Bill Text: TX HB3924 | 2021-2022 | 87th Legislature | Comm Sub
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-Comm_Sub.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-Comm_Sub.html
By: Oliverson, et al. (Senate Sponsor - Springer) | H.B. No. 3924 | |
(In the Senate - Received from the House May 5, 2021; | ||
May 10, 2021, read first time and referred to Committee on Business & | ||
Commerce; May 13, 2021, reported favorably by the following vote: | ||
Yeas 5, Nays 3; May 13, 2021, sent to printer.) | ||
|
||
|
||
relating to health benefits offered by certain nonprofit | ||
agricultural organizations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Subtitle K, Title 8, Insurance | ||
Code, is amended to read as follows: | ||
SUBTITLE K. CERTAIN BENEFITS AND ARRANGEMENTS THAT ARE NOT | ||
INSURANCE [ |
||
SECTION 2. Subtitle K, Title 8, Insurance Code, is amended | ||
by adding Chapter 1682 to read as follows: | ||
CHAPTER 1682. HEALTH BENEFITS PROVIDED BY CERTAIN NONPROFIT | ||
AGRICULTURAL ORGANIZATIONS | ||
Sec. 1682.001. DEFINITIONS. In this chapter: | ||
(1) "Nonprofit agricultural organization" means an | ||
organization that: | ||
(A) is exempt from taxation under Section 501(a), | ||
Internal Revenue Code of 1986, as an organization described by | ||
Section 501(c)(5) of that code; | ||
(B) is domiciled in this state; | ||
(C) was in existence prior to 1940; | ||
(D) is composed of members who are residents of | ||
at least 98 percent of the counties in this state; | ||
(E) collects annual dues from its members; and | ||
(F) 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 organization and bylaws. | ||
(2) "Nonprofit agricultural organization health | ||
benefits" means health benefits: | ||
(A) sponsored by a nonprofit agricultural | ||
organization or an affiliate of the organization; | ||
(B) offered only to: | ||
(i) members of the nonprofit agricultural | ||
organization; and | ||
(ii) family members of members of the | ||
nonprofit agricultural organization; | ||
(C) that are not provided through an insurance | ||
policy or other product the offering or issuance of which | ||
constitutes the business of insurance in this state; and | ||
(D) that are deemed by the nonprofit agricultural | ||
organization to be important in assisting its members to live long | ||
and productive lives. | ||
(3) "Preexisting condition" means a condition present | ||
before the effective date of an individual's enrollment in | ||
nonprofit agricultural organization health benefits. | ||
Sec. 1682.002. NONPROFIT AGRICULTURAL ORGANIZATION HEALTH | ||
BENEFITS AUTHORIZED. A nonprofit agricultural organization or an | ||
affiliate of the organization may offer in this state nonprofit | ||
agricultural organization health benefits. | ||
Sec. 1682.003. WAITING PERIOD FOR PREEXISTING CONDITION. | ||
Notwithstanding any other provision of this chapter, a nonprofit | ||
agricultural organization that offers nonprofit agricultural | ||
organization health benefits may not require a waiting period of | ||
more than six months for treatment of a preexisting condition | ||
otherwise included in nonprofit agricultural organization health | ||
benefits. | ||
Sec. 1682.004. REQUIRED DISCLOSURE BY NONPROFIT | ||
AGRICULTURAL ORGANIZATION. (a) A nonprofit agricultural | ||
organization that offers nonprofit agricultural organization | ||
health benefits must provide to an individual applying for | ||
nonprofit agricultural organization health benefits written notice | ||
that the benefits are not provided through an insurance policy or | ||
other product the offering or issuance of which is regulated as the | ||
business of insurance in this state. | ||
(b) An individual must sign and return to the nonprofit | ||
agricultural organization the notice described by Subsection (a) | ||
before the individual may enroll in nonprofit agricultural | ||
organization health benefits. The nonprofit agricultural | ||
organization must: | ||
(1) maintain a copy of the signed written notice for | ||
the duration of the term during which the nonprofit agricultural | ||
organization health benefits are provided to the individual; and | ||
(2) at the request of the individual, provide a copy of | ||
the written notice to the individual. | ||
Sec. 1682.005. NONPROFIT AGRICULTURAL ORGANIZATION NOT | ||
ENGAGED IN BUSINESS OF INSURANCE. Notwithstanding any other | ||
provision of this code, for the purposes of offering nonprofit | ||
agricultural organization health benefits, a nonprofit | ||
agricultural organization that acts in accordance with this chapter | ||
is not an insurer and is not engaging in the business of insurance | ||
in this state. | ||
Sec. 1682.006. RISK TRANSFER OR COVERAGE. A nonprofit | ||
agricultural organization that offers nonprofit agricultural | ||
organization health benefits under this chapter may contract with a | ||
company authorized to engage in the business of insurance in this | ||
state that is not under common control with the nonprofit | ||
agricultural organization to: | ||
(1) transfer to that company all or a portion of the | ||
organization's risks arising from nonprofit agricultural | ||
organization health benefits offered under this chapter; or | ||
(2) obtain insurance coverage from the company | ||
guarantying the nonprofit agricultural organization's obligations | ||
arising from nonprofit agricultural organization health benefits | ||
offered under this chapter. | ||
Sec. 1682.007. APPLICABILITY OF CERTAIN LAWS TO NONPROFIT | ||
AGRICULTURAL ORGANIZATION HEALTH BENEFITS. Notwithstanding | ||
Section 1682.004, a nonprofit agricultural organization that | ||
offers nonprofit agricultural organization health benefits that | ||
are determined by the commissioner to be structured in the manner of | ||
a preferred provider benefit plan or an exclusive provider benefit | ||
plan, as those terms are defined by Section 1301.001, is subject to | ||
the following laws and rules as if the nonprofit agricultural | ||
organization were an insurer, individuals entitled to nonprofit | ||
agricultural organization health benefits were insureds, and the | ||
nonprofit agricultural organization health benefits were provided | ||
through an insurance policy subject to Chapter 1301: | ||
(1) Section 1301.005; | ||
(2) Section 1301.0053; | ||
(3) Section 1301.0055; | ||
(4) Section 1301.006; | ||
(5) Section 1301.010; | ||
(6) Section 1301.155; | ||
(7) Section 1301.164; | ||
(8) Section 1301.165; | ||
(9) Chapter 1467; and | ||
(10) 28 T.A.C. Chapter 3, Subchapter X. | ||
SECTION 3. This Act takes effect September 1, 2021. | ||
* * * * * |