Bill > HB4483

This bill replaces existing maintenance taxes with surcharges for workers' compensation insurance regulation, creating a more flexible funding mechanism for the Texas Department of Insurance and the Division of Workers' Compensation. The bill changes multiple sections of the Insurance Code and Labor Code to replace references to "maintenance taxes" with "surcharges" and establishes new rules for how these surcharges will be collected and used. Key provisions include setting a maximum surcharge rate of 2.7 percent of gross premiums, allowing insurers to recover surcharges by either reflecting them as expenses in rate filings or charging policyholders directly, and ensuring that the surcharges will fund the administrative expenses of regulating workers' compensation insurance, supporting workers' compensation insurance fraud prosecution, and maintaining the operations of the Texas Department of Insurance. The changes apply to annual premiums reported or liabilities incurred on or after January 1, 2026, and maintain the existing tax structure for periods before that date. By transitioning from a fixed tax to an adjustable surcharge, the bill provides more financial flexibility for insurance regulators while maintaining a consistent funding source for workers' compensation oversight.