Texas House Bill HB1985

Texas 2019 - 86th Regular

Caption

Relating to administrative violations committed by certified self-insurer administrators under the Texas Workers' Compensation Act; authorizing an administrative penalty.

Notes

The bill is set to take effect on September 1, 2019, applying solely to violations committed from that date forward. This provision ensures that any infractions that occurred prior will be governed by the laws previously in effect.

Impact

The enactment of HB 1985 is expected to refine the accountability framework within the Texas Workers' Compensation system. By specifying that administrative violations will only apply to actions taken under the direction of certified self-insurers, the bill aims to alleviate some liability from certified self-insurers for the actions of their administrators. This change could encourage more entities to enter the self-insurance market by reducing the potential for penalties, which may ultimately provide more options for injured workers in Texas.

Summary

House Bill 1985 amends the Texas Labor Code concerning administrative violations related to certified self-insurer administrators under the Texas Workers' Compensation Act. The bill seeks to clarify and define the circumstances under which an administrator, who is under contract with a certified self-insurer, can commit an administrative violation during the administration of a claim. This adjustment intends to ensure accountability and adherence to the state’s workers' compensation regulations, thereby enhancing compliance and protecting the interests of claims made under the Act.

Contention

One notable point of contention surrounding HB 1985 is the potential for reduced enforcement against administrators who may engage in misconduct. Critics may argue that by shielding certified self-insurers from violations committed by their administrators, the bill could create a gap in accountability that may lead to less rigorous oversight of self-insured workers' compensation claims. Proponents, however, may contend that the bill strikes a necessary balance by distinguishing between self-insurers and their administrators, thereby promoting a fairer regulatory environment.