By: Bivins S.R. No. 1255
SENATE RESOLUTION
1-1 BE IT RESOLVED by the Senate of the State of Texas, 77th
1-2 Legislature, Regular Session, 2001, That Senate Rule 12.03 be
1-3 suspended in part as provided by Senate Rule 12.08 to enable the
1-4 conference committee appointed to resolve the differences on House
1-5 Bill No. 3343, relating to the operation and funding of certain
1-6 group coverage programs for certain school and educational
1-7 employees and their dependents, to consider and take action on the
1-8 following matters:
1-9 (1) Senate Rules 12.03(1) and (4) are suspended to permit
1-10 the committee to add text changing Section 2, Article 3.50-7,
1-11 Insurance Code, as added by SECTION 1.01, House Bill No. 3343, to
1-12 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:
1-25 (i) an adopted child;
2-1 (ii) a foster child, stepchild, or other
2-2 child who is in a regular parent-child relationship; and
2-3 (iii) a recognized natural child;
2-4 (C) a full-time or part-time employee's
2-5 recognized natural child, adopted child, foster child, stepchild,
2-6 or other child who is in a regular parent-child relationship and
2-7 who lives with or whose care is provided by the employee or the
2-8 surviving spouse on a regular basis, regardless of the child's age,
2-9 if the child is mentally retarded or physically incapacitated to
2-10 such an extent as to be dependent on the employee or surviving
2-11 spouse for care or support, as determined by the trustee; and
2-12 (D) notwithstanding any other provision of this
2-13 code, any other dependent of a full-time or part-time employee
2-14 specified by rules adopted by the trustee.
2-15 (4) "Employee" means a participating member of the
2-16 Teacher Retirement System of Texas who is employed by a
2-17 participating entity and who is not receiving coverage from a
2-18 uniform group insurance program under the Texas Employees Uniform
2-19 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
2-20 Insurance Code) or the Texas State College and University Employees
2-21 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
2-22 Insurance Code) or from the Texas Public School Retired Employees
2-23 Group Insurance Program established under Article 3.50-4 of this
2-24 code. The term does not include an individual performing personal
2-25 services as an independent contractor.
2-26 (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.
4-1 (2) Senate Rule 12.03(4) is suspended to permit the
4-2 committee to add text changing Sections 4(d) and (e), Article
4-3 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill
4-4 No. 3343, to read as follows:
4-5 (d) During the initial period of eligibility, coverage
4-6 provided under the program may not be made subject to a preexisting
4-7 condition limitation.
4-8 (e) The trustee may offer optional coverages to employees
4-9 participating in the program. The trustee by rule may define the
4-10 types of optional coverages offered under this subsection.
4-11 Explanation: These changes are necessary to clarify that
4-12 preexisting condition limitations may not be imposed during the
4-13 initial eligibility, and to authorize the provision of certain
4-14 optional coverages to participating employees.
4-15 (3) Senate Rule 12.03(4) is suspended to permit the
4-16 committee to add text changing Section 5, Article 3.50-7, Insurance
4-17 Code, as added by SECTION 1.01, House Bill No. 3343, to read as
4-18 follows:
4-19 Sec. 5. PARTICIPATION IN PROGRAM BY SCHOOL DISTRICTS, OTHER
4-20 EDUCATIONAL DISTRICTS, AND REGIONAL EDUCATION SERVICE CENTERS.
4-21 (a) Effective September 1, 2002, each school district with 500 or
4-22 fewer employees and each regional education service center is
4-23 required to participate in the program.
4-24 (a-1) Effective September 1, 2002, a school district that,
4-25 on January 1, 2001, had more than 500 employees but not more than
4-26 1,000 employees may elect to participate in the program. A school
5-1 district that elects to participate in the program under this
5-2 subsection must notify the trustee of the election, in the manner
5-3 prescribed by the trustee, not later than September 30, 2001. This
5-4 subsection expires January 1, 2002.
5-5 (b) Effective September 1, 2005, a school district with more
5-6 than 500 employees may elect to participate in the program. A
5-7 school district that elects to participate under this subsection
5-8 shall apply for participation in the manner prescribed by the
5-9 trustee by rule.
5-10 (b-1) Notwithstanding Subsection (b) of this section, a
5-11 school district with more than 500 employees may elect to
5-12 participate in the program before September 1, 2005, if the trustee
5-13 determines that participation by districts in that category would
5-14 be administratively feasible and cost-effective. This subsection
5-15 expires September 1, 2005.
5-16 (c) In determining the number of employees of a school
5-17 district for purposes of Subsections (a) and (b) of this section,
5-18 school districts that, on January 1, 2001, were members of a risk
5-19 pool established under the authority of Chapter 172, Local
5-20 Government Code, as provided by Section 22.004, Education Code, may
5-21 elect to be treated as a single unit. A school district shall
5-22 elect whether to be considered as a member of a risk pool under
5-23 this section by notifying the trustee not later than September 1,
5-24 2001.
5-25 (d) A risk pool in existence on January 1, 2001, that, as of
5-26 that date, provided group health coverage to 500 or fewer school
6-1 district employees may elect to participate in the program.
6-2 (e) A school district with 500 or fewer employees that is a
6-3 member of a risk pool described by Subsection (c) of this section
6-4 that provides group health coverage to more than 500 school
6-5 district employees must elect, not later than September 1, 2001,
6-6 whether to be treated as a school district with 500 or fewer
6-7 employees or as part of a unit with more than 500 employees. The
6-8 school district must notify the trustee of the election, in the
6-9 manner prescribed by the trustee, not later than September 1, 2001.
6-10 (f) For purposes of this section, participation in the
6-11 program by school districts covered by a risk pool is limited to
6-12 school districts covered by the risk pool as of January 1, 2001.
6-13 (g) Notwithstanding Subsection (a) of this section, a school
6-14 district otherwise subject to Subsection (a) of this section that,
6-15 on January 1, 2001, was individually self-funded for the provision
6-16 of health coverage to its employees may elect to not participate in
6-17 the program.
6-18 (h) Notwithstanding Subsection (a) of this section, a school
6-19 district otherwise subject to Subsection (a) of this section that
6-20 is a party to a contract for the provision of insurance coverage to
6-21 the employees of the district that is in effect on September 1,
6-22 2002, is not required to participate in the program until the
6-23 expiration of the contract period. A school district subject to
6-24 this subsection shall notify the trustee in the manner prescribed
6-25 by the trustee. This subsection expires March 1, 2004.
6-26 (i) An educational district described by Section 2(6)(B) of
7-1 this article that, on January 1, 2001, has 500 or fewer employees
7-2 may elect not to participate in the program.
7-3 Explanation: This change is necessary to clarify the
7-4 participation in the group coverage program of educational
7-5 districts that are not school districts but whose employees are
7-6 members of the Teacher Retirement System of Texas, to add a January
7-7 1, 2001, date for determination of the size of a school district or
7-8 risk pool, and to authorize larger districts to participate before
7-9 September 1, 2005, if the Teacher Retirement System of Texas
7-10 authorizes that early participation.
7-11 (4) Senate Rule 12.03(4) is suspended to permit the
7-12 committee to add text changing Sections 7(c) and (e), Article
7-13 3.50-7, Insurance Code, as added by SECTION 1.01, House Bill
7-14 No. 3343, to read as follows:
7-15 (c) A participating employee may select coverage in any
7-16 coverage plan offered by the trustee. The employee is not required
7-17 to continue participation in the coverage plan initially selected
7-18 and may select a higher or lower tier coverage plan than the plan
7-19 initially selected by the employee in the manner provided by
7-20 trustee rule. If the combined contributions received from the
7-21 state and the employing participating entity under Section 9 of
7-22 this article exceed the cost of a coverage plan selected by the
7-23 employee, the employee may use the excess amount of contributions
7-24 to obtain coverage under a higher tier coverage plan, or to pay all
7-25 or part of the cost of coverage for the employee's dependents. A
7-26 married couple, both of whom are eligible for coverage under the
8-1 program, may pool the amount of contributions to which the couple
8-2 are entitled under the program to obtain coverage for themselves
8-3 and dependent coverage.
8-4 (e) Notwithstanding Subsection (d) of this section, a
8-5 participating entity may pay any portion of what otherwise would be
8-6 the employee share of premiums and other costs associated with the
8-7 coverage selected by the employee.
8-8 Explanation: These changes are necessary to specify that an
8-9 employee participating in the group coverage program may elect
8-10 higher or lower coverage plans, clarifies the use of contributions
8-11 for dependent coverage, and expands the authority to pay for part
8-12 of an employee's premiums to all participating entities.
8-13 (5) Senate Rules 12.03(1) and (4) are suspended to permit
8-14 the committee to add text changing Section 9, Article 3.50-7,
8-15 Insurance Code, as added by SECTION 1.01, House Bill No. 3343, to
8-16 read as follows:
8-17 Sec. 9. PAYMENT OF CONTRIBUTIONS FOR PROGRAM. (a) The
8-18 state shall assist employees of participating school districts and
8-19 charter schools in the purchase of group health coverage under this
8-20 article by providing for each covered employee the amount of $900
8-21 each state fiscal year or a greater amount as provided by the
8-22 General Appropriations Act. The state contribution shall be
8-23 distributed through the school finance formulas under Chapters 41
8-24 and 42, Education Code, and used by school districts and charter
8-25 schools as provided by Sections 42.2514 and 42.260, Education Code.
8-26 (b) The state shall assist employees of participating
9-1 regional education service centers and educational districts
9-2 described by Section 2(6)(B) of this article in the purchase of
9-3 group health coverage under this article by providing to the
9-4 employing service center for each covered employee the amount of
9-5 $900 each state fiscal year or a greater amount as provided by the
9-6 General Appropriations Act.
9-7 (c) A participating entity shall make contributions for the
9-8 program as provided by Article 3.50-9 of this code.
9-9 (d) An employee covered by the program shall pay that
9-10 portion of the cost of coverage selected by the employee that
9-11 exceeds the amount of the state contribution under Subsection (a)
9-12 or (b) of this section and the participating entity contribution
9-13 under Subsection (c) of this section. The employee may pay the
9-14 employee's contribution under this subsection from the amount
9-15 distributed to the employee under Article 3.50-8 of this code.
9-16 (e) Notwithstanding Subsection (d) of this section, a
9-17 participating entity may pay any portion of what otherwise would be
9-18 the employee share of premiums and other costs associated with the
9-19 coverage selected by the employee.
9-20 Explanation: This change is necessary to clarify how the
9-21 state contributions for the group coverage program will be made,
9-22 and to specify that educational districts that are not school
9-23 districts but whose employees are members of the Teacher Retirement
9-24 System of Texas are eligible for state contributions.
9-25 (6) Senate Rule 12.03, Sections 9(a)(4), is suspended to
9-26 permit the committee to add text changing Section 1, Article
10-1 3.50-8, Insurance Code, as added by SECTION 1.02, House Bill
10-2 No. 3343, by adding a new definition of "cafeteria plan" to read as
10-3 follows:
10-4 (1) "Cafeteria plan" means a plan as defined and authorized
10-5 by Section 125, Internal Revenue Code of 1986, and its subsequent
10-6 amendments.
10-7 Explanation: This change is necessary to clarify that the
10-8 reference in the bill to the use of cafeteria plans means a plan as
10-9 prescribed by federal law.
10-10 (7) Senate Rule 12.03(4) is suspended to permit the
10-11 committee to add text changing Section 2, Article 3.50-8, Insurance
10-12 Code, as added by SECTION 1.02, House Bill No. 3343, to read as
10-13 follows:
10-14 Sec. 2. ACTIVE EMPLOYEE HEALTH COVERAGE OR COMPENSATION
10-15 SUPPLEMENTATION. (a) Each year, the trustee shall deliver to each
10-16 school district, including a school district that is ineligible for
10-17 state aid under Chapter 42, Education Code, each other educational
10-18 district that is a member of the Teacher Retirement System of
10-19 Texas, each eligible charter school, and each regional education
10-20 service center state funds in an amount, as determined by the
10-21 trustee, equal to the product of the number of employees employed
10-22 by the district, school, or service center multiplied by $1,000 or
10-23 a greater amount as provided by the General Appropriations Act for
10-24 purposes of this article.
10-25 (b) All funds received by a school district, other
10-26 educational district, eligible charter school, or regional
11-1 education service center under this article are held in trust for
11-2 the benefit of the employee on whose behalf the district, school,
11-3 or service center received the funds.
11-4 (c) The trustee shall distribute funds under this article in
11-5 equal monthly installments. The trustee is entitled to recover
11-6 from a school district, other educational district, eligible
11-7 charter school, or regional education service center any amount
11-8 distributed under this article to which the district, school, or
11-9 service center was not entitled.
11-10 (d) A determination by the trustee under this section is
11-11 final and may not be appealed.
11-12 Explanation: This change is necessary to clarify how the
11-13 state contributions for the group coverage program will be paid
11-14 and allocated, and to specify that educational districts that are
11-15 not school districts but whose employees are members of the Teacher
11-16 Retirement System of Texas are eligible for state contributions.
11-17 (8) Senate Rule 12.03(4) is suspended to permit the
11-18 committee to add text changing Section 3, Article 3.50-8, Insurance
11-19 Code, as added by SECTION 1.02, House Bill No. 3343, to read as
11-20 follows:
11-21 Sec. 3. EMPLOYEE ELECTION. (a) If an employee is covered
11-22 by a cafeteria plan of a school district, other educational
11-23 district, eligible charter school, or regional education service
11-24 center, the state contribution under this article shall be
11-25 deposited in the cafeteria plan, and the employee may elect among
11-26 the options provided by the cafeteria plan. A cafeteria plan
12-1 receiving state contributions under this article may include a
12-2 medical savings account option and must include, at a minimum, the
12-3 following options:
12-4 (1) a health care reimbursement account;
12-5 (2) a benefit or coverage other than that provided
12-6 under Article 3.50-7 of this code, or any employee coverage or
12-7 dependent coverage available under Article 3.50-7 of this code but
12-8 not otherwise fully funded by the state or the employer
12-9 contributions, any of which must be a "qualified benefit" under
12-10 Section 125, Internal Revenue Code of 1986, and its subsequent
12-11 amendments;
12-12 (3) an option for the employee to receive the state
12-13 contribution as supplemental compensation; or
12-14 (4) an option to divide the state contribution among
12-15 two or more of the other options provided under this subsection.
12-16 (b) If an employee is not covered by a cafeteria plan of a
12-17 school district, other educational district, eligible charter
12-18 school, or regional education service center, the state
12-19 contribution under this article shall be paid to the employee as
12-20 supplemental compensation.
12-21 (c) Supplemental compensation under this section must be in
12-22 addition to the rate of compensation that:
12-23 (1) the school district, other educational district,
12-24 eligible charter school, or regional education service center paid
12-25 the employee in the preceding school year; or
12-26 (2) the district, school, or service center would have
13-1 paid the employee in the preceding school year if the employee had
13-2 been employed by the district, school, or service center in the
13-3 same capacity in the preceding school year.
13-4 (d) For each state fiscal year, an election under this
13-5 section must be made before the later of:
13-6 (1) August 1 of the preceding state fiscal year; or
13-7 (2) the 31st day after the date the employee is hired.
13-8 (e) The trustee shall prescribe and distribute to each
13-9 school district, other educational district, eligible charter
13-10 school, and regional education service center:
13-11 (1) a model explanation written in English and Spanish
13-12 of the options employees may elect under this section and the
13-13 effect of electing each option; and
13-14 (2) an election form to be completed by employees.
13-15 (f) Each state fiscal year, a school district, other
13-16 educational district, eligible charter school, or regional
13-17 education service center shall prepare and distribute to each
13-18 employee a written explanation in English and Spanish, as
13-19 appropriate, of the options the employee may elect under this
13-20 section. The explanation must be based on the model explanation
13-21 prepared by the trustee under Subsection (e) of this section and
13-22 must reflect all available health coverage options available to the
13-23 employee. The explanation must be distributed to an employee
13-24 before the later of:
13-25 (1) July 1 of the preceding state fiscal year; or
13-26 (2) the fifth day after the date the employee is
14-1 hired.
14-2 (g) The written explanation under Subsection (f) of this
14-3 section must be accompanied by a copy of the election form
14-4 prescribed under Subsection (e)(2) of this section.
14-5 (h) Any unencumbered funds that are returned to the school
14-6 district from accounts established under Subsection (a) of this
14-7 section may be used only to provide employee compensation,
14-8 benefits, or both.
14-9 Explanation: This change is necessary to clarify the options
14-10 available to employees and to clarify the requirements for employee
14-11 elections.
14-12 (9) Senate Rule 12.03(4) is suspended to permit the
14-13 committee to add text changing Section 4, Article 3.50-8, Insurance
14-14 Code, as added by SECTION 1.02, House Bill No. 3343, by adding a
14-15 new Subsection (b) to read as follows:
14-16 (b) The trustee may enter into interagency contracts with
14-17 any agency of this state for the purpose of assistance in
14-18 implementing this article.
14-19 Explanation: This change is necessary to clarify that the
14-20 contract authority of the Teacher Retirement System of Texas
14-21 applies to contracts under Article 3.50-8, Insurance Code, as added
14-22 by the bill.
14-23 (9) Senate Rule 12.03(4) is suspended to permit the
14-24 committee to add text changing Sections 1 and 2, Article 3.50-10,
14-25 Insurance Code, as added by SECTION 1.04, House Bill No. 3343
14-26 (corresponding to Article 3.50-9, Insurance Code, in conference
15-1 committee report), to read as follows:
15-2 Sec. 1. DEFINITIONS. In this article:
15-3 (1) "Participating employee" means an employee of a
15-4 school district, other educational district whose employees are
15-5 members of the Teacher Retirement System of Texas, participating
15-6 charter school, or regional education service center who
15-7 participates in a group health coverage plan provided by or through
15-8 the district, school, or service center.
15-9 (2) "Participating charter school" means an
15-10 open-enrollment charter school established under Subchapter D,
15-11 Chapter 12, Education Code, that participates in the uniform group
15-12 coverage program established under Article 3.50-7 of this code.
15-13 (3) "Regional education service center" means a
15-14 regional education service center established under Chapter 8,
15-15 Education Code.
15-16 Sec. 2. MAINTENANCE OF EFFORT FOR 2000-2001 SCHOOL YEAR.
15-17 (a) Subject to Section 3 of this article, and except as provided
15-18 by Section 5 of this article, a school district, other educational
15-19 district whose employees are members of the Teacher Retirement
15-20 System of Texas, participating charter school, or regional
15-21 education service center that, for the 2000-2001 school year, paid
15-22 amounts to share with employees the cost of coverage under a group
15-23 health coverage plan shall, for each fiscal year, use to provide
15-24 health coverage an amount for each participating employee at least
15-25 equal to the amount computed as provided by this section.
15-26 (b) The school district, other educational district,
16-1 participating charter school, or regional education service center
16-2 shall divide the amount that the district, school, or service
16-3 center paid during the 2000-2001 school year for the prior group
16-4 health coverage plan by the total number of full-time employees of
16-5 the district, school, or service center in the 2000-2001 school
16-6 year and multiply the result by the number of full-time employees
16-7 of the district, school, or service center in the fiscal year for
16-8 which the computation is made. If, for the 2000-2001 school year,
16-9 a school district, other educational district, participating
16-10 charter school, or regional education service center provided group
16-11 health coverage to its employees through a self-funded insurance
16-12 plan, the amount the district, school, or service center paid
16-13 during that school year for the plan includes only the amount of
16-14 regular contributions made by the district, school, or service
16-15 center to the plan.
16-16 (c) Amounts used as required by this section shall be
16-17 deposited, as applicable, in:
16-18 (1) the Texas school employees uniform group coverage
16-19 trust fund established under Section 8, Article 3.50-7, of this
16-20 code; or
16-21 (2) another fund established for the payment of
16-22 employee health coverage that meets requirements for those funds
16-23 prescribed by the Texas Education Agency.
16-24 Explanation: This change is necessary to clarify that
16-25 certain educational districts whose employees are members of the
16-26 Teacher Retirement System of Texas, open-enrollment charter schools
17-1 that participate in the statewide group health coverage program,
17-2 and regional education service centers are required to maintain
17-3 current spending efforts for employee health coverage.
17-4 (10) Senate Rule 12.03(4) is suspended to permit the
17-5 committee to add text changing Section 3, Article 3.50-10,
17-6 Insurance Code, as added by SECTION 1.04, House Bill No. 3343
17-7 (corresponding to Article 3.50-9, Insurance Code, in conference
17-8 committee report), to read as follows:
17-9 Sec. 3. MINIMUM EFFORT. (a) A school district, other
17-10 educational district, participating charter school, or regional
17-11 education service center shall, for each fiscal year, use to
17-12 provide health coverage an amount equal to the number of
17-13 participating employees of the district, school, or service center
17-14 multiplied by $1,800. Amounts used as required by this section
17-15 shall be deposited in a fund described by Section 2(c) of this
17-16 article.
17-17 (b) To comply with this section, a school district or
17-18 participating charter school may use state funds received under
17-19 Chapter 42, Education Code, other than funds that may be used under
17-20 that chapter only for a specific purpose, except that amounts a
17-21 district or school is required to use to pay contributions under a
17-22 group health coverage plan for district or school employees under
17-23 Section 42.2514 or 42.260, Education Code, other than amounts
17-24 described by Section 42.260(c)(2)(B), are not used in computing
17-25 whether the district or school complies with this section.
17-26 Explanation: This change is necessary to clarify that
18-1 certain educational districts whose employees are members of the
18-2 Teacher Retirement System of Texas, open-enrollment charter schools
18-3 that participate in the statewide group health coverage program,
18-4 and regional education service centers are required to meet the
18-5 same minimum spending effort applicable to school districts, and to
18-6 clarify that certain state funds school districts and participating
18-7 charter schools are required to use in meeting the minimum spending
18-8 effort count against the minimum effort.
18-9 (11) Senate Rule 12.03(4) is suspended to permit the
18-10 committee to add text changing Sections 4(a)-(a-7), Article
18-11 3.50-10, Insurance Code (corresponding to Article 3.50-9, Insurance
18-12 Code, in conference committee report), as added by SECTION 1.04,
18-13 House Bill No. 3343, to read as follows:
18-14 (a) For any state fiscal year beginning with the fiscal year
18-15 ending August 31, 2003, except as provided by Subsection (b) of
18-16 this section, a school district that imposes maintenance and
18-17 operations taxes at the maximum rate permitted under Section
18-18 45.003(d), Education Code, is entitled to state funds in an amount
18-19 equal to the difference, if any, between:
18-20 (1) an amount equal to the number of participating
18-21 employees of the district 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 is required to use
18-25 to provide health coverage under Section 2 of this article for that
18-26 fiscal year; and
19-1 (B) the difference, if any, between:
19-2 (i) the amount determined under Section
19-3 42.2514(b)(2), Education Code; and
19-4 (ii) the amount determined under Section
19-5 42.2514(b)(1), Education Code, if that amount is less than the
19-6 amount specified by Subparagraph (i) of this paragraph.
19-7 (a-1) For the state fiscal year beginning September 1, 2002,
19-8 a school district or participating entity is entitled to state
19-9 funds in an amount equal to the difference, if any, between:
19-10 (1) an amount equal to the number of participating
19-11 employees of the district or entity multiplied by $1,800; and
19-12 (2) if the following amount is less than the amount
19-13 specified by Subdivision (1) of this subsection, the sum of:
19-14 (A) the amount the district or entity is
19-15 required to use to provide health coverage under Section 2 of this
19-16 article for that fiscal year; and
19-17 (B) the difference, if any, between:
19-18 (i) the amount determined under Section
19-19 42.2514(b)(2), Education Code; and
19-20 (ii) the amount determined under Section
19-21 42.2514(b)(1), Education Code, if that amount is less than the
19-22 amount specified by Subparagraph (i) of this paragraph.
19-23 (a-2) For the state fiscal year beginning September 1, 2003,
19-24 a school district or participating entity is entitled to state
19-25 funds in an amount equal to the difference, if any, between:
19-26 (1) an amount equal to the number of participating
20-1 employees of the district or entity multiplied by $1,500; and
20-2 (2) if the following amount is less than the amount
20-3 specified by Subdivision (1) of this subsection, the sum of:
20-4 (A) the amount the district or entity is
20-5 required to use to provide health coverage under Section 2 of this
20-6 article for that fiscal year; and
20-7 (B) the difference, if any, between:
20-8 (i) the amount determined under Section
20-9 42.2514(b)(2), Education Code; and
20-10 (ii) the amount determined under Section
20-11 42.2514(b)(1), Education Code, if that amount is less than the
20-12 amount specified by Subparagraph (i) of this paragraph.
20-13 (a-3) For the state fiscal year beginning September 1, 2004,
20-14 a school district or participating entity is entitled to state
20-15 funds in an amount equal to the difference, if any, between:
20-16 (1) an amount equal to the number of participating
20-17 employees of the district or entity multiplied by $1,200; and
20-18 (2) if the following amount is less than the amount
20-19 specified by Subdivision (1) of this subsection, the sum of:
20-20 (A) the amount the district or entity is
20-21 required to use to provide health coverage under Section 2 of this
20-22 article for that fiscal year; and
20-23 (B) the difference, if any, between:
20-24 (i) the amount determined under Section
20-25 42.2514(b)(2), Education Code; and
20-26 (ii) the amount determined under Section
21-1 42.2514(b)(1), Education Code, if that amount is less than the
21-2 amount specified by Subparagraph (i) of this paragraph.
21-3 (a-4) For the state fiscal year beginning September 1, 2005,
21-4 a school district or participating entity is entitled to state
21-5 funds in an amount equal to the difference, if any, between:
21-6 (1) an amount equal to the number of participating
21-7 employees of the district or entity multiplied by $900; and
21-8 (2) if the following amount is less than the amount
21-9 specified by Subdivision (1) of this subsection, the sum of:
21-10 (A) the amount the district or entity is
21-11 required to use to provide health coverage under Section 2 of this
21-12 article for that fiscal year; and
21-13 (B) the difference, if any, between:
21-14 (i) the amount determined under Section
21-15 42.2514(b)(2), Education Code; and
21-16 (ii) the amount determined under Section
21-17 42.2514(b)(1), Education Code, if that amount is less than the
21-18 amount specified by Subparagraph (i) of this paragraph.
21-19 (a-5) For the state fiscal year beginning September 1, 2006,
21-20 a school district or participating entity is entitled to state
21-21 funds in an amount equal to the difference, if any, between:
21-22 (1) an amount equal to the number of participating
21-23 employees of the district or entity multiplied by $600; and
21-24 (2) if the following amount is less than the amount
21-25 specified by Subdivision (1) of this subsection, the sum of:
21-26 (A) the amount the district or entity is
22-1 required to use to provide health coverage under Section 2 of this
22-2 article for that fiscal year; and
22-3 (B) the difference, if any, between:
22-4 (i) the amount determined under Section
22-5 42.2514(b)(2), Education Code; and
22-6 (ii) the amount determined under Section
22-7 42.2514(b)(1), Education Code, if that amount is less than the
22-8 amount specified by Subparagraph (i) of this paragraph.
22-9 (a-6) For the state fiscal year beginning September 1, 2007,
22-10 a school district or participating entity is entitled to state
22-11 funds in an amount equal to the difference, if any, between:
22-12 (1) an amount equal to the number of participating
22-13 employees of the district or entity multiplied by $300; and
22-14 (2) if the following amount is less than the amount
22-15 specified by Subdivision (1) of this subsection, the sum of:
22-16 (A) the amount the district or entity is
22-17 required to use to provide health coverage under Section 2 of this
22-18 article for that fiscal year; and
22-19 (B) the difference, if any, between:
22-20 (i) the amount determined under Section
22-21 42.2514(b)(2), Education Code; and
22-22 (ii) the amount determined under Section
22-23 42.2514(b)(1), Education Code, if that amount is less than the
22-24 amount specified by Subparagraph (i) of this paragraph.
22-25 (a-7) A school district that receives state funds under
22-26 Subsection (a) of this section for a state fiscal year is not
23-1 entitled to state funds under Subsection (a-1), (a-2), (a-3),
23-2 (a-4), (a-5), or (a-6) of this section.
23-3 Explanation: This change is necessary to require school
23-4 districts and participating charter schools for whom 75 percent of
23-5 the increased funding through the foundation school program funding
23-6 elements exceeds the level of $900 per employee per year to use
23-7 that excess towards meeting the minimum spending effort.
23-8 (12) Senate Rule 12.03(4) is suspended to permit the
23-9 committee to add text changing Section 4(c), Article 3.50-10,
23-10 Insurance Code (corresponding to Article 3.50-9, Insurance Code, in
23-11 conference committee report), as added by SECTION 1.04, House Bill
23-12 No. 3343, to read as follows:
23-13 (c) The Teacher Retirement System of Texas shall distribute
23-14 state funds to school districts and participating entities under
23-15 this section in equal monthly installments. State funds received
23-16 under this section shall be deposited in a fund described by
23-17 Section 2(c) of this article. The Texas Education Agency shall
23-18 provide to the retirement system information necessary for the
23-19 retirement system to determine a school district's or participating
23-20 entity's eligibility for state funds under this section. The
23-21 trustee may enter into interagency contracts with any agency of
23-22 this state for the purpose of assistance in distributing funds
23-23 under this article.
23-24 Explanation: This change is necessary to permit the Teacher
23-25 Retirement System of Texas to enter into interagency contracts
23-26 relating to the distribution of state assistance towards meeting
24-1 the minimum spending effort.
24-2 (13) Senate Rule 12.03(4) is suspended to permit the
24-3 committee to add text changing Section 41.002(a), Education Code,
24-4 as amended by SECTIONS 2.02 and 2.03, senate committee report,
24-5 House Bill No. 3343, to read as follows:
24-6 SECTION 2.02. Effective September 1, 2001, Section
24-7 41.002(a), Education Code, is amended to read as follows:
24-8 (a) A school district may not have a wealth per student that
24-9 exceeds $300,000 [$295,000].
24-10 SECTION 2.03. Effective September 1, 2002, Section
24-11 41.002(a), Education Code, is amended to read as follows:
24-12 (a) A school district may not have a wealth per student that
24-13 exceeds $305,000 [$295,000].
24-14 Explanation: This change is necessary to increase the
24-15 equalized wealth level under the school finance system.
24-16 (14) Senate Rule 12.03(4) is suspended to permit the
24-17 committee to add text changing Section 42.2514, Education Code, as
24-18 added by SECTION 2.06, senate committee report, House Bill
24-19 No. 3343, to read as follows:
24-20 SECTION 2.05. Effective September 1, 2002, Subchapter E,
24-21 Chapter 42, Education Code, is amended by adding Section 42.2514 to
24-22 read as follows:
24-23 Sec. 42.2514. ADDITIONAL STATE AID FOR SCHOOL EMPLOYEE
24-24 BENEFITS. (a) In this section, "participating charter school"
24-25 means an open-enrollment charter school that participates in the
24-26 uniform group coverage program established under Article 3.50-7,
25-1 Insurance Code.
25-2 (b) For each school year, a school district, including a
25-3 school district that is otherwise ineligible for state aid under
25-4 this chapter, or a participating charter school is entitled to
25-5 state aid in an amount, as determined by the commissioner, equal to
25-6 the difference, if any, between:
25-7 (1) the amount determined by multiplying the amount of
25-8 $900 or the amount specified in the General Appropriations Act for
25-9 that year for purposes of the state contribution under Section 9,
25-10 Article 3.50-7, Insurance Code, by the number of district or school
25-11 employees who participate in a group health coverage plan provided
25-12 by or through the district or school; and
25-13 (2) an amount equal to 75 percent of the amount of:
25-14 (A) additional funds to which the district or
25-15 school is entitled due to the increase made by H.B. No. 3343, Acts
25-16 of the 77th Legislature, Regular Session, 2001, to:
25-17 (i) the equalized wealth level under
25-18 Section 41.002; and
25-19 (ii) the guaranteed level of state and
25-20 local funds per weighted student per cent of tax effort under
25-21 Section 42.302; or
25-22 (B) additional state aid to which the district
25-23 is entitled under Section 42.2513.
25-24 (c) A school district or participating charter school may
25-25 use state aid received under this section only to pay contributions
25-26 under a group health coverage plan for district or school
26-1 employees.
26-2 (d) A determination by the commissioner under this section
26-3 is final and may not be appealed.
26-4 (e) The commissioner may adopt rules to implement this
26-5 section.
26-6 Explanation: This change is necessary to permit
26-7 open-enrollment charter schools that participate in the uniform
26-8 group coverage plan to receive additional state funding if the
26-9 increased funding the school receives through the foundation school
26-10 program funding elements does not reach the level of $900 per
26-11 employee per year.
26-12 (15) Senate Rule 12.03(4) is suspended to permit the
26-13 committee to add text changing Section 42.260, Education Code, as
26-14 added by SECTION 2.10, senate committee report, House Bill
26-15 No. 3343, to read as follows:
26-16 SECTION 2.08. Effective September 1, 2002, Subchapter E,
26-17 Chapter 42, Education Code, is amended by adding Section 42.260 to
26-18 read as follows:
26-19 Sec. 42.260. USE OF CERTAIN FUNDS. (a) In this section,
26-20 "participating charter school" has the meaning assigned by Section
26-21 42.2514.
26-22 (b) For each year, the commissioner shall certify to each
26-23 school district or participating charter school the amount of:
26-24 (1) additional funds to which the district or school
26-25 is entitled due to the increase made by H.B. No. 3343, Acts of the
26-26 77th Legislature, Regular Session, 2001, to:
27-1 (A) the equalized wealth level under Section
27-2 41.002; or
27-3 (B) the guaranteed level of state and local
27-4 funds per weighted student per cent of tax effort under Section
27-5 42.302; or
27-6 (2) additional state aid to which the district or
27-7 school is entitled under Section 42.2513.
27-8 (c) Notwithstanding any other provision of this code, a
27-9 school district or participating charter school may use the
27-10 following amount of funds only to pay contributions under a group
27-11 health coverage plan for district or school employees:
27-12 (1) an amount equal to 75 percent of the amount
27-13 certified for the district or school under Subsection (b); or
27-14 (2) if the following amount is less than the amount
27-15 specified by Subdivision (1), the sum of:
27-16 (A) the amount determined by multiplying the
27-17 amount of $900 or the amount specified in the General
27-18 Appropriations Act for that year for purposes of the state
27-19 contribution under Section 9, Article 3.50-7, Insurance Code, by
27-20 the number of district or school employees who participate in a
27-21 group health coverage plan provided by or through the district or
27-22 school; and
27-23 (B) the difference between the amount necessary
27-24 for the district or school to comply with Section 3, Article
27-25 3.50-9, Insurance Code, for the school year and the amount the
27-26 district or school is required to use to provide health coverage
28-1 under Section 2 of that article for that year.
28-2 (d) A determination by the commissioner under this section
28-3 is final and may not be appealed.
28-4 (e) The commissioner may adopt rules to implement this
28-5 section.
28-6 Explanation: This change is necessary to require
28-7 open-enrollment charter schools that participate in the uniform
28-8 group coverage plan to use a portion of state funding received
28-9 through the increases in the foundation school program funding
28-10 elements to provide employee health coverage.
28-11 (16) Senate Rule 12.03(4) is suspended to permit the
28-12 committee to add text changing Section 42.302(a), Education Code,
28-13 as amended by SECTIONs 2.11 and 2.12, senate committee report,
28-14 House Bill No. 3343, to read as follows:
28-15 SECTION 2.09. Effective September 1, 2001, Section
28-16 42.302(a), Education Code, is amended to read as follows:
28-17 (a) Each school district is guaranteed a specified amount
28-18 per weighted student in state and local funds for each cent of tax
28-19 effort over that required for the district's local fund assignment
28-20 up to the maximum level specified in this subchapter. The amount
28-21 of state support, subject only to the maximum amount under Section
28-22 42.303, is determined by the formula:
28-23 GYA = (GL X WADA X DTR X 100) - LR
28-24 where:
28-25 "GYA" is the guaranteed yield amount of state funds to be
28-26 allocated to the district;
29-1 "GL" is the dollar amount guaranteed level of state and local
29-2 funds per weighted student per cent of tax effort, which is $25.81
29-3 [$24.99] or a greater amount for any year provided by
29-4 appropriation;
29-5 "WADA" is the number of students in weighted average daily
29-6 attendance, which is calculated by dividing the sum of the school
29-7 district's allotments under Subchapters B and C, less any allotment
29-8 to the district for transportation, any allotment under Section
29-9 42.158, and 50 percent of the adjustment under Section 42.102, by
29-10 the basic allotment for the applicable year;
29-11 "DTR" is the district enrichment tax rate of the school
29-12 district, which is determined by subtracting the amounts specified
29-13 by Subsection (b) from the total amount of maintenance and
29-14 operations taxes collected by the school district for the
29-15 applicable school year and dividing the difference by the quotient
29-16 of the district's taxable value of property as determined under
29-17 Subchapter M, Chapter 403, Government Code, or, if applicable,
29-18 under Section 42.2521, divided by 100; and
29-19 "LR" is the local revenue, which is determined by multiplying
29-20 "DTR" by the quotient of the district's taxable value of property
29-21 as determined under Subchapter M, Chapter 403, Government Code, or,
29-22 if applicable, under Section 42.2521, divided by 100.
29-23 SECTION 2.10. Effective September 1, 2002, Section
29-24 42.302(a), Education Code, is amended to read as follows:
29-25 (a) Each school district is guaranteed a specified amount
29-26 per weighted student in state and local funds for each cent of tax
30-1 effort over that required for the district's local fund assignment
30-2 up to the maximum level specified in this subchapter. The amount
30-3 of state support, subject only to the maximum amount under Section
30-4 42.303, is determined by the formula:
30-5 GYA = (GL X WADA X DTR X 100) - LR
30-6 where:
30-7 "GYA" is the guaranteed yield amount of state funds to be
30-8 allocated to the district;
30-9 "GL" is the dollar amount guaranteed level of state and local
30-10 funds per weighted student per cent of tax effort, which is $27.14
30-11 [$24.99] or a greater amount for any year provided by
30-12 appropriation;
30-13 "WADA" is the number of students in weighted average daily
30-14 attendance, which is calculated by dividing the sum of the school
30-15 district's allotments under Subchapters B and C, less any allotment
30-16 to the district for transportation, any allotment under Section
30-17 42.158, and 50 percent of the adjustment under Section 42.102, by
30-18 the basic allotment for the applicable year;
30-19 "DTR" is the district enrichment tax rate of the school
30-20 district, which is determined by subtracting the amounts specified
30-21 by Subsection (b) from the total amount of maintenance and
30-22 operations taxes collected by the school district for the
30-23 applicable school year and dividing the difference by the quotient
30-24 of the district's taxable value of property as determined under
30-25 Subchapter M, Chapter 403, Government Code, or, if applicable,
30-26 under Section 42.2521, divided by 100; and
31-1 "LR" is the local revenue, which is determined by multiplying
31-2 "DTR" by the quotient of the district's taxable value of property
31-3 as determined under Subchapter M, Chapter 403, Government Code, or,
31-4 if applicable, under Section 42.2521, divided by 100.
31-5 Explanation: This change is necessary to increase the
31-6 guaranteed level of state and local funding per weighted student
31-7 per penny of tax effort.
31-8 (17) Senate Rule 12.03(4) is suspended to permit the
31-9 committee to add text adding Subsection (l) to Section 26.08, Tax
31-10 Code, as amended by SECTION 1.06, House Bill No. 3343, to read as
31-11 follows:
31-12 (l) For purposes of Subsection (k), the amount of state
31-13 funds that would have been available to a school district in the
31-14 preceding year is computed using the maximum tax rate for the
31-15 current year under Section 42.253(e), Education Code.
31-16 Explanation: This change is necessary to clarify that school
31-17 district rollback tax rates that are adjusted for tax increases in
31-18 connection with the minimum spending effort are computed in the
31-19 same manner as other school district rollback tax rates.
31-20 (18) Senate Rule 12.03(4) is suspended to permit the
31-21 committee to add text changing Section 62.1015, Health and Safety
31-22 Code, as added by SECTION 1.07, House Bill No. 3343, to read as
31-23 follows:
31-24 SECTION 1.04. Subchapter C, Chapter 62, Health and Safety
31-25 Code, is amended by adding Section 62.1015 to read as follows:
31-26 Sec. 62.1015. ELIGIBILITY OF CERTAIN CHILDREN; DISALLOWANCE
32-1 OF MATCHING FUNDS. (a) In this section, "charter school,"
32-2 "employee," and "regional education service center" have the
32-3 meanings assigned by Section 2, Article 3.50-7, Insurance Code.
32-4 (b) A child of an employee of a charter school, school
32-5 district, other educational district whose employees are members of
32-6 the Teacher Retirement System of Texas, or regional education
32-7 service center may be enrolled in health benefits coverage under
32-8 the child health plan. A child enrolled in the child health plan
32-9 under this section participates in the same manner as any other
32-10 child enrolled in the child health plan.
32-11 (c) The cost of health benefits coverage for children
32-12 enrolled in the child health plan under this section shall be paid
32-13 as provided in the General Appropriations Act. Expenditures made
32-14 to provide health benefits coverage under this section may not be
32-15 included for the purpose of determining the state children's health
32-16 insurance expenditures, as that term is defined by 42 U.S.C.
32-17 Section 1397ee(d)(2)(B), as amended, unless the Health and Human
32-18 Services Commission, after consultation with the appropriate
32-19 federal agencies, determines that the expenditures may be included
32-20 without adversely affecting federal matching funding for the child
32-21 health plan provided under this chapter.
32-22 Explanation: This change is necessary to provide for
32-23 coverage under the child health program for children of employees
32-24 of all entities eligible to participate in the new group coverage
32-25 plan and to clarify the Health and Human Services Commission's
32-26 authority to determine whether resulting expenditures affect
33-1 federal matching funds for the child health program.
33-2 (19) Senate Rule 12.03(4) is suspended to permit the
33-3 committee to add text changing Section 3, Article 3.51, Insurance
33-4 Code, as amended by SECTION 3.16, House Bill No. 3343, by adding a
33-5 new Subsection (b) to read as follows:
33-6 (b) This section does not preclude an entity described by
33-7 Subsection (a) of this section from procuring contracts under this
33-8 article for the provision of optional insurance coverages to the
33-9 employees of the entity.
33-10 Explanation: This change is necessary to clarify that a
33-11 participating entity retains the authority to purchase optional
33-12 coverages for its employees.
33-13 (20) Senate Rule 12.03(4) is suspended to permit the
33-14 committee to add text changing Article 26.036(c), Insurance Code,
33-15 as added by SECTION 3.17, House Bill No. 3343, to read as follows:
33-16 (c) An independent school district that is participating in
33-17 the uniform group coverage program established under Article 3.50-7
33-18 of this code may not participate in the small employer market under
33-19 this article for health insurance coverage and may not renew a
33-20 health insurance contract obtained in accordance with this article
33-21 after the date on which the program of coverages provided under
33-22 Article 3.50-7 of this code is implemented. This subsection does
33-23 not affect a contract for the provision of optional coverages not
33-24 included in a health benefits plan under this chapter.
33-25 Explanation: This change is necessary to clarify that an
33-26 independent school district retains the authority to purchase
34-1 optional coverages for its employees through the small employer
34-2 program under Chapter 26, Insurance Code.
34-3 (21) Senate Rule 12.03(4) is suspended to permit the
34-4 committee to add text changing Section 22.004, Education Code, as
34-5 amended by SECTION 3.18, House Bill No. 3343, to read as follows:
34-6 Sec. 22.004. GROUP HEALTH BENEFITS FOR SCHOOL EMPLOYEES.
34-7 (a) A [Each] district shall participate in the uniform group
34-8 coverage program established under Article 3.50-7, Insurance Code,
34-9 as provided by Section 5 of that article.
34-10 (b) A district that does not participate in the program
34-11 described by Subsection (a) shall make available to its employees
34-12 group health coverage provided by a risk pool established by one or
34-13 more school districts under Chapter 172, Local Government Code, or
34-14 under a policy of insurance or group contract issued by an insurer,
34-15 a company subject to Chapter 20, Insurance Code, or a health
34-16 maintenance organization under the Texas Health Maintenance
34-17 Organization Act (Chapter 20A, Vernon's Texas Insurance Code). The
34-18 coverage must meet the substantive coverage requirements of Article
34-19 3.51-6, Insurance Code, and any other law applicable to group
34-20 health insurance policies or contracts issued in this state. The
34-21 coverage must include major medical treatment but may exclude
34-22 experimental procedures. In this subsection, "major medical
34-23 treatment" means a medical, surgical, or diagnostic procedure for
34-24 illness or injury. The coverage may include managed care or
34-25 preventive care and must be comparable to the basic health coverage
34-26 provided under the Texas Employees Uniform Group Insurance Benefits
35-1 Act (Article 3.50-2, Vernon's Texas Insurance Code). The board of
35-2 trustees of the Teacher Retirement System of Texas shall adopt
35-3 rules to determine whether a school district's group health
35-4 coverage is comparable to the basic health coverage specified by
35-5 this subsection. The rules must provide for consideration of the
35-6 following factors concerning the district's coverage in determining
35-7 whether the district's coverage is comparable to the basic health
35-8 coverage specified by this subsection:
35-9 (1) the deductible amount for service provided inside
35-10 and outside of the network;
35-11 (2) the coinsurance percentages for service provided
35-12 inside and outside of the network;
35-13 (3) the maximum amount of coinsurance payments a
35-14 covered person is required to pay;
35-15 (4) the amount of the copayment for an office visit;
35-16 (5) the schedule of benefits and the scope of
35-17 coverage;
35-18 (6) the lifetime maximum benefit amount; and
35-19 (7) verification that the coverage is issued by a
35-20 provider licensed to do business in this state by the Texas
35-21 Department of Insurance or is provided by a risk pool authorized
35-22 under Chapter 172, Local Government Code, or that a district is
35-23 capable of covering the assumed liabilities in the case of coverage
35-24 provided through district self-insurance.
