TITLE 34.PUBLIC FINANCE

Part 3. TEACHER RETIREMENT SYSTEM OF TEXAS

Chapter 41. INSURANCE PROGRAMS

Subchapter A. HEALTH CARE BENEFITS

34 TAC §41.12

The Teacher Retirement System of Texas (TRS) proposes an amendment to §41.12, concerning Certification of Insurance Coverage.

The purpose of the amendment is to make the rule conform to Education Code §22.004, which was revised by the 76th Legislature in Senate Bill 1128.

The amendment to §41.12 changes the deadlines, in accordance with the revised law, for school districts to file their reports relating to compliance with Education Code §22.004(c) to the TRS executive director. In addition, the amendment reflects the revised deadline for the TRS executive director to submit a status report to the legislature regarding the comparability of insurance coverage as described in Education Code §22.004.

Ronnie Jung, Chief Financial Officer, has determined that for each year of the first five-year period the rule is in effect there will be no fiscal implications to state or local governments as a result of enforcing or administering the rule.

Mr. Jung has also determined that for each year of the first five years the rule is in effect the public benefit anticipated will be that interested parties will have additional notice of the new deadlines. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701.

The amendment is proposed under the Education Code, §22.004, which requires the Board of Trustees of the Teacher Retirement System to adopt rules to determine whether a school district's group health coverage is comparable to the basic health coverage specified by that statute, and under Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the transaction of business of the Board.

No other statute, article or code is affected by the proposed amendment.

§41.12. Certification of Insurance Coverage.

(a) - (c)

(No change.)

(d)

Each public school district shall report, using a uniform reporting form or method of reporting prescribed by the Teacher Retirement System (TRS), the district's compliance with the Education Code, §22.004(c), to the executive director of TRS by March [ November ] 1 of each even-numbered school year. The report must reflect the district group health coverage plan in effect during the current plan year [ on November 1 ] and must include all information required by statute and any additional information requested by TRS staff to complete the certification. A district's failure to submit required information to TRS on or before March [ November ] 1 of each even-numbered year may result in a TRS report to the Legislative Budget Board and the legislature reflecting the district's non-compliance, as described in subsection (e) of this section.

(e)

The executive director of the Teacher Retirement System (TRS) shall certify whether a district's coverage is comparable to the basic health coverage provided under the Texas Employees Uniform Group Insurance Benefits Act (Insurance Code, Article 3.50-2). If the executive director of TRS determines that the group health coverage offered by a district is not comparable, the executive director shall report that information to the district and to the Legislative Budget Board. The executive director shall submit a report to the legislature not later than September [ January ] 1 of each even-numbered [ odd-numbered ] year describing the status of each district's group health coverage program based on the information provided by the district and the certification described herein.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on April 20, 2000.

TRD-200002841

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: June 23, 2000

For further information, please call: (512) 391-2115