CHAPTER 1581. EMPLOYER EXPENDITURES FOR SCHOOL EMPLOYEE HEALTH COVERAGE PLANS

INSURANCE CODE

TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES

SUBTITLE H. HEALTH BENEFITS AND OTHER COVERAGES FOR GOVERNMENTAL

EMPLOYEES

CHAPTER 1581. EMPLOYER EXPENDITURES FOR SCHOOL EMPLOYEE HEALTH

COVERAGE PLANS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1581.001. DEFINITIONS. In this chapter:

(1) "Participating employee" means an employee of a school

district, other educational district whose employees are members

of the Teacher Retirement System of Texas, participating charter

school, or regional education service center who participates in

a group health coverage plan provided by or through the district,

school, or service center.

(2) "Participating charter school" means an open-enrollment

charter school established under Subchapter D, Chapter 12,

Education Code, that participates in the uniform group coverage

program established under Chapter 1579.

(3) "Regional education service center" means a regional

education service center established under Chapter 8, Education

Code.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.471(a), eff.

Sept. 1, 2003.

SUBCHAPTER B. MAINTENANCE OF EFFORT; MINIMUM EFFORT

Sec. 1581.051. MAINTENANCE OF EFFORT FOR 2000-2001 SCHOOL YEAR.

(a) Subject to Sections 1581.052 and 1581.053, and except as

provided by Section 1581.054, a school district, other

educational district whose employees are members of the Teacher

Retirement System of Texas, participating charter school, or

regional education service center that, for the 2000-2001 school

year, paid amounts to share with employees the cost of coverage

under a group health coverage plan shall, for each fiscal year,

use to provide health coverage an amount for each participating

employee at least equal to the amount computed as provided by

this section.

(b) The school district, other educational district,

participating charter school, or regional education service

center shall divide the amount that the district, school, or

service center paid during the 2000-2001 school year for the

prior group health coverage plan by the total number of full-time

employees of the district, school, or service center in the

2000-2001 school year and multiply the result by the number of

full-time employees of the district, school, or service center in

the fiscal year for which the computation is made. If, for the

2000-2001 school year, a school district, other educational

district, participating charter school, or regional education

service center provided group health coverage to its employees

through a self-funded insurance plan, the amount the district,

school, or service center paid during that school year for the

plan includes only the amount of regular contributions made by

the district, school, or service center to the plan.

(c) Amounts used as required by this section shall be deposited,

as applicable, in a fund described by Section 1581.052(b).

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.471(a), eff.

Sept. 1, 2003.

Sec. 1581.052. REQUIRED MINIMUM EFFORT. (a) A school district,

other educational district, participating charter school, or

regional education service center shall, for each fiscal year,

use to provide health coverage an amount equal to the number of

participating employees of the district, school, or service

center multiplied by $1,800.

(b) Amounts used as required by this section shall be deposited,

as applicable, in:

(1) the Texas school employees uniform group coverage trust fund

established under Subchapter G, Chapter 1579; or

(2) another fund established for the payment of employee health

coverage that meets requirements for those funds prescribed by

the Texas Education Agency.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.471(a), eff.

Sept. 1, 2003.

Sec. 1581.053. USE OF STATE FUNDS. (a) To comply with Section

1581.052, a school district or participating charter school may

use state funds received under Chapter 42, Education Code, other

than funds that may be used under that chapter only for a

specific purpose.

(b) Notwithstanding Subsection (a), amounts a district or school

is required to use to pay contributions under a group health

coverage plan for district or school employees under Section

42.260, Education Code, other than amounts described by Section

42.260(c)(2)(B), are not used in computing whether the district

or school complies with Section 1581.052.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.471(a), eff.

Sept. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1328, Sec. 84, eff. September 1, 2009.

Sec. 1581.054. EXCESS OF MAINTENANCE OF EFFORT. If the amount a

school district, other educational district, or participating

charter school is required to use to provide health coverage

under Section 1581.051 for a fiscal year exceeds the amount

necessary for the district or school to comply with Section

1581.052(a) for that year, the district or school may use the

excess only to provide employee compensation at a rate greater

than the rate of compensation that the district or school paid an

employee in the 2000-2001 school year, benefits, or both.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.471(a), eff.

Sept. 1, 2003.