By Chisum H.B. No. 87
74R252 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of a local government to extend employee
1-3 benefits to a person related to the employee.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle C, Title 5, Local Government Code, is
1-6 amended by adding Chapter 176 to read as follows:
1-7 CHAPTER 176. AUTHORITY OF POLITICAL SUBDIVISION TO EXTEND
1-8 EMPLOYEE BENEFITS TO PERSON RELATED TO EMPLOYEE
1-9 Sec. 176.001. DEFINITIONS. In this chapter:
1-10 (1) "Collateral benefits" includes accident, health,
1-11 disability, and dental insurance benefits.
1-12 (2) "Political subdivision" has the meaning assigned
1-13 by Section 172.003(2).
1-14 Sec. 176.002. PROHIBITION. A political subdivision may not
1-15 extend collateral benefits an employee receives as a result of
1-16 employment with the political subdivision to another person
1-17 designated by the employee unless:
1-18 (1) the person is related to the employee within the
1-19 third degree by consanguinity or affinity, as determined by
1-20 Subchapter B, Chapter 573, Government Code; or
1-21 (2) the employee is the guardian of the person.
1-22 Sec. 176.003. DEATH BENEFITS. This chapter does not
1-23 prohibit a political subdivision from paying life insurance
1-24 benefits or other death benefits to a designated beneficiary.
2-1 SECTION 2. Chapter 176, Local Government Code, as added by
2-2 this Act, does not apply to benefits extended under a contract made
2-3 before September 1, 1995. After the term of the contract ends, the
2-4 contract may not be extended or renewed if it continues to include
2-5 a provision prohibited by this chapter.
2-6 SECTION 3. This Act takes effect September 1, 1995.
2-7 SECTION 4. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended.