The bill proposes the discontinuation of group self-insurance coverage and the dissolution of the Texas self-insurance group guaranty fund and trust fund under the Texas Workers' Compensation Act. It 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, the bill 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. The commissioner is tasked with approving the plan and determining if the guaranty fund has met its obligations before issuing an order for the distribution of remaining funds. Upon completion of these processes, both the guaranty fund and trust fund will be dissolved, and the board will be abolished, with a deadline for submission of the revised plan set for December 1, 2025. The act is set to take effect on September 1, 2025.

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