1-1     By:  Dukes (Senate Sponsor - Fraser)                  H.B. No. 2976
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 10, 2001, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the funding of the State Office of Risk Management.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1. Section 412.012, Labor Code, is amended to read as
1-11     follows:
1-12           Sec. 412.012.  FUNDING. [(a)]  The office shall be
1-13     administered through money appropriated by the legislature and
1-14     through [(1)  interagency contracts for the risk management program
1-15     and (2)]  the allocation program for the financing of state
1-16     workers' compensation benefits and risk management costs.
1-17           Sec. 412.0121.  INTERAGENCY CONTRACTS. (a)  [(b)  Interagency
1-18     Contracts.  (1)]  Each state agency shall enter into an interagency
1-19     contract with the office under Chapter 771, Government Code, to pay
1-20     the costs incurred by the office in administering this chapter for
1-21     the benefit of that state agency.
1-22           (b)  Costs payable under the contract include the cost of:
1-23                 (1) [(A)]  services of office employees;
1-24                 (2) [(B)]  materials; and
1-25                 (3) [(C)]  equipment, including computer hardware and
1-26     software.
1-27           (c) [(2)]  The [amount of the] costs of risk management
1-28     services provided [to be paid] by a state agency under the
1-29     interagency contract shall be allocated in the same proportion and
1-30     determined in the same manner as the costs of workers' compensation
1-31     [is based on:]
1-32                       [(A)  the number of employees of the agency
1-33     compared with the total number of employees of all state agencies
1-34     to which this chapter applies;]
1-35                       [(B)  the dollar value of the agency's property
1-36     and asset and liability exposure compared to that of all state
1-37     agencies to which this chapter applies; and]
1-38                       [(C)  the number and aggregate cost of claims and
1-39     losses incurred by the state agency compared to those incurred by
1-40     all state agencies to which this chapter applies].
1-41           Sec. 412.0122.  STATE SELF-INSURING FOR WORKERS'
1-42     COMPENSATION. [(c)]  The state is self-insuring with respect to an
1-43     employee's compensable injury. [The legislature shall appropriate
1-44     the amount designated by the appropriation structure for the
1-45     payment of state workers' compensation claims costs to the office.
1-46     This section does not affect the reimbursement of claims costs by
1-47     funds other than general revenue funds, as provided by the General
1-48     Appropriations Act.]
1-49           Sec. 412.0123.  ALLOCATION OF WORKERS' COMPENSATION AND RISK
1-50     MANAGEMENT COSTS. (a)  The office shall establish an allocation
1-51     program for the payment of workers' compensation claims and risk
1-52     management services that are incurred by a state agency subject to
1-53     Chapter 501.
1-54           (b)  The office shall establish a formula for allocating the
1-55     state's workers' compensation costs among covered agencies based on
1-56     the claims experience of each agency, the current and projected
1-57     size of each agency's workforce, each agency's payroll, the related
1-58     costs incurred in administering claims, and other factors that the
1-59     office determines to be relevant.  The agency may provide modifiers
1-60     to the formula to promote the effective implementation of risk
1-61     management programs by state agencies.
1-62           (c)  The board has final authority to determine the
1-63     assessments to be paid by the covered agencies.
1-64           Sec. 412.0124.  DEPOSIT OF WORKERS' COMPENSATION SUBROGATION
 2-1     RECOVERIES. [(d)  State Workers' Compensation Account.  (1)] All
 2-2     money recovered by the director from a third party through
 2-3     subrogation shall be deposited into the state workers' compensation
 2-4     account in general revenue.
 2-5                 [(2)  Funds deposited under this section may be used
 2-6     for the payment of compensation and other benefits to state
 2-7     employees.]
 2-8           SECTION 2. This Act takes effect September 1, 2001.
 2-9                                  * * * * *