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State of Texas
Texas Attorney General's Office
Opinion Notifications
Wednesday, February 14, 2018

The Texas Attorney General's Office on Tuesday issued legal opinions on two topics, including whether certain Department of Insurance directives regarding health reimbursement arrangements are pre-empted by recent changes to the Internal Revenue Code.

Regarding the matter concerning Health Reimbursement Arrangements, the Attorney General's Office stated that, "a court would likely determine that the Employee Retirement Income Security Act of 1974, or ERISA, preempts section 1501.003 of the Insurance Code and Department of Insurance Commissioner's Bulletin No. B-0028-06 to the extent they purport to regulate a self-funded qualified small employer health reimbursement arrangement." Opinion

The opinion was requested by Texas State Senator Charles Perry. Request

The Attorney General's Office also issued an opinion regarding the authority of the West Travis County Public Utility Agency to impose impervious cover.

According to the Attorney General's Office, "a public utility agency has statutory authority to contract with private entities seeking water services under terms its board of directors deems appropriate and that are within the agency's permissible scope of authority."

"Determining whether the West Travis County Public Utility Agency has authority to impose impervious cover limits on private entities as a contractual condition to extending its water services raises questions of fact and contract interpretation beyond the scope of an attorney general opinion," stated the opinion. Opinion

The opinion was requested by Lyle Larson, chair of the Texas House Committee on Natural Resources. Request





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