HBA-JEK, CCH C.S.H.B. 2613 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2613 By: Hochberg Business & Industry 4/16/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, if an employee with more than one job is injured on one of the jobs, the employee only receives workers' compensation for the job where the employee was injured. However, the injury may prevent the employee from working at another job as well. C.S.H.B. 2613 allows an injured worker with multiple employment to receive workers' compensation benefits in an amount that reflects the employee's average weekly wage. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Workers' Compensation Commission in SECTION 1 (Section 403.006, Labor Code) and SECTION 3 (Section 408.042, Labor Code) of this bill. ANALYSIS C.S.H.B. 2613 amends the Labor Code to set forth provisions regarding workers' compensation for injured employees with multiple employment who are eligible for temporary, impairment, supplemental, lifetime, or death benefits. The bill provides that for each of the employers for whom an injured employee has worked for at least 13 weeks immediately preceding the date of an injury, the average weekly income wage is equal to the sum of the employee's wages divided by 13. For an employee who has worked less than 13 weeks immediately preceding the date of the injury, the average weekly wage is equal to the weekly wage that the employer pays similar employees for similar services, or if a similar employee does not exist, the usual weekly wage paid in that vicinity for the same or similar services. The average weekly wage of an employee with multiple employment who works less than a full-time work week, but does not do so on a regular basis, is adjusted to the weekly wage level that the employee would have attained by working a full-time work week at the employee's average rate of pay. The bill provides that for an employee with multiple employment, only the employee's wages that are reportable for federal income tax purposes may be considered. The bill requires the Texas Workers' Compensation Commission (TWCC) to prescribe a form and determine by rule the manner in which to collect information regarding the wages of employees with multiple employment. If TWCC determines that computing the average weekly wage for an employee is impractical or unreasonable, TWCC is required to set the average weekly wage in a manner that more fairly reflects the employee's average weekly wage or in a manner agreed to by the employer and employee. The bill authorizes TWCC by rule to define methods to determine a fair and just average weekly income benefit that is consistent with applicable law. C.S.H.B. 2613 entitles an insurance carrier to apply for and to receive reimbursement at least annually from the subsequent injury fund for the amount of income benefits paid to a worker that are based on employment other than the employment during which the compensable injury occurred. The bill authorizes TWCC to adopt rules that govern the documentation, application process, and other administrative requirements necessary to implement this provision. The bill provides that the subsequent injury fund is liable for the reimbursement of insurance carrier claims of overpayment of benefits based on interlocutory orders of TWCC, consistent with the priorities established by TWCC rule, and for the reimbursement of insurance carrier claims consistent with the priorities established by rule by TWCC. The bill authorizes TWCC to make partial payment of insurance carrier claims based on the actuarial assessment of available funding. The bill provides that if TWCC determines that the funding of the subsequent injury fund for a compensable death is not adequate to meet its obligations, the fund shall be supplemented by the collection of a maintenance tax paid by insurance carriers, other than a governmental entity. The rate of assessment must be adequate to provide 120 percent of the projected unfunded liabilities of the fund for the next biennium as certified by an independent actuary or financial advisor. The bill requires TWCC's actuary or financial advisor to report biannually to the Research and Oversight Council on Workers' Compensation on the financial condition and projected assets and liabilities of the subsequent injury fund and to make the reports available to members of the legislature and the public. The bill authorizes TWCC to purchase annuities to provide for payments due to claimants under the Texas Workers' Compensation Act. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2613 differs from the original bill by authorizing the Texas Workers' Compensation Commission (TWCC) to make partial payment of insurance carrier claims based on the actuarial assessment of available funding from the subsequent injury fund. The substitute authorizes TWCC to purchase annuities to provide for payments due to claimants under the Texas Workers' Compensation Act. C.S.H.B. 2613 requires TWCC to prescribe a form and determine by rule the manner in which to collect information regarding the wages of employees with multiple employment. The substitute requires a parttime employee or employee with multiple employment to document and verify wage payments for the determination of income benefits. The substitute conforms to Texas Legislative Council style and format.