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 * * * * *