The House Committee on Business & Industry interim report to the 88th Legislature covers the TWC, cybersecurity, data privacy, impact of COVID-19 on unemployment and workforce, and organized retail crime. For more information see the full report here.
Spotlight on Recommendations
Charge 1. Monitor the agencies and programs under the Committee’s jurisdiction and oversee the implementation of relevant legislation passed by the 87th Legislature, including HB 3746, SB 22, SB 1588, and SB 581.
- Require companies to use the online OAG web form when reporting breaches. The web form is already utilized by over 70% of reporting entities. Exclusively using the form would streamline the reporting process, saving time and lessening the burden on OAG staff.
- Extend the sunset provision of SB 22 until December 31, 2024, when ARPA funding will expire. The Legislature could consider extending the presumption further than that, but if so, consideration should also be given to allocating funds to cover its costs.
- Amend 607.058 of the Government Code to establish limits on reasons an insurance carrier can rebut a claim. The extent of this can be discussed but going to church or the grocery store should not be grounds for a claim to be denied, especially when an employee is still going to work in person.
- When a presumption bill is passed, outreach and education should be prioritized to ensure potentially affected Texans are aware of their rights.
- Establish clarity in the way that SB 22 and HB 2073 affect one another.
- Revisit Section 4 of SB 1588 to ensure that a property owner’s security measures do not create unsafe situations for community residents. Security fences should not be allowed to block sidewalks or drainage ditches, even if these structures are on a homeowner’s property. Further, driveway gates should be set back from the street far enough to not impede passing vehicles.
- Further evaluate property owners’ association involvement in rental agreements to determine if legislation is necessary to prohibit interference.
- The Committee realizes that Section 11 of SB 1588, which restricts membership on an architectural review board and property owners’ association boards, has raised concerns for property owners’ associations and encourages all stakeholders continue discussing the issue in order to determine if a compromise can be reached.
Charge 2. Study workers’ compensation claims involving public safety employees described by SB 22. This study should include an analysis of medical costs, return-to-work outcomes, utilization of care, satisfaction with care, and health-related functional outcomes.
- Reduce the cost burden on injured employees involved in workers’ compensation disputes by requiring insurance companies to provide reimbursement for one medical compensation narrative report if they dispute the extent of an injury. This could be accomplished by passing a bill similar to Representative Collier’s HB 2326 (85R).
- Incentivize doctors, especially those in hard-to-access specialty areas, to accept workers’ compensation claims and to practice in rural, underserved areas.
- Limit the extent that insurance carriers can appeal a case and/or impose stricter requirements for an insurance company to qualify for appeal.
Charge 3. Study the impacts of the COVID-19 pandemic on unemployment trends, hurdles to workforce reentry, and industry-specific disruptions.
- Identify ways for the state to make child care more affordable for Texas parents. Child care enables parents to participate in the workforce. Investing in a strong child care industry will have a positive impact on the workforce of every industry in our state.
- Confront the teacher shortage by investing in public education and the educators who make quality education possible. Prioritize high quality teacher preparation programs and support for teachers in the classroom. Increase compensation for all teachers and recognize longevity in the profession using meaningful pay raises.
Charge 4. Study the impact of organized retail crime on Texas businesses. Make recommendations for addressing the redistribution of stolen merchandise into the supply chain, including through online marketplaces, to protect Texas businesses and consumers. Make recommendations relating to transparency for online marketplaces and information that should be provided by sellers.
- Absent federal action, the state should consider passing a version of the INFORM Act, similar to Representative Raney’s HB 3852 (87R). In order to address the concerns of small and residential businesses, it would be important to ensure there was still a carveout for small and residential businesses. In addition, care could be taken to write similar legislation to other states to reduce the difficulties from a patchwork of state legislation.
- A statewide retail theft task force should be implemented to foster communication between online marketplaces, law enforcement, and the retail industry. Legislation in California, Florida, and Utah could be used as a model. A centralized hub for information regarding online retail crime would be invaluable to the police departments who are working to catch these criminal organizations as they travel across jurisdictions.
Charge 5. Review operational changes and strategies employed by the Texas Workforce Commission to improve outcomes related to Unemployment Benefit Services, including application and payment processes, customer services, and fraud deterrence.
- The Legislature should ensure TWC has funding to continue to prioritize technological upgrades in order to keep up with current demand and prepare for potential future surges in claims.
- The Legislature should continue to support TWC in its fraud deterrence and investigation efforts.
- TWC should continue to strive to balance their fraud deterrence efforts with their efforts to expediently pay benefits to unemployed Texans.
Charge 6. Evaluate the overall state of data privacy and online consumer protections in Texas and study the related laws and legislative efforts of other states. Make recommendations to ensure data protections and online privacy.
- Texas should consider passing legislation that gives consumers more control over their data. Important provisions for a strong law would include consumers having the right to correct and delete their information. Attention should be paid to the definitions. While short, uncomplex definitions can seem ideal and easier to follow, lawmakers should be wary of definitions that leave out essential pieces of data. Care should also be taken to match other state legislation whenever possible to prevent compliance difficulties from a patchwork of state legislation.
- A data broker registry has the potential to be complementary legislation, but care should be taken to protect legitimate businesses from being prohibited from operating. It is also important to note that data broker registry legislation would not be sufficient without additional data privacy legislation, as the data broker definition leaves out many social media companies, who hold the most consumer data.