HBA-NLM H.B. 3133 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3133
By: Chisum
County Affairs
3/21/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a political subdivision is required to extend workers'
compensation benefits to its employees by becoming a self-insurer,
providing insurance under a workers' compensation insurance policy, or by
entering into an interlocal agreement with other political subdivisions
providing for self-insurance. The Stratford Hospital District operates
without being a subscriber to the worker's compensation insurance program
and has covered employee benefits from district resources.  The cost to the
district has been estimated to be less than one-tenth the cost of the
insurance program. There is concern that the costs of subscription are
prohibitive and may endanger the ability of the hospital district to
continue a viable nursing facility. H.B. 3133  exempts the district from
the requirement to provide worker's compensation benefits to its 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 10, Chapter 470, Acts of the 61st Legislature,
Regular Session, 1969, as follows: 

Sec. 10.  Provides that contracts for construction or purchases involving
the expenditure of more than $15,000, rather than $2,000, may be made only
after advertising in the manner provided by Chapter 252 (Purchasing and
Contracting Authority of Municipalities), Local Government Code, rather
than Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as
amended by Article 2368a (Bond and Warrant Law of 1931), V.T.C.S.  Requires
the provisions of Chapter 2253 (Public Work Performance and Payment Bonds),
Government Code, rather than Article 5160 (Contractors Performance and
Payment Bonds), V.T.C.S., apply to construction contracts let by the
district. 

SECTION 2.  Amends Chapter 470, Acts of the 61st Legislature, Regular
Session, 1969, by adding Section 16A, as follows: 

Sec. 16A.  Exempts the district from Section 504.011 (Method of Providing
Coverage), Labor Code, to the extent that the section requires the district
to provide worker's compensation benefits to its employees. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.