80R13740 ABC-D

By: Brimer S.B. No. 908

Substitute the following for S.B. No. 908:

By: GiddingsC.S.S.B. No. 908C.S.S.B. No. 908 Giddings C.S.S.B. No. 908

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the State Office of Risk Management.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 412.011, Labor Code, is amended by adding Subsections (f), (g), (h), and (i) to read as follows:

(f) The office shall work with each state agency to develop an agency-level business continuity plan under Section 412.054.

(g) The office shall make available to each agency subject to Section 412.054 guidelines and models for each element listed in Section 412.054. The office shall assist the agency as necessary to ensure that:

(1) agency staff understands each element of the business continuity plan developed under Section 412.054; and

(2) each agency practices implementation of the plan.

(h) The office and the Texas Building and Procurement Commission shall adopt a memorandum of understanding that:

(1) includes the type, amount, and frequency of safety-related information that may be shared between the office and the commission; and

(2) designates points of contact within the office and the commission to coordinate the sharing of information.

(i) The office shall:

(1) maintain a system to promptly and efficiently act on complaints filed with the office;

(2) maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and disposition of the complaint;

(3) make information available describing the office's procedures for complaint investigation and resolution; and

(4) periodically notify the complaint parties of the status of the complaint until final disposition.

SECTION 2. Subchapter B, Chapter 412, Labor Code, is amended by adding Sections 412.0125 through 412.0129 to read as follows:

Sec. 412.0125. RETURN-TO-WORK COORDINATION SERVICES; CASE MANAGEMENT. (a) The office shall provide each state agency with return-to-work coordination services as necessary to facilitate an injured employee's return to employment. The office shall notify each state agency of the availability of return-to-work coordination services.

(b) As part of return-to-work coordination services under this section, the office shall:

(1) establish a time frame for case management of an injured employee that ensures services are provided to the injured employee as soon as practicable to improve the employee's chance of returning to work as quickly as possible;

(2) provide guidance to each state agency to identify appropriate services for an injured employee;

(3) adopt rules that set standards and provide guidance to a state agency interacting with an injured employee; and

(4) implement any other services provided under Section 413.021 that will facilitate the reintegration of an injured employee.

Sec. 412.0126. ANALYSIS. (a) The board shall adopt rules as necessary to collect data on lost time and return-to-work outcomes of each state agency to allow full evaluations of successes and of barriers to achieving timely return to work after an injury.

(b) The office shall:

(1) collect and analyze data from each state agency regarding lost time, including sick leave and annual leave used by an injured employee;

(2) identify state agencies that need additional training or case management services related to return-to-work services;

(3) modify as necessary the office's assessment computation to encourage state agencies to effectively reduce workers' compensation costs;

(4) incorporate as necessary return-to-work goals developed by the division of workers' compensation under Section 413.025;

(5) work with the workers' compensation research and evaluation group to develop analytical tools to assist the office with its duties under this section;

(6) require state agencies to report information in a standardized format;

(7) monitor the information reported by each state agency; and

(8) evaluate the information provided under this section to determine outcomes over time for each state agency.

Sec. 412.0127. PAYMENT BY ELECTRONIC FUNDS TRANSFER. (a) Notwithstanding Section 403.016, Government Code, and except as provided by Subsection (b), the office shall pay an employee entitled to an indemnity benefit payment using the same payment method as the method by which the employee receives the employee's wages.

(b) The office shall adopt rules to facilitate the use of electronic funds transfer as the preferred method of payment under this section.

(c) The office may issue an indemnity benefit payment by check on request or if electronic funds transfer is not feasible.

Sec. 412.0128. CONFIDENTIALITY OF INJURY INFORMATION. Information in or derived from a workers' compensation claim file regarding an employee is confidential and may not be disclosed by the office except as provided by this subchapter or other law.

Sec. 412.0129. STUDY ON CATASTROPHIC CLAIMS. (a) The office shall study options to prepare state agencies for catastrophic claims.

(b) The study must include information on:

(1) establishing a state employee workers' compensation catastrophe fund outside the state treasury;

(2) purchasing catastrophe reinsurance; and

(3) other options to prepare the state for catastrophic claims.

(c) In performing duties under Subsections (a) and (b), the office:

(1) shall work with the workers' compensation research and evaluation group; and

(2) may contract with a consultant to:

(A) analyze predicted costs of potential disasters; and

(B) estimate the appropriate size for a catastrophe fund or level of reinsurance.

(d) Not later than September 1, 2008, the office shall report the findings of the study conducted under this section to the lieutenant governor, the speaker of the house of representatives, and the appropriate standing committees of the house of representatives and senate with responsibility for oversight of the office.

(e) This section expires September 2, 2008.

SECTION 3. Section 412.021, Labor Code, is amended by adding Subsections (a-1), (g), and (h) and amending Subsections (d) and (f) to read as follows:

(a-1) A person may not be a member of the board if the person or the person's spouse:

(1) is employed by or participates in the management of a business entity or other organization regulated by or receiving money from the office;

(2) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving money from the office; or

(3) uses or receives a substantial amount of tangible goods, services, or money from the office other than compensation or reimbursement authorized by law for risk management board membership, attendance, or expenses.

(d) The governor shall designate one member of the board as presiding officer. The presiding officer shall serve in that capacity at the pleasure of the governor [for a two-year term].

(f) The risk management board and the office are [is] subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the board is abolished and this section expires September 1, 2019 [2007].

(g) Appointments to the board shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointee.

(h) The board shall develop and implement policies that clearly separate the policymaking responsibilities of the board and the management responsibilities of the director and the staff of the risk management office.

SECTION 4. Section 412.022, Labor Code, is amended to read as follows:

Sec. 412.022. TRAINING PROGRAM FOR BOARD MEMBERS. (a) A person who is appointed to and qualifies for office as a member of the board may not vote, deliberate, or be counted as a member in attendance at a meeting of the board until the person completes a training program that complies with this section. [To be eligible to take office as a member of the board, a person appointed to the board must complete at least one course of a training program that complies with this section. If the course has not been completed at the time of the appointment, the training program is to be completed within six months from the date of appointment, failure of which constitutes grounds for removal from the board.]

(b) A training program established under this section must provide information to the member regarding:

(1) the enabling legislation that created the office and the office's programs, functions, rules, and budget [board];

(2) the results of the most recent formal audit of the office [program operated by the board];

(3) the requirements of laws relating to open meetings, public information, administrative procedure, and conflicts of interest [role and functions of the board]; and

(4) [the rules of the board, with an emphasis on the rules that relate to disciplinary and investigatory authority;

[(5)the current budget for the board;

[(6) the results of the most recent formal audit of the board;

[(7)the requirements of:

[(A) the open meetings law, Chapter 551, Government Code;

[(B) the public information law, Chapter 552, Government Code; and

[(C) the administrative procedure law, Chapter 2001, Government Code;

[(8) the requirements of the conflict of interest laws and other laws relating to public officials; and

[(9)] any applicable ethics policies adopted by the office [board] or the Texas Ethics Commission.

(c) A person appointed to the board is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.

SECTION 5. Section 412.023, Labor Code, is amended to read as follows:

Sec. 412.023. EFFECT OF LOBBYING ACTIVITY. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined statewide association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

(b) A person may not be a member of the board and may not be an employee of the office employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of insurance or health care; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of insurance or health care.

(c) A person may not serve as a member of the board or act as the general counsel to the board if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the office [that is regulated by or that has fees regulated by the board].

SECTION 6. Section 412.024, Labor Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a) It is a ground for removal from the board if a member:

(1) does not have at the time of taking office [appointment] the qualifications required by [for appointment to the board other than the requirements of] Section 412.021 [412.022];

(2) does not maintain during service on the board the qualifications required by Section 412.021 [for appointment to the board];

(3) is ineligible for membership under Section 412.021 or [violates a prohibition established by Section] 412.023;

(4) cannot because of illness or incapacity discharge the member's duties for a substantial part of the member's term [for which the member is appointed]; or

(5) is absent from more than half of the regularly scheduled board meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the board.

(a-1) The validity of an action of the board is not affected by the fact that it is taken when a ground for removal of a board member exists.

SECTION 7. Subchapter C, Chapter 412, Labor Code, is amended by adding Section 412.027 to read as follows:

Sec. 412.027. USE OF TECHNOLOGY. The board shall implement a policy requiring the office to use appropriate technological solutions to improve the office's ability to perform its functions. The policy must ensure that the public is able to interact with the office on the Internet.

SECTION 8. Section 412.032, Labor Code, is amended to read as follows:

Sec. 412.032. BOARD'S REPORT TO LEGISLATURE. (a) Based on the recommendations of the director, the board shall report to each legislature relating to:

(1) methods to reduce the exposure of state agencies to the risks of property and liability losses, including workers' compensation losses;

(2) the operation, financing, and management of those risks; [and]

(3) the handling of claims brought against the state;

(4) return-to-work outcomes under Section 412.0126 for each state agency; and

(5) the business continuity plan developed by state agencies under Section 412.054.

(b) The report must include:

(1) the frequency, severity, and aggregate amount of open and closed claims in the preceding biennium by category of risk, including final judgments;

(2) the identification of each state agency that has not complied with the risk management guidelines and reporting requirements of this chapter; [and]

(3) recommendations for the coordination and administration of a comprehensive risk management program to serve all state agencies, including recommendations for any necessary statutory changes;

(4) a report of outcomes by state agency of lost time due to employee injury and return-to-work programs based on the information collected and analyzed by the office in Section 412.0126; and

(5) an evaluation of business continuity plans developed by state agencies under Section 412.054 for completeness and viability.

SECTION 9. Subchapter D, Chapter 412, Labor Code, is amended by adding Section 412.034 to read as follows:

Sec. 412.034. PUBLIC HEARING. The board shall develop and implement policies that provide the public with a reasonable opportunity to appear before the board and to speak on any issue under the jurisdiction of the office.

SECTION 10. Subchapter D, Chapter 412, Labor Code, is amended by adding Section 412.035 to read as follows:

Sec. 412.035. DISPUTE RESOLUTION. (a) The board shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of office rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the office's jurisdiction.

(b) The office's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The board shall designate a trained person to:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures, as implemented by the office.

SECTION 11. Subchapter F, Chapter 412, Labor Code, is amended by adding Section 412.054 to read as follows:

Sec. 412.054. BUSINESS CONTINUITY PLAN. (a) Each state agency shall work with the office to develop an agency-level business continuity plan that outlines procedures to keep the agency operational in case of disruptions to production, finance, administration, or other essential operations. The plan must include detailed information regarding resumption of essential services after a catastrophe, including:

(1) coordination with public authorities;

(2) management of media;

(3) customer service delivery;

(4) assessing immediate financial and operational needs; and

(5) other services as determined by the office.

(b) A business continuity plan is considered to meet the requirements of this section if the agency forwards the plan to the office for review and the agency is:

(1) involved in the delivery of emergency services as a member of the governor's Emergency Management Council; or

(2) part of the State Data Center program.

SECTION 12. Section 417.0082, Government Code, is amended to read as follows:

Sec. 417.0082. PROTECTION OF CERTAIN STATE-OWNED BUILDINGS AGAINST FIRE HAZARDS. (a) The state fire marshal, under the direction of the commissioner, shall take any action necessary to protect a public building under the charge and control of the Texas Building and Procurement [General Services] Commission, and the building's occupants, against an existing or threatened fire hazard. The state fire marshal and the Texas Building and Procurement Commission shall include the State Office of Risk Management in all communication concerning fire hazards.

(b) The commissioner, [and] the Texas Building and Procurement Commission, and the risk management board [General Services Commission] shall make and each adopt by rule a memorandum of understanding that coordinates the agency's duties under this section.

SECTION 13. A state agency shall develop a business continuity plan under Section 412.054, Labor Code, as added by this Act, not later than May 1, 2008.

SECTION 14. The changes in law made by Sections 412.021, 412.022, and 412.023, Labor Code, as amended by this Act, regarding the prohibitions on or qualifications of members of the Risk Management Board do not affect the entitlement of a member serving on the board immediately before September 1, 2007, to continue to serve and function as a member of the board for the remainder of the member's term. The changes in law made by those sections apply only to a member appointed on or after September 1, 2007.

SECTION 15. Section 412.0127, Labor Code, as added by this Act, applies to indemnity benefit payments made on or after February 1, 2008.

SECTION 16. This Act takes effect September 1, 2007.