Bill Text: TX SB1781 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to health coverage for school district and open-enrollment charter school employees under interlocal contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2023-05-06 - Referred to Public Education [SB1781 Detail]
Download: Texas-2023-SB1781-Introduced.html
Bill Title: Relating to health coverage for school district and open-enrollment charter school employees under interlocal contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2023-05-06 - Referred to Public Education [SB1781 Detail]
Download: Texas-2023-SB1781-Introduced.html
By: Hughes | S.B. No. 1781 | |
|
||
|
||
relating to health coverage for school district and open-enrollment | ||
charter school employees under interlocal contracts or the uniform | ||
group coverage program for active school employees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 791, Government Code, is amended by | ||
adding Subchapter D to read as follows: | ||
SUBCHAPTER D. INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION | ||
AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE | ||
Sec. 791.051. DEFINITIONS. In this subchapter: | ||
(1) "Cooperative" means a cooperative established | ||
under this subchapter by an interlocal contract for group health | ||
coverage. | ||
(2) "Local education agency" means: | ||
(A) a school district; or | ||
(B) an open-enrollment charter school as defined | ||
by Section 5.001, Education Code. | ||
(3) "Participating local education agency" means, | ||
with respect to a cooperative, a local education agency that | ||
participates in the cooperative. | ||
Sec. 791.052. COMPLIANCE WITH SUBCHAPTER REQUIRED. A local | ||
education agency shall comply with this subchapter when procuring | ||
and administering employee group health coverage with another local | ||
education agency. | ||
Sec. 791.053. INTERLOCAL CONTRACT FOR GROUP HEALTH | ||
INSURANCE COVERAGE. (a) The governing body of a local education | ||
agency may by resolution enter into an interlocal contract and | ||
cooperate with one or more other local education agencies to | ||
establish a cooperative for the purposes of procuring group health | ||
insurance coverage under this subchapter. | ||
(b) The governing body of a local education agency may renew | ||
an interlocal contract entered into under Subsection (a). | ||
(c) This subchapter does not affect the ability of local | ||
education agencies to provide group health coverage through a risk | ||
pool established in accordance with Chapter 172, Local Government | ||
Code. | ||
Sec. 791.054. COOPERATIVE. (a) A cooperative is a legal | ||
entity that may procure employee group health insurance coverage | ||
for each participating local education agency. | ||
(b) Participating local education agencies may contract for | ||
the supervision and administration of the cooperative in accordance | ||
with Section 791.013. | ||
(c) Except as provided by this subsection, a cooperative is | ||
governed by a board of directors composed of the chief executive | ||
officers of each participating local education agency or the | ||
officers' designees. If the cooperative is composed of more than | ||
seven local education agencies, the cooperative shall appoint at | ||
least seven directors to serve on the cooperative's board of | ||
directors. | ||
Sec. 791.055. PROCUREMENT. (a) A cooperative must procure | ||
a contract for employee group health coverage under this subchapter | ||
through a request for proposals to potential vendors advertised in | ||
a manner consistent with Section 44.031(g), Education Code, in at | ||
least one county in which a participating local education agency's | ||
central office is located. | ||
(b) The board of directors of a cooperative shall select the | ||
vendor that provides the best value to participating local | ||
education agencies considering the factors described by Section | ||
44.031(b), Education Code. | ||
(c) A cooperative that enters into a contract in accordance | ||
with this section satisfies a competitive bidding requirement | ||
applicable to the procurement of group health coverage under other | ||
law. | ||
Sec. 791.056. OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A | ||
cooperative shall offer one or more group health insurance plans | ||
procured under Section 791.055 to: | ||
(1) employees of participating local education | ||
agencies; and | ||
(2) at the discretion of the cooperative's board of | ||
directors, dependents of employees described by Subdivision (1). | ||
(b) The board of directors of a cooperative may determine a | ||
participating local education agency's payment of all, part, or | ||
none of the premiums for employees or dependents for a plan offered | ||
under Subsection (a). | ||
SECTION 2. Section 1579.155(a) and (c), Insurance Code, are | ||
amended to read as follows: | ||
(a) A [ |
||
may elect to discontinue the entity's participation in the program | ||
by providing written notice to the trustee not later than May | ||
[ |
||
in which the election will be effective. | ||
(c) An [ |
||
to participate in the program shall provide written notice to the | ||
trustee not later than May 31 [ |
||
the first day of the plan year in which the election will be | ||
effective. The entity may not elect to discontinue the entity's | ||
participation until the fifth anniversary of the effective date of | ||
the entity's election to participate. | ||
SECTION 3. Section 1579.155, Insurance Code, as amended by | ||
this Act, applies only to group coverage provided for a plan year | ||
beginning on or after September 1, 2024. A plan year that begins | ||
before September 1, 2024, is governed by the law as it existed | ||
immediately before the effective date of this Act, and that law is | ||
continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2023. |