Texas 2015 - 84th Regular

Texas House Bill HB4118 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Walle H.B. No. 4118
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to requiring employers who choose not to purchase workers'
7	7	compensation insurance coverage from an insurance carrier to
8	8	provide certain employee benefits; providing an administrative
9	9	violation; creating a criminal offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 406.001, Labor Code, is amended to read
12	12	as follows:
13	13	Sec. 406.001. DEFINITION. In this subchapter,
14	14	(1) "employer" means a person who employs one or more
15	15	employees.
16	16	(2) "qualified benefit plan" means a plan that meets
17	17	the standards of section 406.002, subsection (b), Labor Code.
18	18	SECTION 2. Section 406.002(b), Labor Code, is amended and
19	19	sections 406.002(1)(2)(3) and (4), and 406.002(c) are added to read
20	20	as follows:
21	21	Sec. 406.002. EMPLOYER COVERAGE REQUIREMENT [COVERAGE
22	22	GENERALLY ELECTIVE]. (a) An [Except for public employers and as
23	23	otherwise provided by law, an] employer shall obtain workers'
24	24	compensation insurance coverage from an insurance carrier or
25	25	provide benefits through a qualified benefits plan or certified
26	26	self-insurance coverage that meets the requirements of Chapter 407
27	27	or 407A
28	28	(b) A qualified benefit plan must meet the following
29	29	requirements [An employer who elects to obtain coverage is subject
30	30	to this subtitle.]:
31	31	(1) provide for payment of the same forms of benefits
32	32	included in the Workers' Compensation Act for: temporary total
33	33	disability, temporary partial disability, permanent partial
34	34	disability, vocational rehabilitation, permanent total disability,
35	35	disfigurement, amputation or permanent total loss of use of a
36	36	scheduled member, death and medical benefits as a result of an
37	37	occupational injury, on a no-fault basis, with the same statute of
38	38	limitations, and with dollar, percentage, and duration limits that
39	39	are at least equal to or greater than the dollar, percentage, and
40	40	duration limits contained in Chapter 408, Labor Code. For this
41	41	purpose, the standards for determination of average weekly wage,
42	42	death beneficiaries, and disability under the Workers'
43	43	Compensation Act shall apply;
44	44	(2) pay benefits regardless of whether the covered
45	45	employee, the employer, or a third party caused the occupational
46	46	injury; and
47	47	(3) provide the same forms and levels of benefits to
48	48	all employees of the employer.
49	49	(4) The Workers' Compensation Act does not define,
50	50	restrict, or apply in any other way to a qualified benefit plan.
51	51	(c) An employer providing a qualified benefit plan must
52	52	notify the Insurance Commissioner in writing of the election to
53	53	provide a qualified benefit plan and the date that the election is
54	54	to become effective;
55	55	(1) Shall pay to the Commissioner an annual
56	56	nonrefundable fee of 500.00 dollars on the date of filing written
57	57	notice and every year thereafter;
58	58	(2) Provide to the Commissioner and to all covered
59	59	employees notice of the name, title, address, and telephone number
60	60	for the person to contact for injury benefit claims administration.
61	61	SECTION 3. Section 406.003, Labor Code, is amended to read
62	62	as follows:
63	63	Sec. 406.003. WORKERS' COMPENSATION INSURANCE [METHODS OF
64	64	OBTAINING] COVERAGE. An employer who obtains [may obtain] workers'
65	65	compensation insurance coverage through a licensed insurance
66	66	company, provides benefits [or] through self-insurance under
67	67	Chapter 407 or 407A, or provides benefits through a qualified
68	68	benefit plan is considered to provide workers' compensation
69	69	coverage for purposes of [as provided by] this subtitle.
70	70	SECTION 4. Sections 406.005(c) and (d), Labor Code, are
71	71	amended to read as follows:
72	72	(c) Each employer shall post a notice that [of whether] the
73	73	employer has workers' compensation insurance coverage and whether
74	74	the coverage is provided through an insurance carrier, through
75	75	self-insurance, or a qualified benefit plan at conspicuous
76	76	locations at the employer's place of business as necessary to
77	77	provide reasonable notice to the employees. The commissioner may
78	78	adopt rules relating to the form and content of the notice. The
79	79	employer shall revise the notice when the information contained in
80	80	the notice is changed.
81	81	(d) An employer [who obtains workers' compensation
82	82	insurance coverage or] whose workers' compensation insurance
83	83	coverage is changed [terminated or canceled] shall notify each
84	84	employee that the coverage has been changed [obtained, terminated,
85	85	or canceled] not later than the 15th day after the date on which the
86	86	change [coverage, or the termination or cancellation of the
87	87	coverage,] takes effect.
88	88	SECTION 5. The heading to Section 406.007, Labor Code, is
89	89	amended to read as follows:
90	90	Sec. 406.007. CHANGE [TERMINATION] OF COVERAGE BY EMPLOYER;
91	91	NOTICE.
92	92	SECTION 6. Section 406.007(a), Labor Code, is amended to
93	93	read as follows:
94	94	(a) An employer who changes [terminates] workers'
95	95	compensation insurance coverage [obtained] under this subtitle
96	96	shall file a written notice with the division by certified mail not
97	97	later than the 10th day after the date on which the employer
98	98	notified the insurance carrier or decided to make a change under a
99	99	self-insurance plan or qualified benefit plan, as applicable [to
100	100	terminate the coverage]. The notice must include a statement
101	101	certifying the date that notice was provided or will be provided to
102	102	affected employees under Section 406.005 and specify the manner in
103	103	which coverage will be provided to employees after the change.
104	104	SECTION 7. Section 406.034(b), Labor Code, is amended to
105	105	read as follows:
106	106	(b) An employee who desires to retain the common-law right
107	107	of action to recover damages for personal injuries or death shall
108	108	notify the employer in writing that the employee waives coverage
109	109	under this subtitle and retains all rights of action under common
110	110	law. The employee must notify the employer not later than the fifth
111	111	day after the date on which the employee[:
112	112	[(1)] begins the employment[; or
113	113	[(2) receives written notice from the employer that
114	114	the employer has obtained workers' compensation insurance coverage
115	115	if the employer is not a covered employer at the time of the
116	116	employment but later obtains the coverage].
117	117	SECTION 8. Section 406.094(a), Labor Code, is amended to
118	118	read as follows:
119	119	(a) An employer [who elects to provide workers'
120	120	compensation insurance coverage] may include in the employer's
121	121	workers' compensation insurance coverage a real estate salesperson
122	122	or broker who is:
123	123	(1) licensed under Chapter 1101, Occupations Code; and
124	124	(2) compensated solely by commissions.
125	125	SECTION 9. Section 406.097(a), Labor Code, is amended to
126	126	read as follows:
127	127	(a) A sole proprietor, partner, or corporate executive
128	128	officer of a business entity [that elects to provide workers'
129	129	compensation insurance coverage] is entitled to benefits under the
130	130	business entity's workers' compensation insurance [that] coverage
131	131	as an employee [unless the sole proprietor, partner, or corporate
132	132	executive officer is specifically excluded from coverage through an
133	133	endorsement to the insurance policy or certificate of authority to
134	134	self-insure].
135	135	SECTION 10. Section 407.045(a), Labor Code, is amended to
136	136	read as follows:
137	137	(a) A certified self-insurer may withdraw from
138	138	self-insurance by notifying [at any time with the approval of] the
139	139	commissioner that the certified self-insurer chooses to provide
140	140	workers' compensation insurance coverage through an insurance
141	141	carrier or qualified benefit plan. The commissioner shall approve
142	142	the withdrawal if the certified self-insurer shows to the
143	143	satisfaction of the commissioner that the certified self-insurer
144	144	has obtained a workers' compensation insurance coverage policy
145	145	through a licensed insurance company or qualified benefit plan
146	146	[established an adequate program to pay all incurred losses,
147	147	including unreported losses, that arise out of accidents or
148	148	occupational diseases first distinctly manifested during the
149	149	period of operation as a certified self-insurer].
150	150	SECTION 11. Subchapter A, Chapter 415, Labor Code, is
151	151	amended by adding Section 415.0015 to read as follows:
152	152	Sec. 415.0015. ADMINISTRATIVE VIOLATION BY EMPLOYER. (a) An
153	153	employer commits a violation if the employer does not maintain
154	154	workers' compensation insurance coverage in a manner that complies
155	155	with Chapter 406.
156	156	(b) An employer who has committed an act described by
157	157	Subsection (a) that results in a denial of benefits to an employee
158	158	who sustains a compensable injury is liable for payment to the
159	159	employee of all benefits to which the employee would otherwise be
160	160	entitled.
161	161	(c) A violation under this section is a Class A
162	162	administrative violation.
163	163	SECTION 12. Chapter 418, Labor Code, is amended by adding
164	164	Section 418.004 to read as follows:
165	165	Sec. 418.004. PENALTY FOR NOT CARRYING REQUIRED WORKERS'
166	166	COMPENSATION INSURANCE COVERAGE. (a) An employer commits an offense
167	167	if the employer does not maintain workers' compensation insurance
168	168	coverage in a manner that complies with Chapter 406.
169	169	(b) An offense under Subsection (a) is a Class A
170	170	misdemeanor.
171	171	SECTION 13. Sections 406.004, 406.005(a) and (b),
172	172	406.007(c) and (d), 406.052(b), and 411.002(b) Labor Code, are
173	173	repealed.
174	174	SECTION 14. The commissioner of workers' compensation shall
175	175	adopt any rules necessary to implement this Act not later than
176	176	December 1, 2015.
177	177	SECTION 15. An employer subject to this Act is required to
178	178	comply with this Act not later than January 1, 2016.
179	179	SECTION 16. The change in law made by this Act applies only
180	180	to a claim for workers' compensation benefits based on a
181	181	compensable injury that occurs on or after January 1, 2016. A claim
182	182	based on a compensable injury that occurs before January 1, 2016, is
183	183	governed by the law in effect immediately before the effective date
184	184	of this Act, and the former law is continued in effect for that
185	185	purpose.
186	186	SECTION 17. This Act takes effect September 1, 2015.