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AN ACT
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relating to establishing a contingency reserve account under the |
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Texas Public School Employees Group Insurance Program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 1575, Insurance Code, is |
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amended by adding Section 1575.307 to read as follows: |
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Sec. 1575.307. CONTINGENCY RESERVE ACCOUNT. (a) Before |
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the first day of each state fiscal biennium, the trustee shall |
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estimate for an average 60-day period during the biennium the |
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expenditures from the fund anticipated for the group program, |
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considering projected claims and administrative expenses. |
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(b) The trustee shall place the estimated amount in a |
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contingency reserve account to provide for adverse fluctuations in |
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claims or administrative expenses. |
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(c) The trustee shall include in each request for |
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legislative appropriations to the group program the amount the |
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trustee determines to be necessary to maintain the contingency |
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reserve account at the level required by this section. |
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(d) The trustee may invest and reinvest any portion of the |
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contingency reserve account in accordance with Sections 825.103(b) |
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and 825.301, Government Code, considering the functional need to |
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provide for adverse fluctuations in claims or administrative |
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expenses. |
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(e) The interest on, earnings of, and proceeds from the sale |
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of investments of assets in the contingency reserve account shall |
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be credited to the account. |
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(f) The trustee, from time to time and in amounts the |
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trustee considers appropriate, may transfer unused money for |
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administrative expenses to the contingency reserve account to be |
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used by the trustee only for charges, claims, and expenses under the |
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group program. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1682 passed the Senate on |
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April 17, 2019, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1682 passed the House on |
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May 17, 2019, by the following vote: Yeas 147, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |