By Averitt                                            H.B. No. 1431
         76R6266 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to payment of an administering insurer or third party
 1-3     administrator by the Texas Health Insurance Risk Pool.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 7(f), Article 3.77, Insurance Code, is
 1-6     amended to read as follows:
 1-7           (f)  The pool shall pay an administering insurer or third
 1-8     party administrator for its expenses incurred in performing its
 1-9     duties and functions as provided by the plan of operation.  Except
1-10     as otherwise provided by this subsection, the [The] total amount of
1-11     administrative costs and fees paid in a calendar year to all
1-12     administering insurers or a third party administrator may not
1-13     exceed 12.5 percent of the gross premium receipts of the pool for
1-14     the [preceding] calendar year.  The commissioner may approve
1-15     payment of a higher amount, not to exceed 15 percent of the gross
1-16     premium receipts of the pool for the calendar year, if the
1-17     commissioner determines that the higher amount is necessary to pay
1-18     the administrative costs and fees of the pool.
1-19           SECTION 2.  This Act applies to payment made to all insurers
1-20     or third party administrators for administration of the Texas
1-21     Health Insurance Risk Pool for the 1999 calendar year or a
1-22     subsequent year.
1-23           SECTION 3.  The importance of this legislation and the
1-24     crowded condition of the calendars in both houses create an
 2-1     emergency and an imperative public necessity that the
 2-2     constitutional rule requiring bills to be read on three several
 2-3     days in each house be suspended, and this rule is hereby suspended,
 2-4     and that this Act take effect and be in force from and after its
 2-5     passage, and it is so enacted.