By Maxey, Raymond H.B. No. 1033
74R4205 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to health and workers' compensation insurance coverage
1-3 providing benefits to employees of the state and local governments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 3, Insurance Code, is
1-6 amended by adding Article 3.50-2A to read as follows:
1-7 Art. 3.50-2A. STATE EMPLOYEE GROUP INSURANCE CONSOLIDATION
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Committee" means the committee for consolidation
1-10 of state employee group insurance.
1-11 (2) "Compensable injury" has the meaning assigned by
1-12 Section 401.011, Labor Code.
1-13 (3) "Consolidated program" means the program of group
1-14 insurance benefits offered to state employees, including employees
1-15 of The University of Texas System and The Texas A&M University
1-16 System under Section 3A, Texas Employees Uniform Group Insurance
1-17 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code).
1-18 (4) "Political subdivision" means a county,
1-19 municipality, or special purpose district, including a school
1-20 district.
1-21 (5) "Trustee" means the board of trustees provided by
1-22 Chapter 815, Government Code, to administer the Employees
1-23 Retirement System of Texas.
1-24 Sec. 2. COMMITTEE. (a) The committee for consolidation of
2-1 state employee group insurance is composed of eleven members as
2-2 follows:
2-3 (1) three members, one each appointed by the governor,
2-4 lieutenant governor, and speaker of the house of representatives,
2-5 representing the Employees Retirement System of Texas and selected
2-6 from the board of trustees or employees of the Employees Retirement
2-7 System of Texas familiar with the state employee group insurance
2-8 program;
2-9 (2) three members, one each appointed by the governor,
2-10 lieutenant governor, and speaker of the house of representatives,
2-11 representing The University of Texas System and selected from the
2-12 governing body or employees of The University of Texas System
2-13 familiar with The University of Texas System employee group
2-14 insurance program;
2-15 (3) three members, one each appointed by the governor,
2-16 lieutenant governor, and speaker of the house of representatives,
2-17 representing The Texas A&M University System and selected from the
2-18 governing body or employees of The Texas A&M University System
2-19 familiar with The Texas A&M University System employee group
2-20 insurance program;
2-21 (4) one member appointed by the governor from the
2-22 employees of The University of Texas System to represent the
2-23 interests of those employees; and
2-24 (5) one member appointed by the governor from the
2-25 employees of The Texas A&M University System to represent the
2-26 interests of those employees.
2-27 (b) A person is not eligible for appointment as a member of
3-1 the committee if the person or the person's spouse:
3-2 (1) owns or controls, directly or indirectly, more
3-3 than a 10 percent interest in a business entity or other
3-4 organization receiving funds from the Texas Employees Uniform Group
3-5 Insurance Benefits Program or from a program established under the
3-6 Texas State College and University Employees Uniform Insurance
3-7 Benefits Act (Article 3.50-3, Vernon's Texas Insurance Code); or
3-8 (2) uses or receives a substantial amount of tangible
3-9 goods, services, or funds from the committee, from the Texas
3-10 Employees Uniform Group Insurance Benefits Program, or from a
3-11 program established under the Texas State College and University
3-12 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
3-13 Texas Insurance Code) other than compensation for employment or
3-14 reimbursement authorized by law for committee membership,
3-15 attendance, or expenses.
3-16 (c) A person who is required to register as a lobbyist under
3-17 Chapter 305, Government Code, because of the person's activities
3-18 for compensation in or on behalf of a profession related to the
3-19 operation of the committee or the business of insurance may not
3-20 serve as a member.
3-21 (d) Appointments to the committee shall be made without
3-22 regard to the race, color, disability, sex, sexual orientation,
3-23 religion, age, or national origin of the appointees.
3-24 (e) It is a ground for removal from the committee if the
3-25 member:
3-26 (1) does not have at the time of appointment the
3-27 qualifications required in this section for appointment to the
4-1 committee;
4-2 (2) does not maintain during the member's service on
4-3 the committee the qualifications required by this section for
4-4 appointment to the committee;
4-5 (3) violates a prohibition established by this
4-6 section;
4-7 (4) is unable to discharge the member's duties for a
4-8 substantial part of the term for which the member was appointed
4-9 because of illness or disability; or
4-10 (5) is absent from more than half of the regularly
4-11 scheduled meetings of the committee that the member is eligible to
4-12 attend during each calendar year or is absent from more than two
4-13 consecutive regularly scheduled committee meetings that the member
4-14 is eligible to attend, except when the absence is excused by a
4-15 majority vote of the committee.
