S.B. No. 264 aims to discontinue group self-insurance coverage and dissolve the Texas self-insurance group guaranty fund and trust fund under the Texas Workers' Compensation Act. The bill introduces new provisions, specifically Section 407A.0521, which prohibits the commissioner from issuing new certificates of approval to proposed groups after September 1, 2025, while allowing amendments to existing certificates issued before that date. Additionally, Section 407A.4561 outlines a process for qualified groups to submit a revised plan of operation for winding down and dissolving the guaranty fund and trust fund, including steps for distributing remaining funds and notifying interested parties.

The bill mandates that the board of directors of the Texas self-insurance group guaranty fund submit the revised plan to the commissioner by December 1, 2025. Upon approval of the plan, the board is responsible for implementing it and notifying the commissioner of its completion. If the commissioner determines that the guaranty fund has met its obligations, an order will be issued for the distribution of remaining funds, leading to the dissolution of the guaranty fund and trust fund, as well as the abolition of the board, effective 30 days after the order is issued. The overall effect of the bill is to phase out group self-insurance coverage and ensure a structured wind-down of the associated funds by September 1, 2025.

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