By Denny H.B. No. 975
76R2673 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to group health benefits coverage for employees of school
1-3 districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 2(2) and (5), Article 3.50-4, Insurance
1-6 Code, are amended to read as follows:
1-7 (2) "Carrier" means:
1-8 (A) an [any] insurance company authorized to do
1-9 business in this state;
1-10 (B) a group [or] hospital service corporation
1-11 created under Chapter 20 of this code; [authorized by the State
1-12 Board of Insurance to provide any of the insurance coverages,
1-13 benefits,] or
1-14 (C) a health maintenance organization regulated
1-15 under the Texas Health Maintenance Organization Act (Chapter 20A,
1-16 Vernon's Texas Insurance Code) [services provided by this article
1-17 under the insurance laws of this state].
1-18 (5) "Health benefit plan" or "plan" means a group
1-19 insurance policy, contract, or certificate, medical or hospital
1-20 service agreement, membership or subscription contract, salary
1-21 continuation plan, or similar group arrangement, including coverage
1-22 through a health maintenance organization regulated under the Texas
1-23 Health Maintenance Organization Act (Chapter 20A, Vernon's Texas
1-24 Insurance Code), to provide, pay for, or reimburse expenses for
2-1 health care services.
2-2 SECTION 2. Section 3(a), Article 3.50-4, Insurance Code, is
2-3 amended to read as follows:
2-4 (a) The Texas Public School Employees Group Insurance
2-5 Program is established to provide for a health benefit [an
2-6 insurance] plan or plans under this article and may provide other
2-7 insurance coverages as provided by this article.
2-8 SECTION 3. Section 5(a), Article 3.50-4, Insurance Code, is
2-9 amended to read as follows:
2-10 (a) The trustee may adopt rules, plans, procedures, and
2-11 orders reasonably necessary to implement this article, including:
2-12 (1) establishment of minimum benefit and financing
2-13 standards for group health benefits [insurance] coverage and other
2-14 coverage to be provided to all retirees, active employees,
2-15 dependents, surviving spouses, and surviving dependent children;
2-16 (2) establishment of basic and optional group coverage
2-17 to be provided to retirees, active employees, dependents, surviving
2-18 spouses, and surviving dependent children;
2-19 (3) establishment of the procedures for contributions
2-20 and deductions;
2-21 (4) establishment of periods for enrollment and
2-22 selection of optional coverage and procedures for enrolling and
2-23 exercising options under the plan;
2-24 (5) determination of methods and procedures for claims
2-25 administration;
2-26 (6) study of the operation of all [insurance] coverage
2-27 provided under this article;
3-1 (7) administration of the fund;
3-2 (8) adoption of a timetable for the development of
3-3 minimum benefit and financial standards for group [insurance]
3-4 coverage, establishment of group health benefit plans and other
3-5 insurance plans, and the taking of bids for and awarding of
3-6 contracts for health benefit plans and other insurance plans; and
3-7 (9) contracting with an independent and experienced
3-8 group insurance consultant or actuary, who does not receive
3-9 [insurance] commissions from any carrier [insurance company], for
3-10 advice and counsel in implementing and administering this program.
3-11 SECTION 4. Section 6, Article 3.50-4, Insurance Code, is
3-12 amended by amending Subsections (a), (c), and (f) and by adding
3-13 Subsection (h) to read as follows:
3-14 (a) There is created a Health Benefits [Retirees] Advisory
3-15 Committee composed of nine members appointed by the trustee. One
3-16 member shall be an active school administrator. One member shall
3-17 be a retired school administrator. Two members shall be active
3-18 teachers. Three members shall be retired teachers. One member
3-19 shall be an active member of the auxiliary personnel of a school
3-20 district. One member shall be a retired member of the auxiliary
3-21 personnel.
3-22 (c) The committee shall:
3-23 (1) hold public hearings on group health and other
3-24 insurance benefits;
3-25 (2) recommend to the trustee minimum standards and
3-26 features of the plan or plans that it considers appropriate; and
3-27 (3) recommend to the trustee desirable changes in
4-1 rules and legislation affecting the program.
