CHAPTER 2259. SELF-INSURANCE BY GOVERNMENTAL UNITS
GOVERNMENT CODE
TITLE 10. GENERAL GOVERNMENT
SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
CHAPTER 2259. SELF-INSURANCE BY GOVERNMENTAL UNITS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2259.001. DEFINITIONS. In this chapter:
(1) "Governmental unit" means:
(A) a state agency or institution;
(B) a local government; or
(C) an entity acting on behalf of a state agency or institution
or local government.
(2) "Local government" means a municipality or other political
subdivision of this state or a combination of political
subdivisions, including a combination created under Chapter 791.
(3) "Public security" means an obligation authorized to be
issued under this chapter, including a bond, certificate, or
note.
(4) "State agency or institution" includes an institution of
higher education.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.002. SELF-INSURANCE NOT WAIVER OF IMMUNITY. The
establishment and maintenance of a self-insurance program by a
governmental unit is not a waiver of immunity or of a defense of
the governmental unit or its employees.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
SUBCHAPTER B. SELF-INSURANCE FUND
Sec. 2259.031. ESTABLISHMENT OF FUND. (a) A governmental unit
may establish a self-insurance fund to protect the governmental
unit and its officers, employees, and agents from any insurable
risk or hazard.
(b) The governmental unit may:
(1) issue public securities and use the proceeds for all or part
of the fund; or
(2) use any money available to the governmental unit for the
fund.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.032. PUBLIC PURPOSE. The issuance of a public
security or the use of available money for a self-insurance fund
under this subchapter is a public purpose of the governmental
unit.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.033. PAYMENT SOURCE FOR PUBLIC SECURITIES: STATE
AGENCY OR INSTITUTION. Public securities issued by a state
agency or institution under this subchapter may be payable from
any available source of revenue.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.034. PAYMENT SOURCE FOR PUBLIC SECURITIES: LOCAL
GOVERNMENT. (a) Public securities issued by a local government
under this subchapter may be payable from taxes imposed by and
revenues of the local government, including:
(1) ad valorem, sales and use, and hotel occupancy taxes;
(2) revenue derived by the local government from any system or
other specified source; or
(3) any combination of taxes and revenue.
(b) The issuance of public securities by a local government
under this subchapter that are payable from ad valorem taxes is
subject to the laws applicable to the issuance of public
securities by the local government for other purposes, including
Chapter 1251, with respect to the necessity for and conduct of an
election.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.035. SALE OF PUBLIC SECURITIES. A governmental unit
may sell public securities issued under this subchapter at a
public or private sale.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.036. COUNTY OR MUNICIPAL CERTIFICATES OF OBLIGATION.
As provided by Subchapter C, Chapter 271, Local Government Code,
a county or municipality may issue and sell for cash, at a public
or private sale, certificates of obligation for the establishment
and maintenance of a self-insurance fund under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.037. APPLICABILITY OF INSURANCE LAWS. The Insurance
Code and other laws of this state relating to the provision or
regulation of insurance do not apply to:
(1) an agreement entered into under this subchapter; or
(2) the proceeds of public securities issued under this
subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
SUBCHAPTER C. RISK RETENTION GROUPS
Sec. 2259.061. FORMATION OF RISK RETENTION GROUP. A
governmental unit may form or become a member of a risk retention
group formed under the Liability Risk Retention Act of 1986 (15
U.S.C. Section 3901 et seq.) to obtain insurance against an
insurable risk.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.062. PAYMENT SOURCE FOR GROUP: STATE AGENCY OR
INSTITUTION. A state agency or institution may make a payment
under a risk retention group agreement from any source, including
a legislative appropriation.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.
Sec. 2259.063. PAYMENT SOURCE FOR GROUP: LOCAL GOVERNMENT. (a)
A local government may make a payment under a risk retention
group agreement from proceeds of taxes imposed by and revenues of
the local government, including:
(1) ad valorem, sales and use, and hotel occupancy taxes;
(2) revenue derived by the local government from any system or
other specified source; or
(3) any combination of taxes and revenue.
(b) A local government that does not have authority to impose ad
valorem taxes for payment of contractual debts may make a payment
under a risk retention group agreement from an annual
appropriation of proceeds of ad valorem taxes the local
government is authorized to impose.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1,
1999.