By: Junell H.B. No. 1530
73R4933 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the funding of the state group health insurance
1-3 contingency reserve fund.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5(f), Texas Employees Uniform Group
1-6 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
1-7 Code), is amended to read as follows:
1-8 (f) The trustee, in its sole discretion and in accordance
1-9 with the requirements of this section, shall determine those plans
1-10 of coverages for which the trustee does not intend to purchase
1-11 insurance and which it intends to provide directly from the
1-12 Employees Life, Accident, and Health Insurance and Benefits Fund.
1-13 The trustee shall make an estimate of the unrestricted balance of
1-14 the fund. The <Unless such> estimated unrestricted balance must be
1-15 equal to the amount by which contributions to the fund exceed the
1-16 trustee's estimate <is equal to at least 10 percent> of the total
1-17 benefits that will <expected to> be provided directly from the fund
1-18 as a result of claims incurred during the fiscal year<, the trustee
1-19 shall include in the contributions required the amount necessary to
1-20 establish an unrestricted balance in the fund of not less than 10
1-21 percent>. The unrestricted balance shall be placed in a
1-22 contingency reserve fund to provide for adverse fluctuations in
1-23 future charges, claims, costs, or expenses of the program.
1-24 SECTION 2. The Texas Employees Uniform Group Insurance
2-1 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
2-2 amended by adding Section 5B to read as follows:
2-3 Sec. 5B. LOAN OF MONEY IN CONTINGENCY RESERVE FUND. (a) On
2-4 request of the comptroller, the trustee shall transfer to the
2-5 Employees Life, Accident, and Health Insurance and Benefits Fund a
2-6 portion of the contingency reserve fund established under Section
2-7 5(f) of this Act. The amount of the transfer must be specified in
2-8 the comptroller's request and must be at least $72 million. The
2-9 amount transferred shall be used to pay the applicable monthly
2-10 installment for the state's contribution for the coverages provided
2-11 under this Act.
2-12 (b) A transfer under Subsection (a) of this section may not
2-13 be effective before August 1, 1995, or after August 31, 1995.
2-14 (c) Not later than September 30, 1995, the comptroller shall
2-15 transfer to the trustee for deposit to the credit of the
2-16 contingency reserve fund an amount equal to:
2-17 (1) the portion of the contingency reserve fund
2-18 transferred under Subsection (a) of this section; plus
2-19 (2) the greater of:
2-20 (A) interest on that amount at an annual rate of
2-21 eight percent for the period beginning on the effective date of the
2-22 transfer and ending on the date on which the transfer is repaid
2-23 under this subsection; or
2-24 (B) the yield that would have been earned on the
2-25 portion the contingency reserve fund transferred under Subsection
2-26 (a) of this section during the period beginning on the effective
2-27 date of the transfer and ending on the date that the transfer is
3-1 repaid under this subsection.
3-2 (d) This section expires December 31, 1995.
3-3 SECTION 3. The importance of this legislation and the
3-4 crowded condition of the calendars in both houses create an
3-5 emergency and an imperative public necessity that the
3-6 constitutional rule requiring bills to be read on three several
3-7 days in each house be suspended, and this rule is hereby suspended,
3-8 and that this Act take effect and be in force from and after its
3-9 passage, and it is so enacted.