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.