Office of House Bill AnalysisH.B. 1020
By: Junell
Teacher Health Insurance, Select


Since 1991, school districts have been required to provide health insurance
that is comparable to the Texas Employees Uniform Group Insurance Program.
Health insurance costs for public school employees vary from district to
district.  School districts which pay little to none of the coverage costs
may find it more difficult to attract and retain qualified employees.
House Bill 1020 creates a fund to pay for health insurance for all public
school employees and retirees contingent on the passage of a constitutional
amendment allowing money for this fund to be derived from the permanent
school fund and other appropriations made by the legislature. 


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. 


House Bill 1020 amends the Education Code to create the public school
employee health insurance fund (insurance fund), consisting of
distributions made from the permanent school fund and appropriations made
by the legislature for the purpose of providing and administering a group
health insurance program for active and retired public school employees.
The bill places the insurance fund under the management of the board of
trustees of the Teacher Retirement System of Texas (TRS), and specifies
that TRS may only use the money in the fund to provide and administer group
health insurance under the Texas School Employees Uniform Group Health
Insurance Benefits Act. (This Act is contained in other proposed
legislation but has not yet been enacted.) 

H.B. 1020 requires the comptroller to transfer, on the first working day of
each month in a state fiscal year, an amount equal to one-twelfth of the
annual distribution from the permanent school fund to the available school
fund and an amount equal to one-twelfth of the annual distribution from the
permanent school fund to the insurance fund in that fiscal year.  The bill
repeals provisions governing the purchasing of a fixedincome security from
out of the permanent school fund. 


September 1, 2002, if the constitutional amendment relating to the use of
income and appreciation of the permanent school fund is approved by the