Texas House Bill HB964

Texas 2019 - 86th Regular

Caption

Relating to certain claims against the administrator of employment benefits for the employees of a political subdivision.

Impact

If enacted, HB964 would amend Chapter 180 of the Local Government Code by introducing a new section that specifically states that program administrators of employee benefits plans cannot invoke governmental immunity as a defense against claims. This directly impacts the relationship between local governments and their contracted service providers, making administrators more accountable for their contractual duties. As a result, this could potentially lead to more rigorous oversight of how employee benefit plans are managed by these entities.

Summary

House Bill 964 seeks to address legal claims against program administrators who manage employee benefit plans for political subdivisions. The primary focus of the bill is to clarify the liability of these administrators in connection with their duties under the contract with a political subdivision. This legislation aims to ensure that employees are able to pursue claims against program administrators without the defense of governmental immunity getting in the way, thus allowing for a more straightforward path for legal recourse when issues arise.

Contention

Debate surrounding HB964 may arise concerning the implications of lifting governmental immunity for program administrators. Proponents argue that this change promotes accountability and protects the rights of employees, while opponents could express concerns that it may lead to an increase in litigation against these administrators, potentially discouraging entities from engaging in contracts with political subdivisions. The balance between ensuring employee rights and protecting local government resources could be a central point of contention in discussions regarding this bill.