S.B. No. 1367

	AN ACT
	relating to abolishing the Texas Health Insurance Pool.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  DEFINITIONS. In this Act:
	(1)  "Board" means the board of directors of the pool.
	(2)  "Commissioner" means the commissioner of
	insurance.
	(3)  "Department" means the Texas Department of
	Insurance.
	(4)  "Health benefit exchange" has the meaning assigned
	by Section 1369.201, Insurance Code.
	(5)  "Pool" means the Texas Health Insurance Pool
	established under Chapter 1506, Insurance Code, as that chapter
	existed before its repeal by this Act.
	SECTION 2.  PLAN FOR DISSOLUTION. As soon as practicable
	after the effective date of this Act, the board shall:
	(1)  develop a plan for:
	(A)  dissolving the board and the pool after the
	pool's obligations to issue and continue health benefit coverage
	terminate under Sections 3 and 4 of this Act; and
	(B)  transferring to the commissioner and the
	department:
	(i)  any continuing obligations of the board
	and the pool;
	(ii)  any assets of the pool;
	(iii)  any rights of the board or the pool
	that accrued before the dissolution of the board or the pool or that
	accrue with respect to coverage issued by the pool before the pool's
	dissolution; and
	(iv)  any authority previously held by the
	board the continuation of which is necessary or appropriate; and
	(2)  submit the plan to the commissioner for the
	commissioner's approval.
	SECTION 3.  ACCEPTANCE OF ENROLLEES. The latest date on
	which the pool may issue health benefit coverage is the later of:
	(1)  December 31, 2013; or
	(2)  the earliest date on which health benefit coverage
	is reasonably available on a guaranteed issue basis to each class of
	individuals eligible for health benefit coverage through the pool
	immediately before the effective date of this Act, as determined by
	the commissioner.
	SECTION 4.  TERMINATION OF POOL COVERAGE. Health benefit
	coverage that is issued to an individual by the pool and that is
	otherwise in force terminates on the later of:
	(1)  January 1, 2014; or
	(2)  the earliest date on which the individual:
	(A)  is enrolled in comparable health benefit
	coverage; or
	(B)  could reasonably be expected to have obtained
	health benefit coverage on a guaranteed issue basis, as determined
	by the commissioner.
	SECTION 5.  EXERCISE OF POOL'S RECOVERY RIGHTS.  The
	department may exercise any authority to recover overpayments or
	other amounts the pool would have been authorized to recover or
	collect had the pool not been dissolved, including amounts
	recoverable under the pool's subrogation rights.
	SECTION 6.  TRANSFER OF CERTAIN FUNDS; ASSESSMENT AUTHORITY
	CONTINUED. (a)  Any fund in which money belonging to the pool is
	kept and any other assets of the pool shall be transferred to the
	department on dissolution of the pool. That money and any other
	money recovered or otherwise collected by the department under this
	Act on behalf of the pool shall be used by the department to satisfy
	obligations of the pool in accordance with this Act, Chapter 1506,
	Insurance Code, as that chapter existed before its repeal by this
	Act, and the dissolution plan.
	(b)  The authority of the board to make assessments under
	Subchapter F, Chapter 1506, Insurance Code, as that subchapter
	existed before its repeal by this Act, is continued and may be
	exercised by the commissioner until the commissioner determines
	that all financial obligations of the board and the pool have been
	satisfied.
	(c)  Money collected by the department under Subsections (a)
	and (b) of this section shall be deposited to an account in the
	Texas Treasury Safekeeping Trust Company to be used for the
	purposes described by this Act. The money deposited to the account
	may be used to pay fees for the Texas Treasury Safekeeping Trust
	Company account. The department may transfer money into the
	treasury local operating fund to disburse the money as required by
	this Act.
	(d)  When the commissioner determines that all financial
	obligations of the board and the pool have been satisfied, the
	commissioner shall make a final accounting with respect to pool
	finances and:
	(1)  make any necessary final assessment under this
	section; or
	(2)  refund any surplus assessments or other surplus
	money collected on behalf of the pool, other than money described by
	Subsection (e) of this section:
	(A)  on a pro rata basis to the health benefit plan
	issuers that paid the assessments to the extent possible; or
	(B)  on another equitable basis to the extent pro
	rata refunds are not possible.
	(e)  If money paid or payable under Subsection (m), Section
	843.342 and Subsection (l), Section 1301.137, Insurance Code, is no
	longer necessary to finance premium discounts as prescribed by
	Section 1506.260, Insurance Code, as that section existed
	immediately before the effective date of this Act, the money shall
	be distributed and used as follows:
	(1)  $5 million shall be distributed to the corporation
	established under Chapter 182, Health and Safety Code, to be used
	for a purpose provided by that chapter; and
	(2)  any money available after the amount required by
	Subdivision (1) of this subsection has been distributed in
	accordance with that subdivision shall be distributed to the fund
	established under Subchapter F, Chapter 1508, Insurance Code, to be
	used:
	(A)  before January 1, 2014, for a purpose
	provided by that subchapter; and
	(B)  on and after January 1, 2014, for any other
	purpose authorized by the commissioner by rule to improve access to
	health benefit coverage for individuals without coverage.
	(f)  Money paid or payable under Subsection (m), Section
	843.342 and Subsection (l), Section 1301.137, Insurance Code, is
	subject to audit by the State Auditor's Office.
	SECTION 7.  DELAYED IMPLEMENTATION. The commissioner by
	rule may delay the implementation of any part of Sections 1 through
	6 of this Act or the pool dissolution plan established under this
	Act if:
	(1)  the guaranteed issue of health benefit coverage is
	delayed;
	(2)  the operation of a health benefit exchange in this
	state is delayed; or
	(3)  the commissioner determines that health benefit
	coverage expected to be available on a guaranteed issue basis to a
	class of individuals eligible for coverage under Chapter 1506,
	Insurance Code, immediately before the effective date of this Act,
	is not reasonably available to those individuals in this state.
	SECTION 8.  REPEALER. (a)  Effective January 1, 2014, the
	following laws are repealed:
	(1)  Subsections (a-1) and (a-2), Section 1506.007,
	Insurance Code;
	(2)  Subsections (b) and (c), Section 1506.205,
	Insurance Code;
	(3)  Subsection (b), Section 1251.255, Insurance Code;
	and
	(4)  Section 1271.305, Insurance Code.
	(b)  Effective September 1, 2015, Chapter 1506, Insurance
	Code, is repealed.
	SECTION 9.  EFFECTIVE DATE. This Act takes effect
	immediately if it receives a vote of two-thirds of all the members
	elected to each house, as provided by Section 39, Article III, Texas
	Constitution. If this Act does not receive the vote necessary for
	immediate effect, this Act takes effect September 1, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1367 passed the Senate on
	April 9, 2013, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendment on May 21, 2013, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1367 passed the House, with
	amendment, on May 16, 2013, by the following vote: Yeas 126,
	Nays 1, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor