By Brimer H.B. No. 1204
77R435 JMM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision of risk management services and the
1-3 administration of a workers' compensation insurance program by the
1-4 State Office of Risk Management for certain state agencies,
1-5 including certain institutions of higher education.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 412.001(4), Labor Code, is amended to read
1-8 as follows:
1-9 (4) "State agency" means:
1-10 (A) a board, commission, department, office, or
1-11 other agency in the executive, judicial, or legislative branch of
1-12 state government that has five or more employees, was created by
1-13 the constitution or a statute of this state, and has authority not
1-14 limited to a specific geographical portion of the state; and
1-15 (B) an institution of higher education as
1-16 defined by Section 61.003, Education Code.
1-17 SECTION 2. Section 412.011(b), Labor Code, is amended to read
1-18 as follows:
1-19 (b) The office shall:
1-20 (1) administer guidelines adopted by the board for a
1-21 comprehensive risk management program applicable to all state
1-22 agencies to reduce property and liability losses, including
1-23 workers' compensation losses;
1-24 (2) review, verify, monitor, and approve risk
2-1 management programs adopted by state agencies;
2-2 (3) assist a state agency that has not implemented an
2-3 effective risk management program to implement a comprehensive
2-4 program that meets the guidelines established by the board; and
2-5 (4) administer the workers' compensation insurance
2-6 program for state employees established under Chapters [Chapter]
2-7 501, 502, 503, and 505.
2-8 SECTION 3. Section 412.041, Labor Code, is amended to read as
2-9 follows:
2-10 Sec. 412.041. DIRECTOR DUTIES[; RESPONSIBILITIES]. (a) The
2-11 director serves as the state risk manager.
2-12 (b) The director shall supervise the development and
2-13 administration of systems to:
2-14 (1) identify the property and liability losses,
2-15 including workers' compensation losses, of each state agency;
2-16 (2) identify the administrative costs of risk
2-17 management incurred by each state agency;
2-18 (3) identify and evaluate the exposure of each state
2-19 agency to claims for property and liability losses, including
2-20 workers' compensation; and
2-21 (4) reduce the property and liability losses,
2-22 including workers' compensation, incurred by each state agency.
2-23 (c) In addition to other duties provided by this chapter, by
2-24 Chapters [Chapter] 501, 502, 503, and 505, and by the board, the
2-25 director shall:
2-26 (1) keep full and accurate minutes of the transactions
2-27 and proceedings of the board;
3-1 (2) be the custodian of the files and records of the
3-2 board;
3-3 (3) prepare and recommend to the board plans and
3-4 procedures necessary to implement the purposes and objectives of
3-5 this chapter and Chapters [Chapter] 501, 502, 503, and 505,
3-6 including rules and proposals for administrative procedures
3-7 consistent with this chapter and Chapters [Chapter] 501, 502, 503,
3-8 and 505;
3-9 (4) hire staff as necessary to accomplish the
3-10 objectives of the board and may delegate powers and duties to
3-11 members of that staff as necessary;
3-12 (5) be responsible for the investigation of complaints
3-13 and for the presentation of formal complaints;
3-14 (6) attend all meetings of the board as a nonvoting
3-15 participant; and
3-16 (7) handle the correspondence of the board and obtain,
3-17 assemble, or prepare the reports and information that the board may
3-18 direct or authorize.
3-19 (d) If necessary to the administration of this chapter and
3-20 Chapters [Chapter] 501, 502, 503, and 505, the director, with the
3-21 approval of the board, may secure and provide for services that are
3-22 necessary and may employ and compensate within available
3-23 appropriations professional consultants, technical assistants, and
3-24 employees on a full-time or part-time basis.
3-25 (e) The director also serves as the administrator of the
3-26 government employees workers' compensation insurance program.
3-27 (f) In administering and enforcing Chapters [Chapter] 501,
4-1 502, 503, and 505, as regards a compensable injury with a date of
4-2 injury before September 1, 1995, the director shall act in the
4-3 capacity of employer and insurer. In administering and enforcing
4-4 Chapters 501, 502, 503, and 505, as regards a compensable injury
4-5 with a date of injury on or after September 1, 1995, the director
4-6 shall act in the capacity of insurer. [(effective for dates of
4-7 injury before September 1, 1995.)]
4-8 (g) [(1)] The director shall act as an adversary before the
4-9 commission and courts and present the legal defenses and positions
4-10 of the state as an employer and insurer, as appropriate.
4-11 (h) [(2)] For the purposes of Subsection (f) [this
4-12 subsection] and Chapters [Chapter] 501, 502, 503, and 505, the
4-13 director is entitled to the legal counsel of the attorney general.
4-14 (i) In administering Chapters 501, 502, 503, and 505, the
4-15 [(3) The] director is subject to the rules, orders, and decisions
4-16 of the commission in the same manner as a private employer,
4-17 insurer, or association.
4-18 (j) [(g) In administering and enforcing Chapter 501, the
4-19 director shall act in the capacity of insurer. (effective for
4-20 dates of injury on or after September 1, 1995.)]
4-21 [(1) The director shall act as an adversary before the
4-22 commission and courts and present the legal defenses and positions
4-23 of the state as an insurer.]
4-24 [(2) For purposes of this subsection and Chapter 501,
4-25 the director is entitled to legal counsel of the attorney general.]
4-26 [(3) The director is subject to the rules, orders, and
4-27 decisions of the commission in the same manner as an insurer or
5-1 association.]
5-2 [(h)] The director shall:
5-3 (1) prepare for adoption by the board procedural rules
5-4 and prescribe forms necessary for the effective administration of
5-5 this chapter and Chapters [Chapter] 501, 502, 503, and 505
5-6 [(effective for dates of injury before September 1, 1995)]; and
5-7 (2) prepare for adoption by the board and enforce
5-8 reasonable rules for the prevention of accidents and injuries[;]
5-9 [(3) prepare for adoption by the board procedural
5-10 rules and prescribe forms necessary for the effective
5-11 administration of this chapter and Chapter 501]. [(effective for
5-12 dates of injury on or after September 1, 1995.)]
5-13 (k) [(i)] The director shall hold hearings on all proposed
5-14 rules and provide reasonable opportunity for the officers of state
5-15 agencies to testify at hearings on all proposed rules under this
5-16 chapter and Chapters [Chapter] 501, 502, 503, and 505.
5-17 (l) [(j)] The director shall furnish copies of all rules to:
5-18 (1) the commission; and
5-19 (2) [to] the administrative heads of all state
5-20 agencies affected by this chapter and Chapters [Chapter] 501, 502,
5-21 503, and 505.
5-22 SECTION 4. Sections 412.042(b) and (d), Labor Code, are
5-23 amended to read as follows:
5-24 (b) The report required under this section shall be dated
5-25 January 1 of the year in which the regular session is held and must
5-26 include:
5-27 (1) a summary of administrative expenses; and
6-1 (2) a statement:
6-2 (A) showing the amount of the money appropriated
6-3 by the preceding legislature that remains unexpended on the date of
6-4 the report; [and]
6-5 (B) estimating the amount of that balance
6-6 necessary to administer Chapters [Chapter] 501, 502, 503, and 505
6-7 for the remainder of that fiscal year; and
6-8 (C) an estimate, based on experience factors, of
6-9 the amount of money that will be required to administer Chapters
6-10 [Chapter] 501, 502, 503, and 505 and pay for the compensation and
6-11 services provided under those chapters [Chapter 501] during the
6-12 next succeeding biennium.
6-13 (d) The director shall maintain, and make available to the
6-14 legislature on request, a list of all persons who have received
6-15 benefits under Chapters [Chapter] 501, 502, 503, and 505, the
6-16 nature and cause of each compensable injury, and the amounts paid
6-17 weekly in income benefits and for medical services, hospital
6-18 services, and other services.
6-19 SECTION 5. Section 502.001, Labor Code, is amended to read as
6-20 follows:
6-21 Sec. 502.001. DEFINITIONS. In this chapter:
6-22 (1) "Board" means the risk management board.
6-23 (2) "Commission" means the Texas Workers' Compensation
6-24 Commission.
6-25 (3) "Director" means the director of the State Office
6-26 of Risk Management.
6-27 (4) [(2)] "Employee" means a person employed in the
7-1 service of an institution whose name appears on the institution's
7-2 payroll.
7-3 (5) [(3)] "Institution" means an institution of higher
7-4 education or agency under the direction or governance of the board
7-5 of regents of The Texas A&M University System.
7-6 (6) "Office" means the State Office of Risk
7-7 Management.
7-8 (7) [(4)] "System" has the meaning assigned by Section
7-9 85.01(1), Education Code.
7-10 SECTION 6. Section 502.002(b), Labor Code, is amended to read
7-11 as follows:
7-12 (b) For the purpose of applying the provisions listed by
7-13 Subsection (a) to this chapter, "employer" means "the
7-14 institution," "state," "office," "director," or "state agency," as
7-15 applicable.["]
7-16 SECTION 7. Section 502.021(a), Labor Code, is amended to read
7-17 as follows:
7-18 (a) The director [institution] shall pay benefits as
7-19 provided by this chapter to an employee with a compensable injury.
7-20 SECTION 8. Sections 502.061(a) and (c), Labor Code, are
7-21 amended to read as follows:
7-22 (a) The director [Each institution] shall administer this
7-23 chapter.
7-24 (c) The board [institution] may:
7-25 (1) adopt and publish rules and prescribe and furnish
7-26 forms necessary for the administration of this chapter; and
7-27 (2) adopt and enforce rules necessary for the
8-1 prevention of accidents and injuries.
8-2 SECTION 9. Section 502.063(b), Labor Code, is amended to read
8-3 as follows:
8-4 (b) The director [An institution] may obtain certified
8-5 copies under this section without charge.
8-6 SECTION 10. Section 502.065, Labor Code, is amended to read
8-7 as follows:
8-8 Sec. 502.065. REPORTS OF INJURIES. (a) In addition to a
8-9 report of an injury filed with the commission under Section
8-10 409.005(a), the director [an institution] shall file a supplemental
8-11 report that contains:
8-12 (1) the name, age, sex, and occupation of the injured
8-13 employee;
8-14 (2) the character of work in which the employee was
8-15 engaged at the time of the injury;
8-16 (3) the place, date, and hour of the injury; and
8-17 (4) the nature and cause of the injury.
8-18 (b) The director [institution] shall file the supplemental
8-19 report on a form obtained for that purpose:
8-20 (1) on the termination of incapacity of the injured
8-21 employee; or
8-22 (2) if the incapacity extends beyond 60 days.
8-23 SECTION 11. Sections 502.066(b), (d), and (e), Labor Code,
8-24 are amended to read as follows:
8-25 (b) On the request of an employee or the director
8-26 [institution], the employee or the director [institution] is
8-27 entitled to have a physician or chiropractor selected by the
9-1 employee or the director [institution], as appropriate, present to
9-2 participate in an examination under Subsection (a) or Section
9-3 408.004.
9-4 (d) The director [institution] may have an injured employee
9-5 examined at a reasonable time and at a place suitable to the
9-6 employee's condition and convenient and accessible to the employee
9-7 by a physician or chiropractor selected by the director
9-8 [institution]. The office [institution] shall pay for an
9-9 examination under this subsection and for the employee's reasonable
9-10 expenses incident to the examination. The employee is entitled to
9-11 have a physician or chiropractor selected by the employee present
9-12 to participate in an examination under this subsection.
9-13 (e) The office [institution] shall pay the fee set by the
9-14 commission of a physician or chiropractor selected by the employee
9-15 under Subsection (b) or (d).
9-16 SECTION 12. Section 502.067(a), Labor Code, is amended to
9-17 read as follows:
9-18 (a) The commission may order or direct the director
9-19 [institution] to reduce or suspend the compensation of an injured
9-20 employee who:
9-21 (1) persists in insanitary or injurious practices that
9-22 tend to imperil or retard the employee's recovery; or
9-23 (2) refuses to submit to medical, surgical,
9-24 chiropractic, or other remedial treatment recognized by the state
9-25 that is reasonably essential to promote the employee's recovery.
9-26 SECTION 13. Section 502.068, Labor Code, is amended to read
9-27 as follows:
10-1 Sec. 502.068. POSTPONEMENT OF HEARING. If an injured
10-2 employee is receiving benefits under this chapter and the director
10-3 [institution] is providing hospitalization, medical treatment, or
10-4 chiropractic care to the employee, the commission may postpone the
10-5 hearing on the employee's claim. An appeal may not be taken from a
10-6 commission order under this section.
10-7 SECTION 14. Section 503.001, Labor Code, is amended to read
10-8 as follows:
10-9 Sec. 503.001. DEFINITIONS. In this chapter:
10-10 (1) "Board" means the risk management board.
10-11 (2) "Commission" means the Texas Workers' Compensation
10-12 Commission.
10-13 (3) "Director" means the director of the State Office
10-14 of Risk Management.
10-15 (4) [(2)] "Employee" means a person employed in the
10-16 service of the system under an appointment or oral or written
10-17 express contract for hire whose name appears on the system's
10-18 payroll.
10-19 (5) [(3)] "Institution" means an institution of higher
10-20 education or agency under the direction of the board of regents of
10-21 The University of Texas System.
10-22 (6) "Office" means the State Office of Risk
10-23 Management.
10-24 (7) [(4)] "System" has the meaning assigned by Section
10-25 65.01(1), Education Code.
10-26 SECTION 15. Section 503.002(b), Labor Code, is amended to
10-27 read as follows:
11-1 (b) For the purpose of applying the provisions listed by
11-2 Subsection (a) to this chapter, "employer" means "the
11-3 institution," "state," "office," "director," or "state agency," as
11-4 applicable.["]
11-5 SECTION 16. Section 503.021(a), Labor Code, is amended to
11-6 read as follows:
11-7 (a) The director [institution] shall pay benefits as
11-8 provided by this chapter to an employee with a compensable injury.
11-9 SECTION 17. Sections 503.061(a) and (c), Labor Code, are
11-10 amended to read as follows:
11-11 (a) The director [Each institution] shall administer this
11-12 chapter.
11-13 (c) The board [institution] may:
11-14 (1) adopt and publish rules and prescribe and furnish
11-15 forms necessary for the administration of this chapter; and
11-16 (2) adopt and enforce rules necessary for the
11-17 prevention of accidents and injuries.
11-18 SECTION 18. Section 503.063(b), Labor Code, is amended to
11-19 read as follows:
11-20 (b) The director [institution] may obtain certified copies
11-21 under this section without charge.
11-22 SECTION 19. Section 503.065, Labor Code, is amended to read
11-23 as follows:
11-24 Sec. 503.065. REPORTS OF INJURIES. (a) In addition to a
11-25 report of an injury filed with the commission under Section
11-26 409.005(a), the director [an institution] shall file a supplemental
11-27 report that contains:
12-1 (1) the name, age, sex, and occupation of the injured
12-2 employee;
12-3 (2) the character of work in which the employee was
12-4 engaged at the time of the injury;
12-5 (3) the place, date, and hour of the injury; and
12-6 (4) the nature and cause of the injury.
12-7 (b) The director [institution] shall file the supplemental
12-8 report on a form obtained for that purpose:
12-9 (1) on the termination of incapacity of the injured
12-10 employee; or
12-11 (2) if the incapacity extends beyond 60 days.
12-12 SECTION 20. Sections 503.066(b), (d), and (e), Labor Code,
12-13 are amended to read as follows:
12-14 (b) On the request of an employee or the director
12-15 [institution], the employee or the director [institution] is
12-16 entitled to have a physician selected by the employee or the
12-17 director [institution], as appropriate, present to participate in
12-18 an examination under Subsection (a) or Section 408.004.
12-19 (d) The director [institution] may have an injured employee
12-20 examined at a reasonable time and at a place suitable to the
12-21 employee's condition and convenient and accessible to the employee
12-22 by a physician selected by the director [institution]. The office
12-23 [institution] shall pay for an examination under this subsection
12-24 and for the employee's reasonable expenses incident to the
12-25 examination. The employee is entitled to have a physician selected
12-26 by the employee present to participate in an examination under this
12-27 subsection.
13-1 (e) The office [institution] shall pay the fee, as set by
13-2 the commission, of a physician selected by the employee under
13-3 Subsection (b) or (d).
13-4 SECTION 21. Section 503.067(a), Labor Code, is amended to
13-5 read as follows:
13-6 (a) The commission may order or direct the director
13-7 [institution] to reduce or suspend the compensation of an injured
13-8 employee who:
13-9 (1) persists in insanitary or injurious practices that
13-10 tend to imperil or retard the employee's recovery; or
13-11 (2) refuses to submit to medical, surgical, or other
13-12 remedial treatment recognized by the state that is reasonably
13-13 essential to promote the employee's recovery.
13-14 SECTION 22. Section 503.068, Labor Code, is amended to read
13-15 as follows:
13-16 Sec. 503.068. POSTPONEMENT OF HEARING. If an injured
13-17 employee is receiving benefits under this chapter and the director
13-18 [institution] is providing hospitalization or medical treatment to
13-19 the employee, the commission may postpone the hearing on the
13-20 employee's claim. An appeal may not be taken from a commission
13-21 order under this section.
13-22 SECTION 23. Section 505.001(a), Labor Code, is amended to
13-23 read as follows:
13-24 (a) In this chapter:
13-25 (1) "Board" means the risk management board.
13-26 (2) "Commission" means the Texas Workers' Compensation
13-27 Commission.
14-1 (3) [(2)] "Department" means the Texas Department of
14-2 Transportation.
14-3 (4) "Director" means the director of the State Office
14-4 of Risk Management.
14-5 (5) [(3)] "Employee" means a person in the service of
14-6 the department under an appointment or express contract of hire and
14-7 whose name appears on the department's payroll.
