HB 565 Summary

• Establishes the State Self-Insurance Against Property and Casualty Risks Special Fund administered by the Comptroller through the risk manager to provide self-insurance coverage for state property and casualty losses.

• Special fund pays claims to state agencies for losses caused by fire or other casualty, including repair or replacement of buildings, contents, and provision of alternate structures during repairs.

• Authorizes the Comptroller to establish deductibles for state agencies and assess them for losses up to the deductible amount, or reduce payments from the special fund by the deductible amount.

• Permits the Comptroller to establish a captive insurance program owned and controlled by the State to insure losses and exposures of state agencies, including approval of business plans, premium establishment, capital requirements, and compliance with applicable insurance laws.

• Appropriates unspecified amounts from general revenues to the special fund and from the special fund for fiscal year 2023-2024, with implementation effective June 30, 3000.