S.B. No. 1455 amends the Texas Insurance Code and Labor Code to introduce a funding mechanism for the regulation of workers' compensation and insurance through the implementation of surcharges, replacing the previous terminology of "maintenance taxes." The bill outlines the responsibilities of the Texas Department of Insurance and the commissioner in assessing and collecting these surcharges, which will be deposited into the general revenue fund and allocated to the Texas Department of Insurance operating account. Insurers will be required to pay a surcharge based on their gross premiums from workers' compensation insurance, capped at a rate not exceeding 2.7%. Insurers can recover these surcharge costs through rate filings or by charging policyholders.

Additionally, the bill modifies the Labor Code to replace "maintenance tax" with "surcharge" for self-insurers and self-insurance groups, mandating certified self-insurers to pay a self-insurer surcharge to support various administrative functions and fraud prosecution, capped at two percent of their total surcharge base. The bill also clarifies that surcharge liability for self-insurance groups is based on gross premiums and specifies that it does not apply to excess insurance premiums. The collected surcharges will be deposited into the Texas Department of Insurance operating account, with the changes taking effect on January 1, 2026, and applying only to gross annual premiums or liabilities incurred after that date.

Statutes affected:
Introduced: Insurance Code 201.001, Insurance Code 251.001, Insurance Code 251.002, Insurance Code 251.003, Insurance Code 251.004, Labor Code 402.076, Labor Code 403.001, Labor Code 403.002, Labor Code 403.003, Labor Code 403.004, Labor Code 403.005, Labor Code 403.007, Labor Code 405.003, Labor Code 407.103, Labor Code 407.104, Labor Code 201.051 (Labor Code 201, Insurance Code 251, Labor Code 407, Labor Code 405, Labor Code 403, Labor Code 402, Insurance Code 201)