By: Huffman S.B. No. 1682
A BILL TO BE ENTITLED
AN ACT
relating to establishing a contingency reserve account under the
Texas Public School Employees Group Insurance Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 1575, Insurance Code, is
amended by adding Section 1575.307 to read as follows:
Sec. 1575.307. CONTINGENCY RESERVE ACCOUNT. (a) Before
the first day of each state fiscal biennium, the trustee shall
estimate for an average 60-day period during the biennium the
expenditures from the fund anticipated for the group program,
considering projected claims and administrative expenses.
(b) The trustee shall place the estimated amount in a
contingency reserve account to provide for adverse fluctuations in
claims or administrative expenses.
(c) The trustee shall include in each request for
legislative appropriations to the group program the amount the
trustee determines to be necessary to maintain the contingency
reserve account at the level required by this section.
(d) The trustee may invest and reinvest any portion of the
contingency reserve account in accordance with Sections 825.103(b)
and 825.301, Government Code, considering the functional need to
provide for adverse fluctuations in claims or administrative
expenses.
(e) The interest on, earnings of, and proceeds from the sale
of investments of assets in the contingency reserve account shall
be credited to the account.
(f) The trustee, from time to time and in amounts the
trustee considers appropriate, may transfer unused money for
administrative expenses to the contingency reserve account to be
used by the trustee only for charges, claims, and expenses under the
group program.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.