BWH C.S.H.B. 707 75(R)BILL ANALYSIS


COUNTY AFFAIRS
C.S.H.B. 707
By: Hamric
2-25-97
Committee Report (Substituted)



BACKGROUND 

Currently, Texas law requires county employees' requests for payroll
deductions for the payment of insurance premiums to be in writing, and
prohibits payroll deductions for the purpose of paying insurance premiums
from exceeding the amount stated in the request.  The amount deducted
usually varies each year due to insurance rate increases.  Therefore,
county employees must annually submit written requests for payroll
deductions due to the change in the rate. 

PURPOSE

This bill allows counties to notify employees about insurance premium rate
increases in the county's benefit plan without requiring the employee to
annually file individual paperwork. 

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 155.062, Texas Local Government Code, as
follows: 
 1) Amends Sec. 155.062(a) by striking existing language to remove the
requirement that a county employees' insurance deduction request be in
writing; 
 2) Amends Sec. 155.602(b) to allow a request to be in effect until the
county officer receives a written notice of change rather than a written
notice of revocation signed by the official or employee.  Provides that an
employee does not have to resubmit a request for deduction every year,
unless the insurance policy is not renewed or the employee seeks coverage
under a different policy; and 
  3) Amends Sec. 155.062(c) to provide that an insurance deduction may not
exceed the amount stated in the request and any future premium increases
imposed after the date the request for deduction is submitted.  Requires
the county officer to give written notice of any increase to each affected
employee, before the increase takes effect, if an insurance premium is
increased after the date the request for deduction is submitted. 

 SECTION 2. Effective date:  September 1, 1997.  The change in law applies
to requests for insurance deductions submitted before, on, or after that
date. 

 SECTION 3. Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

CSHB 707 makes two changes to HB 707:
 1)  Strikes the second sentence of Subsection (b) on page 1, lines 16-20
of H.B. 707,  which was redundant; and 
 2)  Replaces the word "increase" with "change" in Subsection (c) on page
1, line 23 and  Subsection (d) on page 2, lines 3 and 5 of H.B. 707, so
that the bill addresses any change  in insurance premiums, not just
increases.