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.
Summary
SB 264 ends the creation of new group self-insurance arrangements under the Texas Workers’ Compensation Act beginning September 1, 2025. It prohibits the commissioner of insurance from issuing new certificates of approval to proposed groups after that date, while still allowing amendments to certificates already issued before then.
The bill also directs the Texas self-insurance group guaranty fund board to submit a revised wind-down plan for approval. That plan must outline how the guaranty fund and trust fund will be dissolved, how remaining money will be distributed to qualified existing groups, how interested parties will be notified, and the expected timeline for closure. After the commissioner approves and the board completes the wind-down, the commissioner must confirm the fund has met its obligations and then order any remaining assets distributed before the fund, trust fund, and board are formally dissolved.
Impact
SB 264 amends Chapter 407A of the Labor Code to phase out future group self-insurance coverage and terminate the statutory structure supporting the Texas self-insurance group guaranty fund and trust fund. It changes the regulatory authority of the commissioner of insurance by barring new certificates of approval for proposed groups after the effective date, while preserving limited authority to amend existing certificates. It also creates a statutory process for winding down the fund’s assets and obligations and abolishes the board once dissolution is complete, affecting existing group self-insurance participants, the guaranty fund, the trust fund, and the Texas Department of Insurance.
Sentiment
The bill appears to have been noncontroversial and broadly supported. It passed the Senate unanimously and the House overwhelmingly, with no recorded opposition in either chamber. The voting pattern suggests consensus around ending the program for new entrants and orderly winding down the associated funds rather than continuing the current structure.
Contention
There is little evidence of substantive contention in the available record, and no committee transcript excerpts were provided. The main policy issue implicit in the bill is whether to preserve or discontinue group self-insurance as a workers’ compensation option; SB 264 resolves that question by phasing out new certificates while protecting existing groups through a managed wind-down. Any potential concerns would likely center on how remaining assets are distributed, how existing qualified groups are treated, and whether the dissolution timeline adequately protects stakeholders, but no organized opposition is reflected in the votes.
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