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.