S.B. No. 1336
  relating to the workers' compensation classification system and
  rate filings.
         SECTION 1.  Section 2051.157, Insurance Code, is amended to
  read as follows:
         Sec. 2051.157.  PENALTY FOR CERTAIN VIOLATIONS. An officer
  or other representative of an insurance company is subject to a fine
  of not less than $100 or more than $500 if the officer or other
  representative violates any provision of the following relating to
  the company's business:
               (1)  Subchapter A or B;
               (2)  Section 2051.156 or 2051.201;
               (3)  Chapter 426 or 2052;
               (4)  Subchapter A, C, or D, Chapter 2053; or
               (5)  Section 2053.051, 2053.052, [2053.053,] or
         SECTION 2.  Section 2053.001(5), Insurance Code, is amended
  to read as follows:
               (5)  "Supplementary rating information" means any
  manual, rating plan or schedule, plan of rules, rating rule,
  classification system, territory code or description, or other
  similar information required to determine the applicable premium
  for an insured.  The term includes increased limits factors,
  [classification relativities,] deductible relativities, and other
  similar factors and relativities.
         SECTION 3.  Section 2053.051, Insurance Code, is amended to
  read as follows:
         Sec. 2053.051.  HAZARD CLASSIFICATION SYSTEM.  (a)  For
  workers' compensation insurance, the department shall:
               (1)  determine hazards by class; and
               (2)  [establish classification relativities applicable
  to an employer's payroll in each of the classes at levels adequate
  to the risks to which the relativities apply.
         [(b)     The classification relativities established under
  Subsection (a)(2):
               [(1)  must be designed to encourage safety;
               [(2)  may be territorially based; and
               [(3)     may reflect a difference in losses between
  employers of high wage earners and employers of low wage earners
  within the same class.
         [(c)  The department shall] revise the classification system
  as necessary to carry out the purposes of this chapter [at least
  once every five years].
         (b)  A stock company, mutual insurance company, reciprocal
  or interinsurance exchange, or Lloyd's plan authorized to engage in
  the business of workers' compensation insurance in this state may
  not use hazard classifications other than the classifications
  established by the department.
         SECTION 4.  Section 2053.056(c), Insurance Code, is amended
  to read as follows:
         (c)  The commissioner shall review the information submitted
  under Subsection (b) to determine the positive or negative impact
  of the enactment of workers' compensation reform legislation
  enacted by the 79th Legislature, Regular Session, 2005, on workers'
  compensation rates and premiums.  The commissioner may consider
  other factors[, including relativities under Section 2053.051,] in
  determining whether a change in rates has impacted the premium
  charged to policyholders.
         SECTION 5.  Sections 407A.351(a) and (b), Labor Code, are
  amended to read as follows:
         (a)  Except as provided by Subsection (b), each group shall
  use the uniform classification system and[,] experience rating
  plan[, and rate relativities] of the department.
         (b)  A group may [:
               [(1)     use the relativities promulgated by the
  department modified to produce rates in accordance with the group's
  historical experience; or
               [(2)]  file [its own] rates with the department,
  including any reasonable and supporting information required by the
         SECTION 6.  Effective July 1, 2020, Sections 2053.053 and
  2054.354(b), Insurance Code, are repealed.
         SECTION 7.  Sections 2051.157, 2053.001(5), 2053.051, and
  2053.056(c), Insurance Code, as amended by this Act, and Sections
  407A.351(a) and (b), Labor Code, as amended by this Act, apply only
  to an insurance policy that is delivered, issued for delivery, or
  renewed on or after July 1, 2020.  A policy delivered, issued for
  delivery, or renewed before July 1, 2020, is governed by the law as
  it existed immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         SECTION 8.  This Act takes effect September 1, 2019.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1336 passed the Senate on
  April 26, 2019, by the following vote:  Yeas 30, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1336 passed the House on
  May 22, 2019, by the following vote:  Yeas 131, Nays 13, two
  present not voting.
  Chief Clerk of the House