HBA-MPM H.B. 1076 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1076
By: Haggerty
Pensions & Investments
3/5/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, a community supervision and corrections department (department)
must contract with a county or a county in their jurisdiction in order to
provide health coverage and other benefits to department employees.  They
are therefore subject to that county's choice of insurance provider, and in
some cases, may pay higher premiums, as in the case of a small insurance
pool.  Allowing departments to participate in the Employees Retirement
System of Texas (ERS) as though their employees were state employees may
provide the employees with access to a better benefits package.  House Bill
1076 extends basic life, accident, and health benefits coverage under ERS
to department employees and their dependents and requires a department that
elects to participate to pay the cost of its employees' premiums. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated  to the Employees Retirement System of
Texas in SECTION 3.03 of this bill. 

ANALYSIS

House Bill 1076 amends the Insurance Code to extend life, accident, and
health benefit coverage under the Texas Employees Uniform Group Insurance
Benefits Act to employees of a community supervision and corrections
department (department) and their dependents as is provided to state
employees (Sec. 2, Art. 3.50-2). 

The bill authorizes a department to participate in the group insurance
program (program) administered by the board of trustees of the Employees
Retirement System of Texas (ERS), and limits participation to active
employees and eligible dependents.  The bill provides that each full-time
employee is automatically covered by basic coverage unless the employee
waives participation or is expelled from the program.  Each active
part-time employee is eligible to participate in the program on application
in the manner provided by the trustee unless the employee is expelled from
the program.  The bill requires a participating department to notify each
part-time employee of the employee's  eligibility for participation.  The
bill specifies that employees are not eligible to receive a state
contribution for premiums.  The employing department is responsible for
payment of the contributions that the state would make if the department
employees were state employees.  The bill requires a department to
contribute 100 percent of the cost of the basic coverage for full-time
active employees, and requires employees to pay for any additional coverage
selected by an employee.  The bill requires all contributions from the
department and active employees for basic, optional, and voluntary
coverages to be paid into the employees life, accident, and health
insurance and benefits fund to provide coverage under the program.  The
bill provides that a department that elects to participate in the program
must notify the trustee no later than December 31, 2001 (Sec. 3D, Art.
3.50-2). 

H.B. 1076 amends the Government Code to specify that department employees
are state employees for purposes of workers' compensation coverage provided
by the state and state liability for conduct of public servants. The bill
provides that a department employee is eligible to participate in the
program established under the Texas Employees Uniform Group Insurance Act
(Sec. 76.006). 

 The bill requires the Employees Retirement System of Texas (ERS) to
develop a plan during the 20012002 fiscal year for the extension of
benefits under the program to eligible employees of the departments and
authorizes ERS to employ persons to implement the plan.  The bill requires
coverage to begin with the 2002-2003 state fiscal year, but no later than
September 1, 2002 (SECTION 3.01). 

The bill requires ERS to adopt rules as necessary to implement a plan for
the extension of benefits under the program to eligible persons  no later
than December 31, 2001 (SECTION 3.03). 

EFFECTIVE DATE

September 1, 2001.  Provisions regarding modifications to the Government
Code take effect September 1, 2002.