By Rodriguez                                          H.B. No. 1980
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to participation of certain part-time employees in the
    1-3  state group insurance program.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 3, Texas Employees Uniform Group
    1-6  Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
    1-7  Code), as amended by Chapters 242 and 391, Acts of the 72nd
    1-8  Legislature, Regular Session, 1991, is amended and reenacted to
    1-9  read as follows:
   1-10        Sec. 3.  DEFINITIONS.  (a)  Unless a different meaning is
   1-11  plainly required by the context, the following words and phrases as
   1-12  used in this Act shall have the following meanings:
   1-13              (1)  "Administering firm" shall mean any firm
   1-14  designated by the trustee to administer any coverages, services,
   1-15  benefits, or requirements in accordance with this Act and the
   1-16  trustee's regulations promulgated pursuant thereto.
   1-17              (2)  "Annuitant" shall mean an officer or employee who
   1-18  retires under:
   1-19                    (A)  the jurisdiction of the Employees Retirement
   1-20  System of Texas and either receives an annuity or is eligible to
   1-21  receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
   1-22  Government Code, or Chapter 803, Government Code, that is based on
   1-23  at least 10 years of service credit or eligibility under Section
    2-1  814.002 or 814.102, Government Code;
    2-2                    (B)  the jurisdiction of the Teacher Retirement
    2-3  System of Texas and either receives an annuity or is eligible to
    2-4  receive an annuity, pursuant to Subtitle C, Title 8, Government
    2-5  Code, that is based on at least 10 years of service credit, whose
    2-6  last state employment prior to retirement was as an employee of the
    2-7  Teacher Retirement System of Texas, school districts established
    2-8  within state eleemosynary institutions, the Texas Rehabilitation
    2-9  Commission, the Central Education Agency, the Texas Higher
   2-10  Education Coordinating Board, or an institution of higher
   2-11  education;
   2-12                    (C)  the optional retirement program established
   2-13  by Chapter 830, Government Code, and either receives an annuity or
   2-14  is eligible to receive an annuity under that program, if the
   2-15  person's last state employment before retirement, including
   2-16  employment by a public community/junior college, was as an officer
   2-17  or employee of the Texas Higher Education Coordinating Board or an
   2-18  institution of higher education; or
   2-19                    (D)  any other federal or state statutory
   2-20  retirement program to which an institution of higher education has
   2-21  made employer contributions, if the employee has met service
   2-22  requirements, age requirements, and other applicable requirements
   2-23  comparable to the requirements for retirement under the Teacher
   2-24  Retirement System of Texas, based on at least 10 years of service
   2-25  credit, and if the person either:
    3-1                          (i)  would have been eligible to retire and
    3-2  receive a service retirement annuity from the Teacher Retirement
    3-3  System of Texas based on at least 10 years of service credit had
    3-4  the person not elected to participate in the optional retirement
    3-5  program; or
    3-6                          (ii)  is disabled.
    3-7              (3)  "Carrier" shall mean a qualified carrier as
    3-8  defined in this Act.
    3-9              (4)  "Department" shall mean commission, board, agency,
   3-10  division, institution of higher education, or department of the
   3-11  State of Texas created as such by the constitution or statutes of
   3-12  this state.
