1-1     By:  Ritter (Senate Sponsor - Armbrister)             H.B. No. 2514
 1-2           (In the Senate - Received from the House April 14, 1999;
 1-3     April 15, 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 certain workers' compensation programs conducted to
 1-9     increase worker safety.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11     ARTICLE 1.  IMMUNITY FOR LIABILITY FOR CERTAIN SAFETY CONSULTATIONS
1-12           SECTION 1.01.  Section 411.003(a), Labor Code, is amended to
1-13     read as follows:
1-14           (a)  An insurance company, the agent, servant, or employee of
1-15     the insurance company, or a safety consultant who performs a safety
1-16     consultation under Subchapter D or E has no liability for an
1-17     accident, injury, or occupational disease based on an allegation
1-18     that the accident, injury, or occupational disease was caused or
1-19     could have been prevented by a program, inspection, or other
1-20     activity or service undertaken by the insurance company for the
1-21     prevention of accidents in connection with operations of the
1-22     employer.
1-23                   ARTICLE 2.  HAZARDOUS EMPLOYER PROGRAM
1-24           SECTION 2.01. The subchapter heading to Subchapter D, Chapter
1-25     411, Labor Code, is amended to read as follows:
1-26         SUBCHAPTER D. HAZARDOUS [EXTRA-HAZARDOUS] EMPLOYER PROGRAM
1-27           SECTION 2.02.  Section 411.041, Labor Code, is amended to
1-28     read as follows:
1-29           Sec. 411.041.  APPLICATION; IDENTIFICATION OF HAZARDOUS
1-30     [EXTRA-HAZARDOUS] EMPLOYER.  (a)  This subchapter applies as
1-31     follows:
1-32                 (1)  nothing in this subchapter applies to a federal
1-33     entity or to a state agency, institution, or department described
1-34     by Chapter 501, 502, 503, or 505;
1-35                 (2)  Sections 411.043, 411.044, 411.045, 411.046, and
1-36     411.047 apply only to an employer that is:
1-37                       (A)  a political subdivision subject to Chapter
1-38     504; and
1-39                       (B)  not an employer described by Subdivision
1-40     (1); and
1-41                 (3)  Sections 411.0415, 411.042, 411.048, 411.049, and
1-42     411.050 apply to all employers, other than an employer described by
1-43     Subdivision (1).
1-44           (b)  The division shall develop a program to identify
1-45     hazardous [extra-hazardous] employers.  The program must include
1-46     analysis of injury frequency.
1-47           (c) [(b)]  Except as provided by Section 411.0415, an
1-48     employer whose injury frequencies substantially exceed those that
1-49     may reasonably be expected in that employer's business or industry
1-50     is a hazardous [an extra-hazardous] employer.
1-51           SECTION 2.03.  Sections 411.0415(a) and (c), Labor Code, are
1-52     amended to read as follows:
1-53           (a)  The executive director may exclude from identification
1-54     as a hazardous [an extra-hazardous] employer an employer who
1-55     presents evidence satisfactory to the commission that the injury
1-56     frequencies of the employer substantially exceed those that may
1-57     reasonably be expected in that employer's business or industry only
1-58     because of a fatality that:
1-59                 (1)  occurred because of factors beyond the employer's
1-60     control; or
1-61                 (2)  was outside the course and scope of the deceased
1-62     individual's employment.
1-63           (c)  If the commission determines that the case history of
1-64     the employee's fatality indicates that the employer or the work
 2-1     environment was a proximate cause of the fatality, the commission
 2-2     may request a hearing under Section 411.049.  If the hearing
 2-3     establishes that a proximate cause of the fatality was a factor or
 2-4     factors within the employer's control and was within the course and
 2-5     scope of the employment, the commission may identify [require] the
 2-6     employer for [to participate in] the hazardous employer
 2-7     [extra-hazardous employers] program if that fatality causes the
 2-8     employer to be designated as a hazardous [an extra-hazardous]
 2-9     employer.
2-10           SECTION 2.04.  Section 411.042, Labor Code, is amended to
2-11     read as follows:
2-12           Sec. 411.042.  NOTIFICATION TO HAZARDOUS [EXTRA-HAZARDOUS]
2-13     EMPLOYER AND INSURANCE CARRIER.  (a)  The division shall notify
2-14     each employer identified as a hazardous [an extra-hazardous]
2-15     employer and the insurance carrier for that employer that the
2-16     employer has been identified as a hazardous [an extra-hazardous]
2-17     employer.
2-18           (b)  The commission by rule shall require a minimum interval
2-19     of at least six months before a subsequent audit to identify an
2-20     employer who was previously identified as a hazardous employer.
2-21           SECTION 2.05.  Section 411.048, Labor Code, is amended to
2-22     read as follows:
2-23           Sec. 411.048.  COSTS CHARGED TO EMPLOYER.  (a)  The
2-24     commission shall charge an [the] employer that is a political
2-25     subdivision for reimbursement of the reasonable cost of services
2-26     provided by the division, including a reasonable allocation of the
2-27     commission's administrative costs, in formulating and monitoring
2-28     the implementation of a plan under Section 411.043 or 411.047,
2-29     investigating an accident under Section 411.044, or in conducting a
2-30     follow-up inspection under Section 411.045.
2-31           (b)  The commission shall charge a private employer for
2-32     reimbursement of the reasonable cost of services provided by the
2-33     division, including a reasonable allocation of the commission's
2-34     administrative costs, in providing safety and health services under
2-35     this program at the request of the private employer.  This
2-36     subsection does not apply to services provided to the employer
2-37     under Section 411.018.
2-38           SECTION 2.06.  Section 411.050, Labor Code, is amended to
2-39     read as follows:
2-40           Sec. 411.050.  ADMISSIBILITY OF IDENTIFICATION AS HAZARDOUS
2-41     [EXTRA-HAZARDOUS] EMPLOYER.  The identification of an employer as a
2-42     hazardous [an extra-hazardous] employer under this subchapter is
2-43     not admissible in any judicial proceeding unless:
2-44                 (1)  the commission has determined that the employer is
2-45     not in compliance with this subchapter; and
2-46                 (2)  that determination has not been reversed or
2-47     superseded at the time of the event giving rise to the judicial
2-48     proceeding.
2-49              ARTICLE 3.  INSURER ACCIDENT PREVENTION SERVICES
2-50           SECTION 3.01.  Section 411.064, Labor Code, is amended to
2-51     read as follows:
2-52           Sec. 411.064.  INSPECTIONS.  (a)  The division shall conduct
2-53     an inspection at least every two years to determine the adequacy of
2-54     the accident prevention services required by Section 411.061 for
2-55     each insurance company writing workers' compensation insurance in
2-56     this state.
2-57           (b)  If, after an inspection under Subsection (a), an
2-58     insurance company's accident prevention services are determined to
2-59     be inadequate, the division shall reinspect the accident prevention
2-60     services of the insurance company not earlier than the 180th day or
2-61     later than the 270th day after the date the accident prevention
2-62     services were determined by the division to be inadequate.
2-63           (c)  The insurance company shall reimburse the commission for
2-64     the reasonable cost of the reinspection, including a reasonable
2-65     allocation of the commission's administrative costs incurred in
2-66     conducting the inspections.
2-67              ARTICLE 4.  TRANSITION; EFFECTIVE DATE; EMERGENCY
2-68           SECTION 4.01.  Section 411.003, Labor Code, as amended by
2-69     this Act, applies only to a cause of action that accrues on or
 3-1     after the effective date of this Act.  A cause of action that
 3-2     accrues before that date is governed by the law as it existed
 3-3     immediately before the effective date of this Act, and that law is
 3-4     continued in effect for that purpose.
 3-5           SECTION 4.02.  Section 411.064, Labor Code, as amended by
 3-6     this Act, applies only to an inspection that is conducted on or
 3-7     after the effective date of this Act.  An inspection conducted
 3-8     before that date is governed by the law in effect on the date the
 3-9     inspection was conducted, and the former law is continued in effect
3-10     for that purpose.
3-11           SECTION 4.03.  This Act takes effect September 1, 1999.
3-12           SECTION 4.04.  The importance of this legislation and the
3-13     crowded condition of the calendars in both houses create an
3-14     emergency and an imperative public necessity that the
3-15     constitutional rule requiring bills to be read on three several
3-16     days in each house be suspended, and this rule is hereby suspended.
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