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.