89R9569 DNC-D     By: Morgan H.B. No. 3983       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of risk pools primarily consisting of   political subdivisions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 5, Local Government Code, is   amended by adding Chapter 172A to read as follows:   CHAPTER 172A.  GENERAL PROVISIONS FOR RISK POOLS PRIMARILY   CONSISTING OF POLITICAL SUBDIVISIONS          Sec. 172A.001.  APPLICABILITY OF CHAPTER. This chapter   applies only to a risk pool that primarily consists of political   subdivisions.          Sec. 172A.002.  CONFLICT OF LAWS. To the extent of a   conflict between this chapter and other law, this chapter controls.          Sec. 172A.003.  RULES. The commissioner of insurance may   adopt rules to implement this chapter.          Sec. 172A.004.  APPLICABILITY OF INSURANCE LAWS. The   following insurance laws apply to coverage provided by a risk pool   subject to this chapter:                (1)  Title 4, Insurance Code;                (2)  Subtitle C, Title 5, Insurance Code; and                (3)  Chapter 830, Insurance Code.          Sec. 172A.005.  REQUIRED DISCLOSURES. A risk pool that   provides health or property and casualty coverage to the members of   the pool must annually provide to risk pool members:                (1)  a written disclosure that the risk pool is not   insurance and is not regulated in the same manner as insurers   providing similar coverage;                (2)  a copy of the declarations page of the coverage   provided under the risk pool that:                      (A)  lists and identifies each type of coverage   provided under the risk pool; and                      (B)  describes the process for filing claims and   appeals;                 (3)  a copy of the risk pool's budget for the preceding   risk pool year;                 (4)  a report stating the financial status of the risk   pool; and                 (5)  a report with a written explanation of each claim   denial made by the risk pool in the preceding risk pool year.          Sec. 172A.006.  ENFORCEMENT. (a)  The commissioner of   insurance and the Texas Department of Insurance may enforce this   chapter against a risk pool in the same manner as the department   enforces an insurance law against an insurer under Subtitle B,   Title 2, Insurance Code.          (b)  A person may bring an action against a risk pool in   accordance with a law authorizing a private action under Subtitle   C, Title 5, Insurance Code.  Governmental immunity of a risk pool to   suit and from liability is waived to the extent of liability created   by this subsection.          SECTION 2.  Section 172A.004, Local Government Code, as   added by this Act, applies only to a contract entered into on or   after January 1, 2026.          SECTION 3.  This Act takes effect September 1, 2025.