75R13680 CAG-D                           

         By Uher                                               H.B. No. 2097

         Substitute the following for H.B. No. 2097:

         By Van de Putte                                   C.S.H.B. No. 2097

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the operation of risk pools and self-insurance funds by

 1-3     political subdivisions to provide health and accident coverage.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 4, Chapter 1084, Acts of the 70th

 1-6     Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas

 1-7     Civil Statutes), is amended by adding Subsections (h) and (i) to

 1-8     read as follows:

 1-9           (h)  A change in coverage provided through a self-insurance

1-10     fund to a governmental unit under this Act may not take effect

1-11     until the 60th day after the date the governmental unit is notified

1-12     by certified mail of the change in coverage.  Cancellation of

1-13     coverage to a governmental unit as a result of nonpayment of the

1-14     coverage may take effect on the 10th day after the date the

1-15     governmental unit is notified by certified mail of the cancellation

1-16     of coverage.

1-17           (i)  An individual responsible for administration of a local

1-18     government risk pool:

1-19                 (1)  must hold a bachelor's degree in a field relating

1-20     to insurance, business management, law, or finance or hold the

1-21     professional designation of:

1-22                       (A)  Chartered Property Casualty Underwriter

1-23     granted by the American Institute for Property and Liability

1-24     Underwriters; or

 2-1                       (B)  Associate in Risk Management granted by the

 2-2     Insurance Institute of America;

 2-3                 (2)  must have at least five years experience in

 2-4     administration of risk pools, commercial insurance production, or

 2-5     management; and

 2-6                 (3)  during each calendar year, shall participate in a

 2-7     minimum of 20 hours of continuing education that:

 2-8                       (A)  is acceptable to the trustees of the risk

 2-9     pool; and

2-10                       (B)  relates to professional insurance, risk

2-11     management, or administration of risk pools.

2-12           SECTION 2.  This Act takes effect September 1, 1997.

2-13           SECTION 3.  The importance of this legislation and the

2-14     crowded condition of the calendars in both houses create an

2-15     emergency and an imperative public necessity that the

2-16     constitutional rule requiring bills to be read on three several

2-17     days in each house be suspended, and this rule is hereby suspended.