HBA-MPM H.B. 1076 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1076 By: Haggerty Pensions & Investments 3/5/2001 Introduced BACKGROUND AND PURPOSE Currently, a community supervision and corrections department (department) must contract with a county or a county in their jurisdiction in order to provide health coverage and other benefits to department employees. They are therefore subject to that county's choice of insurance provider, and in some cases, may pay higher premiums, as in the case of a small insurance pool. Allowing departments to participate in the Employees Retirement System of Texas (ERS) as though their employees were state employees may provide the employees with access to a better benefits package. House Bill 1076 extends basic life, accident, and health benefits coverage under ERS to department employees and their dependents and requires a department that elects to participate to pay the cost of its employees' premiums. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Employees Retirement System of Texas in SECTION 3.03 of this bill. ANALYSIS House Bill 1076 amends the Insurance Code to extend life, accident, and health benefit coverage under the Texas Employees Uniform Group Insurance Benefits Act to employees of a community supervision and corrections department (department) and their dependents as is provided to state employees (Sec. 2, Art. 3.50-2). The bill authorizes a department to participate in the group insurance program (program) administered by the board of trustees of the Employees Retirement System of Texas (ERS), and limits participation to active employees and eligible dependents. The bill provides that each full-time employee is automatically covered by basic coverage unless the employee waives participation or is expelled from the program. Each active part-time employee is eligible to participate in the program on application in the manner provided by the trustee unless the employee is expelled from the program. The bill requires a participating department to notify each part-time employee of the employee's eligibility for participation. The bill specifies that employees are not eligible to receive a state contribution for premiums. The employing department is responsible for payment of the contributions that the state would make if the department employees were state employees. The bill requires a department to contribute 100 percent of the cost of the basic coverage for full-time active employees, and requires employees to pay for any additional coverage selected by an employee. The bill requires all contributions from the department and active employees for basic, optional, and voluntary coverages to be paid into the employees life, accident, and health insurance and benefits fund to provide coverage under the program. The bill provides that a department that elects to participate in the program must notify the trustee no later than December 31, 2001 (Sec. 3D, Art. 3.50-2). H.B. 1076 amends the Government Code to specify that department employees are state employees for purposes of workers' compensation coverage provided by the state and state liability for conduct of public servants. The bill provides that a department employee is eligible to participate in the program established under the Texas Employees Uniform Group Insurance Act (Sec. 76.006). The bill requires the Employees Retirement System of Texas (ERS) to develop a plan during the 20012002 fiscal year for the extension of benefits under the program to eligible employees of the departments and authorizes ERS to employ persons to implement the plan. The bill requires coverage to begin with the 2002-2003 state fiscal year, but no later than September 1, 2002 (SECTION 3.01). The bill requires ERS to adopt rules as necessary to implement a plan for the extension of benefits under the program to eligible persons no later than December 31, 2001 (SECTION 3.03). EFFECTIVE DATE September 1, 2001. Provisions regarding modifications to the Government Code take effect September 1, 2002.