SRC-CTC H.B. 2976 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2976
77R9097 JMM-FBy: Dukes (Fraser)
Business & Commerce
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Currently, state agencies are required to enter into interagency contracts
with the State Office of Risk Management (office) for the administration of
the risk management program and to partially fund the office.  There is
some concern over the growth  of workers' compensation payments incurred by
certain state agencies and it would be beneficial to make state agencies
more responsible for accident prevention and loss control programs.  H.B.
2976 requires the office to establish a formula for allocating the state's
workers' compensation costs to state agencies in order for state agencies
to implement risk management programs.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 412.012, Labor Code, to require the State Office
of Risk Management (office) to be administered through money appropriated
by the legislature and through the allocation program for the financing of
state workers' compensation benefits and risk management costs.  Deletes
existing text relating to interagency contracts. 

Redesignates Subsection (b) as Section 412.0121.  

Sec. 412.0121.  INTERAGENCY CONTRACTS.  Requires the costs of risk
management services provided by a state agency under the interagency
contract to be allocated in the same proportion and determined in the same
manner as the costs of workers' compensation.  Deletes existing text
relating to the basis of costs to be paid by a state agency. 

Redesignates Subsection (c) as Section 412.0122.

Sec. 412.0122.  STATE SELF-INSURING FOR WORKERS' COMPENSATION. Deletes
existing text relating to legislative appropriation. 

Adds Section 412.0123, as follows:

Sec. 412.0123.  ALLOCATION OF WORKERS' COMPENSATION AND RISK MANAGEMENT
COSTS.  Requires the office to establish an allocation program for the
payment of workers' compensation claims and risk management services that
are incurred by a state agency subject to Chapter 501.  Requires the office
to establish a formula for allocating the state workers' compensation costs
among covered agencies based on certain criteria. Authorizes the agency to
provide modifiers to the formula to promote the effective implementation of
risk management programs by state agencies.  Provides that the risk
management board has final authority to determine the assessments to be
paid by the covered agencies. 
 
Redesignates Subsection (d) as Section 412.0124.  

Sec. 412.0124.  DEPOSIT OF WORKERS' COMPENSATION SUBROGATION RECOVERIES.
Deletes existing text relating to funds deposited under this section. 

SECTION 2.  Effective date: September 1, 2001.