85R22495 JSC-F By: Oliveira H.B. No. 4039 Substitute the following for H.B. No. 4039: By: Villalba C.S.H.B. No. 4039 A BILL TO BE ENTITLED AN ACT relating to the assessment of administrative penalties under the Texas Workers' Compensation Act. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 415.021, Labor Code, is amended by amending Subsection (c) and adding Subsection (c-1) to read as follows: (c) In assessing an administrative penalty: (1) the commissioner shall consider: (A) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act; (B) the history and extent of previous administrative violations; (C) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act; (D) the penalty necessary to deter future violations; [and] (E) whether the administrative violation has negative impact on the delivery of benefits to an injured employee; (F) the history of compliance with electronic data interchange requirements; and (G) other matters that justice may require; and (2) the commissioner shall, to the extent reasonable, consider the economic benefit resulting from the prohibited act. (c-1) The commissioner shall adopt rules that require the division, in the assessment of an administrative penalty against a person, to communicate to the person information about the penalty, including: (1) the relevant statute or rule violated; (2) the conduct that gave rise to the violation; and (3) the factors considered in determining the penalty. SECTION 2. Section 415.021(c), Labor Code, as amended by this Act, applies only to an administrative violation that occurs on or after the effective date of this Act. SECTION 3. The commissioner of workers' compensation shall adopt rules under Section 415.021(c-1), Labor Code, as added by this Act, as soon as practicable after the effective date of this Act. SECTION 4. This Act takes effect September 1, 2017.