By: Phillips H.B. No. 3226       A BILL TO BE ENTITLED   AN ACT   Relating to the creation of the Temporary Texas Health Insurance   Risk Pool          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle G, Insurance Code, is amended by adding   Chapter 1510 to read as follows:   CHAPTER 1510.  TEXAS TEMPORARY HEALTH INSURANCE POOL          Sec. 1510.101  ESTABLISHMENT OF TEMPORARY HEALTH INSURANCE   RISK POOL.  To the extent that federal funds become available under   federal law, regulation, or executive action after March 1, 2017,   the commissioner may apply for such funds and use such funds to   establish and administer a temporary health insurance risk pool   from which funds may be used for the purposes of this chapter.          Sec. 1510.102.  PURPOSES OF TEMPORARY POOL.  (a)  The purpose   of the pool is to provide a temporary mechanism for maximizing   available federal funding to assist Texas residents in obtaining   access to quality health care at minimum cost to the public.          (b)  The pool may not be used to expand the Medicaid program   under Chapter 32 of the Human Resources Code.          Sec. 1510.103.  PROVIDING COVERAGE. (a)  Subject to any   requirements for obtaining federal funds held within the pool, the   commissioner may use pool funds to provide alternative individual   health insurance coverage to eligible individuals without   diminishing the availability of traditional commercial health care   coverage, provide funding to individual health benefit plan   insurers covering individuals with certain health or cost   characteristics in exchange for lower individual health plan   premium rates, or provide a reinsurance program for carriers in the   individual market in exchange for lower individual health plan   premium rates.          Sec. 1510.104.  CONTRACTS.  (a)  The commissioner may enter   into any contract or agreement that the commissioner considers   appropriate to carry out this chapter, including a contract or   agreement with:                (1)  a similar pool in another state for the joint   performance of common administrative functions;                (2)  another organization for the performance of   administrative functions; or                (3)  with a federal agency.          (b)  The commissioner may contract for stop-loss insurance   for risks incurred under this Chapter.          Sec. 1510.105.  FUNDING. (a)  The commissioner may use funds   appropriated to the department to apply for federal funding and   grants and to administer this Chapter.          (b)  The commissioner may use federal funds to administer   this Chapter, as appropriate.          (c)  Except as provided in this section, the commissioner may   not use any state funds to fund the Pool unless they are   specifically appropriated for that purpose.          (d)  Notwithstanding Section 6(d)(2,) Chapter 615 (S.B.   1367), Acts of the 83rd Legislature, Regular Session, 2013, on or   after the effective date of this bill, the commissioner of   insurance shall transfer any funds remaining in the Texas Treasury   Safekeeping Trust Company account created under the provisions of   Section 6(c) of Chapter 615 (S.B. 1367), Acts of the 83rd   Legislature, Regular Session, 2013, to the fund established under   Subchapter F, Chapter 1508, Insurance Code.          (e)  Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B.   1367), Acts of the 83rd Legislature, Regular Session, 2013, the   commissioner of insurance may use funds appropriated to the   department from the fund established under Subchapter F, Chapter   1508, Insurance Code, for the purposes of this chapter but   excluding salaries and salary related benefits.          (f)  Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B.   1367), Acts of the 83rd Legislature, Regular Session, 2013, on or   after the effective date of this bill, the commissioner of   insurance shall transfer funds from the fund established under   Subchapter F, Chapter 1508, Insurance Code, to the General   Revenue-Dedicated Texas Department of Insurance Operating Fund 36   to cover the appropriations for direct and indirect costs for the   purposes of this chapter.          Sec. 1510.106.  PUBLIC EDUCATION AND OUTREACH.  (a)  The   commissioner may use any funds appropriated to the department for   the purposes of this chapter to develop and implement public   education, outreach, and facilitated enrollment strategies under   this chapter.          (b)  The commissioner may contract with marketing   organizations to perform or provide assistance with education,   outreach, and enrollment strategies described by Subsection (a).          Sec. 1510.107.  WAIVER.  The commissioner is authorized, and   may take any action the commissioner considers appropriate, to   apply to the United States Secretary of Health and Human Services   under 42 U.S.C. §18052 for a waiver of applicable provisions of P.L.   111-148 (Patient Protection and Affordable Care Act) and any   applicable regulations or guidance with respect to health insurance   coverage in the state for a plan year beginning on or after January   1, 2017.  The commissioner may implement a state plan meeting the   waiver requirements in a manner consistent with state and federal   law and as approved by the United States Secretary of Health and   Human Services.          Sec. 1510.108.  ADDITIONAL AUTHORITY.  In addition to the   other powers granted under this chapter, the commissioner may   exercise any authority that a reinsurer, or a health benefit plan   issuer authorized to write health benefit plans in this state, may   exercise under the law of this state.          Sec. 1510.198.  RULES.  The commissioner may adopt rules   necessary and appropriate to implement this chapter, including the   administration of the pool and distribution of money from the pool.          Sec. 1510.110.  EXEMPTION FROM STATE TAXES AND FEES.  The   programs created under this Chapter are not subject to any state   tax, regulatory fee, or surcharge, including a premium or   maintenance tax or fee.          Sec. 1510.111.  ANNUAL REPORT OF POOL'S ACTIVITIES.  (a)     Beginning in June of 2018, not later than June 1 of each year, the   Department shall submit a report to the governor, the lieutenant   governor, and the speaker of the house of representatives.          (b)  The report must summarize the activities conducted   under this chapter in the calendar year preceding the year in which   the report is submitted and must include information relating to   net written and earned premiums, plan enrollment, administration   expenses, and paid and incurred losses.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the votes necessary for immediate effect, this   Act takes effect September 1, 2017.  This Chapter expires August 31,   2019, unless extended by the Legislature.