HBA-SEB H.B. 3089 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3089 By: Woolley Pensions and Investments 3/25/1999 Introduced BACKGROUND AND PURPOSE Currently, neither the Employees Retirement System of Texas nor the Teacher Retirement System of Texas offers a group long-term care insurance program. H.B. 3089 establishes such a program for both systems and allows the two retirement systems to hire an administrative firm to administer the programs. This bill also authorizes the retirement systems to consult with the Texas A&M University System for developing and implementing the programs since that university system offers a group long-term care insurance program under similar provisions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the board of trustees of the Employees Retirement System of Texas in SECTION 1 (Article 3.502A, Insurance Code) and to the Teacher Retirement System of Texas in SECTION 2 (Article 3.504A, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter E, Chapter 3, Insurance Code, by adding Article 3.50-2A, as follows: Art. 3.50-2A. TEXAS EMPLOYEES GROUP LONG-TERM CARE INSURANCE PROGRAM. Defines "administering firm," "employee," and "trustee." Requires the board of trustees of the Employees Retirement System of Texas (board), as trustee, to establish a group long-term care insurance program for an employee or a retired employee, a spouse of an employee or a retired employee, a parent or grandparent of an employee or retired employee, and a parent-in-law of an employee or retired employee. Requires the board to select an administering firm to administer the program under contract. Requires the administering firm to bill each program participant directly for premiums and any other program cost for which the participant is responsible. Prohibits the premiums and program cost from being deducted from an employee's monthly compensation or a retired employee's annuity. Provides that the program is not part of the group coverages offered under the Texas Employees Uniform Group Insurance Benefits Act. Prohibits the state from contributing any part of the premiums for coverage under this article. Authorizes the board to adopt rules as necessary to implement this article, including rules specifying the coverage to be offered under the program. SECTION 2. Amends Subchapter E, Chapter 3, Insurance Code, by adding Article 3.50-4A, as follows: Art. 3.50-4A. TEXAS PUBLIC SCHOOL EMPLOYEES GROUP LONG-TERM CARE INSURANCE PROGRAM. Makes conforming changes with respect to the establishment of a group long-term care insurance program for Texas public school employees. Authorizes the Teacher Retirement System of Texas, as trustee, to adopt rules as necessary to implement this article, including rules specifying the coverage to be offered under the program. SECTION 3. Requires the trustees of the Texas Uniform Group Insurance Benefits Program and the Texas Public School Employees Group Insurance Program to implement the long-term care group insurance programs required by Articles 3.50-2A and 3.50-4A, Insurance Code, respectively, as added by this Act, not later than January 1, 2000. Authorizes both trustees to consult with Texas A&M University with respect to development and implementation of the program. SECTION 4.Emergency clause. Effective date: upon passage.