CHAPTER 412. STATE OFFICE OF RISK MANAGEMENT
LABOR CODE
TITLE 5. WORKERS' COMPENSATION
SUBTITLE A. TEXAS WORKERS' COMPENSATION ACT
CHAPTER 412. STATE OFFICE OF RISK MANAGEMENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 412.001. DEFINITIONS. In this chapter:
(1) "Board" means the risk management board.
(2) "Director" means the executive director of the office.
(3) "Office" means the State Office of Risk Management.
(4) "State agency" means a board, commission, department,
office, or other agency in the executive, judicial, or
legislative branch of state government that has five or more
employees, was created by the constitution or a statute of this
state, and has authority not limited to a specific geographical
portion of the state.
Amended by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
SUBCHAPTER B. OFFICE
Sec. 412.011. POWERS AND DUTIES OF OFFICE. (a) The State
Office of Risk Management shall administer insurance services
obtained by state agencies, including the government employees
workers' compensation insurance program and the state risk
management programs.
(b) The office shall:
(1) operate as a full-service risk manager and insurance manager
for state agencies as provided by Subsection (c);
(2) maintain and review records of property, casualty, or
liability insurance coverages purchased by or for a state agency;
(3) administer the program for the purchase of surety bonds for
state officers and employees as provided by Chapter 653,
Government Code;
(4) administer guidelines adopted by the board for a
comprehensive risk management program applicable to all state
agencies to reduce property and liability losses, including
workers' compensation losses;
(5) review, verify, monitor, and approve risk management
programs adopted by state agencies;
(6) assist a state agency that has not implemented an effective
risk management program to implement a comprehensive program that
meets the guidelines established by the board;
(7) administer the workers' compensation insurance program for
state employees established under Chapter 501; and
(8) provide risk management services for employees of community
supervision and corrections departments established under Chapter
76, Government Code, as if the employees were employees of a
state agency.
(c) The office shall:
(1) perform risk management for each state agency subject to
Chapter 412; and
(2) purchase insurance coverage for a state agency subject to
Chapter 501, except for an institution subject to Section
501.022, under any line of insurance other than health or life
insurance, including liability insurance authorized under Chapter
612, Government Code.
(d) The board by rule shall develop an implementation schedule
for the purchase under this section of insurance for state
agencies by the office. The board shall phase in, by line of
insurance, the requirement that a state agency purchase coverage
only through the office.
(e) A state agency subject to Chapter 501, except for an
institution subject to Section 501.022, may not purchase
property, casualty, or liability insurance coverage without the
approval of the board.
(f) The office shall work with each state agency to develop an
agency-level business continuity plan under Section 412.054.
(g) The office shall make available to each agency subject to
Section 412.054 guidelines and models for each element listed in
Section 412.054. The office shall assist the agency as necessary
to ensure that:
(1) agency staff understands each element of the business
continuity plan developed under Section 412.054; and
(2) each agency practices implementation of the plan.
(h) The office and the Texas Building and Procurement Commission
shall adopt a memorandum of understanding that:
(1) includes the type, amount, and frequency of safety-related
information that may be shared between the office and the
commission; and
(2) designates points of contact within the office and the
commission to coordinate the sharing of information.
(i) The office shall:
(1) maintain a system to promptly and efficiently act on
complaints filed with the office;
(2) maintain information about parties to the complaint, the
subject matter of the complaint, a summary of the results of the
review or investigation of the complaint, and disposition of the
complaint;
(3) make information available describing the office's
procedures for complaint investigation and resolution; and
(4) periodically notify the complaint parties of the status of
the complaint until final disposition.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.01, eff.
Sept. 1, 2002; Acts 2003, 78th Leg., ch. 527, Sec. 1, eff. Sept.
1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 1, eff. September 1, 2007.
Sec. 412.0111. AFFILIATION WITH OFFICE OF ATTORNEY GENERAL. The
office is administratively attached to the office of the attorney
general and the office of the attorney general shall provide the
facilities for the office, but the office shall be independent of
the office of the attorney general's direction.
Added by Acts 2001, 77th Leg., ch. 1017, Sec. 1.02, eff. Sept. 1,
2002. Redesignated from Labor Code Sec. 412.011(c).
Text of section as amended by Acts 2001, 77th Leg., ch. 559, Sec.
1 and Acts 2001, 77th Leg., ch. 1456, Sec. 14.01
Sec. 412.012. FUNDING. The office shall be administered through
money appropriated by the legislature and through the allocation
program for the financing of state workers' compensation benefits
and risk management costs.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 559, Sec. 1, eff. Sept.
1, 2001; Acts 2001, 77th Leg., ch. 1456, Sec. 14.01, eff. June
17, 2001.
Text of section as amended by Acts 2001, 77th Leg., ch. 1017,
Sec. 1.02
Sec. 412.012. FUNDING. The office shall be administered through
money appropriated by the legislature and through:
(1) interagency contracts for purchase of insurance coverage and
the operation of the risk management program; and
(2) the allocation program for the financing of state workers'
compensation benefits.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1017, Sec. 1.02, eff.
Sept. 1, 2002.
Text of section as renumbered from Labor Code Sec. 412.012(b) and
amended by Acts 2001, 77th Leg., ch. 559, Sec. 1 and Acts 2001,
77th Leg., ch. 1456, Sec. 14.01
Sec. 412.0121. INTERAGENCY CONTRACTS. (a) Each state agency
shall enter into an interagency contract with the office under
Chapter 771, Government Code, to pay the costs incurred by the
office in administering this chapter for the benefit of that
state agency.
(b) Costs payable under the contract include the cost of:
(1) services of office employees;
(2) materials; and
(3) equipment, including computer hardware and software.
(c) The costs of risk management services provided by a state
agency under the interagency contract shall be allocated in the
same proportion and determined in the same manner as the costs of
workers' compensation.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999. Renumbered from Labor Code Sec. 412.012(b) by Acts
2001, 77th Leg., ch. 559, Sec. 1, eff. Sept. 1, 2001; Acts 2001,
77th Leg., ch. 1456, Sec. 14.01, eff. June 17, 2001.
Text of section as renumbered from Labor Code Sec. 412.012(b) and
amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.02
Sec. 412.0121. INTERAGENCY CONTRACTS. (a) Each state agency
shall enter into an interagency contract with the office under
Chapter 771, Government Code, to pay the costs incurred by the
office in administering this chapter for the benefit of that
state agency.
(b) Costs payable under the contract include the cost of:
(1) services of office employees;
(2) materials; and
(3) equipment, including computer hardware and software.
(c) The amount of the costs to be paid by a state agency under
the interagency contract is based on:
(1) the number of employees of the agency compared with the
total number of employees of all state agencies to which this
chapter applies;
(2) the dollar value of the agency's property and asset and
liability exposure compared to that of all state agencies to
which this chapter applies; and
(3) the number and aggregate cost of claims and losses incurred
by the state agency compared to those incurred by all state
agencies to which this chapter applies.
(d) The board may by rule establish the formula for allocating
the cost of this chapter in an interagency contract in a manner
that gives consideration to the factors in Subsection (c) and any
other factors it deems relevant, including an agency's risk
management expenditures, unique risks, and established programs.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999. Renumbered from Labor Code Sec. 412.012(b) and
amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.02, eff. Sept.
1, 2002.
Text of section as renumbered from Labor Code Sec. 412.012(c) and
amended by Acts 2001, 77th Leg., ch. 559, Sec. 1, and Acts 2001,
77th Leg., ch. 1456, Sec. 14.01
Sec. 412.0122. STATE SELF-INSURING FOR WORKERS' COMPENSATION.
The state is self-insuring with respect to an employee's
compensable injury.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999. Renumbered from Labor Code Sec. 412.012(c) and
amended by Acts 2001, 77th Leg., ch. 559, Sec. 1, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1456, Sec. 14.01, eff. June 17,
2001.
Text of section as renumbered from Labor Code Sec. 412.012(c) and
amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.02
Sec. 412.0122. STATE SELF-INSURING FOR WORKERS' COMPENSATION.
(a) The state is self-insuring with respect to an employee's
compensable injury.
(b) The legislature shall appropriate the amount designated by
the appropriation structure for the payment of state workers'
compensation claims costs to the office. This section does not
affect the reimbursement of claims costs by funds other than
general revenue funds, as provided by the General Appropriations
Act.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999. Renumbered from Labor Code Sec. 412.012(c) and
amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.02, eff. Sept.
1, 2002.
Text of section as added by Acts 2001, 77th Leg., ch. 559, Sec.
1, and Acts 2001, 77th Leg., ch. 1456, Sec. 14.01
Sec. 412.0123. ALLOCATION OF WORKERS' COMPENSATION AND RISK
MANAGEMENT COSTS; RISK REWARD PROGRAM.
Text of subsec. (a) as added by Acts 2001, 77th Leg., ch. 559,
Sec. 1
(a) The office shall establish an allocation program for the
payment of workers' compensation claims and risk management
services that are incurred by a state agency subject to Chapter
501.
Text of subsec. (a) as added by Acts 2001, 77th Leg., ch. 1456,
Sec. 14.01
(a) The office shall establish a risk reward the payment of
workers' compensation claims and risk management services that
are incurred by a state agency subject to Chapter 501.
(b) The office shall establish a formula for allocating the
state's workers' compensation costs among covered agencies based
on the claims experience of each agency, the current and
projected size of each agency's workforce, each agency's payroll,
the related costs incurred in administering claims, and other
factors that the office determines to be relevant. The agency may
provide modifiers to the formula to promote the effective
implementation of risk management programs by state agencies.
(c) The board has final authority to determine the assessments
to be paid by the covered agencies.
Added by 2001, 77th Leg., ch. 559, Sec. 1, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1456, Sec. 14.01, eff. June 17, 2001.
Text of section as renumbered from Labor Code Sec. 412.012(d) by
Acts 2001, 77th Leg., ch. 1017, Sec. 1.02
Sec. 412.0123. DEPOSIT OF WORKERS' COMPENSATION SUBROGATION
RECOVERIES. (a) All money recovered by the director from a
third party through subrogation shall be deposited into the state
workers' compensation account in general revenue.
(b) Funds deposited under this section may be used for the
payment of workers' compensation benefits to state employees.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999. Renumbered from Labor Code Sec. 412.012(d) and
amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.02, eff. Sept.
1, 2002.
Sec. 412.0124. DEPOSIT OF WORKERS' COMPENSATION SUBROGATION
RECOVERIES. All money recovered by the director from a third
party through subrogation shall be deposited into the state
workers' compensation account in general revenue.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 4, eff.
Sept. 1, 1999. Renumbered from Labor Code Sec. 412.012(d) and
amended by Acts 2001, 77th Leg., ch. 1456, Sec. 14.01, eff. June
17, 2001; Acts 2001, 77th Leg., ch. 559, Sec. 1, eff. Sept. 1,
2001.
Sec. 412.0125. RETURN-TO-WORK COORDINATION SERVICES; CASE
MANAGEMENT. (a) The office shall provide each state agency with
return-to-work coordination services as necessary to facilitate
an injured employee's return to employment. The office shall
notify each state agency of the availability of return-to-work
coordination services.
(b) As part of return-to-work coordination services under this
section, the office shall:
(1) establish a time frame for case management of an injured
employee that ensures services are provided to the injured
employee as soon as practicable to improve the employee's chance
of returning to work as quickly as possible;
(2) provide guidance to each state agency to identify
appropriate services for an injured employee;
(3) adopt rules that set standards and provide guidance to a
state agency interacting with an injured employee; and
(4) implement any other services provided under Section 413.021
that will facilitate the reintegration of an injured employee.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 2, eff. September 1, 2007.
Sec. 412.0126. ANALYSIS. (a) The board shall adopt rules as
necessary to collect data on lost time and return-to-work
outcomes of each state agency to allow full evaluations of
successes and of barriers to achieving timely return to work
after an injury.
