By: Madla S.B. No. 143
73R882 PB-D
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
1-24 814.002 or 814.102, Government Code;
2-1 (B) the jurisdiction of the Teacher Retirement
2-2 System of Texas and either receives an annuity or is eligible to
2-3 receive an annuity, pursuant to Subtitle C, Title 8, Government
2-4 Code, that is based on at least 10 years of service credit, whose
2-5 last state employment prior to retirement was as an employee of the
2-6 Teacher Retirement System of Texas, school districts established
2-7 within state eleemosynary institutions, the Texas Rehabilitation
2-8 Commission, the Central Education Agency, the Texas Higher
2-9 Education Coordinating Board, or an institution of higher
2-10 education;
2-11 (C) the optional retirement program established
2-12 by Chapter 830, Government Code, and either receives an annuity or
2-13 is eligible to receive an annuity under that program, if the
2-14 person's last state employment before retirement, including
2-15 employment by a public community/junior college, was as an officer
2-16 or employee of the Texas Higher Education Coordinating Board or an
2-17 institution of higher education; or
2-18 (D) any other federal or state statutory
2-19 retirement program to which an institution of higher education has
2-20 made employer contributions, if the employee has met service
2-21 requirements, age requirements, and other applicable requirements
2-22 comparable to the requirements for retirement under the Teacher
2-23 Retirement System of Texas, based on at least 10 years of service
2-24 credit, and if the person either:
2-25 (i) would have been eligible to retire and
2-26 receive a service retirement annuity from the Teacher Retirement
2-27 System of Texas based on at least 10 years of service credit had
3-1 the person not elected to participate in the optional retirement
3-2 program; or
3-3 (ii) is disabled.
3-4 (3) "Carrier" shall mean a qualified carrier as
3-5 defined in this Act.
3-6 (4) "Department" shall mean commission, board, agency,
3-7 division, institution of higher education, or department of the
3-8 State of Texas created as such by the constitution or statutes of
3-9 this state.
3-10 (5) "State employee <(A) "Employee>" shall mean any
3-11 appointive or elective state officer or employee in the service of
3-12 the State of Texas, including an employee of an institution of
3-13 higher education:
3-14 (A) <(i)> who is retired or retires and is an
3-15 annuitant under the jurisdiction of the Employees Retirement System
3-16 of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
3-17 Government Code, who is retired or retires and is an annuitant
3-18 under the jurisdiction of the Teacher Retirement System of Texas,
3-19 pursuant to Subtitle C, Title 8, Government Code, whose last
3-20 employment with the state prior to retirement was as an employee of
3-21 the Teacher Retirement System of Texas, school districts
3-22 established within state eleemosynary institutions, the Texas
3-23 Rehabilitation Commission, the Central Education Agency, the Texas
3-24 Higher Education Coordinating Board, or an institution of higher
3-25 education, or who is retired or retires and is an annuitant under
3-26 the optional retirement program established by Chapter 830,
3-27 Government Code, if the person's last state employment before
4-1 retirement, including employment by a public community/junior
4-2 college, was as an officer or employee of the Texas Higher
4-3 Education Coordinating Board, or an institution of higher
4-4 education, and if the person either:
4-5 (i) <(a)> would have been eligible to
4-6 retire and receive a service retirement annuity from the Teacher
4-7 Retirement System of Texas had the person not elected to
4-8 participate in the optional retirement program; or
4-9 (ii) <(b)> is disabled;
4-10 (B) <(ii)> who receives his compensation for
4-11 services rendered to the State of Texas on a warrant issued
4-12 pursuant to a payroll certified by a department or by an elected or
4-13 duly appointed officer of this state;
4-14 (C) <(iii)> who receives payment for the
4-15 performance of personal services on a warrant issued pursuant to a
4-16 payroll certified by a department and drawn by the State
4-17 Comptroller of Public Accounts upon the State Treasurer against
4-18 appropriations made by the Texas Legislature from any state funds
4-19 or against any trust funds held by the State Treasurer or who is
4-20 paid from funds of an official budget of a state department, rather
4-21 than from funds of the General Appropriations Act;
4-22 (D) <(iv)> who is appointed, subject to
4-23 confirmation of the senate, as a member of a board or commission
4-24 with administrative responsibility over a statutory agency having
4-25 statewide jurisdiction whose employees are covered by this Act;
4-26 (E) <(v)> who receives compensation for services
4-27 rendered to an institution of higher education on a warrant or
5-1 check issued pursuant to a payroll certified by an institution of
5-2 higher education or by an elected or duly appointed officer of this
5-3 state, and who is eligible for participation in the Teacher
5-4 Retirement System of Texas; or
5-5 (F) <(vi)> who receives compensation for
5-6 services rendered to an institution of higher education as provided
5-7 by this subdivision but is not permitted to be a member of the
5-8 Teacher Retirement System of Texas because the person is solely
5-9 employed by an institution of higher education that as a condition
5-10 of employment requires the person to be enrolled as a student in an
5-11 institution of higher education in graduate-level courses and who
5-12 is employed by the institution at least 20 hours a week.
5-13 <(B) Persons performing personal services for
5-14 the State of Texas or for an institution of higher education as
5-15 independent contractors shall never be considered employees of the
5-16 state for purposes of this Act.>
5-17 (6) "Employer" shall mean the State of Texas, all its
5-18 departments, and any participating school district.
5-19 (7) "Health benefits plan" shall mean any group policy
5-20 or contract, medical, dental, or hospital service agreement,
5-21 membership or subscription contract, salary continuation plan,
5-22 health maintenance organization agreement, preferred provider
5-23 arrangement, or any similar group arrangement or any combination of
5-24 those policies, plans, contracts, agreements, or arrangements
5-25 provided for the purpose of providing, paying for, or reimbursing
5-26 expenses for health care services, including comparable health care
5-27 services for employees who rely solely on spiritual means through
6-1 prayer for healing in accordance with the teaching of a well
6-2 recognized church or denomination.
6-3 (8) "Dependent" shall mean the spouse of an employee
6-4 or retired employee and an unmarried child under 25 years of age,
6-5 including: (A) an adopted child and (B) a stepchild, foster child,
6-6 or other child who is in a regular parent-child relationship and
6-7 (C) any such child, regardless of age, who lives with or whose care
6-8 is provided by an employee or annuitant on a regular basis if such
6-9 child is mentally retarded or physically incapacitated to such an
6-10 extent as to be dependent upon the employee or retired employee for
6-11 care or support, as the trustee shall determine.
6-12 (9) "Qualified carrier" shall mean: (A) any insurance
6-13 company authorized to do business in this state by the State Board
6-14 of Insurance to provide any of the types of insurance coverages,
6-15 benefits, or services provided for in this Act under any of the
6-16 insurance laws of the State of Texas, which has a surplus of $1
6-17 million, a successful operating history, and which has had
6-18 successful experience in providing and servicing any of the types
6-19 of group coverage provided for in this Act as determined by the
6-20 State Board of Insurance; (B) any corporation operating under
6-21 Chapter 20 of the Insurance Code which provides any of the types of
6-22 coverage, benefits, or services provided for in this Act, a
6-23 successful operating history, and which has had successful
6-24 experience in providing and servicing any of the types of group
6-25 coverage provided for in this Act as determined by the State Board
6-26 of Insurance; or (C) any combination or carriers as herein defined,
6-27 upon such terms and conditions as may be prescribed by the trustee,
7-1 providing, however, that for purposes of this Act carriers
7-2 combining for the purpose of bidding and/or underwriting this
7-3 program shall not be considered in violation of Sections 15.01
7-4 through 15.26 <15.34>, Chapter 15, Title 2, Competition and Trade
7-5 Practices, Texas Business & Commerce Code.
7-6 (10) "Service" shall mean any personal service of an
7-7 employee creditable in accordance with rules and regulations
7-8 promulgated by the trustee.
7-9 (11) "Trustee" shall mean the Board of Trustees
7-10 provided for in Chapter 815, Government Code, to administer the
7-11 Employees Retirement System of Texas.
7-12 (12) "Active employee plan" shall mean a plan or
7-13 program of group coverages as determined by the trustee <as defined
7-14 in Paragraph (11) above> for the benefit of employees <as defined
7-15 in this Act> who are not retired.
7-16 (13) "Retired employees plan" shall mean a plan or
7-17 program of group coverages as determined by the trustee for all
7-18 retired employees <as defined in this Act>. This plan may be
7-19 separate or a part of the active employee plan at the discretion of
7-20 the trustee, and, if separate, shall include both full benefits and
7-21 supplemental coverage options.
7-22 (14) "Part-time employee" shall mean, for purposes of
7-23 this Act, an employee designated by his employing agency as working
7-24 less than 20 hours per week. <A part-time state employee shall
7-25 receive the benefits of one-half the amount of the state's
7-26 contribution received by full-time employees.>
7-27 (15) "Full-time employee" shall mean, for purposes of
8-1 this Act, an employee designated by his employing agency as working
8-2 20 or more hours per week. <A full-time state employee shall
8-3 receive the benefits of a full state contribution for coverage
8-4 under this Act.>
8-5 (16) "Basic coverage" shall mean the programs of group
8-6 coverages determined by the trustee in which every full-time
8-7 employee and every annuitant participates automatically unless
8-8 participation is specifically waived.
8-9 (17) "Cafeteria plan" means a plan as defined and
8-10 authorized by Section 125, Internal Revenue Code of 1986 (26 U.S.C.
8-11 Sec. 125).
8-12 (18) "Institution of higher education" means any
8-13 public community/junior college or senior college or university, or
8-14 any other agency of higher education within the meaning and
8-15 jurisdiction of Chapter 61, Education Code, except The University
8-16 of Texas System and The Texas A&M University System. The term does
8-17 not include Texas Tech University and the University of Houston
8-18 System unless either of these entities elects to participate in
8-19 accordance with Section 3A of this Act.
8-20 (19) For the purposes of this section, "serious mental
8-21 illness" means the following psychiatric illnesses as defined by
8-22 the American Psychiatric Association in the Diagnostic and
8-23 Statistical Manual (DSM) III-R:
8-24 (A) schizophrenia;
8-25 (B) paranoid and other psychotic disorders;
8-26 (C) bipolar disorders (mixed, manic, and
8-27 depressive);
9-1 (D) major depressive disorders (single episode
9-2 or recurrent); and
9-3 (E) schizo-affective disorders (bipolar or
9-4 depressive).
9-5 (20) <(19)> "The University of Texas System" means the
9-6 entities listed or described in Section 65.02, Education Code.
9-7 (21) <(19)> "Participating school district" means a
9-8 school district that has elected to participate in the Texas
9-9 employees uniform group insurance program under Section 3A of this
9-10 Act.
9-11 (22) <(20)> "The Texas A&M University System" means
9-12 the entities governed under Chapters 85 through 88, Education Code,
9-13 and includes the Texas Veterinary Diagnostic Laboratory.
9-14 (23) <(20)> "School district employee" means a
9-15 participating member of the Teacher Retirement System who is
9-16 employed by a participating school district and who is not covered
9-17 by a group insurance program authorized by Chapter 32, Acts of the
9-18 65th Legislature, Regular Session, 1977 (Article 3.50-3, Vernon's
9-19 Texas Insurance Code), but does not include a person performing
9-20 personal services for a school district as an independent
9-21 contractor.
9-22 (24) <(21)> "Texas Tech University" means Texas Tech
9-23 University, the Texas Tech University Museum, and the Texas Tech
9-24 University Health Sciences Center.
9-25 (25) <(21)> "School district" means a public school
9-26 district.
9-27 (26) <(22)> "University of Houston System" means the
10-1 entities governed under Section 111.20, Education Code.
10-2 (27) <(22)> "Employee" means a state employee or a
10-3 school district employee.
10-4 (b) A person who performs personal services as an
10-5 independent contractor for this state or for an institution of
10-6 higher education is not an employee for the purposes of this Act.
10-7 (c) In addition to the foregoing definitions, the trustee
10-8 shall have authority to define by rule any words in terms necessary
10-9 in the administration of this Act.
10-10 (d) <(c)> Notwithstanding Subsection (a)(2) of this section,
10-11 a person who, before September 1, 1991, retired under Subtitle C,
10-12 Title 8, Government Code, with at least 5 but less than 10 years of
10-13 service is also an annuitant for purposes of this Act.
10-14 SECTION 2. The Texas Employees Uniform Group Insurance
10-15 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
10-16 amended by adding Section 14A to read as follows:
10-17 Sec. 14A. EFFECT OF PART-TIME EMPLOYMENT. (a) A full-time
10-18 state employee shall receive the benefits of a full state
10-19 contribution for coverage under this Act.
10-20 (b) A part-time state employee who is an employee of a
10-21 public community/junior college, and any other part-time state
10-22 employee who is not an employee of an institution of higher
10-23 education, shall receive the benefits of one-half the amount of the
10-24 state's contribution for coverage under this Act for full-time
10-25 state employees.
10-26 SECTION 3. This Act takes effect September 1, 1993.
10-27 SECTION 4. The importance of this legislation and the
11-1 crowded condition of the calendars in both houses create an
11-2 emergency and an imperative public necessity that the
11-3 constitutional rule requiring bills to be read on three several
11-4 days in each house be suspended, and this rule is hereby suspended.