Relating to the regulation of risk pools primarily consisting of political subdivisions.

HB 3983 establishes new regulations for risk pools primarily made up of local governments (like cities, counties, or school districts). Starting January 1, 2026, these pools must provide members with annual reports including coverage details, budget summaries, financial status, and explanations for denied claims. The bill clarifies that such risk pools are not insurance and must comply with specific sections of Texas insurance law (Title 4, Subtitle C, and Chapter 830 of the Insurance Code). It also waives government immunity for lawsuits related to claim denials or coverage issues.