By Ritter                                             H.B. No. 2514
         76R6987 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.  HAZARDOUS EMPLOYER PROGRAM
 1-6           SECTION 1.01. The subchapter heading to Subchapter D, Chapter
 1-7     411, Labor Code, is amended to  read as follows:
 1-8         SUBCHAPTER D. HAZARDOUS [EXTRA-HAZARDOUS] EMPLOYER PROGRAM
 1-9           SECTION 1.02. Section 411.041, Labor Code, is amended to read
1-10     as follows:
1-11           Sec. 411.041.  APPLICATION; IDENTIFICATION OF HAZARDOUS
1-12     [EXTRA-HAZARDOUS] EMPLOYER.  (a)  This subchapter applies  as
1-13     follows:
1-14                 (1)  Sections 411.043, 411.044, 411.045, 411.046,
1-15     411.047, and 411.048 apply only to an employer that is a  political
1-16     subdivision subject to Chapter 504; and
1-17                 (2)  the remaining sections of this subchapter apply to
1-18     all employers.
1-19           (b)  The division shall develop a program to identify
1-20     hazardous [extra-hazardous] employers.  The program must include
1-21     analysis of injury frequency.
1-22           (c) [(b)]  Except as provided by Section 411.0415, an
1-23     employer whose injury frequencies substantially exceed those that
1-24     may reasonably be expected in that employer's business or industry
 2-1     is a hazardous [an extra-hazardous] employer.
 2-2           SECTION 1.03. Sections 411.0415(a) and (c), Labor Code, are
 2-3     amended to read as follows:
 2-4           (a)  The executive director may exclude from identification
 2-5     as a hazardous [an extra-hazardous] employer an employer who
 2-6     presents evidence satisfactory to the commission that the injury
 2-7     frequencies of the employer substantially exceed those that may
 2-8     reasonably be expected in that employer's business or industry only
 2-9     because of a fatality that:
2-10                 (1)  occurred because of factors beyond the employer's
2-11     control; or
2-12                 (2)  was outside the course and scope of the deceased
2-13     individual's employment.
2-14           (c)  If the commission determines that the case history of
2-15     the employee's fatality indicates that the employer or the work
2-16     environment was a proximate cause of the fatality, the commission
2-17     may request a hearing under Section 411.049.  If the hearing
2-18     establishes that a proximate cause of the fatality was a factor or
2-19     factors within the employer's control and was within the course and
2-20     scope of the employment, the commission may identify [require] the
2-21     employer for [to participate in] the hazardous  [extra-hazardous]
2-22     employers program if that fatality causes the employer to be
2-23     designated as a hazardous [an extra-hazardous] employer.
2-24           SECTION 1.04. Section 411.042, Labor Code, is amended to read
2-25     as follows:
2-26           Sec. 411.042.  NOTIFICATION TO HAZARDOUS [EXTRA-HAZARDOUS]
2-27     EMPLOYER AND INSURANCE CARRIER.  (a)  The division shall  notify
 3-1     each employer identified as a hazardous [an extra-hazardous]
 3-2     employer and the insurance carrier for that employer that the
 3-3     employer has been identified as a hazardous [an extra-hazardous]
 3-4     employer.
 3-5           (b)  The commission by rule shall require a minimum interval
 3-6     of at least six months before a subsequent audit to identify an
 3-7     employer as a hazardous employer.
 3-8           SECTION 1.05.  Section 411.048, Labor Code, is amended to
 3-9     read as follows:
3-10           Sec. 411.048.  COSTS CHARGED TO EMPLOYER.  (a)  The
3-11     commission shall charge an [the] employer that is a political
3-12     subdivision  for reimbursement of the reasonable cost of services
3-13     provided by the division, including a reasonable allocation of the
3-14     commission's administrative costs, in formulating and monitoring
3-15     the implementation of a plan under Section 411.043 or 411.047,
3-16     investigating an accident under Section 411.044, or in conducting a
3-17     follow-up inspection under Section 411.045.
3-18           (b)  The commission shall charge a private employer for
3-19     reimbursement of the reasonable cost of services provided by the
3-20     division, including a reasonable allocation of the commission's
3-21     administrative costs, in providing safety and health services under
3-22     this program at the request of the private employer.  This
3-23     subsection does not apply to services provided to the employer
3-24     under Section 411.018.
3-25           SECTION 1.06.  Section 411.050, Labor Code, is amended to
3-26     read as follows:
3-27           Sec. 411.050.  ADMISSIBILITY OF IDENTIFICATION AS HAZARDOUS
 4-1     [EXTRA-HAZARDOUS] EMPLOYER.  The identification of an employer as a
 4-2     hazardous [an extra-hazardous] employer under this subchapter is
 4-3     not admissible in any judicial proceeding unless:
 4-4                 (1)  the commission has determined that the employer is
 4-5     not in compliance with this subchapter; and
 4-6                 (2)  that determination has not been reversed or
 4-7     superseded at the time of the event giving rise to the judicial
 4-8     proceeding.
 4-9              ARTICLE 2.  INSURER ACCIDENT PREVENTION SERVICES
4-10           SECTION 2.01.  Section 411.064, Labor Code,  is amended to
4-11     read as follows:
4-12           Sec. 411.064.  INSPECTIONS.  (a)  The division shall conduct
4-13     an inspection at least every two years to determine the adequacy of
4-14     the accident prevention services required by Section 411.061 for
4-15     each insurance company writing workers' compensation insurance in
4-16     this state.
4-17           (b)  If, after an inspection under Subsection (a), an
4-18     insurance company's accident prevention services are determined to
4-19     be inadequate, the division shall reinspect the accident prevention
4-20     services of the insurance company not later than the 180th day
4-21     after the date the accident prevention services were determined by
4-22     the division to be inadequate.
4-23           (c)  The insurance company shall reimburse the commission for
4-24     the reasonable cost of the reinspection, including a reasonable
4-25     allocation of the commission's administrative costs incurred in
4-26     conducting the inspections.
4-27              ARTICLE 3.  TRANSITION; EFFECTIVE DATE; EMERGENCY
 5-1           SECTION 3.01. Section 411.064, Labor Code, as amended by this
 5-2     Act, applies only to an inspection that is conducted on or after
 5-3     the effective date of this Act.  An inspection conducted before
 5-4     that date is governed by the law in effect on the date the
 5-5     inspection was conducted, and the former law is continued in effect
 5-6     for that purpose.
 5-7           SECTION 3.02.  This Act takes effect September 1, 1999.
 5-8           SECTION 3.03.  The importance of this legislation and the
 5-9     crowded condition of the calendars in both houses create an
5-10     emergency and an imperative public necessity that the
5-11     constitutional rule requiring bills to be read on three several
5-12     days in each house be suspended, and this rule is hereby suspended.