R E S O L U T I O N
1-1 BE IT RESOLVED by the House of Representatives of the State
1-2 of Texas, 77th Legislature, Regular Session, 2001, That House Rule
1-3 13, Section 9(a), be suspended in part as provided by House Rule
1-4 13, Section 9(f), to enable the conference committee appointed to
1-5 resolve the differences on House Bill 3343, relating to the
1-6 operation and funding of certain group coverage programs for
1-7 certain school and educational employees and their dependents, to
1-8 consider and take action on the following matters:
1-9 (1) House Rule 13, Sections 9(a)(1) and (4), are suspended
1-10 to permit the committee to add text changing Section 2, Article
1-11 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
1-12 to read as follows:
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 Explanation: This change is necessary to clarify who is a
3-23 dependent eligible for coverage under the new group coverage
3-24 program and to clarify that certain educational districts whose
3-25 employees are members of the Teacher Retirement System of Texas are
3-26 also eligible to participate in the program.
3-27 (2) House Rule 13, Section 9(a)(4), is suspended to permit
4-1 the committee to add text changing Sections 4(d) and (e), Article
4-2 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
4-3 to read as follows:
4-4 (d) During the initial period of eligibility, coverage
4-5 provided under the program may not be made subject to a preexisting
4-6 condition limitation.
4-7 (e) The trustee may offer optional coverages to employees
4-8 participating in the program. The trustee by rule may define the
4-9 types of optional coverages offered under this subsection.
4-10 Explanation: These changes are necessary to clarify that
4-11 preexisting condition limitations may not be imposed during the
4-12 initial eligibility, and to authorize the provision of certain
4-13 optional coverages to participating employees.
4-14 (3) House Rule 13, Section 9(a)(4), is suspended to permit
4-15 the committee to add text changing Section 5, Article 3.50-7,
4-16 Insurance Code, as added by SECTION 1.01, House Bill 3343, to read
4-17 as follows:
4-18 Sec. 5. PARTICIPATION IN PROGRAM BY SCHOOL DISTRICTS, OTHER
4-19 EDUCATIONAL DISTRICTS, AND REGIONAL EDUCATION SERVICE CENTERS. (a)
4-20 Effective September 1, 2002, each school district with 500 or fewer
4-21 employees and each regional education service center is required to
4-22 participate in the program.
4-23 (a-1) Effective September 1, 2002, a school district that,
4-24 on January 1, 2001, had more than 500 employees but not more than
4-25 1,000 employees may elect to participate in the program. A school
4-26 district that elects to participate in the program under this
4-27 subsection must notify the trustee of the election, in the manner
5-1 prescribed by the trustee, not later than September 30, 2001. This
5-2 subsection expires January 1, 2002.
5-3 (b) Effective September 1, 2005, a school district with more
5-4 than 500 employees may elect to participate in the program. A
5-5 school district that elects to participate under this subsection
5-6 shall apply for participation in the manner prescribed by the
5-7 trustee by rule.
5-8 (b-1) Notwithstanding Subsection (b) of this section, a
5-9 school district with more than 500 employees may elect to
5-10 participate in the program before September 1, 2005, if the trustee
5-11 determines that participation by districts in that category would
5-12 be administratively feasible and cost-effective. This subsection
5-13 expires September 1, 2005.
5-14 (c) In determining the number of employees of a school
5-15 district for purposes of Subsections (a) and (b) of this section,
5-16 school districts that, on January 1, 2001, were members of a risk
5-17 pool established under the authority of Chapter 172, Local
5-18 Government Code, as provided by Section 22.004, Education Code, may
5-19 elect to be treated as a single unit. A school district shall
5-20 elect whether to be considered as a member of a risk pool under
5-21 this section by notifying the trustee not later than September 1,
5-22 2001.
5-23 (d) A risk pool in existence on January 1, 2001, that, as of
5-24 that date, provided group health coverage to 500 or fewer school
5-25 district employees may elect to participate in the program.
5-26 (e) A school district with 500 or fewer employees that is a
5-27 member of a risk pool described by Subsection (c) of this section
6-1 that provides group health coverage to more than 500 school
6-2 district employees must elect, not later than September 1, 2001,
6-3 whether to be treated as a school district with 500 or fewer
6-4 employees or as part of a unit with more than 500 employees. The
6-5 school district must notify the trustee of the election, in the
6-6 manner prescribed by the trustee, not later than September 1, 2001.
6-7 (f) For purposes of this section, participation in the
6-8 program by school districts covered by a risk pool is limited to
6-9 school districts covered by the risk pool as of January 1, 2001.
6-10 (g) Notwithstanding Subsection (a) of this section, a school
6-11 district otherwise subject to Subsection (a) of this section that,
6-12 on January 1, 2001, was individually self-funded for the provision
6-13 of health coverage to its employees may elect to not participate in
6-14 the program.
6-15 (h) Notwithstanding Subsection (a) of this section, a school
6-16 district otherwise subject to Subsection (a) of this section that
6-17 is a party to a contract for the provision of insurance coverage to
6-18 the employees of the district that is in effect on September 1,
6-19 2002, is not required to participate in the program until the
6-20 expiration of the contract period. A school district subject to
6-21 this subsection shall notify the trustee in the manner prescribed
6-22 by the trustee. This subsection expires March 1, 2004.
6-23 (i) An educational district described by Section 2(6)(B) of
6-24 this article that, on January 1, 2001, has 500 or fewer employees
6-25 may elect not to participate in the program.
6-26 Explanation: This change is necessary to clarify the
6-27 participation in the group coverage program of educational
7-1 districts that are not school districts but whose employees are
7-2 members of the Teacher Retirement System of Texas, to add a January
7-3 1, 2001, date for determination of the size of a school district or
7-4 risk pool, and to authorize larger districts to participate before
7-5 September 1, 2005, if the Teacher Retirement System of Texas
7-6 authorizes that early participation.
7-7 (4) House Rule 13, Section 9(a)(4), is suspended to permit
7-8 the committee to add text changing Sections 7(c) and (e), Article
7-9 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
7-10 to read as follows:
7-11 (c) A participating employee may select coverage in any
7-12 coverage plan offered by the trustee. The employee is not required
7-13 to continue participation in the coverage plan initially selected
7-14 and may select a higher or lower tier coverage plan than the plan
7-15 initially selected by the employee in the manner provided by
7-16 trustee rule. If the combined contributions received from the
7-17 state and the employing participating entity under Section 9 of
7-18 this article exceed the cost of a coverage plan selected by the
7-19 employee, the employee may use the excess amount of contributions
7-20 to obtain coverage under a higher tier coverage plan, or to pay all
7-21 or part of the cost of coverage for the employee's dependents. A
7-22 married couple, both of whom are eligible for coverage under the
7-23 program, may pool the amount of contributions to which the couple
7-24 are entitled under the program to obtain coverage for themselves
7-25 and dependent coverage.
7-26 (e) Notwithstanding Subsection (d) of this section, a
7-27 participating entity may pay any portion of what otherwise would be
8-1 the employee share of premiums and other costs associated with the
8-2 coverage selected by the employee.
8-3 Explanation: These changes are necessary to specify that an
8-4 employee participating in the group coverage program may elect
8-5 higher or lower coverage plans, clarifies the use of contributions
8-6 for dependent coverage, and expands the authority to pay for part
8-7 of an employee's premiums to all participating entities.
