LABOR CODE
CHAPTER 403. COMMISSION FINANCING
§ 403.001. COMMISSION FUNDS. (a) Except as provided
by Sections 403.006 and 403.007 or as otherwise provided by law,
money collected under this subtitle, including administrative
penalties and advance deposits for purchase of services, shall be
deposited in the general revenue fund of the state treasury to the
credit of the commission.
(b) The money may be spent as authorized by legislative
appropriation on warrants issued by the comptroller under
requisitions made by the commission.
(c) Money deposited in the general revenue fund under this
section may be used to satisfy the requirements of Article 4.19,
Insurance Code.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 1995, 74th Leg., ch. 76, § 9.44(a), eff. Sept. 1, 1995.
§ 403.002. MAINTENANCE TAXES. (a) Each insurance
carrier, other than a governmental entity, shall pay an annual
maintenance tax to pay the costs of administering this subtitle and
to support the prosecution of workers' compensation insurance fraud
in this state.
Text of subsec. (b) effective until April 1, 2005
(b) The assessment may not exceed an amount equal to two
percent of the correctly reported gross workers' compensation
insurance premiums.
Text of subsec. (b) effective April 1, 2005
(b) The assessment may not exceed an amount equal to two
percent of the correctly reported gross workers' compensation
insurance premiums, including the modified annual premium of a
policyholder that purchases an optional deductible plan under
Article 5.55C, Insurance Code. The rate of assessment shall be
applied to the modified annual premium before application of a
deductible premium credit.
(c) A workers' compensation insurance company is taxed at
the rate established under Section 403.003. The tax shall be
collected in the manner provided for collection of other taxes on
gross premiums from a workers' compensation insurance company as
provided in Article 5.68, Insurance Code.
(d) Each certified self-insurer shall pay a fee and
maintenance taxes as provided by Subchapter F, Chapter 407.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1443, § 3, eff. Sept. 1, 1997; Acts
2003, 78th Leg., ch. 1274, § 21, eff. April 1, 2005.
§ 403.003. RATE OF ASSESSMENT. (a) The commission
shall set and certify to the comptroller the rate of maintenance tax
assessment not later than October 31 of each year, taking into
account:
(1) any expenditure projected as necessary for the
commission to:
(A) administer this subtitle during the fiscal
year for which the rate of assessment is set; and
(B) reimburse the general revenue fund as
provided by Article 4.19, Insurance Code;
(2) projected employee benefits paid from general
revenues;
(3) a surplus or deficit produced by the tax in the
preceding year;
(4) revenue recovered from other sources, including
reappropriated receipts, grants, payments, fees, gifts, and
penalties recovered under this subtitle; and
(5) expenditures projected as necessary to support the
prosecution of workers' compensation insurance fraud.
(b) In setting the rate of assessment, the commission may
not consider revenue or expenditures related to:
(1) the State Office of Risk Management;
(2) the research and oversight council on workers'
compensation; or
(3) any other revenue or expenditure excluded from
consideration by law.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 1995, 74th Leg., ch. 76, § 9.45(a), eff. Sept. 1, 1995;
Acts 1997, 75th Leg., ch. 1098, § 8, eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1443, § 4, eff. Sept. 1, 1997.
§ 403.004. COLLECTION OF TAX AFTER WITHDRAWAL FROM
BUSINESS. The insurance commissioner or the executive director of
the commission immediately shall proceed to collect taxes due under
this chapter from an insurance carrier that withdraws from business
in this state, using legal process as necessary.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.
§ 403.005. TAX RATE SURPLUS OR DEFICIT. (a) If the tax
rate set by the commission for a year does not produce sufficient
revenue to make all expenditures authorized by legislative
appropriation, the deficit shall be paid from the general revenue
fund.
(b) If the tax rate set by the commission for a year produces
revenue that exceeds the amount required to make all expenditures
authorized by the legislature, the excess shall be deposited in the
general revenue fund to the credit of the commission.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.
§ 403.006. SUBSEQUENT INJURY FUND.
Text of subsec. (a) as amended by Acts 2003, 78th Leg., ch. 211,
§ 2.01
(a) The subsequent injury fund is a dedicated general
revenue account in the state treasury.
Text of subsec. (a) as amended by Acts 2003, 78th Leg., ch. 1296,
§ 5(a)
(a) The subsequent injury fund is an account in the general
revenue fund. Money in the account may be appropriated only for the
purposes of this section or as provided by other law. Section
403.095, Government Code, does not apply to the subsequent injury
fund.
(b) The subsequent injury fund is liable for:
(1) the payment of compensation as provided by Section
408.162;
(2) reimbursement of insurance carrier claims of
overpayment of benefits made under an interlocutory order or
decision of the commission as provided by this subtitle, consistent
with the priorities established by rule by the commission;
(3) reimbursement of insurance carrier claims as
provided by Sections 408.042 and 413.0141, consistent with the
priorities established by rule by the commission; and
(4) the payment of an assessment of feasibility and
the development of regional networks established under Section
408.0221.
(c) The executive director shall appoint an administrator
for the subsequent injury fund.
(d) Based on an actuarial assessment of the funding
available under Section 403.007(e), the commission may make partial
payment of insurance carrier claims under Subsection (b)(3).
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 2001, 77th Leg., ch. 1456, § 10.01, eff. June 17, 2001;
Acts 2003, 78th Leg., ch. 211, § 2.01, eff. June 16, 2003; Acts
2003, 78th Leg., ch. 1296, § 5(a), eff. June 20, 2003.
§ 403.007. FUNDING OF SUBSEQUENT INJURY FUND. (a) If a
compensable death occurs and no legal beneficiary survives or a
claim for death benefits is not timely made, the insurance carrier
shall pay to the commission for deposit to the credit of the
subsequent injury fund an amount equal to 364 weeks of the death
benefits otherwise payable.
(b) The insurance carrier may elect or the commission may
order that death benefits payable to the fund be commuted on written
approval of the executive director. The commutation may be
discounted for present payment at the rate established in Section
401.023, compounded annually.
(c) If a claim for death benefits is not filed with the
commission by a legal beneficiary on or before the first
anniversary of the date of the death of the employee, it is
presumed, for purposes of this section only, that no legal
beneficiary survived the deceased employee. The presumption does
not apply against a minor beneficiary or an incompetent beneficiary
for whom a guardian has not been appointed.
(d) If the insurance carrier makes payment to the subsequent
injury fund and it is later determined by a final award of the
commission or the final judgment of a court of competent
jurisdiction that a legal beneficiary is entitled to the death
benefits, the commission shall order the fund to reimburse the
insurance carrier for the amount overpaid to the fund.
(e) If the commission determines that the funding under
Subsection (a) is not adequate to meet the expected obligations of
the subsequent injury fund established under Section 403.006, the
fund shall be supplemented by the collection of a maintenance tax
paid by insurance carriers, other than a governmental entity, as
provided by Sections 403.002 and 403.003. The rate of assessment
must be adequate to provide 120 percent of the projected unfunded
liabilities of the fund for the next biennium as certified by an
independent actuary or financial advisor.
(f) The commission's actuary or financial advisor shall
report biannually to the Research and Oversight Council on Workers'
Compensation on the financial condition and projected assets and
liabilities of the subsequent injury fund. The commission shall
make the reports available to members of the legislature and the
public. The commission may purchase annuities to provide for
payments due to claimants under this subtitle if the commission
determines that the purchase of annuities is financially prudent
for the administration of the fund.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 2001, 77th Leg., ch. 1456, § 10.02, eff. June 17, 2001.
