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.