TX
Texas Senate Bill SB264

Texas 2025 - 89th Regular

Texas Senate Bill SB264

Filed
11/12/24  
Out of Senate Committee
3/26/25  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to discontinuing group self-insurance coverage and dissolving the Texas self-insurance group guaranty fund and trust fund under the Texas Workers' Compensation Act.

Impact

If enacted, SB264 will significantly affect the landscape of workers' compensation in Texas. The dissolution of the self-insurance group guaranty fund is expected to alter how businesses approach insurance and risk management under the state's workers' compensation framework. Additionally, the measure eliminates the option for new self-insurance groups, which may lead to fewer resources being available for employers to provide coverage for their employees. This shift could result in increased reliance on conventional insurance options and might compel businesses to explore different methods of risk management.

Summary

Senate Bill 264 aims to discontinue group self-insurance coverage in Texas and dissolve the existing Texas self-insurance group guaranty fund and trust fund under the Texas Workers' Compensation Act. The bill proposes that no new certificates of approval will be issued for proposed groups after September 1, 2025, and outlines a process for winding down the existing fund. This plan involves steps for distributing any remaining funds to qualified groups and includes timelines for the completion of these actions.

Sentiment

The discussions and sentiments surrounding SB264 appear to be mixed. Proponents argue that the dissolution of self-insurance options could streamline workers' compensation practices and enhance oversight under state regulations. Skeptics, on the other hand, express concern that dismantling the self-insurance fund may lead to reduced coverage options for businesses and potential financial implications for employers who relied on this model. This division reflects a broader debate over balancing regulatory control with the needs of businesses operating within the state.

Contention

Key points of contention among stakeholders include the anticipated consequences of limiting self-insurance options. Critics of SB264 worry that this may disproportionately impact small to medium-sized businesses that depend on the flexibility of self-insurance to manage costs. The proposed timeline for winding down the guaranty fund and the process for distributing remaining funds draw additional scrutiny from parties who fear inadequate planning could leave gaps in coverage and support for businesses during the transition. Overall, the debate highlights significant concerns regarding the implications for employee protection and business operations in Texas.

Texas Constitutional Statutes Affected

Labor Code

  • Chapter 407. Self-insurance Regulation
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Latest SB264 Activity

Companion Bills

No companion bills found.

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