Texas 2023 - 88th Regular

Texas House Bill HB2461 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Shine H.B. No. 2461
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the workers' compensation group self-insurance
7	7	guaranty fund.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 407A, Subchapter B, Labor Code is
10	10	amended by adding new Section 407A.0521 to read as follows:
11	11	Sec. 407A.0521. NEW CERTIFICATES OF APPROVAL PROHIBITED.
12	12	(a) Notwithstanding Section 407A.052, the commissioner shall not
13	13	issue a certificate of approval to a proposed group on or after
14	14	September 1, 2023.
15	15	(b) Nothing in this section affects the commissioner's
16	16	authority to amend a certificate of approval issued by the
17	17	commissioner to a group prior to September 1, 2023.
18	18	SECTION 2. Section 407A.456 Labor Code is amended to read as
19	19	follows:
20	20	Sec. 407A.456. PLAN OF OPERATION. (a) The board shall
21	21	adopt a plan of operation governing the board's activities and the
22	22	operation of the guaranty fund and the trust fund.
23	23	(b) The plan of operation adopted by the board is subject to
24	24	approval by the commissioner.
25	25	(c) The board shall submit a revised plan of operation to
26	26	the commissioner for approval to wind down the operations of the
27	27	guaranty fund and the trust fund, including a plan for distribution
28	28	of any remaining funds to qualified groups. For the purpose of this
29	29	chapter, a "qualified group" is a group that has a current
30	30	certificate of approval under this chapter and has not been
31	31	determined by the commissioner to be insolvent under Sections
32	32	407A.355 and 407A.458, Labor Code.
33	33	(d) The commissioner shall approve the revised plan of
34	34	operation if the plan sufficiently describes the steps the board
35	35	will take to wind down and dissolve the operations of the guaranty
36	36	fund and trust fund, including distributing any remaining trust
37	37	funds to qualified groups, notifying interested parties, and
38	38	estimating a timeline for wind down.
39	39	(e) The board shall deliver written notice to the
40	40	commissioner not later than 30th day after the date the wind down is
41	41	complete.
42	42	(f) Not later than the 30th day after the date the
43	43	commissioner receives the notice described in Subsection (e), the
44	44	commissioner shall issue an order determining whether the guaranty
45	45	fund has met its obligations under the revised plan of operations
46	46	described in Subsection (d). If the commissioner determines that
47	47	the guaranty fund has met its obligations, the order shall include
48	48	language requiring the distribution of any remaining funds to
49	49	qualified groups.
50	50	(g) On the 30th day after the issuance of the order
51	51	described in subsection (f), the guaranty fund and the trust fund
52	52	are dissolved.
53	53	SECTION 3. (a) Not later than December 1, 2023, the board
54	54	shall submit a revised plan of operation to the commissioner of
55	55	insurance as required by Section 407A.456, Labor Code.
56	56	(b) The board of directors established under Section
57	57	407A.453, Labor Code, is abolished on the date the guaranty fund and
58	58	trust fund are dissolved in accordance with Section 407A.456.
59	59	SECTION 4. This Act takes effect September 1, 2023.