Texas Senate Bill SB431

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.

Impact

The passage of SB431 is poised to strengthen regulatory oversight of self-insurer administrators, which is critical to enhancing compliance and integrity within the workers' compensation system. By holding administrators accountable for their actions while allowing self-insurers to avoid penalties for unauthorized actions taken by their administrators, the bill maintains balance in accountability. This could lead to improved claims management and a more transparent system that better serves the interests of both workers and employers.

Summary

Senate Bill 431 addresses administrative violations committed by certified self-insurers under the Texas Workers' Compensation Act. This bill introduces measures to impose administrative penalties on self-insurer administrators who violate the provisions set forth in the Labor Code during the administration of claims. The bill emphasizes the responsibility of administrators while simultaneously protecting certified self-insurers from penalties resulting from violations that they did not direct, which could serve to clarify the lines of accountability in the claims process.

Contention

While not explicitly stated in the documents, potential points of contention surrounding SB431 may involve discussions on the balance between regulation and practicality for self-insurers. Some may argue that an influx of administrative penalties could stifle efficiency and innovation among self-insurers if not carefully calibrated. Conversely, proponents are likely to argue that without the enforcement of such penalties, there exists a risk of negligent behaviors escalating, which could harm workers' rights and lead to greater systemic issues within the workers' compensation framework.