Regular Session
Employees Retirement System of Texas (ERS)
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This bill's path through the Texas Legislature
BILL ANALYSIS |
| C.S.H.B. 3254 |
| By: Leo Wilson |
| Pensions, Investments & Financial Services |
| Committee Report (Substituted) |
| BACKGROUND AND PURPOSE The bill author has informed the committee that State Board of Education (SBOE) members are some of the few elected officials in Texas who do not have access to the state employees group benefits program and that they were previously able to buy into those benefits but that ability has since been removed. C.S.H.B. 3254 seeks to allow members of the SBOE and their dependents to participate in the state employees group benefits program without receiving state contributions for premiums.
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| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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| ANALYSIS C.S.H.B. 3254 amends the Insurance Code to make an individual who is a member of the State Board of Education (SBOE) and the individual's dependents eligible to participate in the group benefits program offered under the Texas Employees Group Benefits Act on application to the board of trustees of the Employees Retirement System of Texas and arrangement for payment of contributions, if the individual is not otherwise eligible under provisions of the act relating to continuing eligibility of certain members of boards, commissions, and institutions of higher education. Such eligibility is subject to the act's administrative process and sanctions for violations of the group benefits program. The bill prohibits a program participant described by the bill's provisions from receiving a state contribution for premiums.
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| EFFECTIVE DATE September 1, 2025.
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| COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 3254 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Whereas the introduced provided for an SBOE member's eligibility for participation in a health benefit plan under the Texas Employees Group Benefits Act, the substitute provides for an SBOE member's eligibility to participate in the group benefits program offered under that act. Additionally, the substitute extends that eligibility to the SBOE member's dependents, whereas the introduced did not.
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| H.B. No. 3254 | ||
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| relating to the eligibility of members of the State Board of | ||
| Education and their dependents to participate in the state | ||
| employees group benefits program. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter C, Chapter 1551, Insurance Code, is | ||
| amended by adding Section 1551.1095 to read as follows: | ||
| Sec. 1551.1095. ELIGIBILITY OF STATE BOARD OF EDUCATION | ||
| MEMBERS. (a) Subject to Section 1551.351, on application to the | ||
| board of trustees and arrangement for payment of contributions, an | ||
| individual who is a member of the State Board of Education and not | ||
| otherwise eligible under Section 1551.109 and the individual's | ||
| dependents are eligible under this section to participate in the | ||
| group benefits program offered under this chapter. | ||
| (b) A participant described by this section may not receive | ||
| a state contribution for premiums. | ||
| SECTION 2. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB3254 by Leo Wilson (Relating to the eligibility of members of the State Board of Education to participate in a health benefit plan offered under the state employees group benefits program.), As Introduced |
| Source Agencies: | 327 Employees Retirement System, 454 Department of Insurance |
| LBB Staff: | JMc, FV, BFa |
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Common questions about HB3254
House Bill 3254 immediately expands eligibility for the State Employees Group Benefits Program (GBP) to include members of the State Board of Education (SBOE) and their dependents. The critical operational constraint is financial: unlike standard employees, SBOE members must pay 100% of the contribution costs, with a statutory prohibition on state contribution. This creates a new class of "full-pay" participants requiring distinct billing and enrollment protocols.
HB3254 was authored by Texas Representative Terri Leo-Wilson during the Regular Session.
HB3254 was signed into law by Governor Greg Abbott on June 20, 2025.
HB3254 is enforced by Employees Retirement System of Texas (ERS).
The compliance urgency for HB3254 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB3254 is estimated as "low". This may vary based on industry and implementation requirements.
HB3254 addresses topics including education, education--higher, education--higher--general, insurance and insurance--health & accident.
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