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A BILL TO BE ENTITLED
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AN ACT
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relating to administrative violations committed by certified |
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self-insurer administrators under the Texas Workers' Compensation |
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Act; authorizing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 415.002, Labor Code, is amended by |
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adding Subsections (c) and (d) to read as follows: |
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(c) Notwithstanding any provision of a contract entered |
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into under Section 4151.253, Insurance Code, an administrator, as |
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defined by Section 4151.001 of that code, commits an administrative |
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violation under Subsection (a) if the administrator: |
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(1) is under contract with a certified self-insurer; |
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and |
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(2) engages in conduct described by Subsection (a) in |
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the course of administering a claim on behalf of the certified |
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self-insurer. |
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(d) A certified self-insurer may not be charged with an |
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administrative violation under Subsection (a) if the conduct that |
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is the subject of the violation was engaged in by an administrator, |
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as defined by Section 4151.001, Insurance Code, of the certified |
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self-insurer, unless the certified self-insurer directed the |
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administrator to engage in that conduct. |
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SECTION 2. Sections 415.002(c) and (d), Labor Code, as |
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added by this Act, apply only to an administrative violation |
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committed on or after the effective date of this Act. An |
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administrative violation committed before the effective date of |
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this Act is governed by the law in effect on the date the |
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administrative violation was committed, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |