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).