Sunset Process Progresses

Monday, December 28, 2009 | 0

By Albert Betts Jr.

The mission and performance of the Division of Workers’ Compensation (DWC) and Office of Injured Employee Counsel (OIEC) are currently being reviewed by the Texas Sunset Advisory Committee as provided for by the Texas Sunset Act.  The House and Senate members of the Texas Sunset Advisory Commission have been named by the Rep. Joe Strauss, speaker of the Texas House of Representatives, and Lt. Gov. David Dewhurst.

Based on the recommendations of the Texas Sunset Advisory Commission, the Texas Legislature will decide if the DWC and OIEC will continue to operate into the future.

Strauss has recently announced the interim charges for the various Texas House of Representatives committees. Workers’ compensation issues were included in the interim study charges.

Sunset Review Progresses

The Texas Sunset Advisory Commission held an organizational meeting on Nov. 17 and introduced the agency’s interim director, Ken Levine, and agreed on a schedule for upcoming public hearings. The public hearing dates for the Texas Department of Insurance (TDI), Office of Public Insurance Counsel (OPIC), Division of Workers’ Compensation, and Office of Injured Employee Counsel were set for May 25-26, 2010.

The public hearings will provide various stakeholders with an opportunity to share their opinions about the workers’ compensation system with the members of the Texas Sunset Advisory Commission.  The Sunset staff will issue reports regarding the DWC and OIEC approximately one month prior to the hearings – late April 2010.  The reports will be based on the Sunset staff’s review of each agency’s self-evaluation report, interviews with agency staff, stakeholders, and
written comments from system stakeholders.  The Texas Sunset Advisory Commission will hold a hearing to discuss the Sunset staff’s recommendations and then make decisions regarding these agencies on July 6, 2010.

The Texas Legislature will consider sunset legislation regarding TDI, OPIC, DWC, and OIEC that is expected to be based upon the decisions of the members of the Texas Sunset Advisory Commission. House Bill 7, passed by the Texas Legislature in 2005, was a product of the Sunset Review process of the Texas Workers’ Compensation Commission.

House Speaker Straus recently announced interim charges for the various House committees.  Of interest to this group are the charges for House Insurance, House Business and Industry, and House Judiciary and Civil Jurisprudence Committees.

The Judiciary Committee met on December 10, 2009 and laid out its schedule of meetings for next year.  The first meeting will be January 27, 2010 and will be on the committee’s charge to “study and make recommendations regarding the use of arbitration in Texas and the effect such practices have on state jurisprudence.”

 The committee will also meet on the following dates (the dates are subject to change):
 
    •    Feb. 25
    •    March 25 
    •    April 29 
    •    May 27 
    •    June 24 
    •    July 29 
    •    Aug. 26 
    •    Sept. 30 
    •    Oct. 28 

The House Insurance and House Business and Industry Committees have not met nor has there been an announcement of a meeting schedule for these committees.

The following is a listing of the relevant committees and their charges related to the insurance industry:

House Committee on Business and Industry

Study and report on third-party liability issues involving workers' compensation, including the frequency and success rates of third-party litigation, the relationship, if any, between third-party litigation and jobsite safety, the adequacy of compensation and reimbursement to workers, and the economic costs of third party litigation and equitable and contractual subrogation in construction activities.  This is a Joint Interim Charge with House Committee on Judiciary and Civil Jurisprudence.

House Committee on Insurance

Study whether a new system or process should be employed to expedite appeals by insurers against TDI in homeowner's rate cases.

Monitor the agencies and programs under the committee's jurisdiction.

House Committee on Judiciary and Civil Jurisprudence

Study current barratry laws in Texas and make recommendations as to their adequacy in protecting citizens from unscrupulous behavior.

Study and make recommendations regarding the use of arbitration in Texas and the effect such practices have on state jurisprudence.

Review the burden of proof and damage calculation models for certain causes of action to determine appropriate applicability in Texas law.

Study and report on third-party liability issues involving workers' compensation, including the frequency and success rates of third-party litigation, the relationship, if any, between third-party litigation and jobsite safety, the adequacy of compensation and reimbursement to workers, and the economic costs of third party litigation and equitable and contractual subrogation in construction activities. This is a Joint Interim Charge with House Committee on Business and Industry.

House Committee on Pensions, Investments, and Financial Services

Review and study the overall history, goals, and performance of the state's economic development program, Certified Capital Company.  Identify and recommend changes as necessary.  This issue would be important for any insurer that has invested in a CAPCO and received premium tax credits. 

House Committee on Appropriations

Monitor the performance of state agencies and institutions, including operating budgets, plans to carry out legislative initiatives, caseload projections, performance measure attainment, implementation of all rider provisions, and any other matter affecting the fiscal condition of the agencies and the state.
The TDI data mining study and study of changes to homeowners’ coverage were part of the Appropriations bill, and thus this committee could review issues on these studies.

Albert Betts Jr. is partner with the law firm of Thompson, Coe, Cousins & Irons and the Insurance Council of Texas'
general counsel. He served as the first full-time workers’ compensation commissioner from Sept. 1, 2005 through Aug. 31, 2008.