Economic development funds
The Texas Enterprise Fund and the Emerging Technology Fund, accounts from which the governor may award grants for economic development and for research and development programs, could face proposals to cut or eliminate their funding. Other proposals may seek to make more transparent and accountable the process for selecting grant recipients and the terms for the grants.
Insurance
The Legislature is likely to address issues related to windstorm insurance as well as the functions of the Texas Department of Insurance (TDI) and the Office of Public Insurance Counsel (OPIC), both of which are undergoing a limited Sunset review following a more comprehensive review that occurred in 2008. TDI’s Division of Workers’ Compensation and the Office of Injured Employee Counsel (OIEC), both established in 2005 when the Legislature made major revisions to the workers’ compensation system, are undergoing a full Sunset review this session. They are among the agencies that underwent review during the 81st Legislature but ultimately had their Sunset dates extended to 2011 when their Sunset bills were not heard during the regular session.
The Legislature could consider requiring insurers to offer standard, state-promulgated homeowners insurance policy forms in addition to the existing policy forms they offer. Proposals also may emerge to ban credit scoring in determining rates for homeowners and auto insurance and to make the insurance commissioner an elected position.
Spotlight on bills filed:
SB 111 – Davis, Wendy – Relating to when property and casualty insurance rates are used.
HB 194 – Walle, Armando – Relating to prohibiting the use of credit scoring in certain lines of personal insurance.
Texas Windstorm Insurance Association
The Texas Windstorm Insurance Association (TWIA) provides insurance of last resort for windstorm and hail damage along the Texas Gulf Coast. In 2009, the 81st Legislature enacted HB 4409 by Larry Taylor, which revised TWIA oversight, operation, and funding mechanisms. If insured losses and operating expenses exceed TWIA revenues and any available reserve funds, HB 4409 authorizes issuance of up to $2.5 billion in bonds, payable by a variety of sources, to pay for TWIA losses.
Lawmakers may revisit whether the funding mechanisms established for TWIA in HB 4409 are adequate and appropriate if Texas faces an extreme hurricane loss. Proposals may emerge to establish ways to pay for TWIA losses in excess of $2.5 billion since estimates of TWIA losses for an extreme storm that strikes Galveston are up to $10 billion. Also, HB 4409 authorized TWIA to obtain reinsurance for losses, but TWIA did not opt to obtain reinsurance this storm season. Some propose TWIA should be compelled to obtain reinsurance.
Workers’ compensation
The Division of Workers’ Compensation in the Department of Insurance was reviewed by the Sunset Advisory Commission during 2009-10. Sunset Commission recommendations include removing eight types of disputes from the division’s purview, streamlining and accelerating the dispute resolution process, streamlining the medical quality review process, and clarifying the scope of the division’s enforcement authority. The Sunset Commission recommends the Legislature enact stringent qualification requirements for medical review panelists and designated doctors.
The Legislature may consider proposals that would prevent premises owners, such as those who own refineries or chemical plants, from buying workers’ compensation insurance for contract employees in order to avoid liability for injuries to those workers. Some proposals may prohibit a premises owner from being considered a general contractor, while others may include specific criteria by which to determine which premises owners meet the standards of a general contractor. Other proposals may specify that all premises owners may purchase workers’ compensation insurance, regardless of circumstance.
Lawmakers may consider whether to include pain and suffering compensation for injured workers. They also may consider whether to provide reimbursement for the loss of an injured worker’s career, such as a surgeon who loses the use of a hand. The current workers’ compensation system considers the injured employee’s ability to return to any job, but not to a chosen trade or profession.
Office of Injured Employee Counsel
The Office of Injured Employee Counsel (OIEC) was reviewed by the Sunset Advisory Commission in 2009-10. The Legislature may consider the Sunset Commission’s recommendation to limit OIEC’s access to the confidential medical information of injured employees.