88R8266 KKR-F
 
  By: Perry S.B. No. 2269
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to discontinuing group self-insurance coverage and
  dissolving the Texas self-insurance group guaranty fund and trust
  fund under the Texas Workers' Compensation Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 407A, Labor Code, is
  amended by adding Section 407A.0521 to read as follows:
         Sec. 407A.0521.  NEW CERTIFICATES OF APPROVAL PROHIBITED.
  (a)  Notwithstanding Section 407A.052, the commissioner may not
  issue a certificate of approval to a proposed group on or after
  September 1, 2023.
         (b)  The commissioner may amend a certificate of approval
  issued to a group before September 1, 2023.
         SECTION 2.  Subchapter J, Chapter 407A, Labor Code, is
  amended by adding Section 407A.4561 to read as follows:
         Sec. 407A.4561.  REVISED PLAN OF OPERATION: WIND DOWN.  (a)  
  In this section, "qualified group" means a group that:
               (1)  holds a current certificate of approval under this
  chapter; and
               (2)  has not been determined by the commissioner to be
  insolvent under Section 407A.355.
         (b)  The board shall submit to the commissioner for approval
  a revised plan of operation to wind down and dissolve the guaranty
  fund and trust fund.  The plan must include:
               (1)  steps for:
                     (A)  distributing any remaining money in the
  guaranty fund and trust fund to qualified groups; and
                     (B)  notifying interested parties; and 
               (2)  an estimated timeline for the wind down.
         (c)  The commissioner shall approve the board's revised plan
  of operation if the commissioner determines that the plan
  sufficiently describes the actions the board will take to wind down
  and dissolve the guaranty fund and trust fund. 
         (d)  The board shall:
               (1)  implement the revised plan of operation approved
  under Subsection (b); and
               (2)  provide written notice to the commissioner of the
  completion of the wind down not later than the 30th day after the
  date of completion.
         (e)  Not later than the 30th day after the date the
  commissioner receives the board's notice under Subsection (d), the
  commissioner shall determine whether the guaranty fund has met its
  obligations under the approved revised plan of operation. If the
  commissioner determines that the guaranty fund met the fund's
  obligations, the commissioner shall issue an order requiring the
  distribution of any remaining money in the guaranty fund and trust
  fund to qualified groups.
         (f)  On the 30th day after the date the commissioner issues
  the order under Subsection (e):
               (1)  the guaranty fund and the trust fund are
  dissolved; and
               (2)  the board is abolished.
         SECTION 3.  Not later than December 1, 2023, the board of
  directors of the Texas self-insurance group guaranty fund shall
  submit the revised plan of operation to the commissioner of
  insurance required by Section 407A.4561, Labor Code, as added by
  this Act.
         SECTION 4.  This Act takes effect September 1, 2023.