April 5, 2017 WC Legislative Bulletin No

April 5, 2017 WC Legislative Bulletin No. 2017-05

To: Persons Interested in Workers’ Compensation Issues

From: Steve Nichols, Manager, Workers’ Compensation Services

Re: April 3, 2017 Texas House of Representatives Business & Industry Committee Hearing

The Texas House of Representatives’ Business & Industry Committee (B&I Committee) held a public hearing on April 3, 2017 to consider 10 workers’ compensation related bills.

Workers’ Compensation Legislation and Related Legislation Considered by the B&I Committee

The committee considered the following workers’ compensation bills:

Bill Number Author Bill Caption

HB 919 Rep. Kyle Kacal Relating to workers' compensation insurance coverage for certain intra-state fire mutual aid system team members and regional incident management team members.

HB 1477 Rep. Armando Walle Relating to required workers' compensation insurance coverage for building and construction contractors.

HB 1983 Rep. John Wray Relating to the eligibility of a firefighter or a peace officer for workers' compensation benefits for posttraumatic stress disorder.

HB 1989 Rep. Hugh Shine Relating to the requirements for withdrawal by a certified self- insurer from workers' compensation self-insurance.

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WC Legislative Bulletin No. 2017-03: March 27, 2017 House B&I Committee Hearing A Copyrighted Publication of the Insurance Council of Texas – April 5, 2017 This Bulletin is Confidential and for Member Use Only

Bill Number Author Bill Caption

HB 1990 Rep. Hugh Shine Relating to the administration of the Texas certified self-insurer guaranty trust fund.

HB 2054 Rep. René O. Oliveira Relating to a cost-of-living increase applicable to death benefits paid under the workers' compensation system.

HB 2055 Rep. René O. Oliveira Relating to workers' compensation death benefit eligibility of certain spouses.

HB 2082 Rep. Dustin Burrows Relating to the designation of a liaison to assist first responders with workers' compensation claims.

HB 2119 Rep. Kyle Kacal Relating to workers' compensation death benefit eligibility for certain spouses of first responders killed in the line of duty.

HB 2326 Rep. Nicole Collier Relating to medical causation narrative reports created under the Texas Workers' Compensation Act.

Three Pending Workers’ Compensation Bills Voted Out of Committee

The committee voted the following three workers’ compensation bills out of the committee. The bills had previously been considered by the committee during a public hearing held on March 27, 2107 and left pending.

HB 2060, by Rep. René O. Oliveira, relating to the eligibility requirements for employment as an ombudsman of the Office of Injured Employee Counsel (OIEC) was voted out of committee and referred to the House Local & Consent Calendar.

HB 2111, by Rep. Romero, relating to changing statutory references to hearing officer and hearings officer to administrative law judge under the workers' compensation system as voted out of committee and referred to the House Local & Consent Calendar.

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HB 2112, by Rep. Romero, relating to certain workers' compensation reporting requirements was voted out of committee and referred to the House Local & Consent Calendar.

House Bills Considered by the B&I Committee

HB 2082

Rep. Burrows laid out the bill and reported that he filed the bill after having been contacted by several police officers who shared their struggles to make it through a very complex system. He noted that the bill is intended to provide first responders with a single point of contact within OIEC who can help the first responders navigate the Texas workers’ compensation system.

Several police officers who were injured on the job and the wife of a deceased police officer who died from complications related to his injury testified in support of the bill.

Amy Lee, Special Advisor to the Commissioner of Workers’ Compensation, responded to a question from the committee as to whether the DWC had the necessary staff to contact all injured employees and how the DWC would address assisting injured employees if the bill was passed.

Lee testified that the OIEC would be responsible for implementing the bill if it was passed. She also testified about the reasons insurance carriers deny claims, medical bills, and proposed health care.

Jessica Barta, the Injured Employee Counsel and head of the OIEC, testified that the OIEC addresses each claim on a case by case basis. She noted that the OIEC would designate a single employee to serve as the liaison for first responders seeking assistance with their claims.

The bill was left pending in the committee. Rep. Oliveira said he is willing to serve as the co- author of the bill.

HB 919

Rep. Kacal laid out the bill. He stated that the bill is intended to provide workers' compensation coverage under certain circumstances for an individual, other than an employee of The Texas A&M University System, who has been officially designated as a member of an intrastate fire mutual aid system team, or a regional incident management team, that is coordinated by the Texas A&M University System.

Amy Lee testified that the DWC does not have a count of how many employees would be covered by this bill. She noted that the bill would cover firefighters who are either being trained or responding to a disaster declaration.

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Stephen Vollbrecht, the Executive Director of the State Office of Risk Management, testified about the anticipated cost of the implementation of the legislation.

Two other state agency witnesses testified on the bill and provided information about the intrastate fire mutual aid system team system.

The bill was left pending in the committee.

HB 2119

Rep. Kacal laid out the bill. He said the bill would amend the Labor Code to allow surviving spouses of first responders who are currently ineligible to receive workers' compensation death benefit payments due to remarriage to begin receiving death benefits again, regardless of the date of the death of the first responder or the date of remarriage. Rep. Kacal noted that surviving spouses made eligible for benefits by the bill would be entitled only to benefits accrued on or after September 1, 2017.

Amy Lee answered the committee’s questions regarding what triggers a surviving spouse’s entitlement to death benefits. Chairman Oliveira asked Lee to obtain information regarding the number of first responder deaths and provide that information to the committee.

One witness testified that there are 205 surviving law enforcement spouses whose peace officer spouses died on duty in Texas since 1984. The witness noted that only five percent of those spouses have remarried.

Brad McClellan, an attorney who represents injured employees, testified that the Subsequent Injury Fund (SIF) could be used to help pay for the benefits owed to the surviving spouses of first responders.

David Reagan, the General Counsel for the Texas Municipal Governmental Risk Pool (TMGRP), testified against the bill. Reagan said TMGRP is concerned that the bill is being contemplated without understanding how death benefits are paid. He testified that all other states that pay death benefits have a limit on the benefits. Reagan expressed concern that the bill is retroactive and allows the claims to be reopened on or after the effective date of the bill. He testified that the bill’s retroactive provisions may be unconstitutional. Reagan suggested that the Texas Legislature hold off on the passage of the bill until the TDI Workers’ Compensation Research Group completes two planned studies regarding the adequacy of income benefits before making an additional public policy on death benefits for surviving spouses of first responders.

Amy Lee then returned and testified about the SIF. Lee provided an overview of the SIF and the types of payments made out of the fund.

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The bill was left pending in the committee.

HB 1983

Rep. Wray laid out the bill. He said the bill would add post-traumatic stress disorder (PTSD) as a compensable injury for peace officers and firefighters if the PTSD is caused by events occurring in the course and scope of employment, and the preponderance of evidence indicates the work was a substantial contributing factor. Rep. Wray said that currently first responders may only get coverage for PTSD by declaring that they have a mental condition which can be grounds for their removal from their duties.

Several persons, including peace officers and firefighters, testified in favor of the bill.

39 individuals registered as supporting the bills. Two persons registered as opposing the bill.

The bill was left pending in the committee.

HB 1477

Rep. Walle laid out the bill. He said this is the fourth time such a bill has been filed. Rep. Walle said the bill would require contractors and sub-contractors to provide workers’ compensation insurance to their employees. He noted that the Texas construction industry leads Texas in the number of job related deaths.

Several persons, including Emily Timm of the Workers Defense Project, testified in support of the bill. Ned Muñoz, vice president of regulatory affairs and general counsel at the Texas Association of Builders, testified against the bill. Muñoz recommended that an interim charge be considered to study workers’ compensation coverage for contractors and sub-contractors in lieu of the passage of the bill.

The bill was left pending in the committee.

HB 1989

Rep. Shine laid out the bill. He reported that the bill would amend the Labor Code as it relates to the requirements for withdrawal by a certified self-insurer from workers' compensation self- insurance. Rep. Shine said the bill will allow a certified-self insurer who is withdrawing from self-insurance to purchase a policy to cover their remaining claims related responsibilities.

Sam J. McMurry, executive director of the Texas Self-Insurance Association, testified in support of the bill.

The bill was left pending in committee.

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HB 1990

Rep. Shine laid out the bill. He reported that the bill would amend the Labor Code relating to the administration of the Texas Certified Self-insurer Guaranty Trust Fund. Rep. Shine noted that the bill provides that the fund may not exceed three percent of the combined value of the security deposits of all certified self-insurers and allows the fund’s board to determine and recommend the balance of the trust fund to the commissioner for approval.

Sam J. McMurry, executive director of the Texas Self-Insurance Association, testified in support of the bill.

The bill was left pending in committee.

HB 2326

Rep. Collier laid out a committee substitute and said the bill takes steps “toward leveling the playing field for an injured employee” by amending the Labor Code to require an insurance carrier to reimburse a treating doctor for a medical causation narrative report in an extent of injury dispute, regardless of whether the injured employee, a representative of the injured employee, or the insurance carrier requests the report.

Several persons testified in support of the bill.

Jo Betsy Norton, vice president of public affairs at Texas Mutual Insurance Company, testified on the bill. She reported that committee substitute language that is being presented to the committee addresses concerns raised by the insurance industry.

There was no testimony against the bill.

The bill was left pending in committee.

The committee adjourned so that members could participate in a meeting of the full House of Representatives.

Later in the afternoon, the committee reconvened and considered HB 2054 and 2055.

HB 2054

Rep. Oliveira laid out the bill. He said the bill would amend the Labor Code relating to a cost-of- living increase applicable to death benefits paid under the workers' compensation system.

Several persons testified in support of the bill.

The bill was left pending in committee.

This Bulletin is Confidential and for Member Use Only

HB 2055

Rep. Oliveira laid out the bill and said it would amend the Labor Code relating to workers' compensation death benefit eligibility of certain spouses. The bill allows eligible spouses to retain their death benefits even if they remarry.

There was testimony in support of and against the bill.

The bill was left pending in committee. .

This Bulletin is Confidential and for Member Use Only