Tuesday, March 15, 2005

Pending Texas PEO legislation - updates

SB976, which would authorize PEOs to sponsor self funded group health plans, has been referred to the Business & Commerce Committee. SB976 was NOT sponsored or authored by NAPEO and is being opposed by NAPEO. Expect state agencies, such as the Texas Department of Insurance, Attorney General, and others to register strong opposition to this bill.

HB1939, related to disclosures to be made to terminated worksite employees, has been referred to the Economic Development Committee. It is not clear who is behind this bill, or the real reason for it. I am concerned that this bill will complicate (rather than improve) the problem of giving notices to terminated employees under the rule that provides PEOs with a defense to some unemployment insurance claims.