79R8578 AJA-F

By:  Harper-Brown                                                 H.B. No. 2390



A BILL TO BE ENTITLED

AN ACT

relating to the establishment of an employee welfare benefit plan 
by certain private educational institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The Education Code is amended by adding Title 6 
to read as follows:

TITLE 6.  BENEFITS CONSORTIUMS

CHAPTER 2000.  BENEFITS CONSORTIUMS FOR CERTAIN

PRIVATE EDUCATIONAL INSTITUTIONS
	Sec. 2000.001.  DEFINITIONS.  In this chapter:                          
		(1)  "Employee welfare benefit plan" has the meaning 
assigned by Section 3(1), Employee Retirement Income Security Act 
of 1974 (29 U.S.C. Section 1002(1)).
		(2)  "Private educational institution" means any 
nonpublic, nonprofit, and accredited school that:
			(A)  is owned and operated by an individual, 
religious institution, partnership, association, or corporation, 
or a department, division, or section of one of those entities; and
			(B)  designates itself as a private educational 
center that includes a program of elementary, secondary, religious, 
college, or university education whose primary purpose is to 
provide private or religious-based education.
	Sec. 2000.002.  FORMATION OF BENEFITS CONSORTIUM.  Two or 
more private educational institutions may form a benefits 
consortium for the purpose of establishing a self-funded employee 
welfare benefit plan by adopting articles of incorporation or a 
declaration of trust.  The articles of incorporation or declaration 
of trust must:
		(1)  limit membership in the benefits consortium to 
private educational institutions;
		(2)  list the charter members of the benefits 
consortium;            
		(3)  include the method by which other institutions may 
be admitted as members of the benefits consortium;
		(4)  require that each member agree to an initial 
membership term of not less than three years;
		(5)  provide that the directors or trustees of the 
benefits consortium be elected from or on behalf of the membership 
of the benefits consortium and prescribe the method for selection 
of directors or trustees of the benefits consortium;
		(6)  provide that the directors or trustees have 
complete fiscal control over the plan and are responsible for all 
operations of the plan;
		(7)  list the purposes of the benefits consortium, 
including the types of risks shared by members of the consortium;
		(8)  establish bylaws of the benefits consortium; and                  
		(9)  provide for amendment of the articles of 
incorporation or declaration of trust and the bylaws.
	Sec. 2000.003.  FILINGS BY BENEFITS CONSORTIUM.  A benefits 
consortium formed under this chapter shall:
		(1)  file with the commissioner of insurance a copy of 
the consortium's articles of incorporation or declaration of trust 
and any amendments to the articles of incorporation or declaration 
of trust; and
		(2)  comply with all reporting requirements under the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 
1001 et seq.).
	Sec. 2000.004.  REGULATION OF BENEFITS CONSORTIUM; 
EXEMPTION FROM STATE REGULATION.  An employee welfare benefit plan 
established by a benefits consortium under this chapter that is 
sponsored by a trade association in existence for 10 years or more, 
is in good standing with the secretary of state, and meets the 
requirements of this chapter is governed solely by and shall comply 
with the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
Section 1001 et seq.), as implemented by the United States 
Department of Labor.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.