LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 30, 1997
TO: Honorable Barry Telford, Chair IN RE: House Bill No. 1700, Committee Report 1st House, Substituted
Committee on Pensions and Investments By: Rangel
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1700 ( Relating
to group health coverage for school district employees.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1700-Committee Report 1st House, Substituted FN Revision 1
No fiscal implication to the State is anticipated.
The bill would require that school districts provide health
insurance coverage to their employees that is "substantially
similar" to the insurance coverage offered to state employees.
The bill would provide several criteria that the Teacher Retirement
System shall use in determining whether a district's coverage
is substantially similar. Current statute requires that school
districts provide "comparable" coverage, but does not define
what "comparable" coverage means. One of the criteria in the
bill requires a school district to pay for 90% of the cost of
employee-only coverage, and 45% of the cost of dependent coverage.
According to information reported by the school districts to
the Teacher Retirement System, 243 school districts currently
pay between 70% and 100% of the cost for employee-only coverage,
and at least 506 school districts pay less than 70%. The majority
of school districts reported making no contribution for dependent
coverage.
Source: Agencies:
LBB Staff: JK ,PE ,SC