Texas Workers Compensation Act

    Title 5 - Texas Labor Code - Chapters 401-506

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TABLE OF CONTENTS

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LABOR CODE

CHAPTER 403. DIVISION FINANCING


	§ 403.001. 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 Texas Department of Insurance operating account.
	(b)  The money may be spent as authorized by legislative 
appropriation on warrants issued by the comptroller under 
requisitions made by the commissioner of insurance.
	(c)  Money deposited in the general revenue fund under this 
section may be used to satisfy the requirements of Section 201.052, 
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;  
Acts 2005, 79th Leg., ch. 265, § 3.010, eff. Sept. 1, 2005;  Acts 
2005, 79th Leg., ch. 728, § 11.133, eff. Sept. 1, 2005.


	§ 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.
	(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 Chapter 255, 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;  Acts 2005, 
79th Leg., ch. 728, § 11.134, eff. Sept. 1, 2005.


	§ 403.003. RATE OF ASSESSMENT.  (a) The commissioner of 
insurance shall set and certify to the comptroller the rate of 
maintenance tax assessment taking into account:
		(1)  any expenditure projected as necessary for the 
division and the office of injured employee counsel 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 Section 201.052, 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 commissioner of 
insurance may not consider revenue or expenditures related to:
		(1)  the State Office of Risk Management;                                     
		(2)  the workers' compensation research functions of 
the department under Chapter 405;  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;  Acts 2005, 
79th Leg., ch. 265, § 3.011, eff. Sept. 1, 2005;  Acts 2005, 79th 
Leg., ch. 728, § 11.135, eff. Sept. 1, 2005.


	§ 403.004. COLLECTION OF TAX AFTER WITHDRAWAL FROM 
BUSINESS.  The commissioner or the commissioner of insurance 
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.  Amended 
by Acts 2005, 79th Leg., ch. 265, § 3.012, eff. Sept. 1, 2005.


	§ 403.005. TAX RATE.  The commissioner of insurance shall 
annually adjust the rate of assessment of the maintenance tax 
imposed under Section 403.003 so that the tax imposed that year, 
together with any unexpended funds produced by the tax, produces 
the amount the commissioner of insurance determines is necessary to 
pay the expenses of administering this subtitle. 

Amended by Acts 2005, 79th Leg., ch. 265, § 3.013, eff. Sept. 1, 
2005.   


	§ 403.006. SUBSEQUENT INJURY FUND.  (a) The subsequent 
injury fund is a dedicated 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 commissioner as provided by this subtitle, 
consistent with the priorities established by rule by the 
commissioner;  and
		(3)  reimbursement of insurance carrier claims as 
provided by Sections 408.042 and 413.0141, consistent with the 
priorities established by rule by the commissioner.
	(c)  The commissioner 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 commissioner 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;  Acts 
2005, 79th Leg., ch. 265, § 3.014, eff. Sept. 1, 2005.


	§ 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 division 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 commissioner may 
order that death benefits payable to the fund be commuted on written 
approval of the commissioner.  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 
division 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 
commissioner or the final judgment of a court of competent 
jurisdiction that a legal beneficiary is entitled to the death 
benefits, the commissioner shall order the fund to reimburse the 
insurance carrier for the amount overpaid to the fund.
	(e)  If the commissioner 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 commissioner's actuary or financial advisor shall 
report biannually to the department on the financial condition and 
projected assets and liabilities of the subsequent injury fund.  
The commissioner shall make the reports available to members of the 
legislature and the public.  The division may purchase annuities to 
provide for payments due to claimants under this subtitle if the 
commissioner 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;  
Acts 2005, 79th Leg., ch. 265, § 3.015, eff. Sept. 1, 2005.