SB 1151: insurers can audit administrators without showing up

Caption

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

Summary

Audits every two years still. Just not on-site.

The bill changes the rule for insurers that use a third-party administrator for more than 100 covered people. Insurers still must review the administrator every six months, and must still audit it at least every two years, but the audit no longer has to be done on-site. The section heading also drops the word "semiannual" from the audit label.

Labels

Labels: CROSS-PARTY HANDOFF. Lead author César Blanco (D) in the Senate. Lead sponsor Trey Wharton (R) in the House. Party as the Legislative Reference Library lists it for the 89th Legislature.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-SB1151 · 2025-02-06

SOLD BY

Sen. César BlancoDSenate 29

ITEM

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

WHAT IT DOES

Audits every two years still. Just not on-site.

The bill changes the rule for insurers that use a third-party administrator for more than 100 covered people. Insurers still must review the administrator every six months, and must still audit it at least every two years, but the audit no longer has to be done on-site. The section heading also drops the word "semiannual" from the audit label.

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 30, 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 6, 2025Received by the Secretary of the Senate
Feb 6, 2025Filed
Feb 28, 2025Read first time
Feb 28, 2025Referred to Health & Human Services
Apr 1, 2025Scheduled for public hearing on . . .
Apr 1, 2025Considered in public hearing
Apr 1, 2025Testimony taken in committee
Apr 1, 2025Left pending in committee
Apr 3, 2025Considered in public hearing
Apr 3, 2025Vote taken in committee
Apr 7, 2025Reported favorably w/o amendments
Apr 7, 2025Recommended for local & uncontested calendar
Apr 7, 2025Committee report printed and distributed
Apr 9, 2025Placed on intent calendar
Apr 10, 2025Not again placed on intent calendar
Apr 16, 2025Placed on local & uncontested calendar
Apr 16, 2025Laid before the Senate
Apr 16, 2025Read 2nd time & passed to engrossment
Apr 16, 2025Vote recorded in Journal
Apr 16, 2025Three day rule suspended
Apr 16, 2025Record vote
Apr 16, 2025Read 3rd time
Apr 16, 2025Passed
Apr 16, 2025Record vote
Apr 16, 2025Reported engrossed
Apr 17, 2025Received from the Senate
Apr 22, 2025Read first time
Apr 22, 2025Referred to Insurance
Apr 24, 2025Considered in formal meeting
Apr 24, 2025Reported favorably w/o amendment(s)
Apr 30, 2025Comte report filed with Committee Coordinator
Apr 30, 2025Committee report distributed
May 1, 2025Committee report sent to Calendars
May 1, 2025Laid out in lieu of companion HB 3508
May 1, 2025Read 2nd time
May 1, 2025Passed to 3rd reading
May 1, 2025Record vote RV#1243
May 1, 2025Statement(s) of vote recorded in Journal
May 2, 2025Read 3rd time
May 2, 2025Passed
May 2, 2025Record vote RV#1357
May 2, 2025Statement(s) of vote recorded in Journal
May 5, 2025House passage reported
May 5, 2025Reported enrolled
May 7, 2025Signed in the Senate
May 7, 2025Signed in the House
May 7, 2025Sent to the Governor
May 19, 2025Signed by the Governor
May 19, 2025Effective on 9/1/25

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 123 yea · 0 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · May 2, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Apr 16, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

César Blanco

Donors

Agave Democratic Infrastructure Fund$26K Texas Trial Lawyers Association PAC$25K Border Health PAC$25K

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 · Jul 10, 2024 to Jun 24, 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.

Agave Democratic Infrastructure Fund$25,750.00

Agave Democratic Infrastructure Fund

$25,750.00

Cash: $25,000.00
Paid by others: $750.00
Total: $25,750.00

consulting $750.00

Also funds 5 other sitting lawmakers.

Derived recipient stock · Nov 22, 2024 to Oct 12, 2026. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · Nov 25, 2024 to Dec 13, 2024. 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: 100989095.

Texas Trial Lawyers Association PAC$25,000.00

Texas Trial Lawyers Association PAC

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 3, 2024 to Jan 26, 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: 100989095, 101009709, 101033590, 101060872.

Border Health PAC$25,000.00

Border Health PAC

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 17 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Aug 26, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · on Dec 14, 2024. 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: 100989095.

Money

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

×

Agave Democratic Infrastructure Fund

$25,750.00

Cash: $25,000.00
Paid by others: $750.00
Total: $25,750.00

consulting $750.00

Also funds 5 other sitting lawmakers.

Derived recipient stock · Nov 22, 2024 to Oct 12, 2026. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · Nov 25, 2024 to Dec 13, 2024. 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: 100989095.

×

Texas Trial Lawyers Association PAC

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 3, 2024 to Jan 26, 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: 100989095, 101009709, 101033590, 101060872.

×

Border Health PAC

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 17 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Aug 26, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · on Dec 14, 2024. 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: 100989095.

Votes5

House May 2, 2025

Yea: 123
Nay: 0
Present, not voting: 1
Absent: 3
Excused: 23

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1357

SB 1151 was passed by (Record 1357): 123 Yeas, 0 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 123 (published)
Nay: 0 (published)
Present, not voting: 1 (published)
Absent: 3 (derived from named list)
Excused: 23 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 1, 2025

Yea: 143
Nay: 0
Present, not voting: 1
Absent: 2
Excused: 4

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1243

SB 1151 was passed to third reading by (Record 1243): 143 Yeas, 0 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 143 (published)
Nay: 0 (published)
Present, not voting: 1 (published)
Absent: 2 (derived from named list)
Excused: 4 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate Apr 16, 2025

Final passage

Yea: 31
Nay: 0
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records final passage. Repeated tallies belong to separate votes.

Sources

SB 1151 (Blanco) Relating to an insurer's responsibility to review and audit a third-party administrator. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 16, 2025

Suspension of the three-day rule

Yea: 31
Nay: 0
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records suspension of the three-day rule. Repeated tallies belong to separate votes.

Sources

SB 1151 (Blanco) Relating to an insurer's responsibility to review and audit a third-party administrator. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 16, 2025

Passage to engrossment

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records passage to engrossment. Repeated tallies belong to separate votes.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

SB 1151 (Blanco) Relating to an insurer's responsibility to review and audit a third-party administrator. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses5

For: 4
Against: 0
On: 1

Names

For

Blue Cross and Blue Shield of Texas1 registration
Self1 registration
Texas Association of Health Plans1 registration
Texas Association of Life and Health Insurers1 registration

On

TDI1 registration

Sources

5 parsed registrations across the loaded witness lists.

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

Senate 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 30, 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 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Feb 6, 2025

05/19/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

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

Companion

HB 3508 by Wharton (identical)

Subjects

Insurance--General

Insurance--Insurers & Agents

AUDITS & AUDITORS

Text

The text as introduced · 142 words

89R2289 SCL-F

By: Blanco
S.B. No. 1151

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.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Agave Democratic Infrastructure Fund

Texas Trial Lawyers Association PAC

Border Health PAC

Agave Democratic Infrastructure Fund

Texas Trial Lawyers Association PAC

Border Health PAC

House May 2, 2025

House May 1, 2025

Senate Apr 16, 2025

Senate Apr 16, 2025

Senate Apr 16, 2025

For

On

Companion