By: Hughes  S.B. No. 1781
         (In the Senate - Filed March 7, 2023; March 20, 2023, read
  first time and referred to Committee on Health & Human Services;
  May 1, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; May 1, 2023, sent
  to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1781 By:  Hughes
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to health coverage for school district and open-enrollment
  charter school employees under interlocal contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 791, Government Code, is amended by
  adding Subchapter D to read as follows:
  SUBCHAPTER D.  INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION
  AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE
         Sec. 791.051.  DEFINITIONS. In this subchapter:
               (1)  "Cooperative" means a cooperative established
  under this subchapter by an interlocal contract for group health
  coverage.
               (2)  "Local education agency" means:
                     (A)  a school district; or
                     (B)  an open-enrollment charter school as defined
  by Section 5.001, Education Code.
               (3)  "Participating local education agency" means,
  with respect to a cooperative, a local education agency that
  participates in the cooperative.
         Sec. 791.052.  COMPLIANCE WITH SUBCHAPTER REQUIRED. A local
  education agency shall comply with this subchapter when procuring
  and administering employee group health coverage with another local
  education agency.
         Sec. 791.053.  INTERLOCAL CONTRACT FOR GROUP HEALTH
  INSURANCE COVERAGE. (a) The governing body of a local education
  agency may by resolution enter into an interlocal contract and
  cooperate with one or more other local education agencies to
  establish a cooperative for the purposes of procuring group health
  insurance coverage under this subchapter.
         (b)  The governing body of a local education agency may renew
  an interlocal contract entered into under Subsection (a).
         (c)  This subchapter does not affect the ability of local
  education agencies to provide group health coverage through a risk
  pool established in accordance with Chapter 172, Local Government
  Code.
         Sec. 791.054.  COOPERATIVE. (a) A cooperative is a legal
  entity that may procure employee group health insurance coverage
  for each participating local education agency.
         (b)  Participating local education agencies may contract for
  the supervision and administration of the cooperative in accordance
  with Section 791.013.
         (c)  Except as provided by this subsection, a cooperative is
  governed by a board of directors composed of the chief executive
  officers of each participating local education agency or the
  officers' designees. If the cooperative is composed of more than
  seven local education agencies, the cooperative shall appoint at
  least seven directors to serve on the cooperative's board of
  directors.
         Sec. 791.055.  PROCUREMENT. (a) A cooperative must procure
  a contract for employee group health coverage under this subchapter
  through a request for proposals to potential vendors advertised in
  a manner consistent with Section 44.031(g), Education Code, in at
  least one county in which a participating local education agency's
  central office is located.
         (b)  The board of directors of a cooperative shall select the
  vendor that provides the best value to participating local
  education agencies considering the factors described by Section
  44.031(b), Education Code. 
         (c)  A cooperative that enters into a contract in accordance
  with this section satisfies a competitive bidding requirement
  applicable to the procurement of group health coverage under other
  law.
         Sec. 791.056.  OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A
  cooperative shall offer one or more group health insurance plans
  procured under Section 791.055 to employees of participating local
  education agencies and dependents of those employees.
         (b)  The board of directors of a cooperative may determine a
  participating local education agency's payment of all or part of
  the premiums for employees or dependents for a plan offered under
  Subsection (a).
         (c)  A participating local education agency's payment:
               (1)  is subject to the requirements described by
  Section 1581.052, Insurance Code; and
               (2)  shall include the contributions by the state
  described by Subchapter F, Chapter 1579, Insurance Code.
         SECTION 2.  This Act takes effect September 1, 2023.
 
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