(b) The office shall:
(1) collect and analyze data from each state agency regarding
lost time, including sick leave and annual leave used by an
injured employee;
(2) identify state agencies that need additional training or
case management services related to return-to-work services;
(3) modify as necessary the office's assessment computation to
encourage state agencies to effectively reduce workers'
compensation costs;
(4) incorporate as necessary return-to-work goals developed by
the division of workers' compensation under Section 413.025;
(5) work with the workers' compensation research and evaluation
group to develop analytical tools to assist the office with its
duties under this section;
(6) require state agencies to report information in a
standardized format;
(7) monitor the information reported by each state agency; and
(8) evaluate the information provided under this section to
determine outcomes over time for each state agency.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 2, eff. September 1, 2007.
Sec. 412.0127. PAYMENT BY ELECTRONIC FUNDS TRANSFER. (a)
Notwithstanding Section 403.016, Government Code, and except as
provided by Subsection (b), the office shall pay an employee
entitled to an indemnity benefit payment using the same payment
method as the method by which the employee receives the
employee's wages.
(b) The office shall adopt rules to facilitate the use of
electronic funds transfer as the preferred method of payment
under this section.
(c) The office may issue an indemnity benefit payment by check
on request or if electronic funds transfer is not feasible.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 2, eff. September 1, 2007.
Sec. 412.0128. CONFIDENTIALITY OF INJURY INFORMATION.
Information in or derived from a workers' compensation claim file
regarding an employee is confidential and may not be disclosed by
the office except as provided by this subchapter or other law.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 2, eff. September 1, 2007.
SUBCHAPTER C. BOARD
Sec. 412.021. RISK MANAGEMENT BOARD. (a) The office is
governed by the risk management board. Members of the board must
have demonstrated experience in the fields of:
(1) insurance and insurance regulation;
(2) workers' compensation; and
(3) risk management administration.
(a-1) A person may not be a member of the board if the person or
the person's spouse:
(1) is employed by or participates in the management of a
business entity or other organization regulated by or receiving
money from the office;
(2) owns or controls, directly or indirectly, more than a 10
percent interest in a business entity or other organization
regulated by or receiving money from the office; or
(3) uses or receives a substantial amount of tangible goods,
services, or money from the office other than compensation or
reimbursement authorized by law for risk management board
membership, attendance, or expenses.
(b) The board is composed of five members appointed by the
governor.
(c) Members of the board hold office for staggered terms of six
years with one or two members' terms expiring February 1 of each
odd-numbered year. A member appointed to fill a vacancy shall
hold office for the remainder of that term.
(d) The governor shall designate one member of the board as
presiding officer. The presiding officer shall serve in that
capacity at the pleasure of the governor.
(e) The board is subject to Chapters 552 and 2001, Government
Code.
(f) The risk management board and the office are subject to
Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the board is
abolished and this section expires September 1, 2019.
(g) Appointments to the board shall be made without regard to
the race, color, disability, sex, religion, age, or national
origin of the appointee.
(h) The board shall develop and implement policies that clearly
separate the policymaking responsibilities of the board and the
management responsibilities of the director and the staff of the
risk management office.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.03, eff.
Sept. 1, 2002; Acts 2001, 77th Leg., ch. 1481, Sec. 3.02, eff.
Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1170, Sec. 40.01, eff.
Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 3, eff. September 1, 2007.
Sec. 412.022. TRAINING PROGRAM FOR BOARD MEMBERS. (a) A person
who is appointed to and qualifies for office as a member of the
board may not vote, deliberate, or be counted as a member in
attendance at a meeting of the board until the person completes a
training program that complies with this section.
(b) A training program established under this section must
provide information to the member regarding:
(1) the enabling legislation that created the office and the
office's programs, functions, rules, and budget;
(2) the results of the most recent formal audit of the office;
(3) the requirements of laws relating to open meetings, public
information, administrative procedure, and conflicts of interest;
and
(4) any applicable ethics policies adopted by the office or the
Texas Ethics Commission.
