86R6098 KKR-F
By: Zaffirini S.B. No. 431
A BILL TO BE ENTITLED
AN ACT
relating to administrative violations committed by certified
self-insurer administrators under the Texas Workers' Compensation
Act; authorizing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 415.002, Labor Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) Notwithstanding any provision of a contract entered
into under Section 4151.253, Insurance Code, an administrator, as
defined by Section 4151.001 of that code, commits an administrative
violation under Subsection (a) if the administrator:
(1) is under contract with a certified self-insurer;
and
(2) engages in conduct described by Subsection (a) in
the course of administering a claim on behalf of the certified
self-insurer.
(d) A certified self-insurer may not be charged with an
administrative violation under Subsection (a) if the conduct that
is the subject of the violation was engaged in by an administrator,
as defined by Section 4151.001, Insurance Code, of the certified
self-insurer, unless the certified self-insurer directed the
administrator to engage in that conduct.
SECTION 2. Sections 415.002(c) and (d), Labor Code, as
added by this Act, apply only to an administrative violation
committed on or after the effective date of this Act. An
administrative violation committed before the effective date of
this Act is governed by the law in effect on the date the
administrative violation was committed, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2019.