Bill Text: TX HB2893 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to eligibility to establish a multiple employer welfare arrangement.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2019-04-30 - Committee report sent to Calendars [HB2893 Detail]

Download: Texas-2019-HB2893-Introduced.html

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86R9184 LED-F
By: Oliverson H.B. No. 2893

A BILL TO BE ENTITLED
AN ACT
relating to eligibility to establish a multiple employer welfare
arrangement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 846.053, Insurance Code, is amended by
amending Subsections (b) and (c) and adding Subsection (d-1) to
read as follows:
(b) The employers in the multiple employer welfare
arrangement must:
(1) be members of an association or group of five or
more businesses that are in the same trade or industry, including
closely related businesses that provide support, services, or
supplies primarily to that trade or industry; or
(2) each have a principal place of business in the same
region that does not exceed the boundaries of this state or the
boundaries of a metropolitan statistical area designated by the
United States Office of Management and Budget.
(c) If the employers in the multiple employer welfare
arrangement are members of an association, the association must[:
[(1)] be engaged in substantial activity for its
members other than sponsorship of an employee welfare benefit
plan[; and
[(2) have been in existence for at least two years
before engaging in any activities relating to providing employee
health benefits to its members].
(d-1) A working owner of a trade or business without
employees may qualify as both an employer and as an employee of the
trade or industry for the purposes of this section. In this
subsection, "working owner" means an individual who:
(1) has an ownership right of any nature in a trade or
business, whether incorporated or unincorporated, including a
partner and other self-employed individual;
(2) earns wages or self-employment income from the
trade or business for providing personal services to the trade or
business; and
(3) either:
(A) works on average at least 20 hours per week or
at least 80 hours per month providing personal services to the
working owner's trade or business; or
(B) has wages or self-employment income from the
individual's trade or business that at least equals the
individual's cost of coverage for participation by the individual
and any covered beneficiaries in the group health plan sponsored by
the group or association in which the individual is participating.
SECTION 2. Section 846.053, Insurance Code, as amended by
this Act, applies only to an application for a certificate of
authority as a multiple employer welfare arrangement submitted on
or after January 1, 2020. An application submitted before January
1, 2020, is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2019.