SB264

SB264 stops new approvals for workers’ compensation self-insurance groups and directs the wind-down of their guaranty and trust funds. Signed June 20, 2025, it took effect September 1, 2025. The insurance commissioner cannot approve a proposed group on or after September 1, but may amend a certificate issued before that date. This is not an automatic cancellation of every existing group certificate. Final law; Official history.

The guaranty fund was established to pay workers’ compensation benefits for injured employees covered by an insolvent group. SB264 directs its board to submit a revised wind-down plan to the commissioner by December 1, 2025. The plan must describe distributing remaining money to qualified groups, notifying interested parties and an estimated timetable. A qualified group must hold a current certificate and must not have been determined insolvent by the commissioner. Guaranty fund’s existing purpose; Section 2.

The commissioner must approve a plan that sufficiently describes the wind-down actions. After carrying it out, the board has up to 30 days to notify the commissioner of completion. Within 30 days after receiving that notice, the commissioner must determine whether the fund met its plan obligations; if it did, the commissioner orders distribution of remaining money to qualified groups. The funds dissolve and the board is abolished on the 30th day after that order—not automatically on December 1. This briefing describes the statutory process; it does not establish that a particular completion notice, distribution order or dissolution has occurred. Wind-down conditions and deadlines.