HBA-TYH H.B. 362 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 362
By: Hupp
Pensions and Investments
6/28/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, state law required schools to give insurance
benefits to out-of-state employees.   Most other states did not require
their colleges to give insurance benefits to out-of-state employees under
their state plans, which allowed those schools to submit much lower bids
for projects.  Moreover, many of the benefits provided by the Texas program
were not applicable to foreign residents.  The impact of this bill is, for
the most part, limited to the University of Central Texas, which competes
against many non-Texas colleges for federal contracts to provide
educational instruction abroad to U.S. servicemen and women.  H.B. 362
gives community/junior colleges the flexibility to decide whether they want
to give out-of-state employees insurance benefits under the Texas Employees
Uniform Group Insurance Benefits Act. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 3.50-2, V.T.I.C. (Texas Employees Uniform Group
Insurance Benefits Act), by adding Section 13C, as follows: 

Sec. 13C. CERTAIN EMPLOYEES INELIGIBLE.  Provides that an employee of a
public community/junior college who is employed to perform services outside
of this state is not eligible to participate in group programs under this
article, unless the college, in accordance with adopted procedures, permits
the employee to participate.  Provides that, under this section, an
employee is considered employed to perform services outside of this state
if 75 percent or more of the services rendered are performed outside of
this state. Exempts from this section a person employed by the public
community/junior college on August 31, 1999, and specifies that the person
remains eligible to participate in the group programs provided by this
article even if the person's employment by the college is not continuous. 

SECTION 2.  Amends Section 13(c), Article 3.50-2, V.T.I.C. (Texas Employees
Uniform Group Insurance Benefits Act), to make conforming changes. 

SECTION 3.  Specifies that, notwithstanding Section 13C, an employee hired
after the effective date of this Act to perform services outside of this
state is still eligible to participate in the group program if the program
is provided under an insurance policy, contract, or other agreement that is
in effect on the effective date of this Act and requires that the employee
be eligible to participate in the program.  Provides that this eligibility
terminates on the date that the insurance policy, contract, or other
agreement is terminated or renewed. 

SECTION 4.Emergency clause.
  Effective date: upon passage.