1-1     By:  Maxey (Senate Sponsor - Cain)                    H.B. No. 1466
 1-2           (In the Senate - Received from the House April 9, 2001;
 1-3     April 9, 2001, read first time and referred to Committee on
 1-4     Business and Commerce; May 3, 2001, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 5, Nays
 1-6     0; May 3, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1466                 By:  Jackson
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to waiver of certain requirements for insurers who
1-11     contract with municipalities of this state.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Section 2, Article 21.49-16, Insurance Code, is
1-14     amended to read as follows:
1-15           Sec. 2.  REQUIREMENTS; EXCEPTION. (a)  Except as provided by
1-16     Subsection (c) of this section, an [An] insurer who bids on a
1-17     contract subject to the competitive bidding and competitive
1-18     proposal requirements adopted under Section 252.021, Local
1-19     Government Code, may not submit a bid for a contract to provide
1-20     stop-loss or other insurance coverage that is subject to any
1-21     qualification imposed by the insurer that permits the insurer to
1-22     modify or limit the terms of insurance coverage to be provided
1-23     after the contract has been made.  An insurer's bid submitted under
1-24     Section 252.021, Local Government Code, must contain the entire
1-25     offer made by the insurer.
1-26           (b)  Except as provided by Subsection (c) of this section, an
1-27     [An] insurer who provides stop-loss or other insurance coverage for
1-28     health benefits under a contract subject to this article may not,
1-29     based on an individual's prior medical history, exclude an
1-30     individual who is otherwise eligible for the health benefits
1-31     coverage from coverage or assign a higher deductible to the
1-32     individual.
1-33           (c)  By executing a written waiver in favor of the insurer, a
1-34     municipality may waive the requirements of:
1-35                 (1)  Subsection (a) of this section; or
1-36                 (2)  Subsection (b) of this section regarding the
1-37     assignment of a higher deductible to the individual.
1-38           SECTION 2.  Section 2, Article 21.49-16, Insurance Code, as
1-39     amended by this Act, applies only to a contract entered into on or
1-40     after the effective date of this Act. A contract entered into
1-41     before that date is governed by the law as it existed immediately
1-42     before the effective date of this Act, and that law is continued in
1-43     effect for that purpose.
1-44           SECTION 3. This Act takes effect September 1, 2001.
1-45                                  * * * * *