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.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  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 [HEALTH CARE SHARING MINISTRIES]
         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.
 
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