HBA-BSM, CCH H.B. 3459 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3459
By: Brimer
Business & Industry
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides that workers' compensation benefits are the exclusive
remedy of an employee covered by workers' compensation insurance against
the employer or an agent or employee of the employer for work-related
injuries sustained by the employee.  Employees who sustain injuries at work
(injured employees) must seek compensation from the insurance carrier, and
may not seek common-law remedies from their employer and the employer's
agents and employees.  However, current law does not prohibit injured
employees from seeking compensation through the courts from business
entities such as parent or subsidiary corporations of the employer who
provide workers' compensation coverage.  House Bill 3459 prohibits an
employee from seeking common-law remedies from a parent corporation,
subsidiary corporation, or subsidiary of a parent corporation of the
employer, and their agents and 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. 

ANALYSIS

House Bill 3459 amends the Labor Code to provide that the recovery of
workers' compensation benefits is the exclusive remedy of an employee
covered by workers' compensation insurance coverage or a legal beneficiary
for the death of, or a work-related injury sustained by the employee
against a parent corporation of the employer, a subsidiary corporation of
the employer, or any other subsidiary of the parent corporation of the
employer that is a named insured on the employer's policy of workers'
compensation insurance or is covered by a certificate of authority to
self-insure issued by the Texas Workers' Compensation Commission, or an
agent or employee of the parent corporation or subsidiary. 

EFFECTIVE DATE

September 1, 2001.