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RESULTS The results of Texas’ 77th Legislative Session are a victory for employers, the business climate and job growth. This session will be known more for what was killed then for what was passed. We believe that more anti-business bills were introduced this session than any other session in recent memory including the following: ¨ a state income tax ¨ mandatory workers’ comp. ¨ reinstatement of social promotion At the beginning of session, TABCC identified and distributed the ten worst bills for job growth in Texas. Through our efforts every bill on this list was killed. The biggest wins of the session were as follows: Health Care ¨ Veto of Clean Claims ¨ Fraud Prevention ¨ 20 of 22 mandates killed that would raise the price of health insurance for business Education Initiatives ¨ Math Initiative ¨ End to Social Promotion ¨ Computer Science-Engineering Program Environmental Quality ¨ Air Emission Reduction Incentive Program ¨ TNRCC Sunset Bill For the first time in the history of TABCC, we implemented a web-based grassroots network. Thanks to the many members who used this system, thousands of messages were sent to our state leaders on key issues such as health care and tort reform. On the following pages you will see that each issue is tallied in terms of “wins” and “losses.” “Losses” are good bills that did not pass or bad bills that did pass. “Wins” are good bills that passed or bad bills that were killed. Thanks again for your continued support. We will continue to build upon the success of this session by fortifying our relationships with legislators and agencies and supporting business-friendly candidates seeking elected office. Education WINS Math Initiative (HB1144) PASSED Creates a master math teaching program and rewards those teachers with additional pay. The bill also: ¨ creates an end-of-course assessment for Algebra I, ¨ allows school districts to provide intensive after-school or summer programs to assist students who are deficient in math skills and ¨ makes the recommended high school program the “default” curriculum, permitting students to enroll in the minimum high school program only with parental and school permission. Computer Science-Engineering Program (SB353) PASSED Establishes the technology workforce development account within general revenue to increase the number of engineering and computer science graduates. It also: ¨ establishes a resource-sharing program between universities, computer science and engineering departments and private companies, and ¨ creates a grant program for scholarships in engineering and computer science as well as lab and technology equipment funded by private funds that are matched by the state. Social Promotion Rollback (HB3631-HB2570) KILLED Would have allowed third-graders to be promoted to the next grade level even if they did not pass the end of the year assessment test. Eliminating TAAS as Graduation Criterion (HB2118) KILLED Would have required school officials to allow a senior to graduate without passing the Texas Assessment of Academic Skills (TAAS) test. LOSSES Alternative Certification of Teachers (HB1143) DIED Would have given more flexibility to local districts in hiring teachers who received bachelor degrees but did not go through traditional colleges of education, thus granting some relief to districts facing a teacher shortage. Employment Relations WINS Salary Discrimination (HB1082) KILLED Would have imposed unnecessary burdens on employers, requiring them to justify and report employees’s salary at the employee’s request. Additionally, it was not clear how the required information would reveal alleged discrimination. Time-off for School Visits (HB1761) KILLED Would have required businesses of 10 or more employees to give 10 hours each year to each employee to visit their children’s schools. The bill would have placed a mandate on employers in a misguided attempt to remedy a social problem – the lack of parental involvement in their children’s education. Threat to Employment At-Will Doctrine (HB215) KILLED Would have prohibited employers from dismissing an employee who has worked for a company for 10 years, unless there was cause. Minimum Wage (HB303) KILLED Would have mandated a living wage for private employees through a formula based on the fair market cost of housing. TABCC believes that competition in the market place should set wages, not mandates. Disgruntled Employee Protection (HB300) KILLED Would have prohibited an employer from firing an employee who reported even an alleged violation of the law. FMLA Expansion (HB76) KILLED Would have expanded the federal Family and Medical Leave Act to include all employers with more than 50 employees even if they were exempt from the federal act. State, county, city and school district workers would have been able to take up to 12 weeks of leave per year after one year of employment. Access to Personnel Records (XB989) KILLED Would have forced an employer to allow an employee to inspect his or her own personnel records twice a year. Environmental Quality WINS Air Emission Fee Cap (HB3534) KILLED Would have removed the 4,000-ton cap on