H.B. 2053 78(R)    BILL ANALYSIS


H.B. 2053
By: Smith, Wayne
County Affairs
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Chapter 157, Local Government Code, originally was enacted over 20 years
ago to give Texas counties the authority to provide "hospitalization
insurance" as a benefit for county employees, officials and their
dependents.  While there have been many changes in the provision of
employee benefits since the enactment of the original hospitalization
insurance statute, the statute has not been updated to reflect modern
terminology, changes in available benefits, new financing options, and the
need for greater flexibility in the provision of benefits. 

The purpose of the bill as filed is to modernize the hospitalization
insurance statute for certain populous counties to reflect the changes in
the provision of benefits to county employees, officials and their
dependents.  The bill would update terminology and give county
commissioners courts the ability to provide benefits through a variety of
financing arrangements. 

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

SECTION 1.  Amends the heading to Subchapter A, Chapter 157, Local
Government Code, to read, "MEDICAL CARE, HOSPITALIZATION, AND INSURANCE IN
CERTAIN COUNTIES." 

 SECTION 2.  Amends Section 157.001, Government Code, by adding new
subsection (a) that provides that Subchapter A only applies to counties
with a population of less than 3.2 million. 

 SECTION 3.  Amends the heading to Section 157.002, Local Government Code,
to read, "MEDICAL CARE, HOSPITALIZATION, AND INSURANCE IN CERTAIN
COUNTIES." 

 SECTION 4.  Amends Chapter 157, Local Government Code, by adding new
Subchapter F entitled "GROUP HEALTH AND RELATED BENEFITS IN POPULOUS
COUNTIES." 

 Adds new Section 157.101 that provides that the new Subchapter F only
applies to counties with population of 3.2 million or more. 

 Adds new Section 157.102 that allows commissioners court to adopt rules
to provide for group health and related benefits for employees, officials
and their dependents, including medical care, surgical care,
hospitalization, pharmaceuticals, mental health and substance abuse, long
term care and other benefit; allows commissioners court to provide these
benefits through insurance, selfinsurance, or other contractual
relationship; requires rules adopted under this section to be communicated
in writing to the person receiving the benefits; requires commissioners
court to hold a public hearing on the adoption of a rule under this
section; and allows a county providing coverage under this section to
reinsure or purchase stop-loss coverage for any amount of liability that
is in excess of projected paid losses. 

 Adds new Section 157.103 that allows commissioners court to establish a
fund to pay for group health and related benefits that is composed of
county and employee contributions; restricts  use of the fund solely to
the provision of group health and related benefits; and allows the fund to
take the form of a single nonprofit trust fund. 

 Adds new Section 157.104 that provides that a county that has paid group
health and related benefits for a sheriff, deputy sheriff, constable,
deputy constable, or other county or precinct law enforcement officials is
subrogated to the law enforcement official's right of recovery for
personal injuries caused by another to the extent of the payments made by
the county. 

 Adds new Section 157.105 to expressly allow a county to purchase and pay
premiums for coverages as described by Section 157.006. 
 
 SECTION 5.  Sets effective date.


EFFECTIVE DATE

September 1, 2003.


EXPLANATION OF AMENDMENTS

Committee Amendment pertains to the Local Government Code, Chapter 172, as
well as striking language in Sections (1), (2), (3).