HBA-CMT H.B. 1254 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1254 By: West, George "Buddy" County Affairs 7/25/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, only employees and officials of political subdivisions were covered under the uniform group insurance benefits program. With the rising cost of insurance, insurance benefits were an attractive perk and often the decisive factor for individuals when choosing what company to work for. House Bill 1254 extends the uniform group insurance benefits program for employees of political subdivisions to employees of affiliated service contractors. 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 1254 amends the Local Government Code to authorize a political subdivision to extend the same accident and health benefits coverage to employees of affiliated service contractors as are provided for political subdivision employees. The bill prohibits a political subdivision from paying any part of the contributions for coverage for employees of affiliated service contractors or their dependents. The bill specifies that inclusion of the employees of affiliated service contractors in the uniform group benefits program does not 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. EFFECTIVE DATE September 1, 2001.