TX SB1276

Creates new Chapter 172A in the Local Government Code to regulate risk pools primarily consisting of political subdivisions (such as cities, counties, and school districts)

Subjects these risk pools to specific Insurance Code provisions, including Title 4, Subtitle C of Title 5, and Chapter 830, for coverage they provide

Requires risk pools offering health or property and casualty coverage to annually disclose to members: a statement that the pool is not insurance and not regulated like insurers, declarations pages listing coverage types and claims processes, prior year budgets, financial status reports, and explanations of all claim denials from the preceding year

Grants the Commissioner of Insurance and Texas Department of Insurance enforcement authority over risk pools similar to their authority over insurers, and waives governmental immunity to allow private lawsuits against risk pools under applicable insurance laws

Takes effect September 1, 2025, with insurance law applicability provisions applying only to contracts entered into on or after January 1, 2026