HBA-MPM H.B. 311 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 311
By: Flores
Public Education
4/16/2001
Introduced



BACKGROUND AND PURPOSE 

In April 2000, the attorney general ruled that a junior college district
may not use a designated broker of record to purchase insurance contracts
with premiums of an aggregate value of $10,000 or more for each 12-month
period unless the legislature expressly authorizes this use.  Furthermore,
the attorney general noted that provisions governing the authority of a
junior college district to select a designated broker of record also apply
to school districts as well.  Legislative authorization is needed to
reverse the conclusions found in the attorney general's opinion.  House
Bill 311 provides that a board of trustees of a school district is not
prevented from selecting a licensed insurance broker as the sole broker of
record for the purpose of purchasing insurance regardless of the aggregate
value of insurance contract premiums in a 12-month period. 

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. 

ANALYSIS

House Bill 311 amends the Education Code to provide that the board of
trustees (board) of a school district is not prevented from selecting a
licensed insurance broker as the sole broker of record to purchase
insurance for the district, regardless of the aggregate value of insurance
contract premiums in a 12-month period.  The bill requires the board to
ensure that the use of the sole broker is in the district's best interest
and that the broker selection process is consistent with good business
management.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.