SRC-JEC H.B. 1254 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1254
77R4280 MI-FBy: West, George "Buddy" (Bivins)
Intergovernmental Relations
5/4/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, only employees and officials of political subdivisions
are covered under the uniform group insurance benefits program.  H.B. 1254
extends the uniform group insurance benefits program to employees of
affiliated service contractors.  


RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 172.002, Local Government Code, to provide that
included in the purpose of this chapter is the recognition of the service
to political subdivisions by employees of affiliated service contractors by
extending to them the same accident and health benefits coverages as are
provided for political subdivision employees. 

SECTION 2.  Amends Section 172.003, Local Government Code, to define
"affiliated service contractor." 

SECTION 3.  Amends Sections 172.004(a) and (c), Local Government Code, as
follows: 

(a) Modifies a statutory reference.  Provides that a political subdivision
or a group of political subdivisions, under the Interlocal Cooperation Act,
is authorized to provide health and accident coverage to employees of
affiliated service contractors. 

 (c) Makes a conforming change.

SECTION 4.  Amends Sections 172.005(a) and (b), Local Government Code, to
modify a statutory reference and to make conforming changes. 

SECTION 5.  Amends Section 172.013(b), Local Government Code, to prohibit a
political subdivision from paying any part of the contributions for
coverage for employees of affiliated service contractors or their
dependents. 

SECTION 6.  Amends Chapter 172, Local Government Code, by adding Section
172.016, as follows: 

Sec. 172.016.  STATUS OF AFFILIATED SERVICE CONTRACTORS.  Provides that
inclusion of the employees of affiliated service contractors in the uniform
group benefits program authorized by this chapter does not, for any
purpose: make an affiliated service contractor a political subdivision or a
division of a political subdivision; or make an employee of an affiliated
service contractor an employee of a political subdivision or a division of
a political  subdivision. 

SECTION 7.  Effective date: September 1, 2001.