   3-13              (5)  "State employee <(A)  "Employee>" shall mean any
   3-14  appointive or elective state officer or employee in the service of
   3-15  the State of Texas, including an employee of an institution of
   3-16  higher education:
   3-17                    (A) <(i)>  who is retired or retires and is an
   3-18  annuitant under the jurisdiction of the Employees Retirement System
   3-19  of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
   3-20  Government Code, who is retired or retires and is an annuitant
   3-21  under the jurisdiction of the Teacher Retirement System of Texas,
   3-22  pursuant to Subtitle C, Title 8, Government Code, whose last
   3-23  employment with the state prior to retirement was as an employee of
   3-24  the Teacher Retirement System of Texas, school districts
   3-25  established within state eleemosynary institutions, the Texas
    4-1  Rehabilitation Commission, the Central Education Agency, the Texas
    4-2  Higher Education Coordinating Board, or an institution of higher
    4-3  education, or who is retired or retires and is an annuitant under
    4-4  the optional retirement program established by Chapter 830,
    4-5  Government Code, if the person's last state employment before
    4-6  retirement, including employment by a public community/junior
    4-7  college, was as an officer or employee of the Texas Higher
    4-8  Education Coordinating Board, or an institution of higher
    4-9  education, and if the person either:
   4-10                          (i) <(a)>  would have been eligible to
   4-11  retire and receive a service retirement annuity from the Teacher
   4-12  Retirement System of Texas had the person not elected to
   4-13  participate in the optional retirement program; or
   4-14                          (ii) <(b)>  is disabled;
   4-15                    (B) <(ii)>  who receives his compensation for
   4-16  services rendered to the State of Texas on a warrant issued
   4-17  pursuant to a payroll certified by a department or by an elected or
   4-18  duly appointed officer of this state;
   4-19                    (C) <(iii)>  who receives payment for the
   4-20  performance of personal services on a warrant issued pursuant to a
   4-21  payroll certified by a department and drawn by the State
   4-22  Comptroller of Public Accounts upon the State Treasurer against
   4-23  appropriations made by the Texas Legislature from any state funds
   4-24  or against any trust funds held by the State Treasurer or who is
   4-25  paid from funds of an official budget of a state department, rather
    5-1  than from funds of the General Appropriations Act;
    5-2                    (D) <(iv)>  who is appointed, subject to
    5-3  confirmation of the senate, as a member of a board or commission
    5-4  with administrative responsibility over a statutory agency having
    5-5  statewide jurisdiction whose employees are covered by this Act;
    5-6                    (E) <(v)>  who receives compensation for services
    5-7  rendered to an institution of higher education on a warrant or
    5-8  check issued pursuant to a payroll certified by an institution of
    5-9  higher education or by an elected or duly appointed officer of this
   5-10  state, and who is eligible for participation in the Teacher
   5-11  Retirement System of Texas; or
   5-12                    (F) <(vi)>  who receives compensation for
   5-13  services rendered to an institution of higher education as provided
   5-14  by this subdivision but is not permitted to be a member of the
   5-15  Teacher Retirement System of Texas because the person is solely
   5-16  employed by an institution of higher education that as a condition
   5-17  of employment requires the person to be enrolled as a student in an
   5-18  institution of higher education in graduate-level courses and who
   5-19  is employed by the institution at least 20 hours a week.
   5-20                    <(B)  Persons performing personal services for
   5-21  the State of Texas or for an institution of higher education as
   5-22  independent contractors shall never be considered employees of the
   5-23  state for purposes of this Act.>
   5-24              (6)  "Employer" shall mean the State of Texas, all its
   5-25  departments, and any participating school district.
    6-1              (7)  "Health benefits plan" shall mean any group policy
    6-2  or contract, medical, dental, or hospital service agreement,
    6-3  membership or subscription contract, salary continuation plan,
    6-4  health maintenance organization agreement, preferred provider
    6-5  arrangement, or any similar group arrangement or any combination of
    6-6  those policies, plans, contracts, agreements, or arrangements
    6-7  provided for the purpose of providing, paying for, or reimbursing
    6-8  expenses for health care services, including comparable health care
    6-9  services for employees who rely solely on spiritual means through
   6-10  prayer for healing in accordance with the teaching of a well
   6-11  recognized church or denomination.
   6-12              (8)  "Dependent" shall mean the spouse of an employee
   6-13  or retired employee and an unmarried child under 25 years of age,
   6-14  including:  (A) an adopted child and (B) a stepchild, foster child,
   6-15  or other child who is in a regular parent-child relationship and
   6-16  (C) any such child, regardless of age, who lives with or whose care
   6-17  is provided by an employee or annuitant on a regular basis if such
   6-18  child is mentally retarded or physically incapacitated to such an
   6-19  extent as to be dependent upon the employee or retired employee for
   6-20  care or support, as the trustee shall determine.
