2025 · Regular session · House bill
HB3126
HB3126 created a one-time route back into the state school employee health coverage program for entities that left effective September 1, 2022.
Official caption: Relating to the election of certain entities to participate in the uniform group coverage program for active school employees; imposing a fee.
Official report lists House author(s): Darby, Lambert, Metcalf, Guillen. This does not identify sponsors or amendment drafters.
Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.
Bill highlights
Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.
- HB3126 created a one-time route back into the state school employee health coverage program for entities that left effective September 1, 2022.
- The final law applies to qualifying entities, not only small school districts.
- Returning early carries a cost and a commitment: TRS must impose a risk-stabilization fee on these entities' premiums for the plan year beginning September 1, 2026, in an amount it determines.
- The governor signed June 20, 2025; the act took effect September 1, 2025.
What does it do?
HB3126 created a one-time route back into the state school employee health coverage program for entities that left effective September 1, 2022. Normally, an entity that leaves must wait until the fifth anniversary to return. This exception allowed eligible entities to return September 1, 2026, provided they gave the Teacher Retirement System of Texas (TRS) written notice by December 31, 2025 and met its other participation requirements. The notice deadline has passed; this is not an open-ended invitation to enroll now. Final law; ordinary participation rule.
The final law applies to qualifying entities, not only small school districts. The chapter’s participating-entity definition includes school districts, certain other educational districts, regional education service centers and qualifying charter schools. An entity still must satisfy the specific September 2022 departure condition; the bill does not let any employer or individual join at will. Definitions.
Returning early carries a cost and a commitment. TRS must impose a risk-stabilization fee on these entities’ premiums for the plan year beginning September 1, 2026, in an amount it determines. The act itself sets no dollar amount or percentage. An entity returning through this provision cannot elect to leave before September 1, 2031. TRS may set additional requirements, conditions and deadlines by rule.
The governor signed June 20, 2025; the act took effect September 1, 2025. The special statutory section expires September 1, 2031. Its expiration is not a direction automatically terminating participants’ coverage. Official history.
What changed along the way?
The filed bill, retained in the House committee report, applied only to school districts with 500 or fewer employees when electing to return. Darby’s first House amendment proposed adding charter schools and increasing the ceiling to 1,500 employees. But his adopted amendment to that amendment removed the employee-count condition altogether. Neither 500 nor 1,500 is a limit in the enacted law.
The Senate substitute changed references to districts and charter schools to the broader term entity. The Senate amendment packet contains that adopted substitute, which matches the final substantive text. The House concurred May 28. The amendment index lists the two House amendments; the Senate substitute is also important to understanding the outcome. All versions.
For the full amendment record, open the official amendment index.
Official bill versions
Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.
Who could benefit—and who could bear the costs?
Qualifying former participants gained a chance to restore access to the school employee plan one year earlier than the ordinary five-year waiting period. Employees and dependents may benefit from their employer’s coverage choice, but the act does not promise lower premiums or reimburse earlier unpaid medical claims.
Returning entities bear the added fee and ordinary healthcare costs and give up the option to withdraw during the stated commitment period. The fee is intended to address the risks of early reentry; its amount and actual cost distribution are not specified in this act.
The May 25 final fiscal note anticipates no significant state fiscal impact, assuming implementation uses existing resources, but expressly says participating school districts would incur risk-stabilization fees and healthcare costs. That is not a finding that rejoining is cost-free. No appropriation is made.
Official sources
- Bill history and latest recorded action
- Bill versions, analyses and fiscal notes
- Action history and votes
- Amendment index
Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.