2005 Texas Labor Code CHAPTER 412. STATE OFFICE OF RISK MANAGEMENT

LABOR CODE

CHAPTER 412. STATE OFFICE OF RISK MANAGEMENT

SUBCHAPTER A. GENERAL PROVISIONS


	§ 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, § 1, eff. Sept. 1, 
1997.      

SUBCHAPTER B. OFFICE


	§ 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.

Added by Acts 1997, 75th Leg., ch. 1098, § 1, eff. Sept. 1, 1997.  
Amended by Acts 2001, 77th Leg., ch. 1017, § 1.01, eff. Sept. 1, 
2002;  Acts 2003, 78th Leg., ch. 527, § 1, eff. Sept. 1, 2003.


	§ 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, § 1.02, eff. Sept. 1, 
2002.  Redesignated from V.T.C.A., Labor Code § 412.011(c).




	§ 412.012. FUNDING.                                                         

Text of section as amended by Acts 2001, 77th Leg., ch. 559, § 1 
and Acts 2001, 77th Leg., ch. 1456, § 14.01
	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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999;  Acts 2001, 77th Leg., ch. 559, § 1, eff. Sept. 1, 2001;  
Acts 2001, 77th Leg., ch. 1456, § 14.01, eff. June 17, 2001.

For text of section as amended by Acts 2001, 77th Leg., ch. 1017, 
§ 1.02, eff. Sept. 1, 2002, see § 412.012, post.




	§ 412.012. FUNDING.                                                         

Text of section as amended by Acts 2001, 77th Leg., ch. 1017, § 
1.02
	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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999;  Acts 2001, 77th Leg., ch. 1017, § 1.02, eff. Sept. 1, 
2002.

For text of section as amended by Acts 2001, 77th Leg., ch. 559, 
§ 1, and Acts 2001, 77th Leg., ch. 1456, § 14.01, see § 
412.012, ante.




	§ 412.0121. INTERAGENCY CONTRACTS.                                          

Text of section as renumbered from V.T.C.A., Labor Code § 
412.012(b) and amended by Acts 2001, 77th Leg., ch. 559, § 1 and 
Acts 2001, 77th Leg., ch. 1456, § 14.01
	(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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999.  Renumbered from V.T.C.A., Labor Code § 412.012(b) by Acts 
2001, 77th Leg., ch. 559, § 1, eff. Sept. 1, 2001;  Acts 2001, 
77th Leg., ch. 1456, § 14.01, eff. June 17, 2001.

For text of section as renumbered from V.T.C.A., Labor Code § 
412.012(b) and amended by Acts 2001, 77th Leg., ch. 1017, § 1.02, 
eff. Sept. 1, 2002, see § 412.0121, post.




	§ 412.0121. INTERAGENCY CONTRACTS.                                          

Text of section as renumbered from V.T.C.A., Labor Code § 
412.012(b) and amended by Acts 2001, 77th Leg., ch. 1017, § 1.02
	(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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999.  Renumbered from V.T.C.A., Labor Code § 412.012(b) and 
amended by Acts 2001, 77th Leg., ch. 1017, § 1.02, eff. Sept. 1, 
2002.

For text of section as renumbered from V.T.C.A., Labor Code § 
412.012(b) and amended by Acts 2001, 77th Leg., ch. 559, § 1, 
eff. Sept. 1, 2001 and Acts 2001, 77th Leg., ch. 1456, § 14.01, 
eff. June 17, 2001, see § 412.0121, ante.




	§ 412.0122. STATE SELF-INSURING FOR WORKERS' 
COMPENSATION.                

Text of section as renumbered from V.T.C.A., Labor Code § 
412.012(c) and amended by Acts 2001, 77th Leg., ch. 559, § 1, and 
Acts 2001, 77th Leg., ch. 1456, § 14.01
	The state is self-insuring with respect to an employee's 
compensable injury. 

Added by Acts 1997, 75th Leg., ch. 1098, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999.  Renumbered from V.T.C.A., Labor Code § 412.012(c) and 
amended by Acts 2001, 77th Leg., ch. 559, § 1, eff. Sept. 1, 
2001;  Acts 2001, 77th Leg., ch. 1456, § 14.01, eff. June 17, 
2001.

For text of section as renumbered from V.T.C.A., Labor Code § 
412.012(c) and amended by Acts 2001, 77th Leg., ch. 1017, § 1.02, 
eff. Sept. 1, 2002, see § 412.0122, post.




	§ 412.0122. STATE SELF-INSURING FOR WORKERS' 
COMPENSATION.                

Text of section as renumbered from V.T.C.A., Labor Code § 
412.012(c) and amended by Acts 2001, 77th Leg., ch. 1017, § 1.02
	(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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999.  Renumbered from V.T.C.A., Labor Code § 412.012(c) and 
amended by Acts 2001, 77th Leg., ch. 1017, § 1.02, eff. Sept. 1, 
2002.

For text of section as renumbered from V.T.C.A., Labor Code § 
412.012(c) and amended by Acts 2001, 77th Leg., ch. 559, § 1, and 
Acts 2001, 77th Leg., ch. 1456, § 14.01, see § 412.0122, ante.


	§ 412.0123. ALLOCATION OF WORKERS' COMPENSATION AND RISK 
MANAGEMENT COSTS;  RISK REWARD PROGRAM.  

Text of section as added by Acts 2001, 77th Leg., ch. 559, § 1, 
and Acts 2001, 77th Leg., ch. 1456, § 14.01

Text of subsec. (a) as added by Acts 2001, 77th Leg., ch. 559, § 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, § 
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, § 1, eff. Sept. 1, 2001;  Acts 
2001, 77th Leg., ch. 1456, § 14.01, eff. June 17, 2001.

For text of section as renumbered from V.T.C.A., Labor Code § 
412.012(d) by Acts 2001, 77th Leg., ch. 1017, § 1.02, eff. Sept. 
1, 2002, see § 412.0123, post.


	§ 412.0123. DEPOSIT OF WORKERS' COMPENSATION SUBROGATION 
RECOVERIES.      

Text of section as renumbered from V.T.C.A., Labor Code § 
412.012(d) by Acts 2001, 77th Leg., ch. 1017, § 1.02
	(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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999.  Renumbered from V.T.C.A., Labor Code § 412.012(d) and 
amended by Acts 2001, 77th Leg., ch. 1017, § 1.02, eff. Sept. 1, 
2002.

For text of section, as added by Acts 2001, 77th Leg., ch. 559, § 
1, and Acts 2001, 77th Leg., ch. 1456, § 14.01, see § 
412.0123, ante.


	§ 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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 4, eff. Sept. 1, 
1999.  Renumbered from V.T.C.A., Labor Code § 412.012(d) and 
amended by Acts 2001, 77th Leg., ch. 1456, § 14.01, eff. June 17, 
2001;  Acts 2001, 77th Leg., ch. 559, § 1, eff. Sept. 1, 2001.

SUBCHAPTER C. BOARD


	§ 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.                                          
	(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 for a two-year term.
	(e)  The board is subject to Chapters 552 and 2001, 
Government Code.         
	(f)  The risk management board is 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, 2007.

Added by Acts 1997, 75th Leg., ch. 1098, § 1, eff. Sept. 1, 1997.  
Amended by Acts 2001, 77th Leg., ch. 1017, § 1.03, eff. Sept. 1, 
2002;  Acts 2001, 77th Leg., ch. 1481, § 3.02, eff. Sept. 1, 
2001;  Acts 2003, 78th Leg., ch. 1170, § 40.01, eff. Sept. 1, 
2003.


	§ 412.022. TRAINING PROGRAM FOR BOARD MEMBERS.  (a) To be 
eligible to take office as a member of the board, a person appointed 
to the board must complete at least one course of a training program 
that complies with this section.  If the course has not been 
completed at the time of the appointment, the training program is to 
be completed within six months from the date of appointment, 
failure of which constitutes grounds for removal from the board.
	(b)  A training program established under this section must 
provide information to the member regarding:
		(1)  the enabling legislation that created the board;                         
		(2)  the program operated by the board;                                       
		(3)  the role and functions of the board;                                     
		(4)  the rules of the board, with an emphasis on the 
rules that relate to disciplinary and investigatory authority;
		(5)  the current budget for the board;                                        
		(6)  the results of the most recent formal audit of the 
board;              
		(7)  the requirements of:                                                     
			(A)  the open meetings law, Chapter 551, 
Government Code;                  
			(B)  the public information law, Chapter 552, 
Government Code;  and        
			(C)  the administrative procedure law, Chapter 
2001, Government Code;      
		(8)  the requirements of the conflict of interest laws 
and other laws relating to public officials;  and
		(9)  any applicable ethics policies adopted by the 
board or the Texas Ethics Commission.

Added by Acts 1997, 75th Leg., ch. 1098, § 1, eff. Sept. 1, 1997.  
Amended by Acts 2001, 77th Leg., ch. 1017, § 1.04, eff. Sept. 1, 
2002.


	§ 412.023. EFFECT OF LOBBYING ACTIVITY.  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 that is regulated by or 
that has fees regulated by the board.

Added by Acts 1997, 75th Leg., ch. 1098, § 1, eff. Sept. 1, 1997.          


	§ 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 appointment the 
qualifications required for appointment to the board other than the 
requirements of Section 412.022;
		(2)  does not maintain during service on the board the 
qualifications required for appointment to the board;
		(3)  violates a prohibition established by Section 
412.023;                 
		(4)  cannot because of illness or incapacity discharge 
the member's duties for a substantial part of the term for which the 
member is appointed;  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.
	(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, § 1, eff. Sept. 1, 1997.          

SUBCHAPTER D. GENERAL POWERS AND DUTIES OF BOARD


	§ 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, § 1, eff. Sept. 1, 1997.          


	§ 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;  and          
		(3)  the handling of claims brought against the state.                        
	(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;  and
		(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.

Added by Acts 1997, 75th Leg., ch. 1098, § 1, eff. Sept. 1, 1997.          


	§ 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, § 1, eff. Sept. 1, 1997.          

SUBCHAPTER E. DIRECTOR


	§ 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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 2001, 77th Leg., ch. 1017, § 1.05, eff. Sept. 1, 
2002;  Acts 2005, 79th Leg., ch. 265, § 3.225, eff. Sept. 1, 
2005.


	§ 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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 1999, 76th Leg., ch. 953, § 1, eff. Sept. 1, 
1999;  Acts 2001, 77th Leg., ch. 1017, § 1.06, eff. Sept. 1, 
2002.

SUBCHAPTER F. STATE AGENCIES


	§ 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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 2001, 77th Leg., ch. 1017, § 1.07, eff. Sept. 1, 
2002.


	§ 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, § 1, eff. Sept. 1, 1997.          


	§ 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, § 1, eff. Sept. 1, 1997.  
Amended by Acts 2001, 77th Leg., ch. 1017, § 1.08, eff. Sept. 1, 
2002.