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No significant fiscal implication to the State is anticipated.
HB 1607 would amend
Section 408.103(a) of the Labor Code concerning the amount of temporary income
benefits (TIB) for workers’ compensation. Specifically, workers’ making less
than $10 an hour would be included in the formulation that determines the
amount of TIBs. Currently the law makes this formulaic determination on
workers’ making less than $8.50 an hour.
The workers’
compensation system is bad policy because the way it is constructed prevents
workers’ from obtaining fair compensation for their injuries. The reason for
this is that employers who enter into the workers’ compensation system have
immunity from employee lawsuits over injuries. Moreover, workers are
forced into this system, which means the only “benefits” and options they can
receive for their injuries are the ones arbitrarily set by the government.
Clearly this system does not operate under free market principles.
The Texas Department
of Insurance (TDI) uses different formulas to determine the amount of TIBs for
injured workers’. One of these formulas bases the determination of TIBs
on a workers’ hourly wage of $8.50. SB 901 would increase that threshold to $10
an hour.
Since this program
limits the benefits injured workers’ may receive and this legislation would not
affect the operations of private entities, we stand neutral on HB 1607.
It is important to
reiterate that current regulations do not allow workers’ compensation to
operate in the free market; were it allowed to operate in the free market,
legislation such as HB 1607 would not be needed because workers would be able
to find plans that suit their needs.