By Brimer H.B. No. 976 75R3658 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the abolition of the Texas Workers' Compensation 1-3 Insurance Facility and the transfer of the assets and liabilities 1-4 of that facility. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. DETERMINATION BY COMMISSIONER OF INSURANCE. As 1-7 soon as practicable after the effective date of this Act, the 1-8 commissioner of insurance shall determine whether the sale and 1-9 transfer of the business of the Texas Workers' Compensation 1-10 Insurance Facility to a private entity is in the best interests of 1-11 this state. 1-12 SECTION 2. SALE TO PRIVATE ENTITY. (a) If the commissioner 1-13 of insurance determines that the sale and transfer of the business 1-14 of the Texas Workers' Compensation Insurance Facility to a private 1-15 entity is in the best interests of this state, the commissioner 1-16 shall take action necessary to accomplish the sale, or the transfer 1-17 under Section 3 of this Act, not later than June 1, 1997. 1-18 (b) The commissioner shall specify the requirements for the 1-19 sale of the business to a private entity and the qualifications 1-20 that must be met by the purchaser. 1-21 (c) The commissioner is responsible for the transfer of all 1-22 of the assets, liabilities, and obligations of the Texas Workers' 1-23 Compensation Insurance Facility to the purchaser. 1-24 SECTION 3. TRANSFER TO TEXAS PROPERTY AND CASUALTY INSURANCE 2-1 GUARANTY ASSOCIATION. (a) If the commissioner of insurance 2-2 determines that the sale and transfer of the business of the Texas 2-3 Workers' Compensation Insurance Facility to a private entity is not 2-4 in the best interests of this state, or if a qualified purchaser is 2-5 not timely identified, the commissioner shall immediately notify 2-6 the Texas Workers' Compensation Insurance Facility and the Texas 2-7 Property and Casualty Insurance Guaranty Association. The 2-8 association shall assume all of the assets, liabilities, and 2-9 obligations of the facility. The association and the commissioner 2-10 may execute a memorandum of understanding concerning the transfer, 2-11 but that memorandum may not delay the transfer to a date later than 2-12 June 1, 1997. 2-13 (b) If the facility's assets are insufficient to pay all 2-14 claim liabilities assumed by the association on policies issued by 2-15 the facility on or before December 31, 1993, as those liabilities 2-16 come due, the association shall make a final assessment of the 2-17 members of the facility in accordance with Section 4.04, Article 2-18 5.76-2, Insurance Code, for the necessary amount, as if the 2-19 association were the facility. Notwithstanding the repeal of 2-20 Article 5.76-2, Insurance Code, by this Act, Article 5.76-2 2-21 continues in effect for the purpose of the assessment and 2-22 collection of that amount. 2-23 SECTION 4. ABOLITION OF FACILITY. The Texas Workers' 2-24 Compensation Insurance Facility is abolished on the date on which 2-25 its assets, liabilities, and obligations are transferred to another 2-26 entity under this Act. 2-27 SECTION 5. REPEALER. The following laws are repealed: 3-1 (1) Article 5.76-2, Insurance Code; and 3-2 (2) Section 18.24(b), Chapter 12, Acts of the 72nd 3-3 Legislature, 2nd Called Session, 1991. 3-4 SECTION 6. The importance of this legislation and the 3-5 crowded condition of the calendars in both houses create an 3-6 emergency and an imperative public necessity that the 3-7 constitutional rule requiring bills to be read on three several 3-8 days in each house be suspended, and this rule is hereby suspended, 3-9 and that this Act take effect and be in force from and after its 3-10 passage, and it is so enacted.