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A BILL TO BE ENTITLED
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AN ACT
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relating to bids or proposals required for insurance and risk pool |
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contracts entered into by a school district, municipality, or |
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county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 44, Education Code, is |
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amended by adding Section 44.0315 to read as follows: |
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Sec. 44.0315. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR |
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RISK POOL CONTRACTS. (a) Except as provided by Subsection (b), and |
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regardless of whether the contract is subject to competitive |
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bidding requirements, a school district may not enter into an |
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insurance or risk pool contract unless: |
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(1) the school district receives at least two bids or |
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proposals from different persons for the contract; and |
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(2) the school district files the contract with the |
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Texas Department of Insurance. |
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(b) Subsection (a) does not apply to an insurance or risk |
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pool contract if only one source is available for the type of |
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coverage in the contract. |
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SECTION 2. Subchapter B, Chapter 252, Local Government |
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Code, is amended by adding Section 252.025 to read as follows: |
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Sec. 252.025. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR |
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RISK POOL CONTRACTS. Except as provided by Section 252.022(a)(7), |
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and regardless of whether the contract is subject to competitive |
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bidding requirements, a municipality may not enter into an |
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insurance or risk pool contract unless: |
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(1) the municipality receives at least two bids or |
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proposals from different persons for the contract; and |
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(2) the municipality files the contract with the Texas |
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Department of Insurance. |
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SECTION 3. Subchapter C, Chapter 262, Local Government |
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Code, is amended by adding Section 262.0232 to read as follows: |
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Sec. 262.0232. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR |
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RISK POOL CONTRACTS. (a) Except as provided by Subsection (b), and |
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regardless of whether the contract is subject to competitive |
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bidding requirements, a county may not enter into an insurance or |
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risk pool contract unless: |
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(1) the county receives at least two bids or proposals |
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from different persons for the contract; and |
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(2) the county files the contract with the Texas |
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Department of Insurance. |
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(b) Subsection (a) does not apply to an insurance or risk |
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pool contract if only one source is available for the type of |
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coverage in the contract. |
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SECTION 4. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2023. |