4-16 (f) If the presiding officer of the committee has knowledge
4-17 that a potential ground for removal of a member of the committee
4-18 exists, the presiding officer shall notify the appointing official.
4-19 (g) If a vacancy occurs, the appropriate appointing official
4-20 shall appoint, in the same manner as the original appointment, a
4-21 person to serve for the remainder of the unexpired term.
4-22 (h) The governor shall appoint one member as chairman.
4-23 (i) A member of the committee is not entitled to
4-24 compensation but is entitled to reimbursement for actual and
4-25 necessary expenses incurred in performing committee duties.
4-26 (j) The committee shall meet at the call of the chairman.
4-27 Sec. 3. DUTIES OF COMMITTEE. (a) The committee shall study
5-1 the consolidation of the Texas Employees Uniform Group Insurance
5-2 Benefits Program with the programs operated for employees of The
5-3 University of Texas System and The Texas A&M University System
5-4 under Section 3A, Texas Employees Uniform Group Insurance Benefits
5-5 Act (Article 3.50-2, Vernon's Texas Insurance Code), and shall:
5-6 (1) make recommendations to the trustee relating to
5-7 the consolidated program, including recommendations relating to:
5-8 (A) the overall program structure and plan
5-9 designs;
5-10 (B) the range of plans offered by the program;
5-11 and
5-12 (C) the premium rates to be paid for coverage
5-13 under the program;
5-14 (2) obtain an independent actuarial study of the
5-15 consolidation under Section 3A, Texas Employees Uniform Group
5-16 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
5-17 Code), before the consolidation becomes effective, to be used by
5-18 the committee in making its recommendations under Subdivision (1)
5-19 of this subsection;
5-20 (3) monitor implementation of the consolidated program
5-21 offered by the trustee to ensure that:
5-22 (A) employees covered by the program are not
5-23 required to pay higher premiums as a result of the consolidation;
5-24 and
5-25 (B) benefits provided to the employees under the
5-26 consolidated program are comparable to benefits provided before
5-27 consolidation; and
6-1 (4) not later than December 1, 1995, report to the
6-2 Legislative Budget Board on the effect of consolidation on covered
6-3 employees and state costs, including reductions in premiums and
6-4 out-of-pocket costs for different plan designs, estimates of
6-5 administrative savings, and recommendations to increase program
6-6 efficiency.
6-7 (b) The committee shall study the practices of the trustee
6-8 and the governing body of The University of Texas System and The
6-9 Texas A&M University System in negotiating with health maintenance
6-10 organizations for coverage and shall, not later than December 1,
6-11 1995, report the results of its study, together with
6-12 recommendations for improving negotiations under the consolidated
6-13 program, to the Legislative Budget Board.
6-14 (c) The committee shall study consolidating coverage
6-15 providing workers' compensation medical benefits with coverage
6-16 providing other health care benefits to state employees by covering
6-17 health care for compensable injuries and for other injuries and
6-18 diseases under a single premium. Not later than December 1, 1996,
6-19 the committee shall report to the lieutenant governor and the
6-20 speaker of the house of representatives on this proposed
6-21 consolidation and the implications of requiring covered employees
6-22 to pay a portion of the costs for medical benefits for compensable
6-23 injuries.
6-24 (d) The committee shall develop a program, to be implemented
6-25 by the trustee, to encourage political subdivisions to participate
6-26 in plans under Section 3B, Texas Employees Uniform Group Insurance
6-27 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code). The
7-1 program may not result in additional costs or any reduction in
7-2 benefits for state, local government, or school district employees.
7-3 (e) In performing its duties under this article, the
7-4 committee shall consult with the group benefits advisory committee
7-5 appointed or elected under Section 18, Texas Employees Uniform
7-6 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
7-7 Insurance Code).
7-8 Sec. 4. COMMITTEE ABOLISHED AND EXPIRATION OF ARTICLE. The
7-9 committee is abolished and this article expires June 1, 1997.
7-10 SECTION 2. Section 3(a)(18), Texas Employees Uniform Group
7-11 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
7-12 Code), is amended to read as follows:
7-13 (18) "Institution of higher education" means any
7-14 public community/junior college or senior college or university, or
7-15 any other agency of higher education within the meaning and
7-16 jurisdiction of Chapter 61, Education Code, except The University
7-17 of Texas System and The Texas A&M University System. Effective
7-18 September 1, 1996, the term includes The University of Texas System
7-19 and The Texas A&M University System. <The term does not include
7-20 Texas Tech University and the University of Houston System unless
7-21 either of these entities elects to participate in accordance with
7-22 Section 3A of this Act.>
7-23 SECTION 3. Section 3(a), Texas Employees Uniform Group
7-24 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
7-25 Code), is amended by adding Subdivision (24) to read as follows:
7-26 (24) "Political subdivision" means a county,
7-27 municipality, or special purpose district, including a school
8-1 district.
8-2 SECTION 4. Section 3A, Texas Employees Uniform Group
8-3 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
8-4 Code), is amended to read as follows:
8-5 Sec. 3A. CONSOLIDATION OF PROGRAMS AT CERTAIN INSTITUTIONS
8-6 <MAY ELECT TO PARTICIPATE>. (a) Effective September 1, 1996, the
8-7 Texas Employees Uniform Group Insurance Benefits Program shall
8-8 provide the plans of group coverages offered to employees under the
8-9 program to employees of The University of Texas System and The
8-10 Texas A&M University System. On and after September 1, 1996, The
8-11 University of Texas System and The Texas A&M University System may
8-12 not independently provide similar group coverages to employees.
8-13 <Texas Tech University, the University of Houston System, or both
8-14 may participate in the Texas Employees Uniform Group Insurance
8-15 Benefits Program administered by the Employees Retirement System of
8-16 Texas under this Act. The university or system must notify the
8-17 trustee of its election to participate not later than April 1,
8-18 1992.>
8-19 (b) The trustee may adopt rules to implement this section,
8-20 including rules relating to payment of employee and employer
8-21 contributions.
8-22 SECTION 5. The Texas Employees Uniform Group Insurance
8-23 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
8-24 amended by adding Sections 3B and 5B to read as follows:
8-25 Sec. 3B. EMPLOYEES OF POLITICAL SUBDIVISIONS. (a) A
8-26 political subdivision may participate in the Texas Employees
8-27 Uniform Group Insurance Benefits Program administered by the
9-1 Employees Retirement System of Texas under this Act.
9-2 (b) The trustee shall implement the plan developed by the
9-3 committee for consolidation of state employee group insurance to
9-4 encourage the participation of political subdivisions in the Texas
9-5 Employees Uniform Group Insurance Benefits Program.
9-6 (c) The trustee may adopt rules to implement participation
9-7 of the employees of a political subdivision under this section,
9-8 including rules relating to the definitions of "annuitant,"
9-9 "employee," and "employer" as used with respect to employees of
9-10 political subdivisions, election of representatives of employees of
9-11 political subdivisions to serve on the group benefits advisory
9-12 committee established under Section 18 of this Act, and payment of
9-13 employee and employer contributions.
9-14 Sec. 5B. COVERAGE FOR COMPENSABLE INJURY. (a) Each health
9-15 benefits plan provided to employees under this Act shall provide
9-16 medical benefits for injuries for which the employer is liable for
9-17 compensation under Subtitle C, Title 5, Labor Code. The employee's
9-18 employer shall pay any copayment, coinsurance, or deductible
9-19 applicable to medical benefits for a compensable injury.
9-20 (b) Premiums for coverage for medical benefits under this
9-21 section shall be determined separately from premiums for other
9-22 health benefits provided by the health benefits plan. An employer
9-23 may not require that an employee contribute to the cost of coverage
9-24 for medical benefits.
9-25 (c) The trustee shall adopt rules to implement this section,
9-26 including rules governing:
9-27 (1) payment of employer contributions for premiums for
10-1 coverage for medical benefits under this section;
10-2 (2) the definition of "employee" with respect to
10-3 individuals whose employment terminates after a compensable injury
10-4 occurs;
10-5 (3) medical benefits coverage for eligible employees
10-6 not otherwise covered by a health benefits plan;
10-7 (4) medical benefits coverage for employees not
10-8 eligible for coverage under a health benefits plan but eligible for
10-9 benefits for compensable injuries under Chapter 501, 502, 503, or
10-10 505, Labor Code, or, with respect to employees of political
10-11 subdivisions that participate in the program under Section 3B of
10-12 this Act, under Chapter 504, Labor Code; and
10-13 (5) continuation of medical benefits for employees
10-14 receiving those benefits under Chapter 501, 502, 503, 504, or 505,
10-15 Labor Code, before September 1, 1996.
10-16 SECTION 6. Section 18(a), Texas Employees Uniform Group
10-17 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
10-18 Code), is amended to read as follows:
10-19 (a) The group benefits advisory committee is composed of 27
10-20 voting members as provided by this section plus additional voting
10-21 members elected in accordance with rules adopted by the trustee
10-22 under Section 3B of this Act. The office of the attorney general,
10-23 the office of the state treasurer, the office of the comptroller,
10-24 the Railroad Commission of Texas, the General Land Office, and the
10-25 Department of Agriculture are entitled to be represented by one
10-26 member each on the committee, who may be appointed by the governing
10-27 body of the state agency or elected by and from the employees of
11-1 the agency, as determined by rule by the governing body of the
11-2 agency. One employee shall be elected from each of the remaining
11-3 eight largest state agencies that are governed by appointed
11-4 officers by and from the employees of those agencies. One
11-5 nonvoting member shall be the executive director of the Employees
11-6 Retirement System of Texas. One member shall be an expert in
11-7 employee benefit issues from the private sector, appointed by the
11-8 governor. One member shall be an expert in employee benefits
11-9 issues from the private sector, appointed by the lieutenant
11-10 governor. One member shall be a retired state employee appointed
11-11 by the trustee. One member shall be a state employee of a state
11-12 agency other than one of the eight largest state agencies,
11-13 appointed by the trustee. Not more than one employee from a
11-14 particular state agency may serve on the committee. Each of the
11-15 nine <seven> largest institutions of higher education, as
11-16 determined by the number of employees on the payroll of an
11-17 institution, shall elect one member of the committee from among
11-18 persons who have each been nominated by a petition signed by at
11-19 least 300 employees. Two members shall be employees of
11-20 institutions of higher education, other than the nine <seven>
11-21 largest institutions of higher education, who are appointed by the
11-22 Texas Higher Education Coordinating Board, but not more than one
11-23 employee shall be from any one institution. The members shall
11-24 elect a presiding officer from their membership to serve a one-year
11-25 term.
11-26 SECTION 7. The Texas State College and University Employees
11-27 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
12-1 Insurance Code) is amended by adding Sections 3A and 21 to read as
12-2 follows:
12-3 Sec. 3A. ADMINISTRATION BY TRUSTEE. (a) In this section,
12-4 "trustee" means the board of trustees provided by Chapter 815,
12-5 Government Code, to administer the Employees Retirement System of
12-6 Texas.
12-7 (b) Effective September 1, 1995, the trustee shall
12-8 administer the Texas State College and University Employees Uniform
12-9 Insurance Benefits Program for the benefit of the employees of
12-10 institutions covered by the program on that date. The trustee
12-11 shall perform each duty imposed on an institution under this
12-12 article and may exercise any power granted to an institution under
12-13 this article.
12-14 (c) The governing body of each institution covered by the
12-15 program shall cooperate with the trustee in the transition and, as
12-16 soon as possible but not later than September 1, 1995, shall
12-17 transfer any computer records, documents, or other information
12-18 necessary for the administration of the program to the trustee.
12-19 Sec. 21. EXPIRATION. This article expires September 1,
12-20 1996.
12-21 SECTION 8. Article 3.50-5, Insurance Code, is amended by
12-22 adding Subsection (g) to read as follows:
12-23 (g) This article expires September 1, 1996.
12-24 SECTION 9. Section 501.002(a), Labor Code, is amended to
12-25 read as follows:
12-26 (a) The following provisions of Subtitles A and B apply to
12-27 and are included in this chapter except to the extent that they are
13-1 inconsistent with this chapter:
13-2 (1) Chapter 401, other than Section 401.012 defining
13-3 "employee";
13-4 (2) Chapter 402;
13-5 (3) Chapter 403, other than Sections 403.001-403.005;
13-6 (4) Chapter 405;
13-7 (5) Subchapters B and D through H, Chapter 406, other
13-8 than Sections 406.071(a), 406.073, and 406.075;
13-9 (6) Chapter 408, other than Sections 408.001(b) and
13-10 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
13-11 (7) Chapters 409 and 410;
13-12 (8) Subchapters A and G, Chapter 411, other than
13-13 Sections 411.003 and 411.004;
13-14 (9) Chapters 412-417; and
13-15 (10) Chapter 451.
13-16 SECTION 10. Section 501.023, Labor Code, is amended to read
13-17 as follows:
13-18 Sec. 501.023. STATE SELF-INSURING. Except as provided by
13-19 Section 501.0235, the <The> state is self-insuring with respect to
13-20 an employee's compensable injury.
