HBA-NRS H.B. 463 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 463
By: Garcia
Business & Industry
4/6/2001
Introduced



BACKGROUND AND PURPOSE 

Current law does not require an employer to obtain workers' compensation
insurance coverage. House Bill 463 requires an employer of 25 employees or
more, including a public employer, to obtain workers' compensation
insurance coverage.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 463 amends the Labor Code to require public employers and other
employers to obtain workers' compensation insurance coverage (coverage),
except those employers who employ fewer than 25 employees. Exempt employers
who elect to obtain coverage are governed by existing statutes that apply
to employers who elect to obtain coverage. The bill requires an employer
who claims an exemption from the mandatory coverage requirement to report
to the Texas Workers' Compensation Commission (commission) in writing
before December 1 of each year the number of its employees. The bill
provides that the number of employees reported to the commission is binding
on the employer for the immediately succeeding calendar year. 

In addition, the bill authorizes a certified self-insurer who is exempt
from the mandatory coverage requirement to withdraw from self-insurance at
any time with the approval of the commission. The bill authorizes a
certified self-insurer who is subject to the mandatory coverage requirement
to withdraw from self-insurance on notification to the commission that the
certified self-insurer has obtained coverage through a licensed insurance
company. The bill requires the commission to approve the withdrawal of a
certified self-insurer who is exempt from the mandatory coverage
requirement if the certified self-insurer shows to the satisfaction of the
commission that the certified self-insurer has established an adequate
program to pay all incurred losses, including unreported losses, that arise
out of accidents or occupational diseases first distinctly manifested
during the period of operation as a certified self-insurer. The bill also
requires the commission to approve the withdrawal of a certified
self-insurer who is exempt from the mandatory coverage requirement if the
certified self-insurer shows to the satisfaction of the commission that the
certified self-insurer has obtained coverage through an insurance company
authorized to engage in the business of workers' compensation insurance in
this state.  

The bill provides that an employer commits a violation if the employer is
required to provide coverage and does not maintain that coverage in a
manner that complies with applicable law. The bill provides that an
employer who has committed an administrative violation that results in the
denial of benefits to an employee who sustains a compensable injury is
liable for payment to the employee of all benefits to which the employee
would otherwise be entitled. The bill provides that such an administrative
violation by an employer is a Class A administrative violation. The bill
also provides that an employer commits a class A misdemeanor if the
employer is required to provide coverage and does not maintain that
coverage in a manner that complies with workers' compensation insurance
coverage as prescribed by law. 
 
EFFECTIVE DATE

September 1, 2001, and applies only to a claim for workers' compensation
benefits based on a compensable injury that occurs on or after January 1,
2002.