1-1 By: Truan, et al. S.B. No. 404
1-2 (In the Senate - Filed February 18, 1993; February 22, 1993,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; March 25, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 8, Nays 2;
1-6 March 25, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 404 By: Armbrister
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the right of certain municipal and county employees to
1-24 purchase a continuation of health benefits coverage at retirement.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Subtitle C, Title 5, Local Government Code, is
1-27 amended by adding Chapter 174 to read as follows:
1-28 CHAPTER 174. RIGHT OF CERTAIN MUNICIPAL AND COUNTY
1-29 EMPLOYEES TO PURCHASE CONTINUED HEALTH COVERAGE AT RETIREMENT
1-30 Sec. 174.001. APPLICABILITY. This chapter applies to a
1-31 person who is leaving county employment in a county with a
1-32 population of 75,000 or more or municipal employment in a
1-33 municipality with a population of 10,000 or more.
1-34 Sec. 174.002. RIGHT TO PURCHASE CONTINUED COVERAGE. (a) A
1-35 person to whom this chapter applies who retires or has enough
1-36 credit in the governmental retirement plan that covers the person
1-37 to be able to retire with full benefits at an attained age is
1-38 entitled to purchase continued health benefits coverage for the
1-39 person and the person's dependents as provided by this chapter.
1-40 The coverage shall be provided under the group health insurance
1-41 plan or group health coverage plan provided by or through the
1-42 employing county or municipality to its employees. If the plan
1-43 that provided coverage while the person was employed by the county
1-44 or municipality is terminated, the coverage shall be provided under
1-45 the successor to that plan.
1-46 (b) To receive continued coverage under this chapter, the
1-47 person must inform the employing county or municipality, not later
1-48 than the 90th day after the date the person leaves employment with
1-49 the county or municipality, that the person elects to continue
1-50 coverage.
1-51 Sec. 174.003. LEVEL OF COVERAGE. (a) The person may elect
1-52 to cover the same persons who were covered under the county's or
1-53 municipality's group health insurance plan or group health coverage
1-54 plan through the person at the time the person left county or
1-55 municipal employment, or the person may elect to discontinue
1-56 coverage for one or more persons. A person who was not covered
1-57 under the plan at the time the person to whom this chapter applies
1-58 left county or municipal employment is not eligible for coverage
1-59 under this chapter.
1-60 (b) Except as provided by Subsections (c) and (d), the level
1-61 of coverage provided under this chapter at any given time is the
1-62 same level of coverage provided to current employees of the county
1-63 or municipality at that time.
1-64 (c) A county or municipality may substitute Medicare
1-65 supplement health benefits coverage as the coverage provided for a
1-66 person who receives health benefits coverage under this chapter,
1-67 including a dependent, after the date that the person becomes
1-68 eligible for federal Medicare benefits.
2-1 (d) The person may elect to continue coverage at a reduced
2-2 level, if offered by the county or municipality.
2-3 Sec. 174.004. PAYMENT FOR COVERAGE. A person who is
2-4 entitled to continued coverage under this chapter is entitled to
2-5 make payments for the coverage at the same time and to the same
2-6 entity that payments for the coverage are made by current employees
2-7 of the county or municipality.
2-8 Sec. 174.005. DUTY TO INFORM RETIREE OF RIGHTS. A county
2-9 and a municipality shall provide written notice to a person to whom
2-10 this chapter may apply of the person's rights under this chapter
2-11 not later than the date the person leaves employment with the
2-12 county or municipality.
2-13 Sec. 174.006. CERTAIN MATTERS NOT AFFECTED. This chapter
2-14 does not:
2-15 (1) prohibit a county or municipality from uniformly
2-16 changing the group health insurance plan or group health coverage
2-17 plan provided for its employees and retirees;
2-18 (2) affect the definition of a dependent or the
2-19 eligibility requirements for a dependent under a plan, except as
2-20 provided by Section 174.003(c);
2-21 (3) prohibit a county or municipality from agreeing
2-22 with a person to deduct the cost of coverage provided under this
2-23 chapter from a pension check;
2-24 (4) prohibit a county or municipality from increasing
2-25 the cost of group health coverage to its employees and to persons
2-26 covered under this chapter to reflect the increased cost, if any,
2-27 attributable to compliance with this chapter;
2-28 (5) affect the right of a county or municipality to
2-29 provide coverage under Chapter 172; or
2-30 (6) affect the right of a county or municipality to
2-31 offer the coverage at the same rate that is available to active
2-32 employees or to offer the coverage at a reasonable rate established
2-33 for retirees that may be greater than the rate offered to active
2-34 employees.
2-35 Sec. 174.007. EXEMPTIONS. (a) A county or municipality
2-36 that does not provide health benefits coverage through a
2-37 self-insured plan or a plan authorized under Chapter 172 is not
2-38 required to provide coverage under this chapter if:
2-39 (1) the county or municipality makes a good faith
2-40 effort to purchase insurance coverage that includes coverage
2-41 required by this chapter from an insurance company authorized to do
2-42 business in this state but is unable to find a provider for the
2-43 coverage; or
2-44 (2) the majority of the employees of a county or
2-45 municipality vote by secret ballot to be exempted from this
2-46 chapter.
2-47 (b) If the majority of the employees of a county or
2-48 municipality vote to be exempted from this chapter as provided by
2-49 Subsection (a), a new election shall be held not earlier than the
2-50 first anniversary of the preceding election if at least 20 percent
2-51 of the employees petition the presiding officer of the county or
2-52 municipality for a new election.
2-53 SECTION 2. (a) Chapter 174, Local Government Code, as added
2-54 by this Act, applies according to its terms to all eligible persons
2-55 who leave county or municipal employment on or after October 1,
2-56 1993. In addition, notwithstanding Subsection (b), Section
2-57 174.002, Local Government Code, as added by this Act, a person who
2-58 leaves county or municipal employment before September 1, 1993, is
2-59 entitled to purchase continued health benefits coverage in
2-60 accordance with Chapter 174, Local Government Code, as added by
2-61 this Act, if:
2-62 (1) the person is purchasing health coverage for the
2-63 person or for the person's dependents from or through the county or
2-64 municipality on September 1, 1993; and
2-65 (2) the person informs the employing county or
2-66 municipality, before December 1, 1993, that the person elects to
2-67 purchase continued coverage as provided by Chapter 174, Local
2-68 Government Code, as added by this Act.
2-69 (b) A county or municipality that is required by Chapter
2-70 174, Local Government Code, as added by this Act, to provide
3-1 continued health benefits coverage but that is not allowed to
3-2 provide the coverage under the terms of the county's or
3-3 municipality's existing group health plan shall ensure that the
3-4 required continued health benefits coverage is provided for in any
3-5 plan that is adopted, amended, or renewed by the county or
3-6 municipality on or after September 1, 1993, unless the county or
3-7 municipality is exempted under Section 174.007, Local Government
3-8 Code, as added by this Act. The period during which a person must
3-9 inform a county or municipality that the person elects to continue
3-10 health benefits coverage under Chapter 174, Local Government Code,
3-11 as added by this Act, is extended by the amount of time that occurs
3-12 after the date that the person leaves county or municipal
3-13 employment and before the date that the person receives written
3-14 notice from the county or municipality that the person is presently
3-15 able to purchase the continued health benefits coverage required to
3-16 be provided under Chapter 174, Local Government Code, as added by
3-17 this Act.
3-18 SECTION 3. This Act takes effect September 1, 1993.
3-19 SECTION 4. The importance of this legislation and the
3-20 crowded condition of the calendars in both houses create an
3-21 emergency and an imperative public necessity that the
3-22 constitutional rule requiring bills to be read on three several
3-23 days in each house be suspended, and this rule is hereby suspended.
3-24 * * * * *
3-25 Austin,
3-26 Texas
3-27 March 25, 1993
3-28 Hon. Bob Bullock
3-29 President of the Senate
3-30 Sir:
3-31 We, your Committee on Intergovernmental Relations to which was
3-32 referred S.B. No. 404, have had the same under consideration, and I
3-33 am instructed to report it back to the Senate with the
3-34 recommendation that it do not pass, but that the Committee
3-35 Substitute adopted in lieu thereof do pass and be printed.
3-36 Armbrister,
3-37 Chairman
3-38 * * * * *
3-39 WITNESSES
3-40 FOR AGAINST ON
3-41 ___________________________________________________________________
3-42 Name: Frank Sturzl x
3-43 Representing: Texas Municipal League
3-44 City: Austin
3-45 -------------------------------------------------------------------
3-46 Name: Galloway Beck x
3-47 Representing: City of Austin
3-48 City: Austin
3-49 -------------------------------------------------------------------
3-50 Name: Ronald G. Delord x
3-51 Representing: CLEAT
3-52 City: Austin
3-53 -------------------------------------------------------------------
3-54 Name: LD Foster x
3-55 Representing: Police Officers Association
3-56 City: Corpus Christi
3-57 -------------------------------------------------------------------
3-58 Name: Dee Simpson x
3-59 Representing: Amer. Fed. State, County
3-60 Mun.
3-61 City: Austin
3-62 -------------------------------------------------------------------
3-63 FOR AGAINST ON
3-64 ___________________________________________________________________
3-65 Name: Jerry Clancy x
3-66 Representing: San Anton Police Officers As.
3-67 City: San Antonio
3-68 -------------------------------------------------------------------
3-69 Name: Ken Bailey x
3-70 Representing: Tx State Assn of Fire Fighter
4-1 City: Austin
4-2 -------------------------------------------------------------------
4-3 Name: Carvel L. McNeil Jr. x
4-4 Representing: Houston Police Patrolmen's Un
4-5 City: Houston
4-6 -------------------------------------------------------------------
4-7 Name: T. A. Britt x
4-8 Representing: Houston Police Officers Assoc
4-9 City: Houston
4-10 -------------------------------------------------------------------
4-11 Name: Rick Mumey x
4-12 Representing: Houston Proff. Fire Fightr As
4-13 City: Houston
4-14 -------------------------------------------------------------------
4-15 Name: D. L. Dally Willis x
4-16 Representing: Communications Workers of Am.
4-17 City: Midland
4-18 -------------------------------------------------------------------
4-19 Name: Greg Powell x
4-20 Representing: AFSCWE Local - Austin
4-21 City: Austin
4-22 -------------------------------------------------------------------