SRC-JFA H.B. 587 75(R) BILL ANALYSIS Senate Research Center H.B. 587 By: Hunter (Shapleigh) Health & Human Services 5-12-97 Engrossed DIGEST The Texas Council Risk Management Fund Board (TCRMF) has requested that certain statutory amendments be made to clarify the ability of community centers to take advantage of the cost savings and advantages of "pooling" their employee group benefits programs under Chapter 172, Local Government Code. Clarifying that community centers are "political subdivisions" under Chapter 172, Local Government Code, will increase the ability of these entities to pool their employee benefits programs. This will improve benefit plans, lower costs, and improve employee morale at community centers. Clarifying that community centers are "local governments" will help increase the centers' ability to pool employee group benefits programs, as well as support the existing product lines of the TCRMF. The TCRMF has saved community centers millions of dollars during its eight year existence, both in actual costs and through its loss prevention services. This bill would expand the definition of community centers in order to improve their abilities to function and provide for their employees. PURPOSE As proposed, H.B. 587 expands the definition of community centers in order to improve their abilities to function and provide for their employees. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 534.001(c), Health and Safety Code, to provide that a community center is, among other things, a local government for the purposes of Chapter 1084, Acts of the 70th Legislature, Regular Session, 1987 (Article 715c, V.T.C.S.); and a political subdivision for the purposes of Chapter 172, Local Government Code. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause.