Senate Bill No. 264 proposes significant changes to the Texas Workers' Compensation Act by discontinuing group self-insurance coverage and dissolving the Texas self-insurance group guaranty fund and trust fund. The bill introduces new provisions that prohibit the issuance of new certificates of approval for proposed groups after September 1, 2025, while allowing amendments to existing certificates issued before that date. Additionally, it establishes a framework for a revised plan of operation to wind down the guaranty fund and trust fund, requiring the board to submit this plan to the commissioner for approval.

The revised plan must outline steps for distributing any remaining funds to qualified groups and notifying interested parties, along with an estimated timeline for the wind-down process. The commissioner is tasked with determining if the plan adequately describes the necessary actions for dissolution. If the obligations are met, the commissioner will order the distribution of remaining funds, leading to the dissolution of both the guaranty fund and trust fund, as well as the abolition of the board, effective 30 days after the order is issued. The bill mandates that the board submit the revised plan by December 1, 2025, and it will take effect on September 1, 2025.

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