SRC-MSY S.B. 675 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 675
78R5078 PB-FBy: Estes
Business and Commerce
4/25/2003
As Filed


DIGEST AND PURPOSE 

Current law specifies that workers' compensation benefits are the
exclusive remedy of an employee covered by workers' compensation insurance
against the employer or an agent or employee of the employer for
work-related injuries sustained by an employee.  Injured employees must
look exclusively to the insurance carrier for compensation for injuries
sustained on the job and are prohibited from seeking common law remedies
from the employer.  Business entities such as parent and subsidiary
corporations are currently omitted from law that specifies which entities
are covered under an employer's workers' compensation policy.  Because of
this omission, these entities may find themselves defendants in a common
law suit brought by injured employees who work for a business unit the
entities either own or control.  S.B. 675 prohibits injured employees from
seeking common law remedies against a parent corporation, subsidiary
corporation, or subsidiary of a parent corporation of an employer that is
named insured on an employer's policy of worker's compensation insurance. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 408.001(a), Labor Code, to provide that in
addition to the employer, certain additional entities connected to the
employer are entities against whom recovery of worker's compensation
benefits is the only remedy of an employee covered by workers'
compensation insurance, or a legal beneficiary of such an employee, for
the death or injury of that employee.  Makes conforming changes. 

SECTION 2.  Effective date:  September 1, 2003.
Makes application of this Act prospective.