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.