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Texas Labor Code - Section 407.124. Impaired Employer; Assessments

Legal Research Home > Texas Lawyer > Labor Code > Texas Labor Code - Section 407.124. Impaired Employer; Assessments

§ 407.124. IMPAIRED EMPLOYER;  ASSESSMENTS.  (a) On 
determination by the division that a certified self-insurer has 
become an impaired employer, the commissioner shall secure release 
of the security deposit required by this chapter and shall promptly 
estimate:
		(1)  the amount of additional funds needed to 
supplement the security deposit;
		(2)  the available assets of the impaired employer for 
the purpose of making payment of all incurred liabilities for 
compensation;  and
		(3)  the funds maintained by the association for the 
emergency payment of compensation liabilities.
	(b)  The commissioner shall advise the board of directors of 
the association of the estimate of necessary additional funds, and 
the board shall promptly assess each certified self-insurer to 
collect the required funds.  An assessment against a certified 
self-insurer shall be made in proportion to the ratio that the total 
paid income benefit payment for the preceding reported calendar 
year for that self-insurer bears to the total paid income benefit 
payment by all certified self-insurers, except impaired employers, 
in this state in that calendar year.
	(c)  A certified self-insurer designated as an impaired 
employer is exempt from assessments beginning on the date of the 
designation until the division determines that the employer is no 
longer impaired.

Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.  Amended 
by Acts 2005, 79th Leg., ch. 265, § 3.065, eff. Sept. 1, 2005.

Last modified: August 10, 2007