84R19030 KKR-D By: Sheets H.B. No. 687 Substitute the following for H.B. No. 687: By: Fletcher C.S.H.B. No. 687 A BILL TO BE ENTITLED AN ACT relating to confidential communications between an insurance carrier and a covered employer under the Texas Workers' Compensation Act. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 409, Labor Code, is amended by adding Section 409.0115 to read as follows: Sec. 409.0115. CONFIDENTIAL COMMUNICATIONS. (a) For purposes of this section, a reference to an insurance carrier or covered employer includes the insurance carrier's or covered employer's attorneys, consultants, sureties, indemnitors, employees, third-party administrators, and other agents. (b) Communications between an insurance carrier and a covered employer are confidential and not subject to disclosure if the communications include information regarding mental impressions, conclusions, opinions, claims-handling strategies, litigation strategies, legal theories regarding the claim, claim status, claim reserves, or proprietary business practices of the insurance carrier or covered employer or other similar classes of information and are made in furtherance of the covered employer's rights, including rights described by Sections 409.011(b)(1)-(5) and Section 415.002(b). (c) An insurance carrier may refuse to disclose and may prevent the disclosure by another person of confidential communications described by this section. (d) This section: (1) does not apply to: (A) communications between the insurance carrier and covered employer that are offered as evidence in a judicial proceeding between the insurance carrier and covered employer; (B) communications made to the insurance carrier by the covered employer in which the employer dictates the methods by which and the terms on which the claim is handled and settled; or (C) public records subject to Chapter 552, Government Code; and (2) does not affect: (A) the requirement to exchange documentation under Chapter 410; or (B) the right of the commissioner to obtain information from an insurance carrier or covered employer under this subtitle. (e) An insurance carrier or covered employer is required to disclose any communications, including confidential communications described by this section, that are requested by the commissioner in order to detect and address acts or practices of noncompliance with this subtitle and rules adopted under this subtitle. SECTION 2. Section 409.0115, Labor Code, as added by this Act, applies only to communications between an insurance carrier and a covered employer made on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2015.