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A BILL TO BE ENTITLED
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AN ACT
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relating to discontinuing group self-insurance coverage and |
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dissolving the Texas self-insurance group guaranty fund and trust |
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fund under the Texas Workers' Compensation Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 407A, Labor Code, is |
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amended by adding Section 407A.0521 to read as follows: |
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Sec. 407A.0521. NEW CERTIFICATES OF APPROVAL PROHIBITED. |
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(a) Notwithstanding Section 407A.052, the commissioner may not |
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issue a certificate of approval to a proposed group on or after |
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September 1, 2023. |
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(b) The commissioner may amend a certificate of approval |
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issued to a group before September 1, 2023. |
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SECTION 2. Subchapter J, Chapter 407A, Labor Code, is |
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amended by adding Section 407A.4561 to read as follows: |
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Sec. 407A.4561. REVISED PLAN OF OPERATION: WIND DOWN. (a) |
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In this section, "qualified group" means a group that: |
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(1) holds a current certificate of approval under this |
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chapter; and |
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(2) has not been determined by the commissioner to be |
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insolvent under Section 407A.355. |
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(b) The board shall submit to the commissioner for approval |
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a revised plan of operation to wind down and dissolve the guaranty |
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fund and trust fund. The plan must include: |
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(1) steps for: |
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(A) distributing any remaining money in the |
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guaranty fund and trust fund to qualified groups; and |
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(B) notifying interested parties; and |
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(2) an estimated timeline for the wind down. |
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(c) The commissioner shall approve the board's revised plan |
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of operation if the commissioner determines that the plan |
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sufficiently describes the actions the board will take to wind down |
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and dissolve the guaranty fund and trust fund. |
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(d) The board shall: |
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(1) implement the revised plan of operation approved |
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under Subsection (b); and |
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(2) provide written notice to the commissioner of the |
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completion of the wind down not later than the 30th day after the |
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date of completion. |
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(e) Not later than the 30th day after the date the |
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commissioner receives the board's notice under Subsection (d), the |
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commissioner shall determine whether the guaranty fund has met its |
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obligations under the approved revised plan of operation. If the |
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commissioner determines that the guaranty fund met the fund's |
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obligations, the commissioner shall issue an order requiring the |
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distribution of any remaining money in the guaranty fund and trust |
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fund to qualified groups. |
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(f) On the 30th day after the date the commissioner issues |
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the order under Subsection (e): |
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(1) the guaranty fund and the trust fund are |
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dissolved; and |
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(2) the board is abolished. |
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SECTION 3. Not later than December 1, 2023, the board of |
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directors of the Texas self-insurance group guaranty fund shall |
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submit the revised plan of operation to the commissioner of |
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insurance required by Section 407A.4561, Labor Code, as added by |
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this Act. |
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SECTION 4. This Act takes effect September 1, 2023. |