SB264 - 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.

      S.B. No. 264         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.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 264 passed the Senate on   April 16, 2025, by the following vote:  Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 264 passed the House on   May 22, 2025, by the following vote:  Yeas 141, Nays 0, two   present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor