Bill Text: TX HB3924 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to health benefits offered by certain nonprofit agricultural organizations.
Spectrum: Slight Partisan Bill (Republican 26-9)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB3924 Detail]
Download: Texas-2021-HB3924-Introduced.html
Bill Title: Relating to health benefits offered by certain nonprofit agricultural organizations.
Spectrum: Slight Partisan Bill (Republican 26-9)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB3924 Detail]
Download: Texas-2021-HB3924-Introduced.html
By: Oliverson | H.B. No. 3924 |
|
||
|
||
relating to the operation of and coverage by a nonprofit | ||
agricultural organization. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 8, Insurance Code, is amended by adding | ||
Subtitle N to read as follows: | ||
SUBTITLE N. NONPROFIT AGRICULTURAL ORGANIZATION COVERAGE | ||
CHAPTER 1699. NONPROFIT AGRICULTURAL ORGANIZATION COVERAGE | ||
Sec. 1699.001. DEFINITION OF NONPROFIT AGRICULTURAL | ||
ORGANIZATION. As used in this chapter, "nonprofit agricultural | ||
organization" means an organization: | ||
(1) that is tax-exempt under Internal Revenue Code | ||
under Section 501(c) (5) | ||
(2) that is domiciled in Texas; | ||
(3) that was in existence before 1940; | ||
(4) the members of which include residents of at least | ||
98% of the counties in Texas; | ||
(5) that collects annual dues from its members; and | ||
(6) that was created to promote and develop the most | ||
profitable and desirable system of agriculture and the most | ||
wholesome and satisfactory conditions of rural life in accordance | ||
with its Articles of Incorporation and Bylaws. | ||
Sec. 1699.002 NONPROFIT AGRICULTURAL ORGANIZATION | ||
COVERAGE. As used in this chapter, "nonprofit agricultural | ||
organization coverage" means health benefit coverage provided | ||
under this chapter that is: (1) sponsored by: (a) a nonprofit | ||
agricultural organization; or (b) an affiliate of a nonprofit | ||
agricultural organization (2) offered only to: (a) members of the | ||
nonprofit agricultural organization; and (b) families of the | ||
members of the nonprofit agricultural organization; (3) deemed by | ||
the nonprofit agricultural organization to be important in | ||
assisting its members to live long and productive lives (4) not | ||
considered insurance under this title or any other provision of | ||
Texas law; and (5) not subject to the regulatory authority of the | ||
department of insurance under this title or any other provision of | ||
Texas law. | ||
1699.003 ACKNOWLDEGEMENT. | ||
(a) An individual applying for nonprofit agricultural | ||
organization coverage under this chapter shall be notified by the | ||
nonprofit agricultural organization and must acknowledge that the | ||
nonprofit agricultural organization coverage:(1) is not considered | ||
insurance; and (2) is not subject to the administrative rules of the | ||
Texas Department of Insurance. | ||
(b) The acknowledgement required by subsection (a) must be | ||
in writing and signed by the individual. The nonprofit agricultural | ||
organization shall: (1) keep a copy of the written acknowledgement | ||
for the duration of the contract under which the individual is | ||
provided coverage under this chapter; and (2) provide a copy of the | ||
acknowledgment to the individual at the individual's request. | ||
Sec. 1681.004. EXEMPTION. Notwithstanding any other | ||
provision of this code, a nonprofit agricultural organization that | ||
acts in accordance with this chapter is not considered to be | ||
engaging in the business of insurance. | ||
SECTION 2. This Act takes effect January 1, 2022. |