1-1                                   AN ACT
 1-2     relating to waiver of certain requirements for insurers who
 1-3     contract with municipalities of this state.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 2, Article 21.49-16, Insurance Code, is
 1-6     amended to read as follows:
 1-7           Sec. 2.  REQUIREMENTS; EXCEPTION. (a)  Except as provided by
 1-8     Subsection (c) of this section, an [An] insurer who bids on a
 1-9     contract subject to the competitive bidding and competitive
1-10     proposal requirements adopted under Section 252.021, Local
1-11     Government Code, may not submit a bid for a contract to provide
1-12     stop-loss or other insurance coverage that is subject to any
1-13     qualification imposed by the insurer that permits the insurer to
1-14     modify or limit the terms of insurance coverage to be provided
1-15     after the contract has been made.  An insurer's bid submitted under
1-16     Section 252.021, Local Government Code, must contain the entire
1-17     offer made by the insurer.
1-18           (b)  Except as provided by Subsection (c) of this section, an
1-19     [An] insurer who provides stop-loss or other insurance coverage for
1-20     health benefits under a contract subject to this article may not,
1-21     based on an individual's prior medical history, exclude an
1-22     individual who is otherwise eligible for the health benefits
1-23     coverage from coverage or assign a higher deductible to the
1-24     individual.
 2-1           (c)  By executing a written waiver in favor of the insurer, a
 2-2     municipality may waive the requirements of:
 2-3                 (1)  Subsection (a) of this section; or
 2-4                 (2)  Subsection (b) of this section regarding the
 2-5     assignment of a higher deductible to the individual.
 2-6           SECTION 2.  Section 2, Article 21.49-16, Insurance Code, as
 2-7     amended by this Act, applies only to a contract entered into on or
 2-8     after the effective date of this Act. A contract entered into
 2-9     before that date is governed by the law as it existed immediately
2-10     before the effective date of this Act, and that law is continued in
2-11     effect for that purpose.
2-12           SECTION 3. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1466 was passed by the House on April
         5, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1466 on May 15, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1466 was passed by the Senate, with
         amendments, on May 10, 2001, by the following vote:  Yeas 29, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor