Mark Chadwick

The meeting commenced with a roll call to establish a quorum. Key discussions included the review of previous board meeting minutes and excused absences, both of which had no issues requiring action. The agency operations report covered the status of the biannual performance-based oversight (PBO) for workers' comp carriers, noting the last cycle achieved the high performer tier. Agency outreach efforts involved hosting a working session with the University of North Texas to address outstanding payments related to Winter Storm Uri property claims. Additionally, it was announced that the Chief of Internal Operations was appointed to the board of the State Risk and Insurance Management Association (SRIM). Discussions on property insurance underwriting indicated that meetings with London brokers went well, aiming to maintain property capacity. Significant attention was given to staff turnover, with 15 employees eligible for retirement in 2026, prompting executive team discussions on succession planning. The Chief of Staff also announced her retirement after 32 years of service. The agency is proceeding with hiring a General Counsel, with an interim assistant appointed. Exploratory discussions began regarding Artificial Intelligence (AI) applications, specifically with the Origami system for claim summarization, and planning outreach to Texas Mutual for AI strategy insights. The financial report presented the consolidated budget for the first quarter of FY26, detailing budget adjustments involving moving funds from travel and operating costs to cover increased personnel costs (due to wage increases) and capital budget rollovers for cloud-based services.

The key discussions and potential actions for this meeting agenda include the presentation and discussion of the Agency Operations Report, which covers the budget as of November 30, 2025, HR updates including turnover rates and retirements (notably the retirement of the Chief of Legal Services and General Counsel), training, legislative implementation, administrative rules status, IT project activity like the server migration to the Texas Private Cloud, and contract administration. Old business includes the status update on updating leave policies and procedures to ensure compliance with state code. The agenda also features a Board of Directors and SORM staff workshop covering policymaking responsibilities, objectives, long-term strategic plans, and principal strategic/operational issues.

The agenda for this meeting includes a roll call and recognition of a quorum, consideration of excusing previous board member absences, and the approval of minutes from the October 20, 2025, and October 21, 2025, meetings. Key discussions involve the presentation and discussion of the Agency Operations Report, status updates on old business concerning the project to update leave policies and procedures for time and attendance record compliance with Texas Government Code Section 661.908, and general public comment. The meeting will also include a session to discuss and possibly determine future meeting dates, followed by a Board of Directors and SORM staff workshop focusing on board policymaking responsibilities, objectives, long-term strategic plans, principal strategic and/or operational issues, and Board interactions with the agency.

The board convened to recognize a quorum via video conference, in compliance with Texas Government Code. An executive session was held to discuss the vacant executive director position and conduct interviews of candidates. The first interview was scheduled from 1:30 to 2:30, and the second from 3:00 to 4:00. The board reconvened in an open session, but no action was taken.

The meeting included discussions and actions regarding the fiscal year 2025 internal audit report and the fiscal year 2026 internal audit plan. The board accepted the internal audit report for 2025 and the internal audit plan for fiscal year 2026, which includes conducting an audit of claims operations focusing on timely payment file documentations. The board also moved to proceed to the next item, which was an executive session to discuss the status of a project to update leave policies and procedures. The board also discussed the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee. The board approved hiring Sarah Hayes as the executive director of the state office of risk management and approved increasing the salary of the new executive director.