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A BILL TO BE ENTITLED
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AN ACT
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relating to health benefits offered by certain nonprofit |
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agricultural organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subtitle K, Title 8, Insurance |
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Code, is amended to read as follows: |
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SUBTITLE K. CERTAIN BENEFITS AND ARRANGEMENTS THAT ARE NOT |
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INSURANCE [HEALTH CARE SHARING MINISTRIES] |
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SECTION 2. Subtitle K, Title 8, Insurance Code, is amended |
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by adding Chapter 1682 to read as follows: |
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CHAPTER 1682. HEALTH BENEFITS PROVIDED BY CERTAIN NONPROFIT |
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AGRICULTURAL ORGANIZATIONS |
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Sec. 1682.001. DEFINITIONS. In this chapter: |
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(1) "Nonprofit agricultural organization" means an |
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organization that: |
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(A) is exempt from taxation under Section 501(a), |
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Internal Revenue Code of 1986, as an organization described by |
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Section 501(c)(5) of that code; |
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(B) is domiciled in this state; |
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(C) was in existence prior to 1940; |
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(D) is composed of members who are residents of |
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at least 98 percent of the counties in this state; |
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(E) collects annual dues from its members; and |
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(F) was created to promote and develop the most |
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profitable and desirable system of agriculture and the most |
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wholesome and satisfactory conditions of rural life in accordance |
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with its articles of organization and bylaws. |
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(2) "Nonprofit agricultural organization health |
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benefits" means health benefits: |
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(A) sponsored by a nonprofit agricultural |
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organization or an affiliate of the organization; |
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(B) offered only to: |
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(i) members of the nonprofit agricultural |
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organization; and |
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(ii) family members of members of the |
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nonprofit agricultural organization; |
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(C) that are not provided through an insurance |
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policy or other product the offering or issuance of which |
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constitutes the business of insurance in this state; and |
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(D) that are deemed by the nonprofit agricultural |
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organization to be important in assisting its members to live long |
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and productive lives. |
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Sec. 1682.002. NONPROFIT AGRICULTURAL ORGANIZATION HEALTH |
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BENEFITS AUTHORIZED. A nonprofit agricultural organization or an |
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affiliate of the organization may offer in this state nonprofit |
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agricultural organization health benefits. |
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Sec. 1682.003. REQUIRED DISCLOSURE BY NONPROFIT |
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AGRICULTURAL ORGANIZATION. (a) A nonprofit agricultural |
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organization that offers nonprofit agricultural organization |
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health benefits must provide to an individual applying for |
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nonprofit agricultural organization health benefits written notice |
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that the benefits are not provided through an insurance policy or |
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other product the offering or issuance of which is regulated as the |
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business of insurance in this state. |
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(b) An individual must sign and return to the nonprofit |
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agricultural organization the notice described by Subsection (a) |
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before the individual may enroll in nonprofit agricultural |
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organization health benefits. The nonprofit agricultural |
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organization must: |
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(1) maintain a copy of the signed written notice for |
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the duration of the term during which the nonprofit agricultural |
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organization health benefits are provided to the individual; and |
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(2) at the request of the individual, provide a copy of |
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the written notice to the individual. |
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Sec. 1682.004. NONPROFIT AGRICULTURAL ORGANIZATION NOT |
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ENGAGED IN BUSINESS OF INSURANCE. Notwithstanding any other |
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provision of this code, for the purposes of offering nonprofit |
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agricultural organization health benefits, a nonprofit |
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agricultural organization that acts in accordance with this chapter |
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is not an insurer and is not engaging in the business of insurance |
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in this state. |
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Sec. 1682.005. RISK TRANSFER OR COVERAGE. A nonprofit |
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agricultural organization that offers nonprofit agricultural |
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organization health benefits under this chapter may contract with a |
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company authorized to engage in the business of insurance in this |
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state that is not under common control with the nonprofit |
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agricultural organization to: |
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(1) transfer to that company all or a portion of the |
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organization's risks arising from nonprofit agricultural |
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organization health benefits offered under this chapter; or |
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(2) obtain insurance coverage from the company |
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guarantying the nonprofit agricultural organization's obligations |
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arising from nonprofit agricultural organization health benefits |
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offered under this chapter. |
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SECTION 3. This Act takes effect September 1, 2021. |