By: Yarbrough H.B. No. 438 73R2889 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to health insurance coverage for employees of certain 1-3 contractors. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-6 amended by adding Article 21.38 to read as follows: 1-7 Art. 21.38. HEALTH BENEFITS FOR EMPLOYEES OF CERTAIN 1-8 CONTRACTORS. (a) This article applies to each person or entity 1-9 that employs 10 or more persons and that performs services for the 1-10 state or a political subdivision of the state as: 1-11 (1) an independent contractor; or 1-12 (2) a subcontractor under contract with an independent 1-13 contractor. 1-14 (b) Each contractor or subcontractor covered by Subsection 1-15 (a) of this article shall provide benefits for hospital, surgical, 1-16 or medical expenses incurred as a result of accident or sickness 1-17 for those employees of the contractor or subcontractor working 1-18 under the contract with the state or political subdivision. The 1-19 benefits may be provided under a group or individual insurance 1-20 policy or contract issued by an insurer authorized to write that 1-21 coverage in this state including companies subject to Chapter 20 of 1-22 this code or to the Texas Health Maintenance Organization Act 1-23 (Chapter 20A, Vernon's Texas Insurance Code). 1-24 (c) The state or a political subdivision of the state may 2-1 not enter into a contract for services with a contractor or 2-2 subcontractor who does not comply with Subsection (b) of this 2-3 article. 2-4 SECTION 2. This Act takes effect September 1, 1993, and 2-5 applies only to persons or entities providing services under 2-6 contracts entered into on or after that date. 2-7 SECTION 3. The importance of this legislation and the 2-8 crowded condition of the calendars in both houses create an 2-9 emergency and an imperative public necessity that the 2-10 constitutional rule requiring bills to be read on three several 2-11 days in each house be suspended, and this rule is hereby suspended.