All Roll Calls
Yes: 276 • No: 28
TexasSB 145589th Legislature Regular SessionSenate
Relating to the funding mechanism for the regulation of workers' compensation and workers' compensation insurance; authorizing surcharges.
Sponsored By: Brent Hagenbuch (Republican), Cole Hefner
Became Law
Fees & Other Nontax Revenue--StateInsurance--Insurers & AgentsInsurance--Property & CasualtyLabor--Workers' CompensationState Finances--Management & ControlTaxation--GeneralCOMPTROLLER OF PUBLIC ACCOUNTSINSURANCE, COMMISSIONER OFINSURANCE, TEXAS DEPARTMENT OF
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Insurers can pass surcharges to employers
Beginning January 1, 2026, Texas replaces workers’ compensation maintenance taxes with surcharges for annual periods starting on or after that date. Insurers can recover these costs through insurance rates or direct charges to employers buying coverage. The money funds insurance regulation, workers’ compensation administration, fraud prosecution, and research; governmental carriers are excluded from administration and research assessments. Covered premium-based surcharge rates together cannot exceed 2.7%, and optional-deductible premiums count before deductible credits. Insurers pay annually or semiannually; the comptroller can require semiannual payment only when prior-year surcharge liability reached $2,000. Rates are set annually using projected expenses and available funds; research rates reflect authorized spending and expected receipts. The insurance commissioner must notify the comptroller at least 45 days before the filing deadline, or a prior-period rate applies. Receipts go into the state insurance department’s operating account in general revenue for appropriation to the department. Covered surcharges count as fees for certain credit rules, while assessments for periods before January 1, 2026, remain under prior law.
Self-insurance groups pay surcharges and face enforcement
Texas workers’ compensation self-insurance groups pay surcharges for regulation, system administration, fraud prosecution, research, and the Office of Injured Employee Counsel. The charges use premiums for risk the group keeps, exclude excess-insurance premiums, and follow the covered combined 2.7% rate limit. They apply to annual premium periods beginning on or after January 1, 2026; examination costs not covered by group surcharges can also be recovered. Groups must send payments to the state insurance department’s operating account, credited to the workers’ compensation division; late payment is an administrative violation. When a group’s approval certificate ends, the responsible commissioner must immediately notify the comptroller to collect the surcharges.
Self-insured employers pay claim-based surcharges
Certified self-insured employers pay surcharges for workers’ compensation administration, fraud prosecution, and the Office of Injured Employee Counsel. The base adds prior-year claim liabilities, including claims incurred but not yet reported, administration expenses, and legal costs. That total is multiplied by 1.02, then by the applicable insurance-carrier surcharge rate. Total assessments under this rule cannot exceed 2% of all certified self-insurers’ combined surcharge base. Payment is due 60 days after certificate issuance and each annual renewal; the new rules cover annual periods beginning on or after January 1, 2026.
Carriers help cover injury fund shortfalls
The law provides a supplemental surcharge on non-governmental carriers when the commissioner finds the Subsequent Injury Fund lacks adequate funding. The assessment must provide 120% of projected unfunded liabilities for the next two-year period. An independent actuary or financial adviser must certify those liabilities. This supplies money for the fund’s expected obligations while adding costs for assessed carriers.
Sponsors & Cosponsors
Sponsors
Brent Hagenbuch
Republican • Senate
Cole Hefner
House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/21/2025
Record vote
Yes: 134 • No: 11
House vote • 5/20/2025
Record vote
Yes: 122 • No: 17
Senate vote • 4/24/2025
Record vote
Yes: 0 • No: 0
Senate vote • 4/24/2025
Record vote
Yes: 0 • No: 0
House vote • Unknown
Committee vote: Trade, Workforce & Economic Development
Yes: 10 • No: 0
Senate vote • Unknown
Committee vote: Business & Commerce
Yes: 10 • No: 0
Actions Timeline
Effective on 1/1/26
6/20/2025HouseFiled without the Governor's signature
6/20/2025HouseSent to the Governor
5/22/2025HouseSigned in the House
5/22/2025HouseSigned in the Senate
5/22/2025SenateReported enrolled
5/22/2025SenateHouse passage reported
5/21/2025SenateStatement(s) of vote recorded in Journal
5/21/2025HouseRecord vote (RV#3139)
5/21/2025HousePassed
5/21/2025HouseRead 3rd time
5/21/2025HouseStatement(s) of vote recorded in Journal
5/20/2025HouseRecord vote (RV#3086)
5/20/2025HousePassed to 3rd reading
5/20/2025HouseRead 2nd time
5/20/2025HousePlaced on General State Calendar
5/20/2025HouseConsidered in Calendars
5/16/2025HouseCommittee report sent to Calendars
5/9/2025HouseCommittee report distributed
5/8/2025HouseComte report filed with Committee Coordinator
5/8/2025HouseReported favorably w/o amendment(s)
4/30/2025HouseConsidered in public hearing
4/30/2025HouseReferred to Trade, Workforce & Economic Development
4/28/2025HouseRead first time
4/28/2025HouseReceived from the Senate
4/25/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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