LSL H.B. 587 75(R)    BILL ANALYSIS


PUBLIC HEALTH
H.B. 587
By: Hunter
4-9-97
Committee Report (Unamended)



BACKGROUND 

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 of the Local
Government Code.   

Clarifying that community centers are "political subdivisions" under
Chapter 172 will increase the ability of these entities to pool their
employee benefits programs.  This will improve benefit plans, lower costs,
and improve employee morale who work at community centers.   

Clarifying that community centers are "local governments" will help
increase their ability to pool their 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 hard costs and through its loss prevention
services. 

PURPOSE

HB 587 expands the definition of a community center in order to improve
their abilities to function and provide for their employees. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 534.001(c), Health and Safety Code, to broaden
the definition of a community center by adding "a local government" to
Chapter 1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
715c, Vernon's Texas Civil Statutes) regarding centers pooling employee
group benefit programs; and adding "a political subdivision" to Chapter
172, Local Government Code, regarding Texas political subdivisions uniform
group benefits. 

SECTION 2. Establishes the effective date of this Act to be September 1,
1997. 

SECTION 3. Emergency Clause.