S.B. No. 1682

	AN ACT
	relating to establishing a contingency reserve account under the
	Texas Public School Employees Group Insurance Program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter G, Chapter 1575, Insurance Code, is
	amended by adding Section 1575.307 to read as follows:
	Sec. 1575.307.  CONTINGENCY RESERVE ACCOUNT. (a)  Before
	the first day of each state fiscal biennium, the trustee shall
	estimate for an average 60-day period during the biennium the
	expenditures from the fund anticipated for the group program,
	considering projected claims and administrative expenses.
	(b)  The trustee shall place the estimated amount in a
	contingency reserve account to provide for adverse fluctuations in
	claims or administrative expenses.
	(c)  The trustee shall include in each request for
	legislative appropriations to the group program the amount the
	trustee determines to be necessary to maintain the contingency
	reserve account at the level required by this section.
	(d)  The trustee may invest and reinvest any portion of the
	contingency reserve account in accordance with Sections 825.103(b)
	and 825.301, Government Code, considering the functional need to
	provide for adverse fluctuations in claims or administrative
	expenses.
	(e)  The interest on, earnings of, and proceeds from the sale
	of investments of assets in the contingency reserve account shall
	be credited to the account.
	(f)  The trustee, from time to time and in amounts the
	trustee considers appropriate, may transfer unused money for
	administrative expenses to the contingency reserve account to be
	used by the trustee only for charges, claims, and expenses under the
	group program.
	SECTION 2.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1682 passed the Senate on
	April 17, 2019, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1682 passed the House on
	May 17, 2019, by the following vote:  Yeas 147, Nays 0, two
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor