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, the official text

S.B. No. 264

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, 2025.

(b) The commissioner may amend a certificate of approval

issued to a group before September 1, 2025.

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, 2025, 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, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 264 passed the Senate on

April 16, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 264 passed the House on

May 22, 2025, by the following vote: Yeas 141, Nays 0, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor