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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of certain insurance regulations to |
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certain small employer health reimbursement arrangements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1501.003, Insurance Code, is amended to |
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read as follows: |
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Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH |
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BENEFIT PLANS; EXCEPTION. (a) Except as provided by Subsection |
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(b), an [An] individual or group health benefit plan is a small |
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employer health benefit plan subject to Subchapters C-H if it |
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provides health care benefits covering two or more employees of a |
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small employer and: |
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(1) the employer pays a portion of the premium or |
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benefits; |
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(2) the employer or a covered individual treats the |
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health benefit plan as part of a plan or program for purposes of |
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Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section |
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106 or 162); or |
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(3) the health benefit plan is an employee welfare |
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benefit plan under 29 C.F.R. Section 2510.3-1(j). |
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(b) This chapter does not apply to a qualified small |
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employer health reimbursement arrangement as defined by 26 U.S.C. |
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Section 9831(d)(2). |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |