By Dukes H.B. No. 2976
77R9097 JMM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the funding of the State Office of Risk Management.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 412.012, Labor Code, is amended to read as
1-5 follows:
1-6 Sec. 412.012. FUNDING. [(a)] The office shall be
1-7 administered through money appropriated by the legislature and
1-8 through [(1) interagency contracts for the risk management program
1-9 and (2)] the allocation program for the financing of state
1-10 workers' compensation benefits and risk management costs.
1-11 Sec. 412.0121. INTERAGENCY CONTRACTS. (a) [(b) Interagency
1-12 Contracts. (1)] Each state agency shall enter into an interagency
1-13 contract with the office under Chapter 771, Government Code, to pay
1-14 the costs incurred by the office in administering this chapter for
1-15 the benefit of that state agency.
1-16 (b) Costs payable under the contract include the cost of:
1-17 (1) [(A)] services of office employees;
1-18 (2) [(B)] materials; and
1-19 (3) [(C)] equipment, including computer hardware and
1-20 software.
1-21 (c) [(2)] The [amount of the] costs of risk management
1-22 services provided [to be paid] by a state agency under the
1-23 interagency contract shall be allocated in the same proportion and
1-24 determined in the same manner as the costs of workers' compensation
2-1 [is based on:]
2-2 [(A) the number of employees of the agency
2-3 compared with the total number of employees of all state agencies
2-4 to which this chapter applies;]
2-5 [(B) the dollar value of the agency's property
2-6 and asset and liability exposure compared to that of all state
2-7 agencies to which this chapter applies; and]
2-8 [(C) the number and aggregate cost of claims and
2-9 losses incurred by the state agency compared to those incurred by
2-10 all state agencies to which this chapter applies].
2-11 Sec. 412.0122. STATE SELF-INSURING FOR WORKERS'
2-12 COMPENSATION. [(c)] The state is self-insuring with respect to an
2-13 employee's compensable injury. [The legislature shall appropriate
2-14 the amount designated by the appropriation structure for the
2-15 payment of state workers' compensation claims costs to the office.
2-16 This section does not affect the reimbursement of claims costs by
2-17 funds other than general revenue funds, as provided by the General
2-18 Appropriations Act.]
2-19 Sec. 412.0123. ALLOCATION OF WORKERS' COMPENSATION AND RISK
2-20 MANAGEMENT COSTS. (a) The office shall establish an allocation
2-21 program for the payment of workers' compensation claims and risk
2-22 management services that are incurred by a state agency subject to
2-23 Chapter 501.
2-24 (b) The office shall establish a formula for allocating the
2-25 state's workers' compensation costs among covered agencies based on
2-26 the claims experience of each agency, the current and projected
2-27 size of each agency's workforce, each agency's payroll, the related
3-1 costs incurred in administering claims, and other factors that the
3-2 office determines to be relevant. The agency may provide modifiers
3-3 to the formula to promote the effective implementation of risk
3-4 management programs by state agencies.
3-5 (c) The board has final authority to determine the
3-6 assessments to be paid by the covered agencies.
3-7 Sec. 412.0124. DEPOSIT OF WORKERS' COMPENSATION SUBROGATION
3-8 RECOVERIES. [(d) State Workers' Compensation Account. (1)] All
3-9 money recovered by the director from a third party through
3-10 subrogation shall be deposited into the state workers' compensation
3-11 account in general revenue.
3-12 [(2) Funds deposited under this section may be used
3-13 for the payment of compensation and other benefits to state
3-14 employees.]
3-15 SECTION 2. This Act takes effect September 1, 2001.