87R3052 SCL-D
By: Middleton H.B. No. 1649
A BILL TO BE ENTITLED
AN ACT
relating to bids or proposals required for insurance and risk pool
contracts entered into by a school district, municipality, or
county.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 44, Education Code, is
amended by adding Section 44.0315 to read as follows:
Sec. 44.0315. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR
RISK POOL CONTRACTS. (a) Except as provided by Subsection (b), and
regardless of whether the contract is subject to competitive
bidding requirements, a school district may not enter into an
insurance or risk pool contract unless:
(1) the school district receives at least two bids or
proposals from different persons for the contract; and
(2) the school district files the contract with the
Texas Department of Insurance.
(b) Subsection (a) does not apply to an insurance or risk
pool contract if only one source is available for the type of
coverage in the contract.
SECTION 2. Subchapter B, Chapter 252, Local Government
Code, is amended by adding Section 252.025 to read as follows:
Sec. 252.025. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR
RISK POOL CONTRACTS. Except as provided by Section 252.022(a)(7),
and regardless of whether the contract is subject to competitive
bidding requirements, a municipality may not enter into an
insurance or risk pool contract unless:
(1) the municipality receives at least two bids or
proposals from different persons for the contract; and
(2) the municipality files the contract with the Texas
Department of Insurance.
SECTION 3. Subchapter C, Chapter 262, Local Government
Code, is amended by adding Section 262.0232 to read as follows:
Sec. 262.0232. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR
RISK POOL CONTRACTS. (a) Except as provided by Subsection (b), and
regardless of whether the contract is subject to competitive
bidding requirements, a county may not enter into an insurance or
risk pool contract unless:
(1) the county receives at least two bids or proposals
from different persons for the contract; and
(2) the county files the contract with the Texas
Department of Insurance.
(b) Subsection (a) does not apply to an insurance or risk
pool contract if only one source is available for the type of
coverage in the contract.
SECTION 4. The changes in law made by this Act apply only to
a contract entered into on or after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2021.