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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation and functions of the State Office of |
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Risk Management. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 412.011, Labor Code, is amended by |
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adding Subsections (f), (g), (h), and (i) to read as follows: |
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(f) The office shall work with each state agency to develop |
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an agency-level business continuity plan under Section 412.054. |
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(g) The office shall make available to each agency subject |
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to Section 412.054 guidelines and models for each element listed in |
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Section 412.054. The office shall assist the agency as necessary to |
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ensure that: |
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(1) agency staff understands each element of the |
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business continuity plan developed under Section 412.054; and |
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(2) each agency practices implementation of the plan. |
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(h) The office and the Texas Building and Procurement |
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Commission shall adopt a memorandum of understanding that: |
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(1) includes the type, amount, and frequency of |
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safety-related information that may be shared between the office |
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and the commission; and |
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(2) designates points of contact within the office and |
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the commission to coordinate the sharing of information. |
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(i) The office shall: |
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(1) maintain a system to promptly and efficiently act |
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on complaints filed with the office; |
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(2) maintain information about parties to the |
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complaint, the subject matter of the complaint, a summary of the |
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results of the review or investigation of the complaint, and |
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disposition of the complaint; |
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(3) make information available describing the office's |
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procedures for complaint investigation and resolution; and |
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(4) periodically notify the complaint parties of the |
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status of the complaint until final disposition. |
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SECTION 2. Subchapter B, Chapter 412, Labor Code, is |
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amended by adding Sections 412.0125 through 412.0129 to read as |
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follows: |
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Sec. 412.0125. RETURN-TO-WORK COORDINATION SERVICES; CASE |
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MANAGEMENT. (a) The office shall provide each state agency with |
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return-to-work coordination services as necessary to facilitate an |
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injured employee's return to employment. The office shall notify |
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each state agency of the availability of return-to-work |
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coordination services. |
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(b) As part of return-to-work coordination services under |
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this section, the office shall: |
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(1) establish a time frame for case management of an |
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injured employee that ensures services are provided to the injured |
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employee as soon as practicable to improve the employee's chance of |
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returning to work as quickly as possible; |
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(2) provide guidance to each state agency to identify |
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appropriate services for an injured employee; |
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(3) adopt rules that set standards and provide |
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guidance to a state agency interacting with an injured employee; |
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and |
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(4) implement any other services provided under |
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Section 413.021 that will facilitate the reintegration of an |
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injured employee. |
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Sec. 412.0126. ANALYSIS. (a) The board shall adopt rules |
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as necessary to collect data on lost time and return-to-work |
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outcomes of each state agency to allow full evaluations of |
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successes and of barriers to achieving timely return to work after |
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an injury. |
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(b) The office shall: |
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(1) collect and analyze data from each state agency |
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regarding lost time, including sick leave and annual leave used by |
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an injured employee; |
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(2) identify state agencies that need additional |
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training or case management services related to return-to-work |
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services; |
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(3) modify as necessary the office's assessment |
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computation to encourage state agencies to effectively reduce |
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workers' compensation costs; |
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(4) incorporate as necessary return-to-work goals |
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developed by the division of workers' compensation under Section |
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413.025; |
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(5) work with the workers' compensation research and |
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evaluation group to develop analytical tools to assist the office |
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with its duties under this section; |
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(6) require state agencies to report information in a |
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standardized format; |
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(7) monitor the information reported by each state |
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agency; and |
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(8) evaluate the information provided under this |
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section to determine outcomes over time for each state agency. |
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Sec. 412.0127. PAYMENT BY ELECTRONIC FUNDS TRANSFER. (a) |
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Notwithstanding Section 403.016, Government Code, and except as |
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provided by Subsection (b), the office shall pay an employee |
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entitled to an indemnity benefit payment using the same payment |
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method as the method by which the employee receives the employee's |
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wages. |
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(b) The office shall adopt rules to facilitate the use of |
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electronic funds transfer as the preferred method of payment under |
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this section. |
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(c) The office may issue an indemnity benefit payment by |
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check on request or if electronic funds transfer is not feasible. |
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Sec. 412.0128. CONFIDENTIALITY OF INJURY INFORMATION. |
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Information in or derived from a workers' compensation claim file |
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regarding an employee is confidential and may not be disclosed by |
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the office except as provided by this subchapter or other law. |
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Sec. 412.0129. STUDY ON CATASTROPHIC CLAIMS. (a) The |
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office shall study options to prepare state agencies for |
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catastrophic claims. |
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(b) The study must include information on: |
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(1) establishing a state employee workers' |
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compensation catastrophe fund outside the state treasury; |
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(2) purchasing catastrophe reinsurance; and |
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(3) other options to prepare the state for |
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catastrophic claims. |
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(c) In performing duties under Subsections (a) and (b), the |
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office: |
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(1) shall work with the workers' compensation research |
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and evaluation group; and |
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(2) may contract with a consultant to: |
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(A) analyze predicted costs of potential |
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disasters; and |
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(B) estimate the appropriate size for a |
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catastrophe fund or level of reinsurance. |
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(d) Not later than September 1, 2008, the office shall |
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report the findings of the study conducted under this section to the |
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lieutenant governor, the speaker of the house of representatives, |
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and the appropriate standing committees of the house of |
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representatives and senate with responsibility for oversight of the |
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office. |
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(e) This section expires September 2, 2008. |
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SECTION 3. Section 412.021, Labor Code, is amended by |
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adding Subsections (a-1), (g), and (h) and amending Subsections (d) |
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and (f) to read as follows: |
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(a-1) A person may not be a member of the board if the person |
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or the person's spouse: |
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(1) is employed by or participates in the management |
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of a business entity or other organization regulated by or |
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receiving money from the office; |
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(2) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization regulated by or receiving money from the office; or |
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(3) uses or receives a substantial amount of tangible |
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goods, services, or money from the office other than compensation |
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or reimbursement authorized by law for risk management board |
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membership, attendance, or expenses. |
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(d) The governor shall designate one member of the board as |
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presiding officer. The presiding officer shall serve in that |
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capacity at the pleasure of the governor [for a two-year term]. |
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(f) The risk management board and the office are [is] |
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subject to Chapter 325, Government Code (Texas Sunset Act). Unless |
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continued in existence as provided by that chapter, the board is |
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abolished and this section expires September 1, 2019 [2007]. |
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(g) Appointments to the board shall be made without regard |
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to the race, color, disability, sex, religion, age, or national |
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origin of the appointee. |
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(h) The board shall develop and implement policies that |
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clearly separate the policymaking responsibilities of the board and |
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the management responsibilities of the director and the staff of |
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the risk management office. |
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SECTION 4. Section 412.022, Labor Code, is amended to read |
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as follows: |
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Sec. 412.022. TRAINING PROGRAM FOR BOARD MEMBERS. (a) A |
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person who is appointed to and qualifies for office as a member of |
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the board may not vote, deliberate, or be counted as a member in |
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attendance at a meeting of the board until the person completes a |
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training program that complies with this section. [To be eligible
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to take office as a member of the board, a person appointed to the
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board must complete at least one course of a training program that
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complies with this section. If the course has not been completed at
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the time of the appointment, the training program is to be completed
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within six months from the date of appointment, failure of which
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constitutes grounds for removal from the board.] |
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(b) A training program established under this section must |
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provide information to the member regarding: |
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(1) the enabling legislation that created the office |
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and the office's programs, functions, rules, and budget [board]; |
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(2) the results of the most recent formal audit of the |
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office [program operated by the board]; |
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(3) the requirements of laws relating to open |
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meetings, public information, administrative procedure, and |
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conflicts of interest [role and functions of the board]; and |
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(4) [the rules of the board, with an emphasis on the
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rules that relate to disciplinary and investigatory authority;
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[(5)the current budget for the board;
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[(6) the results of the most recent formal audit of the
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board;
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[(7)the requirements of:
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[(A) the open meetings law, Chapter 551,
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Government Code;
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[(B) the public information law, Chapter 552,
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Government Code; and
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[(C) the administrative procedure law, Chapter
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2001, Government Code;
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[(8) the requirements of the conflict of interest laws
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and other laws relating to public officials; and
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[(9)] any applicable ethics policies adopted by the |
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office [board] or the Texas Ethics Commission. |
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(c) A person appointed to the board is entitled to |
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reimbursement, as provided by the General Appropriations Act, for |
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the travel expenses incurred in attending the training program |
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regardless of whether the attendance at the program occurs before |
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or after the person qualifies for office. |
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SECTION 5. Section 412.023, Labor Code, is amended to read |
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as follows: |
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Sec. 412.023. EFFECT OF LOBBYING ACTIVITY. (a) In this |
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section, "Texas trade association" means a cooperative and |
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voluntarily joined statewide association of business or |
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professional competitors in this state designed to assist its |
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members and its industry or profession in dealing with mutual |
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business or professional problems and in promoting their common |
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interest. |
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(b) A person may not be a member of the board and may not be |
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an employee of the office employed in a "bona fide executive, |
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administrative, or professional capacity," as that phrase is used |
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for purposes of establishing an exemption to the overtime |
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provisions of the federal Fair Labor Standards Act of 1938 (29 |
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U.S.C. Section 201 et seq.) if: |
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(1) the person is an officer, employee, or paid |
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consultant of a Texas trade association in the field of insurance or |
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health care; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association in the field of insurance or |
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health care. |
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(c) A person may not serve as a member of the board or act as |
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the general counsel to the board if the person is required to |
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register as a lobbyist under Chapter 305, Government Code, because |
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of the person's activities for compensation on behalf of a |
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profession related to the operation of the office [that is
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regulated by or that has fees regulated by the board]. |
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SECTION 6. Section 412.024, Labor Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) It is a ground for removal from the board if a member: |
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(1) does not have at the time of taking office |
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[appointment] the qualifications required by [for appointment to
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the board other than the requirements of] Section 412.021 |
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[412.022]; |
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(2) does not maintain during service on the board the |
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qualifications required by Section 412.021 [for appointment to the
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board]; |
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(3) is ineligible for membership under Section 412.021 |
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or [violates a prohibition established by Section] 412.023; |
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(4) cannot because of illness or incapacity discharge |
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the member's duties for a substantial part of the member's term [for
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which the member is appointed]; or |
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(5) is absent from more than half of the regularly |
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scheduled board meetings that the member is eligible to attend |
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during a calendar year without an excuse approved by a majority vote |
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of the board. |
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(a-1) The validity of an action of the board is not affected |
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by the fact that it is taken when a ground for removal of a board |
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member exists. |
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SECTION 7. Subchapter C, Chapter 412, Labor Code, is |
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amended by adding Section 412.027 to read as follows: |
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Sec. 412.027. USE OF TECHNOLOGY. The board shall implement |
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a policy requiring the office to use appropriate technological |
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solutions to improve the office's ability to perform its functions. |
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The policy must ensure that the public is able to interact with the |
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office on the Internet. |
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SECTION 8. Section 412.032, Labor Code, is amended to read |
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as follows: |
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Sec. 412.032. BOARD'S REPORT TO LEGISLATURE. (a) Based on |
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the recommendations of the director, the board shall report to each |
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legislature relating to: |
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(1) methods to reduce the exposure of state agencies |
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to the risks of property and liability losses, including workers' |
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compensation losses; |
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(2) the operation, financing, and management of those |
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risks; [and] |
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(3) the handling of claims brought against the state; |
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(4) return-to-work outcomes under Section 412.0126 |
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for each state agency; and |
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(5) the business continuity plan developed by state |
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agencies under Section 412.054. |
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(b) The report must include: |
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(1) the frequency, severity, and aggregate amount of |
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open and closed claims in the preceding biennium by category of |
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risk, including final judgments; |
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(2) the identification of each state agency that has |
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not complied with the risk management guidelines and reporting |
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requirements of this chapter; [and] |
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(3) recommendations for the coordination and |
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administration of a comprehensive risk management program to serve |
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all state agencies, including recommendations for any necessary |
