HBA-ATS H.B. 2507 76(R)        BILL ANALYSIS


Office of House Bill AnalysisH.B. 2507
By: George
Business & Industry
3/11/1999
Introduced



BACKGROUND AND PURPOSE 

Section 408.001 of the Labor Code provides that workers' compensation
benefits are the exclusive remedy of an employee covered by workers'
compensation insurance against the employer or an agent or employee of the
employer for work-related injuries sustained by the employee.  Injured
employees must look exclusively to the insurance carrier for compensation
for injuries sustained on the job.  They are prohibited from seeking
common-law remedies from their employer and from their employer's agents
and employees.  Omitted from the statute are business entities such as
parent corporations and subsidiary corporations of the employer who
provides the workers' compensation coverage.  Because of this omission,
these entities may find themselves defendants in a common-law suit brought
by employees of business units these entities either own or control or
which control or own them. 

H.B. 2507 includes a parent corporation, a subsidiary corporation, or a
subsidiary of a parent corporation of an employer, which are named insureds
on the same policy of workers' compensation as an employer, among the
parties to which the exclusive remedy of recovery of workers' compensation
benefits by an injured employee applies.  As amended, the law prohibits an
employee from seeking common-law remedies from his employer, a parent
corporation, subsidiary corporation, or subsidiary of a parent corporation
of the employer, as well as from the employer's agents and employees. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 408.001, Labor Code, to include a parent
corporation, a subsidiary corporation, or a subsidiary of a parent
corporation of an employer, which are named insureds on the same policy of
workers' compensation insurance as an employer, among the parties (employer
and its agents and employees) to which the exclusive remedy of recovery of
workers' compensation benefits by an injured employee applies.  Makes
conforming changes. 

SECTION 2.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.