SRC-JEC S.B. 1369 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1369
78R8327 DLF-DBy: Duncan
Finance
5/2/2003
As Filed


DIGEST AND PURPOSE 

In 1985, the legislature created a comprehensive group health benefit plan
for eligible retired Texas public school employees and their eligible
dependents.  Historically, the program has been funded through a
combination of state, active teacher, and retiree contributions.  However,
program expenditures are now exceeding revenues.  As proposed, S.B. 1369
sets forth changes to the Texas School Employees Uniform Group Health
Coverage Act and the Texas Public School Employees Group Benefit Act. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Teacher Retirement System
of Texas (TRS) in SECTION  1.01 (Section 3, Article 3.50-7, Insurance
Code) of this bill.  Rulemaking authority is transferred from the
commissioner of insurance or state auditor, as applicable, to the board of
trustees of TRS in SECTION  1.04 (Section 22.004(h), Education Code) of
this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH COVERAGE ACT AND
BENEFITS FOR SCHOOL EMPLOYEES 

SECTION  1.01.  Amends Section 3, Article 3.50-7, Insurance Code, by
adding Subsection (g), to require the Teacher Retirement System of Texas
(TRS) to provide the group health coverage plan under this article through
a defined contribution plan.  Authorizes TRS to provide optional coverages
offered under the program through the defined contribution plan.  Requires
TRS to adopt rules as necessary to implement this subsection. 

SECTION  1.02.  Amends Section 2(c), Article 3.50-8, Insurance Code, to
require TRS to distribute funds under this article in equal annual, rather
than monthly, installments. 

SECTION  1.03.  Amends Section 2(c), Article 3.50-9, Insurance Code, to
remove text relating to the deposit of amounts used as required by this
section in a fund established for the payment of employee health coverage
that meets requirements for those funds prescribed by the Texas Education
Agency. 

SECTION  1.04.  Amends Section 22.004(h), Education Code, to provide that
an audited financial statement provided under this section must be made in
accordance with rules adopted by the board of trustees of TRS, rather than
the commissioner of insurance or state auditor as applicable.    

ARTICLE 2.  TEXAS PUBLIC SCHOOL EMPLOYEES GROUP BENEFITS ACT

SECTION  2.01.  Amends Section 1575.003(1), Insurance Code, as effective
June 1, 2003, to redefine "dependent" to include an unmarried child
younger than 19, rather than 25, years of age. 

SECTION  2.02.  Amends Section 1575.159, Insurance Code, as effective June
1, 2003, to require a  health benefit plan offered under the group program
to provide coverage for a medically accepted prostate-specific antigen
test used for the detection of prostate cancer for each male enrolled in
the plan who is at least 55, rather than 50, years of age; or is at least
35, rather than 40, years of age and meets certain conditions.  

SECTION  2.03.  Amends Section 1575.202(a), Insurance Code, as effective
June 1, 2003, to require the state to contribute to the fund an amount
equal to 0.1, rather than 0.5, percent of the salary of each active
employee, each state fiscal year. 

SECTION  2.04.  Amends Section 1575.203(a), Insurance Code, as effective
June 1, 2003, to require each active employee, as a condition of
employment, to contribute to the fund an amount equal to 0.5, rather than
0.25, percent of the employee's salary, each state fiscal year. 

SECTION  2.05.  Repealer:  Section 1575.204 (Ratio of State and Active
Employee Contributions), Insurance Code, as effective June 1, 2003. 

SECTION  2.06.  Amends Section 1577.101, Insurance Code, to authorize,
rather than require, the TRS board of trustees to contract with one or
more carriers authorized to provide the applicable type of insurance to
provide each type of coverage required by Subchapter B. 

ARTICLE 3.  EFFECTIVE DATE

SECTION  3.01.  Effective date:  September 1, 2003.