8-8 (5) House Rule 13, Sections 9(a)(1) and (4), are suspended
8-9 to permit the committee to add text changing Section 9, Article
8-10 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
8-11 to read as follows:
8-12 Sec. 9. PAYMENT OF CONTRIBUTIONS FOR PROGRAM. (a) The state
8-13 shall assist employees of participating school districts and
8-14 charter schools in the purchase of group health coverage under this
8-15 article by providing for each covered employee the amount of $900
8-16 each state fiscal year or a greater amount as provided by the
8-17 General Appropriations Act. The state contribution shall be
8-18 distributed through the school finance formulas under Chapters 41
8-19 and 42, Education Code, and used by school districts and charter
8-20 schools as provided by Sections 42.2514 and 42.260, Education Code.
8-21 (b) The state shall assist employees of participating
8-22 regional education service centers and educational districts
8-23 described by Section 2(6)(B) of this article in the purchase of
8-24 group health coverage under this article by providing to the
8-25 employing service center for each covered employee the amount of
8-26 $900 each state fiscal year or a greater amount as provided by the
8-27 General Appropriations Act.
9-1 (c) A participating entity shall make contributions for the
9-2 program as provided by Article 3.50-9 of this code.
9-3 (d) An employee covered by the program shall pay that
9-4 portion of the cost of coverage selected by the employee that
9-5 exceeds the amount of the state contribution under Subsection (a)
9-6 or (b) of this section and the participating entity contribution
9-7 under Subsection (c) of this section. The employee may pay the
9-8 employee's contribution under this subsection from the amount
9-9 distributed to the employee under Article 3.50-8 of this code.
9-10 (e) Notwithstanding Subsection (d) of this section, a
9-11 participating entity may pay any portion of what otherwise would be
9-12 the employee share of premiums and other costs associated with the
9-13 coverage selected by the employee.
9-14 Explanation: This change is necessary to clarify how the
9-15 state contributions for the group coverage program will be made,
9-16 and to specify that educational districts that are not school
9-17 districts but whose employees are members of the Teacher Retirement
9-18 System of Texas are eligible for state contributions.
9-19 (6) House Rule 13, Sections 9(a)(4), is suspended to permit
9-20 the committee to add text changing Section 1, Article 3.50-8,
9-21 Insurance Code, as added by SECTION 1.02, House Bill 3343, by
9-22 adding a new definition of "cafeteria plan" to read as follows:
9-23 (1) "Cafeteria plan" means a plan as defined and authorized
9-24 by Section 125, Internal Revenue Code of 1986, and its subsequent
9-25 amendments.
9-26 Explanation: This change is necessary to clarify that
9-27 the reference in the bill to the use of cafeteria plans means a
10-1 plan as prescribed by federal law.
10-2 (7) House Rule 13, Sections 9(a)(4), is suspended to permit
10-3 the committee to add text changing Section 2, Article 3.50-8,
10-4 Insurance Code, as added by SECTION 1.02, House Bill 3343, to read
10-5 as follows:
10-6 Sec. 2. ACTIVE EMPLOYEE HEALTH COVERAGE OR COMPENSATION
10-7 SUPPLEMENTATION. (a) Each year, the trustee shall deliver to each
10-8 school district, including a school district that is ineligible for
10-9 state aid under Chapter 42, Education Code, each other educational
10-10 district that is a member of the Teacher Retirement System of
10-11 Texas, each eligible charter school, and each regional education
10-12 service center state funds in an amount, as determined by the
10-13 trustee, equal to the product of the number of employees employed
10-14 by the district, school, or service center multiplied by $1,000 or
10-15 a greater amount as provided by the General Appropriations Act for
10-16 purposes of this article.
10-17 (b) All funds received by a school district, other
10-18 educational district, eligible charter school, or regional
10-19 education service center under this article are held in trust for
10-20 the benefit of the employee on whose behalf the district, school,
10-21 or service center received the funds.
10-22 (c) The trustee shall distribute funds under this article in
10-23 equal monthly installments. The trustee is entitled to recover
10-24 from a school district, other educational district, eligible
10-25 charter school, or regional education service center any amount
10-26 distributed under this article to which the district, school, or
10-27 service center was not entitled.
11-1 (d) A determination by the trustee under this section is
11-2 final and may not be appealed.
11-3 Explanation: This change is necessary to clarify how the
11-4 state contributions for the group coverage program will be paid
11-5 and allocated, and to specify that educational districts that are
11-6 not school districts but whose employees are members of the Teacher
11-7 Retirement System of Texas are eligible for state contributions.
11-8 (8) House Rule 13, Section 9(a)(4), is suspended to permit
11-9 the committee to add text changing Section 3, Article 3.50-8,
11-10 Insurance Code, as added by SECTION 1.02, House Bill 3343, to read
11-11 as follows:
11-12 Sec. 3. EMPLOYEE ELECTION. (a) If an employee is covered by
11-13 a cafeteria plan of a school district, other educational district,
11-14 eligible charter school, or regional education service center, the
11-15 state contribution under this article shall be deposited in the
11-16 cafeteria plan, and the employee may elect among the options
11-17 provided by the cafeteria plan. A cafeteria plan receiving state
11-18 contributions under this article may include a medical savings
11-19 account option and must include, at a minimum, the following
11-20 options:
11-21 (1) a health care reimbursement account;
11-22 (2) a benefit or coverage other than that provided
11-23 under Article 3.50-7 of this code, or any employee coverage or
11-24 dependent coverage available under Article 3.50-7 of this code but
11-25 not otherwise fully funded by the state or the employer
11-26 contributions, any of which must be a "qualified benefit" under
11-27 Section 125, Internal Revenue Code of 1986, and its subsequent
12-1 amendments;
12-2 (3) an option for the employee to receive the state
12-3 contribution as supplemental compensation; or
12-4 (4) an option to divide the state contribution among
12-5 two or more of the other options provided under this subsection.
12-6 (b) If an employee is not covered by a cafeteria plan of a
12-7 school district, other educational district, eligible charter
12-8 school, or regional education service center, the state
12-9 contribution under this article shall be paid to the employee as
12-10 supplemental compensation.
12-11 (c) Supplemental compensation under this section must be in
12-12 addition to the rate of compensation that:
12-13 (1) the school district, other educational district,
12-14 eligible charter school, or regional education service center paid
12-15 the employee in the preceding school year; or
12-16 (2) the district, school, or service center would have
12-17 paid the employee in the preceding school year if the employee had
12-18 been employed by the district, school, or service center in the
12-19 same capacity in the preceding school year.
12-20 (d) For each state fiscal year, an election under this
12-21 section must be made before the later of:
12-22 (1) August 1 of the preceding state fiscal year; or
12-23 (2) the 31st day after the date the employee is hired.
12-24 (e) The trustee shall prescribe and distribute to each
12-25 school district, other educational district, eligible charter
12-26 school, and regional education service center:
12-27 (1) a model explanation written in English and Spanish
13-1 of the options employees may elect under this section and the
13-2 effect of electing each option; and
13-3 (2) an election form to be completed by employees.
13-4 (f) Each state fiscal year, a school district, other
13-5 educational district, eligible charter school, or regional
13-6 education service center shall prepare and distribute to each
13-7 employee a written explanation in English and Spanish, as
13-8 appropriate, of the options the employee may elect under this
13-9 section. The explanation must be based on the model explanation
13-10 prepared by the trustee under Subsection (e) of this section and
13-11 must reflect all available health coverage options available to the
13-12 employee. The explanation must be distributed to an employee
13-13 before the later of:
13-14 (1) July 1 of the preceding state fiscal year; or
13-15 (2) the fifth day after the date the employee is
13-16 hired.
13-17 (g) The written explanation under Subsection (f) of this
13-18 section must be accompanied by a copy of the election form
13-19 prescribed under Subsection (e)(2) of this section.
13-20 (h) Any unencumbered funds that are returned to the school
13-21 district from accounts established under Subsection (a) of this
13-22 section may be used only to provide employee compensation,
13-23 benefits, or both.
13-24 Explanation: This change is necessary to clarify the options
13-25 available to employees and to clarify the requirements for employee
13-26 elections.
13-27 (9) House Rule 13, Section 9(a)(4), is suspended to permit
14-1 the committee to add text changing Section 4, Article 3.50-8,
14-2 Insurance Code, as added by SECTION 1.02, House Bill 3343, by
14-3 adding a new Subsection (b) to read as follows:
14-4 (b) The trustee may enter into interagency contracts with
14-5 any agency of this state for the purpose of assistance in
14-6 implementing this article.
14-7 Explanation: This change is necessary to clarify that the
14-8 contract authority of the Teacher Retirement System of Texas
14-9 applies to contracts under Article 3.50-8, Insurance Code, as added
14-10 by the bill.
14-11 (9) House Rule 13, Section 9(a)(4), is suspended to permit
14-12 the committee to add text changing Sections 1 and 2, Article
14-13 3.50-10, Insurance Code, as added by SECTION 1.04, House Bill 3343
14-14 (corresponding to Article 3.50-9, Insurance Code, in conference
14-15 committee report), to read as follows:
14-16 Sec. 1. DEFINITIONS. In this article:
14-17 (1) "Participating employee" means an employee of a
14-18 school district, other educational district whose employees are
14-19 members of the Teacher Retirement System of Texas, participating
14-20 charter school, or regional education service center who
14-21 participates in a group health coverage plan provided by or through
14-22 the district, school, or service center.
14-23 (2) "Participating charter school" means an
14-24 open-enrollment charter school established under Subchapter D,
14-25 Chapter 12, Education Code, that participates in the uniform group
14-26 coverage program established under Article 3.50-7 of this code.
14-27 (3) "Regional education service center" means a
15-1 regional education service center established under Chapter 8,
15-2 Education Code.
15-3 Sec. 2. MAINTENANCE OF EFFORT FOR 2000-2001 SCHOOL YEAR. (a)
15-4 Subject to Section 3 of this article, and except as provided by
15-5 Section 5 of this article, a school district, other educational
15-6 district whose employees are members of the Teacher Retirement
15-7 System of Texas, participating charter school, or regional
15-8 education service center that, for the 2000-2001 school year, paid
15-9 amounts to share with employees the cost of coverage under a group
15-10 health coverage plan shall, for each fiscal year, use to provide
15-11 health coverage an amount for each participating employee at least
15-12 equal to the amount computed as provided by this section.
15-13 (b) The school district, other educational district,
15-14 participating charter school, or regional education service center
15-15 shall divide the amount that the district, school, or service
15-16 center paid during the 2000-2001 school year for the prior group
15-17 health coverage plan by the total number of full-time employees of
15-18 the district, school, or service center in the 2000-2001 school
15-19 year and multiply the result by the number of full-time employees
15-20 of the district, school, or service center in the fiscal year for
15-21 which the computation is made. If, for the 2000-2001 school year,
15-22 a school district, other educational district, participating
15-23 charter school, or regional education service center provided group
15-24 health coverage to its employees through a self-funded insurance
15-25 plan, the amount the district, school, or service center paid
15-26 during that school year for the plan includes only the amount of
15-27 regular contributions made by the district, school, or service
16-1 center to the plan.
16-2 (c) Amounts used as required by this section shall be
16-3 deposited, as applicable, in:
16-4 (1) the Texas school employees uniform group coverage
16-5 trust fund established under Section 8, Article 3.50-7, of this
16-6 code; or
16-7 (2) another fund established for the payment of
16-8 employee health coverage that meets requirements for those funds
16-9 prescribed by the Texas Education Agency.
16-10 Explanation: This change is necessary to clarify that
16-11 certain educational districts whose employees are members of the
16-12 Teacher Retirement System of Texas, open-enrollment charter schools
16-13 that participate in the statewide group health coverage program,
16-14 and regional education service centers are required to maintain
16-15 current spending efforts for employee health coverage.
16-16 (10) House Rule 13, Section 9(a)(4), is suspended to permit
16-17 the committee to add text changing Section 3, Article 3.50-10,
16-18 Insurance Code, as added by SECTION 1.04, House Bill 3343
16-19 (corresponding to Article 3.50-9, Insurance Code, in conference
16-20 committee report), to read as follows:
16-21 Sec. 3. MINIMUM EFFORT. (a) A school district, other
16-22 educational district, participating charter school, or regional
16-23 education service center shall, for each fiscal year, use to
16-24 provide health coverage an amount equal to the number of
16-25 participating employees of the district, school, or service center
16-26 multiplied by $1,800. Amounts used as required by this section
16-27 shall be deposited in a fund described by Section 2(c) of this
17-1 article.
17-2 (b) To comply with this section, a school district or
17-3 participating charter school may use state funds received under
17-4 Chapter 42, Education Code, other than funds that may be used under
17-5 that chapter only for a specific purpose, except that amounts a
17-6 district or school is required to use to pay contributions under a
17-7 group health coverage plan for district or school employees under
17-8 Section 42.2514 or 42.260, Education Code, other than amounts
17-9 described by Section 42.260(c)(2)(B), are not used in computing
17-10 whether the district or school complies with this section.
17-11 Explanation: This change is necessary to clarify that
17-12 certain educational districts whose employees are members of the
17-13 Teacher Retirement System of Texas, open-enrollment charter schools
17-14 that participate in the statewide group health coverage program,
17-15 and regional education service centers are required to meet the
17-16 same minimum spending effort applicable to school districts, and to
17-17 clarify that certain state funds school districts and participating
17-18 charter schools are required to use in meeting the minimum spending
17-19 effort count against the minimum effort.
17-20 (11) House Rule 13, Section 9(a)(4), is suspended to permit
17-21 the committee to add text changing Sections 4(a)-(a-7), Article
17-22 3.50-10, Insurance Code (corresponding to Article 3.50-9, Insurance
17-23 Code, in conference committee report), as added by SECTION 1.04,
17-24 House Bill 3343, to read as follows:
17-25 (a) For any state fiscal year beginning with the fiscal year
17-26 ending August 31, 2003, except as provided by Subsection (b) of
17-27 this section, a school district that imposes maintenance and
18-1 operations taxes at the maximum rate permitted under Section
18-2 45.003(d), Education Code, is entitled to state funds in an amount
18-3 equal to the difference, if any, between:
18-4 (1) an amount equal to the number of participating
18-5 employees of the district multiplied by $1,800; and
18-6 (2) if the following amount is less than the amount
18-7 specified by Subdivision (1) of this subsection, the sum of:
18-8 (A) the amount the district is required to use
18-9 to provide health coverage under Section 2 of this article for that
18-10 fiscal year; and
18-11 (B) the difference, if any, between:
18-12 (i) the amount determined under Section
18-13 42.2514(b)(2), Education Code; and
18-14 (ii) the amount determined under Section
18-15 42.2514(b)(1), Education Code, if that amount is less than the
18-16 amount specified by Subparagraph (i) of this paragraph.
