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.