| 1 | 1 | | By: Springer S.B. No. 1973 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to the operation of and coverage by a nonprofit |
|---|
| 7 | 7 | | agricultural organization. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Title 8, Insurance Code, is amended by adding |
|---|
| 10 | 10 | | Subtitle N to read as follows: |
|---|
| 11 | 11 | | SUBTITLE N. NONPROFIT AGRICULTURAL ORGANIZATION COVERAGE |
|---|
| 12 | 12 | | CHAPTER 1699. NONPROFIT AGRICULTURAL ORGANIZATION COVERAGE |
|---|
| 13 | 13 | | Sec. 1699.001. DEFINITION OF NONPROFIT AGRICULTURAL |
|---|
| 14 | 14 | | ORGANIZATION. As used in this chapter, "nonprofit agricultural |
|---|
| 15 | 15 | | organization" means an organization: |
|---|
| 16 | 16 | | (1) that is tax-exempt under Internal Revenue Code |
|---|
| 17 | 17 | | under Section 501(c) (5) |
|---|
| 18 | 18 | | (2) that is domiciled in Texas; |
|---|
| 19 | 19 | | (3) that was in existence before 1940; |
|---|
| 20 | 20 | | (4) the members of which include residents of at least |
|---|
| 21 | 21 | | 98% of the counties in Texas; |
|---|
| 22 | 22 | | (5) that collects annual dues from its members; and |
|---|
| 23 | 23 | | (6) that was created to promote and develop the most |
|---|
| 24 | 24 | | profitable and desirable system of agriculture and the most |
|---|
| 25 | 25 | | wholesome and satisfactory conditions of rural life in accordance |
|---|
| 26 | 26 | | with its Articles of Incorporation and Bylaws. |
|---|
| 27 | 27 | | Sec. 1699.002 NONPROFIT AGRICULTURAL ORGANIZATION |
|---|
| 28 | 28 | | COVERAGE. As used in this chapter, "nonprofit agricultural |
|---|
| 29 | 29 | | organization coverage" means health benefit coverage provided |
|---|
| 30 | 30 | | under this chapter that is: (1) sponsored by: (a) a nonprofit |
|---|
| 31 | 31 | | agricultural organization; or (b) an affiliate of a nonprofit |
|---|
| 32 | 32 | | agricultural organization (2) offered only to: (a) members of the |
|---|
| 33 | 33 | | nonprofit agricultural organization; and (b) families of the |
|---|
| 34 | 34 | | members of the nonprofit agricultural organization; (3) deemed by |
|---|
| 35 | 35 | | the nonprofit agricultural organization to be important in |
|---|
| 36 | 36 | | assisting its members to live long and productive lives (4) not |
|---|
| 37 | 37 | | considered insurance under this title or any other provision of |
|---|
| 38 | 38 | | Texas law; and (5) not subject to the regulatory authority of the |
|---|
| 39 | 39 | | department of insurance under this title or any other provision of |
|---|
| 40 | 40 | | Texas law. |
|---|
| 41 | 41 | | 1699.003 ACKNOWLDEGEMENT. |
|---|
| 42 | 42 | | (a) An individual applying for nonprofit agricultural |
|---|
| 43 | 43 | | organization coverage under this chapter shall be notified by the |
|---|
| 44 | 44 | | nonprofit agricultural organization and must acknowledge that the |
|---|
| 45 | 45 | | nonprofit agricultural organization coverage:(1) is not considered |
|---|
| 46 | 46 | | insurance; and (2) is not subject to the administrative rules of the |
|---|
| 47 | 47 | | Texas Department of Insurance. |
|---|
| 48 | 48 | | (b) The acknowledgement required by subsection (a) must be |
|---|
| 49 | 49 | | in writing and signed by the individual. The nonprofit agricultural |
|---|
| 50 | 50 | | organization shall: (1) keep a copy of the written acknowledgement |
|---|
| 51 | 51 | | for the duration of the contract under which the individual is |
|---|
| 52 | 52 | | provided coverage under this chapter; and (2) provide a copy of the |
|---|
| 53 | 53 | | acknowledgment to the individual at the individual's request. |
|---|
| 54 | 54 | | Sec. 1681.004. EXEMPTION. Notwithstanding any other |
|---|
| 55 | 55 | | provision of this code, a nonprofit agricultural organization that |
|---|
| 56 | 56 | | acts in accordance with this chapter is not considered to be |
|---|
| 57 | 57 | | engaging in the business of insurance. |
|---|
| 58 | 58 | | SECTION 2. This Act takes effect January 1, 2022. |
|---|