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.