18-17 (a-1) For the state fiscal year beginning September 1, 2002,
18-18 a school district or participating entity is entitled to state
18-19 funds in an amount equal to the difference, if any, between:
18-20 (1) an amount equal to the number of participating
18-21 employees of the district or entity multiplied by $1,800; and
18-22 (2) if the following amount is less than the amount
18-23 specified by Subdivision (1) of this subsection, the sum of:
18-24 (A) the amount the district or entity is
18-25 required to use to provide health coverage under Section 2 of this
18-26 article for that fiscal year; and
18-27 (B) the difference, if any, between:
19-1 (i) the amount determined under Section
19-2 42.2514(b)(2), Education Code; and
19-3 (ii) the amount determined under Section
19-4 42.2514(b)(1), Education Code, if that amount is less than the
19-5 amount specified by Subparagraph (i) of this paragraph.
19-6 (a-2) For the state fiscal year beginning September 1, 2003,
19-7 a school district or participating entity is entitled to state
19-8 funds in an amount equal to the difference, if any, between:
19-9 (1) an amount equal to the number of participating
19-10 employees of the district or entity multiplied by $1,500; and
19-11 (2) if the following amount is less than the amount
19-12 specified by Subdivision (1) of this subsection, the sum of:
19-13 (A) the amount the district or entity is
19-14 required to use to provide health coverage under Section 2 of this
19-15 article for that fiscal year; and
19-16 (B) the difference, if any, between:
19-17 (i) the amount determined under Section
19-18 42.2514(b)(2), Education Code; and
19-19 (ii) the amount determined under Section
19-20 42.2514(b)(1), Education Code, if that amount is less than the
19-21 amount specified by Subparagraph (i) of this paragraph.
19-22 (a-3) For the state fiscal year beginning September 1, 2004,
19-23 a school district or participating entity is entitled to state
19-24 funds in an amount equal to the difference, if any, between:
19-25 (1) an amount equal to the number of participating
19-26 employees of the district or entity multiplied by $1,200; and
19-27 (2) if the following amount is less than the amount
20-1 specified by Subdivision (1) of this subsection, the sum of:
20-2 (A) the amount the district or entity is
20-3 required to use to provide health coverage under Section 2 of this
20-4 article for that fiscal year; and
20-5 (B) the difference, if any, between:
20-6 (i) the amount determined under Section
20-7 42.2514(b)(2), Education Code; and
20-8 (ii) the amount determined under Section
20-9 42.2514(b)(1), Education Code, if that amount is less than the
20-10 amount specified by Subparagraph (i) of this paragraph.
20-11 (a-4) For the state fiscal year beginning September 1, 2005,
20-12 a school district or participating entity is entitled to state
20-13 funds in an amount equal to the difference, if any, between:
20-14 (1) an amount equal to the number of participating
20-15 employees of the district or entity multiplied by $900; and
20-16 (2) if the following amount is less than the amount
20-17 specified by Subdivision (1) of this subsection, the sum of:
20-18 (A) the amount the district or entity is
20-19 required to use to provide health coverage under Section 2 of this
20-20 article for that fiscal year; and
20-21 (B) the difference, if any, between:
20-22 (i) the amount determined under Section
20-23 42.2514(b)(2), Education Code; and
20-24 (ii) the amount determined under Section
20-25 42.2514(b)(1), Education Code, if that amount is less than the
20-26 amount specified by Subparagraph (i) of this paragraph.
20-27 (a-5) For the state fiscal year beginning September 1, 2006,
21-1 a school district or participating entity is entitled to state
21-2 funds in an amount equal to the difference, if any, between:
21-3 (1) an amount equal to the number of participating
21-4 employees of the district or entity multiplied by $600; and
21-5 (2) if the following amount is less than the amount
21-6 specified by Subdivision (1) of this subsection, the sum of:
21-7 (A) the amount the district or entity is
21-8 required to use to provide health coverage under Section 2 of this
21-9 article for that fiscal year; and
21-10 (B) the difference, if any, between:
21-11 (i) the amount determined under Section
21-12 42.2514(b)(2), Education Code; and
21-13 (ii) the amount determined under Section
21-14 42.2514(b)(1), Education Code, if that amount is less than the
21-15 amount specified by Subparagraph (i) of this paragraph.
21-16 (a-6) For the state fiscal year beginning September 1, 2007,
21-17 a school district or participating entity is entitled to state
21-18 funds in an amount equal to the difference, if any, between:
21-19 (1) an amount equal to the number of participating
21-20 employees of the district or entity multiplied by $300; and
21-21 (2) if the following amount is less than the amount
21-22 specified by Subdivision (1) of this subsection, the sum of:
21-23 (A) the amount the district or entity is
21-24 required to use to provide health coverage under Section 2 of this
21-25 article for that fiscal year; and
21-26 (B) the difference, if any, between:
21-27 (i) the amount determined under Section
22-1 42.2514(b)(2), Education Code; and
22-2 (ii) the amount determined under Section
22-3 42.2514(b)(1), Education Code, if that amount is less than the
22-4 amount specified by Subparagraph (i) of this paragraph.
22-5 (a-7) A school district that receives state funds under
22-6 Subsection (a) of this section for a state fiscal year is not
22-7 entitled to state funds under Subsection (a-1), (a-2), (a-3),
22-8 (a-4), (a-5), or (a-6) of this section.
22-9 Explanation: This change is necessary to require school
22-10 districts and participating charter schools for whom 75% of the
22-11 increased funding through the foundation school program funding
22-12 elements exceeds the level of $900 per employee per year to use
22-13 that excess towards meeting the minimum spending effort.
22-14 (12) House Rule 13, Section 9(a)(4), is suspended to permit
22-15 the committee to add text changing Section 4(c), Article 3.50-10,
22-16 Insurance Code (corresponding to Article 3.50-9, Insurance Code, in
22-17 conference committee report), as added by SECTION 1.04, House Bill
22-18 3343, to read as follows:
22-19 (c) The Teacher Retirement System of Texas shall distribute
22-20 state funds to school districts and participating entities under
22-21 this section in equal monthly installments. State funds received
22-22 under this section shall be deposited in a fund described by
22-23 Section 2(c) of this article. The Texas Education Agency shall
22-24 provide to the retirement system information necessary for the
22-25 retirement system to determine a school district's or participating
22-26 entity's eligibility for state funds under this section. The
22-27 trustee may enter into interagency contracts with any agency of
23-1 this state for the purpose of assistance in distributing funds
23-2 under this article.
23-3 Explanation: This change is necessary to permit the Teacher
23-4 Retirement System of Texas to enter into interagency contracts
23-5 relating to the distribution of state assistance towards meeting
23-6 the minimum spending effort.
23-7 (13) House Rule 13, Section 9(a)(4), is suspended to permit
23-8 the committee to add text changing Section 41.002(a), Education
23-9 Code, as amended by SECTIONS 2.02 and 2.03, senate committee
23-10 report, House Bill 3343, to read as follows:
23-11 SECTION 2.02. Effective September 1, 2001, Section 41.002(a),
23-12 Education Code, is amended to read as follows:
23-13 (a) A school district may not have a wealth per student that
23-14 exceeds $300,000 [$295,000].
23-15 SECTION 2.03. Effective September 1, 2002, Section 41.002(a),
23-16 Education Code, is amended to read as follows:
23-17 (a) A school district may not have a wealth per student that
23-18 exceeds $305,000 [$295,000].
23-19 Explanation: This change is necessary to increase the
23-20 equalized wealth level under the school finance system.
23-21 (14) House Rule 13, Section 9(a)(4), is suspended to permit
23-22 the committee to add text changing Section 42.2514, Education Code,
23-23 as added by SECTION 2.06, senate committee report, House Bill 3343,
23-24 to read as follows:
23-25 SECTION 2.05. Effective September 1, 2002, Subchapter E,
23-26 Chapter 42, Education Code, is amended by adding Section 42.2514 to
23-27 read as follows:
24-1 Sec. 42.2514. ADDITIONAL STATE AID FOR SCHOOL EMPLOYEE
24-2 BENEFITS. (a) In this section, "participating charter school"
24-3 means an open-enrollment charter school that participates in the
24-4 uniform group coverage program established under Article 3.50-7,
24-5 Insurance Code.
24-6 (b) For each school year, a school district, including a
24-7 school district that is otherwise ineligible for state aid under
24-8 this chapter, or a participating charter school is entitled to
24-9 state aid in an amount, as determined by the commissioner, equal to
24-10 the difference, if any, between:
24-11 (1) the amount determined by multiplying the amount of
24-12 $900 or the amount specified in the General Appropriations Act for
24-13 that year for purposes of the state contribution under Section 9,
24-14 Article 3.50-7, Insurance Code, by the number of district or school
24-15 employees who participate in a group health coverage plan provided
24-16 by or through the district or school; and
24-17 (2) an amount equal to 75 percent of the amount of:
24-18 (A) additional funds to which the district or
24-19 school is entitled due to the increase made by H.B. No. 3343, Acts
24-20 of the 77th Legislature, Regular Session, 2001, to:
24-21 (i) the equalized wealth level under
24-22 Section 41.002; and
24-23 (ii) the guaranteed level of state and
24-24 local funds per weighted student per cent of tax effort under
24-25 Section 42.302; or
24-26 (B) additional state aid to which the district
24-27 is entitled under Section 42.2513.
25-1 (c) A school district or participating charter school may
25-2 use state aid received under this section only to pay contributions
25-3 under a group health coverage plan for district or school
25-4 employees.
25-5 (d) A determination by the commissioner under this section
25-6 is final and may not be appealed.
25-7 (e) The commissioner may adopt rules to implement this
25-8 section.
25-9 Explanation: This change is necessary to permit
25-10 open-enrollment charter schools that participate in the uniform
25-11 group coverage plan to receive additional state funding if the
25-12 increased funding the school receives through the foundation school
25-13 program funding elements does not reach the level of $900 per
25-14 employee per year.
25-15 (15) House Rule 13, Section 9(a)(4), is suspended to permit
25-16 the committee to add text changing Section 42.260, Education Code,
25-17 as added by SECTION 2.10, senate committee report, House Bill 3343,
25-18 to read as follows:
25-19 SECTION 2.08. Effective September 1, 2002, Subchapter E,
25-20 Chapter 42, Education Code, is amended by adding Section 42.260 to
25-21 read as follows:
25-22 Sec. 42.260. USE OF CERTAIN FUNDS. (a) In this section,
25-23 "participating charter school" has the meaning assigned by Section
25-24 42.2514.
25-25 (b) For each year, the commissioner shall certify to each
25-26 school district or participating charter school the amount of:
25-27 (1) additional funds to which the district or school
26-1 is entitled due to the increase made by H.B. No. 3343, Acts of the
26-2 77th Legislature, Regular Session, 2001, to:
26-3 (A) the equalized wealth level under Section
26-4 41.002; or
26-5 (B) the guaranteed level of state and local
26-6 funds per weighted student per cent of tax effort under Section
26-7 42.302; or
26-8 (2) additional state aid to which the district or
26-9 school is entitled under Section 42.2513.
26-10 (c) Notwithstanding any other provision of this code, a
26-11 school district or participating charter school may use the
26-12 following amount of funds only to pay contributions under a group
26-13 health coverage plan for district or school employees:
26-14 (1) an amount equal to 75 percent of the amount
26-15 certified for the district or school under Subsection (b); or
26-16 (2) if the following amount is less than the amount
26-17 specified by Subdivision (1), the sum of:
26-18 (A) the amount determined by multiplying the
26-19 amount of $900 or the amount specified in the General
26-20 Appropriations Act for that year for purposes of the state
26-21 contribution under Section 9, Article 3.50-7, Insurance Code, by
26-22 the number of district or school employees who participate in a
26-23 group health coverage plan provided by or through the district or
26-24 school; and
26-25 (B) the difference between the amount necessary
26-26 for the district or school to comply with Section 3, Article
26-27 3.50-9, Insurance Code, for the school year and the amount the
27-1 district or school is required to use to provide health coverage
27-2 under Section 2 of that article for that year.
27-3 (d) A determination by the commissioner under this section
27-4 is final and may not be appealed.
27-5 (e) The commissioner may adopt rules to implement this
27-6 section.
27-7 Explanation: This change is necessary to require
27-8 open-enrollment charter schools that participate in the uniform
27-9 group coverage plan to use a portion of state funding received
27-10 through the increases in the foundation school program funding
27-11 elements to provide employee health coverage.
27-12 (16) House Rule 13, Section 9(a)(4), is suspended to permit
27-13 the committee to add text changing Section 42.302(a) Education
27-14 Code, as amended by SECTIONS 2.11 and 2.12, senate committee
27-15 report, House Bill 3343, to read as follows:
27-16 SECTION 2.09. Effective September 1, 2001, Section 42.302(a),
27-17 Education Code, is amended to read as follows:
27-18 (a) Each school district is guaranteed a specified amount
27-19 per weighted student in state and local funds for each cent of tax
27-20 effort over that required for the district's local fund assignment
27-21 up to the maximum level specified in this subchapter. The amount
27-22 of state support, subject only to the maximum amount under Section
27-23 42.303, is determined by the formula:
27-24 GYA = (GL X WADA X DTR X 100) - LR
27-25 where:
27-26 "GYA" is the guaranteed yield amount of state funds to be
27-27 allocated to the district;
28-1 "GL" is the dollar amount guaranteed level of state and local
28-2 funds per weighted student per cent of tax effort, which is $25.81
28-3 [$24.99] or a greater amount for any year provided by
28-4 appropriation;
28-5 "WADA" is the number of students in weighted average daily
28-6 attendance, which is calculated by dividing the sum of the school
28-7 district's allotments under Subchapters B and C, less any allotment
28-8 to the district for transportation, any allotment under Section
28-9 42.158, and 50 percent of the adjustment under Section 42.102, by
28-10 the basic allotment for the applicable year;
28-11 "DTR" is the district enrichment tax rate of the school
28-12 district, which is determined by subtracting the amounts specified
28-13 by Subsection (b) from the total amount of maintenance and
28-14 operations taxes collected by the school district for the
28-15 applicable school year and dividing the difference by the quotient
28-16 of the district's taxable value of property as determined under
28-17 Subchapter M, Chapter 403, Government Code, or, if applicable,
28-18 under Section 42.2521, divided by 100; and
28-19 "LR" is the local revenue, which is determined by multiplying
28-20 "DTR" by the quotient of the district's taxable value of property
28-21 as determined under Subchapter M, Chapter 403, Government Code, or,
28-22 if applicable, under Section 42.2521, divided by 100.
28-23 SECTION 2.10. Effective September 1, 2002, Section 42.302(a),
28-24 Education Code, is amended to read as follows:
28-25 (a) Each school district is guaranteed a specified amount
28-26 per weighted student in state and local funds for each cent of tax
28-27 effort over that required for the district's local fund assignment
29-1 up to the maximum level specified in this subchapter. The amount
29-2 of state support, subject only to the maximum amount under Section
29-3 42.303, is determined by the formula:
29-4 GYA = (GL X WADA X DTR X 100) - LR
29-5 where:
29-6 "GYA" is the guaranteed yield amount of state funds to be
29-7 allocated to the district;
29-8 "GL" is the dollar amount guaranteed level of state and local
29-9 funds per weighted student per cent of tax effort, which is $27.14
29-10 [$24.99] or a greater amount for any year provided by
29-11 appropriation;
29-12 "WADA" is the number of students in weighted average daily
29-13 attendance, which is calculated by dividing the sum of the school
29-14 district's allotments under Subchapters B and C, less any allotment
29-15 to the district for transportation, any allotment under Section
29-16 42.158, and 50 percent of the adjustment under Section 42.102, by
29-17 the basic allotment for the applicable year;
29-18 "DTR" is the district enrichment tax rate of the school
29-19 district, which is determined by subtracting the amounts specified
29-20 by Subsection (b) from the total amount of maintenance and
29-21 operations taxes collected by the school district for the
29-22 applicable school year and dividing the difference by the quotient
29-23 of the district's taxable value of property as determined under
29-24 Subchapter M, Chapter 403, Government Code, or, if applicable,
29-25 under Section 42.2521, divided by 100; and
29-26 "LR" is the local revenue, which is determined by multiplying
29-27 "DTR" by the quotient of the district's taxable value of property
30-1 as determined under Subchapter M, Chapter 403, Government Code, or,
30-2 if applicable, under Section 42.2521, divided by 100.
30-3 Explanation: This change is necessary to increase the
30-4 guaranteed level of state and local funding per weighted student
30-5 per penny of tax effort.
30-6 (17) House Rule 13, Section 9(a)(4), is suspended to permit
30-7 the committee to add text adding Subsection (l) to Section 26.08,
30-8 Tax Code, as amended by SECTION 1.06, House Bill 3343, to read as
30-9 follows:
30-10 (l) For purposes of Subsection (k), the amount of state
30-11 funds that would have been available to a school district in the
30-12 preceding year is computed using the maximum tax rate for the
30-13 current year under Section 42.253(e), Education Code.
30-14 Explanation: This change is necessary to clarify that school
30-15 district rollback tax rates that are adjusted for tax increases in
30-16 connection with the minimum spending effort are computed in the
30-17 same manner as other school district rollback tax rates.
30-18 (18) House Rule 13, Section 9(a)(4), is suspended to permit
30-19 the committee to add text changing Section 62.1015, Health and
30-20 Safety Code, as added by SECTION 1.07, House Bill 3343 to read as
30-21 follows:
30-22 SECTION 1.04. Subchapter C, Chapter 62, Health and Safety
30-23 Code, is amended by adding Section 62.1015 to read as follows:
30-24 Sec. 62.1015. ELIGIBILITY OF CERTAIN CHILDREN; DISALLOWANCE
30-25 OF MATCHING FUNDS. (a) In this section, "charter school,"
30-26 "employee," and "regional education service center" have the
30-27 meanings assigned by Section 2, Article 3.50-7, Insurance Code.
31-1 (b) A child of an employee of a charter school, school
31-2 district, other educational district whose employees are members of
31-3 the Teacher Retirement System of Texas, or regional education
31-4 service center may be enrolled in health benefits coverage under
31-5 the child health plan. A child enrolled in the child health plan
31-6 under this section participates in the same manner as any other
31-7 child enrolled in the child health plan.
31-8 (c) The cost of health benefits coverage for children
31-9 enrolled in the child health plan under this section shall be paid
31-10 as provided in the General Appropriations Act. Expenditures made to
31-11 provide health benefits coverage under this section may not be
31-12 included for the purpose of determining the state children's health
31-13 insurance expenditures, as that term is defined by 42 U.S.C.
31-14 Section 1397ee(d)(2)(B), as amended, unless the Health and Human
31-15 Services Commission, after consultation with the appropriate
31-16 federal agencies, determines that the expenditures may be included
31-17 without adversely affecting federal matching funding for the child
31-18 health plan provided under this chapter.
31-19 Explanation: This change is necessary to provide for coverage
31-20 under the child health program for children of employees of all
31-21 entities eligible to participate in the new group coverage plan and
31-22 to clarify the Health and Human Services Commission's authority to
31-23 determine whether resulting expenditures affect federal matching
31-24 funds for the child health program.
31-25 (19) House Rule 13, Section 9(a)(4), is suspended to permit
31-26 the committee to add text changing Section 3, Article 3.51,
31-27 Insurance Code, as amended by SECTION 3.16, House Bill 3343, by
32-1 adding a new Subsection (b) to read as follows:
32-2 (b) This section does not preclude an entity described by
32-3 Subsection (a) of this section from procuring contracts under this
32-4 article for the provision of optional insurance coverages to the
32-5 employees of the entity.
32-6 Explanation: This change is necessary to clarify that a
32-7 participating entity retains the authority to purchase optional
32-8 coverages for its employees.
32-9 (20) House Rule 13, Section 9(a)(4), is suspended to permit
32-10 the committee to add text changing Article 26.036(c), Insurance
32-11 Code, as added by SECTION 3.17, House Bill 3343, to read as
32-12 follows:
32-13 (c) An independent school district that is participating in
32-14 the uniform group coverage program established under Article 3.50-7
32-15 of this code may not participate in the small employer market under
32-16 this article for health insurance coverage and may not renew a
32-17 health insurance contract obtained in accordance with this article
32-18 after the date on which the program of coverages provided under
32-19 Article 3.50-7 of this code is implemented. This subsection does
32-20 not affect a contract for the provision of optional coverages not
32-21 included in a health benefits plan under this chapter.
32-22 Explanation: This change is necessary to clarify that
32-23 an independent school district retains the authority to purchase
32-24 optional coverages for its employees through the small employer
32-25 program under Chapter 26, Insurance Code.
32-26 (21) House Rule 13, Section 9(a)(4), is suspended to permit
32-27 the committee to add text changing Section 22.004, Education Code,
33-1 as amended by SECTION 3.18, House Bill 3343, to read as follows:
33-2 Sec. 22.004. GROUP HEALTH BENEFITS FOR SCHOOL EMPLOYEES. (a)
33-3 A [Each] district shall participate in the uniform group coverage
33-4 program established under Article 3.50-7, Insurance Code, as
33-5 provided by Section 5 of that article.
33-6 (b) A district that does not participate in the program
33-7 described by Subsection (a) shall make available to its employees
33-8 group health coverage provided by a risk pool established by one or
33-9 more school districts under Chapter 172, Local Government Code, or
33-10 under a policy of insurance or group contract issued by an insurer,
33-11 a company subject to Chapter 20, Insurance Code, or a health
33-12 maintenance organization under the Texas Health Maintenance
33-13 Organization Act (Chapter 20A, Vernon's Texas Insurance Code). The
33-14 coverage must meet the substantive coverage requirements of Article
33-15 3.51-6, Insurance Code, and any other law applicable to group
33-16 health insurance policies or contracts issued in this state. The
33-17 coverage must include major medical treatment but may exclude
33-18 experimental procedures. In this subsection, "major medical
33-19 treatment" means a medical, surgical, or diagnostic procedure for
33-20 illness or injury. The coverage may include managed care or
33-21 preventive care and must be comparable to the basic health coverage
33-22 provided under the Texas Employees Uniform Group Insurance Benefits
33-23 Act (Article 3.50-2, Vernon's Texas Insurance Code). The board of
33-24 trustees of the Teacher Retirement System of Texas shall adopt
33-25 rules to determine whether a school district's group health
33-26 coverage is comparable to the basic health coverage specified by
33-27 this subsection. The rules must provide for consideration of the
34-1 following factors concerning the district's coverage in determining
34-2 whether the district's coverage is comparable to the basic health
34-3 coverage specified by this subsection:
34-4 (1) the deductible amount for service provided inside
34-5 and outside of the network;
34-6 (2) the coinsurance percentages for service provided
34-7 inside and outside of the network;
34-8 (3) the maximum amount of coinsurance payments a
34-9 covered person is required to pay;
34-10 (4) the amount of the copayment for an office visit;
34-11 (5) the schedule of benefits and the scope of
34-12 coverage;
34-13 (6) the lifetime maximum benefit amount; and
34-14 (7) verification that the coverage is issued by a
34-15 provider licensed to do business in this state by the Texas
34-16 Department of Insurance or is provided by a risk pool authorized
34-17 under Chapter 172, Local Government Code, or that a district is
34-18 capable of covering the assumed liabilities in the case of coverage
34-19 provided through district self-insurance.
34-20 (c) [(b)] The cost of the coverage provided under the
34-21 program described by Subsection (a) shall be paid by the state,
34-22 the district, and the employees in the manner provided by Article
34-23 3.50-7, Insurance Code. The cost of coverage provided under a plan
34-24 adopted under Subsection (b) shall [may] be shared by the employees
34-25 and the district using the contributions by the state described by
34-26 Section 9, Article 3.50-7, Insurance Code, and Article 3.50-8,
34-27 Insurance Code.
35-1 (d) [(c)] Each district shall report the district's
35-2 compliance with this section [subsection] to the executive director
35-3 of the Teacher Retirement System of Texas not later than March 1 of
35-4 each even-numbered year in the manner required by the board of
35-5 trustees of the Teacher Retirement System of Texas. For a district
35-6 that does not participate in the program described by Subsection
35-7 (a), the [The] report must be based on the district group health
35-8 coverage plan in effect during the current plan year and must
35-9 include:
35-10 (1) appropriate documentation of:
35-11 (A) the district's contract for group health
35-12 coverage with a provider licensed to do business in this state by
35-13 the Texas Department of Insurance or a risk pool authorized under
35-14 Chapter 172, Local Government Code; or
35-15 (B) a resolution of the board of trustees of the
35-16 district authorizing a self-insurance plan for district employees
35-17 and of the district's review of district ability to cover the
35-18 liability assumed;
35-19 (2) the schedule of benefits;
35-20 (3) the premium rate sheet, including the amount paid
35-21 by the district and employee;
35-22 (4) the number of employees covered by the [each]
35-23 health coverage plan offered by the district; and
35-24 (5) any other information considered appropriate by
35-25 the executive director of the Teacher Retirement System of Texas.
35-26 (e) [(d)] Based on the criteria prescribed by Subsection (b)
35-27 [(a)], the executive director of the Teacher Retirement System of
36-1 Texas shall, for each district that does not participate in the
36-2 program described by Subsection (a), certify whether a district's
36-3 coverage is comparable to the basic health coverage provided under
36-4 the Texas Employees Uniform Group Insurance Benefits Act (Article
36-5 3.50-2, Vernon's Texas Insurance Code). If the executive director
36-6 of the Teacher Retirement System of Texas determines that the group
36-7 health coverage offered by a district is not comparable, the
36-8 executive director shall report that information to the district
36-9 and to the Legislative Budget Board. The executive director shall
36-10 submit a report to the legislature not later than September 1 of
36-11 each even-numbered year describing the status of each district's
36-12 group health coverage program based on the information contained in
36-13 the report required by Subsection (d) [(c)] and the certification
36-14 required by this subsection.
36-15 (f) [(e)] A school district that does not participate in the
36-16 program described by Subsection (a) may not contract with an
36-17 insurer, a company subject to Chapter 20, Insurance Code, or a
36-18 health maintenance organization to issue a policy or contract under
36-19 this section, or with any person to assist the school district in
36-20 obtaining or managing the policy or contract unless, before the
36-21 contract is entered into, the insurer, company, organization, or
36-22 person provides the district with an audited financial statement
36-23 showing the financial condition of the insurer, company,
36-24 organization, or person.
36-25 (g) [(f)] An insurer, a company subject to Chapter 20,
36-26 Insurance Code, or a health maintenance organization that issues a
36-27 policy or contract under this section and any person that assists
37-1 the school district in obtaining or managing the policy or contract
37-2 for compensation shall provide an annual audited financial
37-3 statement to the school district showing the financial condition of
37-4 the insurer, company, organization, or person.
37-5 (h) [(g)] An audited financial statement provided under this
37-6 section must be made in accordance with rules adopted by the
37-7 commissioner of insurance or state auditor, as applicable.
37-8 (i) Notwithstanding any other provision of this section, a
37-9 district participating in the uniform group coverage program
37-10 established under Article 3.50-7, Insurance Code, may not make
37-11 group health coverage available to its employees under this
37-12 section after the date on which the program of coverages provided
37-13 under Article 3.50-7, Insurance Code, is implemented.
37-14 (j) This section does not preclude a district that is
37-15 participating in the uniform group coverage program established
37-16 under Article 3.50-7, Insurance Code, from entering into contracts
37-17 to provide optional insurance coverages for the employees of the
37-18 district.
37-19 Explanation: This change is necessary to clarify that a
37-20 school district that does not participate in the group coverage
37-21 program retains the responsibility to offer coverage comparable to
37-22 the plan provided to state employees through the Employees
37-23 Retirement System of Texas, and also retains the authority to
37-24 purchase optional coverages for its employees.
37-25 (22) House Rule 13, Section 9(a)(4), is suspended to permit
37-26 the committee to add SECTION 4.01 to read as follows:
37-27 SECTION 4.01. On September 1, 2002, the comptroller shall
38-1 transfer the amount of $42 million from the retired school
38-2 employees group insurance fund created under Section 15, Article
38-3 3.50-4, Insurance Code, as amended by this Act, to the Texas school
38-4 employees uniform group coverage trust fund created under Section
38-5 8, Article 3.50-7, Insurance Code, as added by this Act. The
38-6 Teacher Retirement System of Texas shall use the amount transferred
38-7 under this section to establish and implement the uniform group
38-8 coverage program for school employees established under Article
38-9 3.50-7, Insurance Code, as added by this Act.
38-10 Explanation: This change is necessary to use a portion of
38-11 the current balance in the fund for the TRS-Care program to
38-12 implement the group coverage program for active school employees.
38-13 (23) House Rule 13, Section 9(a)(4), is suspended to permit
38-14 the committee to add SECTION 4.02 to read as follows:
38-15 SECTION 4.02. A portion of the amounts appropriated in
38-16 Article III, S.B. No. 1, Acts of the 77th Legislature, Regular
38-17 Session, 2001, to the Texas Education Agency is allocated as
38-18 provided by this section:
38-19 (1) for the fiscal year ending August 31, 2002, the
38-20 amount appropriated under Strategy A.2.1.: FSP-Equalized
38-21 Operations is reduced by the sum of $3 million and the amount
38-22 appropriated to the Teacher Retirement System of Texas is increased
38-23 by that amount for the establishment and implementation of the
38-24 uniform group coverage program for school employees established
38-25 under Article 3.50-7, Insurance Code, as added by this Act;
38-26 (2) for the fiscal year ending August 31, 2003, the
38-27 amount appropriated under Strategy A.2.1.: FSP-Equalized
39-1 Operations is reduced by the sum of $691,100,000 and the amount
39-2 appropriated to the Teacher Retirement System of Texas is increased
39-3 by that amount for payment of:
39-4 (A) school employee health coverage or
39-5 compensation supplementation under Article 3.50-8, Insurance Code,
39-6 as added by this Act; and
39-7 (B) state assistance in meeting the minimum
39-8 effort regarding school employee health coverage under Article
39-9 3.50-9, Insurance Code, as added by this Act;
39-10 (3) for the fiscal year ending August 31, 2003, the
39-11 amount appropriated under Strategy A.2.1.: FSP-Equalized
39-12 Operations is reduced by the sum of $1,361,000 and the amount
39-13 appropriated to the Teacher Retirement System of Texas is increased
39-14 by that amount for assistance to school districts in paying social
39-15 security taxes on amounts of supplemental compensation received by
39-16 district employees under Article 3.50-8, Insurance Code, as added
39-17 by this Act, as provided by Section 6, Article 3.50-9, Insurance
39-18 Code, as added by this Act; and
39-19 (4) for the fiscal year ending August 31, 2003, the
39-20 amount appropriated under Strategy A.2.1.: FSP-Equalized
39-21 Operations is reduced by the sum of $4.2 million and the amount
39-22 appropriated to the Health and Human Services Commission is
39-23 increased by that amount for payment of the costs of health
39-24 benefits coverage for children enrolled in the child health plan
39-25 under Section 62.1015, Health and Safety Code, as added by this
39-26 Act.
