BILL ANALYSIS

Senate Research Center                                                                                                        S.B. 787

79R3549 KEG-D                                                                                                           By: Williams

State Affairs

3/23/2005

As Filed

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

The Local Government Code authorizes a political subdivision to extend the same accident and health benefits coverage to employees of affiliated service contractors, such as a chamber of commerce, as are provided for political subdivision employees.  Currently, chambers of commerce and other not-for-profit agencies must receive 50 percent of their revenue from political subdivision contracts to participate in the risk pool.   

As proposed, S.B. 787 allows chambers of commerce and other not-for-profit agencies that receive 25 percent or more of their revenue from political subdivision contract to join a political subdivision risk pool. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 172.003(1), Local Government Code, to redefine "affiliated service contractor."

SECTION 2.  Effective date:  upon passage or September 1, 2005.