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HB 3126

AN ACT relating to the election of certain school districts to participate

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Allows small school districts with 500 or fewer employees that previously discontinued participation in the uniform group coverage program to re-enter the program before the standard five-year waiting period. Districts must provide written notice by December 31, 2025, to participate starting September 1, 2026, and will be subject to a risk stabilization fee determined by the trustee. Once re-entering, these districts must remain in the program until September 1, 2031, with the provision expiring on that date.

Subject Areas

Bill Text

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
(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
(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
(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.

Bill History

filed

Bill filed: AN ACT relating to the election of certain school districts to participate