Texas 2009 - 81st Regular

Texas House Bill HB1416 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R8358 PB-D
2	2	By: Leibowitz H.B. No. 1416
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a health coverage or compensation supplementation
8	8	program for active school employees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle H, Title 8, Insurance Code, is amended
11	11	by adding Chapter 1580 to read as follows:
12	12	CHAPTER 1580. ACTIVE EMPLOYEE HEALTH COVERAGE
13	13	OR COMPENSATION SUPPLEMENTATION
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 1580.001. DEFINITIONS. In this chapter:
16	16	(1) "Cafeteria plan" means a plan as defined and
17	17	authorized by Section 125, Internal Revenue Code of 1986.
18	18	(2) "Employee" means a participating member of the
19	19	Teacher Retirement System of Texas who:
20	20	(A) is employed by a school district, other
21	21	educational district whose employees are members of the Teacher
22	22	Retirement System of Texas, participating charter school, or
23	23	regional education service center; and
24	24	(B) is not a retiree covered under the program
25	25	established under Chapter 1575.
26	26	(3) "Participating charter school" means an
27	27	open-enrollment charter school established under Subchapter D,
28	28	Chapter 12, Education Code, that participates in the program
29	29	established under Chapter 1579.
30	30	(4) "Regional education service center" means a
31	31	regional education service center established under Chapter 8,
32	32	Education Code.
33	33	(5) "Trustee" means the Teacher Retirement System of
34	34	Texas.
35	35	Sec. 1580.002. AUTHORITY TO ADOPT RULES; OTHER AUTHORITY.
36	36	(a) The trustee may adopt rules to implement this chapter.
37	37	(b) The trustee may enter into interagency contracts with
38	38	any agency of this state for the purpose of assistance in
39	39	implementing this chapter.
40	40	[Sections 1580.003-1580.050 reserved for expansion]
41	41	SUBCHAPTER B. DISTRIBUTION OF STATE FUNDS BY TRUSTEE
42	42	Sec. 1580.051. DISTRIBUTION BY TRUSTEE. Each year, the
43	43	trustee shall deliver to each school district, including a school
44	44	district that is ineligible for state aid under Chapter 42,
45	45	Education Code, each other educational district that is a member of
46	46	the Teacher Retirement System of Texas, each participating charter
47	47	school, and each regional education service center state funds in
48	48	an amount, as determined by the trustee, equal to the product of the
49	49	number of active employees employed by the district, school, or
50	50	service center multiplied by $1,000 or a greater amount as provided
51	51	by the General Appropriations Act for purposes of this chapter.
52	52	Sec. 1580.052. EQUAL INSTALLMENTS. The trustee shall
53	53	distribute funds under this chapter in equal monthly installments.
54	54	Sec. 1580.053. FUNDS HELD IN TRUST. All funds received by a
55	55	school district, other educational district, participating charter
56	56	school, or regional education service center under this chapter are
57	57	held in trust for the benefit of the active employees on whose
58	58	behalf the district, school, or service center received the funds.
59	59	Sec. 1580.054. RECOVERY OF DISTRIBUTIONS. The trustee is
60	60	entitled to recover from a school district, other educational
61	61	district, participating charter school, or regional education
62	62	service center any amount distributed under this chapter to which
63	63	the district, school, or service center was not entitled.
64	64	Sec. 1580.055. DETERMINATION OF TRUSTEE FINAL. A
65	65	determination by the trustee under this subchapter is final and may
66	66	not be appealed.
67	67	[Sections 1580.056-1580.100 reserved for expansion]
68	68	SUBCHAPTER C. EMPLOYEE ELECTION
69	69	Sec. 1580.101. EMPLOYEE COVERED BY CAFETERIA PLAN. (a) If
70	70	an active employee is covered by a cafeteria plan of a school
71	71	district, other educational district, participating charter
72	72	school, or regional education service center, the state
73	73	contribution under this chapter shall be deposited in the cafeteria
74	74	plan, and the employee may elect among the options provided by the
75	75	cafeteria plan.
76	76	(b) A cafeteria plan receiving state contributions under
77	77	this chapter may include a medical savings account option and must
78	78	include, at a minimum, the following options:
79	79	(1) a health care reimbursement account;
80	80	(2) a benefit or coverage other than that provided
81	81	under Chapter 1579, or any employee coverage or dependent coverage
82	82	available under Chapter 1579 but not otherwise fully funded by the
83	83	state or the employer contributions, any of which must be a
84	84	"qualified benefit" under Section 125, Internal Revenue Code of
85	85	1986;
86	86	(3) an option for the employee to receive the state
87	87	contribution as supplemental compensation; or
88	88	(4) an option to divide the state contribution among
89	89	two or more of the other options provided under this subsection.
90	90	Sec. 1580.102. EMPLOYEE NOT COVERED BY CAFETERIA PLAN. If
91	91	an active employee is not covered by a cafeteria plan of a school
92	92	district, other educational district, participating charter
93	93	school, or regional education service center, the state
94	94	contribution under this chapter shall be paid to the active
95	95	employee as supplemental compensation.
96	96	Sec. 1580.103. SUPPLEMENTAL COMPENSATION. Supplemental
97	97	compensation under this subchapter must be in addition to the rate
98	98	of compensation that:
99	99	(1) the school district, other educational district,
100	100	participating charter school, or regional education service center
101	101	paid the employee in the preceding school year; or
102	102	(2) the district, school, or service center would have
103	103	paid the employee in the preceding school year if the employee had
104	104	been employed by the district, school, or service center in the same
105	105	capacity in the preceding school year.
106	106	Sec. 1580.104. TIME FOR ELECTION. For each state fiscal
107	107	year, an election under this subchapter must be made before the
108	108	later of:
109	109	(1) August 1 of the preceding state fiscal year; or
110	110	(2) the 31st day after the date the employee is hired.
111	111	Sec. 1580.105. WRITTEN EXPLANATION; ELECTION FORM. (a)
112	112	The trustee shall prescribe and distribute to each school district,
113	113	other educational district, participating charter school, and
114	114	regional education service center:
115	115	(1) a model explanation written in English and Spanish
116	116	of the options active employees may elect under this section and the
117	117	effect of electing each option; and
118	118	(2) an election form to be completed by active
119	119	employees.
120	120	(b) Each state fiscal year, a school district, other
121	121	educational district, participating charter school, or regional
122	122	education service center shall prepare and distribute to each
123	123	active employee a written explanation in English and Spanish, as
124	124	appropriate, of the options the employee may elect under this
125	125	section. The explanation must be based on the model explanation
126	126	prepared by the trustee under Subsection (a) and must reflect all
127	127	available health coverage options available to the employee. The
128	128	explanation must be distributed to an employee before the later of:
129	129	(1) July 1 of the preceding state fiscal year; or
130	130	(2) the fifth day after the date the employee is hired.
131	131	(c) The written explanation under Subsection (b) must be
132	132	accompanied by a copy of the election form prescribed under
133	133	Subsection (a)(2).
134	134	Sec. 1580.106. RETURN OF UNENCUMBERED FUNDS. Any
135	135	unencumbered funds that are returned to the school district from
136	136	accounts established under Section 1580.101 may be used only to
137	137	provide employee compensation, benefits, or both.
138	138	[Sections 1580.107-1580.150 reserved for expansion]
139	139	SUBCHAPTER D. MEDICAL SAVINGS ACCOUNT
140	140	Sec. 1580.151. DEFINITION. In this subchapter, "qualified
141	141	health care expense" means an expense paid by an employee for
142	142	medical care, as defined by Section 213(d), Internal Revenue Code
143	143	of 1986, for the employee or the employee's dependents, as defined
144	144	by Section 152, Internal Revenue Code of 1986.
145	145	Sec. 1580.152. RULES. The trustee, by rule, shall specify
146	146	the requirements for a medical savings account established under
147	147	this chapter.
148	148	Sec. 1580.153. QUALIFICATION OF ACCOUNT. (a) The trustee
149	149	shall request in writing a ruling or opinion from the Internal
150	150	Revenue Service as to whether the medical savings accounts
151	151	established under this chapter and the state rules governing those
152	152	accounts qualify the accounts for appropriate federal tax
153	153	exemptions.
154	154	(b) Based on the response of the Internal Revenue Service
155	155	under Subsection (a), the trustee shall:
156	156	(1) modify the rules, plans, and procedures adopted
157	157	under this subchapter as necessary to ensure the qualification of
158	158	those accounts for appropriate federal tax exemptions; and
159	159	(2) certify the information regarding federal tax
160	160	qualifications to the comptroller.
161	161	Sec. 1580.154. EMPLOYEE ELECTION. An employee who elects
162	162	under Section 1580.101 to have state funds distributed under this
163	163	chapter placed in a medical savings account may use the money in
164	164	that account only for a qualified health care expense.
165	165	SECTION 2. Subchapter D, Chapter 22, Education Code, is
166	166	repealed.
167	167	SECTION 3. The functions and duties of the Texas Education
168	168	Agency with respect to the compensation supplementation program
169	169	established under Subchapter D, Chapter 22, Education Code, as that
170	170	subchapter existed before repeal under this Act, and any
171	171	appropriation relating to that program, are transferred to the
172	172	Teacher Retirement System of Texas. A reference in law to the Texas
173	173	Education Agency with respect to the compensation supplementation
174	174	program means the Teacher Retirement System of Texas.
175	175	SECTION 4. The changes in law made by this Act apply
176	176	beginning with the 2009-2010 school year.
177	177	SECTION 5. This Act takes effect immediately if it receives
178	178	a vote of two-thirds of all the members elected to each house, as
179	179	provided by Section 39, Article III, Texas Constitution. If this
180	180	Act does not receive the vote necessary for immediate effect, this
181	181	Act takes effect September 1, 2009.