(c) A person appointed to the board is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.04, eff.
Sept. 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 4, eff. September 1, 2007.
Sec. 412.023. EFFECT OF LOBBYING ACTIVITY. (a) In this
section, "Texas trade association" means a cooperative and
voluntarily joined statewide association of business or
professional competitors in this state designed to assist its
members and its industry or profession in dealing with mutual
business or professional problems and in promoting their common
interest.
(b) A person may not be a member of the board and may not be an
employee of the office employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.) if:
(1) the person is an officer, employee, or paid consultant of a
Texas trade association in the field of insurance or health care;
or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of insurance
or health care.
(c) A person may not serve as a member of the board or act as
the general counsel to the board if the person is required to
register as a lobbyist under Chapter 305, Government Code,
because of the person's activities for compensation on behalf of
a profession related to the operation of the office.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 5, eff. September 1, 2007.
Sec. 412.024. GROUNDS FOR REMOVAL FROM BOARD. (a) It is a
ground for removal from the board if a member:
(1) does not have at the time of taking office the
qualifications required by Section 412.021;
(2) does not maintain during service on the board the
qualifications required by Section 412.021;
(3) is ineligible for membership under Section 412.021 or
412.023;
(4) cannot because of illness or incapacity discharge the
member's duties for a substantial part of the member's term; or
(5) is absent from more than half of the regularly scheduled
board meetings that the member is eligible to attend during a
calendar year without an excuse approved by a majority vote of
the board.
(a-1) The validity of an action of the board is not affected by
the fact that it is taken when a ground for removal of a board
member exists.
(b) If the director knows that a potential ground for removal
exists, the director shall notify the presiding officer of the
board of the potential ground. The presiding officer shall then
notify the governor and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the director shall notify the
next highest officer of the board, who shall notify the governor
and the attorney general that a potential ground for removal
exists.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 6, eff. September 1, 2007.
Sec. 412.027. USE OF TECHNOLOGY. The board shall implement a
policy requiring the office to use appropriate technological
solutions to improve the office's ability to perform its
functions. The policy must ensure that the public is able to
interact with the office on the Internet.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 7, eff. September 1, 2007.
SUBCHAPTER D. GENERAL POWERS AND DUTIES OF BOARD
Sec. 412.031. RULEMAKING AUTHORITY. The board shall adopt rules
as necessary to implement this chapter and Chapter 501, including
rules relating to reporting requirements for a state agency.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
Sec. 412.032. BOARD'S REPORT TO LEGISLATURE. (a) Based on the
recommendations of the director, the board shall report to each
legislature relating to:
(1) methods to reduce the exposure of state agencies to the
risks of property and liability losses, including workers'
compensation losses;
(2) the operation, financing, and management of those risks;
(3) the handling of claims brought against the state;
(4) return-to-work outcomes under Section 412.0126 for each
state agency; and
(5) the business continuity plan developed by state agencies
under Section 412.054.
(b) The report must include:
(1) the frequency, severity, and aggregate amount of open and
closed claims in the preceding biennium by category of risk,
including final judgments;
(2) the identification of each state agency that has not
complied with the risk management guidelines and reporting
requirements of this chapter;
(3) recommendations for the coordination and administration of a
comprehensive risk management program to serve all state
agencies, including recommendations for any necessary statutory
changes;
(4) a report of outcomes by state agency of lost time due to
employee injury and return-to-work programs based on the
information collected and analyzed by the office in Section
412.0126; and
(5) an evaluation of business continuity plans developed by
state agencies under Section 412.054 for completeness and
viability.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 8, eff. September 1, 2007.
Sec. 412.033. HIRING DIRECTOR. The board shall hire a qualified
person to serve as director of the office. The director serves at
the pleasure of the board.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
Sec. 412.034. PUBLIC HEARING. The board shall develop and
implement policies that provide the public with a reasonable
opportunity to appear before the board and to speak on any issue
under the jurisdiction of the office.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 9, eff. September 1, 2007.
