HBA-MPA H.B. 2514 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2514 By: Ritter Business & Industry 3/10/1999 Introduced BACKGROUND AND PURPOSE Currently, the Texas Workers' Compensation Commission's (TWCC) extra-hazardous employer program is limited in application to public employers such as counties, cities, and school districts. This is the result of a 1996 decision by the Third Court of Appeals, which ruled that the program was duplicative of the federal Occupational Safety and Health Act (OSHA). Also, the Texas Workers' Compensation Act does not authorize TWCC to obtain reimbursement for the cost of inspecting an insurance carrier's accident prevention services program, and if the insurance carrier fails the inspection, the carrier is not responsible for the cost of a reinspection by TWCC. H.B. 2514 limits the application of the renamed hazardous employer program to reflect the OSHA preemption, and requires TWCC to reinspect the accident prevention services of insurance carriers who fail an initial inspection, and to collect reasonable costs from insurance carriers to cover reinspection. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Workers' Compensation Commission in SECTION 1.04 (Section 411.042, Labor Code) of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. HAZARDOUS EMPLOYER PROGRAM SECTION 1.01. Amends the heading to Subchapter D, Chapter 411, Labor Code, as follows: New Title: SUBCHAPTER D. HAZARDOUS EMPLOYER PROGRAM SECTION 1.02. Amends Section 411.041, Labor Code, to provide that Sections 411.043 (Safety Consultation; Report; Accident Prevention Plan), 411.044 (Accident Investigation), 411.045 (Compliance Certification), 411.046 (Administrative Violation), 411.047 (Additional Safety Plan), and 411.048 (Costs Charged to Employer) apply only to a political subdivision that is subject to Chapter 504 (Workers' Compensation Insurance Coverage for Employees of Political Subdivisions), and that the remaining sections of this subchapter apply to all employers. Makes conforming and nonsubstantive changes. SECTION 1.03. Amends Sections 411.0415(a) and (c), Labor Code, to make conforming and nonsubstantive changes. SECTION 1.04. Amends Section 411.042, Labor Code, to require the Texas Workers' Compensation Commission (commission), by rule, to require a minimum interval of at least six months before a subsequent audit to identify an employer as a hazardous employer. Makes conforming and nonsubstantive changes. SECTION 1.05. Amends Section 411.048, Labor Code, to require the commission to charge a private employer for reimbursement of the reasonable cost of services provided by the division of workers' health and safety of the commission (division), including a reasonable allocation of administrative costs, in providing safety and health services at the employer's request. Provides that this subsection does not apply to services provided to an employer under Section 411.018 (Federal OSHA Compliance). Makes conforming and nonsubstantive changes. SECTION 1.06. Amends Section 411.050, Labor Code, to make conforming changes. ARTICLE 2. INSURER ACCIDENT PREVENTION SERVICES SECTION 2.01. Amends Section 411.064, Labor Code, by creating Subsection (a) from existing text, and by adding Subsections (b) and (c), as follows: (b) Requires the division, if after the biennial inspection required under this section it determines that an insurance company's accident prevention services are inadequate, to reinspect the services no later than 180 days after they are determined inadequate. (c) Requires the insurance company to reimburse the commission for the cost of reinspection, including the reasonable administrative costs. ARTICLE 3. TRANSITION; EFFECTIVE DATE; EMERGENCY SECTION 3.01. Makes application of this Act prospective. SECTION 3.02. Effective date: September 1, 1999. SECTION 3.03. Emergency clause.