1-1 AN ACT
1-2 relating to the operation and funding of certain group coverage
1-3 programs for certain school and educational employees and their
1-4 dependents.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. GROUP HEALTH COVERAGE PROGRAM
1-7 SECTION 1.01. Subchapter E, Chapter 3, Insurance Code, is
1-8 amended by adding Article 3.50-7 to read as follows:
1-9 Art. 3.50-7. TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH
1-10 COVERAGE ACT
1-11 Sec. 1. SHORT TITLE. This article may be cited as the Texas
1-12 School Employees Uniform Group Health Coverage Act.
1-13 Sec. 2. DEFINITIONS. In this article:
1-14 (1) "Administering firm" means any entity designated
1-15 by the trustee to administer any coverages, services, benefits, or
1-16 requirements under this article and the trustee's rules adopted
1-17 under this article.
1-18 (2) "Charter school" means an open-enrollment charter
1-19 school established under Subchapter D, Chapter 12, Education Code.
1-20 (3) "Dependent" means:
1-21 (A) a spouse of a full-time employee or
1-22 part-time employee;
1-23 (B) a full-time or part-time employee's
1-24 unmarried child who is younger than 25 years of age, including:
2-1 (i) an adopted child;
2-2 (ii) a foster child, stepchild, or other
2-3 child who is in a regular parent-child relationship; and
2-4 (iii) a recognized natural child;
2-5 (C) a full-time or part-time employee's
2-6 recognized natural child, adopted child, foster child, stepchild,
2-7 or other child who is in a regular parent-child relationship and
2-8 who lives with or whose care is provided by the employee or the
2-9 surviving spouse on a regular basis, regardless of the child's age,
2-10 if the child is mentally retarded or physically incapacitated to
2-11 such an extent as to be dependent on the employee or surviving
2-12 spouse for care or support, as determined by the trustee; and
2-13 (D) notwithstanding any other provision of this
2-14 code, any other dependent of a full-time or part-time employee
2-15 specified by rules adopted by the trustee.
2-16 (4) "Employee" means a participating member of the
2-17 Teacher Retirement System of Texas who is employed by a
2-18 participating entity and who is not receiving coverage from a
2-19 uniform group insurance program under the Texas Employees Uniform
2-20 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
2-21 Insurance Code) or the Texas State College and University Employees
2-22 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
2-23 Insurance Code) or from the Texas Public School Retired Employees
2-24 Group Insurance Program established under Article 3.50-4 of this
2-25 code. The term does not include an individual performing personal
2-26 services as an independent contractor.
2-27 (5) "Health coverage plan" means any group policy or
3-1 contract, hospital service agreement, health maintenance
3-2 organization agreement, preferred provider arrangement, or any
3-3 similar group arrangement or any combination of those policies,
3-4 contracts, agreements, or arrangements that provides for, pays for,
3-5 or reimburses expenses for health care services.
3-6 (6) "Participating entity" means an entity
3-7 participating in the uniform group coverage program established
3-8 under this article. The term includes:
3-9 (A) a school district;
3-10 (B) another educational district whose employees
3-11 are members of the Teacher Retirement System of Texas;
3-12 (C) a regional education service center; and
3-13 (D) a charter school that meets the requirements
3-14 of Section 6 of this article.
3-15 (7) "Program" means the uniform group coverage program
3-16 established under this article.
3-17 (8) "Regional education service center" means a
3-18 regional education service center established under Chapter 8,
3-19 Education Code.
3-20 (9) "Trustee" means the Teacher Retirement System of
3-21 Texas.
3-22 Sec. 3. ADMINISTRATION; POWERS AND DUTIES OF TRUSTEE. (a)
3-23 The Teacher Retirement System of Texas, as trustee, shall implement
3-24 and administer the uniform group coverage program described by this
3-25 article.
3-26 (b) The trustee may hire and compensate employees as
3-27 necessary to implement the program. The trustee may contract with
4-1 an independent and experienced group insurance consultant or
4-2 actuary for advice and counsel in implementing and administering
4-3 the program.
4-4 (c) The trustee may adopt rules relating to the program as
4-5 considered necessary by the trustee.
4-6 (d) In contracting for group health coverage under this
4-7 article, competitive bidding shall be required under rules adopted
4-8 by the trustee. The trustee is not required to select the lowest
4-9 bid but may consider also ability to service contracts, past
4-10 experiences, financial stability, and other relevant criteria. If
4-11 the trustee awards a contract to an entity whose bid deviates from
4-12 that advertised, the deviation shall be recorded and the reasons
4-13 for the deviation shall be fully justified in the minutes of the
4-14 next meeting of the trustee.
4-15 (e) The trustee may enter into interagency contracts with
4-16 any agency of the state, including the Employees Retirement System
4-17 of Texas and the Texas Department of Insurance, for the purpose of
4-18 assistance in implementing the program.
4-19 (f) The trustee may adopt rules to administer the program,
4-20 including rules relating to adjudication of claims and expelling
4-21 participants from the program for cause.
4-22 Sec. 4. GROUP COVERAGES. (a) The trustee by rule shall
4-23 establish plans of group coverages for employees participating in
4-24 the program and their dependents. The plans must include at least
4-25 two tiers of group coverage, with coverage at different levels in
4-26 each tier, ranging from the catastrophic care coverage plan to the
4-27 primary care coverage plan. Each tier must contain a health
5-1 coverage plan.
5-2 (b) The trustee by rule shall define the requirements of
5-3 each coverage plan and tier of coverage. The coverage provided
5-4 under the catastrophic care coverage plan shall be prescribed by
5-5 the trustee by rule and must provide coverage at least as extensive
5-6 as the coverage provided under the TRS-Care 2 plan operated under
5-7 Article 3.50-4 of this code. The coverage provided under the
5-8 primary care coverage plan must be comparable in scope and, to the
5-9 greatest extent possible, in cost to the coverage provided under
5-10 the Texas Employees Uniform Group Insurance Benefits Act (Article
5-11 3.50-2, Vernon's Texas Insurance Code).
5-12 (c) Comparable coverage plans of each tier of coverage
5-13 established must be offered to employees of all participating
5-14 entities.
5-15 (d) During the initial period of eligibility, coverage
5-16 provided under the program may not be made subject to a preexisting
5-17 condition limitation.
5-18 (e) The trustee may offer optional coverages to employees
5-19 participating in the program. The trustee by rule may define the
5-20 types of optional coverages offered under this subsection.
5-21 Sec. 5. PARTICIPATION IN PROGRAM BY SCHOOL DISTRICTS, OTHER
5-22 EDUCATIONAL DISTRICTS, AND REGIONAL EDUCATION SERVICE CENTERS. (a)
5-23 Effective September 1, 2002, each school district with 500 or fewer
5-24 employees and each regional education service center is required to
5-25 participate in the program.
5-26 (a-1) Effective September 1, 2002, a school district that,
5-27 on January 1, 2001, had more than 500 employees but not more than
6-1 1,000 employees may elect to participate in the program. A school
6-2 district that elects to participate in the program under this
6-3 subsection must notify the trustee of the election, in the manner
6-4 prescribed by the trustee, not later than September 30, 2001. This
6-5 subsection expires January 1, 2002.
6-6 (b) Effective September 1, 2005, a school district with more
6-7 than 500 employees may elect to participate in the program. A
6-8 school district that elects to participate under this subsection
6-9 shall apply for participation in the manner prescribed by the
6-10 trustee by rule.
6-11 (b-1) Notwithstanding Subsection (b) of this section, a
6-12 school district with more than 500 employees may elect to
6-13 participate in the program before September 1, 2005, if the trustee
6-14 determines that participation by districts in that category would
6-15 be administratively feasible and cost-effective. This subsection
6-16 expires September 1, 2005.
6-17 (c) In determining the number of employees of a school
6-18 district for purposes of Subsections (a) and (b) of this section,
6-19 school districts that, on January 1, 2001, were members of a risk
6-20 pool established under the authority of Chapter 172, Local
6-21 Government Code, as provided by Section 22.004, Education Code, may
6-22 elect to be treated as a single unit. A school district shall
6-23 elect whether to be considered as a member of a risk pool under
6-24 this section by notifying the trustee not later than September 1,
6-25 2001.
6-26 (d) A risk pool in existence on January 1, 2001, that, as of
6-27 that date, provided group health coverage to 500 or fewer school
7-1 district employees may elect to participate in the program.
7-2 (e) A school district with 500 or fewer employees that is a
7-3 member of a risk pool described by Subsection (c) of this section
7-4 that provides group health coverage to more than 500 school
7-5 district employees must elect, not later than September 1, 2001,
7-6 whether to be treated as a school district with 500 or fewer
7-7 employees or as part of a unit with more than 500 employees. The
7-8 school district must notify the trustee of the election, in the
7-9 manner prescribed by the trustee, not later than September 1, 2001.
7-10 (f) For purposes of this section, participation in the
7-11 program by school districts covered by a risk pool is limited to
7-12 school districts covered by the risk pool as of January 1, 2001.
7-13 (g) Notwithstanding Subsection (a) of this section, a school
7-14 district otherwise subject to Subsection (a) of this section that,
7-15 on January 1, 2001, was individually self-funded for the provision
7-16 of health coverage to its employees may elect to not participate in
7-17 the program.
7-18 (h) Notwithstanding Subsection (a) of this section, a school
7-19 district otherwise subject to Subsection (a) of this section that
7-20 is a party to a contract for the provision of insurance coverage to
7-21 the employees of the district that is in effect on September 1,
7-22 2002, is not required to participate in the program until the
7-23 expiration of the contract period. A school district subject to
7-24 this subsection shall notify the trustee in the manner prescribed
7-25 by the trustee. This subsection expires March 1, 2004.
7-26 (i) An educational district described by Section 2(6)(B) of
7-27 this article that, on January 1, 2001, has 500 or fewer employees
8-1 may elect not to participate in the program.
8-2 Sec. 6. PARTICIPATION BY CHARTER SCHOOLS; ELIGIBILITY. (a)
8-3 A charter school is eligible to participate in the program if the
8-4 school agrees:
8-5 (1) that all records of the school relating to
8-6 participation in the program are open to inspection by the trustee,
8-7 the administering firm, the commissioner of education, or a
8-8 designee of any of those entities; and
8-9 (2) to have its accounts relating to participation in
8-10 the program annually audited by a certified public accountant at
8-11 the school's expense.
8-12 (b) A charter school must notify the trustee of the school's
8-13 intent to participate in the program in the manner and within the
8-14 time required by trustee rule.
8-15 Sec. 7. PARTICIPATION BY EMPLOYEE. (a) In this section,
8-16 "full-time employee" and "part-time employee" have the meanings
8-17 assigned by trustee rules.
8-18 (b) Except as provided by Subsection (d) of this section,
8-19 participation in the program is limited to employees of
8-20 participating entities who are full-time employees and to part-time
8-21 employees who are participating members in the Teacher Retirement
8-22 System of Texas. Such an employee who applies for coverage during
8-23 an open enrollment period prescribed by the trustee is
8-24 automatically covered by the catastrophic care coverage plan
8-25 unless the employee:
8-26 (1) specifically waives coverage under this article;
8-27 (2) selects a higher tier coverage plan; or
9-1 (3) is expelled from the program.
9-2 (c) A participating employee may select coverage in any
9-3 coverage plan offered by the trustee. The employee is not required
9-4 to continue participation in the coverage plan initially selected
9-5 and may select a higher or lower tier coverage plan than the plan
9-6 initially selected by the employee in the manner provided by
9-7 trustee rule. If the combined contributions received from the
9-8 state and the employing participating entity under Section 9 of
9-9 this article exceed the cost of a coverage plan selected by the
9-10 employee, the employee may use the excess amount of contributions
9-11 to obtain coverage under a higher tier coverage plan, or to pay all
9-12 or part of the cost of coverage for the employee's dependents. A
9-13 married couple, both of whom are eligible for coverage under the
9-14 program, may pool the amount of contributions to which the couple
9-15 are entitled under the program to obtain coverage for themselves
9-16 and dependent coverage.
9-17 (d) A part-time employee of a participating entity who is
9-18 not a participating member in the Teacher Retirement System of
9-19 Texas is eligible to participate in the program only if the
9-20 employee pays all of the premiums and other costs associated with
9-21 the health coverage plan selected by the employee.
9-22 (e) Notwithstanding Subsection (d) of this section, a
9-23 participating entity may pay any portion of what otherwise would be
9-24 the employee share of premiums and other costs associated with the
9-25 coverage selected by the employee.
9-26 Sec. 8. FUND. (a) The Texas school employees uniform group
9-27 coverage trust fund is established as a trust fund with the
10-1 comptroller.
10-2 (b) The fund is composed of:
10-3 (1) all contributions made to the fund under this
10-4 article from employees, participating entities, and the state;
10-5 (2) contributions made by employees or participating
10-6 entities for optional coverages;
10-7 (3) investment income;
10-8 (4) any additional amounts appropriated by the
10-9 legislature for contingency reserves, administrative expenses, or
10-10 other expenses; and
10-11 (5) any other money required or authorized to be paid
10-12 into the fund.
10-13 (c) The trustee may use amounts in the fund only to provide
10-14 group coverages under this article and to pay the expenses of
10-15 administering the program.
10-16 (d) The trustee may invest assets of the fund in the manner
10-17 provided by Section 67(a)(3), Article XVI, Texas Constitution.
10-18 Sec. 9. PAYMENT OF CONTRIBUTIONS FOR PROGRAM. (a) The state
10-19 shall assist employees of participating school districts and
10-20 charter schools in the purchase of group health coverage under this
10-21 article by providing for each covered employee the amount of $900
10-22 each state fiscal year or a greater amount as provided by the
10-23 General Appropriations Act. The state contribution shall be
10-24 distributed through the school finance formulas under Chapters 41
10-25 and 42, Education Code, and used by school districts and charter
10-26 schools as provided by Sections 42.2514 and 42.260, Education Code.
10-27 (b) The state shall assist employees of participating
11-1 regional education service centers and educational districts
11-2 described by Section 2(6)(B) of this article in the purchase of
11-3 group health coverage under this article by providing to the
11-4 employing service center or educational district, for each covered
11-5 employee, the amount of $900 each state fiscal year or a greater
11-6 amount as provided by the General Appropriations Act.
11-7 (c) A participating entity shall make contributions for the
11-8 program as provided by Article 3.50-9 of this code.
11-9 (d) An employee covered by the program shall pay that
11-10 portion of the cost of coverage selected by the employee that
11-11 exceeds the amount of the state contribution under Subsection (a)
11-12 or (b) of this section and the participating entity contribution
11-13 under Subsection (c) of this section. The employee may pay the
11-14 employee's contribution under this subsection from the amount
11-15 distributed to the employee under Article 3.50-8 of this code.
11-16 (e) Notwithstanding Subsection (d) of this section, a
11-17 participating entity may pay any portion of what otherwise would be
11-18 the employee share of premiums and other costs associated with the
11-19 coverage selected by the employee.
11-20 SECTION 1.02. Effective September 1, 2002, Subchapter E,
11-21 Chapter 3, Insurance Code, is amended by adding Article 3.50-8 to
11-22 read as follows:
11-23 Art. 3.50-8. ACTIVE EMPLOYEE HEALTH COVERAGE OR COMPENSATION
11-24 SUPPLEMENTATION
11-25 Sec. 1. DEFINITIONS. In this article:
11-26 (1) "Cafeteria plan" means a plan as defined and
11-27 authorized by Section 125, Internal Revenue Code of 1986, and its
12-1 subsequent amendments.
12-2 (2) "Employee" means a participating member of the
12-3 Teacher Retirement System of Texas who:
12-4 (A) is employed by a school district, other
12-5 educational district whose employees are members of the Teacher
12-6 Retirement System of Texas, participating charter school, or
12-7 regional education service center; and
12-8 (B) is not a retiree covered under the Texas
12-9 Public School Retired Employees Group Insurance Program established
12-10 under Article 3.50-4 of this code.
12-11 (3) "Participating charter school" means an
12-12 open-enrollment charter school established under Subchapter D,
12-13 Chapter 12, Education Code, that participates in the uniform group
12-14 coverage program established under Article 3.50-7 of this code.
12-15 (4) "Regional education service center" means a
12-16 regional education service center established under Chapter 8,
12-17 Education Code.
12-18 (5) "Trustee" means the Teacher Retirement System of
12-19 Texas.
12-20 Sec. 2. ACTIVE EMPLOYEE HEALTH COVERAGE OR COMPENSATION
12-21 SUPPLEMENTATION. (a) Each year, the trustee shall deliver to each
12-22 school district, including a school district that is ineligible for
12-23 state aid under Chapter 42, Education Code, each other educational
12-24 district that is a member of the Teacher Retirement System of
12-25 Texas, each participating charter school, and each regional
12-26 education service center state funds in an amount, as determined by
12-27 the trustee, equal to the product of the number of active employees
13-1 employed by the district, school, or service center multiplied by
13-2 $1,000 or a greater amount as provided by the General
13-3 Appropriations Act for purposes of this article.
13-4 (b) All funds received by a school district, other
13-5 educational district, participating charter school, or regional
13-6 education service center under this article are held in trust for
13-7 the benefit of the active employees on whose behalf the district,
13-8 school, or service center received the funds.
13-9 (c) The trustee shall distribute funds under this article in
13-10 equal monthly installments. The trustee is entitled to recover
13-11 from a school district, other educational district, participating
13-12 charter school, or regional education service center any amount
13-13 distributed under this article to which the district, school, or
13-14 service center was not entitled.
13-15 (d) A determination by the trustee under this section is
13-16 final and may not be appealed.
13-17 Sec. 3. EMPLOYEE ELECTION. (a) If an active employee is
13-18 covered by a cafeteria plan of a school district, other educational
13-19 district, participating charter school, or regional education
13-20 service center, the state contribution under this article shall be
13-21 deposited in the cafeteria plan, and the employee may elect among
13-22 the options provided by the cafeteria plan. A cafeteria plan
13-23 receiving state contributions under this article may include a
13-24 medical savings account option and must include, at a minimum, the
13-25 following options:
13-26 (1) a health care reimbursement account;
13-27 (2) a benefit or coverage other than that provided
14-1 under Article 3.50-7 of this code, or any employee coverage or
14-2 dependent coverage available under Article 3.50-7 of this code but
14-3 not otherwise fully funded by the state or the employer
14-4 contributions, any of which must be a "qualified benefit" under
14-5 Section 125, Internal Revenue Code of 1986, and its subsequent
14-6 amendments;
14-7 (3) an option for the employee to receive the state
14-8 contribution as supplemental compensation; or
14-9 (4) an option to divide the state contribution among
14-10 two or more of the other options provided under this subsection.
14-11 (b) If an active employee is not covered by a cafeteria plan
14-12 of a school district, other educational district, participating
14-13 charter school, or regional education service center, the state
14-14 contribution under this article shall be paid to the active
14-15 employee as supplemental compensation.
14-16 (c) Supplemental compensation under this section must be in
14-17 addition to the rate of compensation that:
14-18 (1) the school district, other educational district,
14-19 participating charter school, or regional education service center
14-20 paid the employee in the preceding school year; or
14-21 (2) the district, school, or service center would have
14-22 paid the employee in the preceding school year if the employee had
14-23 been employed by the district, school, or service center in the
14-24 same capacity in the preceding school year.
14-25 (d) For each state fiscal year, an election under this
14-26 section must be made before the later of:
14-27 (1) August 1 of the preceding state fiscal year; or
15-1 (2) the 31st day after the date the employee is hired.
15-2 (e) The trustee shall prescribe and distribute to each
15-3 school district, other educational district, participating charter
15-4 school, and regional education service center:
15-5 (1) a model explanation written in English and Spanish
15-6 of the options active employees may elect under this section and
15-7 the effect of electing each option; and
15-8 (2) an election form to be completed by active
15-9 employees.
15-10 (f) Each state fiscal year, a school district, other
15-11 educational district, participating charter school, or regional
15-12 education service center shall prepare and distribute to each
15-13 active employee a written explanation in English and Spanish, as
15-14 appropriate, of the options the employee may elect under this
15-15 section. The explanation must be based on the model explanation
15-16 prepared by the trustee under Subsection (e) of this section and
15-17 must reflect all available health coverage options available to the
15-18 employee. The explanation must be distributed to an employee
15-19 before the later of:
15-20 (1) July 1 of the preceding state fiscal year; or
15-21 (2) the fifth day after the date the employee is
15-22 hired.
15-23 (g) The written explanation under Subsection (f) of this
15-24 section must be accompanied by a copy of the election form
15-25 prescribed under Subsection (e)(2) of this section.
15-26 (h) Any unencumbered funds that are returned to the school
15-27 district from accounts established under Subsection (a) of this
16-1 section may be used only to provide employee compensation,
16-2 benefits, or both.
16-3 Sec. 4. RULES; CONTRACT AUTHORITY. (a) The trustee may
16-4 adopt rules to implement this article.
16-5 (b) The trustee may enter into interagency contracts with
16-6 any agency of this state for the purpose of assistance in
16-7 implementing this article.
16-8 Sec. 5. MEDICAL SAVINGS ACCOUNT. (a) In this section,
16-9 "qualified health care expense" means an expense paid by an
16-10 employee for medical care, as defined by Section 213(d), Internal
16-11 Revenue Code of 1986, and its subsequent amendments, for the
16-12 employee or the employee's dependents, as defined by Section 152,
16-13 Internal Revenue Code of 1986, and its subsequent amendments.
16-14 (b) The trustee, by rule, shall specify the requirements for
16-15 a medical savings account established under this article.
16-16 (c) The trustee shall request in writing a ruling or opinion
16-17 from the Internal Revenue Service as to whether the medical savings
16-18 accounts established under this article and the state rules
16-19 governing those accounts qualify the accounts for appropriate
16-20 federal tax exemptions. Based on the response of the Internal
16-21 Revenue Service, the trustee shall:
16-22 (1) modify the rules, plans, and procedures adopted
16-23 under this section as necessary to ensure the qualification of
16-24 those accounts for appropriate federal tax exemptions; and
16-25 (2) certify the information regarding federal tax
16-26 qualifications to the comptroller.
16-27 (d) An employee who elects under Section 3(a) of this
17-1 article to have state funds distributed under this article placed
17-2 in a medical savings account may use the money in that account only
17-3 for a qualified health care expense.
17-4 SECTION 1.03. Subchapter E, Chapter 3, Insurance Code, is
17-5 amended by adding Article 3.50-9 to read as follows:
17-6 Art. 3.50-9. EMPLOYER EXPENDITURES FOR SCHOOL EMPLOYEE
17-7 HEALTH COVERAGE PLANS
17-8 Sec. 1. DEFINITIONS. In this article:
17-9 (1) "Participating employee" means an employee of a
17-10 school district, other educational district whose employees are
17-11 members of the Teacher Retirement System of Texas, participating
17-12 charter school, or regional education service center who
17-13 participates in a group health coverage plan provided by or through
17-14 the district, school, or service center.
17-15 (2) "Participating charter school" means an
17-16 open-enrollment charter school established under Subchapter D,
17-17 Chapter 12, Education Code, that participates in the uniform group
17-18 coverage program established under Article 3.50-7 of this code.
17-19 (3) "Regional education service center" means a
17-20 regional education service center established under Chapter 8,
17-21 Education Code.
17-22 Sec. 2. MAINTENANCE OF EFFORT FOR 2000-2001 SCHOOL YEAR.
17-23 (a) Subject to Section 3 of this article, and except as provided
17-24 by Section 5 of this article, a school district, other educational
17-25 district whose employees are members of the Teacher Retirement
17-26 System of Texas, participating charter school, or regional
17-27 education service center that, for the 2000-2001 school year, paid
18-1 amounts to share with employees the cost of coverage under a group
18-2 health coverage plan shall, for each fiscal year, use to provide
18-3 health coverage an amount for each participating employee at least
18-4 equal to the amount computed as provided by this section.
18-5 (b) The school district, other educational district,
18-6 participating charter school, or regional education service center
18-7 shall divide the amount that the district, school, or service
18-8 center paid during the 2000-2001 school year for the prior group
18-9 health coverage plan by the total number of full-time employees of
18-10 the district, school, or service center in the 2000-2001 school
18-11 year and multiply the result by the number of full-time employees
18-12 of the district, school, or service center in the fiscal year for
18-13 which the computation is made. If, for the 2000-2001 school year,
18-14 a school district, other educational district, participating
18-15 charter school, or regional education service center provided group
18-16 health coverage to its employees through a self-funded insurance
18-17 plan, the amount the district, school, or service center paid
18-18 during that school year for the plan includes only the amount of
18-19 regular contributions made by the district, school, or service
18-20 center to the plan.
18-21 (c) Amounts used as required by this section shall be
18-22 deposited, as applicable, in:
18-23 (1) the Texas school employees uniform group coverage
18-24 trust fund established under Section 8, Article 3.50-7, of this
18-25 code; or
18-26 (2) another fund established for the payment of
18-27 employee health coverage that meets requirements for those funds
19-1 prescribed by the Texas Education Agency.
19-2 Sec. 3. MINIMUM EFFORT. (a) A school district, other
19-3 educational district, participating charter school, or regional
19-4 education service center shall, for each fiscal year, use to
19-5 provide health coverage an amount equal to the number of
19-6 participating employees of the district, school, or service center
19-7 multiplied by $1,800. Amounts used as required by this section
19-8 shall be deposited in a fund described by Section 2(c) of this
19-9 article.
19-10 (b) To comply with this section, a school district or
19-11 participating charter school may use state funds received under
19-12 Chapter 42, Education Code, other than funds that may be used under
19-13 that chapter only for a specific purpose, except that amounts a
19-14 district or school is required to use to pay contributions under a
19-15 group health coverage plan for district or school employees under
19-16 Section 42.2514 or 42.260, Education Code, other than amounts
19-17 described by Section 42.260(c)(2)(B), are not used in computing
19-18 whether the district or school complies with this section.
19-19 Sec. 4. STATE ASSISTANCE FOR MEETING MINIMUM EFFORT.
19-20 (a) For any state fiscal year beginning with the fiscal year
19-21 ending August 31, 2003, except as provided by Subsection (b) of
19-22 this section, a school district that imposes maintenance and
19-23 operations taxes at the maximum rate permitted under Section
19-24 45.003(d), Education Code, is entitled to state funds in an amount
19-25 equal to the difference, if any, between:
19-26 (1) an amount equal to the number of participating
19-27 employees of the district multiplied by $1,800; and
20-1 (2) if the following amount is less than the amount
20-2 specified by Subdivision (1) of this subsection, the sum of:
20-3 (A) the amount the district is required to use
20-4 to provide health coverage under Section 2 of this article for that
20-5 fiscal year; and
20-6 (B) the difference, if any, between:
20-7 (i) the amount determined under Section
20-8 42.2514(b)(2), Education Code; and
20-9 (ii) the amount determined under Section
20-10 42.2514(b)(1), Education Code, if that amount is less than the
20-11 amount specified by Subparagraph (i) of this paragraph.
20-12 (a-1) For the state fiscal year beginning September 1, 2002,
20-13 a school district or participating charter school is entitled to
20-14 state funds in an amount equal to the difference, if any, between:
20-15 (1) an amount equal to the number of participating
20-16 employees of the district or school multiplied by $1,800; and
20-17 (2) if the following amount is less than the amount
20-18 specified by Subdivision (1) of this subsection, the sum of:
20-19 (A) the amount the district or school is
20-20 required to use to provide health coverage under Section 2 of this
20-21 article for that fiscal year; and
20-22 (B) the difference, if any, between:
20-23 (i) the amount determined under Section
20-24 42.2514(b)(2), Education Code; and
20-25 (ii) the amount determined under Section
20-26 42.2514(b)(1), Education Code, if that amount is less than the
20-27 amount specified by Subparagraph (i) of this paragraph.
21-1 (a-2) For the state fiscal year beginning September 1, 2003,
21-2 a school district or participating charter school is entitled to
21-3 state funds in an amount equal to the difference, if any, between:
21-4 (1) an amount equal to the number of participating
21-5 employees of the district or school multiplied by $1,500; and
21-6 (2) if the following amount is less than the amount
21-7 specified by Subdivision (1) of this subsection, the sum of:
21-8 (A) the amount the district or school is
21-9 required to use to provide health coverage under Section 2 of this
21-10 article for that fiscal year; and
21-11 (B) the difference, if any, between:
21-12 (i) the amount determined under Section
21-13 42.2514(b)(2), Education Code; and
21-14 (ii) the amount determined under Section
21-15 42.2514(b)(1), Education Code, if that amount is less than the
21-16 amount specified by Subparagraph (i) of this paragraph.
21-17 (a-3) For the state fiscal year beginning September 1, 2004,
21-18 a school district or participating charter school is entitled to
21-19 state funds in an amount equal to the difference, if any, between:
21-20 (1) an amount equal to the number of participating
21-21 employees of the district or school multiplied by $1,200; and
21-22 (2) if the following amount is less than the amount
21-23 specified by Subdivision (1) of this subsection, the sum of:
21-24 (A) the amount the district or school is
21-25 required to use to provide health coverage under Section 2 of this
21-26 article for that fiscal year; and
21-27 (B) the difference, if any, between:
22-1 (i) the amount determined under Section
22-2 42.2514(b)(2), Education Code; and
22-3 (ii) the amount determined under Section
22-4 42.2514(b)(1), Education Code, if that amount is less than the
22-5 amount specified by Subparagraph (i) of this paragraph.
22-6 (a-4) For the state fiscal year beginning September 1, 2005,
22-7 a school district or participating charter school is entitled to
22-8 state funds in an amount equal to the difference, if any, between:
22-9 (1) an amount equal to the number of participating
22-10 employees of the district or school multiplied by $900; and
22-11 (2) if the following amount is less than the amount
22-12 specified by Subdivision (1) of this subsection, the sum of:
22-13 (A) the amount the district or school is
22-14 required to use to provide health coverage under Section 2 of this
22-15 article for that fiscal year; and
22-16 (B) the difference, if any, between:
22-17 (i) the amount determined under Section
22-18 42.2514(b)(2), Education Code; and
22-19 (ii) the amount determined under Section
22-20 42.2514(b)(1), Education Code, if that amount is less than the
22-21 amount specified by Subparagraph (i) of this paragraph.
22-22 (a-5) For the state fiscal year beginning September 1, 2006,
22-23 a school district or participating charter school is entitled to
22-24 state funds in an amount equal to the difference, if any, between:
22-25 (1) an amount equal to the number of participating
22-26 employees of the district or school multiplied by $600; and
22-27 (2) if the following amount is less than the amount
23-1 specified by Subdivision (1) of this subsection, the sum of:
23-2 (A) the amount the district or school is
23-3 required to use to provide health coverage under Section 2 of this
23-4 article for that fiscal year; and
23-5 (B) the difference, if any, between:
23-6 (i) the amount determined under Section
23-7 42.2514(b)(2), Education Code; and
23-8 (ii) the amount determined under Section
23-9 42.2514(b)(1), Education Code, if that amount is less than the
23-10 amount specified by Subparagraph (i) of this paragraph.
23-11 (a-6) For the state fiscal year beginning September 1, 2007,
23-12 a school district or participating charter school is entitled to
23-13 state funds in an amount equal to the difference, if any, between:
23-14 (1) an amount equal to the number of participating
23-15 employees of the district or school multiplied by $300; and
23-16 (2) if the following amount is less than the amount
23-17 specified by Subdivision (1) of this subsection, the sum of:
23-18 (A) the amount the district or school is
23-19 required to use to provide health coverage under Section 2 of this
23-20 article for that fiscal year; and
23-21 (B) the difference, if any, between:
23-22 (i) the amount determined under Section
23-23 42.2514(b)(2), Education Code; and
23-24 (ii) the amount determined under Section
23-25 42.2514(b)(1), Education Code, if that amount is less than the
23-26 amount specified by Subparagraph (i) of this paragraph.
23-27 (a-7) A school district that receives state funds under
24-1 Subsection (a) of this section for a state fiscal year is not
24-2 entitled to state funds under Subsection (a-1), (a-2), (a-3),
24-3 (a-4), (a-5), or (a-6) of this section.
24-4 (a-8) Subsections (a-1)-(a-7) of this section and this
24-5 subsection expire September 1, 2008.
24-6 (b) For any state fiscal year, the amount of state funds a
24-7 school district receives under Subsection (a) of this section may
24-8 not exceed the amount of state funds the district received under
24-9 this section for the year preceding the year in which the district
24-10 first receives funds under Subsection (a) of this section.
24-11 (c) The Teacher Retirement System of Texas shall distribute
24-12 state funds to school districts and participating charter schools
24-13 under this section in equal monthly installments. State funds
24-14 received under this section shall be deposited in a fund described
24-15 by Section 2(c) of this article. The Texas Education Agency shall
24-16 provide to the retirement system information necessary for the
24-17 retirement system to determine a district's or school's eligibility
24-18 for state funds under this section. The trustee may enter into
24-19 interagency contracts with any agency of this state for the purpose
24-20 of assistance in distributing funds under this article.
24-21 (d) The Teacher Retirement System of Texas is entitled to
24-22 recover from a school district or participating charter school any
24-23 amount distributed under this section to which the district or
24-24 school was not entitled. A determination by the retirement system
24-25 under this section is final and may not be appealed.
24-26 Sec. 5. USE OF EXCESS MAINTENANCE OF EFFORT. If the amount a
24-27 school district, other educational district, or participating
25-1 charter school is required to use to provide health coverage under
25-2 Section 2 of this article for a fiscal year exceeds the amount
25-3 necessary for the district or school to comply with Section 3 of
25-4 this article for that year, the district or school may use the
25-5 excess only to provide employee compensation at a rate greater than
25-6 the rate of compensation that the district or school paid an
25-7 employee in the 2000-2001 school year, benefits, or both.
25-8 Sec. 6. ADDITIONAL SUPPORT FOR CERTAIN SCHOOL DISTRICTS. (a)
25-9 This section applies only to a school district that:
25-10 (1) pays taxes under Section 3111(a), Internal Revenue
25-11 Code of 1986, and its subsequent amendments, for employees covered
25-12 by the social security retirement program; and
25-13 (2) covered all employees under that program before
25-14 January 1, 2001.
25-15 (b) The state shall provide additional support for a school
25-16 district to which this section applies in an amount computed by
25-17 multiplying the total amount of supplemental compensation received
25-18 by district employees under Article 3.50-8 of this code by 0.062.
25-19 (c) The trustee may adopt rules as necessary to implement
25-20 this section.
25-21 (d) This section expires September 1, 2008.
25-22 SECTION 1.04. Subchapter C, Chapter 62, Health and Safety
25-23 Code, is amended by adding Section 62.1015 to read as follows:
25-24 Sec. 62.1015. ELIGIBILITY OF CERTAIN CHILDREN; DISALLOWANCE
25-25 OF MATCHING FUNDS. (a) In this section, "charter school,"
25-26 "employee," and "regional education service center" have the
25-27 meanings assigned by Section 2, Article 3.50-7, Insurance Code.
26-1 (b) A child of an employee of a charter school, school
26-2 district, other educational district whose employees are members of
26-3 the Teacher Retirement System of Texas, or regional education
26-4 service center may be enrolled in health benefits coverage under
26-5 the child health plan. A child enrolled in the child health plan
26-6 under this section participates in the same manner as any other
26-7 child enrolled in the child health plan.
26-8 (c) The cost of health benefits coverage for children
26-9 enrolled in the child health plan under this section shall be paid
26-10 as provided in the General Appropriations Act. Expenditures made to
26-11 provide health benefits coverage under this section may not be
26-12 included for the purpose of determining the state children's health
26-13 insurance expenditures, as that term is defined by 42 U.S.C.
26-14 Section 1397ee(d)(2)(B), as amended, unless the Health and Human
26-15 Services Commission, after consultation with the appropriate
26-16 federal agencies, determines that the expenditures may be included
26-17 without adversely affecting federal matching funding for the child
26-18 health plan provided under this chapter.
26-19 ARTICLE 2. SCHOOL FINANCE
26-20 SECTION 2.01. Section 21.402(a), Education Code, is amended
26-21 to read as follows:
26-22 (a) Except as provided by Subsection (d), (e), or (f), a
26-23 school district must pay each classroom teacher, full-time
26-24 librarian, full-time counselor certified under Subchapter B, or
26-25 full-time school nurse not less than the minimum monthly salary,
26-26 based on the employee's level of experience, determined by the
26-27 following formula:
27-1 MS = SF X FS
27-2 where:
27-3 "MS" is the minimum monthly salary;
27-4 "SF" is the applicable salary factor specified by Subsection
27-5 (c); and
27-6 "FS" is the amount, as determined by the commissioner under
27-7 Subsection (b), of state and local funds per weighted student
27-8 available to a district eligible to receive state assistance under
27-9 Section 42.302 with an enrichment tax rate, as defined by Section
27-10 42.302, equal to the maximum rate authorized under Section 42.303,
27-11 except that the amount of state and local funds per weighted
27-12 student does not include the amount attributable to the increase in
27-13 the guaranteed level made by H.B. No. 3343, Acts of the 77th
27-14 Legislature, Regular Session, 2001.
27-15 SECTION 2.02. Effective September 1, 2001, Section
27-16 41.002(a), Education Code, is amended to read as follows:
27-17 (a) A school district may not have a wealth per student that
27-18 exceeds $300,000 [$295,000].
27-19 SECTION 2.03. Effective September 1, 2002, Section
27-20 41.002(a), Education Code, is amended to read as follows:
27-21 (a) A school district may not have a wealth per student that
27-22 exceeds $305,000 [$295,000].
27-23 SECTION 2.04. Effective September 1, 2001, Subchapter E,
27-24 Chapter 42, Education Code, is amended by adding Section 42.2513 to
27-25 read as follows:
27-26 Sec. 42.2513. ADDITIONAL STATE AID FOR CERTAIN SCHOOL
27-27 DISTRICTS. (a) A school district, other than a district that is
28-1 required to take action under Chapter 41 to reduce its wealth per
28-2 student to the equalized wealth level, is entitled to state aid in
28-3 an amount, as determined by the commissioner, according to the
28-4 formula:
28-5 ASA = (IGL X WADA X DTR X 100) - AIFE
28-6 where:
28-7 "ASA" is the amount of additional state aid to which the
28-8 district is entitled;
28-9 "IGL" is the increase made by H.B. No. 3343, Acts of the 77th
28-10 Legislature, Regular Session, 2001, to the guaranteed level of
28-11 state and local funds per weighted student per cent of tax effort
28-12 under Section 42.302;
28-13 "WADA" is the number of students in weighted average daily
28-14 attendance, as determined under Section 42.302;
28-15 "DTR" is the district enrichment tax rate of the school
28-16 district, as determined under Sections 42.253 and 42.302; and
28-17 "AIFE" is the amount of:
28-18 (1) additional state aid allocated to the district
28-19 because of increases in funding elements under this chapter made by
28-20 H.B. No. 3343, Acts of the 77th Legislature, Regular Session, 2001;
28-21 or
28-22 (2) reductions in payments required under Chapter 41
28-23 because of the increase made by H.B. No. 3343, Acts of the 77th
28-24 Legislature, Regular Session, 2001, to the equalized wealth level.
28-25 (b) For purposes of Subsection (a), for the 2002-2003 school
28-26 year, the increase to the guaranteed level of state and local funds
28-27 per weighted student per cent of tax effort ("IGL") is reduced for
29-1 each school district eligible for additional state assistance under
29-2 this section by the amount determined by the following formula:
29-3 RGL = (DPV2/WADA2/10,000) - (DPV1/WADA1/10,000)
29-4 where:
29-5 "RGL" is the reduction in the guaranteed level of state and
29-6 local funds per weighted student per cent of tax effort;
29-7 "DPV2" is the taxable value of property in the school
29-8 district determined under Subchapter M, Chapter 403, Government
29-9 Code, for the 2002-2003 school year;
29-10 "WADA2" is the number of students in weighted average daily
29-11 attendance as determined under Section 42.302 for the 2002-2003
29-12 school year;
29-13 "DPV1" is the taxable value of property in the school
29-14 district for the 2001-2002 school year; and
29-15 "WADA1" is the number of students in weighted average daily
29-16 attendance for the 2001-2002 school year.
29-17 (c) Subsection (b) does not apply if the application of the
29-18 formula provided by that subsection would result in an increase in
29-19 the increase to the guaranteed level of state and local funds per
29-20 weighted student per cent of tax effort ("IGL").
29-21 (d) For purposes of Subsection (a), additional state aid
29-22 allocated to a school district because of increases in funding
29-23 elements ("AIFE") does not include additional state aid allocated
29-24 to the district under Section 42.2514.
29-25 (e) Of the amount appropriated to the agency for purposes of
29-26 the Foundation School Program for the state fiscal biennium ending
29-27 August 31, 2003, the commissioner may not use more than $37 million
30-1 to provide additional state assistance under this section. If the
30-2 amount to which school districts are entitled for a fiscal year
30-3 exceeds the amount available under this subsection, the
30-4 commissioner shall reduce the amount of additional state assistance
30-5 to each district in the manner provided by Section 42.253(h).
30-6 (f) The commissioner may adopt rules to implement this
30-7 section. A determination by the commissioner under this section is
30-8 final and may not be appealed.
30-9 (g) This section expires September 1, 2003.
30-10 SECTION 2.05. Effective September 1, 2002, Subchapter E,
30-11 Chapter 42, Education Code, is amended by adding Section 42.2514 to
30-12 read as follows:
30-13 Sec. 42.2514. ADDITIONAL STATE AID FOR SCHOOL EMPLOYEE
30-14 BENEFITS. (a) In this section, "participating charter school"
30-15 means an open-enrollment charter school that participates in the
30-16 uniform group coverage program established under Article 3.50-7,
30-17 Insurance Code.
30-18 (b) For each school year, a school district, including a
30-19 school district that is otherwise ineligible for state aid under
30-20 this chapter, or a participating charter school is entitled to
30-21 state aid in an amount, as determined by the commissioner, equal to
30-22 the difference, if any, between:
30-23 (1) the amount determined by multiplying the amount of
30-24 $900 or the amount specified in the General Appropriations Act for
30-25 that year for purposes of the state contribution under Section 9,
30-26 Article 3.50-7, Insurance Code, by the number of district or school
30-27 employees who participate in a group health coverage plan provided
31-1 by or through the district or school; and
31-2 (2) an amount equal to 75 percent of the amount of:
31-3 (A) additional funds to which the district or
31-4 school is entitled due to the increase made by H.B. No. 3343, Acts
31-5 of the 77th Legislature, Regular Session, 2001, to:
31-6 (i) the equalized wealth level under
31-7 Section 41.002; and
31-8 (ii) the guaranteed level of state and
31-9 local funds per weighted student per cent of tax effort under
31-10 Section 42.302; or
31-11 (B) additional state aid to which the district
31-12 is entitled under Section 42.2513.
31-13 (c) A school district or participating charter school may
31-14 use state aid received under this section only to pay contributions
31-15 under a group health coverage plan for district or school
31-16 employees.
31-17 (d) A determination by the commissioner under this section
31-18 is final and may not be appealed.
31-19 (e) The commissioner may adopt rules to implement this
31-20 section.
31-21 SECTION 2.06. Section 42.253, Education Code, is amended by
31-22 adding Subsection (e-1) to read as follows:
31-23 (e-1) For the 2003-2004, 2004-2005, 2005-2006, 2006-2007,
31-24 2007-2008, or 2008-2009 school year, the limit authorized under
31-25 Subsection (e) is increased by an amount equal to the portion of a
31-26 school district's maintenance and operations tax for that year
31-27 necessary for the district, when added to state funds received
32-1 under this chapter for that portion of the tax, to comply with
32-2 Section 3, Article 3.50-9, Insurance Code. For the 2005-2006 and
32-3 2007-2008 school years, the limit authorized under Subsection (e)
32-4 does not include any portion of a school district's maintenance and
32-5 operations tax rate for which the limit under Subsection (e)
32-6 applicable to the district was increased under this subsection. The
32-7 commissioner may adopt rules necessary to administer this
32-8 subsection. A determination of the commissioner under this
32-9 subsection is final and may not be appealed. This subsection
32-10 expires September 1, 2009.
32-11 SECTION 2.07. Subchapter E, Chapter 42, Education Code, is
32-12 amended by adding Section 42.2591 to read as follows:
32-13 Sec. 42.2591. USE OF CERTAIN FUNDS. (a) For the 2001-2002
32-14 school year, the commissioner shall certify to each school district
32-15 the amount of:
32-16 (1) additional funds to which the district is entitled
32-17 due to the increase made by H.B. No. 3343, Acts of the 77th
32-18 Legislature, Regular Session, 2001, to:
32-19 (A) the equalized wealth level under Section
32-20 41.002; or
32-21 (B) the guaranteed level of state and local
32-22 funds per weighted student per cent of tax effort under Section
32-23 42.302; or
32-24 (2) additional state aid to which the district is
32-25 entitled under Section 42.2513.
32-26 (b) Notwithstanding any other provision of this code, a
32-27 school district may use the amount of funds certified for the
33-1 district under Subsection (a) for any lawful purpose, including:
33-2 (1) a nonrecurring expense, including a capital
33-3 outlay; or
33-4 (2) debt service.
33-5 (c) A determination by the commissioner under this section
33-6 is final and may not be appealed.
33-7 (d) The commissioner may adopt rules to implement this
33-8 section.
33-9 (e) This section expires September 1, 2002.
33-10 SECTION 2.08. Effective September 1, 2002, Subchapter E,
33-11 Chapter 42, Education Code, is amended by adding Section 42.260 to
33-12 read as follows:
33-13 Sec. 42.260. USE OF CERTAIN FUNDS. (a) In this section,
33-14 "participating charter school" has the meaning assigned by Section
33-15 42.2514.
33-16 (b) For each year, the commissioner shall certify to each
33-17 school district or participating charter school the amount of:
33-18 (1) additional funds to which the district or school
33-19 is entitled due to the increase made by H.B. No. 3343, Acts of the
33-20 77th Legislature, Regular Session, 2001, to:
33-21 (A) the equalized wealth level under Section
33-22 41.002; or
33-23 (B) the guaranteed level of state and local
33-24 funds per weighted student per cent of tax effort under Section
33-25 42.302; or
33-26 (2) additional state aid to which the district or
33-27 school is entitled under Section 42.2513.
34-1 (c) Notwithstanding any other provision of this code, a
34-2 school district or participating charter school may use the
34-3 following amount of funds only to pay contributions under a group
34-4 health coverage plan for district or school employees:
34-5 (1) an amount equal to 75 percent of the amount
34-6 certified for the district or school under Subsection (b); or
34-7 (2) if the following amount is less than the amount
34-8 specified by Subdivision (1), the sum of:
34-9 (A) the amount determined by multiplying the
34-10 amount of $900 or the amount specified in the General
34-11 Appropriations Act for that year for purposes of the state
34-12 contribution under Section 9, Article 3.50-7, Insurance Code, by
34-13 the number of district or school employees who participate in a
34-14 group health coverage plan provided by or through the district or
34-15 school; and
34-16 (B) the difference between the amount necessary
34-17 for the district or school to comply with Section 3, Article
34-18 3.50-9, Insurance Code, for the school year and the amount the
34-19 district or school is required to use to provide health coverage
34-20 under Section 2 of that article for that year.
34-21 (d) A determination by the commissioner under this section
34-22 is final and may not be appealed.
34-23 (e) The commissioner may adopt rules to implement this
34-24 section.
34-25 SECTION 2.09. Effective September 1, 2001, Section 42.302(a),
34-26 Education Code, is amended to read as follows:
34-27 (a) Each school district is guaranteed a specified amount
35-1 per weighted student in state and local funds for each cent of tax
35-2 effort over that required for the district's local fund assignment
35-3 up to the maximum level specified in this subchapter. The amount
35-4 of state support, subject only to the maximum amount under Section
35-5 42.303, is determined by the formula:
35-6 GYA = (GL X WADA X DTR X 100) - LR
35-7 where:
35-8 "GYA" is the guaranteed yield amount of state funds to be
35-9 allocated to the district;
35-10 "GL" is the dollar amount guaranteed level of state and local
35-11 funds per weighted student per cent of tax effort, which is $25.81
35-12 [$24.99] or a greater amount for any year provided by
35-13 appropriation;
35-14 "WADA" is the number of students in weighted average daily
35-15 attendance, which is calculated by dividing the sum of the school
35-16 district's allotments under Subchapters B and C, less any allotment
35-17 to the district for transportation, any allotment under Section
35-18 42.158, and 50 percent of the adjustment under Section 42.102, by
35-19 the basic allotment for the applicable year;
35-20 "DTR" is the district enrichment tax rate of the school
35-21 district, which is determined by subtracting the amounts specified
35-22 by Subsection (b) from the total amount of maintenance and
35-23 operations taxes collected by the school district for the
35-24 applicable school year and dividing the difference by the quotient
35-25 of the district's taxable value of property as determined under
35-26 Subchapter M, Chapter 403, Government Code, or, if applicable,
35-27 under Section 42.2521, divided by 100; and
36-1 "LR" is the local revenue, which is determined by multiplying
36-2 "DTR" by the quotient of the district's taxable value of property
36-3 as determined under Subchapter M, Chapter 403, Government Code, or,
36-4 if applicable, under Section 42.2521, divided by 100.
36-5 SECTION 2.10. Effective September 1, 2002, Section 42.302(a),
36-6 Education Code, is amended to read as follows:
36-7 (a) Each school district is guaranteed a specified amount
36-8 per weighted student in state and local funds for each cent of tax
36-9 effort over that required for the district's local fund assignment
36-10 up to the maximum level specified in this subchapter. The amount
36-11 of state support, subject only to the maximum amount under Section
36-12 42.303, is determined by the formula:
36-13 GYA = (GL X WADA X DTR X 100) - LR
36-14 where:
36-15 "GYA" is the guaranteed yield amount of state funds to be
36-16 allocated to the district;
36-17 "GL" is the dollar amount guaranteed level of state and local
36-18 funds per weighted student per cent of tax effort, which is $27.14
36-19 [$24.99] or a greater amount for any year provided by
36-20 appropriation;
36-21 "WADA" is the number of students in weighted average daily
36-22 attendance, which is calculated by dividing the sum of the school
36-23 district's allotments under Subchapters B and C, less any allotment
36-24 to the district for transportation, any allotment under Section
36-25 42.158, and 50 percent of the adjustment under Section 42.102, by
36-26 the basic allotment for the applicable year;
36-27 "DTR" is the district enrichment tax rate of the school
37-1 district, which is determined by subtracting the amounts specified
37-2 by Subsection (b) from the total amount of maintenance and
37-3 operations taxes collected by the school district for the
37-4 applicable school year and dividing the difference by the quotient
37-5 of the district's taxable value of property as determined under
37-6 Subchapter M, Chapter 403, Government Code, or, if applicable,
37-7 under Section 42.2521, divided by 100; and
37-8 "LR" is the local revenue, which is determined by multiplying
37-9 "DTR" by the quotient of the district's taxable value of property
37-10 as determined under Subchapter M, Chapter 403, Government Code, or,
37-11 if applicable, under Section 42.2521, divided by 100.
37-12 SECTION 2.11. Section 26.08, Tax Code, is amended by adding
37-13 Subsections (k)-(m) to read as follows:
37-14 (k) For purposes of this section, for the 2003, 2004, 2005,
37-15 2006, 2007, or 2008 tax year, for a school district that is
37-16 entitled to state funds under Section 4(a-1), (a-2), (a-3), (a-4),
37-17 (a-5), or (a-6), Article 3.50-9, Insurance Code, the rollback tax
37-18 rate of the district is the sum of:
37-19 (1) the tax rate that, applied to the current total
37-20 value for the district, would impose taxes in an amount that, when
37-21 added to state funds that would be distributed to the district
37-22 under Chapter 42, Education Code, for the school year beginning in
37-23 the current tax year using that tax rate, would provide the same
37-24 amount of state funds distributed under Chapter 42 and maintenance
37-25 and operations taxes of the district per student in weighted
37-26 average daily attendance for that school year that would have been
37-27 available to the district in the preceding year if the funding
38-1 elements for Chapters 41 and 42, Education Code, for the current
38-2 year had been in effect for the preceding year;
38-3 (2) the tax rate that, applied to the current total
38-4 value for the district, would impose taxes in the amount that, when
38-5 added to state funds that would be distributed to the district
38-6 under Chapter 42, Education Code, for the school year beginning in
38-7 the current tax year using that tax rate, permits the district to
38-8 comply with Section 3, Article 3.50-9, Insurance Code;
38-9 (3) the rate of $0.06 per $100 of taxable value; and
38-10 (4) the district's current debt rate.
38-11 (l) For purposes of Subsection (k), the amount of state
38-12 funds that would have been available to a school district in the
38-13 preceding year is computed using the maximum tax rate for the
38-14 current year under Section 42.253(e), Education Code.
38-15 (m) Subsections (k) and (l) and this subsection expire
38-16 January 1, 2009.
38-17 ARTICLE 3. CONFORMING AMENDMENTS
38-18 SECTION 3.01. Article 3.50-4, Insurance Code, is amended by
38-19 adding Section 3A to read as follows:
38-20 Sec. 3A. TRANSFER OF RECORDS. The trustee shall transfer
38-21 from the program established under this article all records
38-22 relating to active employees participating in the uniform group
38-23 coverage program established under Article 3.50-7 of this code not
38-24 later than the date on which the program of coverages provided
38-25 under Article 3.50-7 of this code is implemented.
38-26 SECTION 3.02. Section 1, Article 3.50-4, Insurance Code, is
38-27 amended to read as follows:
39-1 Sec. 1. SHORT TITLE. This article may be cited as the Texas
39-2 Public School Retired Employees Group Insurance Act.
39-3 SECTION 3.03. Sections 2(3) and (4), Article 3.50-4,
39-4 Insurance Code, are amended to read as follows:
39-5 (3) "Dependent" means:
39-6 (A) a spouse of a retiree [or active member];
39-7 (B) a retiree's[, an active member's,] or a
39-8 deceased active member's unmarried child who is younger than 25
39-9 years of age including:
39-10 (i) an adopted child;
39-11 (ii) a foster child, a stepchild, or other
39-12 child who is in a regular parent-child relationship; and
39-13 (iii) a recognized natural child; and
39-14 (C) a retiree's [or active member's] recognized
39-15 natural child, adopted child, foster child, stepchild, or other
39-16 child who is in a regular parent-child relationship and who lives
39-17 with or whose care is provided by the retiree[, active member,] or
39-18 surviving spouse on a regular basis, regardless of the child's age,
39-19 if the child is mentally retarded or physically incapacitated to
39-20 such an extent as to be dependent on the retiree[, active member,]
39-21 or surviving spouse for care or support, as determined by the
39-22 trustee, or in the case of a deceased active member, a recognized
39-23 natural child, adopted child, foster child, stepchild, or other
39-24 child who was in a regular parent-child relationship and who lived
39-25 with or whose care was provided by the deceased active member on a
39-26 regular basis, regardless of the child's age, if the child is
39-27 mentally retarded or physically incapacitated to such an extent as
40-1 to have been dependent on the deceased active member or surviving
40-2 spouse for care or support, as determined by the trustee.
40-3 (4) "Fund" means the retired [Texas public] school
40-4 employees group insurance fund.
40-5 SECTION 3.04. Section 3(a), Article 3.50-4, Insurance Code,
40-6 is amended to read as follows:
40-7 (a) The Texas Public School Retired Employees Group
40-8 Insurance Program is established to provide for an insurance plan
40-9 or plans under this article.
40-10 SECTION 3.05. Section 5(a), Article 3.50-4, Insurance Code,
40-11 is amended to read as follows:
40-12 (a) The trustee may adopt rules, plans, procedures, and
40-13 orders reasonably necessary to implement this article, including:
40-14 (1) establishment of minimum benefit and financing
40-15 standards for group insurance coverage to be provided to all
40-16 retirees, [active employees,] dependents, surviving spouses, and
40-17 surviving dependent children;
40-18 (2) establishment of basic and optional group coverage
40-19 to be provided to retirees, [active employees,] dependents,
40-20 surviving spouses, and surviving dependent children;
40-21 (3) establishment of the procedures for contributions
40-22 and deductions;
40-23 (4) establishment of periods for enrollment and
40-24 selection of optional coverage and procedures for enrolling and
40-25 exercising options under the plan;
40-26 (5) determination of methods and procedures for claims
40-27 administration;
41-1 (6) study of the operation of all insurance coverage
41-2 provided under this article;
41-3 (7) administration of the fund;
41-4 (8) adoption of a timetable for the development of
41-5 minimum benefit and financial standards for group insurance
41-6 coverage, establishment of group insurance plans, and the taking of
41-7 bids for and awarding of contracts for insurance plans; and
41-8 (9) contracting with an independent and experienced
41-9 group insurance consultant or actuary[, who does not receive
41-10 insurance commissions from any insurance company,] for advice and
41-11 counsel in implementing and administering this program.
41-12 SECTION 3.06. Sections 8(e) and (i), Article 3.50-4,
41-13 Insurance Code, are amended to read as follows:
41-14 (e) The trustee may contract for and make available to all
41-15 retirees, dependents, surviving spouses, and surviving dependent
41-16 children optional group health benefit plans in addition to the
41-17 basic plans. The optional coverage may include a smaller
41-18 deductible, lower coinsurance, or additional categories of benefits
41-19 permitted under Subsection (b) of this section to provide
41-20 additional levels of coverages and benefits. The trustee may
41-21 utilize a portion of the funds received for the Texas Public School
41-22 Retired Employees Group Insurance Program to offset some portion of
41-23 costs paid by the retiree for optional coverage if such utilization
41-24 does not reduce the period the program is projected to remain
41-25 financially solvent by more than one year in a biennium. Any
41-26 additional contributions for these optional plans shall be paid for
41-27 by the retiree, surviving spouse, or surviving dependent children.
42-1 (i) In contracting for any benefits under this article,
42-2 competitive bidding shall be required under rules adopted by the
42-3 trustee. [The rules must require that prospective bidders provide
42-4 information, for each area consisting of a county and all adjacent
42-5 counties, on the number and types of qualified providers willing to
42-6 participate in the coverage or plan for which the bid is made. The
42-7 rules may provide criteria to determine qualified providers. The
42-8 trustee shall consider the information before awarding a contract
42-9 but may not require a bidder to demonstrate a minimum standard of
42-10 provider participation.] The trustee is not required to select the
42-11 lowest bid but may consider also ability to service contracts, past
42-12 experiences, financial stability, and other relevant criteria. If
42-13 the trustee awards a contract to an entity whose bid deviates from
42-14 that advertised, the deviation shall be recorded and the reasons
42-15 for the deviation shall be fully justified in the minutes of the
42-16 next meeting of the trustee.
42-17 SECTION 3.07. Section 9, Article 3.50-4, Insurance Code, is
42-18 amended to read as follows:
42-19 Sec. 9. BENEFIT CERTIFICATES. At such times, or upon such
42-20 events, as designated by the trustee, each insurance carrier shall
42-21 issue to each retiree, [active employee,] surviving spouse, or
42-22 surviving dependent child insured under this article a certificate
42-23 of insurance that:
42-24 (1) states the benefits to which the person is
42-25 entitled;
42-26 (2) states to whom the benefits are payable;
42-27 (3) states to whom the claims must be submitted; and
43-1 (4) summarizes the provisions of the policy
43-2 principally affecting the person.
43-3 SECTION 3.08. Section 10(a), Article 3.50-4, Insurance Code,
43-4 is amended to read as follows:
43-5 (a) Not later than the 180th day after the end of each state
43-6 fiscal year, the trustee shall make a written report to the Texas
43-7 Department [State Board] of Insurance concerning the insurance
43-8 coverages provided and the benefits and services being received by
43-9 persons insured under this article.
43-10 SECTION 3.09. Section 12, Article 3.50-4, Insurance Code, is
43-11 amended to read as follows:
43-12 Sec. 12. DEATH CLAIMS: BENEFICIARIES. The amount of group
43-13 life insurance and group accidental death and dismemberment
43-14 insurance covering a retiree, [active employee,] surviving spouse,
43-15 dependent, or surviving dependent child at the date of death shall
43-16 be paid, on the establishment of a valid claim, only:
43-17 (1) to the beneficiary or beneficiaries designated by
43-18 the person in a signed and witnessed written document received
43-19 before death in the trustee's office; or
43-20 (2) if no beneficiary is properly designated or in
43-21 existence, to persons in accordance with the trustee's death
43-22 benefit provisions in Subsection (b), Section 824.103, Government
43-23 Code.
43-24 SECTION 3.10. Section 13, Article 3.50-4, Insurance Code, is
43-25 amended to read as follows:
43-26 Sec. 13. AUTOMATIC COVERAGE. A retiree [or active employee]
43-27 who applies during an enrollment period may not be denied any of
44-1 the group insurance basic coverage provided under this article
44-2 unless the person has been found under Section 18A of this article
44-3 to have defrauded or attempted to defraud the Texas Public School
44-4 Retired Employees Group Insurance Program.
44-5 SECTION 3.11. Section 15, Article 3.50-4, Insurance Code, is
44-6 amended to read as follows:
44-7 Sec. 15. RETIRED SCHOOL EMPLOYEES GROUP INSURANCE FUND.
44-8 (a) The retired school employees group insurance fund is created.
44-9 The comptroller is the custodian of the fund, and the trustee shall
44-10 administer the fund. All contributions from active employees,
44-11 retirees, and the state, contributions for optional coverages,
44-12 investment income, appropriations for implementation of this
44-13 program, and other money required or authorized to be paid into the
44-14 fund shall be paid into the fund. From the fund shall be paid,
44-15 without state fiscal year limitation, the appropriate premiums to
44-16 the carrier or carriers providing group coverage under the plan or
44-17 plans under this article, claims for benefits under the group
44-18 coverage, and the amounts expended by the trustee for
44-19 administration of the program. The appropriate portion of the
44-20 contributions to the fund to provide for incurred but unreported
44-21 claim reserves and contingency reserves, as determined by the
44-22 trustee, shall be retained in the fund.
44-23 (b) The trustee shall transfer the amounts deducted from
44-24 annuities for contributions into the fund.
44-25 (c) Expenses for the development and administration of the
44-26 program shall be spent as provided by a budget adopted by the
44-27 trustee.
45-1 (d) The trustee may invest and reinvest the money in the
45-2 fund as provided by Subchapter D, Chapter 825, Government Code, for
45-3 assets of the Teacher Retirement System of Texas.
45-4 SECTION 3.12. Section 18A, Article 3.50-4, Insurance Code,
45-5 is amended to read as follows:
45-6 Sec. 18A. EXPULSION FROM PROGRAM FOR FRAUD. (a) After
45-7 notice and hearing as provided by this section, the trustee may
45-8 expel from participation in the Texas Public School Retired
45-9 Employees Group Insurance Program any retiree, [active employee,]
45-10 surviving spouse, dependent, or surviving dependent child who
45-11 submits a fraudulent claim under, or has defrauded or attempted to
45-12 defraud, any health benefits plan offered under the program.
45-13 (b) On its motion or on the receipt of a complaint, the
45-14 trustee may call and hold a hearing to determine whether a person
45-15 has submitted a fraudulent claim under, or has defrauded or
45-16 attempted to defraud, any health benefits plan offered under the
45-17 Texas Public School Retired Employees Group Insurance Program.
45-18 (c) A proceeding under this section is a contested case
45-19 under Chapter 2001, Government Code [the Administrative Procedure
45-20 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
45-21 Statutes)].
45-22 (d) If the trustee, at the conclusion of the hearing, issues
45-23 a decision that finds that the accused submitted a fraudulent claim
45-24 or has defrauded or attempted to defraud any health benefits plan
45-25 offered under the Texas Public School Retired Employees Group
45-26 Insurance Program, the trustee shall expel the person from
45-27 participation in the program.
46-1 (e) The substantial evidence rule shall be used on any
46-2 appeal of a decision of the trustee under this section.
46-3 (f) A person expelled from the Texas Public School Retired
46-4 Employees Group Insurance Program may not be insured by any health
46-5 insurance plan offered by the program for a period, to be
46-6 determined by the trustee, of up to five years from the date the
46-7 expulsion takes effect.
46-8 SECTION 3.13. Section 18B(a), Article 3.50-4, Insurance
46-9 Code, is amended to read as follows:
46-10 (a) Section 825.507, Government Code, concerning the
46-11 confidentiality and disclosure of records, applies to [of
46-12 information in] records that are in the custody of the Teacher
46-13 Retirement System of Texas or[, applies to information in records
46-14 that are] in the custody of an administrator, carrier, agent,
46-15 attorney, consultant, or governmental body acting in cooperation
46-16 with or on behalf of the retirement system regarding retirees,
46-17 active employees, annuitants, or beneficiaries under the Texas
46-18 Public School Retired Employees Group Insurance Program.
46-19 SECTION 3.14. Sections 18C(c), (d), and (i), Article 3.50-4,
46-20 Insurance Code, are amended to read as follows:
46-21 (c) The trustee, the Texas public school retired employees
46-22 group insurance program, the retired school employees group
46-23 insurance fund, and the board of trustees, officers, advisory
46-24 committee members, and employees of the trustee are not liable for
46-25 damages arising from the acts or omissions of health care providers
46-26 who are participating health care providers in the coordinated care
46-27 network established by the trustee. Those health care providers
47-1 are independent contractors and are responsible for their own acts
47-2 and omissions.
47-3 (d) The trustee, the Texas public school retired employees
47-4 group insurance program, the retired school employees group
47-5 insurance fund, or a member of a credentialing committee, or the
47-6 board of trustees, officers, advisory committee members, or
47-7 employees of the trustee are not liable for damages arising from
47-8 any act, statement, determination, recommendation made, or act
47-9 reported, without malice, in the course of the evaluation of the
47-10 qualifications of health care providers or of the patient care
47-11 rendered by those providers.
47-12 (i) A credentialing committee, a person participating in a
47-13 credentialing review, a health care provider, the trustee, the
47-14 Texas public school retired employees group insurance program, or
47-15 the board of trustees, officers, advisory committee members, or
47-16 employees of the trustee that are named as defendants in any civil
47-17 action filed as a result of participation in the credentialing
47-18 process may use otherwise confidential information obtained for
47-19 legitimate internal business and professional purposes, including
47-20 use in their own defense. Use of information under this subsection
47-21 does not constitute a waiver of the confidential and privileged
47-22 nature of the information.
47-23 SECTION 3.15. Section 19, Article 3.50-4, Insurance Code, is
47-24 amended to read as follows:
47-25 Sec. 19. ASSISTANCE. In implementing and administering this
47-26 article, the Texas Department [State Board] of Insurance, as
47-27 requested by the trustee, shall assist the trustee in carrying out
48-1 this article.
48-2 SECTION 3.16. Article 3.51, Insurance Code, is amended by
48-3 adding Section 3 to read as follows:
48-4 Sec. 3. (a) Notwithstanding any other provision of this
48-5 article, a common or independent school district or any other
48-6 agency or subdivision of the public school system of this state
48-7 that is participating in the uniform group coverage program
48-8 established under Article 3.50-7 of this code may not procure
48-9 contracts under this article for health insurance coverage and may
48-10 not renew a health insurance contract procured under this article
48-11 after the date on which the program of coverages provided under
48-12 Article 3.50-7 of this code is implemented.
48-13 (b) This section does not preclude an entity described by
48-14 Subsection (a) of this section from procuring contracts under this
48-15 article for the provision of optional insurance coverages for the
48-16 employees of the entity.
48-17 SECTION 3.17. Article 26.036, Insurance Code, is amended by
48-18 adding Subsection (c) to read as follows:
48-19 (c) An independent school district that is participating in
48-20 the uniform group coverage program established under Article 3.50-7
48-21 of this code may not participate in the small employer market under
48-22 this article for health insurance coverage and may not renew a
48-23 health insurance contract obtained in accordance with this article
48-24 after the date on which the program of coverages provided under
48-25 Article 3.50-7 of this code is implemented. This subsection does
48-26 not affect a contract for the provision of optional coverages not
48-27 included in a health benefits plan under this chapter.
49-1 SECTION 3.18. Section 22.004, Education Code, is amended to
49-2 read as follows:
49-3 Sec. 22.004. GROUP HEALTH BENEFITS FOR SCHOOL EMPLOYEES. (a)
49-4 A [Each] district shall participate in the uniform group coverage
49-5 program established under Article 3.50-7, Insurance Code, as
49-6 provided by Section 5 of that article.
49-7 (b) A district that does not participate in the program
49-8 described by Subsection (a) shall make available to its employees
49-9 group health coverage provided by a risk pool established by one or
49-10 more school districts under Chapter 172, Local Government Code, or
49-11 under a policy of insurance or group contract issued by an insurer,
49-12 a company subject to Chapter 20, Insurance Code, or a health
49-13 maintenance organization under the Texas Health Maintenance
49-14 Organization Act (Chapter 20A, Vernon's Texas Insurance Code). The
49-15 coverage must meet the substantive coverage requirements of Article
49-16 3.51-6, Insurance Code, and any other law applicable to group
49-17 health insurance policies or contracts issued in this state. The
49-18 coverage must include major medical treatment but may exclude
49-19 experimental procedures. In this subsection, "major medical
49-20 treatment" means a medical, surgical, or diagnostic procedure for
49-21 illness or injury. The coverage may include managed care or
49-22 preventive care and must be comparable to the basic health coverage
49-23 provided under the Texas Employees Uniform Group Insurance Benefits
49-24 Act (Article 3.50-2, Vernon's Texas Insurance Code). The board of
49-25 trustees of the Teacher Retirement System of Texas shall adopt
49-26 rules to determine whether a school district's group health
49-27 coverage is comparable to the basic health coverage specified by
50-1 this subsection. The rules must provide for consideration of the
50-2 following factors concerning the district's coverage in determining
50-3 whether the district's coverage is comparable to the basic health
50-4 coverage specified by this subsection:
50-5 (1) the deductible amount for service provided inside
50-6 and outside of the network;
50-7 (2) the coinsurance percentages for service provided
50-8 inside and outside of the network;
50-9 (3) the maximum amount of coinsurance payments a
50-10 covered person is required to pay;
50-11 (4) the amount of the copayment for an office visit;
50-12 (5) the schedule of benefits and the scope of
50-13 coverage;
50-14 (6) the lifetime maximum benefit amount; and
50-15 (7) verification that the coverage is issued by a
50-16 provider licensed to do business in this state by the Texas
50-17 Department of Insurance or is provided by a risk pool authorized
50-18 under Chapter 172, Local Government Code, or that a district is
50-19 capable of covering the assumed liabilities in the case of coverage
50-20 provided through district self-insurance.
50-21 (c) [(b)] The cost of the coverage provided under the
50-22 program described by Subsection (a) shall be paid by the state, the
50-23 district, and the employees in the manner provided by Article
50-24 3.50-7, Insurance Code. The cost of coverage provided under a plan
50-25 adopted under Subsection (b) shall [may] be shared by the employees
50-26 and the district using the contributions by the state described by
50-27 Section 9, Article 3.50-7, Insurance Code, or by Article 3.50-8,
51-1 Insurance Code.
51-2 (d) [(c)] Each district shall report the district's
51-3 compliance with this section [subsection] to the executive director
51-4 of the Teacher Retirement System of Texas not later than March 1 of
51-5 each even-numbered year in the manner required by the board of
51-6 trustees of the Teacher Retirement System of Texas. For a district
51-7 that does not participate in the program described by Subsection
51-8 (a), the [The] report must be based on the district group health
51-9 coverage plan in effect during the current plan year and must
51-10 include:
51-11 (1) appropriate documentation of:
51-12 (A) the district's contract for group health
51-13 coverage with a provider licensed to do business in this state by
51-14 the Texas Department of Insurance or a risk pool authorized under
51-15 Chapter 172, Local Government Code; or
51-16 (B) a resolution of the board of trustees of the
51-17 district authorizing a self-insurance plan for district employees
51-18 and of the district's review of district ability to cover the
51-19 liability assumed;
51-20 (2) the schedule of benefits;
51-21 (3) the premium rate sheet, including the amount paid
51-22 by the district and employee;
51-23 (4) the number of employees covered by the [each]
51-24 health coverage plan offered by the district; and
51-25 (5) any other information considered appropriate by
51-26 the executive director of the Teacher Retirement System of Texas.
51-27 (e) [(d)] Based on the criteria prescribed by Subsection (b)
52-1 [(a)], the executive director of the Teacher Retirement System of
52-2 Texas shall, for each district that does not participate in the
52-3 program described by Subsection (a), certify whether a district's
52-4 coverage is comparable to the basic health coverage provided under
52-5 the Texas Employees Uniform Group Insurance Benefits Act (Article
52-6 3.50-2, Vernon's Texas Insurance Code). If the executive director
52-7 of the Teacher Retirement System of Texas determines that the group
52-8 health coverage offered by a district is not comparable, the
52-9 executive director shall report that information to the district
52-10 and to the Legislative Budget Board. The executive director shall
52-11 submit a report to the legislature not later than September 1 of
52-12 each even-numbered year describing the status of each district's
52-13 group health coverage program based on the information contained in
52-14 the report required by Subsection (d) [(c)] and the certification
52-15 required by this subsection.
52-16 (f) [(e)] A school district that does not participate in the
52-17 program described by Subsection (a) may not contract with an
52-18 insurer, a company subject to Chapter 20, Insurance Code, or a
52-19 health maintenance organization to issue a policy or contract under
52-20 this section, or with any person to assist the school district in
52-21 obtaining or managing the policy or contract unless, before the
52-22 contract is entered into, the insurer, company, organization, or
52-23 person provides the district with an audited financial statement
52-24 showing the financial condition of the insurer, company,
52-25 organization, or person.
52-26 (g) [(f)] An insurer, a company subject to Chapter 20,
52-27 Insurance Code, or a health maintenance organization that issues a
53-1 policy or contract under this section and any person that assists
53-2 the school district in obtaining or managing the policy or contract
53-3 for compensation shall provide an annual audited financial
53-4 statement to the school district showing the financial condition of
53-5 the insurer, company, organization, or person.
53-6 (h) [(g)] An audited financial statement provided under this
53-7 section must be made in accordance with rules adopted by the
53-8 commissioner of insurance or state auditor, as applicable.
53-9 (i) Notwithstanding any other provision of this section, a
53-10 district participating in the uniform group coverage program
53-11 established under Article 3.50-7, Insurance Code, may not make
53-12 group health coverage available to its employees under this
53-13 section after the date on which the program of coverages provided
53-14 under Article 3.50-7, Insurance Code, is implemented.
53-15 (j) This section does not preclude a district that is
53-16 participating in the uniform group coverage program established
53-17 under Article 3.50-7, Insurance Code, from entering into contracts
53-18 to provide optional insurance coverages for the employees of the
53-19 district.
53-20 SECTION 3.19. Section 822.201(c), Government Code, is amended
53-21 to read as follows:
53-22 (c) Excluded from salary and wages are:
53-23 (1) expense payments;
53-24 (2) [,] allowances;
53-25 (3) [,] payments for unused vacation or sick leave;
53-26 (4) [,] maintenance or other nonmonetary compensation;
53-27 (5) [,] fringe benefits;
54-1 (6) [,] deferred compensation other than as provided
54-2 by Subsection (b)(3);
54-3 (7) [,] compensation that is not made pursuant to a
54-4 valid employment agreement;
54-5 (8) [,] payments received by an employee in a school
54-6 year that exceed $5,000 for teaching a driver education and traffic
54-7 safety course that is conducted outside regular classroom hours;
54-8 (9) [,] the benefit replacement pay a person earns as
54-9 a result of a payment made under Subchapter B or C, Chapter 661;
54-10 (10) supplemental compensation received by an employee
54-11 under Article 3.50-8, Insurance Code;[,] and
54-12 (11) any compensation not described in Subsection (b).
54-13 SECTION 3.20. Sections 7A, 20, and 21, Article 3.50-4,
54-14 Insurance Code, are repealed.
54-15 SECTION 3.21. Sections 3.02-3.14, 3.19, and 3.20 of this Act
54-16 take effect September 1, 2002.
54-17 ARTICLE 4. APPROPRIATION TRANSFERS
54-18 SECTION 4.01. On September 1, 2002, the comptroller shall
54-19 transfer the amount of $42 million from the retired school
54-20 employees group insurance fund created under Section 15, Article
54-21 3.50-4, Insurance Code, as amended by this Act, to the Texas school
54-22 employees uniform group coverage trust fund created under Section
54-23 8, Article 3.50-7, Insurance Code, as added by this Act. The
54-24 Teacher Retirement System of Texas shall use the amount transferred
54-25 under this section to establish and implement the uniform group
54-26 coverage program for school employees established under Article
54-27 3.50-7, Insurance Code, as added by this Act.
55-1 SECTION 4.02. A portion of the amounts appropriated in
55-2 Article III, S.B. No. 1, Acts of the 77th Legislature, Regular
55-3 Session, 2001, to the Texas Education Agency is allocated as
55-4 provided by this section:
55-5 (1) for the fiscal year ending August 31, 2002, the
55-6 amount appropriated under Strategy A.2.1.: FSP-Equalized
55-7 Operations is reduced by [