C.S.H.B. 3441 78(R)    BILL ANALYSIS


C.S.H.B. 3441
By: Pickett
Appropriations
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Due to the current budget shortfall,  state agencies and institutions of
higher education were asked to prioritize spending based on core functions
and essential services.  The committee looked to these priorities in
preparation of the budget; however, certain statutory changes are also
needed to conform with appropriations levels in the 2004-05 General
Appropriations Act. Committee Substitute House Bill 3441 authorizes these
statutory changes for the general government agencies listed under Article
I of the 2004-05 General Appropriations Act.   
   

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is transferred
from the Commission on Human Rights to the attorney general's civil rights
division in SECTIONS 1 (Section 21.0015, Labor Code), 2 (Section 301.0015,
Property Code), and 17 of this substitute. 


ANALYSIS

Committee Substitute House Bill 3441 transfers power and duties exercised
by the Commission on Human Rights under the Labor and Property Codes to
the attorney general's civil rights division. 

Committee Substitute House Bill 3441 creates the attorney general's civil
rights division and sets forth guidelines in reference to its membership,
duties and powers. 

Committee Substitute House Bill 3441 provides that in the event the
legislature does not appropriate money to the Crime Victims Institute, the
attorney general may determine whether the institute shall perform the
duties prescribed to it under Chapter 412 of the Government Code. 

Committee Substitute House Bill 3441 provides that money and securities
donated to the Preservation Board will be held in the Capitol trust fund
outside the treasury but requires that funds other than donated funds be
deposited into the Capitol account, which is created by this Act, within
the general revenue fund.  This substitute directs the comptroller to
manage and invest the account on behalf of the Preservation Board.  

Committee Substitute House Bill 3441 changes the capital renewal trust
fund into the capital renewal account in the general revenue fund and
provides that the board may transfer money from the Capitol account to the
capital renewal account after a determination that there will be a
sufficient amount in the Capitol account to accomplish its designated
purposes. 

Committee Substitute House Bill 3441 changes the Bob Bullock Texas State
History Museum fund into the Bob Bullock Texas State History Museum
account in the general revenue fund. 

Committee Substitute House Bill 3441 changes the definition of a full-time
employee under Chapter 1551 of the Insurance Code to one who works 40
rather than 20 hours per week with exceptions for certain employees of the
Texas School for the Blind and Visually Impaired and the Texas School for
the Deaf.  This substitute also changes the definition of a part-time
employee under this Chapter to one who work less than 40, rather than 20,
hours per week and creates a new definition for "waiting period" within
this Chapter. 
 
Committee Substitute House Bill 3441 provides that an employee is eligible
to participate in the health benefits coverage under the group benefits
plan on the first day of the calendar month that follows the waiting
period.  The waiting period does not apply in determining the eligibility
of an officer or employee to participate in optional and voluntary
insurance coverages under the group insurance program.   

Committee Substitute House Bill 3441 gives authority to the board of
trustees of the Employees Retirement System to determine service credit
for individuals eligible to participate in group benefits.  This
substitute also provides that an individual who does not retire at the end
of the last month in which the individual is on the payroll of a state
agency is eligible to enroll in the group benefits program as an annuitant
on the first day of the calendar month that follows a period of time equal
to the number of days in a waiting period after the date the individual
retires.   

Committee Substitute House Bill 3441 amends language throughout Chapter
1551 of the Insurance Code to establish minimum eligibility for retiree
insurance as (1) 65 years of age and 10 years of service or (2)
satisfaction of the Rule of 80, and to establish a 90-day waiting period
for retirees who were not employees on a state agency payroll at
retirement. 

Committee Substitute House Bill 3441 provides that an individual
participating in the group benefits program on August 31, 2003, as a
current or a former member of a governing body with administrative
responsibility over a statutory state agency that has statewide
jurisdiction and whose employees are covered by this chapter, or an
individual participating in the group benefits program on August 31, 2003,
as a current or former member of the State Board of Education or of the
governing body of an institution of higher education remains eligible if a
lapse of coverage has not occurred but shall receive no state
contribution.  Individuals appointed after August 31, 2003, will not be
allowed to participate in the group benefits program. 

Committee Substitute House Bill 3441 makes optional both the distribution
of the premarital education handbook to marriage license applicants and
the appointment of an advisory committee to assist in the development of
such a handbook. 

Committee Substitute House Bill 3441 abolishes the Commission on Human
Rights as it exists on September 1, 2003, and transfers all powers,
duties, functions, and activities of the commission to the attorney
general's civil rights division.  This substitute also requires the
governor to appoint new members to the Commission on Human Rights as
established by this Act no later than November 1, 2003. 

Committee Substitute House Bill 3441 repeals certain sections of the
Election, Government, Insurance, Labor and Property Codes. 

Committee Substitute House Bill 3441 authorizes the legislature to reduce
statutory amounts going to Article I state agencies if necessary to
balance the budget. 


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

Committee Substitute House Bill 3441 modifies the original by adding
language that transfers power and duties exercised by the Commission on
Human Rights under the Labor and Property Codes to the attorney general's
civil rights division. 
    
Committee Substitute House Bill 3441 modifies the original by adding
language that creates the attorney general's civil rights division and
sets forth guidelines in reference to its membership, duties and powers. 
 
Committee Substitute House Bill 3441 modifies the original by adding
language that provides that in the event the legislature does not
appropriate money to the Crime Victims Institute, the attorney general may
determine whether the institute shall perform the duties prescribed to it
under Chapter412 of the Government Code. 

Committee Substitute House Bill 3441 modifies the original by adding
language that (1) provides that money and securities donated to the
Preservation Board will be held in the Capitol trust fund outside the
treasury; (2) requires that funds other than donated funds be deposited
into the Capitol account, created by this Act, within the general revenue
fund; and (3) directs the comptroller to manage and invest the account on
behalf of the Preservation Board.  

Committee Substitute House Bill 3441 modifies the original by adding
language that changes the capital renewal trust fund into the capital
renewal account in the general revenue fund and provides that the board
may transfer money from the Capitol account to the capital renewal account
after a determination that there will be a sufficient amount in the
Capitol account to accomplish its designated purposes. 

Committee Substitute House Bill 3441 modifies the original by adding
language that changes the Bob Bullock Texas State History Museum fund into
the Bob Bullock Texas State History Museum account in the general revenue
fund. 

Committee Substitute House Bill 3441 modifies the original by adding
language that (1) changes the definition of a full-time employee under
Chapter 1551 of the Insurance Code to one who works 40 rather than 20
hours per week with exceptions for certain employees of the Texas School
for the Blind and Visually Impaired and the Texas School for the Deaf; (2)
changes the definition of a part-time employee under this Chapter to one
who work less than 40, rather than 20, hours per week; and (3) creates a
new definition for "waiting period" within this Chapter. 

Committee Substitute House Bill 3441 modifies the original by adding
language that provides an employee is eligible to participate in the
health benefits coverage under the group benefits plan on the first day of
the calendar month that follows the waiting period.  The waiting period
does not apply in determining the eligibility of an officer or employee to
participate in optional and voluntary insurance coverages under the group
insurance program.   

Committee Substitute House Bill 3441 modifies the original by adding
language that (1) gives authority to the board of trustees to determine
service credit for individuals eligible to participate in group benefits
and (2) provides that an individual who does not retire at the end of the
last month in which the individual is on the payroll of a state agency is
eligible to enroll in the group benefits program as an annuitant on the
first day of the calendar month that follows a period of time equal to the
number of days in a waiting period after the date the individual retires.

Committee Substitute House Bill 3441 modifies the original by adding
language that amends provisions throughout Chapter 1551 of the Insurance
Code to establish minimum eligibility for retiree insurance as (1) 65
years of age and 10 years of service or (2) satisfaction of the Rule of
80, and to establish a 90-day waiting period  for retirees who were not
employees on a state agency payroll at retirement. 

Committee Substitute House Bill 3441 modifies the original by adding
language that provides that an individual participating in the group
benefits program on August 31, 2003, as a current or a former member of a
governing body with administrative responsibility over a statutory state
agency that has statewide jurisdiction and whose employees are covered by
this chapter, or an individual participating in the group benefits program
on August 31, 2003, as a current or former member of the State Board of
Education or of the governing body of an institution of higher education
remains eligible if a lapse of coverage has not occurred but shall receive
no state contribution.  Individuals appointed after August 31, 2003, will
not be allowed to participate in the group benefits program. 



 Committee Substitute House Bill 3441 modifies the original by adding
language that makes optional both the distribution of the premarital
education handbook to marriage license applicants and the appointment of
an advisory committee to assist in the development of such a handbook. 

Committee Substitute House Bill 3441 modifies the original by adding
language that (1) abolishes the Commission on Human Rights as it exists on
September 1, 2003; (2) transfers all powers, duties, functions, and
activities of the commission to the attorney general's civil rights
division; and (3) requires the governor to appoint new members to the
Commission on Human Rights as established by this Act no later than
November 1, 2003. 

Committee Substitute House Bill 3441 modifies the original by adding
language that repeals certain sections of the Election, Government,
Insurance, Labor and Property Codes. 

Committee Substitute House Bill 3441 modifies the original by removing
language that directs the Employees Retirement System to reduce
expenditures by implementing a 30-day waiting period for new members,
establishing new eligibility requirements for retirees to receive
insurance benefits, reducing the state contribution for insurance benefits
for employees working less than full-time, eliminating or reducing
contributions for the State Kids Insurance Program, eliminating state
contributions for members of state boards and graduate teaching assistants
at institutions of higher education, decreasing the maximum age for which
dependents and retirees may be covered by state insurance, and reducing
death benefits for beneficiaries of public safety personnel.  
           
Committee Substitute House Bill 3441 modifies the original by removing
language that directs the Pension Review Board to reduce expenditures by
discontinuing, when possible, the provision of technical assistance and
the issuance of actuarial impact statements. 

Committee Substitute House Bill 3441 modifies the original by removing
language that directs the Texas Commission on Human Rights to reduce
expenditures by instituting measures necessary to increase federal funding
while implementing cost-saving measures.