| 1 | 1 | | By: Hughes S.B. No. 1781 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to health coverage for school district and open-enrollment |
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| 7 | 7 | | charter school employees under interlocal contracts. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 791, Government Code, is amended by |
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| 10 | 10 | | adding Subchapter D to read as follows: |
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| 11 | 11 | | SUBCHAPTER D. INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION |
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| 12 | 12 | | AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE |
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| 13 | 13 | | Sec. 791.051. DEFINITIONS. In this subchapter: |
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| 14 | 14 | | (1) "Cooperative" means a cooperative established |
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| 15 | 15 | | under this subchapter by an interlocal contract for group health |
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| 16 | 16 | | coverage. |
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| 17 | 17 | | (2) "Local education agency" means: |
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| 18 | 18 | | (A) a school district; or |
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| 19 | 19 | | (B) an open-enrollment charter school as defined |
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| 20 | 20 | | by Section 5.001, Education Code. |
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| 21 | 21 | | (3) "Participating local education agency" means, |
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| 22 | 22 | | with respect to a cooperative, a local education agency that |
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| 23 | 23 | | participates in the cooperative. |
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| 24 | 24 | | Sec. 791.052. COMPLIANCE WITH SUBCHAPTER REQUIRED. A local |
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| 25 | 25 | | education agency shall comply with this subchapter when procuring |
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| 26 | 26 | | and administering employee group health coverage with another local |
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| 27 | 27 | | education agency. |
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| 28 | 28 | | Sec. 791.053. INTERLOCAL CONTRACT FOR GROUP HEALTH |
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| 29 | 29 | | INSURANCE COVERAGE. (a) The governing body of a local education |
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| 30 | 30 | | agency may by resolution enter into an interlocal contract and |
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| 31 | 31 | | cooperate with one or more other local education agencies to |
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| 32 | 32 | | establish a cooperative for the purposes of procuring group health |
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| 33 | 33 | | insurance coverage under this subchapter. |
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| 34 | 34 | | (b) The governing body of a local education agency may renew |
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| 35 | 35 | | an interlocal contract entered into under Subsection (a). |
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| 36 | 36 | | (c) This subchapter does not affect the ability of local |
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| 37 | 37 | | education agencies to provide group health coverage through a risk |
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| 38 | 38 | | pool established in accordance with Chapter 172, Local Government |
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| 39 | 39 | | Code. |
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| 40 | 40 | | Sec. 791.054. COOPERATIVE. (a) A cooperative is a legal |
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| 41 | 41 | | entity that may procure employee group health insurance coverage |
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| 42 | 42 | | for each participating local education agency. |
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| 43 | 43 | | (b) Participating local education agencies may contract for |
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| 44 | 44 | | the supervision and administration of the cooperative in accordance |
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| 45 | 45 | | with Section 791.013. |
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| 46 | 46 | | (c) Except as provided by this subsection, a cooperative is |
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| 47 | 47 | | governed by a board of directors composed of the chief executive |
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| 48 | 48 | | officers of each participating local education agency or the |
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| 49 | 49 | | officers' designees. If the cooperative is composed of more than |
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| 50 | 50 | | seven local education agencies, the cooperative shall appoint at |
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| 51 | 51 | | least seven directors to serve on the cooperative's board of |
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| 52 | 52 | | directors. |
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| 53 | 53 | | Sec. 791.055. PROCUREMENT. (a) A cooperative must procure |
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| 54 | 54 | | a contract for employee group health coverage under this subchapter |
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| 55 | 55 | | through a request for proposals to potential vendors advertised in |
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| 56 | 56 | | a manner consistent with Section 44.031(g), Education Code, in at |
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| 57 | 57 | | least one county in which a participating local education agency's |
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| 58 | 58 | | central office is located. |
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| 59 | 59 | | (b) The board of directors of a cooperative shall select the |
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| 60 | 60 | | vendor that provides the best value to participating local |
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| 61 | 61 | | education agencies considering the factors described by Section |
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| 62 | 62 | | 44.031(b), Education Code. |
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| 63 | 63 | | (c) A cooperative that enters into a contract in accordance |
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| 64 | 64 | | with this section satisfies a competitive bidding requirement |
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| 65 | 65 | | applicable to the procurement of group health coverage under other |
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| 66 | 66 | | law. |
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| 67 | 67 | | Sec. 791.056. OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A |
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| 68 | 68 | | cooperative shall offer one or more group health insurance plans |
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| 69 | 69 | | procured under Section 791.055 to employees of participating local |
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| 70 | 70 | | education agencies and dependents of those employees. |
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| 71 | 71 | | (b) The board of directors of a cooperative may determine a |
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| 72 | 72 | | participating local education agency's payment of all or part of |
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| 73 | 73 | | the premiums for employees or dependents for a plan offered under |
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| 74 | 74 | | Subsection (a). |
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| 75 | 75 | | (c) A participating local education agency's payment: |
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| 76 | 76 | | (1) is subject to the requirements described by |
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| 77 | 77 | | Section 1581.052, Insurance Code; and |
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| 78 | 78 | | (2) shall include the contributions by the state |
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| 79 | 79 | | described by Subchapter F, Chapter 1579, Insurance Code. |
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| 80 | 80 | | SECTION 2. This Act takes effect September 1, 2023. |
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