HBA-JEK H.B. 1704 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1704 By: Smithee Insurance 2/25/2001 Introduced BACKGROUND AND PURPOSE Many small businesses cannot afford to provide health insurance to their employees, and because of the cost are less likely to offer insurance to their employees than larger companies. Small business premiums are higher than those for large businesses, and even isolated cases of serious employee illness can force a small business to suspend health care coverage. House Bill 1704 creates a task force to study and make recommendations on how changes in the law might help provide more health benefit coverage to employees of small businesses. 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 1704 establishes the small business health benefits task force (task force) to make recommendations to the legislature with respect to improving the availability of group and individual health benefits coverage to employees of small businesses. H.B. 1704 requires the task force to examine state and federal laws and rules regarding the provision of health benefits to employees, including small employer health benefit plans and the Texas Health Insurance Risk Pool. The bill requires the task force to identify changes to law that would result in the extension of health benefits to more employees of small businesses and to recommend these changes to the Texas Department of Insurance (TDI) by September 1, 2002. H.B. 1704 requires the commissioner of insurance to report the recommendations of the task force to the governor, lieutenant governor, and speaker of the house of representatives no later than December 1, 2002. The bill sets forth requirements for the composition of the task force. The bill requires TDI to provide administrative support and services to the task force. The task force is abolished June 1, 2003. EFFECTIVE DATE The 91st day after adjournment.