Five Legislative Provisions Take Effect September 1, 2015

It has been three months since the Texas Legislature adjourned. Five of the statutory changes that the Legislature enacted during session will take effect September 1, 2015. Below is a recap of the bills that become effective next week:

Increase in Burial Benefits: SB 653 by Sen. Kevin Eltife (R-Tyler). The bill increases the amount of burial benefits required to be paid by an insurance carrier under the workers’ compensation system from the present maximum payment of $6,000 to a maximum payment of $10,000.

The change in law made by this bill apply to a claim for workers’ compensation burial benefits based on a compensable injury that occurs on or after September 1, 2015. A claim based on a compensable injury that occurs before that date is governed by the law in effect on the date the compensable injury occurred, and the former law is continued in effect for that purpose.

TIBs Increase for Low Wage Earners: SB 901 by Sen. Kevin Eltife (R-Tyler). Signed by the Governor on May 21, 2015. The bill increases weekly TIBs benefits for injured workers. The bill raises the low-wage-earner threshold for increased TIBs benefits from $8.50 per hour to $10.00 per hour. Employees who meet that criteria are entitled to 75% of their AWW for up to the first 26 weeks of their disability.

The increase in benefits takes effect September 1, 2015. It applies to a claim for TIBs based on an injury date that occurs on or after September 1, 2015. A claim based on a compensable injury that occurs before that date is governed by the law in effect on the date the compensable injury occurred, and the former law is continued in effect for that purpose.

Rate Filing Confidentiality: SB 978 by Sen. Brandon Creighton (R-Beaumont). The bill amends current law relating to public information regarding workers’ compensation insurance rate filings. More specifically, the bill amends the workers’ compensation filings statute, Section 2053.004, Insurance Code, to provide proprietary confidentiality protections through Chapter 552, Government Code. The purpose of the bill, according to Sen. Creighton’s statement of intent:

Existing laws do not adequately protect workers’ compensation filings from competitors that wish to use proprietary information received through disclosure. Filings for property and casualty lines, however, are subject to Chapter 552, Government Code, which protects intellectual property in such filings from public disclosure to those who wish to use the filer’s innovations without having to invest in creating such innovations themselves. Similar protections are needed as the Texas Basic Manual of Rules, Classification and Experience Rating for Workers’ Compensation now includes a company’s modeled rating factor and supportive documents.

One insurer was recently required to file a model used in the pricing of its workers’ compensation products. Another insurer requested the filed model, and under Section 2053.004 (Public Inspection of Information), Insurance Code, it had to be disclosed. The model reflected approximately 6,000 hours of work by that company’s actuaries, statisticians, and analysts. The disclosure of this information allowed competitors to obtain proprietary innovation without a similar expenditure of time, effort, and money.

Death Benefits after Remarriage: HB 1094 by Rep. Charlie Geren (R-River Oaks). The bill provides that surviving spouses of first responders will receive benefits for life, regardless of remarriage. One effect of the bill is to preclude redistribution of benefits to eligible children after an eligible spouse has remarried.

Emergency Responder Travel: CSHB 2771 by Rep. Armando Martinez (D-Weslaco). The bill provides that the travel of a firefighter or emergency medical personnel en route to an emergency call is considered to be in the course and scope of the firefighter’s or emergency medical personnel’s employment. Language that would have placed the return trip home in the course and scope of employment was stripped from the bill in the House. The bill is limited in scope inasmuch as, by its terms, it applies only to firefighters and emergency medical personnel.