TX HB3983

Creates new Chapter 172A in the Local Government Code to regulate risk pools that primarily consist of political subdivisions (cities, counties, school districts, etc.)

Requires risk pools providing health or property/casualty coverage to annually disclose to members: a statement that the pool is not insurance and not regulated like insurers, declarations page listing coverage types and claims processes, prior year budget, financial status report, and written explanations of all claim denials

Applies specific Insurance Code provisions to these risk pools, including Title 4 (regulation of insurers), Subtitle C of Title 5 (property and casualty insurance), and Chapter 830 (unfair claim settlement practices)

Grants the Commissioner of Insurance and Texas Department of Insurance enforcement authority over risk pools similar to their authority over insurers

Waives governmental immunity for risk pools to allow private lawsuits under Insurance Code Subtitle C, Title 5, with the insurance law provisions applying to contracts entered on or after January 1, 2026