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.