HB 3983

insurance rules for pools that say they aren’t insurance

Died in committee

Verdict: No flags

No flagsInitial review

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the regulation of risk pools primarily consisting of political subdivisions.

Caption from analyzed text · version I.

Summary

Local government risk pools explain every denied claim yearly, and people can sue.

The bill puts risk pools made up mostly of cities, counties, school districts and other local governments under key parts of the Insurance Code, including the unfair practices and prompt-payment rules. Each pool offering health or property and casualty coverage must give its members a yearly packet with a statement that the pool is not insurance, a coverage page, last year's budget, a financial status report, and an explanation of every claim it denied. The Texas Department of Insurance can enforce these rules like it does against insurers, and people can sue a pool under the Insurance Code's private-action laws because the pool's governmental immunity is waived to that extent.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 6, 2025 and referred to the House Insurance committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB3983 · 2025-03-06

SOLD BY

Rep. Matt MorganRHouse 26

+ 10 coauthors

ITEM

relating to the regulation of risk pools primarily consisting of political subdivisions.

WHAT IT DOES

Local government risk pools explain every denied claim yearly, and people can sue.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

Mar 6, 2025Filed
Mar 27, 2025Read first time
Mar 27, 2025Referred to Insurance

FILED UNDER

SPEECH AND LAWFARE

THE TEXT

“Governmental immunity of a risk pool to suit and from liability is waived to the extent of liability created by this subsection.”

Bill text, introduced version (I)

The bill opens local-government risk pools to private lawsuits under insurance-law causes of action by waiving their immunity.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Matt Morgan

Donors

Texas Conservative Majority PAC$199K Texans for Lawsuit Reform PAC$150K Texans for Truth and Liberty PAC$55K

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 20, 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.

Texas Conservative Majority PAC$199,350.00

Texas Conservative Majority PAC

$199,350.00

Cash: $125,000.00
Paid by others: $74,350.00
Total: $199,350.00

canvassing $58,100.00polling $16,250.00

Also funds 42 other sitting lawmakers.

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

TEC account match.

Team

Sources

Derived itemized flow · Aug 17, 2026 to Oct 8, 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: 101067971, 101072248.

Texans for Lawsuit Reform PAC$150,123.30

Texans for Lawsuit Reform PAC

$150,123.30

Cash: $105,000.00
Paid by others: $45,123.30
Total: $150,123.30

mail $28,873.30polling $16,250.00

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 · Aug 20, 2026 to Oct 5, 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: 101067971, 101072248.

Texans for Truth and Liberty PAC$55,000.00

Texans for Truth and Liberty PAC

$55,000.00

Cash: $55,000.00
Paid by others: $0.00
Total: $55,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 24, 2025 to Sep 30, 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: 101006291, 101067971, 101072248.

Money

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

Texas Conservative Majority PAC

$199,350.00

Cash: $125,000.00
Paid by others: $74,350.00
Total: $199,350.00

canvassing $58,100.00polling $16,250.00

Also funds 42 other sitting lawmakers.

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

TEC account match.

Team

Sources

Derived itemized flow · Aug 17, 2026 to Oct 8, 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: 101067971, 101072248.

Texans for Lawsuit Reform PAC

$150,123.30

Cash: $105,000.00
Paid by others: $45,123.30
Total: $150,123.30

mail $28,873.30polling $16,250.00

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 · Aug 20, 2026 to Oct 5, 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: 101067971, 101072248.

Texans for Truth and Liberty PAC

$55,000.00

Cash: $55,000.00
Paid by others: $0.00
Total: $55,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 24, 2025 to Sep 30, 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: 101006291, 101067971, 101072248.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 6, 2025

03/27/2025 H Referred to Insurance: Mar 27 2025 11:57AM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors

Benjamin BumgarnerRHouse 63

David CookRHouse 96

Andy HopperRHouse 64

AJ LouderbackRHouse 30

J. M. LozanoRHouse 43

Brent MoneyRHouse 2

Mike OlcottRHouse 60

Tom OliversonRHouse 130

Keresa RichardsonRHouse 61

Alan SchoolcraftRHouse 44

House committee · Insurance · Final status: Died in committee

Companion

SB 1276 by Middleton (identical)

Subjects

Insurance--General

Insurance--Health & Accident

Political Subdivisions

INSURANCE, COMMISSIONER OF

INSURANCE, TEXAS DEPARTMENT OF

Text

The text as introduced · 426 words

89R9569 DNC-D

By: Morgan
H.B. No. 3983

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of risk pools primarily consisting of

political subdivisions.

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

SECTION 1. Subtitle C, Title 5, Local Government Code, is

amended by adding Chapter 172A to read as follows:

CHAPTER 172A. GENERAL PROVISIONS FOR RISK POOLS PRIMARILY

CONSISTING OF POLITICAL SUBDIVISIONS

Sec. 172A.001. APPLICABILITY OF CHAPTER. This chapter

applies only to a risk pool that primarily consists of political

subdivisions.

Sec. 172A.002. CONFLICT OF LAWS. To the extent of a

conflict between this chapter and other law, this chapter controls.

Sec. 172A.003. RULES. The commissioner of insurance may

adopt rules to implement this chapter.

Sec. 172A.004. APPLICABILITY OF INSURANCE LAWS. The

following insurance laws apply to coverage provided by a risk pool

subject to this chapter:

(1) Title 4, Insurance Code;

(2) Subtitle C, Title 5, Insurance Code; and

(3) Chapter 830, Insurance Code.

Sec. 172A.005. REQUIRED DISCLOSURES. A risk pool that

provides health or property and casualty coverage to the members of

the pool must annually provide to risk pool members:

(1) a written disclosure that the risk pool is not

insurance and is not regulated in the same manner as insurers

providing similar coverage;

(2) a copy of the declarations page of the coverage

provided under the risk pool that:

(A) lists and identifies each type of coverage

provided under the risk pool; and

(B) describes the process for filing claims and

appeals;

(3) a copy of the risk pool's budget for the preceding

risk pool year;

(4) a report stating the financial status of the risk

pool; and

(5) a report with a written explanation of each claim

denial made by the risk pool in the preceding risk pool year.

Sec. 172A.006. ENFORCEMENT. (a) The commissioner of

insurance and the Texas Department of Insurance may enforce this

chapter against a risk pool in the same manner as the department

enforces an insurance law against an insurer under Subtitle B,

Title 2, Insurance Code.

(b) A person may bring an action against a risk pool in

accordance with a law authorizing a private action under Subtitle

C, Title 5, Insurance Code. Governmental immunity of a risk pool to

suit and from liability is waived to the extent of liability created

by this subsection.

SECTION 2. Section 172A.004, Local Government Code, as

added by this Act, applies only to a contract entered into on or

after January 1, 2026.

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