BILL ANALYSIS

 

 

                                                                                                                                      C.S.H.B. 973

                                                                                                                                           By: Eissler

                                                                                                                                 Public Education

                                                                                                        Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

In many cases, teachers leave employment with one school district at the end of one school year, and begin employment with another school district the following school year.  Under current law, these teachers are not entitled to remain on the school district's group health insurance during this interim period, and may experience a gap in health coverage for themselves and their families.

 

Under CSHB 973, an employee of a school district whose resignation is effective after the last day of an instructional year would be entitled to participate or be enrolled in the district's insurance program for the remainder of the plan year.

 

The bill would also prohibit a school district from diminishing or eliminating the amount of a contribution available to such employees under applicable provisions of the Insurance Code before the last date on which the employee is entitled to participation or enrollment under the insurance program.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

 

The bill provides that, notwithstanding any other law, an employee of a district participating in uniform group coverage plan or the group health coverage as described in the bill whose resignation is effective after the last day of an instructional year is entitled to participate or be enrolled in the uniform group coverage plan or the group health coverage through the first anniversary of the date participation in or coverage under the coverage plan or group health coverage was first made available to district employees for the last instructional year in which the employee was employed by the district.

 

The bill further provides that if an employee's resignation is effective after the last day of an instructional year, the district may not diminish or eliminate the amount of a contribution available to the employee under Chapter 1581, Insurance Code, before the last date on which the employee is entitled to participation or enrollment under the provisions of this bill.

 

The bill further provides that the change in law made by this Act applies beginning with the 2007-2008 school year.

 

EFFECTIVE DATE

 

September 1, 2007.

 

COMPARISON OF ORIGINAL TO SUBSTITUTE

 

The original bill provided that if an employee's resignation is effective after the last day of an instructional year, the district and the Teacher Retirement System of Texas may not diminish or eliminate the amount of a contribution available to the employee under Chapter 1579 or 1581, Insurance Code, before the last date on which the employee is entitled to participation or enrollment under Subsection (k).  The substitute bill strikes references to the Teacher Retirement System and Chapter 1579, Insurance Code.