HBA-NRS H.B. 463 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 463 By: Garcia Business & Industry 4/6/2001 Introduced BACKGROUND AND PURPOSE Current law does not require an employer to obtain workers' compensation insurance coverage. House Bill 463 requires an employer of 25 employees or more, including a public employer, to obtain workers' compensation insurance coverage. 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 463 amends the Labor Code to require public employers and other employers to obtain workers' compensation insurance coverage (coverage), except those employers who employ fewer than 25 employees. Exempt employers who elect to obtain coverage are governed by existing statutes that apply to employers who elect to obtain coverage. The bill requires an employer who claims an exemption from the mandatory coverage requirement to report to the Texas Workers' Compensation Commission (commission) in writing before December 1 of each year the number of its employees. The bill provides that the number of employees reported to the commission is binding on the employer for the immediately succeeding calendar year. In addition, the bill authorizes a certified self-insurer who is exempt from the mandatory coverage requirement to withdraw from self-insurance at any time with the approval of the commission. The bill authorizes a certified self-insurer who is subject to the mandatory coverage requirement to withdraw from self-insurance on notification to the commission that the certified self-insurer has obtained coverage through a licensed insurance company. The bill requires the commission to approve the withdrawal of a certified self-insurer who is exempt from the mandatory coverage requirement if the certified self-insurer shows to the satisfaction of the commission that the certified self-insurer has established an adequate program to pay all incurred losses, including unreported losses, that arise out of accidents or occupational diseases first distinctly manifested during the period of operation as a certified self-insurer. The bill also requires the commission to approve the withdrawal of a certified self-insurer who is exempt from the mandatory coverage requirement if the certified self-insurer shows to the satisfaction of the commission that the certified self-insurer has obtained coverage through an insurance company authorized to engage in the business of workers' compensation insurance in this state. The bill provides that an employer commits a violation if the employer is required to provide coverage and does not maintain that coverage in a manner that complies with applicable law. The bill provides that an employer who has committed an administrative violation that results in the denial of benefits to an employee who sustains a compensable injury is liable for payment to the employee of all benefits to which the employee would otherwise be entitled. The bill provides that such an administrative violation by an employer is a Class A administrative violation. The bill also provides that an employer commits a class A misdemeanor if the employer is required to provide coverage and does not maintain that coverage in a manner that complies with workers' compensation insurance coverage as prescribed by law. EFFECTIVE DATE September 1, 2001, and applies only to a claim for workers' compensation benefits based on a compensable injury that occurs on or after January 1, 2002.