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TX HB4389

TX HB4389
Relating to the funding mechanism for the regulation of workers' compensation and workers' compensation insurance; authorizing surcharges.


summary

Introduced
03/09/2023
In Committee
05/22/2023
Crossed Over
05/06/2023
Passed
Dead
05/29/2023

Introduced Session

88th Legislature Regular Session

Bill Summary

Relating to the funding mechanism for the regulation of workers' compensation and workers' compensation insurance; authorizing surcharges.

AI Summary

This bill amends the Texas Insurance Code to change the funding mechanism for the regulation of workers' compensation and workers' compensation insurance. The bill authorizes the use of surcharges instead of maintenance taxes for this purpose. Key provisions include: 1) Allowing the Commissioner of Insurance to annually set the rate of assessment for the surcharges, up to a maximum of 2.7% of gross workers' compensation insurance premiums; 2) Allowing insurers to recover the surcharges by reflecting them as an expense in rate filings or by charging policyholders directly; and 3) Aligning the collection of surcharges across different chapters of the Labor Code. The changes apply to annual premiums reported on or after the effective date of January 1, 2024.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Not again placed on intent calendar (on 05/24/2023)

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