By Black                                              H.B. No. 2778
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to eligibility of certain officers and employees of the
    1-3  state for coverage under certain group insurance plans.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 3(a)(5)(A), Texas Employees Uniform Group
    1-6  Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
    1-7  Code), as amended by Chapter 242, Acts of the 72nd Legislature,
    1-8  Regular Session, 1991, is amended to read as follows:
    1-9                    (A)  "Employee" shall mean any appointive or
   1-10  elective state officer or employee in the service of the State of
   1-11  Texas, including an officer or employee of an institution of higher
   1-12  education:
   1-13                          (i)  who is retired or retires and is an
   1-14  annuitant under the jurisdiction of the Employees Retirement System
   1-15  of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
   1-16  Government Code, who is retired or retires and is an annuitant
   1-17  under the jurisdiction of the Teacher Retirement System of Texas,
   1-18  pursuant to Subtitle C, Title 8, Government Code, whose last
   1-19  employment with the state prior to retirement was as an employee of
   1-20  the Teacher Retirement System of Texas, school districts
   1-21  established within state eleemosynary institutions, the Texas
   1-22  Rehabilitation Commission, the Central Education Agency, the Texas
   1-23  Higher Education Coordinating Board, or an institution of higher
    2-1  education, or who is retired or retires and is an annuitant under
    2-2  the optional retirement program established by Chapter 830,
    2-3  Government Code, if the person's last state employment before
    2-4  retirement, including employment by a public community/junior
    2-5  college, was as an officer or employee of the Texas Higher
    2-6  Education Coordinating Board, or an institution of higher
    2-7  education, and if the person either:
    2-8                                (a)  would have been eligible to
    2-9  retire and receive a service retirement annuity from the Teacher
   2-10  Retirement System of Texas had the person not elected to
   2-11  participate in the optional retirement program; or
   2-12                                (b)  is disabled;
   2-13                          (ii)  who receives his compensation for
   2-14  services rendered to the State of Texas on a warrant issued
   2-15  pursuant to a payroll certified by a department or by an elected or
   2-16  duly appointed officer of this state;
   2-17                          (iii)  who receives payment for the
   2-18  performance of personal services on a warrant issued pursuant to a
   2-19  payroll certified by a department and drawn by the State
   2-20  Comptroller of Public Accounts upon the State Treasurer against
   2-21  appropriations made by the Texas Legislature from any state funds
   2-22  or against any trust funds held by the State Treasurer or who is
   2-23  paid from funds of an official budget of a state department, rather
   2-24  than from funds of the General Appropriations Act;
   2-25                          (iv)  who is appointed, subject to
    3-1  confirmation of the senate, as a member of a board or commission
    3-2  with administrative responsibility over a statutory agency having
    3-3  statewide jurisdiction whose employees are covered by this Act;
    3-4                          (v)  who receives compensation for services
    3-5  rendered to an institution of higher education on a warrant or
    3-6  check issued pursuant to a payroll certified by an institution of
    3-7  higher education or by an elected or duly appointed officer of this
    3-8  state, and who is eligible for participation in the Teacher
    3-9  Retirement System of Texas; <or>
   3-10                          (vi)  who receives compensation for
   3-11  services rendered to an institution of higher education as provided
   3-12  by this subdivision but is not permitted to be a member of the
   3-13  Teacher Retirement System of Texas because the person is solely
   3-14  employed by an institution of higher education that as a condition
   3-15  of employment requires the person to be enrolled as a student in an
   3-16  institution of higher education in graduate-level courses and who
   3-17  is employed by the institution at least 20 hours a week;
   3-18                          (vii)  who serves as a member of the
   3-19  governing board of an institution of higher education; or
   3-20                          (viii)  who formerly served as a member of
   3-21  the governing board of an institution of higher education and was
   3-22  enrolled and participating on September 1, 1992, in coverage under
   3-23  this Act.
   3-24        SECTION 2.  The Texas Employees Uniform Group Insurance
   3-25  Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
    4-1  amended by adding Section 14B to read as follows:
    4-2        Sec. 14B.  PREMIUM PAYMENTS BY MEMBERS OF GOVERNING BOARD OF
    4-3  INSTITUTION OF HIGHER EDUCATION.  (a)  An active or former member
    4-4  of the governing board of an institution of higher education is
    4-5  entitled to receive coverage under this Act only if that member
    4-6  pays all premium costs related to that coverage.
    4-7        (b)  The trustee may adopt rules as necessary to implement
    4-8  this section.
    4-9        SECTION 3.  Section 3(a)(4)(A),  Texas State College and
   4-10  University Employees Uniform Insurance Benefits Act (Article
   4-11  3.50-3, Vernon's Texas Insurance Code), is amended to read as
   4-12  follows:
   4-13                    (A)  "Employee" means a member of the governing
   4-14  board of an institution or <shall mean> any person employed by a
   4-15  governing board of an institution:
   4-16                          (i)  who retires under the provisions cited
   4-17  in Subsection (a)(2) of this section;
   4-18                          (ii)  who receives his compensation for
   4-19  services rendered to an institution on a warrant or check issued
   4-20  pursuant to a payroll certified by an institution or by an elected
   4-21  or duly appointed officer of this state, and who is eligible for
   4-22  participation in the Teacher Retirement System of Texas; <or>
   4-23                          (iii)  who receives his compensation for
   4-24  services rendered as provided in this subdivision but is not
   4-25  permitted to be a member of the Teacher Retirement System of Texas
    5-1  because he is solely employed by an institution of higher education
    5-2  that as a condition of employment requires the employee to be
    5-3  enrolled as a student in the institution in graduate-level courses
    5-4  and who is employed at least 20 hours a week;
    5-5                          (iv)  who serves as a member of the
    5-6  governing board of an institution of higher education; or
    5-7                          (v)  who formerly served as a member of the
    5-8  governing board of an institution of higher education and was
    5-9  enrolled and participating on September 1, 1992, in coverage under
   5-10  this Act.
   5-11        SECTION 4.  The Texas State College and University Employees
   5-12  Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
   5-13  Insurance Code) is amended by adding Section 11A to read as
   5-14  follows:
   5-15        Sec. 11A.  PREMIUM PAYMENTS BY MEMBERS OF GOVERNING BOARD OF
   5-16  INSTITUTION OF HIGHER EDUCATION.  (a)  An active or former member
   5-17  of the governing board of an institution of higher education is
   5-18  entitled to receive coverage under this Act only if that member
   5-19  pays all premium costs related to that coverage.
   5-20        (b)  Each institution may adopt rules as necessary to
   5-21  implement this section.
   5-22        SECTION 5.  This Act takes effect September 1, 1993, and
   5-23  applies only to a group life, accident, or health insurance plan
   5-24  that is delivered, issued for delivery, or renewed under the Texas
   5-25  Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
    6-1  Vernon's Texas Insurance Code) or the Texas State College and
    6-2  University Employees Uniform Insurance Benefits Act (Article
    6-3  3.50-3, Vernon's Texas Insurance Code), on or after January 1,
    6-4  1994.  A plan that is delivered, issued for delivery, or renewed
    6-5  before January 1, 1994, is governed by the law as it existed
    6-6  immediately before the effective date of this Act, and that law is
    6-7  continued in effect for that purpose.
    6-8        SECTION 6.  The importance of this legislation and the
    6-9  crowded condition of the calendars in both houses create an
   6-10  emergency and an imperative public necessity that the
   6-11  constitutional rule requiring bills to be read on three several
   6-12  days in each house be suspended, and this rule is hereby suspended.