Floor Packet Page No. 43 Amend CSSB 4 as follows: (1) In SECTION 1.18 of the bill, strike the introductory language (house committee report, page 15, lines 7-9) and substitute "Subsection (e), Section 42.253, Education Code, is amended to read as follows:". (2) In SECTION 1.18 of the bill, strike added Section 42.253(e-1), Education Code (house committee report, page 16, lines 2-17). (3) In SECTION 1.19 of the bill, in amended Section 42.302(a), Education Code (house committee report, page 17, line 4), strike "$24.75" and substitute "$24". (4) In SECTION 1.32 of the bill, strike the introductory language (house committee report, page 32, lines 1-3) and substitute "Subsection (i), Section 26.08, Tax Code, is amended to read as follows:". (5) In SECTION 1.32 of the bill, strike added Sections 26.08(j)-(n) (house committee report, page 32, line 19, through page 34, line 18). (6) Add the following new appropriately numbered article to the bill and renumber existing articles accordingly: ARTICLE __. EMPLOYEE BENEFITS SECTION ____. Subchapter E, Chapter 3, Insurance Code, is amended by adding Article 3.50-7 to read as follows: Art. 3.50-7. TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH INSURANCE BENEFITS ACT Sec. 1. SHORT TITLE. This article may be cited as the Texas School Employees Uniform Group Health Insurance Benefits Act. Sec. 2. DEFINITIONS. In this article: (1) "Administering firm" means any firm designated by the trustee to administer any coverages, services, benefits, or requirements under this article and the trustee's rules adopted under this article. (2) "Basic coverage" means the program of group coverages determined by the trustee in which every full-time employee and every retiree participates automatically unless participation is specifically waived. (3) "Cafeteria plan" means a plan as defined and authorized by Section 125, Internal Revenue Code of 1986. (4) "Employee" means a participating member of the Teacher Retirement System of Texas who is employed by a participating school district and who is not covered by a group insurance program under the Texas Employees Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) or the Texas State College and University Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance Code). The term does not include a person performing personal services for a school district as an independent contractor. (5) "Health benefits plan" means any group policy or contract, medical, dental, or hospital service agreement, membership or subscription contract, salary continuation plan, health maintenance organization agreement, preferred provider arrangement, or any similar group arrangement or any combination of those policies, plans, contracts, agreements, or arrangements provided for the purpose of providing, paying for, or reimbursing expenses for health care services, including comparable health care services for employees and retirees who rely solely on spiritual means through prayer for healing in accordance with the teaching of a recognized church or denomination. (6) "Participating school district" means a public school district that is not exempt under Section 4 of this article from participation in the program provided under this article. (7) "Retiree" means a person who: (A) has retired under the Teacher Retirement System of Texas with at least 10 years of credit for service in public schools of this state or has retired under the Teacher Retirement System of Texas for disability and is entitled to receive an annuity from the system based on the person's service; and (B) is not eligible to participate in the group insurance program provided under the Texas Employees Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) or the Texas State College and University Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance Code). (8) "Trustee" means the Employees Retirement System of Texas. Sec. 3. ADMINISTRATION. (a) The Employees Retirement System of Texas, as trustee, shall implement and administer the statewide uniform group insurance program described by this article. (b) The trustee may hire and compensate employees. (c) The trustee may, on a competitive bid basis, contract with a qualified, experienced firm of group insurance specialists or an administering firm who will act for the trustee in the capacity of independent administrators and managers of the programs authorized under this article. The independent administrator selected by the trustee shall assist the trustee to ensure the proper administration of this article and the coverages, services, and benefits provided for or authorized by this article and shall be paid by the trustee. (d) The trustee may enter into interagency contracts with any agency of the state, including the Teacher Retirement System of Texas, for the purpose of assistance in implementing the program provided by this article. (e) The trustee has the powers with regard to the program described by this article that the trustee has in administering the Texas Employees Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code), including the power to adjudicate claims, expel participants from the program for cause, and adopt rules to administer this article. Sec. 4. PARTICIPATION IN PROGRAM. (a) Beginning September 1, 2004, a public school district is required to participate in the program provided by this article unless the executive director of the trustee determines under Section 22.004(h), Education Code, that the district's coverage is comparable to the coverage provided under this article. (b) Each full-time employee or retiree of a participating school district is automatically covered by the basic plan for employees or retirees, as applicable, unless the employee or retiree specifically waives coverage or unless the employee or retiree is expelled from the program. (c) Each part-time employee of a participating school district is eligible to participate in the program provided by this article on application in the manner provided by the trustee, unless the employee has been expelled from the program. A participating school district shall notify each of its part-time employees of their eligibility for participation in the program. Sec. 5. GROUP COVERAGES. (a) The trustee shall establish plans of group coverages for employees and retirees of participating school districts and their dependents. The coverages shall be comparable in scope and, to the greatest extent possible, in cost to the coverages provided under the Texas Employees Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) and may include group life coverages, health benefit plans, accidental death and dismemberment coverages, coverages against short-term or long-term loss of salary, and other coverages considered advisable by the trustee. Comparable plans of each type of coverage established must be offered to employees and retirees of all participating school districts. (b) The trustee by rule may define the basic coverage in which each full-time employee or retiree participates unless specifically waived. Basic coverage must include a health benefits plan. The trustee also by rule may define optional coverage, which must include coverage for dependents, and voluntary coverage. (c) The trustee may provide a cafeteria plan for employees of participating school districts. (d) The trustee may determine that plans of coverages be provided directly from the fund rather than through the purchase of insurance. Any self-funded plan of coverages is exempt from any other insurance law unless the law specifically applies to the plan or this article. Sec. 6. PAYMENT OF CONTRIBUTIONS. (a) Contributions shall be made for basic coverage for each employee participating in the program according to the following schedule: (1) for the fiscal year beginning September 1, 2000, the state shall pay 60 percent and the employing school district shall pay 40 percent of the cost of the coverage; (2) for the fiscal year beginning September 1, 2001, the state shall pay 65 percent and the employing school district shall pay 35 percent of the cost of the coverage; (3) for the fiscal year beginning September 1, 2002, the state shall pay 75 percent and the employing school district shall pay 25 percent of the cost of the coverage; (4) for the fiscal year beginning September 1, 2003, the state shall pay 85 percent and the employing school district shall pay 15 percent of the cost of the coverage; and (5) for each fiscal year beginning on or after September 1, 2004, the state shall pay 100 percent of the cost of the coverage. (b) The state shall pay 100 percent of the cost of basic coverage for each retiree participating in the program. (c) The state shall pay 50 percent of the cost of optional dependent coverage for each employee and retiree participating in the program. Each employee and retiree participating in the program shall pay 50 percent of the premium for optional dependent coverage and 100 percent of the premium for any voluntary coverage selected. Sec. 7. FUND. (a) Contributions collected under Section 6 of this article and any amounts appropriated by the legislature for contingency reserves or administrative expenses shall be deposited in the Texas school employees uniform group insurance trust fund. The fund is created with the comptroller. The trustee may use amounts in the fund only to provide group coverages under this article and to pay the expenses of administering the program. (b) The trustee may invest assets of the fund in the manner provided by Section 67(a)(3), Article XVI, Texas Constitution. SECTION ____. Article 3.50-4, Insurance Code, is amended by adding Section 3A to read as follows: Sec. 3A. TERMINATION OF PROGRAM AND TRANSFER OF PROPERTY. The trustee shall transfer to the Employees Retirement System of Texas all assets and liabilities of the program, all coverages provided under the program, and all records pertaining to the program on September 1, 2000. On the transfer of property described by this section, the program provided by this article is terminated. SECTION ____. Section 22.004, Education Code, is amended by adding Subsection (h) to read as follows: (h) Notwithstanding Subsections (a), (b), and (d), group health coverage provided by a district must be comparable to the basic coverage provided under Article 3.50-7, Insurance Code, if that program of coverages has been implemented, rather than to the basic coverage provided under the Texas Employees Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code). If the program of coverages has been implemented under Article 3.50-7, Insurance Code, the board of trustees and the executive director of the Employees Retirement System of Texas have the powers and duties granted by this section to the board of trustees and the executive director, as applicable, of the Teacher Retirement System of Texas, except that the executive director may not certify a district's coverage as comparable unless the executive director determines that the district's coverage results in a lower average cost to participants than the basic coverage provided under Article 3.50-7, Insurance Code. If the executive director determines that a district's coverage is not comparable, the district is required to begin participating in the program provided under Article 3.50-7, Insurance Code, on the latest of September 1, 2004, the date the next state fiscal year begins, or the date the district's contract for group health insurance coverage expires. SECTION ____. The Employees Retirement System of Texas shall begin enrollment in the program provided under Article 3.50-7, Insurance Code, as added by this article, to be effective beginning September 1, 2000.