14-8 (6) [(4)] "Legal beneficiary" has the meaning assigned
14-9 to that term under Section 401.011.
14-10 (7) "Office" means the State Office of Risk
14-11 Management.
14-12 SECTION 24. Section 505.002(b), Labor Code, is amended to
14-13 read as follows:
14-14 (b) For the purpose of applying the provisions listed by
14-15 Subsection (a) to this chapter, "employer" means "department,"
14-16 "state," "office," "director," or "state agency," as
14-17 appropriate.["]
14-18 SECTION 25. Section 505.011, Labor Code, is amended to read
14-19 as follows:
14-20 Sec. 505.011. WORKERS' COMPENSATION COVERAGE FOR DEPARTMENT
14-21 EMPLOYEES. The director [department] shall pay benefits as
14-22 provided by this chapter to an employee with a compensable injury.
14-23 SECTION 26. Sections 505.051(a) and (c), Labor Code, are
14-24 amended to read as follows:
14-25 (a) The director [department] shall administer this chapter.
14-26 (c) The board [department] may:
14-27 (1) adopt rules and prescribe and furnish forms
15-1 necessary to effectively administer this chapter; and
15-2 (2) adopt and enforce necessary rules for the
15-3 prevention of accidents and injuries.
15-4 SECTION 27. Section 505.053(b), Labor Code, is amended to
15-5 read as follows:
15-6 (b) The director [department] may obtain certified copies
15-7 under this section without charge.
15-8 SECTION 28. Section 505.055(b), Labor Code, is amended to
15-9 read as follows:
15-10 (b) In addition to subsequent reports of an injury filed
15-11 with the commission under Section 409.005(e), the director
15-12 [department] shall file a subsequent report on a form obtained for
15-13 that purpose:
15-14 (1) on the termination of incapacity of the injured
15-15 employee; or
15-16 (2) if the incapacity extends beyond 60 days.
15-17 SECTION 29. Sections 505.056(c) and (d), Labor Code, are
15-18 amended to read as follows:
15-19 (c) The director [department] may have an injured employee
15-20 examined at a reasonable time and at a place suitable to the
15-21 employee's condition and convenient and accessible to the employee
15-22 by a physician selected by the director [department]. The office
15-23 [department] shall pay for an examination under this subsection and
15-24 for the employee's reasonable expenses incident to the examination.
15-25 (d) On the request of an employee or the director
15-26 [department], the employee or the director [department] is entitled
15-27 to have a physician selected by the employee or the director
16-1 [department] present to participate in an examination under
16-2 Subsection (a) or Section 408.004. The employee is entitled to
16-3 have a physician selected by the employee present to participate in
16-4 an examination under Subsection (c). The office [department] shall
16-5 pay the fee set by the commission of a physician selected by the
16-6 employee under this subsection.
16-7 SECTION 30. Section 505.057(a), Labor Code, is amended to
16-8 read as follows:
16-9 (a) The commission may order or direct the director
16-10 [department] to reduce or suspend the compensation of an injured
16-11 employee if the employee:
16-12 (1) persists in insanitary or injurious practices that
16-13 tend to imperil or retard the employee's recovery; or
16-14 (2) refuses to submit to medical, surgical, or other
16-15 remedial treatment recognized by the state that is reasonably
16-16 essential to promote the employee's recovery.
16-17 SECTION 31. Section 505.058, Labor Code, is amended to read
16-18 as follows:
16-19 Sec. 505.058. POSTPONEMENT OF HEARING. If an injured
16-20 employee is receiving benefits under this chapter and the director
16-21 [department] is providing hospitalization or medical treatment to
16-22 the employee, the commission may postpone the hearing of the
16-23 employee's claim. An appeal may not be taken from a commission
16-24 order under this section.
16-25 SECTION 32. Sections 412.052, 502.022, 502.062, 502.070,
16-26 503.022, 503.062, 503.071, 505.012, and 505.052, Labor Code, are
16-27 repealed.
17-1 SECTION 33. (a) This Act takes effect September 1, 2001.
17-2 (b) The change in law made by this Act to Chapters 502, 503,
17-3 and 505, Labor Code, applies only to a claim for workers'
17-4 compensation benefits based on a compensable injury that occurs on
17-5 or after January 1, 2002. A claim based on a compensable injury
17-6 that occurs before that date is governed by the law in effect on
17-7 the date the injury occurred, and the former law is continued in
17-8 effect for that purpose.
17-9 (c) The risk management board shall adopt rules necessary to
17-10 implement this Act not later than November 1, 2001.