Texas 2025 - 89th Regular

Texas Senate Bill SB264 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Perry S.B. No. 264
2		-
3		-
	2	+	(In the Senate - Filed November 12, 2024; February 3, 2025,
	3	+	read first time and referred to Committee on Business & Commerce;
	4	+	March 26, 2025, reported favorably by the following vote: Yeas 11,
	5	+	Nays 0; March 26, 2025, sent to printer.)
	6	+	Click here to see the committee vote
4	7
5	8
6	9		A BILL TO BE ENTITLED
7	10		AN ACT
8	11		relating to discontinuing group self-insurance coverage and
9	12		dissolving the Texas self-insurance group guaranty fund and trust
10	13		fund under the Texas Workers' Compensation Act.
11	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	15		SECTION 1. Subchapter B, Chapter 407A, Labor Code, is
13	16		amended by adding Section 407A.0521 to read as follows:
14	17		Sec. 407A.0521. NEW CERTIFICATES OF APPROVAL PROHIBITED.
15	18		(a) Notwithstanding Section 407A.052, the commissioner may not
16	19		issue a certificate of approval to a proposed group on or after
17	20		September 1, 2025.
18	21		(b) The commissioner may amend a certificate of approval
19	22		issued to a group before September 1, 2025.
20	23		SECTION 2. Subchapter J, Chapter 407A, Labor Code, is
21	24		amended by adding Section 407A.4561 to read as follows:
22	25		Sec. 407A.4561. REVISED PLAN OF OPERATION: WIND DOWN. (a)
23	26		In this section, "qualified group" means a group that:
24	27		(1) holds a current certificate of approval under this
25	28		chapter; and
26	29		(2) has not been determined by the commissioner to be
27	30		insolvent under Section 407A.355.
28	31		(b) The board shall submit to the commissioner for approval
29	32		a revised plan of operation to wind down and dissolve the guaranty
30	33		fund and trust fund. The plan must include:
31	34		(1) steps for:
32	35		(A) distributing any remaining money in the
33	36		guaranty fund and trust fund to qualified groups; and
34	37		(B) notifying interested parties; and
35	38		(2) an estimated timeline for the wind down.
36	39		(c) The commissioner shall approve the board's revised plan
37	40		of operation if the commissioner determines that the plan
38	41		sufficiently describes the actions the board will take to wind down
39	42		and dissolve the guaranty fund and trust fund.
40	43		(d) The board shall:
41	44		(1) implement the revised plan of operation approved
42	45		under Subsection (b); and
43	46		(2) provide written notice to the commissioner of the
44	47		completion of the wind down not later than the 30th day after the
45	48		date of completion.
46	49		(e) Not later than the 30th day after the date the
47	50		commissioner receives the board's notice under Subsection (d), the
48	51		commissioner shall determine whether the guaranty fund has met its
49	52		obligations under the approved revised plan of operation. If the
50	53		commissioner determines that the guaranty fund met the fund's
51	54		obligations, the commissioner shall issue an order requiring the
52	55		distribution of any remaining money in the guaranty fund and trust
53	56		fund to qualified groups.
54	57		(f) On the 30th day after the date the commissioner issues
55	58		the order under Subsection (e):
56	59		(1) the guaranty fund and the trust fund are
57	60		dissolved; and
58	61		(2) the board is abolished.
59	62		SECTION 3. Not later than December 1, 2025, the board of
60	63		directors of the Texas self-insurance group guaranty fund shall
61	64		submit the revised plan of operation to the commissioner of
62	65		insurance required by Section 407A.4561, Labor Code, as added by
63	66		this Act.
64	67		SECTION 4. This Act takes effect September 1, 2025.
	68	+	* * * * *