By Maxey                                              H.B. No. 1466
         77R6073 PB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to waiver of certain requirements for insurers who
 1-3     contract with municipalities.
 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)  A municipality may waive the requirements of this
 2-2     section by executing a written waiver in favor of the insurer.
 2-3           SECTION 2. Article 21.49-16, Insurance Code, as amended by
 2-4     this Act, applies only to a contract entered into on or after the
 2-5     effective date of this Act.  A contract entered into before that
 2-6     date is governed by the law as it existed immediately before the
 2-7     effective date of this Act, and that law is continued in effect for
 2-8     that purpose.
 2-9           SECTION 3. This Act takes effect September 1, 2001.