SRC-JEC S.B. 1117 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1117
78R5964 PB-DBy: Williams
State Affairs
4/29/2003
As Filed


DIGEST AND PURPOSE 

Current law allows the Teacher Retirement System (TRS), in offering health
insurance programs for local school districts, to also offer optional
benefits plans.  As proposed, S.B. 1117 prohibits TRS from offering
optional benefits plans, and clarifies that local school districts are not
prohibited from offering optional benefits plans to their employees. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Teacher Retirement System
in SECTION  4 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4(e), Article 3.50-7, Insurance Code, to
prohibit the Teacher Retirement System (TRS) from, rather than authorizing
it to, offering optional coverages to employees participating in the
program.  Provides that this subsection does not affect the right of a
participating entity to offer optional coverages to its employees under
terms and conditions established by the participating entity.  Deletes the
authorization for TRS to define by rule the types of optional coverages
offered under this subsection. 

SECTION 2.  Amends Section 8(b), Article 3.50-7, Insurance Code, to remove
a provision stating that the fund is composed partially of contributions
made by employees or participating entities for optional coverages.
Renumbers subsequent subdivisions accordingly. 

SECTION 3.  Provides that, to the extent of any conflict, this Act
prevails over another Act of the 78th Legislature, Regular Session, 2003,
relating to nonsubstantive additions to and corrections in enacted codes. 

SECTION  4.  Requires the board of trustees of TRS to adopt any rules
required by the change in law made by this Act not later than December 1,
2003. 

SECTION  5.  Makes application of this Act prospective to January 1, 2004.

SECTION  6.  Effective date:  September 1, 2003.