4-2 (f) A person is not eligible for appointment as a member of
4-3 the advisory committee if the person is required to register with
4-4 the secretary of state under Chapter 305, Government Code [422,
4-5 Acts of the 63rd Legislature, Regular Session, 1973 (Article
4-6 6252-9c, Vernon's Texas Civil Statutes)].
4-7 (h) The advisory committee is not subject to Section
4-8 2110.008, Government Code.
4-9 SECTION 5. The heading to Section 7, Article 3.50-4,
4-10 Insurance Code, is amended to read as follows:
4-11 Sec. 7. PARTICIPATION BY RETIREE.
4-12 SECTION 6. Section 7A, Article 3.50-4, Insurance Code, is
4-13 amended to read as follows:
4-14 Sec. 7A. PARTICIPATION BY ACTIVE EMPLOYEES. (a) Each [A]
4-15 public school district shall [may elect to] participate in the
4-16 program provided under this article. The [A] district [that elects
4-17 to participate] must accept the schedule of costs adopted by the
4-18 trustee. [A district may offer an alternative health benefit plan
4-19 to its active employees during the period of its participation in
4-20 the program if the trustee approves the plan as providing
4-21 contributions, participation, and a design that are in accordance
4-22 with sound group benefit underwriting principles.]
4-23 (b) The trustee by rule shall establish [provide]:
4-24 (1) minimum benefit standards for the program
4-25 [eligibility requirements for participation by a school district,
4-26 which may include criteria based on size];
4-27 (2) [restrictions on the ability of a school district
5-1 to begin or discontinue participation, which may include a minimum
5-2 period of participation and limited periods for elections to begin
5-3 or discontinue participation;]
5-4 [(3)] administrative fees to be paid by
5-5 [participating] school districts to cover the trustee's
5-6 administrative costs in extending the program to active employees;
5-7 and
5-8 (3) other participation [(4)] requirements for school
5-9 districts as determined by the trustee to be necessary for the
5-10 operation of [minimize the effects of adverse selection on] the
5-11 program.
5-12 (c) The trustee shall provide basic group health benefits
5-13 coverage for each active employee and may provide optional group
5-14 coverages for active employees participating in the program. The
5-15 coverages may be combined with or similar to, but separate from,
5-16 coverages provided to retirees. The trustee by rule shall define
5-17 the requirements of the basic coverage [sum of premiums and
5-18 administrative fees received from participating school districts
5-19 and active employees must cover all expenses of school district
5-20 employee participation in the program].
5-21 (d) Each [Participation by an] active employee of a
5-22 [participating] school district shall participate in the basic
5-23 coverage unless [is optional with] the employee specifically waives
5-24 participation in writing. A school district may not offer a
5-25 financial incentive to an active employee for declining to
5-26 participate in the program. An active employee is entitled to
5-27 obtain coverage for dependents in the same manner as a
6-1 participating retiree.
6-2 (e) Each [participating] school district shall contribute
6-3 for each district employee covered by the program an amount equal
6-4 to 65 [not less than 75] percent of the cost for the employee only
6-5 of the plans of group coverages authorized by the trustee for
6-6 active employees. [The district shall certify to the trustee the
6-7 amount the district will contribute monthly toward the cost of
6-8 coverage. The trustee shall determine if the amount is sufficient
6-9 to underwrite the plan for the district based on sound group
6-10 benefit underwriting principles. A determination by the trustee
6-11 under this subsection is final.]
6-12 (f) Each active employee covered by the program shall pay,
6-13 through a deduction from the employee's compensation:
6-14 (1) an amount equal to 25 percent of the cost for
6-15 employee-only coverage under the plan of basic coverage authorized
6-16 by the trustee for active employees; and
6-17 (2) that portion of the cost of optional coverage or
6-18 dependent coverage selected by the employee that exceeds the amount
6-19 required under Subdivision (1) of this subsection [of employer
6-20 contributions].
6-21 (g) [The trustee shall deposit in the fund all fees
6-22 collected under Section 44(d), Chapter 812, Acts of the 73rd
6-23 Legislature, 1993, except that portion used to conduct the survey
6-24 required by Section 44. The trustee shall continue to collect the
6-25 fee through the 1996-1997 school year, after which time the fee
6-26 expires.]
6-27 [(h)] The state shall, for each active employee covered by
7-1 the program, contribute in the manner provided by Section 16 of
7-2 this article an amount equal to 10 percent of the cost for
7-3 employee-only coverage under the plan of basic coverage authorized
7-4 by the trustee for active employees. The state may also make
7-5 contributions to the fund in addition to those required by Section
7-6 16(b) of this article for the purpose of assisting in the expansion
7-7 of the program to active employees.
7-8 [(i) The trustee shall begin enrollment in the program for
7-9 active employees to be effective beginning with the 1996-1997
7-10 school year.]
7-11 SECTION 7. Section 9, Article 3.50-4, Insurance Code, is
7-12 amended to read as follows:
7-13 Sec. 9. BENEFIT CERTIFICATES. At such times, or upon such
7-14 events, as designated by the trustee, each insurance carrier shall
7-15 issue to each retiree, active employee, surviving spouse, or
7-16 surviving dependent child entitled to coverage [insured] under this
7-17 article a certificate of benefits [insurance] that:
7-18 (1) states the benefits to which the person is
7-19 entitled;
7-20 (2) states to whom the benefits are payable;
7-21 (3) states to whom the claims must be submitted; and
7-22 (4) summarizes the provisions of the health benefit
7-23 plan [policy] principally affecting the person.
7-24 SECTION 8. Sections 10(a) and (b), Article 3.50-4, Insurance
7-25 Code, are amended to read as follows:
7-26 (a) Not later than the 180th day after the end of each state
7-27 fiscal year, the trustee shall make a written report to the
8-1 commissioner [State Board of Insurance] concerning the [insurance]
8-2 coverages provided and the benefits and services being received by
8-3 persons covered [insured] under this article.
8-4 (b) Coverage [Insurance coverage] purchased under this
8-5 article shall provide for an accounting to the trustee by each
8-6 carrier providing coverage not later than the 90th day after the
8-7 end of each policy year. The accounting shall be on a form
8-8 approved by the trustee. Other reports shall be prepared by each
8-9 carrier if considered necessary by the trustee. An extra charge
8-10 may not be assessed by the carrier for the accounting reports.
8-11 SECTION 9. Section 13, Article 3.50-4, Insurance Code, is
8-12 amended to read as follows:
8-13 Sec. 13. AUTOMATIC COVERAGE. A retiree or active employee
8-14 who applies during an enrollment period may not be denied any of
8-15 the [group insurance] basic coverage provided under this article
8-16 unless the person has been found under Section 18A of this article
8-17 to have defrauded or attempted to defraud the Texas Public School
8-18 Employees Group Insurance Program.
8-19 SECTION 10. Section 15(a), Article 3.50-4, Insurance Code,
8-20 is amended to read as follows:
8-21 (a) The school employees group insurance fund is created.
8-22 The comptroller is the custodian of the fund, and the trustee shall
8-23 administer the fund. All contributions from active employees,
8-24 retirees, school districts, and the state, contributions for
8-25 optional coverages, investment income, appropriations for
8-26 implementation of this program, and other money required or
8-27 authorized to be paid into the fund shall be paid into the fund.
9-1 From the fund shall be paid, without state fiscal year limitation,
9-2 the appropriate premiums to the carrier or carriers providing group
9-3 coverage under the plan or plans under this article, claims for
9-4 benefits under the group coverage, and the amounts expended by the
9-5 trustee for administration of the program. The appropriate portion
9-6 of the contributions to the fund to provide for incurred but
9-7 unreported claim reserves and contingency reserves, as determined
9-8 by the trustee, shall be retained in the fund.
9-9 SECTION 11. Sections 16(a), (b), (c), (f), (g), (h), and
9-10 (i), Article 3.50-4, Insurance Code, are amended to read as
9-11 follows:
9-12 (a) For [the state fiscal year beginning September 1, 1985,
9-13 and for] each [subsequent] state fiscal year, each active employee,
9-14 as a condition of employment, shall contribute to the fund an
9-15 amount equal to .25 percent of the employee's salary. Each month
9-16 the employer of an active employee shall deduct the contributions
9-17 from the employee's salary and shall remit the contributions to the
9-18 trustee as provided by any procedures that the trustee may require.
9-19 In lieu of deducting the contributions from salaries, an employer
9-20 may assume and pay the total contributions due from its active
9-21 employees for any month.
9-22 (b) The state shall contribute as the state's contribution
9-23 for coverage for retirees to the fund each fiscal year an amount
9-24 equal to .50 percent of the salary of each active employee. The
9-25 state may contribute amounts in addition to the contribution
9-26 required by this subsection.
9-27 (c) If [after the state fiscal year beginning September 1,
10-1 1990,] the amount of state and active employee contributions to the
10-2 fund is raised by the legislature above the percentages provided by
10-3 Subsections (a) and (b) of this section to provide adequate
10-4 funding for the program, the ratio between the state's contribution
10-5 and the active employees' contributions must be maintained at two
10-6 to one.
10-7 (f) Before the first day of November preceding each regular
10-8 session of the legislature, the trustee shall certify, for
10-9 information and review, to the Legislative Budget Board and the
10-10 budget division of the governor's office the amounts necessary to
10-11 pay the contributions of the state to the fund for the basic group
10-12 health benefit plans for active employees and retirees under this
10-13 article [for information and review]. Not later than August 31 of
10-14 each year, the trustee shall certify to the comptroller of public
10-15 accounts the estimated amount of state contributions to be received
10-16 by the fund for the next fiscal year under the appropriations
10-17 authorized by this article.
10-18 (g) Contributions allocated and appropriated under this
10-19 article [section] shall be paid from the General Revenue Fund in
10-20 equal monthly installments, based on the annual estimate certified
10-21 by the trustee to the comptroller of public accounts for that year,
10-22 and subject to any express limitations specified in the Act making
10-23 the appropriation. Variations between the certified amount and the
10-24 actual amount due for the year shall be reconciled at the close of
10-25 the fiscal year and proper adjustments in the annual contributions
10-26 to the fund shall be made.
10-27 (h) An employing district that fails to remit, before the
11-1 11th day after the last day of the month, all [member] deposits
11-2 required by this article [section] to be remitted by the district
11-3 for the month shall pay to the [Texas public school retired
11-4 employees group insurance] fund, in addition to the deposits,
11-5 interest on the unpaid amounts at the annual rate of six percent
11-6 compounded monthly.
11-7 (i) An employing district and its trustees hold amounts due
11-8 to the [Texas public school retired employees group insurance] fund
11-9 under this article in trust for the fund and its participants and
11-10 may not divert the amounts for any other purpose.
11-11 SECTION 12. Section 17(a), Article 3.50-4, Insurance Code,
11-12 is amended to read as follows:
11-13 (a) The trustee shall study the operation and administration
11-14 of this article, including surveys and reports on financing group
11-15 insurance coverages and health benefits plans available to active
11-16 employees and retirees, and the experience and projected cost of
11-17 coverage and benefits. The trustee shall make a report to the
11-18 legislature at each regular legislative session relating to the
11-19 operation and administration of this article.
11-20 SECTION 13. Section 19, Article 3.50-4, Insurance Code, is
11-21 amended to read as follows:
11-22 Sec. 19. ASSISTANCE. In implementing and administering this
11-23 article, the commissioner [State Board of Insurance], as requested
11-24 by the trustee, shall assist the trustee in carrying out this
11-25 article.
11-26 SECTION 14. Article 3.51, Insurance Code, is amended to read
11-27 as follows:
12-1 Art. 3.51. GROUP INSURANCE FOR EMPLOYEES OF STATE AND ITS
12-2 SUBDIVISIONS AND COLLEGES [COLLEGE AND SCHOOL EMPLOYEES]
12-3 Sec. 1. (a) The State of Texas and each of its political,
12-4 governmental and administrative subdivisions, departments,
12-5 agencies, associations of public employees, and the governing
12-6 boards and authorities of each state university or college[,
12-7 colleges, common and independent school districts or of any other
12-8 agency or subdivision of the public school system of the State of
12-9 Texas] are authorized to procure contracts with any insurance
12-10 company authorized to do business in this state insuring their
12-11 respective employees, or if an association of public employees is
12-12 the policyholder, insuring its respective members, or any class or
12-13 classes thereof under a policy or policies of group health,
12-14 accident, accidental death and dismemberment, disability income
12-15 replacement and hospital, surgical and/or medical expense insurance
12-16 or a group contract providing for annuities. The dependents of any
12-17 such employees or association members, as the case may be, may be
12-18 insured under group policies which provide hospital, surgical
12-19 and/or medical expense insurance. The insureds' contributions to
12-20 the premiums for such insurance or annuities issued to the employer
12-21 or to an association of public employees as the policyholder may be
12-22 deducted by the employer from the insureds' salaries when
12-23 authorized in writing by the respective employees so to do. The
12-24 premium for the policy or contract may be paid in whole or in part
12-25 from funds contributed by the employer or in whole or in part from
12-26 funds contributed by the insured employees. When an association of
12-27 public employees is the holder of such a policy of insurance or
13-1 contract, the premium for employees that are members of such
13-2 association may be paid in whole or in part by the State of Texas
13-3 or other agency authorized to procure contracts or policies of
13-4 insurance under this section, or in whole or in part from funds
13-5 contributed by the insured employees that are members of such
13-6 association; provided, however, that any monies or credits
13-7 received by or allowed to the policyholder or contract holder
13-8 pursuant to any participation agreement contained in or issued in
13-9 connection with the policy or contract shall be applied to the
13-10 payment of future premiums and to the pro rata abatement of the
13-11 insured employee's contribution therefor.
13-12 (b) The term employees as used herein in addition to its
13-13 usual meaning shall include elective and appointive officials of
13-14 the state.
13-15 [(b) Independent School Districts procuring policies
13-16 insuring their employees under this Section may pay all or any
13-17 portion of the premiums on such policies from the local funds of
13-18 such Independent School District, but in no event shall any part of
13-19 such premiums be paid from funds paid such districts by the State
13-20 of Texas.]
13-21 Sec. 2. All group insurance contracts effected pursuant
13-22 hereto shall conform and be subject to all the provisions of any
13-23 existing or future laws concerning group insurance.
13-24 SECTION 15. Section 1, Chapter 123, Acts of the 60th
13-25 Legislature, Regular Session, 1967 (Article 3.51-3, Vernon's Texas
13-26 Insurance Code), is amended to read as follows:
13-27 Sec. 1. (a) This Act applies to a [Any] voluntary
14-1 association [of school administrators and/or teachers in public
14-2 and/or private schools, colleges or universities, which association
14-3 is] organized on a non-profit membership basis and [is]
14-4 incorporated under the laws of the United States or of this state
14-5 that is composed of teachers or administrators in public or
14-6 private:
14-7 (1) elementary or secondary schools; or
14-8 (2) colleges or universities.
14-9 (b) An association subject to this Act may[, is hereby
14-10 authorized to] procure contracts of insurance. An association
14-11 described by Subsection (a)(1) of this Act may cover its employees
14-12 [covering any class or classes of its membership] and their
14-13 dependents under a policy or policies of group life, health,
14-14 accident, accidental death or dismemberment, and hospital, surgical
14-15 or [and/or] medical expense insurance. An association described by
14-16 Subsection (a)(2) of this Act may cover any class or classes of its
14-17 membership under such a policy. An[; and any] insurance company
14-18 authorized to do business in this state is hereby authorized to
14-19 issue such policies to any such association under the terms and
14-20 conditions set out in this Act, any contrary or inconsistent
14-21 provisions in any other statute notwithstanding.
14-22 (c) Separate policies may be obtained for one or more of the
14-23 aforementioned risks, and the association shall be deemed the
14-24 policyholder. The premium for the policy shall be paid by the
14-25 policyholder either wholly or partly from the association's funds,
14-26 or partly from such funds and partly from funds contributed by
14-27 insured members, or from funds wholly contributed by the insured
15-1 members.
15-2 (d) The policy must cover at least twenty-five members at
15-3 date of issue, and if any part or all of the premiums are to be
15-4 derived from funds contributed by the insured members specifically
15-5 for their insurance, the policy may be placed in force only if at
15-6 least seventy-five per centum (75%) of the then eligible members or
15-7 a minimum of four hundred members (whichever is less, and excluding
15-8 any as to whom evidence of individual insurability is not
15-9 satisfactory to the insurer) elect to make the required
15-10 contributions and become insured thereunder.
15-11 (e) The amounts of insurance under the policy must be based
15-12 on some plan precluding individual selection either by the insured
15-13 members or by the association.
15-14 SECTION 16. Section 22.004, Education Code, is amended to
15-15 read as follows:
15-16 Sec. 22.004. GROUP HEALTH BENEFITS FOR SCHOOL EMPLOYEES.
15-17 (a) Each district shall participate in the [make available to its
15-18 employees] group health benefits program [coverage] provided under
15-19 [by a risk pool established by one or more school districts under
15-20 Chapter 172, Local Government Code, or under a policy of insurance
15-21 or group contract issued by an insurer, a company subject to
15-22 Chapter 20, Insurance Code, or a health maintenance organization
15-23 under the Texas Health Maintenance Organization Act (Chapter 20A,
15-24 Vernon's Texas Insurance Code). The coverage must meet the
15-25 substantive coverage requirements of] Article 3.50-4 [3.51-6],
15-26 Insurance Code[, and any other law applicable to group health
15-27 insurance policies or contracts issued in this state]. [The
16-1 coverage must include major medical treatment but may exclude
16-2 experimental procedures. In this subsection, "major medical
16-3 treatment" means a medical, surgical, or diagnostic procedure for
16-4 illness or injury. The coverage may include managed care or
16-5 preventive care and must be comparable to the basic health coverage
16-6 provided under the Texas Employees Uniform Group Insurance Benefits
16-7 Act (Article 3.50-2, Vernon's Texas Insurance Code). The board of
16-8 trustees of the Teacher Retirement System of Texas shall adopt
16-9 rules to determine whether a school district's group health
16-10 coverage is comparable to the basic health coverage specified by
16-11 this subsection. The rules must provide for consideration of the
16-12 following factors concerning the district's coverage in determining
16-13 whether the district's coverage is comparable to the basic health
16-14 coverage specified by this subsection:]
16-15 [(1) the deductible amount for service provided inside
16-16 and outside of the network;]
16-17 [(2) the coinsurance percentages for service provided
16-18 inside and outside of the network;]
16-19 [(3) the maximum amount of coinsurance payments a
16-20 covered person is required to pay;]
16-21 [(4) the amount of the copayment for an office visit;]
16-22 [(5) the schedule of benefits and the scope of
16-23 coverage;]
16-24 [(6) the lifetime maximum benefit amount; and]
16-25 [(7) verification that the coverage is issued by a
16-26 provider licensed to do business in this state by the Texas
16-27 Department of Insurance or is provided by a risk pool authorized
17-1 under Chapter 172, Local Government Code, or that a district is
17-2 capable of covering the assumed liabilities in the case of coverage
17-3 provided through district self-insurance.]
