Texas House Bill HB 5317

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the establishment of a risk management pool to provide insurance coverage.

Summary

HB 5317 would authorize the Board of the State Office of Risk Management to create a risk management pool to provide insurance coverage for state agencies and institutions of higher education. The bill designates the Office of Risk Management as the administrator of the pool and treats the pool as a sponsored policy under existing administrative rules. It also allows eligible agencies, subject to Chapter 501 of the Labor Code and meeting pool criteria, to purchase coverage from the pool and use legislative appropriations to pay the associated costs. The bill is structured to apply only to risk management pools established on or after its effective date, leaving any pool created earlier subject to prior law. The effective date is September 1, 2025. In practical terms, the bill would add a new statutory framework in the Labor Code for a state-managed insurance mechanism intended to centralize or expand coverage options for public entities.

Impact

HB 5317 would amend Chapter 412 of the Labor Code by adding a new subchapter governing a state risk management pool, including definitions, authority to create the pool, administrative responsibility, and participation rules. It would affect the State Office of Risk Management, state agencies, and institutions of higher education that qualify to participate, while also interacting with existing administrative code provisions on sponsored policies. The bill does not appear to mandate participation, but it would create a new optional coverage vehicle that could be funded with appropriated state dollars.

Sentiment

There is limited recorded debate in the available materials, and no committee transcript or vote history is provided. The bill was left pending in committee, which suggests it had not yet advanced to final committee action at the time of the last update. Based on the caption and structure, the measure appears to be a technical or administrative insurance-management proposal rather than a highly partisan policy change.

Contention

The main potential points of contention are likely to be the scope of authority given to the Board and the Office of Risk Management, the use of appropriated funds to cover participation costs, and whether a state-created pool is the most efficient way to provide insurance coverage. Another possible issue is which agencies and higher-education institutions would qualify under the pool’s criteria, since participation is limited to entities meeting standards established by the pool. No specific objections or supporters are documented in the provided discussion materials.