| TO: | Honorable Helen Giddings, Chair, House Committee on Business & Industry |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB1353 by Cook, Robby (Relating to creation and maintenance of a guaranty fund for groups certified to self insure for workers' compensation under Chapter 407A, Labor Code.), As Introduced |
The bill would amend Chapter 407A of the Labor Code by adding new Subchapter J. The bill would create the Texas Self-Insurance Group Fund as a non-profit association that provides for the payment of workers' compensation benefits through a guaranty fund for injured employees covered by a group that has been declared insolvent. The bill would establish the Texas Self-Insurance Group Board to create and maintain the Texas Self-Insurance Group Fund. The bill would require the Commissioner of the Texas Department of Insurance (TDI) to designate one member to the board and appoint the initial three members representing self-insured groups. The bill would require the Public Counsel of the Office of Public Insurance Counsel (OPIC) to be a member of the board.
It is assumed the Texas Self-Insurance Group Fund, like other existing guaranty funds, would be held by the non-profit entity outside the State Treasury.
Based on the analysis of TDI and OPIC, it is assumed any duties and responsibilities associated with implementing the provisions of the bill could be absorbed within existing resources.
The bill would take effect on September 1, 2005.
| Source Agencies: | 359 Office of Public Insurance Counsel, 453 Workers' Compensation Commission, 454 Department of Insurance
|
| LBB Staff: | JOB, JRO, MW, TG
|