| (f) The board of directors shall approve a budget for the operating expenses for the succeeding year not later than December 31 of each year. (1) Income earned from the investment of the trust fund shall be used for expenses of administration of the association and of the trust fund. (2) The board may assess an administrative fee against members only when trust fund income is insufficient to pay the costs of administering the trust fund, operations of the association, and administering the claims of impaired members or former members. (g) If the Commissioner declares that a certified self-insurer (or former self-insurer) is impaired and determines that the payment of benefits and claims administration shall be made through the association, the board shall provide for the administration and payment of claims on behalf of the impaired certified self-insurer (or former self-insurer) in accordance with the Texas Workers' Compensation Act. The board shall provide for the creation of a separate account for the administration of each impaired certified self-insurer (or former self-insurer) and for the payment from the trust fund to the separate account if the Commissioner advises the board that additional funds are needed to supplement the security deposit. (h) The association shall indemnify, or pay in advance, any present or former director, officer, appointee, committee member, person serving in any appointed or elected capacity, or employee for expenses, or other loss in connection with any proceeding in which such a person is made a party because of the position they hold for the association to the full extent of the law. (1) The association may purchase insurance for any present or former director, officer, appointee, committee member, person serving in any appointed or elected capacity, or employee of the association against any liability arising out of the position they hold for the association, whether or not the association would have the power to indemnify him or her against liability. (2) The protection and indemnification provided in this article shall be in addition to any other right to which a director, officer, appointee, committee member, person serving in any appointed or elected capacity, or employee may be entitled. (i) The board shall adopt and amend rules, including these bylaws, in accordance with the Administrative Procedure Act, Government Code, Chapter 2001. After proposing, publishing, and receiving comments on rules, the board shall meet and vote on a final version. Adoption of rules must be made contingent on approval by the Commissioner and ratification by the association. The rules so adopted shall be sent to the Commissioner. Upon approval by the Commissioner, and ratification by the association, the rules shall be filed with the Texas Register and shall become effective in accord with the provisions of the Administrative Procedure Act. Failure to obtain ratification by the members will result in the board reconsidering the rule and voting on a revised version. (1) Rules shall be ratified by a majority vote of the members of the association after adoption by the board. The president may choose to conduct the ratification vote by mail-in ballot. Notice of rulemaking actions by the board must be given in the manner provided by this rule. (2) Any notice required or allowed by this rule shall be in writing and delivered by the United States Postal Service or private delivery service, return receipt requested. In the case of notice to a member of the association, notice shall be made to the designated representative of the member. In the absence of a return receipt, notice shall be deemed to be given five days after deposit with the United States Postal Service or private delivery service, postage prepaid. Failure of a member to actually receive a notice shall not invalidate any action that may have been taken by the association or the board. (j) The fiscal year of the association shall be January 1 through December 31 of each year. (k) The board shall keep books and records of accounts, minutes of meetings of directors, and a record of members. All records of the association will be open to review by any member at a time and place convenient to the member and association staff. The financial records of the association shall be audited annually by an independent auditor. (l) All meetings of the association and the board of directors shall be conducted in accordance with the most current edition of Roberts Rules of Order, except when in conflict with the Texas Workers' Compensation Act, these rules, and any other applicable statute including the Texas Open Meetings Act. |
| Source Note: The provisions of this §181.1 adopted to be effective March 4, 1994, 19 TexReg 1232; amended to be effective April 2, 1996, 21 TexReg 2392; amended to be effective June 30, 1997, 22 TexReg 5926; amended to be effective December 11, 2006, 31 TexReg 9839 |
