HBA-CMT, TBM H.B. 1254 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1254
By: West, George "Buddy"
County Affairs
3/11/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, only employees and officials of political subdivisions
are covered under the uniform group insurance benefits program.  With the
rising costs of insurance, insurance benefits are an attractive perk and
often the decisive factor for individuals in choosing what company to work
for.  House Bill 1254 extends the uniform group insurance benefits program
for employees of political subdivisions to employees of affiliated service
contractors. 

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. 

ANALYSIS

House Bill 1254 amends the Local Government Code to authorize a political
subdivision to extend the same accident and health benefits coverage to
employees of affiliated service contractors as are provided for political
subdivision employees.  The bill prohibits a political subdivision from
paying any part of the contributions for coverage for employees of
affiliated service contractors or their dependents.  The bill specifies
that inclusion of the employees of affiliated service contractors in the
uniform group benefits program does not make an affiliated service
contractor a political subdivision or a division of a political
subdivision, or make an employee of an affiliated service contractor an
employee of a political subdivision or a division of a political
subdivision.   

EFFECTIVE DATE

September 1, 2001.