| 1 | 1 | | 87R3052 SCL-D |
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| 2 | 2 | | By: Middleton H.B. No. 1649 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to bids or proposals required for insurance and risk pool |
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| 8 | 8 | | contracts entered into by a school district, municipality, or |
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| 9 | 9 | | county. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter B, Chapter 44, Education Code, is |
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| 12 | 12 | | amended by adding Section 44.0315 to read as follows: |
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| 13 | 13 | | Sec. 44.0315. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR |
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| 14 | 14 | | RISK POOL CONTRACTS. (a) Except as provided by Subsection (b), and |
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| 15 | 15 | | regardless of whether the contract is subject to competitive |
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| 16 | 16 | | bidding requirements, a school district may not enter into an |
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| 17 | 17 | | insurance or risk pool contract unless: |
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| 18 | 18 | | (1) the school district receives at least two bids or |
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| 19 | 19 | | proposals from different persons for the contract; and |
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| 20 | 20 | | (2) the school district files the contract with the |
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| 21 | 21 | | Texas Department of Insurance. |
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| 22 | 22 | | (b) Subsection (a) does not apply to an insurance or risk |
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| 23 | 23 | | pool contract if only one source is available for the type of |
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| 24 | 24 | | coverage in the contract. |
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| 25 | 25 | | SECTION 2. Subchapter B, Chapter 252, Local Government |
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| 26 | 26 | | Code, is amended by adding Section 252.025 to read as follows: |
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| 27 | 27 | | Sec. 252.025. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR |
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| 28 | 28 | | RISK POOL CONTRACTS. Except as provided by Section 252.022(a)(7), |
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| 29 | 29 | | and regardless of whether the contract is subject to competitive |
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| 30 | 30 | | bidding requirements, a municipality may not enter into an |
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| 31 | 31 | | insurance or risk pool contract unless: |
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| 32 | 32 | | (1) the municipality receives at least two bids or |
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| 33 | 33 | | proposals from different persons for the contract; and |
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| 34 | 34 | | (2) the municipality files the contract with the Texas |
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| 35 | 35 | | Department of Insurance. |
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| 36 | 36 | | SECTION 3. Subchapter C, Chapter 262, Local Government |
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| 37 | 37 | | Code, is amended by adding Section 262.0232 to read as follows: |
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| 38 | 38 | | Sec. 262.0232. BIDS OR PROPOSALS REQUIRED FOR INSURANCE OR |
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| 39 | 39 | | RISK POOL CONTRACTS. (a) Except as provided by Subsection (b), and |
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| 40 | 40 | | regardless of whether the contract is subject to competitive |
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| 41 | 41 | | bidding requirements, a county may not enter into an insurance or |
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| 42 | 42 | | risk pool contract unless: |
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| 43 | 43 | | (1) the county receives at least two bids or proposals |
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| 44 | 44 | | from different persons for the contract; and |
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| 45 | 45 | | (2) the county files the contract with the Texas |
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| 46 | 46 | | Department of Insurance. |
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| 47 | 47 | | (b) Subsection (a) does not apply to an insurance or risk |
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| 48 | 48 | | pool contract if only one source is available for the type of |
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| 49 | 49 | | coverage in the contract. |
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| 50 | 50 | | SECTION 4. The changes in law made by this Act apply only to |
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| 51 | 51 | | a contract entered into on or after the effective date of this Act. |
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| 52 | 52 | | SECTION 5. This Act takes effect September 1, 2021. |
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