By Ritter                                             H.B. No. 2514
         76R10283 PB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain workers' compensation programs conducted to
 1-3     increase worker safety.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5     ARTICLE 1.  IMMUNITY FOR LIABILITY FOR CERTAIN SAFETY CONSULTATIONS
 1-6           SECTION 1.01.  Section 411.003(a), Labor Code, is amended to
 1-7     read as follows:
 1-8           (a)  An insurance company, the agent, servant, or employee of
 1-9     the insurance company, or a safety consultant who performs a safety
1-10     consultation under Subchapter D or E has no liability for an
1-11     accident, injury, or occupational disease based on an allegation
1-12     that the accident, injury, or occupational disease was caused or
1-13     could have been prevented by a program, inspection, or other
1-14     activity or service undertaken by the insurance company for the
1-15     prevention of accidents in connection with operations of the
1-16     employer.
1-17                   ARTICLE 2.  HAZARDOUS EMPLOYER PROGRAM
1-18           SECTION 2.01. The subchapter heading to Subchapter D, Chapter
1-19     411, Labor Code, is amended to read as follows:
1-20         SUBCHAPTER D. HAZARDOUS [EXTRA-HAZARDOUS] EMPLOYER PROGRAM
1-21           SECTION 2.02.  Section 411.041, Labor Code, is amended to
1-22     read as follows:
1-23           Sec. 411.041.  APPLICATION; IDENTIFICATION OF HAZARDOUS
1-24     [EXTRA-HAZARDOUS] EMPLOYER.  (a)  This subchapter applies as
 2-1     follows:
 2-2                 (1)  nothing in this subchapter applies to a federal
 2-3     entity or to a state agency, institution, or department described
 2-4     by Chapter 501, 502, 503, or 505;
 2-5                 (2)  Sections 411.043, 411.044, 411.045, 411.046, and
 2-6     411.047 apply only to an employer that is:
 2-7                       (A)  a political subdivision subject to Chapter
 2-8     504; and
 2-9                       (B)  not an employer described by Subdivision
2-10     (1); and
2-11                 (3)  Sections 411.0415, 411.042, 411.048, 411.049, and
2-12     411.050 apply to all employers, other than an employer described by
2-13     Subdivision (1).
2-14           (b)  The division shall develop a program to identify
2-15     hazardous [extra-hazardous] employers.  The program must include
2-16     analysis of injury frequency.
2-17           (c) [(b)]  Except as provided by Section 411.0415, an
2-18     employer whose injury frequencies substantially exceed those that
2-19     may reasonably be expected in that employer's business or industry
2-20     is a hazardous [an extra-hazardous] employer.
2-21           SECTION 2.03.  Sections 411.0415(a) and (c), Labor Code, are
2-22     amended to read as follows:
2-23           (a)  The executive director may exclude from identification
2-24     as a hazardous [an extra-hazardous] employer an employer who
2-25     presents evidence satisfactory to the commission that the injury
2-26     frequencies of the employer substantially exceed those that may
2-27     reasonably be expected in that employer's business or industry only
 3-1     because of a fatality that:
 3-2                 (1)  occurred because of factors beyond the employer's
 3-3     control; or
 3-4                 (2)  was outside the course and scope of the deceased
 3-5     individual's employment.
 3-6           (c)  If the commission determines that the case history of
 3-7     the employee's fatality indicates that the employer or the work
 3-8     environment was a proximate cause of the fatality, the commission
 3-9     may request a hearing under Section 411.049.  If the hearing
3-10     establishes that a proximate cause of the fatality was a factor or
3-11     factors within the employer's control and was within the course and
3-12     scope of the employment, the commission may identify [require] the
3-13     employer for [to participate in] the hazardous employer
3-14     [extra-hazardous employers] program if that fatality causes the
3-15     employer to be designated as a hazardous [an extra-hazardous]
3-16     employer.
3-17           SECTION 2.04.  Section 411.042, Labor Code, is amended to
3-18     read as follows:
3-19           Sec. 411.042.  NOTIFICATION TO HAZARDOUS [EXTRA-HAZARDOUS]
3-20     EMPLOYER AND INSURANCE CARRIER.  (a)  The division shall notify
3-21     each employer identified as a hazardous [an extra-hazardous]
3-22     employer and the insurance carrier for that employer that the
3-23     employer has been identified as a hazardous [an extra-hazardous]
3-24     employer.
3-25           (b)  The commission by rule shall require a minimum interval
3-26     of at least six months before a subsequent audit to identify an
3-27     employer who was previously identified as a hazardous employer.
 4-1           SECTION 2.05.  Section 411.048, Labor Code, is amended to
 4-2     read as follows:
 4-3           Sec. 411.048.  COSTS CHARGED TO EMPLOYER.  (a)  The
 4-4     commission shall charge an [the] employer that is a political
 4-5     subdivision for reimbursement of the reasonable cost of services
 4-6     provided by the division, including a reasonable allocation of the
 4-7     commission's administrative costs, in formulating and monitoring
 4-8     the implementation of a plan under Section 411.043 or 411.047,
 4-9     investigating an accident under Section 411.044, or in conducting a
4-10     follow-up inspection under Section 411.045.
4-11           (b)  The commission shall charge a private employer for
4-12     reimbursement of the reasonable cost of services provided by the
4-13     division, including a reasonable allocation of the commission's
4-14     administrative costs, in providing safety and health services under
4-15     this program at the request of the private employer.  This
4-16     subsection does not apply to services provided to the employer
4-17     under Section 411.018.
4-18           SECTION 2.06.  Section 411.050, Labor Code, is amended to
4-19     read as follows:
4-20           Sec. 411.050.  ADMISSIBILITY OF IDENTIFICATION AS HAZARDOUS
4-21     [EXTRA-HAZARDOUS] EMPLOYER.  The identification of an employer as a
4-22     hazardous [an extra-hazardous] employer under this subchapter is
4-23     not admissible in any judicial proceeding unless:
4-24                 (1)  the commission has determined that the employer is
4-25     not in compliance with this subchapter; and
4-26                 (2)  that determination has not been reversed or
4-27     superseded at the time of the event giving rise to the judicial
 5-1     proceeding.
 5-2              ARTICLE 3.  INSURER ACCIDENT PREVENTION SERVICES
 5-3           SECTION 3.01.  Section 411.064, Labor Code, is amended to
 5-4     read as follows:
 5-5           Sec. 411.064.  INSPECTIONS.  (a)  The division shall conduct
 5-6     an inspection at least every two years to determine the adequacy of
 5-7     the accident prevention services required by Section 411.061 for
 5-8     each insurance company writing workers' compensation insurance in
 5-9     this state.
5-10           (b)  If, after an inspection under Subsection (a), an
5-11     insurance company's accident prevention services are determined to
5-12     be inadequate, the division shall reinspect the accident prevention
5-13     services of the insurance company not earlier than the 180th day or
5-14     later than the 270th day after the date the accident prevention
5-15     services were determined by the division to be inadequate.
5-16           (c)  The insurance company shall reimburse the commission for
5-17     the reasonable cost of the reinspection, including a reasonable
5-18     allocation of the commission's administrative costs incurred in
5-19     conducting the inspections.
5-20              ARTICLE 4.  TRANSITION; EFFECTIVE DATE; EMERGENCY
5-21           SECTION 4.01.  Section 411.003, Labor Code, as amended by
5-22     this Act, applies only to a cause of action that accrues on or
5-23     after the effective date of this Act.  A cause of action that
5-24     accrues before that date is governed by the law as it existed
5-25     immediately before the effective date of this Act, and that law is
5-26     continued in effect for that purpose.
5-27           SECTION 4.02.  Section 411.064, Labor Code, as amended by
 6-1     this Act, applies only to an inspection that is conducted on or
 6-2     after the effective date of this Act.  An inspection conducted
 6-3     before that date is governed by the law in effect on the date the
 6-4     inspection was conducted, and the former law is continued in effect
 6-5     for that purpose.
 6-6           SECTION 4.03.  This Act takes effect September 1, 1999.
 6-7           SECTION 4.04.  The importance of this legislation and the
 6-8     crowded condition of the calendars in both houses create an
 6-9     emergency and an imperative public necessity that the
6-10     constitutional rule requiring bills to be read on three several
6-11     days in each house be suspended, and this rule is hereby suspended.