HBA-ATS, MPA, MAJ H.B. 542 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 542
By: Brimer
Business & Industry
6/3/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, all sitting board members of the Texas
Workers' Compensation Insurance Fund were required to be policyholders of
the fund.  Since 1994, the policyholder base of the fund has decreased
nearly 50 percent, making it increasingly difficult to locate and recruit
board members.  H.B. 542 repeals the requirement that board members be
policyholders. 

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 3, Article 5.76-3, Insurance Code, by deleting
the requirement that to be eligible for appointment as a member of the
board of directors of the Texas Workers' Compensation Insurance Fund
(board) a person must be a policyholder of the fund or an officer or
employee of a policyholder and must maintain that status during the period
of service on the board. Removes the provision that failure to maintain
eligibility requirements disqualifies  a board member and creates a vacancy
on the board.  Deletes the requirement that the initial appointees to the
board must be employers in this state.  Creates Subsection (b) from
existing text.  Redesignates existing Subsections (e)-(r) to Subsections
(d)-(q).  Makes conforming and nonsubstantive changes.   
 
SECTION 2.  Emergency clause.
            Effective date: upon passage.