AN ACT
 1-1     relating to compensation and benefits for members of the state
 1-2     military forces and their dependents.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 431.006, Government Code, is amended to
 1-5     read as follows:
 1-6           Sec. 431.006.  REEMPLOYMENT OF PERSON CALLED TO TRAINING OR
 1-7     [ACTIVE] DUTY.  (a)  A private employer may not terminate the
 1-8     employment of a permanent employee who is a member of the state
 1-9     military forces because the employee is ordered to authorized
1-10     training or [active] duty by proper authority [during an emergency
1-11     within the state].  The employee is entitled to return to the same
1-12     employment held when ordered to training or [active] duty and may
1-13     not be subjected to loss of time, efficiency rating, vacation time,
1-14     or any benefit of employment during or because of the absence.  The
1-15     employee, as soon as practicable after release from duty, must give
1-16     written or actual notice of intent to return to employment.  This
1-17     subsection does not require a private employer to pay the regular
1-18     wage of an employee during the period that the employee is absent
1-19     from work to participate in authorized training or duty.
1-20           (b)  A person injured by a violation of this section is
1-21     entitled to:
1-22                 (1)  damages in an amount not exceeding six months'
1-23     compensation at the rate at which the person was compensated when
1-24     ordered to training or [active] duty; and
 2-1                 (2)  reasonable attorney's fees approved by the court.
 2-2           (c)  It is a defense to an action under this section that the
 2-3     employer's circumstances changed while the employee was in training
 2-4     or on [active] duty to an extent that makes reemployment impossible
 2-5     or unreasonable.
 2-6           SECTION 2.  Subsection (c), Section 431.082, Government Code,
 2-7     is amended to read as follows:
 2-8           (c)  When the adjutant general authorizes payment for
 2-9     training or other duty under Subsection (b), a member of the state
2-10     military forces performing the training or other duty is entitled,
2-11     during the period of the training or other duty, to receive pay and
2-12     allowances as provided by law for the United States Armed Forces,
2-13     except that the pay may not be less than the reimbursement for
2-14     lodging and meals authorized by the General Appropriations Act.
2-15     This pay is an emolument for training or other duty and is salary
2-16     or base pay.  The pay and allowances [and] may not be reduced
2-17     because of food, shelter, or transportation that the state pays or
2-18     furnishes in connection with the training or other duty.
2-19           SECTION 3.  Section 431.104, Government Code, is amended to
2-20     read as follows:
2-21           Sec. 431.104.  COMPENSATION FOR DEATH OR [PERMANENT]
2-22     DISABILITY.  (a)  A member of the state military forces who is
2-23     killed or disabled while engaged in authorized training or duty
2-24     [whose disability incurred in the line of military duty] is
2-25     [permanent is] entitled[, after payment under Section 431.102 has
2-26     ceased and in addition to payment and allowance under Section
 3-1     431.103,] to receive compensation under Chapter 501, Labor Code
 3-2     [based on the person's percentage of total disability].  [The
 3-3     compensation may not exceed $440 a month plus 12 1/2 percent of the
 3-4     basic pay of the grade or rank that the person held when the
 3-5     disability was incurred.]
 3-6           (b)  The adjutant general, in cooperation with the State
 3-7     Office of Risk Management, may use available public funds to
 3-8     purchase an insurance policy or annuity contract from any insurance
 3-9     or annuity company authorized to do business in this state as the
3-10     adjutant general considers necessary to carry out this section.
3-11     This subsection expires September 1, 2001 [shall appoint at least
3-12     five persons, including at least one officer of the medical corps,
3-13     as members of a board of officers.  The board of officers shall:]
3-14                 [(1)  determine a person's percentage of disability and
3-15     award compensation for the disability under this section; and]
3-16                 [(2)  review each compensation award annually on a date
3-17     set by the adjutant general to determine whether the award should
3-18     be continued, increased, reduced, or eliminated].
3-19           SECTION 4.  Subchapter C, Chapter 408, Labor Code, is amended
3-20     by adding Section 408.0445 to read as follows:
3-21           Sec. 408.0445.  AVERAGE WEEKLY WAGE FOR MEMBERS OF THE STATE
3-22     MILITARY FORCES.  For purposes of computing income benefits or
3-23     death benefits under Section 431.104, Government Code, the average
3-24     weekly wage of a member of the state military forces as defined by
3-25     Section 431.001, Government Code, who is engaged in authorized
3-26     training or duty is an amount equal to the sum of the member's
 4-1     regular weekly wage at any employment the member holds in addition
 4-2     to serving as a member of the state military forces, disregarding
 4-3     any period during which the member is not fully compensated for
 4-4     that employment because the member is engaged in authorized
 4-5     military training or duty, and the member's regular weekly wage as
 4-6     a member of the state military forces, except that the amount may
 4-7     not exceed 100 percent of the state average weekly wage as
 4-8     determined under Section 408.047.
