HBA-JEK H.B. 1020 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1020 By: Junell Teacher Health Insurance, Select 2/6/2001 Introduced BACKGROUND AND PURPOSE 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. 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 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. EFFECTIVE DATE September 1, 2002, if the constitutional amendment relating to the use of income and appreciation of the permanent school fund is approved by the voters.