By Sadler H.R. No. 1402
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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
2-1 unmarried child who is younger than 25 years of age, including:
2-2 (i) an adopted child;
2-3 (ii) a foster child, stepchild, or other
2-4 child who is in a regular parent-child relationship; and
2-5 (iii) a recognized natural child;
2-6 (C) a full-time or part-time employee's
2-7 recognized natural child, adopted child, foster child, stepchild,
2-8 or other child who is in a regular parent-child relationship and
2-9 who lives with or whose care is provided by the employee or the
2-10 surviving spouse on a regular basis, regardless of the child's age,
2-11 if the child is mentally retarded or physically incapacitated to
2-12 such an extent as to be dependent on the employee or surviving
2-13 spouse for care or support, as determined by the trustee; and
2-14 (D) notwithstanding any other provision of this
2-15 code, any other dependent of a full-time or part-time employee
2-16 specified by rules adopted by the trustee.
2-17 (4) "Employee" means a participating member of the
2-18 Teacher Retirement System of Texas who is employed by a
2-19 participating entity and who is not receiving coverage from a
2-20 uniform group insurance program under the Texas Employees Uniform
2-21 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
2-22 Insurance Code) or the Texas State College and University Employees
2-23 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
2-24 Insurance Code) or from the Texas Public School Retired Employees
2-25 Group Insurance Program established under Article 3.50-4 of this
2-26 code. The term does not include an individual performing personal
3-1 services as an independent contractor.
3-2 (5) "Health coverage plan" means any group policy or
3-3 contract, hospital service agreement, health maintenance
3-4 organization agreement, preferred provider arrangement, or any
3-5 similar group arrangement or any combination of those policies,
3-6 contracts, agreements, or arrangements that provides for, pays for,
3-7 or reimburses expenses for health care services.
3-8 (6) "Participating entity" means an entity
3-9 participating in the uniform group coverage program established
3-10 under this article. The term includes:
3-11 (A) a school district;
3-12 (B) another educational district whose employees
3-13 are members of the Teacher Retirement System of Texas;
3-14 (C) a regional education service center; and
3-15 (D) a charter school that meets the requirements
3-16 of Section 6 of this article.
3-17 (7) "Program" means the uniform group coverage program
3-18 established under this article.
3-19 (8) "Regional education service center" means a
3-20 regional education service center established under Chapter 8,
3-21 Education Code.
3-22 (9) "Trustee" means the Teacher Retirement System of
3-23 Texas.
3-24 Explanation: This change is necessary to clarify who is a
3-25 dependent eligible for coverage under the new group coverage
3-26 program and to clarify that certain educational districts whose
4-1 employees are members of the Teacher Retirement System of Texas are
4-2 also eligible to participate in the program.
4-3 (2) House Rule 13, Section 9(a)(4), is suspended to permit
4-4 the committee to add text changing Sections 4(d) and (e), Article
4-5 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
4-6 to read as follows:
4-7 (d) During the initial period of eligibility, coverage
4-8 provided under the program may not be made subject to a preexisting
4-9 condition limitation.
4-10 (e) The trustee may offer optional coverages to employees
4-11 participating in the program. The trustee by rule may define the
4-12 types of optional coverages offered under this subsection.
4-13 Explanation: These changes are necessary to clarify that
4-14 preexisting condition limitations may not be imposed during the
4-15 initial eligibility, and to authorize the provision of certain
4-16 optional coverages to participating employees.
4-17 (3) House Rule 13, Section 9(a)(4), is suspended to permit
4-18 the committee to add text changing Section 5, Article 3.50-7,
4-19 Insurance Code, as added by SECTION 1.01, House Bill 3343, to read
4-20 as follows:
4-21 Sec. 5. PARTICIPATION IN PROGRAM BY SCHOOL DISTRICTS, OTHER
4-22 EDUCATIONAL DISTRICTS, AND REGIONAL EDUCATION SERVICE CENTERS. (a)
4-23 Effective September 1, 2002, each school district with 500 or fewer
4-24 employees and each regional education service center is required to
4-25 participate in the program.
4-26 (a-1) Effective September 1, 2002, a school district that,
5-1 on January 1, 2001, had more than 500 employees but not more than
5-2 1,000 employees may elect to participate in the program. A school
5-3 district that elects to participate in the program under this
5-4 subsection must notify the trustee of the election, in the manner
5-5 prescribed by the trustee, not later than September 30, 2001. This
5-6 subsection expires January 1, 2002.
5-7 (b) Effective September 1, 2005, a school district with more
5-8 than 500 employees may elect to participate in the program. A
5-9 school district that elects to participate under this subsection
5-10 shall apply for participation in the manner prescribed by the
5-11 trustee by rule.
5-12 (b-1) Notwithstanding Subsection (b) of this section, a
5-13 school district with more than 500 employees may elect to
5-14 participate in the program before September 1, 2005, if the trustee
5-15 determines that participation by districts in that category would
5-16 be administratively feasible and cost-effective. This subsection
5-17 expires September 1, 2005.
5-18 (c) In determining the number of employees of a school
5-19 district for purposes of Subsections (a) and (b) of this section,
5-20 school districts that, on January 1, 2001, were members of a risk
5-21 pool established under the authority of Chapter 172, Local
5-22 Government Code, as provided by Section 22.004, Education Code, may
5-23 elect to be treated as a single unit. A school district shall
5-24 elect whether to be considered as a member of a risk pool under
5-25 this section by notifying the trustee not later than September 1,
5-26 2001.
6-1 (d) A risk pool in existence on January 1, 2001, that, as of
6-2 that date, provided group health coverage to 500 or fewer school
6-3 district employees may elect to participate in the program.
6-4 (e) A school district with 500 or fewer employees that is a
6-5 member of a risk pool described by Subsection (c) of this section
6-6 that provides group health coverage to more than 500 school
6-7 district employees must elect, not later than September 1, 2001,
6-8 whether to be treated as a school district with 500 or fewer
6-9 employees or as part of a unit with more than 500 employees. The
6-10 school district must notify the trustee of the election, in the
6-11 manner prescribed by the trustee, not later than September 1, 2001.
6-12 (f) For purposes of this section, participation in the
6-13 program by school districts covered by a risk pool is limited to
6-14 school districts covered by the risk pool as of January 1, 2001.
6-15 (g) Notwithstanding Subsection (a) of this section, a school
6-16 district otherwise subject to Subsection (a) of this section that,
6-17 on January 1, 2001, was individually self-funded for the provision
6-18 of health coverage to its employees may elect to not participate in
6-19 the program.
6-20 (h) Notwithstanding Subsection (a) of this section, a school
6-21 district otherwise subject to Subsection (a) of this section that
6-22 is a party to a contract for the provision of insurance coverage to
6-23 the employees of the district that is in effect on September 1,
6-24 2002, is not required to participate in the program until the
6-25 expiration of the contract period. A school district subject to
6-26 this subsection shall notify the trustee in the manner prescribed
7-1 by the trustee. This subsection expires March 1, 2004.
7-2 (i) An educational district described by Section 2(6)(B) of
7-3 this article that, on January 1, 2001, has 500 or fewer employees
7-4 may elect not to participate in the program.
7-5 Explanation: This change is necessary to clarify the
7-6 participation in the group coverage program of educational
7-7 districts that are not school districts but whose employees are
7-8 members of the Teacher Retirement System of Texas, to add a January
7-9 1, 2001, date for determination of the size of a school district or
7-10 risk pool, and to authorize larger districts to participate before
7-11 September 1, 2005, if the Teacher Retirement System of Texas
7-12 authorizes that early participation.
7-13 (4) House Rule 13, Section 9(a)(4), is suspended to permit
7-14 the committee to add text changing Sections 7(c) and (e), Article
7-15 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
7-16 to read as follows:
7-17 (c) A participating employee may select coverage in any
7-18 coverage plan offered by the trustee. The employee is not required
7-19 to continue participation in the coverage plan initially selected
7-20 and may select a higher or lower tier coverage plan than the plan
7-21 initially selected by the employee in the manner provided by
7-22 trustee rule. If the combined contributions received from the
7-23 state and the employing participating entity under Section 9 of
7-24 this article exceed the cost of a coverage plan selected by the
7-25 employee, the employee may use the excess amount of contributions
7-26 to obtain coverage under a higher tier coverage plan, or to pay all
8-1 or part of the cost of coverage for the employee's dependents. A
8-2 married couple, both of whom are eligible for coverage under the
8-3 program, may pool the amount of contributions to which the couple
8-4 are entitled under the program to obtain coverage for themselves
8-5 and dependent coverage.
8-6 (e) Notwithstanding Subsection (d) of this section, a
8-7 participating entity may pay any portion of what otherwise would be
8-8 the employee share of premiums and other costs associated with the
8-9 coverage selected by the employee.
8-10 Explanation: These changes are necessary to specify that an
8-11 employee participating in the group coverage program may elect
8-12 higher or lower coverage plans, clarifies the use of contributions
8-13 for dependent coverage, and expands the authority to pay for part
8-14 of an employee's premiums to all participating entities.
8-15 (5) House Rule 13, Sections 9(a)(1) and (4), are suspended
8-16 to permit the committee to add text changing Section 9, Article
8-17 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill 3343,
8-18 to read as follows:
8-19 Sec. 9. PAYMENT OF CONTRIBUTIONS FOR PROGRAM. (a) The state
8-20 shall assist employees of participating school districts and
8-21 charter schools in the purchase of group health coverage under this
8-22 article by providing for each covered employee the amount of $900
8-23 each state fiscal year or a greater amount as provided by the
8-24 General Appropriations Act. The state contribution shall be
8-25 distributed through the school finance formulas under Chapters 41
8-26 and 42, Education Code, and used by school districts and charter
9-1 schools as provided by Sections 42.2514 and 42.260, Education Code.
9-2 (b) The state shall assist employees of participating
9-3 regional education service centers and educational districts
9-4 described by Section 2(6)(B) of this article in the purchase of
9-5 group health coverage under this article by providing to the
9-6 employing service center for each covered employee the amount of
9-7 $900 each state fiscal year or a greater amount as provided by the
9-8 General Appropriations Act.
9-9 (c) A participating entity shall make contributions for the
9-10 program as provided by Article 3.50-9 of this code.
9-11 (d) An employee covered by the program shall pay that
9-12 portion of the cost of coverage selected by the employee that
9-13 exceeds the amount of the state contribution under Subsection (a)
9-14 or (b) of this section and the participating entity contribution
9-15 under Subsection (c) of this section. The employee may pay the
9-16 employee's contribution under this subsection from the amount
9-17 distributed to the employee under Article 3.50-8 of this code.
9-18 (e) Notwithstanding Subsection (d) of this section, a
9-19 participating entity may pay any portion of what otherwise would be
9-20 the employee share of premiums and other costs associated with the
9-21 coverage selected by the employee.
9-22 Explanation: This change is necessary to clarify how the
9-23 state contributions for the group coverage program will be made,
9-24 and to specify that educational districts that are not school
9-25 districts but whose employees are members of the Teacher Retirement
9-26 System of Texas are eligible for state contributions.
10-1 (6) House Rule 13, Sections 9(a)(4), is suspended to permit
10-2 the committee to add text changing Section 1, Article 3.50-8,
10-3 Insurance Code, as added by SECTION 1.02, House Bill 3343, by
10-4 adding a new definition of "cafeteria plan" to read as follows:
10-5 (1) "Cafeteria plan" means a plan as defined and authorized
10-6 by Section 125, Internal Revenue Code of 1986, and its subsequent
10-7 amendments.
10-8 Explanation: This change is necessary to clarify that
10-9 the reference in the bill to the use of cafeteria plans means a
10-10 plan as prescribed by federal law.
10-11 (7) House Rule 13, Sections 9(a)(4), is suspended to permit
10-12 the committee to add text changing Section 2, Article 3.50-8,
10-13 Insurance Code, as added by SECTION 1.02, House Bill 3343, to read
10-14 as follows:
10-15 Sec. 2. ACTIVE EMPLOYEE HEALTH COVERAGE OR COMPENSATION
10-16 SUPPLEMENTATION. (a) Each year, the trustee shall deliver to each
10-17 school district, including a school district that is ineligible for
10-18 state aid under Chapter 42, Education Code, each other educational
10-19 district that is a member of the Teacher Retirement System of
10-20 Texas, each eligible charter school, and each regional education
10-21 service center state funds in an amount, as determined by the
10-22 trustee, equal to the product of the number of employees employed
10-23 by the district, school, or service center multiplied by $1,000 or
10-24 a greater amount as provided by the General Appropriations Act for
10-25 purposes of this article.
10-26 (b) All funds received by a school district, other
11-1 educational district, eligible charter school, or regional
11-2 education service center under this article are held in trust for
11-3 the benefit of the employee on whose behalf the district, school,
11-4 or service center received the funds.
11-5 (c) The trustee shall distribute funds under this article in
11-6 equal monthly installments. The trustee is entitled to recover
11-7 from a school district, other educational district, eligible
11-8 charter school, or regional education service center any amount
11-9 distributed under this article to which the district, school, or
11-10 service center was not entitled.
11-11 (d) A determination by the trustee under this section is
11-12 final and may not be appealed.
11-13 Explanation: This change is necessary to clarify how the
11-14 state contributions for the group coverage program will be paid
11-15 and allocated, and to specify that educational districts that are
11-16 not school districts but whose employees are members of the Teacher
11-17 Retirement System of Texas are eligible for state contributions.
11-18 (8) House Rule 13, Section 9(a)(4), is suspended to permit
11-19 the committee to add text changing Section 3, Article 3.50-8,
11-20 Insurance Code, as added by SECTION 1.02, House Bill 3343, to read
11-21 as follows:
11-22 Sec. 3. EMPLOYEE ELECTION. (a) If an employee is covered by
11-23 a cafeteria plan of a school district, other educational district,
11-24 eligible charter school, or regional education service center, the
11-25 state contribution under this article shall be deposited in the
11-26 cafeteria plan, and the employee may elect among the options
12-1 provided by the cafeteria plan. A cafeteria plan receiving state
12-2 contributions under this article may include a medical savings
12-3 account option and must include, at a minimum, the following
12-4 options:
12-5 (1) a health care reimbursement account;
12-6 (2) a benefit or coverage other than that provided
12-7 under Article 3.50-7 of this code, or any employee coverage or
12-8 dependent coverage available under Article 3.50-7 of this code but
12-9 not otherwise fully funded by the state or the employer
12-10 contributions, any of which must be a "qualified benefit" under
12-11 Section 125, Internal Revenue Code of 1986, and its subsequent
12-12 amendments;
12-13 (3) an option for the employee to receive the state
12-14 contribution as supplemental compensation; or
12-15 (4) an option to divide the state contribution among
12-16 two or more of the other options provided under this subsection.
12-17 (b) If an employee is not covered by a cafeteria plan of a
12-18 school district, other educational district, eligible charter
12-19 school, or regional education service center, the state
12-20 contribution under this article shall be paid to the employee as
12-21 supplemental compensation.
12-22 (c) Supplemental compensation under this section must be in
12-23 addition to the rate of compensation that:
12-24 (1) the school district, other educational district,
12-25 eligible charter school, or regional education service center paid
12-26 the employee in the preceding school year; or
13-1 (2) the district, school, or service center would have
13-2 paid the employee in the preceding school year if the employee had
13-3 been employed by the district, school, or service center in the
13-4 same capacity in the preceding school year.
13-5 (d) For each state fiscal year, an election under this
13-6 section must be made before the later of:
13-7 (1) August 1 of the preceding state fiscal year; or
13-8 (2) the 31st day after the date the employee is hired.
13-9 (e) The trustee shall prescribe and distribute to each
13-10 school district, other educational district, eligible charter
13-11 school, and regional education service center:
13-12 (1) a model explanation written in English and Spanish
13-13 of the options employees may elect under this section and the
13-14 effect of electing each option; and
13-15 (2) an election form to be completed by employees.
13-16 (f) Each state fiscal year, a school district, other
13-17 educational district, eligible charter school, or regional
13-18 education service center shall prepare and distribute to each
13-19 employee a written explanation in English and Spanish, as
13-20 appropriate, of the options the employee may elect under this
13-21 section. The explanation must be based on the model explanation
13-22 prepared by the trustee under Subsection (e) of this section and
13-23 must reflect all available health coverage options available to the
13-24 employee. The explanation must be distributed to an employee
13-25 before the later of:
13-26 (1) July 1 of the preceding state fiscal year; or
14-1 (2) the fifth day after the date the employee is
14-2 hired.
14-3 (g) The written explanation under Subsection (f) of this
14-4 section must be accompanied by a copy of the election form
14-5 prescribed under Subsection (e)(2) of this section.
14-6 (h) Any unencumbered funds that are returned to the school
14-7 district from accounts established under Subsection (a) of this
14-8 section may be used only to provide employee compensation,
14-9 benefits, or both.
14-10 Explanation: This change is necessary to clarify the options
14-11 available to employees and to clarify the requirements for employee
14-12 elections.
14-13 (9) House Rule 13, Section 9(a)(4), is suspended to permit
14-14 the committee to add text changing Section 4, Article 3.50-8,
14-15 Insurance Code, as added by SECTION 1.02, House Bill 3343, by
14-16 adding a new Subsection (b) to read as follows:
14-17 (b) The trustee may enter into interagency contracts with
14-18 any agency of this state for the purpose of assistance in
14-19 implementing this article.
14-20 Explanation: This change is necessary to clarify that the
14-21 contract authority of the Teacher Retirement System of Texas
14-22 applies to contracts under Article 3.50-8, Insurance Code, as added
14-23 by the bill.
14-24 (9) House Rule 13, Section 9(a)(4), is suspended to permit
14-25 the committee to add text changing Sections 1 and 2, Article
14-26 3.50-10, Insurance Code, as added by SECTION 1.04, House Bill 3343
15-1 (corresponding to Article 3.50-9, Insurance Code, in conference
15-2 committee report), to read as follows:
15-3 Sec. 1. DEFINITIONS. In this article:
15-4 (1) "Participating employee" means an employee of a
15-5 school district, other educational district whose employees are
15-6 members of the Teacher Retirement System of Texas, participating
15-7 charter school, or regional education service center who
15-8 participates in a group health coverage plan provided by or through
15-9 the district, school, or service center.
15-10 (2) "Participating charter school" means an
15-11 open-enrollment charter school established under Subchapter D,
15-12 Chapter 12, Education Code, that participates in the uniform group
15-13 coverage program established under Article 3.50-7 of this code.
15-14 (3) "Regional education service center" means a
15-15 regional education service center established under Chapter 8,
15-16 Education Code.
15-17 Sec. 2. MAINTENANCE OF EFFORT FOR 2000-2001 SCHOOL YEAR. (a)
15-18 Subject to Section 3 of this article, and except as provided by
15-19 Section 5 of this article, a school district, other educational
15-20 district whose employees are members of the Teacher Retirement
15-21 System of Texas, participating charter school, or regional
15-22 education service center that, for the 2000-2001 school year, paid
15-23 amounts to share with employees the cost of coverage under a group
15-24 health coverage plan shall, for each fiscal year, use to provide
15-25 health coverage an amount for each participating employee at least
15-26 equal to the amount computed as provided by this section.
16-1 (b) The school district, other educational district,
16-2 participating charter school, or regional education service center
16-3 shall divide the amount that the district, school, or service
16-4 center paid during the 2000-2001 school year for the prior group
16-5 health coverage plan by the total number of full-time employees of
16-6 the district, school, or service center in the 2000-2001 school
16-7 year and multiply the result by the number of full-time employees
16-8 of the district, school, or service center in the fiscal year for
16-9 which the computation is made. If, for the 2000-2001 school year,
16-10 a school district, other educational district, participating
16-11 charter school, or regional education service center provided group
16-12 health coverage to its employees through a self-funded insurance
16-13 plan, the amount the district, school, or service center paid
16-14 during that school year for the plan includes only the amount of
16-15 regular contributions made by the district, school, or service
16-16 center to the plan.
16-17 (c) Amounts used as required by this section shall be
16-18 deposited, as applicable, in:
16-19 (1) the Texas school employees uniform group coverage
16-20 trust fund established under Section 8, Article 3.50-7, of this
16-21 code; or
16-22 (2) another fund established for the payment of
16-23 employee health coverage that meets requirements for those funds
16-24 prescribed by the Texas Education Agency.
16-25 Explanation: This change is necessary to clarify that
16-26 certain educational districts whose employees are members of the
17-1 Teacher Retirement System of Texas, open-enrollment charter schools
17-2 that participate in the statewide group health coverage program,
17-3 and regional education service centers are required to maintain
17-4 current spending efforts for employee health coverage.
17-5 (10) House Rule 13, Section 9(a)(4), is suspended to permit
17-6 the committee to add text changing Section 3, Article 3.50-10,
17-7 Insurance Code, as added by SECTION 1.04, House Bill 3343
17-8 (corresponding to Article 3.50-9, Insurance Code, in conference
17-9 committee report), to read as follows:
17-10 Sec. 3. MINIMUM EFFORT. (a) A school district, other
17-11 educational district, participating charter school, or regional
17-12 education service center shall, for each fiscal year, use to
17-13 provide health coverage an amount equal to the number of
17-14 participating employees of the district, school, or service center
17-15 multiplied by $1,800. Amounts used as required by this section
17-16 shall be deposited in a fund described by Section 2(c) of this
17-17 article.
17-18 (b) To comply with this section, a school district or
17-19 participating charter school may use state funds received under
17-20 Chapter 42, Education Code, other than funds that may be used under
17-21 that chapter only for a specific purpose, except that amounts a
17-22 district or school is required to use to pay contributions under a
17-23 group health coverage plan for district or school employees under
17-24 Section 42.2514 or 42.260, Education Code, other than amounts
17-25 described by Section 42.260(c)(2)(B), are not used in computing
17-26 whether the district or school complies with this section.
18-1 Explanation: This change is necessary to clarify that
18-2 certain educational districts whose employees are members of the
18-3 Teacher Retirement System of Texas, open-enrollment charter schools
18-4 that participate in the statewide group health coverage program,
18-5 and regional education service centers are required to meet the
18-6 same minimum spending effort applicable to school districts, and to
18-7 clarify that certain state funds school districts and participating
18-8 charter schools are required to use in meeting the minimum spending
18-9 effort count against the minimum effort.
18-10 (11) House Rule 13, Section 9(a)(4), is suspended to permit
18-11 the committee to add text changing Sections 4(a)-(a-7), Article
18-12 3.50-10, Insurance Code (corresponding to Article 3.50-9, Insurance
18-13 Code, in conference committee report), as added by SECTION 1.04,
18-14 House Bill 3343, to read as follows:
18-15 (a) For any state fiscal year beginning with the fiscal year
18-16 ending August 31, 2003, except as provided by Subsection (b) of
18-17 this section, a school district that imposes maintenance and
18-18 operations taxes at the maximum rate permitted under Section
18-19 45.003(d), Education Code, is entitled to state funds in an amount
18-20 equal to the difference, if any, between:
18-21 (1) an amount equal to the number of participating
18-22 employees of the district multiplied by $1,800; and
18-23 (2) if the following amount is less than the amount
18-24 specified by Subdivision (1) of this subsection, the sum of:
18-25 (A) the amount the district is required to use
18-26 to provide health coverage under Section 2 of this article for that
19-1 fiscal year; and
19-2 (B) the difference, if any, between:
19-3 (i) the amount determined under Section
19-4 42.2514(b)(2), Education Code; and
19-5 (ii) the amount determined under Section
19-6 42.2514(b)(1), Education Code, if that amount is less than the
19-7 amount specified by Subparagraph (i) of this paragraph.
19-8 (a-1) For the state fiscal year beginning September 1, 2002,
19-9 a school district or participating entity is entitled to state
19-10 funds in an amount equal to the difference, if any, between:
19-11 (1) an amount equal to the number of participating
19-12 employees of the district or entity multiplied by $1,800; and
19-13 (2) if the following amount is less than the amount
19-14 specified by Subdivision (1) of this subsection, the sum of:
19-15 (A) the amount the district or entity is
19-16 required to use to provide health coverage under Section 2 of this
19-17 article for that fiscal year; and
19-18 (B) the difference, if any, between:
19-19 (i) the amount determined under Section
19-20 42.2514(b)(2), Education Code; and
19-21 (ii) the amount determined under Section
19-22 42.2514(b)(1), Education Code, if that amount is less than the
19-23 amount specified by Subparagraph (i) of this paragraph.
19-24 (a-2) For the state fiscal year beginning September 1, 2003,
19-25 a school district or participating entity is entitled to state
19-26 funds in an amount equal to the difference, if any, between:
20-1 (1) an amount equal to the number of participating
20-2 employees of the district or entity multiplied by $1,500; and
20-3 (2) if the following amount is less than the amount
20-4 specified by Subdivision (1) of this subsection, the sum of:
20-5 (A) the amount the district or entity is
20-6 required to use to provide health coverage under Section 2 of this
20-7 article for that fiscal year; and
20-8 (B) the difference, if any, between:
20-9 (i) the amount determined under Section
20-10 42.2514(b)(2), Education Code; and
20-11 (ii) the amount determined under Section
20-12 42.2514(b)(1), Education Code, if that amount is less than the
20-13 amount specified by Subparagraph (i) of this paragraph.
20-14 (a-3) For the state fiscal year beginning September 1, 2004,
20-15 a school district or participating entity is entitled to state
20-16 funds in an amount equal to the difference, if any, between:
20-17 (1) an amount equal to the number of participating
20-18 employees of the district or entity multiplied by $1,200; and
20-19 (2) if the following amount is less than the amount
20-20 specified by Subdivision (1) of this subsection, the sum of:
20-21 (A) the amount the district or entity is
20-22 required to use to provide health coverage under Section 2 of this
20-23 article for that fiscal year; and
20-24 (B) the difference, if any, between:
20-25 (i) the amount determined under Section
20-26 42.2514(b)(2), Education Code; and
21-1 (ii) the amount determined under Section
21-2 42.2514(b)(1), Education Code, if that amount is less than the
21-3 amount specified by Subparagraph (i) of this paragraph.
21-4 (a-4) For the state fiscal year beginning September 1, 2005,
21-5 a school district or participating entity is entitled to state
21-6 funds in an amount equal to the difference, if any, between:
21-7 (1) an amount equal to the number of participating
21-8 employees of the district or entity multiplied by $900; and
21-9 (2) if the following amount is less than the amount
21-10 specified by Subdivision (1) of this subsection, the sum of:
21-11 (A) the amount the district or entity is
21-12 required to use to provide health coverage under Section 2 of this
21-13 article for that fiscal year; and
21-14 (B) the difference, if any, between:
21-15 (i) the amount determined under Section
21-16 42.2514(b)(2), Education Code; and
21-17 (ii) the amount determined under Section
21-18 42.2514(b)(1), Education Code, if that amount is less than the
21-19 amount specified by Subparagraph (i) of this paragraph.
21-20 (a-5) For the state fiscal year beginning September 1, 2006,
21-21 a school district or participating entity is entitled to state
21-22 funds in an amount equal to the difference, if any, between:
21-23 (1) an amount equal to the number of participating
21-24 employees of the district or entity multiplied by $600; and
21-25 (2) if the following amount is less than the amount
21-26 specified by Subdivision (1) of this subsection, the sum of:
22-1 (A) the amount the district or entity is
22-2 required to use to provide health coverage under Section 2 of this
22-3 article for that fiscal year; and
22-4 (B) the difference, if any, between:
22-5 (i) the amount determined under Section
22-6 42.2514(b)(2), Education Code; and
22-7 (ii) the amount determined under Section
22-8 42.2514(b)(1), Education Code, if that amount is less than the
22-9 amount specified by Subparagraph (i) of this paragraph.
22-10 (a-6) For the state fiscal year beginning September 1, 2007,
22-11 a school district or participating entity is entitled to state
22-12 funds in an amount equal to the difference, if any, between:
22-13 (1) an amount equal to the number of participating
22-14 employees of the district or entity multiplied by $300; and
22-15 (2) if the following amount is less than the amount
22-16 specified by Subdivision (1) of this subsection, the sum of:
22-17 (A) the amount the district or entity is
22-18 required to use to provide health coverage under Section 2 of this
22-19 article for that fiscal year; and
22-20 (B) the difference, if any, between:
22-21 (i) the amount determined under Section
22-22 42.2514(b)(2), Education Code; and
22-23 (ii) the amount determined under Section
22-24 42.2514(b)(1), Education Code, if that amount is less than the
22-25 amount specified by Subparagraph (i) of this paragraph.
22-26 (a-7) A school district that receives state funds under
23-1 Subsection (a) of this section for a state fiscal year is not
23-2 entitled to state funds under Subsection (a-1), (a-2), (a-3),
23-3 (a-4), (a-5), or (a-6) of this section.
23-4 Explanation: This change is necessary to require school
23-5 districts and participating charter schools for whom 75% of the
23-6 increased funding through the foundation school program funding
23-7 elements exceeds the level of $900 per employee per year to use
23-8 that excess towards meeting the minimum spending effort.
23-9 (12) House Rule 13, Section 9(a)(4), is suspended to permit
23-10 the committee to add text changing Section 4(c), Article 3.50-10,
23-11 Insurance Code (corresponding to Article 3.50-9, Insurance Code, in
23-12 conference committee report), as added by SECTION 1.04, House Bill
23-13 3343, to read as follows:
23-14 (c) The Teacher Retirement System of Texas shall distribute
23-15 state funds to school districts and participating entities under
23-16 this section in equal monthly installments. State funds received
23-17 under this section shall be deposited in a fund described by
23-18 Section 2(c) of this article. The Texas Education Agency shall
23-19 provide to the retirement system information necessary for the
23-20 retirement system to determine a school district's or participating
23-21 entity's eligibility for state funds under this section. The
23-22 trustee may enter into interagency contracts with any agency of
23-23 this state for the purpose of assistance in distributing funds
23-24 under this article.
23-25 Explanation: This change is necessary to permit the Teacher
23-26 Retirement System of Texas to enter into interagency contracts
24-1 relating to the distribution of state assistance towards meeting
24-2 the minimum spending effort.
24-3 (13) House Rule 13, Section 9(a)(4), is suspended to permit
24-4 the committee to add text changing Section 41.002(a), Education
24-5 Code, as amended by SECTIONS 2.02 and 2.03, senate committee
24-6 report, House Bill 3343, to read as follows:
24-7 SECTION 2.02. Effective September 1, 2001, Section 41.002(a),
24-8 Education Code, is amended to read as follows:
24-9 (a) A school district may not have a wealth per student that
24-10 exceeds $300,000 [$295,000].
24-11 SECTION 2.03. Effective September 1, 2002, Section 41.002(a),
24-12 Education Code, is amended to read as follows:
24-13 (a) A school district may not have a wealth per student that
24-14 exceeds $305,000 [$295,000].
24-15 Explanation: This change is necessary to increase the
24-16 equalized wealth level under the school finance system.
24-17 (14) House Rule 13, Section 9(a)(4), is suspended to permit
24-18 the committee to add text changing Section 42.2514, Education Code,
24-19 as added by SECTION 2.06, senate committee report, House Bill 3343,
24-20 to read as follows:
24-21 SECTION 2.05. Effective September 1, 2002, Subchapter E,
24-22 Chapter 42, Education Code, is amended by adding Section 42.2514 to
24-23 read as follows:
24-24 Sec. 42.2514. ADDITIONAL STATE AID FOR SCHOOL EMPLOYEE
24-25 BENEFITS. (a) In this section, "participating charter school"
24-26 means an open-enrollment charter school that participates in the
25-1 uniform group coverage program established under Article 3.50-7,
25-2 Insurance Code.
25-3 (b) For each school year, a school district, including a
25-4 school district that is otherwise ineligible for state aid under
25-5 this chapter, or a participating charter school is entitled to
25-6 state aid in an amount, as determined by the commissioner, equal to
25-7 the difference, if any, between:
25-8 (1) the amount determined by multiplying the amount of
25-9 $900 or the amount specified in the General Appropriations Act for
25-10 that year for purposes of the state contribution under Section 9,
25-11 Article 3.50-7, Insurance Code, by the number of district or school
25-12 employees who participate in a group health coverage plan provided
25-13 by or through the district or school; and
25-14 (2) an amount equal to 75 percent of the amount of:
25-15 (A) additional funds to which the district or
25-16 school is entitled due to the increase made by H.B. No. 3343, Acts
25-17 of the 77th Legislature, Regular Session, 2001, to:
25-18 (i) the equalized wealth level under
25-19 Section 41.002; and
25-20 (ii) the guaranteed level of state and
25-21 local funds per weighted student per cent of tax effort under
25-22 Section 42.302; or
25-23 (B) additional state aid to which the district
25-24 is entitled under Section 42.2513.
25-25 (c) A school district or participating charter school may
25-26 use state aid received under this section only to pay contributions
26-1 under a group health coverage plan for district or school
26-2 employees.
26-3 (d) A determination by the commissioner under this section
26-4 is final and may not be appealed.
26-5 (e) The commissioner may adopt rules to implement this
26-6 section.
26-7 Explanation: This change is necessary to permit
26-8 open-enrollment charter schools that participate in the uniform
26-9 group coverage plan to receive additional state funding if the
26-10 increased funding the school receives through the foundation school
26-11 program funding elements does not reach the level of $900 per
26-12 employee per year.
26-13 (15) House Rule 13, Section 9(a)(4), is suspended to permit
26-14 the committee to add text changing Section 42.260, Education Code,
26-15 as added by SECTION 2.10, senate committee report, House Bill 3343,
26-16 to read as follows:
26-17 SECTION 2.08. Effective September 1, 2002, Subchapter E,
26-18 Chapter 42, Education Code, is amended by adding Section 42.260 to
26-19 read as follows:
26-20 Sec. 42.260. USE OF CERTAIN FUNDS. (a) In this section,
26-21 "participating charter school" has the meaning assigned by Section
26-22 42.2514.
26-23 (b) For each year, the commissioner shall certify to each
26-24 school district or participating charter school the amount of:
26-25 (1) additional funds to which the district or school
26-26 is entitled due to the increase made by H.B. No. 3343, Acts of the
27-1 77th Legislature, Regular Session, 2001, to:
27-2 (A) the equalized wealth level under Section
27-3 41.002; or
27-4 (B) the guaranteed level of state and local
27-5 funds per weighted student per cent of tax effort under Section
27-6 42.302; or
27-7 (2) additional state aid to which the district or
27-8 school is entitled under Section 42.2513.
27-9 (c) Notwithstanding any other provision of this code, a
27-10 school district or participating charter school may use the
27-11 following amount of funds only to pay contributions under a group
27-12 health coverage plan for district or school employees:
27-13 (1) an amount equal to 75 percent of the amount
27-14 certified for the district or school under Subsection (b); or
27-15 (2) if the following amount is less than the amount
27-16 specified by Subdivision (1), the sum of:
27-17 (A) the amount determined by multiplying the
27-18 amount of $900 or the amount specified in the General
27-19 Appropriations Act for that year for purposes of the state
27-20 contribution under Section 9, Article 3.50-7, Insurance Code, by
27-21 the number of district or school employees who participate in a
27-22 group health coverage plan provided by or through the district or
27-23 school; and
27-24 (B) the difference between the amount necessary
27-25 for the district or school to comply with Section 3, Article
27-26 3.50-9, Insurance Code, for the school year and the amount the
28-1 district or school is required to use to provide health coverage
28-2 under Section 2 of that article for that year.
28-3 (d) A determination by the commissioner under this section
28-4 is final and may not be appealed.
28-5 (e) The commissioner may adopt rules to implement this
28-6 section.
28-7 Explanation: This change is necessary to require
28-8 open-enrollment charter schools that participate in the uniform
28-9 group coverage plan to use a portion of state funding received
28-10 through the increases in the foundation school program funding
28-11 elements to provide employee health coverage.
28-12 (16) House Rule 13, Section 9(a)(4), is suspended to permit
28-13 the committee to add text changing Section 42.302(a) Education
28-14 Code, as amended by SECTIONS 2.11 and 2.12, senate committee
28-15 report, House Bill 3343, to read as follows:
28-16 SECTION 2.09. Effective September 1, 2001, Section 42.302(a),
28-17 Education Code, is amended to read as follows:
28-18 (a) Each school district is guaranteed a specified amount
28-19 per weighted student in state and local funds for each cent of tax
28-20 effort over that required for the district's local fund assignment
28-21 up to the maximum level specified in this subchapter. The amount
28-22 of state support, subject only to the maximum amount under Section
28-23 42.303, is determined by the formula:
28-24 GYA = (GL X WADA X DTR X 100) - LR
28-25 where:
28-26 "GYA" is the guaranteed yield amount of state funds to be
29-1 allocated to the district;
29-2 "GL" is the dollar amount guaranteed level of state and local
29-3 funds per weighted student per cent of tax effort, which is $25.81
29-4 [$24.99] or a greater amount for any year provided by
29-5 appropriation;
29-6 "WADA" is the number of students in weighted average daily
29-7 attendance, which is calculated by dividing the sum of the school
29-8 district's allotments under Subchapters B and C, less any allotment
29-9 to the district for transportation, any allotment under Section
29-10 42.158, and 50 percent of the adjustment under Section 42.102, by
29-11 the basic allotment for the applicable year;
29-12 "DTR" is the district enrichment tax rate of the school
29-13 district, which is determined by subtracting the amounts specified
29-14 by Subsection (b) from the total amount of maintenance and
29-15 operations taxes collected by the school district for the
29-16 applicable school year and dividing the difference by the quotient
29-17 of the district's taxable value of property as determined under
29-18 Subchapter M, Chapter 403, Government Code, or, if applicable,
29-19 under Section 42.2521, divided by 100; and
29-20 "LR" is the local revenue, which is determined by multiplying
29-21 "DTR" by the quotient of the district's taxable value of property
29-22 as determined under Subchapter M, Chapter 403, Government Code, or,
29-23 if applicable, under Section 42.2521, divided by 100.
29-24 SECTION 2.10. Effective September 1, 2002, Section 42.302(a),
29-25 Education Code, is amended to read as follows:
29-26 (a) Each school district is guaranteed a specified amount
30-1 per weighted student in state and local funds for each cent of tax
30-2 effort over that required for the district's local fund assignment
30-3 up to the maximum level specified in this subchapter. The amount
30-4 of state support, subject only to the maximum amount under Section
30-5 42.303, is determined by the formula:
30-6 GYA = (GL X WADA X DTR X 100) - LR
30-7 where:
30-8 "GYA" is the guaranteed yield amount of state funds to be
30-9 allocated to the district;
30-10 "GL" is the dollar amount guaranteed level of state and local
30-11 funds per weighted student per cent of tax effort, which is $27.14
30-12 [$24.99] or a greater amount for any year provided by
30-13 appropriation;
30-14 "WADA" is the number of students in weighted average daily
30-15 attendance, which is calculated by dividing the sum of the school
30-16 district's allotments under Subchapters B and C, less any allotment
30-17 to the district for transportation, any allotment under Section
30-18 42.158, and 50 percent of the adjustment under Section 42.102, by
30-19 the basic allotment for the applicable year;
30-20 "DTR" is the district enrichment tax rate of the school
30-21 district, which is determined by subtracting the amounts specified
30-22 by Subsection (b) from the total amount of maintenance and
30-23 operations taxes collected by the school district for the
30-24 applicable school year and dividing the difference by the quotient
30-25 of the district's taxable value of property as determined under
30-26 Subchapter M, Chapter 403, Government Code, or, if applicable,
31-1 under Section 42.2521, divided by 100; and
31-2 "LR" is the local revenue, which is determined by multiplying
31-3 "DTR" by the quotient of the district's taxable value of property
31-4 as determined under Subchapter M, Chapter 403, Government Code, or,
31-5 if applicable, under Section 42.2521, divided by 100.
31-6 Explanation: This change is necessary to increase the
31-7 guaranteed level of state and local funding per weighted student
31-8 per penny of tax effort.
31-9 (17) House Rule 13, Section 9(a)(4), is suspended to permit
31-10 the committee to add text adding Subsection (l) to Section 26.08,
31-11 Tax Code, as amended by SECTION 1.06, House Bill 3343, to read as
31-12 follows:
31-13 (l) For purposes of Subsection (k), the amount of state
31-14 funds that would have been available to a school district in the
31-15 preceding year is computed using the maximum tax rate for the
31-16 current year under Section 42.253(e), Education Code.
31-17 Explanation: This change is necessary to clarify that school
31-18 district rollback tax rates that are adjusted for tax increases in
31-19 connection with the minimum spending effort are computed in the
31-20 same manner as other school district rollback tax rates.
31-21 (18) House Rule 13, Section 9(a)(4), is suspended to permit
31-22 the committee to add text changing Section 62.1015, Health and
31-23 Safety Code, as added by SECTION 1.07, House Bill 3343 to read as
31-24 follows:
31-25 SECTION 1.04. Subchapter C, Chapter 62, Health and Safety
31-26 Code, is amended by adding Section 62.1015 to read as follows:
32-1 Sec. 62.1015. ELIGIBILITY OF CERTAIN CHILDREN; DISALLOWANCE
32-2 OF MATCHING FUNDS. (a) In this section, "charter school,"
32-3 "employee," and "regional education service center" have the
32-4 meanings assigned by Section 2, Article 3.50-7, Insurance Code.
32-5 (b) A child of an employee of a charter school, school
32-6 district, other educational district whose employees are members of
32-7 the Teacher Retirement System of Texas, or regional education
32-8 service center may be enrolled in health benefits coverage under
32-9 the child health plan. A child enrolled in the child health plan
32-10 under this section participates in the same manner as any other
32-11 child enrolled in the child health plan.
32-12 (c) The cost of health benefits coverage for children
32-13 enrolled in the child health plan under this section shall be paid
32-14 as provided in the General Appropriations Act. Expenditures made to
32-15 provide health benefits coverage under this section may not be
32-16 included for the purpose of determining the state children's health
32-17 insurance expenditures, as that term is defined by 42 U.S.C.
32-18 Section 1397ee(d)(2)(B), as amended, unless the Health and Human
32-19 Services Commission, after consultation with the appropriate
32-20 federal agencies, determines that the expenditures may be included
32-21 without adversely affecting federal matching funding for the child
32-22 health plan provided under this chapter.
32-23 Explanation: This change is necessary to provide for coverage
32-24 under the child health program for children of employees of all
32-25 entities eligible to participate in the new group coverage plan and
32-26 to clarify the Health and Human Services Commission's authority to
33-1 determine whether resulting expenditures affect federal matching
33-2 funds for the child health program.
33-3 (19) House Rule 13, Section 9(a)(4), is suspended to permit
33-4 the committee to add text changing Section 3, Article 3.51,
33-5 Insurance Code, as amended by SECTION 3.16, House Bill 3343, by
33-6 adding a new Subsection (b) to read as follows:
33-7 (b) This section does not preclude an entity described by
33-8 Subsection (a) of this section from procuring contracts under this
33-9 article for the provision of optional insurance coverages to the
33-10 employees of the entity.
33-11 Explanation: This change is necessary to clarify that a
33-12 participating entity retains the authority to purchase optional
33-13 coverages for its employees.
33-14 (20) House Rule 13, Section 9(a)(4), is suspended to permit
33-15 the committee to add text changing Article 26.036(c), Insurance
33-16 Code, as added by SECTION 2.17, House Bill 3343, to read as
33-17 follows:
33-18 (c) An independent school district that is participating in
33-19 the uniform group coverage program established under Article 3.50-7
33-20 of this code may not participate in the small employer market under
33-21 this article for health insurance coverage and may not renew a
33-22 health insurance contract obtained in accordance with this article
33-23 after the date on which the program of coverages provided under
33-24 Article 3.50-7 of this code is implemented. This subsection does
33-25 not affect a contract for the provision of optional coverages not
33-26 included in a health benefits plan under this chapter.
34-1 Explanation: This change is necessary to clarify that
34-2 an independent school district retains the authority to purchase
34-3 optional coverages for its employees through the small employer
34-4 program under Chapter 26, Insurance Code.
34-5 (21) House Rule 13, Section 9(a)(4), is suspended to permit
34-6 the committee to add text changing Section 22.004, Education Code,
34-7 as amended by SECTION 3.18, House Bill 3343, to read as follows:
34-8 Sec. 22.004. GROUP HEALTH BENEFITS FOR SCHOOL EMPLOYEES. (a)
34-9 A [Each] district shall participate in the uniform group coverage
34-10 program established under Article 3.50-7, Insurance Code, as
34-11 provided by Section 5 of that article.
34-12 (b) A district that does not participate in the program
34-13 described by Subsection (a) shall make available to its employees
34-14 group health coverage provided by a risk pool established by one or
34-15 more school districts under Chapter 172, Local Government Code, or
34-16 under a policy of insurance or group contract issued by an insurer,
34-17 a company subject to Chapter 20, Insurance Code, or a health
34-18 maintenance organization under the Texas Health Maintenance
34-19 Organization Act (Chapter 20A, Vernon's Texas Insurance Code). The
34-20 coverage must meet the substantive coverage requirements of Article
34-21 3.51-6, Insurance Code, and any other law applicable to group
34-22 health insurance policies or contracts issued in this state. The
34-23 coverage must include major medical treatment but may exclude
34-24 experimental procedures. In this subsection, "major medical
34-25 treatment" means a medical, surgical, or diagnostic procedure for
34-26 illness or injury. The coverage may include managed care or
35-1 preventive care and must be comparable to the basic health coverage
35-2 provided under the Texas Employees Uniform Group Insurance Benefits
35-3 Act (Article 3.50-2, Vernon's Texas Insurance Code). The board of
35-4 trustees of the Teacher Retirement System of Texas shall adopt
35-5 rules to determine whether a school district's group health
35-6 coverage is comparable to the basic health coverage specified by
35-7 this subsection. The rules must provide for consideration of the
35-8 following factors concerning the district's coverage in determining
35-9 whether the district's coverage is comparable to the basic health
35-10 coverage specified by this subsection:
35-11 (1) the deductible amount for service provided inside
35-12 and outside of the network;
35-13 (2) the coinsurance percentages for service provided
35-14 inside and outside of the network;
35-15 (3) the maximum amount of coinsurance payments a
35-16 covered person is required to pay;
35-17 (4) the amount of the copayment for an office visit;
35-18 (5) the schedule of benefits and the scope of
35-19 coverage;
35-20 (6) the lifetime maximum benefit amount; and
35-21 (7) verification that the coverage is issued by a
35-22 provider licensed to do business in this state by the Texas
35-23 Department of Insurance or is provided by a risk pool authorized
35-24 under Chapter 172, Local Government Code, or that a district is
35-25 capable of covering the assumed liabilities in the case of coverage
35-26 provided through district self-insurance.
36-1 (c) [(b)] The cost of the coverage provided under the
36-2 program described by Subsection (a) shall be paid by the state,
36-3 the district, and the employees in the manner provided by Article
36-4 3.50-7, Insurance Code. The cost of coverage provided under a plan
36-5 adopted under Subsection (b) shall [may] be shared by the employees
36-6 and the district using the contributions by the state described by
36-7 Section 9, Article 3.50-7, Insurance Code, and Article 3.50-8,
36-8 Insurance Code.
36-9 (d) [(c)] Each district shall report the district's
36-10 compliance with this section [subsection] to the executive director
36-11 of the Teacher Retirement System of Texas not later than March 1 of
36-12 each even-numbered year in the manner required by the board of
36-13 trustees of the Teacher Retirement System of Texas. For a district
36-14 that does not participate in the program described by Subsection
36-15 (a), the [The] report must be based on the district group health
36-16 coverage plan in effect during the current plan year and must
36-17 include:
36-18 (1) appropriate documentation of:
36-19 (A) the district's contract for group health
36-20 coverage with a provider licensed to do business in this state by
36-21 the Texas Department of Insurance or a risk pool authorized under
36-22 Chapter 172, Local Government Code; or
36-23 (B) a resolution of the board of trustees of the
36-24 district authorizing a self-insurance plan for district employees
36-25 and of the district's review of district ability to cover the
36-26 liability assumed;
37-1 (2) the schedule of benefits;
37-2 (3) the premium rate sheet, including the amount paid
37-3 by the district and employee;
37-4 (4) the number of employees covered by the [each]
37-5 health coverage plan offered by the district; and
37-6 (5) any other information considered appropriate by
37-7 the executive director of the Teacher Retirement System of Texas.
37-8 (e) [(d)] Based on the criteria prescribed by Subsection (b)
37-9 [(a)], the executive director of the Teacher Retirement System of
37-10 Texas shall, for each district that does not participate in the
37-11 program described by Subsection (a), certify whether a district's
37-12 coverage is comparable to the basic health coverage provided under
37-13 the Texas Employees Uniform Group Insurance Benefits Act (Article
37-14 3.50-2, Vernon's Texas Insurance Code). If the executive director
37-15 of the Teacher Retirement System of Texas determines that the group
37-16 health coverage offered by a district is not comparable, the
37-17 executive director shall report that information to the district
37-18 and to the Legislative Budget Board. The executive director shall
37-19 submit a report to the legislature not later than September 1 of
37-20 each even-numbered year describing the status of each district's
37-21 group health coverage program based on the information contained in
37-22 the report required by Subsection (d) [(c)] and the certification
37-23 required by this subsection.
37-24 (f) [(e)] A school district that does not participate in the
37-25 program described by Subsection (a) may not contract with an
37-26 insurer, a company subject to Chapter 20, Insurance Code, or a
38-1 health maintenance organization to issue a policy or contract under
38-2 this section, or with any person to assist the school district in
38-3 obtaining or managing the policy or contract unless, before the
38-4 contract is entered into, the insurer, company, organization, or
38-5 person provides the district with an audited financial statement
38-6 showing the financial condition of the insurer, company,
38-7 organization, or person.
38-8 (g) [(f)] An insurer, a company subject to Chapter 20,
38-9 Insurance Code, or a health maintenance organization that issues a
38-10 policy or contract under this section and any person that assists
38-11 the school district in obtaining or managing the policy or contract
38-12 for compensation shall provide an annual audited financial
38-13 statement to the school district showing the financial condition of
38-14 the insurer, company, organization, or person.
38-15 (h) [(g)] An audited financial statement provided under this
38-16 section must be made in accordance with rules adopted by the
38-17 commissioner of insurance or state auditor, as applicable.
38-18 (i) Notwithstanding any other provision of this section, a
38-19 district participating in the uniform group coverage program
38-20 established under Article 3.50-7, Insurance Code, may not make
38-21 group health coverage available to its employees under this
38-22 section after the date on which the program of coverages provided
38-23 under Article 3.50-7, Insurance Code, is implemented.
38-24 (j) This section does not preclude a district that is
38-25 participating in the uniform group coverage program established
38-26 under Article 3.50-7, Insurance Code, from entering into contracts
39-1 to provide optional insurance coverages for the employees of the
39-2 district.
39-3 Explanation: This change is necessary to clarify that a
39-4 school district that does not participate in the group coverage
39-5 program retains the responsibility to offer coverage comparable to
39-6 the plan provided to state employees through the Employees
39-7 Retirement System of Texas, and also retains the authority to
39-8 purchase optional coverages for its employees.
39-9 (22) House Rule 13, Section 9(a)(4), is suspended to permit
39-10 the committee to add SECTION 4.01 to read as follows:
39-11 SECTION 4.01. On September 1, 2002, the comptroller shall
39-12 transfer the amount of $42 million from the retired school
39-13 employees group insurance fund created under Section 15, Article
39-14 3.50-4, Insurance Code, as amended by this Act, to the Texas school
39-15 employees uniform group coverage trust fund created under Section
39-16 8, Article 3.50-7, Insurance Code, as added by this Act. The
39-17 Teacher Retirement System of Texas shall use the amount transferred
39-18 under this section to establish and implement the uniform group
39-19 coverage program for school employees established under Article
39-20 3.50-7, Insurance Code, as added by this Act.
39-21 Explanation: This change is necessary to use a portion of
39-22 the current balance in the fund for the TRS-Care program to
39-23 implement the group coverage program for active school employees.
39-24 (23) House Rule 13, Section 9(a)(4), is suspended to permit
39-25 the committee to add SECTION 4.02 to read as follows:
39-26 SECTION 4.02. A portion of the amounts appropriated in
40-1 Article III, S.B. No. 1, Acts of the 77th Legislature, Regular
40-2 Session, 2001, to the Texas Education Agency is allocated as
40-3 provided by this section:
40-4 (1) for the fiscal year ending August 31, 2002, the
40-5 amount appropriated under Strategy A.2.1.: FSP-Equalized
40-6 Operations is reduced by the sum of $3 million and the amount
40-7 appropriated to the Teacher Retirement System of Texas is increased
40-8 by that amount for the establishment and implementation of the
40-9 uniform group coverage program for school employees established
40-10 under Article 3.50-7, Insurance Code, as added by this Act;
40-11 (2) for the fiscal year ending August 31, 2003, the
40-12 amount appropriated under Strategy A.2.1.: FSP-Equalized
40-13 Operations is reduced by the sum of $691,100,000 and the amount
40-14 appropriated to the Teacher Retirement System of Texas is increased
40-15 by that amount for payment of:
40-16 (A) school employee health coverage or
40-17 compensation supplementation under Article 3.50-8, Insurance Code,
40-18 as added by this Act; and
40-19 (B) state assistance in meeting the minimum
40-20 effort regarding school employee health coverage under Article
40-21 3.50-9, Insurance Code, as added by this Act;
40-22 (3) for the fiscal year ending August 31, 2003, the
40-23 amount appropriated under Strategy A.2.1.: FSP-Equalized
40-24 Operations is reduced by the sum of $1,361,000 and the amount
40-25 appropriated to the Teacher Retirement System of Texas is increased
40-26 by that amount for assistance to school districts in paying social
41-1 security taxes on amounts of supplemental compensation received by
41-2 district employees under Article 3.50-8, Insurance Code, as added
41-3 by this Act, as provided by Section 6, Article 3.50-9, Insurance
41-4 Code, as added by this Act; and
41-5 (4) for the fiscal year ending August 31, 2003, the
41-6 amount appropriated under Strategy A.2.1.: FSP-Equalized
41-7 Operations is reduced by the sum of $4.2 million and the amount
41-8 appropriated to the Health and Human Services Commission is
41-9 increased by that amount for payment of the costs of health
41-10 benefits coverage for children enrolled in the child health plan
41-11 under Section 62.1015, Health and Safety Code, as added by this
41-12 Act.
41-13 Explanation: This change is necessary to reallocate money
41-14 previously appropriated in Senate Bill 1 for the foundation school
41-15 program to the Teacher Retirement System of Texas for establishing
41-16 and implementing the group coverage program for active school
41-17 employees, for paying school employee health coverage or
41-18 compensation supplementation, state assistance in meeting the
41-19 minimum effort requirement, and assistance to certain school
41-20 districts for paying additional social security taxes, and to the
41-21 Health and Human Services Commission for paying costs of health
41-22 benefits coverage for children of school employees enrolled in the
41-23 child health plan.
41-24 (24) House Rule 13, Section 9(a)(4), is suspended to permit
41-25 the committee to add SECTION 4.03 to read as follows:
41-26 SECTION 4.03. The Legislative Budget Board shall increase the
42-1 number of full-time-equivalent positions authorized for the Teacher
42-2 Retirement System of Texas by S.B. No. 1, Acts of the 77th
42-3 Legislature, Regular Session, 2001, by 25 for each fiscal year of
42-4 the biennium ending August 31, 2003.
42-5 Explanation: This change is necessary to allow the Teacher
42-6 Retirement System of Texas to employ additional employees to
42-7 establish and implement the group coverage program for active
42-8 school employees.
42-9 (25) House Rule 13, Section 9(a)(4), is suspended to permit
42-10 the committee to add SECTION 4.04 to read as follows:
42-11 SECTION 4.04. The Legislative Budget Board shall increase the
42-12 number of full-time-equivalent positions authorized for the Texas
42-13 Education Agency by S.B. No. 1, Acts of the 77th Legislature,
42-14 Regular Session, 2001, by three for each fiscal year of the
42-15 biennium ending August 31, 2003.
42-16 Explanation: This change is necessary to allow the Texas
42-17 Education Agency to employ additional employees to implement the
42-18 group coverage program for active school employees and the system
42-19 for making associated payments to school districts.
42-20 (26) House Rule 13, Section 9(a)(4), is suspended to permit
42-21 the committee to add text to the transitional material in the bill,
42-22 as added by SECTIONS 5.02-5.06, House Bill 3343, to read as
42-23 follows:
42-24 SECTION 5.02. The Teacher Retirement System of Texas shall
42-25 transfer to the fund established under Section 8, Article 3.50-7,
42-26 Insurance Code, as added by this Act, any outstanding balance held
43-1 by the Teacher Retirement System of Texas as of December 31, 2001,
43-2 in the school employees group insurance fund established under
43-3 Section 15, Article 3.50-4, Insurance Code, that was designated for
43-4 use in programs relating to active school district employees.
43-5 SECTION 5.03. Not later than July 31, 2001, the Teacher
43-6 Retirement System of Texas shall provide written information to
43-7 school districts subject to Section 5(a-1), Article 3.50-7,
43-8 Insurance Code, as added by this Act, that provides a general
43-9 description of the uniform group coverage program established under
43-10 Article 3.50-7, Insurance Code, as added by this Act.
43-11 SECTION 5.04. A school district that becomes eligible to
43-12 participate in the uniform group coverage program established under
43-13 Article 3.50-7, Insurance Code, as added by this Act, as provided
43-14 by Section 5(b) of that article and that elects to participate in
43-15 the program beginning September 1, 2005, must notify the Teacher
43-16 Retirement System of Texas of the election not later than January
43-17 1, 2005.
43-18 SECTION 5.05. During the initial implementation of Article
43-19 3.50-7, Insurance Code, as added by this Act, and notwithstanding
43-20 any bidding requirements or other requirements set forth in Article
43-21 3.50-4, Insurance Code, or Article 3.50-7, Insurance Code, as added
43-22 by this Act, the Teacher Retirement System of Texas may amend any
43-23 agreement in effect on September 1, 2001, that it has entered into
43-24 under Article 3.50-4, Insurance Code, for benefits or
43-25 administration to extend application of that agreement to include
43-26 participants and programs under Article 3.50-7, Insurance Code, as
44-1 added by this Act, and may, as necessary, extend the periods of
44-2 contracts for benefits or administration in effect on September 1,
44-3 2001, under Article 3.50-4, Insurance Code.
44-4 SECTION 5.06. As soon as practicable after September 1, 2001,
44-5 the Health and Human Services Commission shall consult with the
44-6 appropriate federal agencies and make the determination required by
44-7 Section 62.1015, Health and Safety Code, as added by this Act.
44-8 Explanation: These changes are necessary to modify the
44-9 transitional material to accurately reflect the changes made to the
44-10 bill.
44-11 (27) House Rule 13, Section 9(a)(4), is suspended to permit
44-12 the committee to add text to the transitional material in the bill,
44-13 as added by SECTION 5.07, House Bill 3343, to read as follows:
44-14 SECTION 5.07. Notwithstanding any applicable state law
44-15 relating to competitive bidding requirements for school districts,
44-16 a school district that is required as of September 1, 2002, to
44-17 participate in the uniform group coverage program established under
44-18 Article 3.50-7, Insurance Code, as added by this Act, is exempt
44-19 from any requirement that the district request bids for health
44-20 insurance coverage before the renewal date of the district's
44-21 contract for health insurance coverage for the 2001-2002 school
44-22 year.
44-23 Explanation: This change is necessary to grant school
44-24 districts that will be required to participate in the uniform group
44-25 coverage plan additional flexibility in negotiating health
44-26 insurance coverage contracts for the 2001-2002 school year.
45-1 (28) House Rule 13, Section 9(a)(4), is suspended to permit
45-2 the committee to add text to the transitional material in the bill,
45-3 as added by SECTION 5.08, House Bill 3343, to read as follows:
45-4 SECTION 5.08. (a) Except as otherwise provided by this Act,
45-5 this Act takes effect September 1, 2001.
45-6 (b) Sections 5.03 and 5.07 of this Act take effect
45-7 immediately if this Act receives a vote of two-thirds of all the
45-8 members elected to each house, as provided by Section 39, Article
45-9 III, Texas Constitution. If this Act does not receive the vote
45-10 necessary for immediate effect, Sections 5.03 and 5.07 of this Act
45-11 take effect September 1, 2001.
45-12 Explanation: This change is necessary to allow certain
45-13 transitional provisions to have immediate effect.