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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of and coverage by a nonprofit |
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agricultural organization. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 8, Insurance Code, is amended by adding |
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Subtitle N to read as follows: |
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SUBTITLE N. NONPROFIT AGRICULTURAL ORGANIZATION COVERAGE |
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CHAPTER 1699. NONPROFIT AGRICULTURAL ORGANIZATION COVERAGE |
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Sec. 1699.001. DEFINITION OF NONPROFIT AGRICULTURAL |
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ORGANIZATION. As used in this chapter, "nonprofit agricultural |
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organization" means an organization: |
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(1) that is tax-exempt under Internal Revenue Code |
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under Section 501(c) (5) |
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(2) that is domiciled in Texas; |
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(3) that was in existence before 1940; |
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(4) the members of which include residents of at least |
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98% of the counties in Texas; |
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(5) that collects annual dues from its members; and |
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(6) that 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 Incorporation and Bylaws. |
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Sec. 1699.002 NONPROFIT AGRICULTURAL ORGANIZATION |
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COVERAGE. As used in this chapter, "nonprofit agricultural |
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organization coverage" means health benefit coverage provided |
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under this chapter that is: (1) sponsored by: (a) a nonprofit |
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agricultural organization; or (b) an affiliate of a nonprofit |
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agricultural organization (2) offered only to: (a) members of the |
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nonprofit agricultural organization; and (b) families of the |
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members of the nonprofit agricultural organization; (3) deemed by |
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the nonprofit agricultural organization to be important in |
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assisting its members to live long and productive lives (4) not |
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considered insurance under this title or any other provision of |
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Texas law; and (5) not subject to the regulatory authority of the |
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department of insurance under this title or any other provision of |
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Texas law. |
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1699.003 ACKNOWLDEGEMENT. |
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(a) An individual applying for nonprofit agricultural |
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organization coverage under this chapter shall be notified by the |
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nonprofit agricultural organization and must acknowledge that the |
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nonprofit agricultural organization coverage:(1) is not considered |
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insurance; and (2) is not subject to the administrative rules of the |
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Texas Department of Insurance. |
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(b) The acknowledgement required by subsection (a) must be |
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in writing and signed by the individual. The nonprofit agricultural |
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organization shall: (1) keep a copy of the written acknowledgement |
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for the duration of the contract under which the individual is |
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provided coverage under this chapter; and (2) provide a copy of the |
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acknowledgment to the individual at the individual's request. |
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Sec. 1681.004. EXEMPTION. Notwithstanding any other |
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provision of this code, a nonprofit agricultural organization that |
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acts in accordance with this chapter is not considered to be |
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engaging in the business of insurance. |
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SECTION 2. This Act takes effect January 1, 2022. |