By: Watson S.B. No. 762

(In the Senate - Filed February 10, 2009; March 4, 2009, read first time and referred to Committee on State Affairs; March 26, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; March 26, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 762 By: Lucio

A BILL TO BE ENTITLED

AN ACT

relating to a study concerning the minimum participation requirement for small employer health benefit plans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. DEFINITION. In this Act, "department" means the Texas Department of Insurance.

SECTION 2. STUDY. (a) The department shall conduct a study concerning the minimum participation requirement for small employer health benefit plans under Section 1501.154, Insurance Code.

(b) The study must include:

(1) an evaluation of the effectiveness of a minimum collective employee participation level of 60 percent; and

(2) a comparison of the effectiveness of the current minimum collective employee participation level of 75 percent to a minimum collective employee participation level of between 60 and 75 percent.

SECTION 3. REPORT TO LEGISLATURE. The department shall include a report of the results of the study conducted under this Act in the biennial report to the 82nd Legislature made under Section 32.022, Insurance Code. The report must describe the results of the study conducted under this Act and may contain:

(1) a recommendation concerning whether the minimum collective employee participation level should be reduced from 75 percent to 60 percent; and

(2) the reasons for the recommendation described by Subdivision (1) of this section.

SECTION 4. EFFECTIVE DATE. 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, 2009.

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