwithstanding another provision of this subtitle that
1-18 specifies the form, manner, or procedure for the transmission of
1-19 specified information, the commission by rule may permit or require
1-20 the use of an electronic transmission instead of the specified
1-21 form, manner, or procedure. If the electronic transmission of
1-22 information is not authorized or permitted by commission rule, the
1-23 transmission of that information is governed by any applicable
1-24 statute or rule that prescribes the form, manner, or procedure for
1-25 the transmission, including standards adopted by the Department of
1-26 Information Resources.
1-27 (c) The commission may designate and contract with a data
1-28 collection agent to fulfill the data collection requirements of
1-29 this subtitle.
1-30 (d) The executive director may prescribe the form, manner,
1-31 and procedure for transmitting any authorized or required
1-32 electronic transmission, including requirements related to
1-33 security, confidentiality, accuracy, and accountability.
1-34 SECTION 2. Section 406.006, Labor Code, is amended to read
1-35 as follows:
1-36 Sec. 406.006. INSURANCE COVERAGE AND CLAIM ADMINISTRATION
1-37 REPORTING REQUIREMENTS [COMPANY NOTICE]; ADMINISTRATIVE VIOLATION.
1-38 (a) An insurance company from which an employer has obtained
1-39 workers' compensation insurance coverage, a certified self-insurer,
1-40 and a political subdivision shall file notice of the coverage and
1-41 claim administration contact information with the commission not
1-42 later than the 10th day after the date on which the coverage or
1-43 claim administration agreement takes effect, unless the commission
1-44 adopts a rule establishing a later date for filing. Coverage takes
1-45 effect on the date on which a binder is issued, [or at] a later
1-46 date and time agreed to by the parties, on the date provided by the
1-47 certificate of self-insurance, or on the date provided in an
1-48 interlocal agreement that provides for self-insurance. The
1-49 commission may adopt rules that establish the coverage and claim
1-50 administration contact information required under this subsection.
1-51 (b) The notice required under this section shall be filed
1-52 with the commission in accordance with Section 406.009.
1-53 (c) An insurance company, certified self-insurer, or
1-54 political subdivision commits a violation if the person [company]
1-55 fails to file notice with the commission as provided by this
1-56 section. A violation under this subsection is a Class C
1-57 administrative violation. Each day of noncompliance constitutes a
1-58 separate violation.
1-59 (d) In this section, "political subdivision" has the meaning
1-60 assigned by Section 504.001.
1-61 SECTION 3. Section 406.009, Labor Code, is amended by adding
1-62 Subsections (c), (d), and (e) to read as follows:
1-63 (c) The commission may designate a data collection agent,
1-64 implement an electronic reporting and public information access
2-1 program, and adopt rules as necessary to implement the data
2-2 collection requirements of this subchapter. The executive director
2-3 may establish the form, manner, and procedure for the transmission
2-4 of information to the commission as authorized by Section
2-5 402.042(b)(11).
2-6 (d) The commission may require an employer or insurance
2-7 carrier subject to this subtitle to identify or confirm an
2-8 employer's coverage status and claim administration contact
2-9 information as necessary to achieve the purposes of this subtitle.
2-10 (e) An employer or insurance carrier commits a violation if
2-11 that person fails to comply with Subsection (d). A violation under
2-12 this subsection is a Class C administrative violation.
2-13 SECTION 4. Section 406.051(c), Labor Code, is amended to
2-14 read as follows:
2-15 (c) The employer may not transfer:
2-16 (1) the obligation to accept a report of injury under
2-17 Section 409.001;
2-18 (2) the obligation to maintain records of injuries
2-19 under Section 409.006;
2-20 (3) the obligation to report injuries to the insurance
2-21 carrier [commission] under Section 409.005;
2-22 (4) liability for a violation of Section 415.006 or
2-23 415.008 or of Chapter 451; or
2-24 (5) the obligation to comply with a commission order.
2-25 SECTION 5. Section 408.003(e), Labor Code, is amended to
2-26 read as follows:
2-27 (e) If an employer does not notify the insurance carrier
2-28 [commission] of the injury in compliance with Section 409.005, the
2-29 employer waives the right to reimbursement under this section.
2-30 SECTION 6. Section 504.002(a), Labor Code, is amended to
2-31 read as follows:
2-32 (a) The following provisions of Subtitles A and B apply to
2-33 and are included in this chapter except to the extent that they are
2-34 inconsistent with this chapter:
2-35 (1) Chapter 401, other than Section 401.011(18)
2-36 defining "employer" and Section 401.012 defining "employee";
2-37 (2) Chapter 402;
2-38 (3) Chapter 403, other than Sections 403.001-403.005;
2-39 (4) Sections 406.006-406.009 and [Chapter 405;]
2-40 [(5)] Subchapters B and D-G, Chapter 406, other than
2-41 Sections 406.033, 406.034, 406.035, 406.091, and 406.096;
2-42 (5) [(6)] Chapter 408, other than Sections 408.001(b)
2-43 and (c);
2-44 (6) [(7)] Chapters 409-417; and
2-45 (7) [(8)] Chapter 451.
2-46 SECTION 7. (a) This Act takes effect September 1, 1999,
2-47 except as provided by Subsection (c) of this section.
2-48 (b) The executive director of the Texas Workers'
2-49 Compensation Commission shall develop and publish, not later than
2-50 October 1, 2000, a plan to incorporate electronic reporting of
2-51 information and financial exchanges between the parties in the
2-52 workers' compensation system. The plan must describe options for
2-53 the public to access nonconfidential statistical and reference
2-54 information, including medical billing and payment information,
2-55 reports, and funds transfer transactions, employer coverage and
2-56 insurance carrier claim administration contact information, and
2-57 other public access information and transaction information that is
2-58 feasible for electronic access. The executive director shall
2-59 appoint a task force consisting of knowledgeable workers'
2-60 compensation system participants, including the Texas Health Care
2-61 Information Council, and shall hold public hearings and conduct
2-62 studies necessary to develop a comprehensive electronic information
2-63 exchange plan that includes dates for conversion of specific
2-64 workers' compensation information to electronic exchange. The plan
2-65 developed under this subsection shall be designed to achieve a 30
2-66 percent reduction in paper communication requirements not later
2-67 than January 1, 2002, and an additional 30 percent reduction from
2-68 the paper communication requirements in effect on the effective
2-69 date of this Act not later than January 1, 2003.
3-1 (c) The change in law made by this Act to Section 406.006,
3-2 Labor Code, with regard to a certified self-insurer and political
3-3 subdivision not required to file notice of coverage before the
3-4 effective date of this Act, takes effect January 1, 2000.
3-5 SECTION 8. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.
3-10 * * * * *