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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of certain groups or associations that |
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include self-employed individuals to participate in a multiple |
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employer welfare arrangement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 846.201, Insurance Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) Except as otherwise limited by the Employee Retirement |
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Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.), a |
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multiple employer welfare arrangement may only provide benefits to: |
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(1) active or retired owners, officers, directors, or |
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employees of or partners in: |
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(A) participating employers; or |
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(B) bona fide groups or associations of |
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employers; and |
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(2) the beneficiaries of a person described by |
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Subdivision (1). |
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(c) A group or association is considered a bona fide group |
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or association of employers for the purpose of this section if: |
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(1) the group or association has at least one |
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substantial business purpose unrelated to offering and providing |
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health coverage or other employee benefits to its employer-members |
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and their employees, including the purpose of promoting the common |
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business interests of its members or promoting the economic |
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interests of its members in a trade or employer opportunity, |
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regardless of whether the business purpose is a for-profit |
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activity; |
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(2) the group or association would be a viable entity |
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in the absence of sponsoring an employee benefit plan; |
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(3) each employer-member of the group or association |
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participating in the group health plan is a person acting directly |
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as an employer of at least one employee who is covered under the |
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plan, which may include a sole proprietor or principal of a business |
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entity and regardless of whether any other person is employed by the |
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sole proprietor or principal of a business entity; |
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(4) the group or association has a formal |
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organizational structure with a governing body and by-laws or other |
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similar indications of formality; |
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(5) the functions and activities of the group or |
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association are controlled by its employer-members, and the group's |
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or association's employer-members that participate in the group |
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health plan control the plan; and |
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(6) the employer-members have a commonality of |
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interest because the members: |
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(A) are in the same trade, industry, line or |
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business, or profession; or |
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(B) have a principal place of business in the |
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same region that does not extend beyond the boundaries of: |
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(i) a state; or |
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(ii) a metropolitan area regardless of |
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whether the metropolitan area includes more than one state. |
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SECTION 2. This Act takes effect September 1, 2021. |