Amend CSHB 7 on page 254, between lines 13 and 14, by 
inserting a new SECTION 1.3955 to read as follows:
	SECTION 1.3955.  Chapter 410, Labor Code, is amended by 
adding Subchapter H to read as follows:

SUBCHAPTER H.  PILOT PROGRAM ON

VOLUNTARY ALTERNATIVE AGREEMENTS
	Sec. 410.351.  PILOT PROGRAM;  RECOGNITION OF MUTUALLY 
VOLUNTARY ALTERNATIVE AGREEMENTS.  (a)  Notwithstanding any other 
provision of this subtitle and except as provided by Subsections 
(c) and (d), if a mutually voluntary agreement entered into under 29 
U.S.C.  Section 151 et seq., 45 U.S.C.  Section 151 et seq., or 
Chapter 174, Local Government Code, between a certified 
self-insurer, an individually insured employer, or an employer 
engaged in construction, construction maintenance, or construction 
inspection, and a labor organization that is the recognized or 
certified exclusive representative for employees employed by such a 
self-insurer or employer who receive workers' compensation 
coverage is filed with the department, a voluntarily mutually 
agreed-on provision of the agreement is valid and binding on the 
parties to the agreement if it does any or all of the following:
		(1)  establishes an alternative dispute resolution 
system, which may include provisions for conciliation, mediation, 
and arbitration that supplement, modify, or replace the provisions 
of Subchapter C;
		(2)  adopts an agreed-on list of health care providers 
of medical treatment as the exclusive source of all medical 
treatment provided under this subtitle;
		(3)  adopts a limited list of physicians to conduct 
independent medical examinations that the parties may agree is the 
exclusive source of independent medical examiners under this 
subtitle;
		(4)  adopts a case management, patient advocate, 
utilization review, or similar program or combination of programs 
intended to improve the quality and control the cost of medical and 
related treatment and care;
		(5)  adopts a light-duty, modified-job, or 
return-to-work program; or
		(6)  adopts a vocational rehabilitation or retraining 
program that uses an agreed-on list of providers of rehabilitation 
services as the exclusive source of providers of rehabilitation 
services under this subtitle.
	(b)  A mutually voluntary agreement described by this 
section may provide that arbitration held under the agreement:
		(1)  is binding on the parties; or                                     
		(2)  is subject to review in the same manner as a final 
decision issued by a hearing officer under Subchapter D.
	(c)  This section may not be construed to permit an agreement 
that:   
		(1)  diminishes an employee's entitlement to benefits 
for total or partial disability, vocational rehabilitation, or 
medical treatment that are fully paid by the employee's employer or 
as otherwise provided by this subtitle; or
		(2)  denies an employee the right to legal 
representation at each stage of the alternative dispute resolution 
process under this chapter.
	(d)  Any portion of an agreement that violates Subsection (c) 
is null and void.
	Sec. 410.352.  RULES.  The commissioner shall adopt rules as 
necessary to implement this subchapter.
	Sec. 410.353.  ANNUAL REPORT.  (a)  Not later than September 
30, 2006, and annually thereafter, the commissioner shall prepare 
and submit to the lieutenant governor, the speaker of the house of 
representatives, and the legislature a report, based on aggregate 
data, that   includes the following regarding the operation of the 
pilot program established under Section 410.351:
		(1)  the number of employees and the amount of payroll 
covered by agreements filed under Section 410.351;
		(2)  the number of claims filed under the pilot 
program;             
		(3)  the average cost per claim, reported by cost 
components if practicable;
		(4)  the number of litigated claims, including the 
number of claims submitted to mediation, arbitration, and judicial 
review;
		(5)  the number of contested claims resolved prior to 
arbitration;   
		(6)  the projected incurred costs and actual costs of 
claims;        
		(7)  the safety history of entities participating in 
the pilot program;
		(8)  the number of employees participating in the pilot 
program receiving vocational rehabilitation services; and
		(9)  the number of employees participating in the pilot 
program participating in light-duty programs.
	(b)  The commissioner may require the self-insurers and 
employers described by Section 410.351(a) to provide any necessary 
information required for the report.
	Sec. 410.354.  EXPIRATION.  This subchapter expires and the 
pilot program is abolished effective September 1, 2015.