HBA-JEK H.J.R. 106 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 106
By: Gallego
Teacher Health Insurance, Select
3/23/2001
Introduced



BACKGROUND AND PURPOSE 

School districts, especially rural districts, face an increasingly
difficult task of providing insurance to teachers and employees.  The
health insurance costs of many rural school districts have increased to the
extent that funds for pay raises have instead been applied to increased
premium costs.  Better health insurance benefits would help Texas attract
and retain qualified teachers.  As proposed, House Joint Resolution 106
requires the submission to the voters of a constitutional amendment
relating to the provision of group health benefits for active and retired
public school employees, distributions from the permanent school fund, and
the establishment of the school employees primary health coverage fund. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Joint Resolution 106 amends the Texas Constitution to authorize the
legislature to provide for counties that provide public primary and
secondary schools and independent school districts to levy an additional ad
valorem tax at a rate determined by the legislature, the county, or the
district to pay for group health benefits for active and retired public
school employees.  The resolution prohibits an ad valorem tax from being
levied unless approved by a majority of the voters of the county or school
district voting at an election held for that purpose. 

H.J.R. 106 modifies the permanent school fund (PSF) to consist of all land
appropriated for public schools by the Texas Constitution or other state
laws as well as other properties and funds belonging to the PSF. The
resolution allocates a portion of the PSF distributions of each fiscal year
to the available school fund (ASF), along with the taxes authorized by the
constitution or general law to be part of the ASF. 

The resolution establishes the school employees primary health coverage
fund (health coverage fund) to be used only to provide group health
benefits for active and retired public school employees.  The health
coverage fund consists of school district ad valorem taxes levied as
provided by this resolution, a portion of the distributions each fiscal
year from the PSF, and other funds appropriated or dedicated for the
purpose of providing health benefits.   

H.J.R. 106 provides that the total amount distributed in each fiscal year
from the PSF to the ASF and the health coverage fund must be at least three
percent but not more than seven percent of the average fair market value of
the PSF at the end of each of the preceding 12 quarters, in accordance with
the rate adopted by a vote of two-thirds of the total membership of the
State Board of Education (board), or five percent of the average fair
market value of the PSF at the end of each of the preceding 12 quarters if
the board does not adopt a rate.  The bill provides that the total
distribution from the PSF to the ASF and the health coverage fund for the
state fiscal years beginning September 1, 2001 and September 1, 2002 must
be five percent of the market value of the PSF on the first day of the
appropriate fiscal year. 

 The resolution requires the General Appropriations Act to determine for
each state fiscal year which portion of the distribution from the PSF will
be placed in the ASF and which portion will go to the health coverage fund.
The resolution prohibits the portions for a state fiscal year from being
changed after the beginning of the fiscal year, and provides that the
portion placed in the ASF for a state fiscal year must be at least 50
percent but not more than 75 percent of the total distribution from the PSF
for that fiscal year.   

The resolution removes the provision that authorizes the legislature to
provide for the use of  income from the PSF to guarantee bonds issued by
school districts or the state for the purpose of making loans to or
purchasing school district bonds for the acquisition, construction, or
improvement of instructional facilities. 

FOR ELECTION

The proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001.