HBA-TYH H.B. 362 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 362 By: Hupp Pensions and Investments 6/28/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, state law required schools to give insurance benefits to out-of-state employees. Most other states did not require their colleges to give insurance benefits to out-of-state employees under their state plans, which allowed those schools to submit much lower bids for projects. Moreover, many of the benefits provided by the Texas program were not applicable to foreign residents. The impact of this bill is, for the most part, limited to the University of Central Texas, which competes against many non-Texas colleges for federal contracts to provide educational instruction abroad to U.S. servicemen and women. H.B. 362 gives community/junior colleges the flexibility to decide whether they want to give out-of-state employees insurance benefits under the Texas Employees Uniform Group Insurance Benefits Act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 3.50-2, V.T.I.C. (Texas Employees Uniform Group Insurance Benefits Act), by adding Section 13C, as follows: Sec. 13C. CERTAIN EMPLOYEES INELIGIBLE. Provides that an employee of a public community/junior college who is employed to perform services outside of this state is not eligible to participate in group programs under this article, unless the college, in accordance with adopted procedures, permits the employee to participate. Provides that, under this section, an employee is considered employed to perform services outside of this state if 75 percent or more of the services rendered are performed outside of this state. Exempts from this section a person employed by the public community/junior college on August 31, 1999, and specifies that the person remains eligible to participate in the group programs provided by this article even if the person's employment by the college is not continuous. SECTION 2. Amends Section 13(c), Article 3.50-2, V.T.I.C. (Texas Employees Uniform Group Insurance Benefits Act), to make conforming changes. SECTION 3. Specifies that, notwithstanding Section 13C, an employee hired after the effective date of this Act to perform services outside of this state is still eligible to participate in the group program if the program is provided under an insurance policy, contract, or other agreement that is in effect on the effective date of this Act and requires that the employee be eligible to participate in the program. Provides that this eligibility terminates on the date that the insurance policy, contract, or other agreement is terminated or renewed. SECTION 4.Emergency clause. Effective date: upon passage.