HBA-MPM H.B. 3213 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3213
By: George
Business & Industry
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Some organizations may use deceptive names to create the impression that
they are a part of or affiliated with the Texas Workers' Compensation
Commission (TWCC).  The groups are often affiliated with medical care
providers or attorneys who specialize in workers' compensation cases.  This
may cause confusion among injured workers and lead them to believe they are
accessing services provided by the state.  House Bill 3213 prohibits the
use of certain word combinations, acronyms, and pictorial representations
that suggest that a person is affiliated with or sponsored or approved by
TWCC and provides penalties for violations of this prohibition. 

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 405.003, Labor Code) of this bill. 

ANALYSIS

House Bill 3213 amends the Labor Code to prohibit a person, except as
authorized by law, from knowingly using or causing to be used, in
connection with any impersonation, advertisement, solicitation, business
name, business activity, document, product, or service made or offered by
the person: 

_the words "Texas Workers' Compensation Commission," "Workers' Compensation
Commission," or "Texas Workers' Compensation"; 

_any term using both "Texas" and "Workers' Compensation" or any term using
both "Texas" and "Workers' Comp"; 

_the initials "T.W.C.C."; or

_any combination or variation of the words or initials, or any term
deceptively similar to such words or initials. 

The bill prohibits a person from knowingly using or causing to be used a
word, term, or initials described above alone or in conjunction with the
state seal or a representation of the state seal, a picture or map of
Texas, or the official logo of the Texas Worker's Compensation Commission
(TWCC) or a representation of TWCC's star logo. 

The bill authorizes TWCC to adopt rules relating to the regulation of the
use of its name and other rules as necessary to implement these provisions.
The bill provides that a person who misuses the TWCC name or symbols
commits a state jail felony and sets forth a civil penalty not to exceed
$5,000 per violation.  The bill requires the attorney general, at the
request of TWCC, to bring an action to collect a civil penalty.  The bill
authorizes TWCC to assess an administrative penalty for a violation of
these provisions not to exceed $5,000 per violation. The bill authorizes
the attorney general or a district attorney general to bring an action to
enjoin or restrain a violation or threatened violation of the provisions at
the request of TWCC.  TWCC  is authorized to recover the costs of
investigating an alleged violation if an injunction is issued.  The bill
specifies that the remedies provided by the bill are not exclusive and may
be sought in any combination determined by TWCC. 

EFFECTIVE DATE

September 1, 2001.