By:  Coleman                                                      H.B. No. 2607



A BILL TO BE ENTITLED

AN ACT

relating to funding of group coverage programs for certain school 
and educational employees and their dependents.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Art. 3.50-7.  Texas School Employees Uniform 
Group Health Coverage Act, Section 9. Payment of Contributions for 
Program, Subsections (a) and (b) are amended to read as follows:
	(a)  The state shall assist employees of participating 
school districts and charter schools in the purchase of group  
health coverage under this article by [providing for each covered  
employee the amount of $900 each state fiscal year or a greater  
amount as provided by the General Appropriations Act.] paying each 
fiscal year the full cost of employee only coverage and fifty 
percent (50%) of any dependent coverage selected, for each covered 
employee.  The state cost shall be reduced by the amount of the 
participating entity contribution as provided by Article 3.50-9 of 
this code.  The state  contribution shall be distributed through the 
school finance  formulas under Chapters 41 and 42, Education Code, 
as provided by Sections  42.2514 and 42.260, Education Code.
	(b)  The state shall assist employees of participating 
regional  education service centers and educational districts 
described by  Section 2(6)(B) of this article in the purchase of 
group health  coverage under this article by providing to the 
employing service  center or educational district, for each covered 
employee, the [amount of $900 each state fiscal year or a greater 
amount as  provided by the General Appropriations Act.] full cost of 
employee only coverage and fifty percent (50%) of any dependent 
coverage selected, for each covered employee.  The state cost shall 
be reduced by the amount of the participating entity contribution 
as provided by Article 3.50-9 of this code.
	SECTION 2.  Chapter 42, Subchapter E, Section 42.2514. 
Additional State Aid for School Employee Benefits, Subsection (b), 
Education Code, is amended to read as follows:
	(b)  For each school year, a school district, including a 
school district that is otherwise ineligible for state aid under 
this chapter, or a participating charter school is entitled to 
state aid in an amount, as determined by the commissioner, equal to 
[the difference, if any, between:] the full cost of employee only 
coverage and fifty percent (50%) of any dependent coverage 
selected, for each covered employee who participates in a group 
health coverage plan provided by or through the district or school, 
minus the amount of the participating entity contribution as 
provided in Article 3.50-9, Insurance Code.
		[(1)  the amount determined by multiplying the amount 
of $900 or the amount specified in the General Appropriations Act 
for that year for purposes of the state contribution under Section 
9, Article 3.50-7, Insurance Code, by the number of district or 
school employees who participate in a group health coverage plan 
provided by or through the district or school; and
		[(2)  an amount equal to 75 percent of the amount of:        
			[(A)  additional funds to which the district or 
school is entitled due to the increase made by H.B. No. 3343, Acts 
of the 77th Legislature, Regular Session, 2001, to:
				[(i)  the equalized wealth level under 
Section 41.002; and
				[(ii)  the guaranteed level of state and 
local funds per weighted student per cent of tax effort under 
Section 42.302; or
			[(B)  additional state aid to which the district 
is entitled under Section 42.2513.]
	SECTION 3.  Chapter 42, Subchapter E, Section 42.260.  Use of 
Certain Funds, Subsection (c) is amended to read as follows:
	(c)  Notwithstanding any other provision of this code, a 
school district or participating charter school may use the 
following amount of funds only to pay contributions under a group 
health coverage plan for district or school employees[:]; an amount 
equal to the full cost of employee only coverage and fifty percent 
(50%) of any dependent coverage selected, for each covered 
employee.
		[(1)  an amount equal to 75 percent of the amount 
certified for the district or school under Subsection (b); or
		[(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			[(A)  the amount determined by multiplying the 
amount of $900 or the amount specified in the General 
Appropriations Act for that year for purposes of the state 
contribution under Section 9, Article 3.50-7, Insurance Code, by 
the number of district or school employees who participate in a 
group health coverage plan provided by or through the district or 
school; and
			[(B)  the difference between the amount necessary 
for the district or school to comply with Section 3, Article 3.50-9, 
Insurance Code, for that school year and the amount the district or 
school is required to use to provide health coverage under Section 2 
of that article for that year.]
	SECTION 4.  This Act applies beginning with the 2003-2004 
school year.