By: Bell of Montgomery H.B. No. 5317
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a risk management pool to provide
insurance coverage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 412, Labor Code is amended by adding
Subchapter G, Section 412.055 and Section 412.056 to read as
follows:
Subchapter G: RISK MANAGEMENT POOL
Sec. 412.055. DEFINITIONS. In this chapter:
(1) "Pool" means a self-insured retention fund established
under Section 412.056.
Sec. 412.056. CREATION OF A RISK MANAGEMENT POOL
a. The Board may authorize the creation of a risk management
pool for the purpose of providing insurance to state agencies and
institutions of higher education.
b. The Office shall be the administrator of the risk
management pool.
c. The risk management pool shall be considered a sponsored
policy, as defined in Administrative Code, Chapter 252, Subchapter
C, Rule 252.301.
SECTION 2. Sec. 412.057. PARTICIPATION IN POOL. (a) An
agency subject to Labor Code, Chapter 501, except for an intuition
subject to Chapter 501.022, that meets the criteria established by
the risk management pool may:
(1) purchase coverage from the pool; and
(2) use funds appropriated by the legislature to pay all
necessary costs associated with participation in the pool.
SECTION 3. The change in law made by this Act applies only
to a risk management pool established by the Board of the State
Office of Risk Management on or after the effective date of this
Act. A risk management pool created before the effective date of
this Act is governed by the law in effect on the date the award was
made, and the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2025.