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


Senate Research CenterC.S.S.B. 1117
78R14133 PB-FBy: Williams
State Affairs
5/10/2003
Committee Report (Substituted)


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.  C.S.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 3 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 offering, rather than
authorizing it to offer, optional coverages to employees participating in
the program, other than those required by Chapter 1577 of this code.
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.  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  3.  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  4.  Makes application of this Act prospective to January 1, 2004.

SECTION  5.  Effective date:  September 1, 2003.