House Bill No. 4483 amends the Texas Insurance Code and Labor Code to establish a new funding mechanism for the regulation of workers' compensation and workers' compensation insurance through the introduction of "surcharges," replacing the previous term "maintenance taxes." The bill empowers the Texas Department of Insurance to impose these surcharges on authorized insurers based on their gross premiums, with the commissioner responsible for determining annual surcharge rates. The collected funds will be deposited into the general revenue fund and allocated to the Texas Department of Insurance operating account. Insurers are allowed to recover these surcharge costs through rate filings or by charging policyholders, with a maximum surcharge rate capped at 2.7% of gross premiums.

Additionally, the bill modifies the Labor Code to require certified self-insurers to pay a self-insurer surcharge for the administration of the division and the office of injured employee counsel, as well as to combat workers' compensation insurance fraud. The surcharge is calculated based on the self-insurer's liabilities and expenses, with a limit of no more than 2% of the total surcharge base for all certified self-insurers. The bill stipulates that surcharges are due 60 days after the issuance of a certificate of authority to self-insure and after each annual renewal date. It also establishes that failure to pay these surcharges on time constitutes an administrative violation, and the changes will apply only to gross annual premiums and liabilities incurred on or after January 1, 2026, while previous maintenance taxes will still be governed by the old law.

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 405, Labor Code 201, Labor Code 407, Insurance Code 201, Labor Code 402, Insurance Code 251, Labor Code 403)