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A BILL TO BE ENTITLED
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AN ACT
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relating to health coverage for school district and open-enrollment |
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charter school employees under interlocal contracts or the uniform |
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group coverage program for active school employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 791, Government Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION |
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AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE |
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Sec. 791.051. DEFINITIONS. In this subchapter: |
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(1) "Cooperative" means a cooperative established |
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under this subchapter by an interlocal contract for group health |
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coverage. |
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(2) "Local education agency" means: |
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(A) a school district; or |
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(B) an open-enrollment charter school as defined |
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by Section 5.001, Education Code. |
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(3) "Participating local education agency" means, |
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with respect to a cooperative, a local education agency that |
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participates in the cooperative. |
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Sec. 791.052. COMPLIANCE WITH SUBCHAPTER REQUIRED. A local |
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education agency shall comply with this subchapter when procuring |
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and administering employee group health coverage with another local |
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education agency. |
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Sec. 791.053. INTERLOCAL CONTRACT FOR GROUP HEALTH |
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INSURANCE COVERAGE. (a) The governing body of a local education |
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agency may by resolution enter into an interlocal contract and |
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cooperate with one or more other local education agencies to |
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establish a cooperative for the purposes of procuring group health |
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insurance coverage under this subchapter. |
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(b) The governing body of a local education agency may renew |
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an interlocal contract entered into under Subsection (a). |
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(c) This subchapter does not affect the ability of local |
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education agencies to provide group health coverage through a risk |
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pool established in accordance with Chapter 172, Local Government |
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Code. |
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Sec. 791.054. COOPERATIVE. (a) A cooperative is a legal |
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entity that may procure employee group health insurance coverage |
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for each participating local education agency. |
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(b) Participating local education agencies may contract for |
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the supervision and administration of the cooperative in accordance |
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with Section 791.013. |
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(c) Except as provided by this subsection, a cooperative is |
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governed by a board of directors composed of the chief executive |
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officers of each participating local education agency or the |
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officers' designees. If the cooperative is composed of more than |
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seven local education agencies, the cooperative shall appoint at |
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least seven directors to serve on the cooperative's board of |
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directors. |
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Sec. 791.055. PROCUREMENT. (a) A cooperative must procure |
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a contract for employee group health coverage under this subchapter |
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through a request for proposals to potential vendors advertised in |
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a manner consistent with Section 44.031(g), Education Code, in at |
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least one county in which a participating local education agency's |
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central office is located. |
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(b) The board of directors of a cooperative shall select the |
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vendor that provides the best value to participating local |
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education agencies considering the factors described by Section |
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44.031(b), Education Code. |
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(c) A cooperative that enters into a contract in accordance |
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with this section satisfies a competitive bidding requirement |
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applicable to the procurement of group health coverage under other |
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law. |
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Sec. 791.056. OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A |
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cooperative shall offer one or more group health insurance plans |
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procured under Section 791.055 to: |
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(1) employees of participating local education |
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agencies; and |
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(2) at the discretion of the cooperative's board of |
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directors, dependents of employees described by Subdivision (1). |
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(b) The board of directors of a cooperative may determine a |
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participating local education agency's payment of all, part, or |
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none of the premiums for employees or dependents for a plan offered |
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under Subsection (a). |
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SECTION 2. Section 1579.155(a) and (c), Insurance Code, are |
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amended to read as follows: |
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(a) A [Effective September 1, 2022, a] participating entity |
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may elect to discontinue the entity's participation in the program |
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by providing written notice to the trustee not later than May |
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[December] 31 of the year preceding the first day of the plan year |
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in which the election will be effective. |
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(c) An [Effective September 1, 2022, an] entity that elects |
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to participate in the program shall provide written notice to the |
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trustee not later than May 31 [December 31] of the year preceding |
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the first day of the plan year in which the election will be |
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effective. The entity may not elect to discontinue the entity's |
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participation until the fifth anniversary of the effective date of |
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the entity's election to participate. |
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SECTION 3. Section 1579.155, Insurance Code, as amended by |
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this Act, applies only to group coverage provided for a plan year |
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beginning on or after September 1, 2024. A plan year that begins |
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before September 1, 2024, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2023. |