Texas Municipal League Intergovernmental Risk Pool v. Texas Workers' Compensation Commission
The Texas Municipal League Intergovernmental Risk Pool, representing numerous self-insured political subdivisions, challenged specific sections of the Texas Labor Code and associated administrative rules. These provisions require workers' compensation insurance carriers, including the Risk Pool, to pay death benefits (in cases where no legal beneficiary exists) into the Subsequent Injury Fund. This fund is then used to compensate workers who sustain second injuries and to reimburse other insurance carriers. The Risk Pool contended that these mandates violate Article III, Section 52(a) of the Texas Constitution, which restricts political subdivisions from lending credit or granting public money to individuals or private corporations without a pre-existing legal obligation. While the trial court initially agreed with the Risk Pool, the court of appeals reversed this decision, and the Supreme Court subsequently affirmed that reversal. Justice Owen dissents from this judgment, arguing that the challenged funding mechanism is unconstitutional, as it compels political subdivisions to fund compensation for non-employees and to reimburse private carriers, citing the precedent set in *City of Tyler v. Texas Employers’ Insurance Association*.