1. (a) Manner, form and effect of election.

   1. (1) Form of the notice of election. All elections to participate in the health benefits program, referred to as "TRS-ActiveCare," under the Texas School Employees Uniform Group Health Coverage Act (the "Act"), Chapter 1579, Insurance Code, shall be in writing, in a form prescribed by the Teacher Retirement System of Texas (TRS), as trustee of TRS-ActiveCare. An incomplete or unsigned notice of election will not be deemed received by TRS for purposes of determining whether a valid election has been exercised.
   2. (2) Timing of the receipt of the notice of election. A notice of election otherwise valid must be received by TRS on or prior to the tenth (10th) business day before the first day of the enrollment period established under §41.36 of this title for the entity seeking to join TRS-ActiveCare.
   3. (3) Time of the receipt of a notice of revocation. In order to revoke a valid election to participate in TRS-ActiveCare, a written notice of revocation, signed by the entity that filed the valid election, must be received by TRS no later than the tenth (10th) business day before the first day of the enrollment period established under §41.36 of this title for the entity. There is no particular form required for a written notice of revocation. However, an unsigned notice of revocation will not be deemed received by TRS for purposes of determining whether a valid revocation has been exercised.
   4. (4) Discontinuance of participation. Entities that participate in TRS-ActiveCare may not discontinue participation unless authorized by Chapter 1579, Insurance Code, and by appropriate rule or resolution adopted by the TRS Board of Trustees.
2. (b) School districts with 500 or fewer employees. Pursuant to §1579.151(a), Insurance Code, school districts with 500 or fewer employees as of January 1, 2001 were required to participate effective September 1, 2002 in TRS-ActiveCare, except that certain of these school districts were authorized to delay or opt out of participation by specified election deadline dates. With regard to a school district that opted out of participation in TRS-ActiveCare pursuant to either §1579.151(b) or §1579.153(c), Insurance Code, as those provisions existed at the time the school district opted out, subsection (h) of this section provides the method for such a school district to change its election.
3. (c) School districts with 501 or more employees but not more than 1000 employees. School districts with 501 or more employees but not more than 1000 employees at any time during the 2001 school year, as reflected on any report received by TRS for a reporting period during that school year may elect to participate in TRS-ActiveCare in the manner prescribed in subsection (h) of this section.
4. (d) School districts with 1001 or more employees. A school district with 1001 or more employees at any time during the 2001 school year, as reflected on any report received by TRS for a reporting period during that school year, may elect to participate in TRS-ActiveCare by filing a notice of election in compliance with subsection (a) of this section, in which event the school district will become a participating entity on the later of the first day of the month following six (6) months from the date on which TRS receives the notice of election or a preferred date specified by the school district in its notice of election. Alternatively, the district will become a participating entity effective on the date approved by the executive director, if applicable, as described in subsection (i) of this section.
5. (e) Educational districts. Pursuant to §1579.151(c), Insurance Code, educational districts whose employees are members of TRS are required to participate effective September 1, 2002 in TRS-ActiveCare, except that educational districts with 500 or fewer employees on January 1, 2001 were allowed to opt out of participation. September 1, 2001 was the deadline for such an educational district to file its notice of election with TRS to opt out of participation in TRS-ActiveCare. Subsection (h) of this section provides the method for an educational district to change its election.

6. (f) Charter schools. Pursuant to §1579.154, Insurance Code, an open-enrollment charter school established under Chapter 12, Subchapter D, Education Code, ("charter school") may elect to participate in TRS-ActiveCare by complying with both paragraphs (1) and (2) of this subsection. Only an eligible charter school under the Act may elect to participate.

   1. (1) Pursuant to §1579.154(a), Insurance Code, to be eligible, a charter school must agree to inspection of all records of the school relating to its participation in TRS-ActiveCare by TRS, by the administering firm as defined in §1579.002(1), Insurance Code, by the commissioner of education, or by a designee of any of those entities, and further must agree to have its accounts relating to participation in TRS-ActiveCare annually audited by a certified public accountant at the school's expense. The agreement of the charter school shall be evidenced in writing and shall constitute a part of a notice of election prescribed by TRS pursuant to subsection (a) of this section.

   2. (2) Eligible charter schools may elect to participate in TRS-ActiveCare by filing a notice of election in compliance with subsection (a) of this section, in which event:

      1. (A) the charter school will become a participating entity on the later of the first day of the month following six (6) months from the date on which TRS receives the notice of election or a preferred date specified by the charter school in its notice of election; or
      2. (B) alternatively, the eligible charter school will become a participating entity effective on the date approved by the executive director, if applicable, as described in subsection (i) of this section.
7. (g) Regional education service centers. Pursuant to §1579.151(a), Insurance Code, each regional education service center established under Chapter 8, Education Code, is required to participate effective September 1, 2002 in TRS-ActiveCare.
8. (h) School districts that opted out of participation in TRS-ActiveCare as described in subsection (b) or (c) of this section and educational districts that opted out of participation in TRS-ActiveCare as described in subsection (e) of this section may elect to participate in TRS-ActiveCare by filing a notice of election in compliance with subsection (a) of this section, in which event the school district will become a participating entity on the later of the first day of the month following six (6) months from the date on which TRS receives the notice of election or a preferred date specified by the school district in its notice of election. Alternatively, the district will become a participating entity effective on the date approved by the executive director, if applicable, as described in subsection (i) of this section.

9. (i) An entity that will become a participating entity in TRS-ActiveCare on the first day of the month following six (6) months after the date on which TRS receives the entity's notice of election but desires to become a participating entity on an earlier date may include in its notice of election a request that the executive director consider an exception to the notice requirement. The notice of election must include the earlier date on which the entity desires its coverage to begin. The executive director will grant the exception if, in his or her sole discretion, upon considering the following criteria, he or she finds that an exception is in the best interest of TRS-ActiveCare:

   1. (1) the impact on the requesting entity's employees and dependents;
   2. (2) the impact on the health plan administrator of TRS-ActiveCare;
   3. (3) the impact on the provider network of TRS-ActiveCare;
   4. (4) the number of potential enrollees that would be coming into TRS-ActiveCare for the first time on the same date; and
   5. (5) the impact on TRS-ActiveCare as a whole, taking into account any recommendations and observations of TRS's health care consultant.

Source Note:The provisions of this §41.30 adopted to be effective January 1, 2002, 26 TexReg 11035; amended to be effective March 12, 2003, 28 TexReg 2114; amended to be effective June 18, 2003, 28 TexReg 4560; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective December 22, 2014, 39 TexReg 10029.