1-1     By:  Brimer (Senate Sponsor - Armbrister)             H.B. No. 2842
 1-2           (In the Senate - Received from the House May 5, 1999;
 1-3     May 6, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     May 14, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2842              By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to continued payment of salary by an employer as
1-11     replacement for certain workers' compensation income benefits.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  The heading to Section 408.003, Labor Code, is
1-14     amended to read as follows:
1-15           Sec. 408.003.  REIMBURSABLE EMPLOYER PAYMENTS; SALARY
1-16     CONTINUATION; OFFSET AGAINST INCOME BENEFITS; LIMITS.
1-17           SECTION 2.  Section 408.003, Labor Code, is amended by adding
1-18     Subsections (f), (g), and (h) to read as follows:
1-19           (f)  Salary continuation payments made by an employer for an
1-20     employee's disability resulting from a compensable injury shall be
1-21     considered payment of income benefits for the purpose of
1-22     determining the accrual date of any subsequent income benefits
1-23     under this subtitle.
1-24           (g)  If an employer is subject to a contractual obligation
1-25     with an employee or group of employees, such as a collective
1-26     bargaining agreement or a written agreement or policy, under which
1-27     the employer is required to make salary continuation payments, the
1-28     employer is not eligible for reimbursement under this section for
1-29     those payments.
1-30           (h)  Payments made as salary continuation or salary
1-31     supplementation do not affect the exclusive remedy provisions of
1-32     Section 408.001.
1-33           SECTION 3.  Subchapter F, Chapter 408, Labor Code, is amended
1-34     by adding Section 408.105 to read as follows:
1-35           Sec. 408.105.  SALARY CONTINUATION IN LIEU OF TEMPORARY
1-36     INCOME BENEFITS.  (a)  In lieu of payment of temporary income
1-37     benefits under this subchapter, an employer may continue to pay the
1-38     salary of an employee who sustains a compensable injury under a
1-39     contractual obligation between the employer and employee, such as a
1-40     collective bargaining agreement, written agreement, or policy.
1-41           (b)  Salary continuation may include wage supplementation if:
1-42                 (1)  employer reimbursement is not sought from the
1-43     carrier as provided by Section 408.127; and
1-44                 (2)  the supplementation does not affect the employee's
1-45     eligibility for any future income benefits.
1-46           SECTION 4.  This Act takes effect September 1, 1999, and
1-47     applies only to a claim for workers' compensation benefits based on
1-48     a compensable injury that occurs on or after that date.  A claim
1-49     based on a compensable injury that occurs before that date is
1-50     governed by the law in effect on the date that the compensable
1-51     injury occurred, and the former law is continued in effect for that
1-52     purpose.
1-53           SECTION 5.  The importance of this legislation and the
1-54     crowded condition of the calendars in both houses create an
1-55     emergency and an imperative public necessity that the
1-56     constitutional rule requiring bills to be read on three several
1-57     days in each house be suspended, and this rule is hereby suspended.
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