2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

2025 · Regular session · Senate bill

SB1151

SB1151 removes the requirement that an insurer’s audit of a covered third-party administrator be conducted on site.

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Official caption: Relating to an insurer's responsibility to review and audit a third-party administrator.

Signed by governorSource-checked explanation published

Official report lists Senate author(s): Blanco. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

SB1151 removes the requirement that an insurer’s audit of a covered third-party administrator be conducted on site.
The act also changes the heading from “Responsibilities of Insurer; Semiannual Audit” to “Responsibilities of Insurer; Audit and Review Requirements,” better distinguishing the two duties.
The chapter uses defined terms and exemptions for “insurer” and “administrator”; this is not a new audit rule for every outside vendor or every employer benefit plan.

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What does it do?

SB1151 removes the requirement that an insurer’s audit of a covered third-party administrator be conducted on site. It does not eliminate the audit or make it less frequent: when the administrator handles benefits for more than 100 certificate holders, injured employees, plan participants or policyholders on the insurer’s behalf, the insurer must still review operations at least every six months and audit operations at least every two years. Both schedules already existed. Final law, section 2; Prior audit-and-review statute.

The act also changes the heading from “Responsibilities of Insurer; Semiannual Audit” to “Responsibilities of Insurer; Audit and Review Requirements,” better distinguishing the two duties. It leaves untouched the insurer’s responsibility to ensure competent administration and to determine benefits, premium rates, reimbursement and claims-payment procedures and any reinsurance, with the required written arrangements. Final law, sections 1–2; Prior audit-and-review statute, subsections (a)–(b).

The chapter uses defined terms and exemptions for “insurer” and “administrator”; this is not a new audit rule for every outside vendor or every employer benefit plan. Signed May 19, 2025, the act took effect September 1, 2025. Chapter definitions; Administrator exemptions; Official history; Final law, section 3.

What changed along the way?

The introduced, Senate committee, engrossed, House committee and enrolled operative provisions match. Both committees reported the bill without amendments, and no floor amendments are indexed. The enacted change is removal of the words “on-site” and revision of the heading—not replacement of a six-month audit with a two-year audit. The old operative law already required six-month reviews and two-year on-site audits despite its heading. All versions; Introduced text; Amendment index; Prior audit-and-review statute; Final law.

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

Insurers and administrators gain flexibility to conduct an audit without a required physical visit, potentially reducing travel and logistical burdens. The act does not require remote audits, prescribe a particular remote method, excuse meaningful oversight or change covered people’s benefits. Removing the visit requirement puts more weight on choosing an audit method that still supports the insurer’s unchanged responsibility for competent administration. Final law; Prior audit-and-review statute.

The March 30 fiscal note anticipates no significant state fiscal impact, assumes costs can be absorbed with existing resources and anticipates no local-government fiscal impact. It does not estimate private audit savings, premium changes or effects on claim outcomes. Fiscal note.

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.