S.B. No. 264 is a legislative act aimed at discontinuing group self-insurance coverage and dissolving the Texas self-insurance group guaranty fund and trust fund under the Texas Workers' Compensation Act. The bill introduces new provisions in the Labor Code, 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 the board of directors of the Texas self-insurance group guaranty fund to submit a revised plan of operation for winding down and dissolving the guaranty fund and trust fund, including steps for distributing remaining funds to qualified groups and notifying interested parties.

The bill mandates that the revised plan must be submitted to the commissioner for approval by December 1, 2025, and outlines the timeline and procedures for the dissolution of the funds. If the commissioner determines that the guaranty fund has met its obligations under the approved plan, 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 act is set to take effect on September 1, 2025.

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