2005 Texas Insurance Code CHAPTER 1581. EMPLOYER EXPENDITURES FOR SCHOOL EMPLOYEE HEALTH COVERAGE PLANS

INSURANCE CODE

CHAPTER 1581. EMPLOYER EXPENDITURES FOR SCHOOL EMPLOYEE HEALTH 
COVERAGE PLANS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 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, § 10A.471(a), eff. Sept. 
1, 2003.

SUBCHAPTER B. MAINTENANCE OF EFFORT;  MINIMUM EFFORT


	§ 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, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 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, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 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 
42.2514 or 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, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 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, § 10A.471(a), eff. Sept. 
1, 2003.

SUBCHAPTER C. STATE ASSISTANCE FOR MEETING MINIMUM EFFORT


	§ 1581.101. STATE FISCAL YEARS AFTER AUGUST 31, 
2001.  For any state fiscal year beginning with the fiscal year 
ending August 31, 2003, except as provided by Section 1581.102, a 
school district that imposes maintenance and operations taxes at 
the maximum rate permitted under Section 45.003(d), Education Code, 
is entitled to state funds in an amount equal to the difference, if 
any, between:
		(1)  an amount equal to the number of participating 
employees of the district multiplied by $1,800;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district is required to use to 
provide health coverage under Section 1581.051 for that fiscal 
year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.1015. CERTAIN FISCAL YEARS.                                          

Text of section effective until September 1, 2008
	(a)  For the state fiscal year beginning September 1, 2002, a 
school district or participating charter school is entitled to 
state funds in an amount equal to the difference, if any, between:
		(1)  an amount equal to the number of participating 
employees of the district or school multiplied by $1,800;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district or school is required 
to use to provide health coverage under Section 1581.051 for that 
fiscal year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).
	(b)  For the state fiscal year beginning September 1, 2003, a 
school district or participating charter school is entitled to 
state funds in an amount equal to the difference, if any, between:
		(1)  an amount equal to the number of participating 
employees of the district or school multiplied by $1,500;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district or school is required 
to use to provide health coverage under Section 1581.051 for that 
fiscal year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).
	(c)  For the state fiscal year beginning September 1, 2004, a 
school district or participating charter school is entitled to 
state funds in an amount equal to the difference, if any, between:
		(1)  an amount equal to the number of participating 
employees of the district or school multiplied by $1,200;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district or school is required 
to use to provide health coverage under Section 1581.051 for that 
fiscal year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).
	(d)  For the state fiscal year beginning September 1, 2005, a 
school district or participating charter school is entitled to 
state funds in an amount equal to the difference, if any, between:
		(1)  an amount equal to the number of participating 
employees of the district or school multiplied by $900;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district or school is required 
to use to provide health coverage under Section 1581.051 for that 
fiscal year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).
	(e)  For the state fiscal year beginning September 1, 2006, a 
school district or participating charter school is entitled to 
state funds in an amount equal to the difference, if any, between:
		(1)  an amount equal to the number of participating 
employees of the district or school multiplied by $600;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district or school is required 
to use to provide health coverage under Section 1581.051 for that 
fiscal year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).
	(f)  For the state fiscal year beginning September 1, 2007, a 
school district or participating charter school is entitled to 
state funds in an amount equal to the difference, if any, between:
		(1)  an amount equal to the number of participating 
employees of the district or school multiplied by $300;  and
		(2)  if the following amount is less than the amount 
specified by Subdivision (1), the sum of:
			(A)  the amount the district or school is required 
to use to provide health coverage under Section 1581.051 for that 
fiscal year;  and
			(B)  the difference, if any, between:                                        
				(i)  the amount determined under Section 
42.2514(b)(2), Education Code;  and
				(ii)  the amount determined under Section 
42.2514(b)(1), Education Code, if that amount is less than the 
amount specified by Subparagraph (i).
	(g)  A school district that receives state funds under 
Section 1581.101 for a state fiscal year is not entitled to state 
funds under Subsection (a), (b), (c), (d), (e), or (f).
	(h)  This section expires September 1, 2008.                                   

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.102. MAXIMUM AMOUNT OF STATE FUNDS.  For any state 
fiscal year, the amount of state funds a school district receives 
under Section 1581.101 may not exceed the amount of state funds the 
district received under this subchapter for the year preceding the 
year in which the district first receives funds under Section 
1581.101.

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.103. DISTRIBUTION OF FUNDS.  (a) The Teacher 
Retirement System of Texas shall distribute state funds to school 
districts and participating charter schools under this subchapter 
in equal monthly installments.  State funds received under this 
subchapter shall be deposited in a fund described by Section 
1581.052(b).
	(b)  The Texas Education Agency shall provide to the 
retirement system information necessary for the retirement system 
to determine a district's or school's eligibility for state funds 
under this subchapter.  The Teacher Retirement System of Texas may 
enter into interagency contracts with any agency of this state for 
the purpose of assistance in distributing funds under this chapter.

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.104. RECOVERY OF DISTRIBUTIONS.  The Teacher 
Retirement System of Texas is entitled to recover from a school 
district or participating charter school any amount distributed 
under this subchapter to which the district or school was not 
entitled.

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.105. DETERMINATION OF TEACHER RETIREMENT SYSTEM OF 
TEXAS FINAL.  A determination by the Teacher Retirement System of 
Texas under this subchapter is final and may not be appealed.

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.

SUBCHAPTER O. ADDITIONAL SUPPORT FOR CERTAIN SCHOOL DISTRICTS


	§ 1581.701. APPLICABILITY OF SUBCHAPTER.                                    

Text of section effective until September 1, 2008
	This subchapter applies only to a school district that:                        
		(1)  pays taxes under Section 3111(a), Internal Revenue 
Code of 1986, and its subsequent amendments, for employees covered 
by the social security retirement program;  and
		(2)  covered all employees under that program before 
January 1, 2001.       

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.702. ADDITIONAL SUPPORT.                                             

Text of section effective until September 1, 2008
	The state shall provide additional support for a school 
district to which this section applies in an amount computed by 
multiplying the total amount of supplemental compensation received 
by district employees under Subchapter D, Chapter 22, Education 
Code, by 0.062.

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.  Amended by Acts 2005, 79th Leg., ch. 899, § 18.05, eff. 
Sept. 1, 2005;  Acts 2005, 79th Leg., ch. 1359, § 54, eff. Sept. 
1, 2005.


	§ 1581.703. AUTHORITY TO ADOPT RULES.                                       

Text of section effective until September 1, 2008
	The Teacher Retirement System of Texas may adopt rules as 
necessary to implement this subchapter.

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.


	§ 1581.704. EXPIRATION.                                                     

Text of section effective until September 1, 2008
	This subchapter expires September 1, 2008.                                     

Added by Acts 2003, 78th Leg., ch. 1276, § 10A.471(a), eff. Sept. 
1, 2003.