air emission fees and lowered the operating permit fee to $20 per ton. Air Emission Reduction Incentive Program (SB5) PASSED Establishes the Texas emissions reduction plan to reduce air emissions in Texas. The bill requires TNRCC to administer incentive programs relating to 1) the reduction of off-road diesel emissions, 2) purchase or lease incentives for new on-road diesel equipment, and 3) the purchase or lease of new light-duty motor vehicles. These three programs replace the current daily delay for the start up of construction equipment during summer months in the State Implementation Plan for the Dallas/Ft. Worth and Houston/Galveston areas. The bill also requires the Public Utility Commission to develop an energy efficiency grant program to ensure the reduction of energy demand, peak loads and associated emissions of air contaminants. Clean-Fleet Program (HB3284) KILLED Would have established a clean-fleet program for purchasing and leasing Low Emission Vehicles, which would have been more stringent and more costly than the federal program used in most states. Economic Development vs. Environmental Permitting (HB2372) KILLED Would have prohibited the TNRCC from taking economic development into consideration when carrying out its environmental responsibilities. Environmental Enforcement (HB2338) KILLED Would have established a new standard for intentionally or knowingly violating the air regulations without having to prove the culpable mental state of the alleged violator. Environmental Equity (HB44) KILLED Would have required the TNRCC to use environmental equity considerations in determining the siting of solid waste facilities. Environmental Program Fees (SB1026-SB1028) KILLED Would have allowed the TNRCC to bypass statutory dedications and use air emission fees and motor vehicle inspection fees for purposes other than for which they were intended. This would have raised the likelihood of TNRCC increasing fees, to make up for shortfalls in the programs from which the fees were raided. Grandfathered Facilities (SB493-HB356) KILLED Would have required grandfathered facilities to apply for permits by Sept. 1, 2001 or else close down. A more phased-in, industry-supported program for the mandatory permitting of grandfathered facilities is contained in HB2912, the TNRCC Sunset bill. Independent Public Interest Counsel (HB37-SB392-HB616-SB662) KILLED Would have set up an independent public interest counsel (PIC) for environmental advocacy. Some of the bills would have required that the PIC be appointed by the governor with a 2-year term. Others would have given the PIC the right to intervene in judicial proceedings. And, lastly one would have combined the TNRCC PIC with the PICs of the Public Utility Commission and the Dept. of Insurance into an independent office. All were killed, but an interim study on the issue was created in HB2912, the TNRCC Sunset bill. Multiple Plant Permits and Contested Case Hearings (SB688) PASSED Establishes notice provisions for multiple plant permits and allows an application for an environmental permit to go straight to a contested case hearing without going through the public hearing process (SB1071). This bill will allow companies who know they will have to undergo a contested case hearing to skip some of the time-consuming and costly public notice and hearing procedures. Polluting Vehicle Retirement Program (HB2134) PASSED Establishes a statewide low-income and accelerated vehicle retirement program and allows companies to buy emission credits with the purchase money going toward the elimination of emissions from older, more polluting vehicles. TNRCC Sunset (HB2912) PASSED Reauthorizes the Texas Natural Resource Conservation Commission (Sunset bill). Major provisions of the Sunset bill include: ¨ requiring that the TNRCC establish a uniform definition of compliance history; each company’s compliance history will be computed using this new definition. Once the new compliance history is computed for each company, the compliance history will be used to rank the company into a permitting and enforcement tier. Depending on the tier (and the compliance history) a company will be able to have breaks on permitting and compliance, such as having announced inspections and the ability to use flexible permits if a company has a good compliance record ¨ allowing, but not requiring, the TNRCC to use Notices of Violations (NOVs) in compliance history, but prohibiting using NOVs that have been “administratively determined to be without merit” ¨ requiring the TNRCC to implement additional requirements on upsets and emission events ¨ mandating the permitting of grandfathered facilities, including pipelines ¨ establishing a laboratory accreditation program for environmental testing labs LOSSES Federal Guidelines vs. Rules (HB129) DIED Would have prohibited state agencies from complying with a federal guideline or requirement if it is inconsistent with state law, unless the guideline or requirement is a federal statute or substantive rule. This bill would have given the state some leverage with federal agencies like the EPA which attempt to force the state to adopt something which is not required by federal rule or statute. Low-Level Radioactive Waste Management (HB3420-SB1541) DIED Would have established criteria for the TNRCC to permanently manage low-level radioactive waste, most of which is stored today in parking lots and buildings scattered around the state. Health Care WINS Clean Claims Legislation (HB 1862) VETOED Would have cost Texas employers, their employees and their families $900 million dollars a year. Further, we believe the legislation could have left 70,000 Texans without health insurance. This legislation, which was intended to be a vehicle for physicians to be paid in a timely manner, became a bill that would have created a bonanza for trial lawyers at the expense of employers, patients and health care providers. It would have set a dangerous precedent by forcing lawsuits rather than arbitration. Governor Perry addressed the payment portion of the bill by instructing the Commissioner of Insurance to penalize any insurer ($1,000 per claim, per day) who does not pay a “clean claim” within 45 days. Health Care Fraud Prevention ACT (HB 1562) PASSED Allows an insurer to adopt an antifraud plan and to annually file the plan with an established insurance fraud unit. Additionally, the legislation will allow insurers to share information about fraudulent providers. This will help control fraud on the commercial employer-purchased health insurance market, saving employers, their employees and taxpayers billions of dollars. The legislation will also help prevent double-dipping by providers on health insurance and workers’ compensation. With as much as 10% of health care costs attributable to fraud, this is a major cost saver for employers. Mandated Health Insurance Benefits - KILLED Of the 22 mandates proposed by the Legislature, only two made it through the process. By defeating 20 of the 22 mandates proposed this session, TABCC was able to preserve health insurance for many businesses across the state of Texas. With 63 mandates already on the books, adding more requirements to the basic health plan offered by an employer ends up placing health insurance out of reach altogether for some employers. By defeating these mandates, TABCC was able to put a stop to increased regulations and higher costs. Medical Privacy Legislation (HB 1221) KILLED Could have opened employers who provide health insurance to a new cause of action, Deceptive Trade Practices Act (DTPA) penalties, as well as civil and criminal penalties, including state jail time. The bill also could have prohibited drug testing and prohibited employers from obtaining information required by the federal government under the ADA or the Family and Medical Leave Act. By creating a patchwork of regulation in Texas, it would have been especially costly to businesses operating across state lines. Expansion of Collective Bargaining for Health Professionals (HB 3012) KILLED As proposed, HB 3012would have expanded legislation from last session that exempted physicians from federal antitrust laws and allowed collective bargaining over fees and other disputes. The legislation also would have weakened consumer protections added to last session’s legislation by TABCC, and could have further increased cost for purchasers of health care. Chambers of Commerce Health Care Access (HB 1254) PASSED Allows entities that contract with the city for services to buy into their uniform group health insurance benefits. Specifically, the legislation will enable local chambers of commerce to purchase health insurance collectively and in a larger group, which should help lower their cost of insuring their employees. One chamber executive estimated a 25% cost savings to his chamber alone. Employer Access to Claim Information (HB 2146) PASSED Allows an employer to obtain claims experience of their group health plan in the preceding calendar year. This should help employers better understand their rising health insurance premiums. The legislation requires the insurer to provide only collective, non-identifying information upon the employer’s request. Quality Discharge Prohibition (HB 1913) VETOED Would have created an individual cause of action, as well as class action status, for physicians discharged from a health plan for quality reasons. TABCC opposed the bill because it would have taken dollars away from health care and brought more money into attorney and court costs. While TABCC was successful in removing the lawsuit language from final passage, we applaud Governor Perry for putting patient safety into consideration. In the end, the bill still would have prohibited an insurer from immediately suspending or terminating a provider in cases of fraud or malfeasance. DRAW Medical Privacy Legislation (SB 11) PASSED While TABCC was supportive of legislation to protect medical privacy, this legislation, as filed and considered by the Senate, had some major problems for business. Not only would it have been problematic for affordability and accessibility, the proposal contained a new cause of action as well as state jail time for employers and severe financial penalties. Also of concern were multiple levels of regulations of employers and workers’ compensation