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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a risk management pool to provide |
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insurance coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 412, Labor Code is amended by adding |
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Subchapter G, Section 412.055 and Section 412.056 to read as |
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follows: |
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Subchapter G: RISK MANAGEMENT POOL |
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Sec. 412.055. DEFINITIONS. In this chapter: |
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(1) "Pool" means a self-insured retention fund established |
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under Section 412.056. |
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Sec. 412.056. CREATION OF A RISK MANAGEMENT POOL |
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a. The Board may authorize the creation of a risk management |
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pool for the purpose of providing insurance to state agencies and |
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institutions of higher education. |
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b. The Office shall be the administrator of the risk |
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management pool. |
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c. The risk management pool shall be considered a sponsored |
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policy, as defined in Administrative Code, Chapter 252, Subchapter |
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C, Rule 252.301. |
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SECTION 2. Sec. 412.057. PARTICIPATION IN POOL. (a) An |
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agency subject to Labor Code, Chapter 501, except for an intuition |
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subject to Chapter 501.022, that meets the criteria established by |
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the risk management pool may: |
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(1) purchase coverage from the pool; and |
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(2) use funds appropriated by the legislature to pay all |
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necessary costs associated with participation in the pool. |
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SECTION 3. The change in law made by this Act applies only |
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to a risk management pool established by the Board of the State |
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Office of Risk Management on or after the effective date of this |
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Act. A risk management pool created before the effective date of |
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this Act is governed by the law in effect on the date the award was |
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made, and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |