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).