HBA-SEB H.B. 3089 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3089
By: Woolley
Pensions and Investments
6/28/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, neither the Employees Retirement System of
Texas nor the Teacher Retirement System of Texas offered a group long-term
care insurance program.  H.B. 3089 authorizes the two systems to establish
such a program and to hire an administrative firm to administer the
programs.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the board of trustees of the Employees
Retirement System of Texas in SECTION 1 (Article 3.502A, Insurance Code)
and to the Teacher Retirement System of Texas in SECTION 2 (Article 3.504A,
Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 3, Insurance Code, by adding
Article 3.50-2A, as follows: 

Art. 3.50-2A.  TEXAS EMPLOYEES GROUP LONG-TERM CARE INSURANCE PROGRAM.  (a)
Defines "administering firm," "employee," and "trustee."   

(b)  Authorizes the board of trustees of the Employees Retirement System of
Texas (board), as trustee, to establish a group long-term care insurance
program for an employee or a retired employee, a spouse of an employee or a
retired employee, a parent or grandparent of an employee or retired
employee, and a parent-in-law of an employee or retired employee.   

(c)  Authorizes the board to select an administering firm to administer the
program under contract.  Requires the administering firm to bill each
program participant directly for premiums and any other program cost for
which the participant is responsible.  Prohibits the premiums and program
cost from being deducted from an employee's monthly compensation or a
retired employee's annuity.   

(d)  Provides that the  program is not part of the group coverages offered
under the Texas Employees Uniform Group Insurance Benefits Act.  Prohibits
the state from contributing any part of the premiums for coverage under
this article.  Prohibits the board from implementing the group long-term
care insurance program unless any cost or administrative burden associated
with the development of, implementation of, or communications about the
program is incidental. 

(e)  Authorizes the board to adopt rules as necessary to implement this
article, including rules specifying the coverage to be offered under the
program.   

SECTION 2.  Amends Subchapter E, Chapter 3, Insurance Code, by adding
Article 3.50-4A, as follows: 

Art. 3.50-4A.  TEXAS PUBLIC SCHOOL EMPLOYEES GROUP LONG-TERM CARE
INSURANCE PROGRAM.  Makes conforming changes with respect to the
establishment of a group long-term care insurance program for Texas public
school employees.  Authorizes the Teacher Retirement System of Texas (TRS),
as trustee, to adopt rules as necessary to implement this article,
including rules specifying the coverage to be offered under the program. 

SECTION 3.  Amends Section 4, Article 3.50-3, Insurance Code (Texas State
College and University Employees Uniform Insurance Benefits Act), by adding
Subsection (g), to authorize an institution to join with the board or TRS
to provide long-term care insurance coverage.  Provides that each
participating trustee and the governing board of the institution must
mutually agree to join together for this purpose, subject to terms that are
beneficial to all participants.  Prohibits an institution from
participating in an agreement unless any cost or administrative burden
associated with the development of, implementation of, or communications
about the long-term care coverage program is incidental.   

SECTION 4.Emergency clause.
  Effective date: upon passage.