SBW C.S.H.B. 978 75(R)BILL ANALYSIS PENSIONS & INVESTMENTS C.S.H.B. 978 By: Hupp 4-15-97 Committee Report (Substituted) BACKGROUND Central Texas College (Killeen) has over 70,000 students at satellite campuses around the world. CTC contracts with the military to provide courses in higher education on military bases. These satellite campuses primarily employ locals to conduct these courses. By law, CTC must offer these employees group benefits under the Texas Employees Uniform Group Insurance Act. The state of Texas provides no extra money for benefits mandated for employees not performing their services in this state. This unfunded mandate adds to the operating costs of these satellite campuses and puts Texas public community/junior colleges at a competitive disadvantage. PURPOSE To allow public community/junior colleges who contract for satellite campuses outside the state of Texas to be more competitive with institutions of higher education from other states. 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 Article 3.50-2, Insurance Code by adding Section 13C. Section 13C. CERTAIN EMPLOYEES INELIGIBLE: (a) is amended by the addition of the language to clarify which employees are ineligible to participate in group programs provided by this Act to include employees of a junior or community college who is employed to perform services outside of the state, unless the college elects, in accordance with procedures adopted by the trustee, to permit those employees to participate in those programs. (b) is amended by the addition of the language which specifies than at employee is considered to be working outside the state if they perform 75 percent or more of their services outside of the state. SECTION 2. Amends Section 13(c), Texas Employees Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) to clarify that each part-time and full time employee is eligible for participation under Section 3(a)(5)(A)(x) unless they are ineligible under Section 13C of this Act. The usage of Section 3(a)(5)(A)(x) replaces Section 3(a)(5)(A)(viii). SECTION 3. Effective date is September 1, 1997 only for an insurance policy which is delivered, issued, or renewed on or after that date. Any policy before that date is governed by the previous law. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. The original would have made all employees of public junior or community colleges who perform services outside of this state ineligible for group program benefits. The substitute adds a provision to Section 13C(a) which allows a public junior or community college to elect to provide group program benefits to employees who perform services outside of this state. SECTION 2. The original cited Section 3(a)(5)(A) while the substitute cites Section 3(a)(5)(A)(x).