35-25 (c) [(b)] The cost of the coverage provided under the
35-26 program described by Subsection (a) shall be paid by the state,
36-1 the district, and the employees in the manner provided by Article
36-2 3.50-7, Insurance Code. The cost of coverage provided under a plan
36-3 adopted under Subsection (b) shall [may] be shared by the employees
36-4 and the district using the contributions by the state described by
36-5 Section 9, Article 3.50-7, Insurance Code, and Article 3.50-8,
36-6 Insurance Code.
36-7 (d) [(c)] Each district shall report the district's
36-8 compliance with this section [subsection] to the executive director
36-9 of the Teacher Retirement System of Texas not later than March 1 of
36-10 each even-numbered year in the manner required by the board of
36-11 trustees of the Teacher Retirement System of Texas. For a district
36-12 that does not participate in the program described by Subsection
36-13 (a), the [The] report must be based on the district group health
36-14 coverage plan in effect during the current plan year and must
36-15 include:
36-16 (1) appropriate documentation of:
36-17 (A) the district's contract for group health
36-18 coverage with a provider licensed to do business in this state by
36-19 the Texas Department of Insurance or a risk pool authorized under
36-20 Chapter 172, Local Government Code; or
36-21 (B) a resolution of the board of trustees of the
36-22 district authorizing a self-insurance plan for district employees
36-23 and of the district's review of district ability to cover the
36-24 liability assumed;
36-25 (2) the schedule of benefits;
36-26 (3) the premium rate sheet, including the amount paid
37-1 by the district and employee;
37-2 (4) the number of employees covered by the [each]
37-3 health coverage plan offered by the district; and
37-4 (5) any other information considered appropriate by
37-5 the executive director of the Teacher Retirement System of Texas.
37-6 (e) [(d)] Based on the criteria prescribed by Subsection (b)
37-7 [(a)], the executive director of the Teacher Retirement System of
37-8 Texas shall, for each district that does not participate in the
37-9 program described by Subsection (a), certify whether a district's
37-10 coverage is comparable to the basic health coverage provided under
37-11 the Texas Employees Uniform Group Insurance Benefits Act (Article
37-12 3.50-2, Vernon's Texas Insurance Code). If the executive director
37-13 of the Teacher Retirement System of Texas determines that the group
37-14 health coverage offered by a district is not comparable, the
37-15 executive director shall report that information to the district
37-16 and to the Legislative Budget Board. The executive director shall
37-17 submit a report to the legislature not later than September 1 of
37-18 each even-numbered year describing the status of each district's
37-19 group health coverage program based on the information contained in
37-20 the report required by Subsection (d) [(c)] and the certification
37-21 required by this subsection.
37-22 (f) [(e)] A school district that does not participate in the
37-23 program described by Subsection (a) may not contract with an
37-24 insurer, a company subject to Chapter 20, Insurance Code, or a
37-25 health maintenance organization to issue a policy or contract under
37-26 this section, or with any person to assist the school district in
38-1 obtaining or managing the policy or contract unless, before the
38-2 contract is entered into, the insurer, company, organization, or
38-3 person provides the district with an audited financial statement
38-4 showing the financial condition of the insurer, company,
38-5 organization, or person.
38-6 (g) [(f)] An insurer, a company subject to Chapter 20,
38-7 Insurance Code, or a health maintenance organization that issues a
38-8 policy or contract under this section and any person that assists
38-9 the school district in obtaining or managing the policy or contract
38-10 for compensation shall provide an annual audited financial
38-11 statement to the school district showing the financial condition of
38-12 the insurer, company, organization, or person.
38-13 (h) [(g)] An audited financial statement provided under this
38-14 section must be made in accordance with rules adopted by the
38-15 commissioner of insurance or state auditor, as applicable.
38-16 (i) Notwithstanding any other provision of this section, a
38-17 district participating in the uniform group coverage program
38-18 established under Article 3.50-7, Insurance Code, may not make
38-19 group health coverage available to its employees under this
38-20 section after the date on which the program of coverages provided
38-21 under Article 3.50-7, Insurance Code, is implemented.
38-22 (j) This section does not preclude a district that is
38-23 participating in the uniform group coverage program established
38-24 under Article 3.50-7, Insurance Code, from entering into contracts
38-25 to provide optional insurance coverages for the employees of the
38-26 district.
39-1 Explanation: This change is necessary to clarify that a
39-2 school district that does not participate in the group coverage
39-3 program retains the responsibility to offer coverage comparable to
39-4 the plan provided to state employees through the Employees
39-5 Retirement System of Texas, and also retains the authority to
39-6 purchase optional coverages for its employees.
39-7 (22) Senate Rule 12.03(4) is suspended to permit the
39-8 committee to add SECTION 4.01 to read as follows:
39-9 SECTION 4.01. On September 1, 2002, the comptroller shall
39-10 transfer the amount of $42 million from the retired school
39-11 employees group insurance fund created under Section 15, Article
39-12 3.50-4, Insurance Code, as amended by this Act, to the Texas school
39-13 employees uniform group coverage trust fund created under Section
39-14 8, Article 3.50-7, Insurance Code, as added by this Act. The
39-15 Teacher Retirement System of Texas shall use the amount transferred
39-16 under this section to establish and implement the uniform group
39-17 coverage program for school employees established under Article
39-18 3.50-7, Insurance Code, as added by this Act.
39-19 Explanation: This change is necessary to use a portion of
39-20 the current balance in the fund for the TRS-Care program to
39-21 implement the group coverage program for active school employees.
39-22 (23) Senate Rule 12.03(4) is suspended to permit the
39-23 committee to add SECTION 4.02 to read as follows:
39-24 SECTION 4.02. A portion of the amounts appropriated in
39-25 Article III, S.B. No. 1, Acts of the 77th Legislature, Regular
39-26 Session, 2001, to the Texas Education Agency is allocated as
40-1 provided by this section:
40-2 (1) for the fiscal year ending August 31, 2002, the
40-3 amount appropriated under Strategy A.2.1.: FSP-Equalized
40-4 Operations is reduced by the sum of $3 million and the amount
40-5 appropriated to the Teacher Retirement System of Texas is increased
40-6 by that amount for the establishment and implementation of the
40-7 uniform group coverage program for school employees established
40-8 under Article 3.50-7, Insurance Code, as added by this Act;
40-9 (2) for the fiscal year ending August 31, 2003, the
40-10 amount appropriated under Strategy A.2.1.: FSP-Equalized
40-11 Operations is reduced by the sum of $691,100,000 and the amount
40-12 appropriated to the Teacher Retirement System of Texas is increased
40-13 by that amount for payment of:
40-14 (A) school employee health coverage or
40-15 compensation supplementation under Article 3.50-8, Insurance Code,
40-16 as added by this Act; and
40-17 (B) state assistance in meeting the minimum
40-18 effort regarding school employee health coverage under Article
40-19 3.50-9, Insurance Code, as added by this Act;
40-20 (3) for the fiscal year ending August 31, 2003, the
40-21 amount appropriated under Strategy A.2.1.: FSP-Equalized
40-22 Operations is reduced by the sum of $1,361,000 and the amount
40-23 appropriated to the Teacher Retirement System of Texas is increased
40-24 by that amount for assistance to school districts in paying social
40-25 security taxes on amounts of supplemental compensation received by
40-26 district employees under Article 3.50-8, Insurance Code, as added
41-1 by this Act, as provided by Section 6, Article 3.50-9, Insurance
41-2 Code, as added by this Act; and
41-3 (4) for the fiscal year ending August 31, 2003, the
41-4 amount appropriated under Strategy A.2.1.: FSP-Equalized
41-5 Operations is reduced by the sum of $4.2 million and the amount
41-6 appropriated to the Health and Human Services Commission is
41-7 increased by that amount for payment of the costs of health
41-8 benefits coverage for children enrolled in the child health plan
41-9 under Section 62.1015, Health and Safety Code, as added by this
41-10 Act.
