By Madden                                              H.B. No. 937
       74R1343 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the establishment and operation of a self-insured
    1-3  guaranty account for the protection of policyholders of the Texas
    1-4  workers' compensation insurance fund.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Article 5.76-3, Insurance Code, is amended by
    1-7  adding Section 22 to read as follows:
    1-8        Sec. 22.  GUARANTY ACCOUNT.  (a)  The workers' compensation
    1-9  insurance fund guaranty account is created as a special account in
   1-10  the state treasury to:
   1-11              (1)  provide a mechanism for the payment of workers'
   1-12  compensation insurance claims under policies issued by the fund in
   1-13  the event of the insolvency of the fund;
   1-14              (2)  avoid financial loss to claimants or policyholders
   1-15  because of the insolvency of the fund; and
   1-16              (3)  ensure a source of capital for solvency, cash
   1-17  flow, and capacity problems.
   1-18        (b)  The guaranty account is composed of:
   1-19              (1)  the deposit required under Subsection (c) of this
   1-20  section; and
   1-21              (2)  income earned on the amount in the account.
   1-22        (c)  The fund annually shall deposit in the guaranty account
   1-23  an amount equal to the amount of the fund's liability for federal
   1-24  income taxes were the fund held to be a taxable entity for federal
    2-1  income tax purposes.  The state auditor shall compute the amount of
    2-2  the annual deposit.
    2-3        (d)  Money in the account may be disbursed by the fund on
    2-4  notification to and the approval of:
    2-5              (1)  the governor;
    2-6              (2)  the lieutenant governor;
    2-7              (3)  the speaker of the Texas House of Representatives;
    2-8  and
    2-9              (4)  the commissioner of insurance.
   2-10        (e)  In addition to disbursements from the guaranty account
   2-11  for the purposes described by Subsection (a) of this section, if
   2-12  the Internal Revenue Service determines that the fund is liable for
   2-13  the payment of federal income taxes, the fund may use the guaranty
   2-14  account to pay any federal income tax liability determined to be
   2-15  outstanding.
   2-16        SECTION 2.  This Act takes effect September 1, 1995.
   2-17        SECTION 3.  A disbursement from the workers' compensation
   2-18  insurance fund guaranty account created under Section 22, Article
   2-19  5.76-3, Insurance Code, as added by Section 1 of this Act, for
   2-20  payment of a workers' compensation claim for which the Texas
   2-21  workers' compensation insurance fund is liable, may be made only
   2-22  for a workers' compensation claim that is filed on or after the
   2-23  effective date of this Act.  A claim filed before that date is
   2-24  governed by the law in effect on the date that the claim was filed,
   2-25  and the former law is continued in effect for that purpose.
   2-26        SECTION 4.  The importance of this legislation and the
   2-27  crowded condition of the calendars in both houses create an
    3-1  emergency and an imperative public necessity that the
    3-2  constitutional rule requiring bills to be read on three several
    3-3  days in each house be suspended, and this rule is hereby suspended.