H.B. 22 78(2)    BILL ANALYSIS


H.B. 22
By: Swinford
Government Reform
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

In 1989, in response to recommendations of the Joint Select Committee on
Workers' Compensation, a research entity was formed to provide, unbiased,
independent research which was deemed to be critical to the long term
functioning of the system.  The Research and Oversight Council funding was
vetoed at the conclusion of the 78th regular legislative session, mainly
due to concerns regarding their oversight function. 

HB 22 would provide an appropriation to the Texas Department of Insurance
to continue funding of the research functions this agency has performed.
This appropriation is equal to the appropriation given to the ROC in HB 1
for research related functions.  This funding is provided by a maintenance
tax paid by workers' compensation insurance carriers, and is money that we
will not collect if we do not appropriate it. 

It is important that the funding for objective research in this area be
continued for several reasons, not the least of which is the upcoming
sunset review of the Workers' Compensation Commission in 2005. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

HB 22 creates a new chapter in the Labor Code, entitled "Workers'
Compensation Research." 

HB 22 charges the Texas Department of Insurance with worker's compensation
research duties, and specifies that they will conduct studies and research
related to various issues associated with workers' compensation.  These
issues include delivery of benefits, insurance rates and rate-making
procedures, the quality and cost of medical benefits as well as other
associated subject areas.  HB 22 allows the department to apply for and
spend grant funds to implement their new role. 

HB  22 sets forth a funding mechanism, the assessment of a maintenance tax
collected annually.  The department will set the rate of the maintenance
tax based on the expenditures authorized and receipts anticipated in
legislative appropriations.  HB 22 sets a rate that the maintenance tax
may not exceed. 

HB  22 allows the department access to certain files of other agencies,
including the Texas Workforce Commission and the Texas State Office of
Risk Management.  It also specifies that all confidentiality requirements
under state law be met. 

HB 22 effectively abolishes the Research and Oversight Council on Workers'
Compensation, including the council's board of directors upon the
effective date of this Act.  All unexpended and unobligated appropriations
of the council, as well as all employees are transferred to the Texas
Department of Insurance.  Any reference in law to the Research and
Oversight Council on Workers' Compensation or its associated boards is now
referring to the Texas Department of Insurance or the commissioner of
insurance. 

 HB 22 allocates a sum to be dispersed to the Texas Department of
Insurance for each fiscal year of the biennium beginning September 1,
2003. 


EFFECTIVE DATE

This Act takes immediate effect if it receives the vote necessary. If this
Act does not receive the vote necessary, it will take effect December 1,
2003.