41-11 Explanation: This change is necessary to reallocate money
41-12 previously appropriated in Senate Bill No. 1 for the foundation
41-13 school program to the Teacher Retirement System of Texas for
41-14 establishing and implementing the group coverage program for active
41-15 school employees, for paying school employee health coverage or
41-16 compensation supplementation, state assistance in meeting the
41-17 minimum effort requirement, and assistance to certain school
41-18 districts for paying additional social security taxes, and to the
41-19 Health and Human Services Commission for paying costs of health
41-20 benefits coverage for children of school employees enrolled in the
41-21 child health plan.
41-22 (24) Senate Rule 12.03(4) is suspended to permit the
41-23 committee to add SECTION 4.03 to read as follows:
41-24 SECTION 4.03. The Legislative Budget Board shall increase
41-25 the number of full-time-equivalent positions authorized for the
41-26 Teacher Retirement System of Texas by S.B. No. 1, Acts of the 77th
42-1 Legislature, Regular Session, 2001, by 25 for each fiscal year of
42-2 the biennium ending August 31, 2003.
42-3 Explanation: This change is necessary to allow the Teacher
42-4 Retirement System of Texas to employ additional employees to
42-5 establish and implement the group coverage program for active
42-6 school employees.
42-7 (25) Senate Rule 12.03(4) is suspended to permit the
42-8 committee to add SECTION 4.04 to read as follows:
42-9 SECTION 4.04. The Legislative Budget Board shall increase
42-10 the number of full-time-equivalent positions authorized for the
42-11 Texas Education Agency by S.B. No. 1, Acts of the 77th Legislature,
42-12 Regular Session, 2001, by three for each fiscal year of the
42-13 biennium ending August 31, 2003.
42-14 Explanation: This change is necessary to allow the Texas
42-15 Education Agency to employ additional employees to implement the
42-16 group coverage program for active school employees and the system
42-17 for making associated payments to school districts.
42-18 (26) Senate Rule 12.03(4) is suspended to permit the
42-19 committee to add text to the transitional material in the bill, as
42-20 added by SECTIONs 5.02 through 5.06, House Bill No. 3343, to read
42-21 as follows:
42-22 SECTION 5.02. The Teacher Retirement System of Texas shall
42-23 transfer to the fund established under Section 8, Article 3.50-7,
42-24 Insurance Code, as added by this Act, any outstanding balance held
42-25 by the Teacher Retirement System of Texas as of December 31, 2001,
42-26 in the school employees group insurance fund established under
43-1 Section 15, Article 3.50-4, Insurance Code, that was designated for
43-2 use in programs relating to active school district employees.
43-3 SECTION 5.03. Not later than July 31, 2001, the Teacher
43-4 Retirement System of Texas shall provide written information to
43-5 school districts subject to Section 5(a-1), Article 3.50-7,
43-6 Insurance Code, as added by this Act, that provides a general
43-7 description of the uniform group coverage program established under
43-8 Article 3.50-7, Insurance Code, as added by this Act.
43-9 SECTION 5.04. A school district that becomes eligible to
43-10 participate in the uniform group coverage program established under
43-11 Article 3.50-7, Insurance Code, as added by this Act, as provided
43-12 by Section 5(b) of that article and that elects to participate in
43-13 the program beginning September 1, 2005, must notify the Teacher
43-14 Retirement System of Texas of the election not later than January
43-15 1, 2005.
43-16 SECTION 5.05. During the initial implementation of Article
43-17 3.50-7, Insurance Code, as added by this Act, and notwithstanding
43-18 any bidding requirements or other requirements set forth in Article
43-19 3.50-4, Insurance Code, or Article 3.50-7, Insurance Code, as added
43-20 by this Act, the Teacher Retirement System of Texas may amend any
43-21 agreement in effect on September 1, 2001, that it has entered into
43-22 under Article 3.50-4, Insurance Code, for benefits or
43-23 administration to extend application of that agreement to include
43-24 participants and programs under Article 3.50-7, Insurance Code, as
43-25 added by this Act, and may, as necessary, extend the periods of
43-26 contracts for benefits or administration in effect on September 1,
44-1 2001, under Article 3.50-4, Insurance Code.
44-2 SECTION 5.06. As soon as practicable after September 1,
44-3 2001, the Health and Human Services Commission shall consult with
44-4 the appropriate federal agencies and make the determination
44-5 required by Section 62.1015, Health and Safety Code, as added by
44-6 this Act.
44-7 Explanation: These changes are necessary to modify the
44-8 transitional material to accurately reflect the changes made to the
44-9 bill.
44-10 (27) Senate Rule 12.03(4) is suspended to permit the
44-11 committee to add text to the transitional material in the bill, as
44-12 added by SECTION 5.07, House Bill No. 3343, to read as follows:
44-13 SECTION 5.07. Notwithstanding any applicable state law
44-14 relating to competitive bidding requirements for school districts,
44-15 a school district that is required as of September 1, 2002, to
44-16 participate in the uniform group coverage program established under
44-17 Article 3.50-7, Insurance Code, as added by this Act, is exempt
44-18 from any requirement that the district request bids for health
44-19 insurance coverage before the renewal date of the district's
44-20 contract for health insurance coverage for the 2001-2002 school
44-21 year.
44-22 Explanation: This change is necessary to grant school
44-23 districts that will be required to participate in the uniform group
44-24 coverage plan additional flexibility in negotiating health
44-25 insurance coverage contracts for the 2001-2002 school year.
44-26 (28) Senate Rule 12.03(4) is suspended to permit the
45-1 committee to add text to the transitional material in the bill, as
45-2 added by SECTION 5.08, House Bill No. 3343, to read as follows:
45-3 SECTION 5.08. (a) Except as otherwise provided by this Act,
45-4 this Act takes effect September 1, 2001.
45-5 (b) Sections 5.03 and 5.07 of this Act take effect
45-6 immediately if this Act receives a vote of two-thirds of all the
45-7 members elected to each house, as provided by Section 39, Article
45-8 III, Texas Constitution. If this Act does not receive the vote
45-9 necessary for immediate effect, Sections 5.03 and 5.07 of this Act
45-10 take effect September 1, 2001.
45-11 Explanation: This change is necessary to allow certain
45-12 transitional provisions to have immediate effect.
45-13 ______________________________________
45-14 President of the Senate
45-15 I hereby certify that the above
45-16 Resolution was adopted by the Senate
45-17 on May 27, 2001, by the following
45-18 vote: Yeas 30, Nays 0, one present
45-19 not voting.
45-20 ______________________________________
45-21 Secretary of the Senate