| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the establishment of a risk management pool to provide |
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| 7 | 9 | | insurance coverage. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Chapter 412, Labor Code is amended by adding |
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| 10 | 12 | | Subchapter G, Section 412.055 and Section 412.056 to read as |
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| 11 | 13 | | follows: |
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| 12 | 14 | | Subchapter G: RISK MANAGEMENT POOL |
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| 13 | 15 | | Sec. 412.055. DEFINITIONS. In this chapter: |
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| 14 | 16 | | (1) "Pool" means a self-insured retention fund established |
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| 15 | 17 | | under Section 412.056. |
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| 16 | 18 | | Sec. 412.056. CREATION OF A RISK MANAGEMENT POOL |
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| 17 | 19 | | a. The Board may authorize the creation of a risk management |
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| 18 | 20 | | pool for the purpose of providing insurance to state agencies and |
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| 19 | 21 | | institutions of higher education. |
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| 20 | 22 | | b. The Office shall be the administrator of the risk |
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| 21 | 23 | | management pool. |
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| 22 | 24 | | c. The risk management pool shall be considered a sponsored |
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| 23 | 25 | | policy, as defined in Administrative Code, Chapter 252, Subchapter |
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| 24 | 26 | | C, Rule 252.301. |
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| 25 | 27 | | SECTION 2. Sec. 412.057. PARTICIPATION IN POOL. (a) An |
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| 26 | 28 | | agency subject to Labor Code, Chapter 501, except for an intuition |
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| 27 | 29 | | subject to Chapter 501.022, that meets the criteria established by |
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| 28 | 30 | | the risk management pool may: |
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| 29 | 31 | | (1) purchase coverage from the pool; and |
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| 30 | 32 | | (2) use funds appropriated by the legislature to pay all |
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| 31 | 33 | | necessary costs associated with participation in the pool. |
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| 32 | 34 | | SECTION 3. The change in law made by this Act applies only |
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| 33 | 35 | | to a risk management pool established by the Board of the State |
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| 34 | 36 | | Office of Risk Management on or after the effective date of this |
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| 35 | 37 | | Act. A risk management pool created before the effective date of |
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| 36 | 38 | | this Act is governed by the law in effect on the date the award was |
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| 37 | 39 | | made, and the former law is continued in effect for that purpose. |
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| 38 | 40 | | SECTION 4. This Act takes effect September 1, 2025. |
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