C.S.H.B. 2907 78(R) BILL ANALYSIS C.S.H.B. 2907 By: Eissler Insurance Committee Report (Substituted) BACKGROUND AND PURPOSE House Bill 3343 was adopted by the 77th Legislature to respond to the rising costs of health insurance and the lack of availability of health insurance for many local school districts. In addition to setting up a health insurance program for employees of local school districts, HB 3343 authorized the Texas Retirement System of Texas to offer optional coverages to employees participating in the program. Optional coverages provide benefits for treatments or procedures for which some health insurance policies do not, such as dental or disability insurance. However, local school districts are able to purchase such optional coverages in the open, commercial market. C.S.H.B. 2907 prohibits the Texas Retirement System of Texas from offering optional coverages, other than certain required optional coverages. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the board of trustees of the Teacher Retirement System of Texas in SECTION 3. ANALYSIS C.S.H.B. 2907 prohibits the Texas Retirement System of Texas from offering optional coverages, other than those required by Chapter 1577 of the Insurance Code, to employees participating in the uniform group coverage program. The right of an entity participating in the uniform group coverage program to offer optional coverages to its employees under terms and conditions established by the participating entity is not affected by this prohibition. The bill deletes the provision authorizing the Texas Retirement System of Texas to define the types of optional coverages offered. The bill provides that this Act prevails over another Act of the 78th Legislature, Regular Session, relating to nonsubstantive additions to and corrections in enacted codes. The bill requires the board of trustees of the Teacher Retirement System of Texas to adopt any rules required by this Act not later than December 1, 2003. EFFECTIVE DATE September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2907 modifies the original to clarify that the Teacher Retirement System of Texas is not prohibited from offering the optional coverages required by Chapter 1577 of the Insurance Code. The substitute removes provisions relating to the composition of the Texas school employees uniform group coverage trust fund.