Bill > HB3983

This bill creates a new chapter in the Texas Local Government Code specifically regulating risk pools that primarily consist of political subdivisions. The bill requires these risk pools to provide annual disclosures to their members, including a written statement that the risk pool is not traditional insurance, a declarations page detailing coverage types and claims processes, the risk pool's budget, a financial status report, and an explanation of any claim denials. The bill clarifies that certain insurance laws will apply to these risk pools, and gives the Commissioner of Insurance authority to adopt rules and enforce the new regulations. The Texas Department of Insurance can enforce the chapter similarly to how they regulate insurers, and members are allowed to bring private actions against risk pools, with governmental immunity waived to the extent of the liability created by this law. The provisions will apply to contracts entered into on or after January 1, 2026, and the act itself will take effect on September 1, 2025. A "risk pool" in this context refers to a cooperative arrangement where multiple political subdivisions (like cities or counties) join together to share potential financial risks and costs.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3983