39-27 Explanation: This change is necessary to reallocate money
40-1 previously appropriated in Senate Bill 1 for the foundation school
40-2 program to the Teacher Retirement System of Texas for establishing
40-3 and implementing the group coverage program for active school
40-4 employees, for paying school employee health coverage or
40-5 compensation supplementation, state assistance in meeting the
40-6 minimum effort requirement, and assistance to certain school
40-7 districts for paying additional social security taxes, and to the
40-8 Health and Human Services Commission for paying costs of health
40-9 benefits coverage for children of school employees enrolled in the
40-10 child health plan.
40-11 (24) House Rule 13, Section 9(a)(4), is suspended to permit
40-12 the committee to add SECTION 4.03 to read as follows:
40-13 SECTION 4.03. The Legislative Budget Board shall increase the
40-14 number of full-time-equivalent positions authorized for the Teacher
40-15 Retirement System of Texas by S.B. No. 1, Acts of the 77th
40-16 Legislature, Regular Session, 2001, by 25 for each fiscal year of
40-17 the biennium ending August 31, 2003.
40-18 Explanation: This change is necessary to allow the Teacher
40-19 Retirement System of Texas to employ additional employees to
40-20 establish and implement the group coverage program for active
40-21 school employees.
40-22 (25) House Rule 13, Section 9(a)(4), is suspended to permit
40-23 the committee to add SECTION 4.04 to read as follows:
40-24 SECTION 4.04. The Legislative Budget Board shall increase the
40-25 number of full-time-equivalent positions authorized for the Texas
40-26 Education Agency by S.B. No. 1, Acts of the 77th Legislature,
40-27 Regular Session, 2001, by three for each fiscal year of the
41-1 biennium ending August 31, 2003.
41-2 Explanation: This change is necessary to allow the Texas
41-3 Education Agency to employ additional employees to implement the
41-4 group coverage program for active school employees and the system
41-5 for making associated payments to school districts.
41-6 (26) House Rule 13, Section 9(a)(4), is suspended to permit
41-7 the committee to add text to the transitional material in the bill,
41-8 as added by SECTIONS 5.02-5.06, House Bill 3343, to read as
41-9 follows:
41-10 SECTION 5.02. The Teacher Retirement System of Texas shall
41-11 transfer to the fund established under Section 8, Article 3.50-7,
41-12 Insurance Code, as added by this Act, any outstanding balance held
41-13 by the Teacher Retirement System of Texas as of December 31, 2001,
41-14 in the school employees group insurance fund established under
41-15 Section 15, Article 3.50-4, Insurance Code, that was designated for
41-16 use in programs relating to active school district employees.
41-17 SECTION 5.03. Not later than July 31, 2001, the Teacher
41-18 Retirement System of Texas shall provide written information to
41-19 school districts subject to Section 5(a-1), Article 3.50-7,
41-20 Insurance Code, as added by this Act, that provides a general
41-21 description of the uniform group coverage program established under
41-22 Article 3.50-7, Insurance Code, as added by this Act.
41-23 SECTION 5.04. A school district that becomes eligible to
41-24 participate in the uniform group coverage program established under
41-25 Article 3.50-7, Insurance Code, as added by this Act, as provided
41-26 by Section 5(b) of that article and that elects to participate in
41-27 the program beginning September 1, 2005, must notify the Teacher
42-1 Retirement System of Texas of the election not later than January
42-2 1, 2005.
42-3 SECTION 5.05. During the initial implementation of Article
42-4 3.50-7, Insurance Code, as added by this Act, and notwithstanding
42-5 any bidding requirements or other requirements set forth in Article
42-6 3.50-4, Insurance Code, or Article 3.50-7, Insurance Code, as added
42-7 by this Act, the Teacher Retirement System of Texas may amend any
42-8 agreement in effect on September 1, 2001, that it has entered into
42-9 under Article 3.50-4, Insurance Code, for benefits or
42-10 administration to extend application of that agreement to include
42-11 participants and programs under Article 3.50-7, Insurance Code, as
42-12 added by this Act, and may, as necessary, extend the periods of
42-13 contracts for benefits or administration in effect on September 1,
42-14 2001, under Article 3.50-4, Insurance Code.
42-15 SECTION 5.06. As soon as practicable after September 1, 2001,
42-16 the Health and Human Services Commission shall consult with the
42-17 appropriate federal agencies and make the determination required by
42-18 Section 62.1015, Health and Safety Code, as added by this Act.
42-19 Explanation: These changes are necessary to modify the
42-20 transitional material to accurately reflect the changes made to the
42-21 bill.
42-22 (27) House Rule 13, Section 9(a)(4), is suspended to permit
42-23 the committee to add text to the transitional material in the bill,
42-24 as added by SECTION 5.07, House Bill 3343, to read as follows:
42-25 SECTION 5.07. Notwithstanding any applicable state law
42-26 relating to competitive bidding requirements for school districts,
42-27 a school district that is required as of September 1, 2002, to
43-1 participate in the uniform group coverage program established under
43-2 Article 3.50-7, Insurance Code, as added by this Act, is exempt
43-3 from any requirement that the district request bids for health
43-4 insurance coverage before the renewal date of the district's
43-5 contract for health insurance coverage for the 2001-2002 school
43-6 year.
43-7 Explanation: This change is necessary to grant school
43-8 districts that will be required to participate in the uniform group
43-9 coverage plan additional flexibility in negotiating health
43-10 insurance coverage contracts for the 2001-2002 school year.
43-11 (28) House Rule 13, Section 9(a)(4), is suspended to permit
43-12 the committee to add text to the transitional material in the bill,
43-13 as added by SECTION 5.08, House Bill 3343, to read as follows:
43-14 SECTION 5.08. (a) Except as otherwise provided by this Act,
43-15 this Act takes effect September 1, 2001.
43-16 (b) Sections 5.03 and 5.07 of this Act take effect
43-17 immediately if this Act receives a vote of two-thirds of all the
43-18 members elected to each house, as provided by Section 39, Article
43-19 III, Texas Constitution. If this Act does not receive the vote
43-20 necessary for immediate effect, Sections 5.03 and 5.07 of this Act
43-21 take effect September 1, 2001.
43-22 Explanation: This change is necessary to allow certain
43-23 transitional provisions to have immediate effect.
Sadler
_______________________________
Speaker of the House
I certify that H.R. No. 1402 was adopted by the House on May
27, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House