78R14530 PB-D


By:  Gallego                                                      H.B. No. 3266

Substitute the following for H.B. No. 3266:                                   

By:  Elkins                                                   C.S.H.B. No. 3266



A BILL TO BE ENTITLED

AN ACT

relating to the group purchase of workers' compensation insurance.            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 5.57A(a)(3), Insurance Code, is amended 
to read as follows:
		(3)  "Group" means two or more business entities, or 
the members of a trade association of business entities, that join 
together with the approval of the commissioner [Board] to purchase 
individual workers' compensation insurance policies covering each 
business entity that is a part of the group.
	SECTION 2.  Articles 5.57A(b) and (c), Insurance Code, are 
amended to read as follows:
	(b)  On receiving approval of the commissioner [Board] as 
provided by this article, two or more business entities or the 
members of a trade association of business entities may join 
together to form a group to purchase individual workers' 
compensation insurance policies covering each member of the group.
	(c)  To be eligible to join a group, a business entity must:            
		(1)  be engaged in a business pursuit that is the same 
as or similar to the other business entities participating in the 
group, as determined by the commissioner; or
		(2)  be a member of a trade association of business 
entities [Board].
	SECTION 3.  Article 5.57A, Insurance Code, as amended by 
this Act, applies only to an insurance policy delivered, issued for 
delivery, or renewed on or after January 1, 2004.  A policy 
delivered, issued for delivery, or renewed before January 1, 2004, 
is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.
	SECTION 4.  This Act takes effect September 1, 2003.