HB 3508

bill dropping the on-site rule for administrator audits

Companion SB 1151 became law

Verdict: No flags

No flagsInitial review

Initial review · graded Oct 19, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to an insurer's responsibility to review and audit a third-party administrator.

Caption from analyzed text · version I.

Summary

The word “semiannual” goes too.

The bill removes the requirement that an insurer's every-other-year audit of its third-party administrator be done on-site, and drops the word "semiannual" from the section heading. It touches insurers that use administrators to handle benefits for more than 100 people. Insurers still must review administrators twice a year and audit them every two years, but the audit can now be done remotely.

Labels

Labels: QUICK READ: 142 WORDS. The bill as filed runs 142 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).

Receipt

The receipt

89R-HB3508 · 2025-02-28

SOLD BY

Rep. Trey WhartonRHouse 12

ITEM

relating to an insurer's responsibility to review and audit a third-party administrator.

WHAT IT DOES

The word “semiannual” goes too.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · March 29, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Feb 28, 2025Filed
Mar 24, 2025Read first time
Mar 24, 2025Referred to Insurance
Apr 2, 2025Scheduled for public hearing on . . .
Apr 2, 2025Considered in public hearing
Apr 2, 2025Testimony taken/registration(s) recorded in committee
Apr 2, 2025Left pending in committee
Apr 9, 2025Considered in public hearing
Apr 9, 2025Reported favorably w/o amendment(s)
Apr 16, 2025Comte report filed with Committee Coordinator
Apr 16, 2025Committee report distributed
Apr 17, 2025Committee report sent to Calendars
Apr 28, 2025Considered in Calendars
May 1, 2025Placed on General State Calendar
May 1, 2025Companion considered in lieu of SB 1151
May 1, 2025Laid on the table subject to call

FILED UNDER

Beats not yet reviewed.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Trey Wharton

Donors

Texans for Lawsuit Reform PAC$20K Texas Sands PAC$12KClint McLaren$7,205

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$20,000.00

Texans for Lawsuit Reform PAC

$20,000.00

Cash: $20,000.00
Paid by others: $0.00
Total: $20,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 30, 2025 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101004685, 101026029, 101071395.

Texas Sands PAC$12,000.00

Texas Sands PAC

$12,000.00

Cash: $12,000.00
Paid by others: $0.00
Total: $12,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 12, 2024 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981751, 101056205, 101071395.

Clint McLaren$7,205.31

Money

Missing data does not establish zero giving. Display amounts are rounded.

Texans for Lawsuit Reform PAC

$20,000.00

Cash: $20,000.00
Paid by others: $0.00
Total: $20,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 30, 2025 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101004685, 101026029, 101071395.

Texas Sands PAC

$12,000.00

Cash: $12,000.00
Paid by others: $0.00
Total: $12,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 12, 2024 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981751, 101056205, 101071395.

Votes

No floor vote loaded for this bill.

Witnesses7

For: 6
Against: 0
On: 1

Names

For

Ict, talhi1 registration
Independent Insurance Agents of Texas1 registration
Insurance councilof texas1 registration
National Association of Mutual Insurance Companies1 registration
Texas Association of Health Plans1 registration
Texas association of life and health insurers1 registration

On

Texas Department of Insurance1 registration

Sources

7 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · March 29, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 19, 2026, against the published rubric.

Sources

Texas House · Filed Feb 28, 2025

05/01/2025 H Laid on the table subject to call

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Insurance · Committee vote 9 aye, 0 nay · Out of committee

Companion

SB 1151 by Blanco (identical)

Subjects

Insurance--General

Insurance--Insurers & Agents

Text

The text as introduced · 142 words

89R2289 SCL-F

By: Wharton
H.B. No. 3508

A BILL TO BE ENTITLED

AN ACT

relating to an insurer's responsibility to review and audit a

third-party administrator.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 4151.1042, Insurance

Code, is amended to read as follows:

Sec. 4151.1042. RESPONSIBILITIES OF INSURER; [ SEMIANNUAL ]

AUDIT AND REVIEW REQUIREMENTS .

SECTION 2. Section 4151.1042(c), Insurance Code, is amended

to read as follows:

(c) If an administrator administers benefits for more than

100 certificate holders, injured employees, plan participants, or

policyholders on behalf of an insurer, the insurer shall, at least

semiannually, conduct a review of the operations of the

administrator. At least biennially, the insurer shall conduct an

[ on-site ] audit of the operations of the administrator.

SECTION 3. This Act takes effect September 1, 2025.