17-4 (b) The cost of the coverage shall [may] be shared by the
17-5 employees, [and] the district, and the state in the manner provided
17-6 by Section 7A, Article 3.50-4, Insurance Code.
17-7 (c) Each district shall report the district's compliance
17-8 with this section [subsection] to the executive director of the
17-9 Teacher Retirement System of Texas not later than November 1 of
17-10 each year in the manner required by the board of trustees of the
17-11 Teacher Retirement System of Texas. The report [must be based on
17-12 the district group health coverage plan in effect on November 1
17-13 and] must include:
17-14 (1) [appropriate documentation of:]
17-15 [(A) the district's contract for group health
17-16 coverage with a provider licensed to do business in this state by
17-17 the Texas Department of Insurance or a risk pool authorized under
17-18 Chapter 172, Local Government Code; or]
17-19 [(B) a resolution of the board of trustees of
17-20 the district authorizing a self-insurance plan for district
17-21 employees and of the district's review of district ability to cover
17-22 the liability assumed;]
17-23 [(2)] the schedule of benefits;
17-24 (2) [(3)] the premium rate sheet, including the amount
17-25 paid by the district and employee;
17-26 (3) [(4)] the number of employees covered by the
17-27 program in [each health coverage plan offered by] the district; and
18-1 (4) [(5)] any other information considered appropriate
18-2 by the executive director of the Teacher Retirement System of
18-3 Texas.
18-4 [(d) Based on the criteria prescribed by Subsection (a), the
18-5 executive director of the Teacher Retirement System of Texas shall
18-6 certify whether a district's coverage is comparable to the basic
18-7 health coverage provided under the Texas Employees Uniform Group
18-8 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
18-9 Code). If the executive director of the Teacher Retirement System
18-10 of Texas determines that the group health coverage offered by a
18-11 district is not comparable, the executive director shall report
18-12 that information to the district and to the Legislative Budget
18-13 Board. The executive director shall submit a report to the
18-14 legislature not later than January 1 of each odd-numbered year
18-15 describing the status of each district's group health coverage
18-16 program based on the information contained in the report required
18-17 by Subsection (c) and the certification required by this
18-18 subsection.]
18-19 [(e) A school district may not contract with an insurer, a
18-20 company subject to Chapter 20, Insurance Code, or a health
18-21 maintenance organization to issue a policy or contract under this
18-22 section, or with any person to assist the school district in
18-23 obtaining or managing the policy or contract unless, before the
18-24 contract is entered into, the insurer, company, organization, or
18-25 person provides the district with an audited financial statement
18-26 showing the financial condition of the insurer, company,
18-27 organization, or person.]
19-1 [(f) An insurer, a company subject to Chapter 20, Insurance
19-2 Code, or a health maintenance organization that issues a policy or
19-3 contract under this section and any person that assists the school
19-4 district in obtaining or managing the policy or contract for
19-5 compensation shall provide an annual audited financial statement to
19-6 the school district showing the financial condition of the insurer,
19-7 company, organization, or person.]
19-8 [(g) An audited financial statement provided under this
19-9 section must be made in accordance with rules adopted by the
19-10 commissioner of insurance or state auditor, as applicable.]
19-11 SECTION 17. The following laws are repealed:
19-12 (1) Section 22.005, Education Code; and
19-13 (2) Sections 20 and 21, Article 3.50-4, Insurance
19-14 Code.
19-15 SECTION 18. The Teacher Retirement System of Texas shall
19-16 begin enrollment in the group health benefits program for active
19-17 employees required under Section 7A, Article 3.50-4, Insurance
19-18 Code, as amended by this Act, to be effective beginning with the
19-19 2000-2001 school year.
19-20 SECTION 19. This Act takes effect September 1, 1999.
19-21 SECTION 20. The importance of this legislation and the
19-22 crowded condition of the calendars in both houses create an
19-23 emergency and an imperative public necessity that the
19-24 constitutional rule requiring bills to be read on three several
19-25 days in each house be suspended, and this rule is hereby suspended.