By: Perry S.B. No. 264
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 407A, Labor Code, is
amended by adding Section 407A.0521 to read as follows:
Sec. 407A.0521. NEW CERTIFICATES OF APPROVAL PROHIBITED.
(a) Notwithstanding Section 407A.052, the commissioner may not
issue a certificate of approval to a proposed group on or after
September 1, 2025.
(b) The commissioner may amend a certificate of approval
issued to a group before September 1, 2025.
SECTION 2. Subchapter J, Chapter 407A, Labor Code, is
amended by adding Section 407A.4561 to read as follows:
Sec. 407A.4561. REVISED PLAN OF OPERATION: WIND DOWN. (a)
In this section, "qualified group" means a group that:
(1) holds a current certificate of approval under this
chapter; and
(2) has not been determined by the commissioner to be
insolvent under Section 407A.355.
(b) The board shall submit to the commissioner for approval
a revised plan of operation to wind down and dissolve the guaranty
fund and trust fund. The plan must include:
(1) steps for:
(A) distributing any remaining money in the
guaranty fund and trust fund to qualified groups; and
(B) notifying interested parties; and
(2) an estimated timeline for the wind down.
(c) The commissioner shall approve the board's revised plan
of operation if the commissioner determines that the plan
sufficiently describes the actions the board will take to wind down
and dissolve the guaranty fund and trust fund.
(d) The board shall:
(1) implement the revised plan of operation approved
under Subsection (b); and
(2) provide written notice to the commissioner of the
completion of the wind down not later than the 30th day after the
date of completion.
(e) Not later than the 30th day after the date the
commissioner receives the board's notice under Subsection (d), the
commissioner shall determine whether the guaranty fund has met its
obligations under the approved revised plan of operation. If the
commissioner determines that the guaranty fund met the fund's
obligations, the commissioner shall issue an order requiring the
distribution of any remaining money in the guaranty fund and trust
fund to qualified groups.
(f) On the 30th day after the date the commissioner issues
the order under Subsection (e):
(1) the guaranty fund and the trust fund are
dissolved; and
(2) the board is abolished.
SECTION 3. Not later than December 1, 2025, the board of
directors of the Texas self-insurance group guaranty fund shall
submit the revised plan of operation to the commissioner of
insurance required by Section 407A.4561, Labor Code, as added by
this Act.
SECTION 4. This Act takes effect September 1, 2025.