SRC-HRD H.B. 2795 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2795
By: Averitt (Duncan)
Economic Development
5-14-97
Engrossed


DIGEST 

The legislature created the Texas Health Benefits Purchasing Cooperative
in 1993 to help small employers obtain health insurance coverage.  The
cooperative, which operates under the business name Texas Insurance
Purchasing Alliance, began statewide service in 1995 and now serves over
1,000 Texas employers.  The cooperative is governed by a six-member board
appointed by the governor.                                                 

This bill would make minor changes in the statute creating the cooperative
in order to streamline operations.                             
                                                                          
PURPOSE

As proposed, H.B. 2795 makes minor changes in the statute creating the
Texas Health Benefits Cooperative in order to streamline operations.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 26.11(4), Insurance Code, to redefine "Texas
cooperative." 

SECTION 2. Amends Article 26.13(a), Insurance Code, to provide that the
Texas Health Benefits Purchasing Cooperative (cooperative) is a nonprofit
corporation, rather than organization.  

SECTION 3. Amends Article 26.13(b), Insurance Code, to delete text
requiring the executive director of the Texas Department of Commerce to
serve as a nonvoting ex-officio member of the board of trustees of the
cooperative (board of trustees). 

SECTION 4. Amends Article 26.13(h), Insurance Code, to provide that the
Texas cooperative or a member of the board of trustees, the executive
director, or an employee or agent of the Texas cooperative is not liable
for certain actions. 

SECTION 5. Amends Article 26.15(a), Insurance Code, to authorize a
cooperative to offer such other ancillary products and services to its
members as are customarily offered in conjunction with health benefit
plans.   

SECTION 6. Amends Article 26.15(d), Insurance Code, to require a
cooperative to comply with federal laws applicable to cooperatives and
health benefit plans issued through cooperatives, to the extent required
by state law or rules adopted by the commissioner of insurance.  Requires
a cooperative to comply with state laws applicable to cooperatives and
health benefit plans issued through cooperatives. 

SECTION 7. Amends Article 26.16, Insurance Code, to provide that a
cooperative is considered an employer solely for the purposes of benefit
elections under the code.  Provides that a licensed agent used and
compensated by the cooperative need not be appointed by each small
employer carrier participating in the cooperative in order to market the
products and services sponsored by the  cooperative.  Prohibits a licensed
agent from marketing any other non-sponsored product or service of a
participating smaller employer carrier without first being appointed by
the small employer carrier. 

SECTION 8. Effective date: September 1, 1997.

SECTION 9. Emergency clause.