C.S.H.B. 725 78(R)    BILL ANALYSIS


C.S.H.B. 725
By: Haggerty
State Health Care Expenditures, Select
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, a community supervision and corrections department (department)
must contract with a county or a county in their jurisdiction in order to
provide health coverage and other benefits to department employees.  They
are therefore subject to that county's choice of insurance provider, and
in some cases may pay higher premiums, as in the case of a small insurance
pool.  Allowing departments to participate in the Employees Retirement
System of Texas (ERS) as though their employees were state employees may
provide the employees with access to a better benefits package.  

H.B. 725 extends basic life, accident, and health benefits coverage under
ERS to active department employees, retired employees, and the eligible
dependents of active and retired department employees.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

H.B. 725 substitute differs from the original bill by stating that the
community justice assistance division of the Texas department of criminal
justice is responsible for payment of the contributions for each of a
department's participating active employees and employees' dependent,
retired employees and retired employees dependents that the state would
make under Subchapter G if the employees were state employees. (Sec.
1551.114 (e), (f) and (g)) 

H.B. 725 substitution deletes reference to the use of state funds in
Government Code 509.011 (c). 

The substitute requires the community supervision and corrections
department to submit, no later than June 1 of each year, to the board of
trustees an estimated number of active employees, retired employees, and
dependents of active or retired employees to be enrolled in the group
benefits programs for the following fiscal year and reconcile with the
board of trustee record of coverage on a monthly basis. (Sec, 1551.321 (a)
and (b)) 

The substitute requires the board of trustees no later then August 1 of
each year to notify the community justice assistance division of the Texas
department of criminal justice of the estimated number of community
supervision and corrections departments active employees, retired
employees and dependents for the following fiscal year.   The community
justice assistance division of the Texas department of criminal justice on
receipt of notifications shall make timely payments to the board of
trustees and reconcile each month with the board of trustees records. (Sec
1551.322 (a) and (b)) 


The department shall submit all information in a manner and form
prescribed by the ERS. (76.006 (I)) 

The bill also amends 509.011 which requires the community justice
assistance to submit payment to the comptroller for payment to the ERS for
community supervision and corrections department  participants from money
that the division would otherwise allocate to a department.(509.011
Government Code) 

Set a time table for commissioners court to provide benefits information
no latter than September 1, 2004. (Section 3.02) 

EFFECTIVE DATE

September 1, 2003.  Article 2 effective September 1, 2004. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

The words "The community justice assistance division of the Texas
Department of Criminal Justice" replaces "each community supervision and
corrections department" in subsection (e) line 13 page 4. 

The word "division" replaces the word "department" in subsection (e) line
20 page 4. 

The words "The community justice assistance division of the Texas
Department of Criminal Justice" replaces "each community supervision and
corrections department" in subsection (f) line 27 page 4. 

The word "division" replaces the word "department" in subsection (e) line
20 page 4. 

The words "the community justice assistance division of the Texas
Department of Criminal Justice" replaces "each community supervision and
corrections department" in subsection (g) line 14 page 5. 

A new subsection (i) is added on line 20 page 7.

A new subsection (a-1) is added to SECTION 2.02. and replaces subsection
(c), on line 25 page 7.