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statutory changes; |
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(4) a report of outcomes by state agency of lost time |
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due to employee injury and return-to-work programs based on the |
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information collected and analyzed by the office in Section |
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412.0126; and |
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(5) an evaluation of business continuity plans |
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developed by state agencies under Section 412.054 for completeness |
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and viability. |
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SECTION 9. Subchapter D, Chapter 412, Labor Code, is |
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amended by adding Section 412.034 to read as follows: |
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Sec. 412.034. PUBLIC HEARING. The board shall develop and |
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implement policies that provide the public with a reasonable |
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opportunity to appear before the board and to speak on any issue |
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under the jurisdiction of the office. |
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SECTION 10. Subchapter D, Chapter 412, Labor Code, is |
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amended by adding Section 412.035 to read as follows: |
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Sec. 412.035. DISPUTE RESOLUTION. (a) The board shall |
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develop and implement a policy to encourage the use of: |
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(1) negotiated rulemaking procedures under Chapter |
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2008, Government Code, for the adoption of office rules; and |
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(2) appropriate alternative dispute resolution |
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procedures under Chapter 2009, Government Code, to assist in the |
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resolution of internal and external disputes under the office's |
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jurisdiction. |
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(b) The office's procedures relating to alternative dispute |
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resolution must conform, to the extent possible, to any model |
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guidelines issued by the State Office of Administrative Hearings |
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for the use of alternative dispute resolution by state agencies. |
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(c) The board shall designate a trained person to: |
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(1) coordinate the implementation of the policy |
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adopted under Subsection (a); |
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(2) serve as a resource for any training needed to |
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implement the procedures for negotiated rulemaking or alternative |
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dispute resolution; and |
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(3) collect data concerning the effectiveness of those |
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procedures, as implemented by the office. |
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SECTION 11. Subchapter F, Chapter 412, Labor Code, is |
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amended by adding Section 412.054 to read as follows: |
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Sec. 412.054. BUSINESS CONTINUITY PLAN. (a) Each state |
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agency shall work with the office to develop an agency-level |
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business continuity plan that outlines procedures to keep the |
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agency operational in case of disruptions to production, finance, |
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administration, or other essential operations. The plan must |
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include detailed information regarding resumption of essential |
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services after a catastrophe, including: |
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(1) coordination with public authorities; |
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(2) management of media; |
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(3) customer service delivery; |
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(4) assessing immediate financial and operational |
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needs; and |
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(5) other services as determined by the office. |
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(b) A business continuity plan is considered to meet the |
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requirements of this section if the agency forwards the plan to the |
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office for review and the agency is: |
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(1) involved in the delivery of emergency services as |
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a member of the governor's Emergency Management Council; or |
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(2) part of the State Data Center program. |
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SECTION 12. Section 417.0082, Government Code, is amended |
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to read as follows: |
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Sec. 417.0082. PROTECTION OF CERTAIN STATE-OWNED BUILDINGS |
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AGAINST FIRE HAZARDS. (a) The state fire marshal, under the |
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direction of the commissioner, shall take any action necessary to |
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protect a public building under the charge and control of the Texas |
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Building and Procurement [General Services] Commission, and the |
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building's occupants, against an existing or threatened fire |
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hazard. The state fire marshal and the Texas Building and |
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Procurement Commission shall include the State Office of Risk |
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Management in all communication concerning fire hazards. |
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(b) The commissioner, [and] the Texas Building and |
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Procurement Commission, and the risk management board [General
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Services Commission] shall make and each adopt by rule a memorandum |
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of understanding that coordinates the agency's duties under this |
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section. |
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SECTION 13. A state agency shall develop a business |
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continuity plan under Section 412.054, Labor Code, as added by this |
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Act, not later than May 1, 2008. |
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SECTION 14. The changes in law made by Sections 412.021, |
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412.022, and 412.023, Labor Code, as amended by this Act, regarding |
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the prohibitions on or qualifications of members of the Risk |
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Management Board do not affect the entitlement of a member serving |
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on the board immediately before September 1, 2007, to continue to |
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serve and function as a member of the board for the remainder of the |
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member's term. The changes in law made by those sections apply only |
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to a member appointed on or after September 1, 2007. |
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SECTION 15. Section 412.0127, Labor Code, as added by this |
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Act, applies to indemnity benefit payments made on or after |
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February 1, 2008. |
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SECTION 16. This Act takes effect September 1, 2007. |