CHAPTER 2000. BENEFITS CONSORTIUMS FOR CERTAIN PRIVATE EDUCATIONAL INSTITUTIONS
EDUCATION CODE
TITLE 6. BENEFITS CONSORTIUMS
CHAPTER 2000. BENEFITS CONSORTIUMS FOR CERTAIN
PRIVATE EDUCATIONAL INSTITUTIONS
Sec. 2000.001. DEFINITIONS. In this chapter:
(1) "Employee welfare benefit plan" has the meaning assigned by
Section 3(1), Employee Retirement Income Security Act of 1974 (29
U.S.C. Section 1002(1)).
(2) "Private educational institution" means any nonpublic,
nonprofit, and accredited school that:
(A) is owned and operated by an individual, religious
institution, partnership, association, or corporation, or a
department, division, or section of one of those entities; and
(B) designates itself as a private educational center that
includes a program of elementary, secondary, religious, college,
or university education whose primary purpose is to provide
private or religious-based education.
Added by Acts 2005, 79th Leg., Ch.
625, Sec. 1, eff. June 17, 2005.
Sec. 2000.002. FORMATION OF BENEFITS CONSORTIUM. Two or more
private educational institutions may form a benefits consortium
for the purpose of establishing a self-funded employee welfare
benefit plan by adopting articles of incorporation or a
declaration of trust. The articles of incorporation or
declaration of trust must:
(1) limit membership in the benefits consortium to private
educational institutions;
(2) list the charter members of the benefits consortium;
(3) include the method by which other institutions may be
admitted as members of the benefits consortium;
(4) require that each member agree to an initial membership term
of not less than three years;
(5) provide that the directors or trustees of the benefits
consortium be elected from or on behalf of the membership of the
benefits consortium and prescribe the method for selection of
directors or trustees of the benefits consortium;
(6) provide that the directors or trustees have complete fiscal
control over the plan and are responsible for all operations of
the plan;
(7) list the purposes of the benefits consortium, including the
types of risks shared by members of the consortium;
(8) establish bylaws of the benefits consortium; and
(9) provide for amendment of the articles of incorporation or
declaration of trust and the bylaws.
Added by Acts 2005, 79th Leg., Ch.
625, Sec. 1, eff. June 17, 2005.
Sec. 2000.003. FILINGS BY BENEFITS CONSORTIUM. A benefits
consortium formed under this chapter shall:
(1) file with the commissioner of insurance a copy of the
consortium's articles of incorporation or declaration of trust
and any amendments to the articles of incorporation or
declaration of trust; and
(2) comply with all reporting requirements under the Employee
Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et
seq.).
Added by Acts 2005, 79th Leg., Ch.
625, Sec. 1, eff. June 17, 2005.
Sec. 2000.004. REGULATION OF BENEFITS CONSORTIUM; EXEMPTION FROM
STATE REGULATION. An employee welfare benefit plan established
by a benefits consortium under this chapter that is sponsored by
a trade association in existence for 10 years or more, is in good
standing with the secretary of state, and meets the requirements
of this chapter is governed solely by and shall comply with the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
Section 1001 et seq.), as implemented by the United States
Department of Labor.
Added by Acts 2005, 79th Leg., Ch.
625, Sec. 1, eff. June 17, 2005.