By: Martin H.B. No. 453
73R1752 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a requirement that a bidder on a state construction
1-3 contract make group health coverage available to the bidder's
1-4 employees and their dependents.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article 5, State Purchasing and General Services
1-7 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
1-8 adding Section 5.261 to read as follows:
1-9 Sec. 5.261. GROUP HEALTH COVERAGE REQUIREMENT. (a) A
1-10 bidder that submits a bid or proposal on a building construction
1-11 contract to be entered into by the State of Texas, including a
1-12 contract pertaining to a project otherwise excluded from the
1-13 provisions of this article by Section 5.13 of this article but not
1-14 including a project excluded by Section 5.14 of this article, must
1-15 make group health coverage available to the bidder's employees and
1-16 their dependents as of the date that the bid or proposal is
1-17 submitted and for at least one year after that date.
1-18 (b) Group health coverage required under this section must
1-19 be:
1-20 (1) provided:
1-21 (A) through a self-funded employee benefit plan;
1-22 or
1-23 (B) under a policy of insurance or group
1-24 contract issued by an insurer, a company subject to Chapter 20,
2-1 Insurance Code, or a health maintenance organization under the
2-2 Texas Health Maintenance Organization Act (Chapter 20A, Vernon's
2-3 Texas Insurance Code); and
2-4 (2) at least comparable to the basic health coverage
2-5 provided for state employees and their dependents under the Texas
2-6 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
2-7 Vernon's Texas Insurance Code).
2-8 (c) The cost of the group health coverage required under
2-9 this section may be shared by the bidder and the bidder's
2-10 employees, but the bidder must pay at least a share of the cost of
2-11 coverage comparable to the share of the cost of coverage paid by
2-12 the State of Texas for the basic health coverage provided for state
2-13 employees and their dependents under the Texas Employees Uniform
2-14 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
2-15 Insurance Code).
2-16 (d) On request, the Texas Department of Insurance shall
2-17 assist the commission or other state agency that is to enter into a
2-18 building construction contract on behalf of the State of Texas
2-19 under Subsection (a) of this section to determine whether a bidder
2-20 on the contract meets the requirements of this section. A bidder
2-21 must supply the information required by the department, commission,
2-22 or other state agency to make that determination. The commission
2-23 or other state agency may not accept a bid or proposal made by a
2-24 bidder that does not meet the requirements of this section.
2-25 (e) The commission, other state agencies that are to enter
2-26 into building construction contracts on behalf of the State of
2-27 Texas under Subsection (a) of this section, and the Texas
3-1 Department of Insurance may adopt rules to administer this section.
3-2 SECTION 2. Section 5.261, State Purchasing and General
3-3 Services Act (Article 601b, Vernon's Texas Civil Statutes), as
3-4 added by this Act, applies only to a bid or proposal submitted on a
3-5 building construction contract if the contract is to be entered
3-6 into on or after October 1, 1993.
3-7 SECTION 3. This Act takes effect September 1, 1993.
3-8 SECTION 4. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended.