By: Giddings H.B. No. 2808
A BILL TO BE ENTITLED
AN ACT
relating to workers' compensation insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1, Article 5.76-3, Insurance Code, is
amended to read as follows:
Sec. 1. In this article:
(1) "Board" means the board of directors of the
company.
(2) "Commission" means the Texas Workers' Compensation
Commission.
(3) "Commissioner" means the commissioner of the Texas
Workers' Compensation Commission.
(4) "Company" means the Texas Mutual Insurance
Company.
(5) [(4)] "Fund" means the Texas Workers' Compensation
Insurance Fund.
(6) [(5)] "Workers' compensation insurance" means the
insurance for any risk under:
(A) Subtitle A, Title 5, Labor Code (the Texas
Workers' Compensation Act);
(B) the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. Section 901);
(C) the Federal Mine Safety and Health Act of
1977 (33 U.S.C. Section 801 et seq.);
(D) the Defense Base Act (42 U.S.C. Sections
1651-1654);
(E) the federal Employers' Liability Act (45
U.S.C. Section 51 et seq.);
(F) the Nonappropriated Fund Instrumentalities
Act (5 U.S.C. Sections 8171-8173);
(G) the Outer Continental Shelf Lands Act (43
U.S.C. Section 1331 et seq.);
(H) the Merchant Marine Act of 1920 (46 U.S.C.
Section 861 et seq.); or
(I) Chapter 504, Labor Code.
SECTION 2. Sections 3(d) and (l), Article 5.76-3, Insurance
Code, is amended to read as follows:
(d) A person may not serve as a member of the board if the
person, an individual related to the person within the second
degree by consanguinity or affinity, or an individual residing in
the same household with the person:
(1) is registered or licensed under this code or is
required to be registered or licensed under this code;
(2) is employed by or acts as a consultant to a person
registered or licensed under this code or required to be registered
or licensed under this code;
(3) owns, controls, has a financial interest in, or
participates in the management of an organization registered or
licensed under this code or required to be registered or licensed
under this code;
(4) receives a substantial tangible benefit from the
company or the Texas Department of Insurance; [or]
(5) is an officer, employee, or consultant of an
association in the field of insurance; or
(6) is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the board.
(l) The board shall hold meetings at least once each
calendar quarter and at other times at the call of the chairman and
at times established in the company's bylaws. Special meetings may
be called by any two members of the board on ten [two] days notice.
SECTION 3. Section 4(c), Article 5.76-3, Insurance Code, is
amended to read as follows:
(c) The board shall appoint an internal auditor. The
internal auditor serves at the pleasure of the board. The internal
auditor must report any significant adverse audit issue immediately
to each member of the board.
SECTION 4. Sections 8(e), (h), and (i), Article 5.76-3,
Insurance Code, is amended to read as follows:
(e) The policyholder shall obtain the safety consultation
not later than the 30th day after the effective date of the policy
and shall obtain the safety consultation from the division of
workers' health and safety of the commission, the company, or
another professional source approved for that purpose by the
division of workers' health and safety. The safety consultant
shall file a written report with the commission and the
policyholder within 30 days after the conclusion of the
consultation setting out any hazardous conditions or practices
identified by the safety consultation.
(h) In accordance with rules adopted by the commission, not
earlier than 90 days or later than six months after the development
of an accident prevention plan under Subsection (f) of this
section, the division of workers' health and safety of the
commission shall conduct a follow-up inspection of the
policyholder's premises. The commission may require the
participation of the safety consultant who performed the initial
consultation and developed the safety plan. If the division
determines that the policyholder has complied with the terms of the
accident prevention plan or has implemented other accepted
corrective measures, the division shall so certify. If a
policyholder fails or refuses to implement the accident prevention
plan or other suitable hazard abatement measures, the policyholder
may elect to cancel coverage not later than the 30th day after the
date of the division determination. If the policyholder does not
elect to cancel, the company may cancel the coverage or the
commission may assess an administrative penalty not to exceed
$5,000. Each day of noncompliance constitutes a separate
violation. Penalties collected under this section shall be
deposited in the general revenue fund to the credit of the
commission [or reappropriated to the commission to offset the costs
of implementing and administering this section].
(i) In assessing an administrative penalty, the commission
may consider any matter that justice may require and shall
consider:
(1) the seriousness of the violation, including the
nature, circumstances, consequences, extent, and gravity of the
prohibited act, and the nature and extent of any injuries to the
employee;
(2) the history and extent of previous administrative
violations;
(3) the demonstrated good faith of the violator,
including actions taken to rectify the consequences of the
prohibited act;
(4) any economic benefit resulting from the prohibited
act; and
(5) the penalty necessary to deter future violations.
SECTION 5. Section 12(f), Article 5.76-3, Insurance Code,
is amended to read as follows:
(f) Notwithstanding any other law, the company may issue
grants to the commission as provided by Section 402.062, Labor
Code. Funding for a grant under this subsection may come only from
the company's surplus. The amount of the grants may not exceed $2.2
million for the six-year [four-year] period of September 1, 1999,
through September 1, 2005 [2003]. This subsection expires
September 1, 2005 [2003].
SECTION 6. This Act takes effect September 1, 2003.