S.B. No. 1367
 
 
 
 
AN ACT
  relating to abolishing the Texas Health Insurance Pool.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  DEFINITIONS. In this Act:
               (1)  "Board" means the board of directors of the pool.
               (2)  "Commissioner" means the commissioner of
  insurance.
               (3)  "Department" means the Texas Department of
  Insurance.
               (4)  "Health benefit exchange" has the meaning assigned
  by Section 1369.201, Insurance Code.
               (5)  "Pool" means the Texas Health Insurance Pool
  established under Chapter 1506, Insurance Code, as that chapter
  existed before its repeal by this Act.
         SECTION 2.  PLAN FOR DISSOLUTION. As soon as practicable
  after the effective date of this Act, the board shall:
               (1)  develop a plan for:
                     (A)  dissolving the board and the pool after the
  pool's obligations to issue and continue health benefit coverage
  terminate under Sections 3 and 4 of this Act; and
                     (B)  transferring to the commissioner and the
  department:
                           (i)  any continuing obligations of the board
  and the pool;
                           (ii)  any assets of the pool;
                           (iii)  any rights of the board or the pool
  that accrued before the dissolution of the board or the pool or that
  accrue with respect to coverage issued by the pool before the pool's
  dissolution; and
                           (iv)  any authority previously held by the
  board the continuation of which is necessary or appropriate; and
               (2)  submit the plan to the commissioner for the
  commissioner's approval.
         SECTION 3.  ACCEPTANCE OF ENROLLEES. The latest date on
  which the pool may issue health benefit coverage is the later of:
               (1)  December 31, 2013; or
               (2)  the earliest date on which health benefit coverage
  is reasonably available on a guaranteed issue basis to each class of
  individuals eligible for health benefit coverage through the pool
  immediately before the effective date of this Act, as determined by
  the commissioner.
         SECTION 4.  TERMINATION OF POOL COVERAGE. Health benefit
  coverage that is issued to an individual by the pool and that is
  otherwise in force terminates on the later of:
               (1)  January 1, 2014; or
               (2)  the earliest date on which the individual:
                     (A)  is enrolled in comparable health benefit
  coverage; or
                     (B)  could reasonably be expected to have obtained
  health benefit coverage on a guaranteed issue basis, as determined
  by the commissioner.
         SECTION 5.  EXERCISE OF POOL'S RECOVERY RIGHTS.  The
  department may exercise any authority to recover overpayments or
  other amounts the pool would have been authorized to recover or
  collect had the pool not been dissolved, including amounts
  recoverable under the pool's subrogation rights.
         SECTION 6.  TRANSFER OF CERTAIN FUNDS; ASSESSMENT AUTHORITY
  CONTINUED. (a)  Any fund in which money belonging to the pool is
  kept and any other assets of the pool shall be transferred to the
  department on dissolution of the pool. That money and any other
  money recovered or otherwise collected by the department under this
  Act on behalf of the pool shall be used by the department to satisfy
  obligations of the pool in accordance with this Act, Chapter 1506,
  Insurance Code, as that chapter existed before its repeal by this
  Act, and the dissolution plan.
         (b)  The authority of the board to make assessments under
  Subchapter F, Chapter 1506, Insurance Code, as that subchapter
  existed before its repeal by this Act, is continued and may be
  exercised by the commissioner until the commissioner determines
  that all financial obligations of the board and the pool have been
  satisfied.
         (c)  Money collected by the department under Subsections (a)
  and (b) of this section shall be deposited to an account in the
  Texas Treasury Safekeeping Trust Company to be used for the
  purposes described by this Act. The money deposited to the account
  may be used to pay fees for the Texas Treasury Safekeeping Trust
  Company account. The department may transfer money into the
  treasury local operating fund to disburse the money as required by
  this Act.
         (d)  When the commissioner determines that all financial
  obligations of the board and the pool have been satisfied, the
  commissioner shall make a final accounting with respect to pool
  finances and:
               (1)  make any necessary final assessment under this
  section; or
               (2)  refund any surplus assessments or other surplus
  money collected on behalf of the pool, other than money described by
  Subsection (e) of this section:
                     (A)  on a pro rata basis to the health benefit plan
  issuers that paid the assessments to the extent possible; or
                     (B)  on another equitable basis to the extent pro
  rata refunds are not possible.
         (e)  If money paid or payable under Subsection (m), Section
  843.342 and Subsection (l), Section 1301.137, Insurance Code, is no
  longer necessary to finance premium discounts as prescribed by
  Section 1506.260, Insurance Code, as that section existed
  immediately before the effective date of this Act, the money shall
  be distributed and used as follows:
               (1)  $5 million shall be distributed to the corporation
  established under Chapter 182, Health and Safety Code, to be used
  for a purpose provided by that chapter; and
               (2)  any money available after the amount required by
  Subdivision (1) of this subsection has been distributed in
  accordance with that subdivision shall be distributed to the fund
  established under Subchapter F, Chapter 1508, Insurance Code, to be
  used:
                     (A)  before January 1, 2014, for a purpose
  provided by that subchapter; and
                     (B)  on and after January 1, 2014, for any other
  purpose authorized by the commissioner by rule to improve access to
  health benefit coverage for individuals without coverage.
         (f)  Money paid or payable under Subsection (m), Section
  843.342 and Subsection (l), Section 1301.137, Insurance Code, is
  subject to audit by the State Auditor's Office.
         SECTION 7.  DELAYED IMPLEMENTATION. The commissioner by
  rule may delay the implementation of any part of Sections 1 through
  6 of this Act or the pool dissolution plan established under this
  Act if:
               (1)  the guaranteed issue of health benefit coverage is
  delayed;
               (2)  the operation of a health benefit exchange in this
  state is delayed; or
               (3)  the commissioner determines that health benefit
  coverage expected to be available on a guaranteed issue basis to a
  class of individuals eligible for coverage under Chapter 1506,
  Insurance Code, immediately before the effective date of this Act,
  is not reasonably available to those individuals in this state.
         SECTION 8.  REPEALER. (a)  Effective January 1, 2014, the
  following laws are repealed:
               (1)  Subsections (a-1) and (a-2), Section 1506.007,
  Insurance Code;
               (2)  Subsections (b) and (c), Section 1506.205,
  Insurance Code;
               (3)  Subsection (b), Section 1251.255, Insurance Code;
  and
               (4)  Section 1271.305, Insurance Code.
         (b)  Effective September 1, 2015, Chapter 1506, Insurance
  Code, is repealed.
         SECTION 9.  EFFECTIVE DATE. This Act takes effect
  immediately if it receives a vote of two-thirds of all the members
  elected to each house, as provided by Section 39, Article III, Texas
  Constitution. If this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1367 passed the Senate on
  April 9, 2013, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 21, 2013, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1367 passed the House, with
  amendment, on May 16, 2013, by the following vote: Yeas 126,
  Nays 1, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor