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A BILL TO BE ENTITLED
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AN ACT
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relating to the workers' compensation group self-insurance |
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guaranty fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 407A, Subchapter B, Labor Code is |
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amended by adding new Section 407A.0521 to read as follows: |
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Sec. 407A.0521. NEW CERTIFICATES OF APPROVAL PROHIBITED. |
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(a) Notwithstanding Section 407A.052, the commissioner shall not |
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issue a certificate of approval to a proposed group on or after |
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September 1, 2023. |
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(b) Nothing in this section affects the commissioner's |
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authority to amend a certificate of approval issued by the |
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commissioner to a group prior to September 1, 2023. |
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SECTION 2. Section 407A.456 Labor Code is amended to read as |
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follows: |
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Sec. 407A.456. PLAN OF OPERATION. (a) The board shall |
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adopt a plan of operation governing the board's activities and the |
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operation of the guaranty fund and the trust fund. |
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(b) The plan of operation adopted by the board is subject to |
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approval by the commissioner. |
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(c) The board shall submit a revised plan of operation to |
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the commissioner for approval to wind down the operations of the |
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guaranty fund and the trust fund, including a plan for distribution |
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of any remaining funds to qualified groups. For the purpose of this |
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chapter, a "qualified group" is a group that has a current |
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certificate of approval under this chapter and has not been |
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determined by the commissioner to be insolvent under Sections |
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407A.355 and 407A.458, Labor Code. |
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(d) The commissioner shall approve the revised plan of |
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operation if the plan sufficiently describes the steps the board |
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will take to wind down and dissolve the operations of the guaranty |
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fund and trust fund, including distributing any remaining trust |
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funds to qualified groups, notifying interested parties, and |
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estimating a timeline for wind down. |
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(e) The board shall deliver written notice to the |
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commissioner not later than 30th day after the date the wind down is |
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complete. |
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(f) Not later than the 30th day after the date the |
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commissioner receives the notice described in Subsection (e), the |
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commissioner shall issue an order determining whether the guaranty |
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fund has met its obligations under the revised plan of operations |
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described in Subsection (d). If the commissioner determines that |
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the guaranty fund has met its obligations, the order shall include |
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language requiring the distribution of any remaining funds to |
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qualified groups. |
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(g) On the 30th day after the issuance of the order |
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described in subsection (f), the guaranty fund and the trust fund |
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are dissolved. |
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SECTION 3. (a) Not later than December 1, 2023, the board |
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shall submit a revised plan of operation to the commissioner of |
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insurance as required by Section 407A.456, Labor Code. |
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(b) The board of directors established under Section |
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407A.453, Labor Code, is abolished on the date the guaranty fund and |
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trust fund are dissolved in accordance with Section 407A.456. |
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SECTION 4. This Act takes effect September 1, 2023. |