Sec. 412.035. DISPUTE RESOLUTION. (a) The board shall develop
and implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter 2008,
Government Code, for the adoption of office rules; and
(2) appropriate alternative dispute resolution procedures under
Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the office's jurisdiction.
(b) The office's procedures relating to alternative dispute
resolution must conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The board shall designate a trained person to:
(1) coordinate the implementation of the policy adopted under
Subsection (a);
(2) serve as a resource for any training needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the office.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 10, eff. September 1, 2007.
SUBCHAPTER E. DIRECTOR
Sec. 412.041. DIRECTOR DUTIES. (a) The director serves as the
state risk manager.
(b) The director shall supervise the development and
administration of systems to:
(1) identify the property and liability losses, including
workers' compensation losses, of each state agency;
(2) identify the administrative costs of risk management
incurred by each state agency;
(3) identify and evaluate the exposure of each state agency to
claims for property and liability losses, including workers'
compensation; and
(4) reduce the property and liability losses, including workers'
compensation, incurred by each state agency.
(c) In addition to other duties provided by this chapter, by
Chapter 501, and by the board, the director shall:
(1) keep full and accurate minutes of the transactions and
proceedings of the board;
(2) be the custodian of the files and records of the board;
(3) prepare and recommend to the board plans and procedures
necessary to implement the purposes and objectives of this
chapter and Chapter 501, including rules and proposals for
administrative procedures consistent with this chapter and
Chapter 501;
(4) hire staff as necessary to accomplish the objectives of the
board and may delegate powers and duties to members of that staff
as necessary;
(5) be responsible for the investigation of complaints and for
the presentation of formal complaints;
(6) attend all meetings of the board as a nonvoting participant;
and
(7) handle the correspondence of the board and obtain, assemble,
or prepare the reports and information that the board may direct
or authorize.
(d) If necessary to the administration of this chapter and
Chapter 501, the director, with the approval of the board, may
secure and provide for services that are necessary and may employ
and compensate within available appropriations professional
consultants, technical assistants, and employees on a full-time
or part-time basis.
(e) The director also serves as the administrator of the
government employees workers' compensation insurance program.
(f) In administering and enforcing Chapter 501 as regards a
compensable injury with a date of injury before September 1,
1995, the director shall act in the capacity of employer and
insurer. In administering and enforcing Chapter 501 as regards a
compensable injury with a date of injury on or after September 1,
1995, the director shall act in the capacity of insurer.
(g) The director shall act as an adversary before the division
and courts and present the legal defenses and positions of the
state as an employer and insurer, as appropriate.
(h) For the purposes of Subsection (f) and Chapter 501, the
director is entitled to the legal counsel of the attorney
general.
(i) In administering Chapter 501, the director is subject to the
rules, orders, and decisions of the commissioner in the same
manner as a private employer, insurer, or association.
(j) The director shall:
(1) prepare for adoption by the board procedural rules and
prescribe forms necessary for the effective administration of
this chapter and Chapter 501; and
(2) prepare for adoption by the board and enforce reasonable
rules for the prevention of accidents and injuries.
(k) The director shall hold hearings on all proposed rules and
provide reasonable opportunity for the officers of state agencies
to testify at hearings on all proposed rules under this chapter
and Chapter 501.
(l) The director shall furnish copies of all rules to:
(1) the commissioner of insurance;
(2) the commissioner; and
(3) the administrative heads of all state agencies affected by
this chapter and Chapter 501.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.05, eff.
Sept. 1, 2002.
Amended by:
Acts 2005, 79th Leg., Ch.
265, Sec. 3.225, eff. September 1, 2005.
Sec. 412.042. REPORTS TO THE LEGISLATURE. (a) The director
shall report to the legislature at the beginning of each regular
session regarding the services provided by the office to a state
agency subject to Chapter 501.
The report required under this subsection shall be dated January
1 of the year in which the regular session is held and must
include:
(1) a summary of administrative expenses;
(2) a statement:
(A) showing the amount of the money appropriated by the
preceding legislature that remains unexpended on the date of the
report; and
(B) estimating the amount of that balance necessary to
administer Chapter 501 for the remainder of that fiscal year; and
(3) an estimate, based on experience factors, of the amount of
money that will be required to administer Chapter 501 and pay for
the compensation and services provided under Chapter 501 during
the next succeeding biennium.
(b) In addition to the report required under Subsection (a), the
director shall report to the legislature not later than February
1 of each odd-numbered year regarding insurance coverage
purchased for state agencies, premium dollars spent to obtain
that coverage, and losses incurred under that coverage.
(c) On an annual basis, not later than September 30 of each
year, agencies exempt under Section 412.052 of this article shall
provide a written report to the Legislative Budget Board
identifying policies purchased under any line of insurance other
than life or health insurance. The report should include a
description of the policy, name of the insurance company, annual
premium, coverage limits, deductibles, and losses incurred under
that coverage.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 953, Sec. 1, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1017, Sec. 1.06, eff.
Sept. 1, 2002.
SUBCHAPTER F. STATE AGENCIES
Sec. 412.051. DUTIES OF STATE AGENCIES; INSURANCE REPORTING
REQUIREMENTS. (a) Each state agency shall actively manage the
risks of that agency by:
(1) developing, implementing, and maintaining programs designed
to assist employees who sustain compensable injuries to return to
work; and
(2) cooperating with the office and the Texas Department of
Insurance in the purchase of property, casualty, and liability
lines of insurance coverage.
(b) In addition to the report required under Section 412.053,
each state agency that intends to purchase property, casualty, or
liability insurance coverage in a manner other than through the
services provided by the office shall report the intended
purchase to the office in the manner prescribed by the office.
The state agency shall report the intended purchase not later
than the 30th day before the date on which the purchase of the
coverage is scheduled to occur. The office may require a state
agency to submit copies of insurance forms, policies, and other
relevant information.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.07, eff.
Sept. 1, 2002.
Sec. 412.052. EXEMPTION OF CERTAIN STATE AGENCIES. This chapter
does not apply to a state agency that had medical malpractice
insurance coverage, workers' compensation insurance coverage, or
other self-insurance coverage with associated risk management
programs before January 1, 1989.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997.
Sec. 412.053. ANNUAL REPORT BY STATE AGENCY. (a) Each state
agency shall report to the director for each fiscal year:
(1) the location, timing, frequency, severity, and aggregate
amounts of losses by category of risk, including open and closed
claims and final judgments;
(2) loss information obtained by the state agency in the course
of its administration of the workers' compensation program;
(3) detailed information on existing and potential exposure to
loss, including property location and values, descriptions of
agency operations, and estimates of maximum probable and maximum
possible losses by category of risk;
(4) estimates by category of risk of losses incurred but not
reported;
(5) information the director determines necessary to prepare a
Texas Workers' Compensation Unit Statistical Report; and
(6) additional information that the director determines to be
necessary.
(b) The information shall be reported not later than the 60th
day before the last day of each fiscal year.
Added by Acts 1997, 75th Leg., ch. 1098, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1017, Sec. 1.08, eff.
Sept. 1, 2002.
Sec. 412.054. BUSINESS CONTINUITY PLAN. (a) Each state agency
shall work with the office to develop an agency-level business
continuity plan that outlines procedures to keep the agency
operational in case of disruptions to production, finance,
administration, or other essential operations. The plan must
include detailed information regarding resumption of essential
services after a catastrophe, including:
(1) coordination with public authorities;
(2) management of media;
(3) customer service delivery;
(4) assessing immediate financial and operational needs; and
(5) other services as determined by the office.
(b) A business continuity plan is considered to meet the
requirements of this section if the agency forwards the plan to
the office for review and the agency is:
(1) involved in the delivery of emergency services as a member
of the governor's Emergency Management Council; or
(2) part of the State Data Center program.
Added by Acts 2007, 80th Leg., R.S., Ch.
407, Sec. 11, eff. September 1, 2007.