school districts can team up to buy health insurance

The text as introduced · 593 words

89R5629 SCL-F

By: Hughes
S.B. No. 811

A BILL TO BE ENTITLED

AN ACT

relating to health coverage for school district and open-enrollment

charter school employees under interlocal contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 791, Government Code, is amended by

adding Subchapter D to read as follows:

SUBCHAPTER D. INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION

AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE

Sec. 791.051. DEFINITIONS. In this subchapter:

(1) "Cooperative" means a cooperative established

under this subchapter by an interlocal contract for group health

coverage.

(2) "Local education agency" means:

(A) a school district; or

(B) an open-enrollment charter school as defined

by Section 5.001, Education Code.

(3) "Participating local education agency" means,

with respect to a cooperative, a local education agency that

participates in the cooperative.

Sec. 791.052. COMPLIANCE WITH SUBCHAPTER REQUIRED. A local

education agency shall comply with this subchapter when procuring

and administering employee group health coverage with another local

education agency.

Sec. 791.053. INTERLOCAL CONTRACT FOR GROUP HEALTH

INSURANCE COVERAGE. (a) The governing body of a local education

agency may by resolution enter into an interlocal contract and

cooperate with one or more other local education agencies to

establish a cooperative for the purposes of procuring group health

insurance coverage under this subchapter.

(b) The governing body of a local education agency may renew

an interlocal contract entered into under Subsection (a).

(c) This subchapter does not affect the ability of local

education agencies to provide group health coverage through a risk

pool established in accordance with Chapter 172, Local Government

Code.

Sec. 791.054. COOPERATIVE. (a) A cooperative is a legal

entity that may procure employee group health insurance coverage

for each participating local education agency.

(b) Participating local education agencies may contract for

the supervision and administration of the cooperative in accordance

with Section 791.013.

(c) Except as provided by this subsection, a cooperative is

governed by a board of directors composed of the chief executive

officers of each participating local education agency or the

officers' designees. If the cooperative is composed of more than

seven local education agencies, the cooperative shall appoint at

least seven directors to serve on the cooperative's board of

directors.

Sec. 791.055. PROCUREMENT. (a) A cooperative must procure

a contract for employee group health coverage under this subchapter

through a request for proposals to potential vendors advertised in

a manner consistent with Section 44.031(g), Education Code, in at

least one county in which a participating local education agency's

central office is located.

(b) The board of directors of a cooperative shall select the

vendor that provides the best value to participating local

education agencies considering the factors described by Section

44.031(b), Education Code.

(c) A cooperative that enters into a contract in accordance

with this section satisfies a competitive bidding requirement

applicable to the procurement of group health coverage under other

law.

Sec. 791.056. OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A

cooperative shall offer one or more group health insurance plans

procured under Section 791.055 to employees of participating local

education agencies and dependents of those employees.

(b) The board of directors of a cooperative may determine a

participating local education agency's payment of all or part of

the premiums for employees or dependents for a plan offered under

Subsection (a).

(c) A participating local education agency's payment:

(1) is subject to the requirements described by

Section 1581.052, Insurance Code; and

(2) shall include the contributions by the state

described by Subchapter F, Chapter 1579, Insurance Code.

SECTION 2. This Act takes effect September 1, 2025.