By:  Montford                                         S.B. No. 1274
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to calculation of the self-insurer maintenance tax.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 407.103, Texas Labor Code, is amended by
    1-4  amending Subsection (b) to read as follows:
    1-5        (b)  To determine the tax base of a certified self-insurer
    1-6  for purposes of this chapter, the director shall multiply the
    1-7  amount of the certified self-insurer's liabilities for workers'
    1-8  compensation claims incurred in the previous year, including claims
    1-9  incurred but not reported, plus the amount of expense incurred by
   1-10  the certified self-insurer in the previous year for administration
   1-11  of self-insurance, including legal costs, by 1.02 <each certified
   1-12  self-insurer shall report its payroll by individual workers'
   1-13  compensation risk code classifications in its application for
   1-14  certification and in its annual reports to the commission.  The
   1-15  commission shall compute the estimated manual premium for the
   1-16  certified self-insurer using the workers' compensation insurance
   1-17  rates established by the State Board of Insurance.  The commission
   1-18  shall compute the certified self-insurer's tax base by multiplying
   1-19  the estimated manual premium by 0.75>.
   1-20        SECTION 2.  This Act takes effect September 1, 1995.
   1-21        SECTION 3.  The importance of this legislation and the
   1-22  crowded condition of the calendars in both houses create an
   1-23  emergency and an imperative public necessity that the
    2-1  constitutional rule requiring bills to be read on three several
    2-2  days in each house be suspended, and this rule is hereby suspended.