programs. Further, the legislation could have been problematic in tracking waste, fraud, abuse and tracking health care outcomes. The version that passed was a major victory for employers because we were able to remove many of the penalties from the bill. While some last minute changes may create some problems for employers utilizing disease management programs, the September 2003 compliance date should allow us time to fine tune the legislation next session. Compliance with federal privacy standards within two years will be extremely complicated and costly. TABCC will be monitoring the implementation process closely and will seek positive changes in the upcoming session. Health Care Cost Benefit Analysis (HB 3444) DIED Would have required a fiscal analysis of each proposed mandate during a legislative session so that a cost/benefit analysis could be factored into each proposed mandated benefit considered by the legislature. A past analysis by TABCC showed that five mandates currently on the books have raised the cost of health insurance by approximately 17 percent. Although the legislation was “tagged” in committee, the legislature did pass HB 1610 which allows the Texas Department of Insurance to collect the data necessary to report cost and utilization data for each mandated benefit designated by the Commissioner. This is a positive first step in the direction of an independent analysis of health insurance mandates and lays the groundwork for additional evaluations next session. Privacy WINS Financial Privacy (SB712) Passed Requires insurers and other entities regulated by the Texas Department of Insurance (TDI) to comply with the Gramm-Leach-Bliley Act (GLBA) and directs the Commissioner of Insurance to adopt rules consistent with the federal requirements. In 1999, Congress enacted the GLBA, in part to require state insurance authorities to adopt requirements on privacy and disclosure of nonpublic personal financial information in the insurance industry. Since states have to adopt privacy requirements for insurance companies, the National Association of Insurance Commissioners (NAIC) developed and adopted a model privacy regulation in an effort to aid states in adopting consistent privacy requirements for insurance companies. Texas Privacy Act (SB866) KILLED Would have eliminated access to social security number information that is widely used to verify the identity of an individual in credit card and other business transactions. See Health Care and Workers Compensation for information on HB1221 and SB 11 Taxes and Spending WINS No new taxes Texas Economic Development Act (HB1200) PASSED Creates an innovative property tax incentive designed to encourage business expansion and attract businesses to Texas. The measure allows school districts to offer a property tax appraisal cap to major manufacturing facilities looking to locate or expand in their area. The cap is offered only at the discretion of the local school district and is effective for a period of eight years. A sliding scale for minimum investment to qualify (ranging from $20 to $100 million and above) makes the incentive applicable to school districts of all sizes. In addition, school districts that decide to offer the appraisal cap are not penalized in their state funding formula. Texas Economic Development Long Term Plan (HB931) PASSED Requires the Texas Department of Economic Development, in consultation with the Comptroller of Public Accounts, to develop a comprehensive statewide economic plan to be updated every five years. Continuation of the Texas Department of Economic Development -TDED- (SB309) PASSED Adjusts the Sunset dates of several agencies. Since HB 3452, TDED’s Sunset Bill, failed to pass because of a lack of consensus, a last minute amendment was added to SB309 to give TDED two more years to organize its operations before the legislature decides its fate. TABCC believes TDED plays an important role in economic development and is encouraged that the agency will have two more years to demonstrate its need. TORT REFORM WINS VENUE SHOPPING (HB 735-SB 290) Killed Would have negatively affected tort reforms regarding venue for actions arising under an oil and gas lease. This legislation promoted “forum shopping” for special interest lawsuits, destroying most rational links between a lawsuit and its locale. Statute of Limitations (HB 736-SB 1400) Killed Would have rolled back the statute of limitations on lawsuits relating to interests in an oil and gas lease by extending the life of stale, outdated lawsuits after the general four-year statute of limitations for contracts has expired. A statute of limitations protects the integrity of trials. Exemplary Damage Cap (HB 2537) Killed Would have removed the limit on exemplary, or punitive, damages in a workers’ compensation death lawsuit. Current law limits exemplary damages to two times actual damages, plus noneconomic damages. HB 2537 removed this limitation and would have exposed employers that provide workers’ compensation benefits to potentially devastating damage awards. Products Liability (HB 3125) Killed Would have eliminated many of the tort reform protections passed in 1995 regarding products liability, exemplary damages and joint and several liability. HB 3125 would have allowed for unlimited discovery, eliminated affected periods for statutes of limitations, and stripped defendants of the limit on punitive damages. The bill also eliminated proportionate responsibility, making a defendant that is found to be one percent responsible liable for 100 percent of damages. Losses Chamber Liability (SB78-HB 1547) Died Would have given volunteers that serve on local chambers of commerce boards and committees certain immunity from lawsuits. Federal law provides this protection but allows states to opt out. This bill would have put into Texas law an affirmative statement that businessmen and women who volunteer at their local chambers cannot be sued for the activities of the chamber. Class Action (HB2072-SB842) Died Would have limited the number of meritless class action suits going through the court process by authorizing the Supreme Court of Texas to make rules relating to class actions and set forth provisions relating to review of civil judgments, interlocutory appeals and class actions involving the jurisdiction of a state agency. Employer Submission (HB3331-SB1397) Died Would have allowed a jury to consider the responsibility of an employer covered by workers’ compensation in determining the liability of other parties in a lawsuit. Although the employer could not be sued, establishing his or her responsibility would reduce the liability of other parties. Workers’ Compensation WINS Workers’ Compensation Reform (HB2600) Passed Provides for substantial reforms to the workers’ compensation system including: ¨ the creation of a voluntary medical network, new registration and training requirements for providers; ¨ new penalties for those who abuse the system; ¨ preauthorization for spinal surgery; ¨ collection of data relating to provider outcome and patient satisfaction; ¨ formalizes the medical advisor role; ¨ allowance of over-the-counter drugs; ¨ creates a drug formulary; ¨ adoption of a Medicare fee schedule methodology; ¨ establishment of new review process for medical necessity disputes, requires financial interest disclosure; and ¨ the requirement of an audit of the Texas Workers’ Compensation Commission
Mandatory Workers’ Compensation (HB463) Killed Would have required employers with more than 25 employees to carry workers’ compensation insurance. Spinal Manipulation (HB455) Killed Would have driven up costs by preventing physical therapists from performing spinal manipulations. Medical Privacy (HB1221) Killed Would have implemented drastic new privacy laws on workers’ compensation insurers to require consent to share information used in the payment and medical management of claims. Injured Worker Bill of Rights (SB1151) Killed Would have required duplicative disclosures to injured workers of their rights and would have hampered fraud investigations by requiring injured workers to be notified if they were under surveillance. Insurance Adjusters (SB1153) Killed Would have driven up costs by requiring insurance company adjusters to be licensed private investigators. LOSSES Single Commissioner (HB1205) Died Would have changed the composition of the Texas Workers’ Compensation Commission board by replacing the current three-employer/three-labor board with a single commissioner. A single commissioner would create a higher level of accountability at the agency. Subrogation of Deductible (HB 3102) Died Would have allowed for the recovery of benefits paid to an injured worker that are under the deductible part of a policy when a third party is found responsible for an injury. Extension of Exclusive Remedy (HB 3120) Died Would have clarified that the exclusive remedy of workers’ compensation applies to parent and subsidiary corporations as well as the employer, preventing an injured worker from receiving workers’ compensation benefits and then suing a parent or subsidiary corporation. Unemployment Insurance WINS Appropriations Act (SB1) PASSED Prevented $112 million from being diverted from the Unemployment Trust Fund to the General Fund. Taxable Wage Base Increase (HB2086) KILLED Would have increased the per employee taxable wage base used to compute an employer’s contribution to the unemployment insurance trust fund from $9000 per employee to $15,000 per employee costing Texas employers up to $500 million. Benefits for voluntary leave (HB240) KILLED Would have required employers to pay UI benefits to employees who voluntarily leave after the birth or adoption of a child. Benefits for temporary labor disputes (HB318) KILLED Would have allowed employees to collect unemployment insurance who are not working due to a labor dispute or other emergency leave action. Expansion of Unemployment insurance (HB2213) KILLED Would have expanded the number of people qualifying for unemployment by changing the way the state computes unemployment compensation taxes. LOSSES Proof of Job Search for Benefits (HB1931) DIED Would have required a claimant for unemployment benefits to actively search for a job and maintain records of job search during the benefit period. |
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