Relating to the election of certain school districts to participate in the uniform group coverage program for active school employees.
relating to the election of certain school districts to participate
in the uniform group coverage program for active school employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 1579, Insurance Code, is
amended by adding Section 1579.1551 to read as follows:
Sec. 1579.1551. SMALL SCHOOL DISTRICT PROGRAM
PARTICIPATION. (a) This section applies to a school district that:
(1) discontinued participation in the program
effective on September 1, 2022, in accordance with Section
1579.155(a); and
(2) at the time the district elects to participate in
the program under this section, has 500 or fewer employees.
(b) Notwithstanding Section 1579.155(b), a school district
to which this section applies may elect to participate in the
program before the fifth anniversary of the effective date of the
district’s election to discontinue participation in the program if
the district:
(1) provides written notice to the trustee not later
than December 31, 2025, of the district’s election to participate
in the program effective beginning September 1, 2026; and
(2) complies with any other requirements established
by the trustee for program participation.
(c) For the plan year beginning September 1, 2026, the
trustee shall impose a risk stabilization fee in an amount
determined by the trustee on the premiums of a school district to
which this section applies.
(d) A school district that elects to participate in the
program in accordance with this section may not elect to
discontinue participation until September 1, 2031.
(e) The trustee by rule may impose additional requirements,
conditions, and deadlines with which a school district to which
this section applies must comply to elect to participate in the
program in accordance with this section.
(f) This section expires September 1, 2031.
SECTION 2. This Act takes effect September 1, 2025.
