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78S10568 PB-F
By: Giddings H.B. No. 118
A BILL TO BE ENTITLED
AN ACT
relating to the abolition of the Research and Oversight Council on
Workers' Compensation and the transfer of certain statutory
functions of that entity to the Texas Workers' Compensation
Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 401.011(38), Labor Code, is amended to
read as follows:
(38) "Research division [center]" means the division
of the commission [Texas Workers' Compensation Research Center]
established under Chapter 404.
SECTION 2. Section 402.011(b), Labor Code, is amended to
read as follows:
(b) A member is entitled to reimbursement for actual lost
wages or use of leave benefits, if any, for:
(1) attendance at commission meetings and hearings;
(2) preparation for a commission meeting, not to
exceed two days in each calendar quarter;
(3) attendance at a subcommittee meeting, not to
exceed one day each month;
(4) attendance by the chair or vice chair of the
commission at a legislative committee meeting if attendance is
requested by the committee chair; and
(5) attendance at a meeting by a member appointed to
the [Research and Oversight Council on Workers' Compensation or
the] Texas Certified Self-Insured Guaranty Association.
SECTION 3. Section 402.085(a), Labor Code, is amended to
read as follows:
(a) The commission shall release information on a claim to:
(1) the Texas Department of Insurance for any
statutory or regulatory purpose;
(2) a legislative committee for legislative purposes;
(3) a state or federal elected official requested in
writing to provide assistance by a constituent who qualifies to
obtain injury information under Section 402.084(b), if the request
for assistance is provided to the commission;
(4) the research division [Research and Oversight
Council on Workers' Compensation] for research purposes; or
(5) the attorney general or another entity that
provides child support services under Part D, Title IV, Social
Security Act (42 U.S.C. Section 651 et seq.), relating to:
(A) establishing, modifying, or enforcing a
child support or medical support obligation; or
(B) locating an absent parent.
SECTION 4. Section 403.003(b), Labor Code, is amended to
read as follows:
(b) In setting the rate of assessment, the commission may
not consider revenue or expenditures related to:
(1) the State Office of Risk Management;
(2) the research division [and oversight council on
workers' compensation]; or
(3) any other revenue or expenditure excluded from
consideration by law.
SECTION 5. Section 403.007(f), Labor Code, is amended to
read as follows:
(f) The commission's actuary or financial advisor shall
report annually [biannually] to the commission [Research and
Oversight Council on Workers' Compensation] on the financial
condition and projected assets and liabilities of the subsequent
injury fund. The commission shall make the reports available to
members of the legislature and the public. The commission may
purchase annuities to provide for payments due to claimants under
this subtitle if the commission determines that the purchase of
annuities is financially prudent for the administration of the
fund.
SECTION 6. The heading to Chapter 404, Labor Code, is
amended to read as follows:
CHAPTER 404. DUTIES OF RESEARCH DIVISION [AND OVERSIGHT COUNCIL
ON WORKERS' COMPENSATION]
SECTION 7. Section 404.001, Labor Code, is amended to read
as follows:
Sec. 404.001. DEFINITIONS. In this chapter:
(1) "Division" ["Board"] means the research division
[board of directors of the Research and Oversight Council on
Workers' Compensation].
(2) "Research ["Council" means the Research and
Oversight Council on Workers' Compensation.
[(3) "Executive] director" means the [executive]
director of the division [council].
SECTION 8. Section 404.002, Labor Code, is amended to read
as follows:
Sec. 404.002. DIVISION [COUNCIL]; GENERAL POWERS AND
DUTIES. (a) The division [Research and Oversight Council on
Workers' Compensation] is an advisory body to the members of the
commission. For the purposes of implementing this chapter, the
research division is administratively attached to the commission.
The commission shall provide facilities for the division and
fiscal, personnel, and administrative support to the division, but
the division shall be independent of the direction of the
commission.
(b) Notwithstanding Section 402.021, the research director
shall report directly to the members of the commission.
(c) The division shall provide professional research and
data analysis services for use by policymakers, system
administrators, and system stakeholders. The division [council]
shall be operated in a manner that ensures that its research,
findings, and conclusions are factual, fair, and unbiased.
(d) [(b)] The division [council] shall conduct professional
studies and research related to:
(1) the delivery of benefits;
(2) litigation and controversy related to workers'
compensation;
(3) insurance rates and rate-making procedures;
(4) rehabilitation and reemployment of injured
workers;
(5) workplace health and safety issues;
(6) the quality and cost of medical benefits;
(7) the Texas Mutual Insurance Company and the impact
of that company on the workers' compensation system; and
(8) other matters relevant to the cost, quality, and
operational effectiveness of the workers' compensation system.
(e) [(c)] In addition to the studies and research conducted
under Subsection (d) [(b)], the division [council] shall conduct
studies and research related to drugs in the workplace, giving
priority to drug abuse in public and private establishments in
which drug abuse could result in serious consequences to the
public. The studies and research must include a survey designed to
identify future needs and current efforts of employers to
counteract drug abuse and its effects in the workplace.
(f) [(d)] The division [council] shall identify, collect,
maintain, and analyze the key information required to assess the
operational effectiveness of the workers' compensation system. The
division [council] shall provide the information obtained under
this subsection to the members of the commission, the governor, and
the legislature on a quarterly basis.
(g) [(e)] The division [council], with the approval of the
commission [board], may apply for and spend federal funds to
implement this chapter.
SECTION 9. The heading to Section 404.003, Labor Code, is
amended to read as follows:
Sec. 404.003. DIVISION [COUNCIL] FUNDING; MAINTENANCE TAX.
SECTION 10. Sections 404.003(a), (b), and (e), Labor Code,
are amended to read as follows:
(a) The division [council] is funded through the assessment
of a maintenance tax collected annually from all insurance carriers
except governmental entities.
(b) The commission shall set the rate of the maintenance tax
for the division based on the expenditures authorized and the
receipts anticipated in legislative appropriations. The tax rate
for insurance companies may not exceed one-tenth of one percent of
the correctly reported gross workers' compensation insurance
premiums. The tax rate for certified self-insurers may not exceed
one-tenth of one percent of the total tax base of all certified
self-insurers, as computed under Section 407.103(b).
(e) Amounts received under this section shall be deposited
in the state treasury to the credit of a special account to be used:
(1) for the operation of the division [council]; and
(2) to reimburse the general revenue fund in
accordance with Article 4.19, Insurance Code.
SECTION 11. Section 404.007, Labor Code, is amended to read
as follows:
Sec. 404.007. GENERAL POWERS AND DUTIES OF COMMISSION
REGARDING DIVISION [BOARD]. (a) The commission [board] shall:
(1) approve the operating budget of the division
[council];
(2) adopt rules for the operations of [the board and]
the division [council]; and
(3) approve an annual research agenda for the
division, based on a proposed agenda offered for consideration by
the research director, that includes [conduct] professional
studies and research on [all] matters relevant to the cost,
quality, and operational effectiveness of the workers'
compensation system with consideration as well for research related
to:
(A) [;
[(4) monitor] the cost of income benefits under this
subtitle, with emphasis on the availability and cost of
supplemental income benefits; and
(B) [(5) monitor] the performance and operation
of the Texas Mutual Insurance Company, with emphasis on the insurer
of last resort program[;
[(6) hold regular public hearings and receive
testimony and reports from:
[(A) the commission;
[(B) the Texas Mutual Insurance Company;
[(C) the Texas Department of Insurance;
[(D) the State Office of Risk Management; and
[(E) any other public or private entity that is
involved in the workers' compensation system;
[(7) receive information about workers' compensation
rules and operations of an entity listed in Subdivision (6); and
[(8) review specific recommendations for legislation
relating to the Texas Workers' Compensation Act formally proposed
by an entity listed in Subdivision (6)].
(b) With the approval of the members of the commission, the
division [The board] shall report to the governor, lieutenant
governor, and speaker of the house of representatives not later
than December 31 of each even-numbered year. The report must
include:
(1) the activities of the division [council];
(2) identification of any problems in the workers'
compensation system, with recommendations on how to improve the
system [for regulatory and legislative action based on research or
testimony]; and
(3) the status of the effectiveness of the workers'
compensation system to provide adequate, equitable, and timely
benefits to injured workers at a reasonable cost to employers, with
recommendations for any additional necessary research.
(c) The division [board] shall publish and disseminate its
studies to interested persons and may determine charges for the
publications as necessary to achieve optimal dissemination.
(d) The commission [board] may:
(1) delegate powers to the research [executive]
director as it considers appropriate, including general guidance on
the identification of information needs and the conduct of
research;
(2) contract with other persons, including
institutions of higher education, for conducting economical
studies of high quality for the division [council]; and
(3) [contract with the commission for a fiscal,
personnel, or other support function;
[(4)] appoint expert advisory committees, composed of
system stakeholders, to provide technical assistance in conducting
research[; and
[(5) request reports and other information on workers'
compensation from an entity listed in Subsection (a)(6). Requests
made under this subsection shall be reasonable in scope and shall
take into account the availability of the information requested,
the preparation time required, and other relevant circumstances].
[(e) The board may take action by majority vote when a
quorum is present.]
SECTION 12. Section 404.008, Labor Code, is amended to read
as follows:
Sec. 404.008. RESEARCH [EXECUTIVE] DIRECTOR;
APPROPRIATIONS REQUEST. (a) The commission [board] shall appoint a
research [employ an executive] director, who shall administer the
division [council] in accordance with commission [board] policies.
The research [executive] director serves at the pleasure of the
commission [board].
(b) The research [executive] director shall hire staff as
necessary to accomplish the objectives of the division [council],
and may delegate powers and duties to members of that staff as
necessary.
(c) The research [executive] director shall prepare a
request for legislative appropriations for the operations of the
division for consideration and approval by the commission
[council]. If the request is approved by the commission [board],
the [board shall submit the request to the commission. The]
commission shall include the request in the commission's
legislative appropriations request.
(d) The research [executive] director shall prepare
annually a complete and detailed written report accounting for all
funds received and disbursed by the division [council] during the
preceding fiscal year. The annual report must meet the reporting
requirements applicable to financial reporting provided by the
General Appropriations Act.
[(e) The executive director shall develop an intra-agency
career ladder program that addresses opportunities for mobility and
advancement for employees within the council. The program shall
require intra-agency posting of all positions concurrently with any
public posting.
[(f) The executive director shall develop a system of annual
performance evaluations that are based on documented employee
performance. All merit pay for council employees must be based on
the system established under this subsection.
[(g) The executive director shall prepare and maintain a
written policy statement to assure implementation of a program of
equal employment opportunity under which all personnel
transactions are made without regard to race, color, disability,
sex, religion, age, or national origin. The policy statement must
include:
[(1) personnel policies, including policies relating
to recruitment, evaluation, selection, appointment, training, and
promotion of personnel that are in compliance with the requirements
of Chapter 21;
[(2) a comprehensive analysis of the council workforce
that meets federal and state guidelines;
[(3) procedures by which a determination can be made
about the extent of underuse in the council workforce of all persons
for whom federal or state guidelines encourage a more equitable
balance; and
[(4) reasonable methods to appropriately address
those areas of underuse.
[(h) A policy statement prepared under Subsection (g) must:
[(1) cover an annual period;
[(2) be updated annually;
[(3) be reviewed by the Commission on Human Rights for
compliance with Subsection (g)(1); and
[(4) be filed with the governor's office.
[(i) The governor's office shall deliver a biennial report
to the legislature based on the information received under
Subsection (h). The report may be made separately or as a part of
other biennial reports made to the legislature.
[(j) The executive director shall provide to members of the
board and to council employees, as often as necessary, information
regarding their qualification for office or employment under this
chapter and their responsibilities under applicable laws relating
to standards of conduct for state officers or employees.]
SECTION 13. Section 404.009, Labor Code, is amended to read
as follows:
Sec. 404.009. RESEARCH AGENDA. (a) The research
[executive] director annually shall prepare a research agenda for
commission [board] review and approval.
(b) With commission approval, the division [The board]
shall publish annually in the Texas Register a proposed research
agenda and shall distribute the proposed agenda to educational
institutions in this state that have a demonstrated research
capacity.
(c) The commission [board] shall accept public comments on
the proposed agenda and shall conduct a public hearing on the agenda
if a hearing is requested by interested persons.
SECTION 14. Section 404.010, Labor Code, is amended to read
as follows:
Sec. 404.010. COORDINATION WITH OTHER STATE AGENCIES;
CONFIDENTIALITY. (a) As required to fulfill the objectives of the
division [council], the division [council] is entitled to access to
the files and records of:
(1) the commission;
(2) the Texas Workforce Commission;
(3) the Texas Department of Insurance;
(4) the Texas Department of Human Services;
(5) the Texas Mutual Insurance Company; and
(6) other state agencies.
(b) A state agency shall assist and cooperate in providing
the information to the division [council].
(c) Information that is confidential under state law is
accessible to the division [council] under rules of confidentiality
and remains confidential.
(d) The identity of an individual or entity selected to
participate in a division [council] survey or who participates in
such a survey is confidential and is not subject to public
disclosure under Chapter 552, Government Code.
SECTION 15. The heading to Section 407A.301, Labor Code, as
added by H.B. 2095, Acts of the 78th Legislature, Regular Session,
2003, is amended to read as follows:
Sec. 407A.301. MAINTENANCE TAX FOR COMMISSION AND RESEARCH
DIVISION [AND OVERSIGHT COUNCIL].
SECTION 16. Section 407A.301(a), Labor Code, as added by
H.B. 2095, Acts of the 78th Legislature, Regular Session, 2003, is
amended to read as follows:
(a) Each group shall pay a self-insurance group maintenance
tax under this section for:
(1) the administration of the commission;
(2) the prosecution of workers' compensation insurance
fraud in this state; and
(3) the research division [Research and Oversight
Council on Workers' Compensation].
SECTION 17. Sections 408.0221(f), (h), and (i), Labor Code,
are amended to read as follows:
(f) The advisory committee shall gather information from
other entities, including the research division [Research and
Oversight Council on Workers' Compensation], the Texas Health Care
Information Council, the Texas Department of Insurance, the Texas
Department of Health, and the Employees Retirement System of Texas.
(h) The advisory committee and the research division
[Research and Oversight Council on Workers' Compensation] shall
develop evaluation standards and specifications as necessary to
implement a regional network report card. The commission shall
ensure that the report card is published and available for
inspection. The commission may procure services as necessary to
produce the report card. The report card, at a minimum, must be
based on contracted reviews and must include a risk-adjusted
evaluation of:
(1) employee access to care;
(2) coordination of care and return to work;
(3) communication among system participants;
(4) return-to-work outcomes;
(5) health-related outcomes;
(6) employee, health care provider, employer, and
insurance carrier satisfaction;
(7) disability and re-injury prevention;
(8) appropriate clinical care;
(9) health care costs;
(10) utilization of health care; and
(11) statistical outcomes of medical dispute
resolution provided by independent review organizations.
(i) The regional network administrators shall report
quarterly to the commission and the advisory committee on the
progress of implementing the regional networks and shall submit
consolidated annual reports. The research division [Research and
Oversight Council on Workers' Compensation] shall report to the
legislature by January 1 of each odd-numbered year on the status of
the implementation of regional networks under this section.
SECTION 18. The following laws are repealed:
(1) Sections 404.0015, 404.004, 404.0041, 404.005,
404.0055, 404.006, 404.0091, and 404.0092, Labor Code; and
(2) Section 413.021(f), Labor Code.
SECTION 19. (a) The Research and Oversight Council on
Workers' Compensation and its board of directors are abolished on
the effective date of this Act.
(b) All state records and other property, and unexpended and
unobligated appropriations of the Research and Oversight Council on
Workers' Compensation or its board as of August 31, 2003, are
transferred to the research division of the Texas Workers'
Compensation Commission for the dedicated purpose of implementing
Chapter 404, Labor Code, as amended by this Act.
(c) All employees as of August 31, 2003, of the Research and
Oversight Council on Workers' Compensation become employees of the
research division of the Texas Workers' Compensation Commission as
established under Chapter 404, Labor Code, as amended by this Act.
(d) Any reference in law to the Research and Oversight
Council on Workers' Compensation, or to the board of directors of
that entity, means the research division of the Texas Workers'
Compensation Commission or the members of that commission, as
appropriate.
(e) The special account created under Section 404.003,
Labor Code, as that section existed immediately before amendment by
this Act, is re-created and redesignated as a special account to be
used for the purposes designated in Section 404.003, Labor Code, as
amended by this Act.
SECTION 20. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect November 1, 2003.