Safety Reimbursement Plan Passes House, Senate

CSHB 2466, by Rep. Nicole Collier (D – Fort Worth), passed the Senate in a record vote on May 20, 2015 and is headed to the Governor’s desk for his signature. The bill is designed to help small employers and certain high-risk industries provide a safer workplace for their employees. Supporters say that the bill will give businesses more incentive to make their workplaces safer because they will be able to receive reimbursement for certain costs to implement small but important changes.

Although the bill will take effect September 1, 2015, it will not apply to costs incurred by an eligible employer before January 1, 2016.

CSHB 2466 creates a workers’ compensation safety reimbursement program. The program applies to “eligible employers.” An eligible employer is defined by the bill as an employer, other than the state of Texas or a political subdivision of Texas, that had workers’ compensation insurance coverage and that employed between two and 50 employees during the prior calendar year, or was a type of employer designated as eligible by the commissioner of workers’ compensation.

The program will reimburse eligible employers for expenses incurred to facilitate safe and healthy workplaces for their employees. An eligible employer can receive no more than $5,000 per year in reimbursement for allowable expenses, including physical modifications to the worksite, safety equipment, and safety training for employees.

CSHB 2466 requires the commissioner to fund the program with administrative penalties collected by the DWC. The commissioner is required to deposit annually the first $100,000 of those penalties into the general revenue fund to the credit of the Texas Department of Insurance operating account. Money for the program can be spent by the division, on appropriation by the Legislature, only for the purposes of implementing the program, and only to the extent that funds are available.

The bill also requires the commissioner to establish by rule an optional preauthorization plan for eligible employers to submit proposals to the division that described the intended workplace modifications and other changes. If the Division approves a proposal submitted for preauthorization, it will guarantee reimbursement of the expenses incurred by the employer in implementing the proposed modifications or changes. The Division will not be required to reimburse the employer for modifications or changes that materially differed from the employer’s proposal.

As soon as practicable after the effective date of the bill, the commissioner will be required to adopt rules establishing the program, including requirements for eligible employer applications and appropriate use of allocated funds. Insurance companies will be required to notify employers about the program as provided by the commissioner’s rules.