Bill > SB1455

This bill replaces existing maintenance taxes with surcharges for workers' compensation insurance regulation in Texas. The legislation changes multiple sections of the Insurance Code and Labor Code to replace the term "maintenance tax" with "surcharge" and establish new rules for these surcharges. Key provisions include setting a maximum surcharge rate of 2.7 percent of gross premiums, allowing insurers to recover surcharges by reflecting them as expenses in rate filings or charging policyholders, and ensuring that the surcharges fund the administration of workers' compensation regulation, fraud prosecution, and related administrative functions. The bill applies to various types of insurance carriers, including stock insurance companies, mutual insurance companies, reciprocal exchanges, and self-insurance groups. The surcharges will be collected annually or semi-annually, deposited in the Texas Department of Insurance operating account, and used to support the Division of Workers' Compensation and related administrative offices. The changes will take effect on January 1, 2026, and will apply to gross annual premiums reported or liabilities incurred from that date forward.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1455