   6-21              (9)  "Qualified carrier" shall mean:  (A) any insurance
   6-22  company authorized to do business in this state by the State Board
   6-23  of Insurance to provide any of the types of insurance coverages,
   6-24  benefits, or services provided for in this Act under any of the
   6-25  insurance laws of the State of Texas, which has a surplus of $1
    7-1  million, a successful operating history, and which has had
    7-2  successful experience in providing and servicing any of the types
    7-3  of group coverage provided for in this Act as determined by the
    7-4  State Board of Insurance; (B) any corporation operating under
    7-5  Chapter 20 of the Insurance Code which provides any of the types of
    7-6  coverage, benefits, or services provided for in this Act, a
    7-7  successful operating history, and which has had successful
    7-8  experience in providing and servicing any of the types of group
    7-9  coverage provided for in this Act as determined by the State Board
   7-10  of Insurance; or (C) any combination or carriers as herein defined,
   7-11  upon such terms and conditions as may be prescribed by the trustee,
   7-12  providing, however, that for purposes of this Act carriers
   7-13  combining for the purpose of bidding and/or underwriting this
   7-14  program shall not be considered in violation of Sections 15.01
   7-15  through 15.26 <15.34>, Chapter 15, Title 2, Competition and Trade
   7-16  Practices, Texas Business & Commerce Code.
   7-17              (10)  "Service" shall mean any personal service of an
   7-18  employee creditable in accordance with rules and regulations
   7-19  promulgated by the trustee.
   7-20              (11)  "Trustee" shall mean the Board of Trustees
   7-21  provided for in Chapter 815, Government Code, to administer the
   7-22  Employees Retirement System of Texas.
   7-23              (12)  "Active employee plan" shall mean a plan or
   7-24  program of group coverages as determined by the trustee <as defined
   7-25  in Paragraph (11) above> for the benefit of employees <as defined
    8-1  in this Act> who are not retired.
    8-2              (13)  "Retired employees plan" shall mean a plan or
    8-3  program of group coverages as determined by the trustee for all
    8-4  retired employees <as defined in this Act>.  This plan may be
    8-5  separate or a part of the active employee plan at the discretion of
    8-6  the trustee, and, if separate, shall include both full benefits and
    8-7  supplemental coverage options.
    8-8              (14)  "Part-time employee" shall mean, for purposes of
    8-9  this Act, an employee designated by his employing agency as working
   8-10  less than 20 hours per week.  <A part-time state employee shall
   8-11  receive the benefits of one-half the amount of the state's
   8-12  contribution received by full-time employees.>
   8-13              (15)  "Full-time employee" shall mean, for purposes of
   8-14  this Act, an employee designated by his employing agency as working
   8-15  20 or more hours per week.  <A full-time state employee shall
   8-16  receive the benefits of a full state contribution for coverage
   8-17  under this Act.>
   8-18              (16)  "Basic coverage" shall mean the programs of group
   8-19  coverages determined by the trustee in which every full-time
   8-20  employee and every annuitant participates automatically unless
   8-21  participation is specifically waived.
   8-22              (17)  "Cafeteria plan" means a plan as defined and
   8-23  authorized by Section 125, Internal Revenue Code of 1986 (26 U.S.C.
   8-24  Sec. 125).
   8-25              (18)  "Institution of higher education" means any
    9-1  public community/junior college or senior college or university, or
    9-2  any other agency of higher education within the meaning and
    9-3  jurisdiction of Chapter 61, Education Code, except The University
    9-4  of Texas System and The Texas A&M University System.  The term does
    9-5  not include Texas Tech University and the University of Houston
    9-6  System unless either of these entities elects to participate in
    9-7  accordance with Section 3A of this Act.
    9-8              (19)  For the purposes of this section, "serious mental
    9-9  illness" means the following psychiatric illnesses as defined by
   9-10  the American Psychiatric Association in the Diagnostic and
   9-11  Statistical Manual (DSM) III-R:
   9-12                    (A)  schizophrenia;
   9-13                    (B)  paranoid and other psychotic disorders;
   9-14                    (C)  bipolar disorders (mixed, manic, and
   9-15  depressive);
   9-16                    (D)  major depressive disorders (single episode
   9-17  or recurrent); and
   9-18                    (E)  schizo-affective disorders (bipolar or
   9-19  depressive).
   9-20              (20) <(19)>  "The University of Texas System" means the
   9-21  entities listed or described in Section 65.02, Education Code.
   9-22              (21) <(19)>  "Participating school district" means a
   9-23  school district that has elected to participate in the Texas
   9-24  employees uniform group insurance program under Section 3A of this
   9-25  Act.
   10-1              (22) <(20)>  "The Texas A&M University System" means
   10-2  the entities governed under Chapters 85 through 88, Education Code,
   10-3  and includes the Texas Veterinary Diagnostic Laboratory.
   10-4              (23) <(20)>  "School district employee" means a
   10-5  participating member of the Teacher Retirement System who is
   10-6  employed by a participating school district and who is not covered
   10-7  by a group insurance program authorized by Chapter 32, Acts of the
   10-8  65th Legislature, Regular Session, 1977 (Article 3.50-3, Vernon's
   10-9  Texas Insurance Code), but does not include a person performing
  10-10  personal services for a school district as an independent
  10-11  contractor.
  10-12              (24) <(21)>  "Texas Tech University" means Texas Tech
  10-13  University, the Texas Tech University Museum, and the Texas Tech
  10-14  University Health Sciences Center.
  10-15              (25) <(21)>  "School district" means a public school
  10-16  district.
  10-17              (26) <(22)>  "University of Houston System" means the
  10-18  entities governed under Section 111.20, Education Code.
  10-19              (27) <(22)>  "Employee" means a state employee or a
  10-20  school district employee.
  10-21        (b)  A person who performs personal services as an
  10-22  independent contractor for this state or for an institution of
  10-23  higher education is not an employee for the purposes of this Act.
  10-24        (c)  In addition to the foregoing definitions, the trustee
  10-25  shall have authority to define by rule any words in terms necessary
   11-1  in the administration of this Act.
   11-2        (d) <(c)>  Notwithstanding Subsection (a)(2) of this section,
   11-3  a person who, before September 1, 1991, retired under Subtitle C,
   11-4  Title 8, Government Code, with at least 5 but less than 10 years of
   11-5  service is also an annuitant for purposes of this Act.
   11-6        SECTION 2.  The Texas Employees Uniform Group Insurance
   11-7  Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
   11-8  amended by adding Section 14A to read as follows:
   11-9        Sec. 14A.  EFFECT OF PART-TIME EMPLOYMENT.  (a)  A full-time
  11-10  state employee shall receive the benefits of a full state
  11-11  contribution for coverage under this Act.
  11-12        (b)  Except as provided by Subsection (c) of this section, a
  11-13  part-time state employee shall receive the benefits of one-half the
  11-14  amount of the state's contribution for coverage under this Act for
  11-15  full-time state employees.
  11-16        (c)  Notwithstanding any other provision of this Act, a
  11-17  part-time employee of a public community/junior college is eligible
  11-18  for coverage under this article at the same rate as any other
  11-19  part-time state employee only if the cost of the coverage is paid:
  11-20              (1)  by that part-time employee; or
  11-21              (2)  by the employing public community/junior college
  11-22  using local funds.
  11-23        SECTION 3.  This Act takes effect September 1, 1993.
  11-24        SECTION 4.  The importance of this legislation and the
  11-25  crowded condition of the calendars in both houses create an
   12-1  emergency   and   an   imperative   public   necessity   that   the
   12-2  constitutional rule requiring bills to be read on three several
   12-3  days in each house be suspended, and this rule is hereby suspended.