By Rangel                                             H.B. No. 1179
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to group health coverage for school district employees.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 22.004(a), Education Code, is amended to
 1-5     read as follows:
 1-6           (a)  Each district shall provide to its employees group
 1-7     health coverage provided by a risk pool established by one or more
 1-8     school districts under Chapter 172, Local Government Code, or under
 1-9     a policy of insurance or group contract issued by an insurer, a
1-10     company subject to Chapter 20, Insurance Code, or a health
1-11     maintenance organization under the Texas Health Maintenance
1-12     Organization Act (Chapter 20A, Vernon's Texas Insurance Code).  The
1-13     coverage must meet the substantive coverage requirements of Article
1-14     3.51-6, Insurance Code, and any other law applicable to group
1-15     health insurance policies or contracts issued in this state.  The
1-16     coverage must include major medical treatment but may exclude
1-17     experimental procedures.  In this subsection, "major medical
1-18     treatment" means a medical, surgical, or diagnostic procedure for
1-19     illness or injury. The coverage may include managed care or
1-20     preventive care and must be comparable to the basic health coverage
1-21     provided under the Texas Employees Uniform Group Insurance Benefits
 2-1     Act (Article 3.50-2, Vernon's Texas Insurance Code).  The board of
 2-2     trustees of the Teacher Retirement System of Texas shall adopt
 2-3     rules to determine whether a school district's group health
 2-4     coverage maintains a standard of comparability of at least 95
 2-5     percent based on each individual health plan option offered in the
 2-6     district and a composite average of all individual health plan
 2-7     options offered in the district when compared [is comparable] to
 2-8     the basic health coverage specified by this subsection.  The rules
 2-9     must provide for consideration of the following factors concerning
2-10     the district's coverage in determining whether the district's
2-11     coverage is comparable to the basic health coverage specified by
2-12     this subsection:
2-13                 (1)  the deductible amount for service provided inside
2-14     and outside of the network;
2-15                 (2)  the coinsurance percentages for service provided
2-16     inside and outside of the network;
2-17                 (3)  the maximum amount of coinsurance payments a
2-18     covered person is required to pay;
2-19                 (4)  the amount of the copayment for an office visit;
2-20                 (5)  the schedule of benefits and the scope of
2-21     coverage;
2-22                 (6)  the lifetime maximum benefit amount;
2-23                 (7)  the employee cost of coverage; and
2-24                 (8) [(7)]  verification that the coverage is issued by
2-25     a provider  licensed to do business in this state by the Texas
 3-1     Department of Insurance or is provided by a risk pool authorized
 3-2     under Chapter 172, Local Government Code, or that a district is
 3-3     capable of covering  the assumed liabilities in the case of
 3-4     coverage provided through district self-insurance.
 3-5           SECTION 2.  Section 39.075(a), Education Code, is amended to
 3-6     read as follows:
 3-7           (a)  The commissioner shall authorize special accreditation
 3-8     investigations to be conducted under the following circumstances:
 3-9                 (1)  when excessive numbers of absences of students
3-10     eligible to be tested on state assessment instruments are
3-11     determined;
3-12                 (2)  when excessive numbers of allowable exemptions
3-13     from the required state assessment are determined;
3-14                 (3)  in response to complaints submitted to the agency
3-15     with respect to alleged violations of civil rights or other
3-16     requirements imposed on the state by federal law or court order;
3-17                 (4)  in response to established compliance reviews of
3-18     the district's financial accounting practices and state and federal
3-19     program requirements;
3-20                 (5)  when extraordinary numbers of student placements
3-21     in alternative education programs, other than placements under
3-22     Sections 37.006 and 37.007, are determined; [or]
3-23                 (6)  in response to an allegation involving a conflict
3-24     between members of the board of trustees or between the board and
3-25     the district administration if it appears that the conflict
 4-1     involves a violation of a role or duty of the board members or the
 4-2     administration clearly defined by this code; or
 4-3                 (7)  when a district is found to be out of compliance
 4-4     with Section 22.004.
 4-5           SECTION 3.  Sections 22.004 and 39.075, Education Code, as
 4-6     amended by this Act, apply beginning with the 1999-2000 school
 4-7     year.
 4-8           SECTION 4.  The importance of this legislation and the
 4-9     crowded condition of the calendars in both houses create an
4-10     emergency and an imperative public necessity that the
4-11     constitutional rule requiring bills to be read on three several
4-12     days in each house be suspended, and this rule is hereby suspended.