 4-9           SECTION 5.  Subdivision (5), Section 501.001, Labor Code, is
4-10     amended to read as follows:
4-11                 (5)  "Employee" means a person who is:
4-12                       (A)  in the service of the state pursuant to an
4-13     election, appointment, or express oral or written contract of hire;
4-14                       (B)  paid from state funds but whose duties
4-15     require that the person work and frequently receive supervision in
4-16     a political subdivision of the state;  [or]
4-17                       (C)  a peace officer employed by a political
4-18     subdivision, while the peace officer is exercising authority
4-19     granted under Article 14.03(c), Code of Criminal Procedure; or
4-20                       (D)  a member of the state military forces, as
4-21     defined by Section 431.001, Government Code, who is engaged in
4-22     authorized training or duty.
4-23           SECTION 6.  Section 501.002, Labor Code, is amended by adding
4-24     Subsection (e) to read as follows:
4-25           (e)  For the purposes of this chapter and Chapter 451, the
4-26     adjutant general is considered the employer of a member of the
 5-1     state military forces while engaged in authorized training or duty.
 5-2           SECTION 7.  Section 501.024, Labor Code, is amended to read
 5-3     as follows:
 5-4           Sec. 501.024.  EXCLUSIONS FROM COVERAGE.  The following
 5-5     persons are excluded from coverage as an employee under this
 5-6     chapter:
 5-7                 (1)  a person performing personal services for the
 5-8     state as an independent contractor or volunteer;
 5-9                 (2)  [a member of the state military forces as defined
5-10     by Section 431.001, Government Code;]
5-11                 [(3)]  a person who at the time of injury was
5-12     performing services for the federal government and who is covered
5-13     by some form of federal workers' compensation insurance;
5-14                 (3) [(4)]  a prisoner or inmate of a prison or
5-15     correctional institution;
5-16                 (4) [(5)]  a client or patient of a state agency;
5-17                 (5) [(6)]  a person employed by the Texas Department of
5-18     Transportation who is covered under Chapter 505;
5-19                 (6) [(7)]  a person employed by The University of Texas
5-20     System who is covered by Chapter 503; and
5-21                 (7) [(8)]  a person employed by The Texas A&M
5-22     University System who is covered by Chapter 502.
5-23           SECTION 8.  Sections 431.102, 431.103, 431.105, and 431.106,
5-24     Government Code, are repealed.
5-25           SECTION 9.  (a)  This Act takes effect September 1, 1999.
5-26           (b)  The change in law made by this Act to Subchapter G,
 6-1     Chapter 431, Government Code, applies only to an injury or death of
 6-2     a member of the state military forces occurring on or after August
 6-3     15, 1998, and to compensation payable on or after the effective
 6-4     date of this Act.
 6-5           (c)  The change in law made by this Act to Sections 501.001
 6-6     and 501.024, Labor Code, applies to a compensable injury sustained
 6-7     by a member of the state military forces on or after August 15,
 6-8     1998.  For purposes of complying with the procedural requirements
 6-9     to establish a claim for compensation under the workers'
6-10     compensation laws by a member of the state military forces who
6-11     sustains a compensable injury before the effective date of this
6-12     Act, the member's compensable injury is considered to have been
6-13     sustained on the effective date of this Act.
6-14           (d)  Compensation paid or payable for an injury or death of a
6-15     member of the state military forces while engaged in authorized
6-16     training or duty occurring before August 15, 1998, and compensation
6-17     paid or payable before the effective date of this Act for any
6-18     injury or death of a member of the state military forces while
6-19     engaged in authorized training or duty are governed by the law as
6-20     it existed on the effective date, and the former law is continued
6-21     in effect for that purpose.
6-22           SECTION 10.  The importance of this legislation and the
6-23     crowded condition of the calendars in both houses create an
6-24     emergency and an imperative public necessity that the
6-25     constitutional rule requiring bills to be read on three several
6-26     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 525 passed the Senate on
         April 19, 1999, by a viva-voce vote; and that the Senate adopted
         S.C.R. No. 84, recalling S.B. No. 525 from the Governor for
         reconsideration on May 20, 1999; and that the Senate concurred in
         House amendment to S.B. No. 525 on May 28, 1999, by a viva-voce
         vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 525 passed the House on
         May 8, 1999, by a non-record vote; and that the House adopted
         S.C.R. No. 84, recalling S.B. No. 525 from the Governor on
         May 21, 1999; and that S.B. No. 525 passed the House, with
         amendment, on May 25, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor