By:  Brimer                                                       S.B. No. 1529


A BILL TO BE ENTITLED

AN ACT

relating to the disposition and administration of the workers' 
compensation subsequent injury fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 403.006, Labor Code, is amended to read 
as follows:      
	Sec. 403.006.  SUBSEQUENT INJURY FUND.  (a)  The subsequent 
injury fund is a special fund in the state treasury.
	(b)  The subsequent injury fund is liable for:                                 
		(1)  the payment of compensation as provided by Section 
408.162;            
		(2)  reimbursement of insurance carrier claims of 
overpayment of benefits made under an interlocutory order or 
decision of the commission as provided by this subtitle, consistent 
with the priorities established by rule by the commission;
		(3)  reimbursement of insurance carrier claims as 
provided by Sections 408.042 and 413.0141, consistent with the 
priorities established by rule by the commission; and
		(4)  the payment of an assessment of feasibility and 
the development of regional networks established under Section 
408.0221 or other networks provided for by the legislature.
	(c)  The governor with the advice and consent of the senate 
[executive director] shall appoint an administrator for the 
subsequent injury fund.  The administrator shall serve at the 
pleasure of the governor.
	(d)  Based on an actuarial assessment of the funding 
available under Section 403.007(e), the commission may make partial 
payment of insurance carrier claims under Subsection (b)(3).
	SECTION 2.  Section 403.007 (e) and (f), Labor Code, are 
amended to read as follows:
	(e)  If the commission determines that the funding under 
Subsection (a) is not adequate to meet the expected obligations of 
the subsequent injury fund established under Section 403.006, the 
fund shall be supplemented by the collection of a maintenance tax 
paid by insurance carriers, other than a governmental entity, as 
provided by Sections 403.002 and 403.003.  The rate of assessment 
must be adequate to provide 100 [120] percent of the projected 
unfunded liabilities of the fund for the next biennium as certified 
by an independent actuary or financial advisor.
	(f)  The commission's actuary or financial advisor shall 
report [bi]annually to the 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 the governor, the 
lieutenant governor, the comptroller of public accounts, 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 by record vote that the 
purchase of annuities is financially prudent for the administration 
of the fund.
	SECTION 3.  The current term of appointment for the 
administrator of the subsequent injury fund expires on the 
effective date of this Act so that the governor may appoint the 
administrator as provided for in this Act.
	SECTION 4.  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 September 1, 2003.