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


Office of House Bill AnalysisH.B. 542
By: Brimer
Business & Industry
2/11/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, all sitting board members of the Texas Workers' Compensation
Fund must 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.  This will provide the
fund the option of recruiting board members from outside its policyholder
base, if necessary. 

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.  Deletes former text of Subsection (c).  Redesignates
existing Subsections (e) - (r) to Subsections (d) - (q).  Makes conforming
and nonsubstantive changes.   
 
SECTION 2.  Emergency clause.
            Effective date: upon passage.