13-21 SECTION 11. Subchapter B, Chapter 501, Labor Code, is
13-22 amended by adding Section 501.0235 to read as follows:
13-23 Sec. 501.0235. MEDICAL BENEFITS. The state shall provide
13-24 medical benefits through the Texas Employees Uniform Group
13-25 Insurance Benefits Program established under the Texas Employees
13-26 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
13-27 Texas Insurance Code).
14-1 SECTION 12. Section 501.043(a), Labor Code, is amended to
14-2 read as follows:
14-3 (a) The director shall:
14-4 (1) adopt procedural rules and prescribe forms
14-5 necessary for the effective administration of this chapter; <and>
14-6 (2) adopt and enforce reasonable rules for the
14-7 prevention of accidents and injuries; and
14-8 (3) cooperate with the board of trustees of the
14-9 Employees Retirement System of Texas in implementing and
14-10 administering coverage for medical benefits under the Texas
14-11 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
14-12 Vernon's Texas Insurance Code).
14-13 SECTION 13. Section 502.002(a), Labor Code, is amended to
14-14 read as follows:
14-15 (a) The following provisions of Subtitle A apply to and are
14-16 included in this chapter except to the extent that they are
14-17 inconsistent with this chapter:
14-18 (1) Chapter 401, other than Section 401.012 defining
14-19 "employee";
14-20 (2) Chapter 402;
14-21 (3) Chapter 403, other than Sections 403.001-403.005;
14-22 (4) Chapter 405;
14-23 (5) Sections 406.031-406.033; Subchapter D, Chapter
14-24 406; Sections 406.092 and 406.093;
14-25 (6) Chapter 408, other than Sections 408.001(b) and
14-26 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
14-27 (7) Chapters 409 and 410;
15-1 (8) Subchapters A and G, Chapter 411, other than
15-2 Sections 411.003 and 411.004; and
15-3 (9) Chapters 412-417.
15-4 SECTION 14. Section 502.021, Labor Code, is amended by
15-5 adding Subsection (e) to read as follows:
15-6 (e) This section does not apply to medical benefits.
15-7 SECTION 15. Section 502.022, Labor Code, is amended to read
15-8 as follows:
15-9 Sec. 502.022. AUTHORITY TO SELF-INSURE. Except as provided
15-10 by Section 502.0225, an <An> institution may self-insure.
15-11 SECTION 16. Subchapter B, Chapter 502, Labor Code, is
15-12 amended by adding Section 502.0225 to read as follows:
15-13 Sec. 502.0225. MEDICAL BENEFITS. Each institution shall
15-14 provide medical benefits through the Texas Employees Uniform Group
15-15 Insurance Benefits Program established under the Texas Employees
15-16 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
15-17 Texas Insurance Code).
15-18 SECTION 17. Section 502.061, Labor Code, is amended by
15-19 amending Subsection (a) and adding Subsection (d) to read as
15-20 follows:
15-21 (a) Except as provided by Subsection (d), each <Each>
15-22 institution shall administer this chapter.
15-23 (d) Each institution shall cooperate with the board of
15-24 trustees of the Employees Retirement System of Texas in
15-25 implementing and administering coverage for medical benefits under
15-26 the Texas Employees Uniform Group Insurance Benefits Act (Article
15-27 3.50-2, Vernon's Texas Insurance Code).
16-1 SECTION 18. Section 503.002(a), Labor Code, is amended to
16-2 read as follows:
16-3 (a) The following provisions of Subtitle A apply to and are
16-4 included in this chapter except to the extent that they are
16-5 inconsistent with this chapter:
16-6 (1) Chapter 401, other than Section 401.012 defining
16-7 "employee";
16-8 (2) Chapter 402;
16-9 (3) Chapter 403, other than Sections 403.001-403.005;
16-10 (4) Chapter 405;
16-11 (5) Sections 406.031-406.033; Subchapter D, Chapter
16-12 406; Sections 406.092 and 406.093;
16-13 (6) Chapter 408, other than Sections 408.001(b) and
16-14 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
16-15 (7) Chapters 409 and 410;
16-16 (8) Subchapters A and G, Chapter 411, other than
16-17 Sections 411.003 and 411.004; and
16-18 (9) Chapters 412-417.
16-19 SECTION 19. Section 503.021, Labor Code, is amended by
16-20 adding Subsection (e) to read as follows:
16-21 (e) This section does not apply to medical benefits.
16-22 SECTION 20. Section 503.022, Labor Code, is amended to read
16-23 as follows:
16-24 Sec. 503.022. AUTHORITY TO SELF-INSURE. Except as provided
16-25 by Section 503.0225, an <An> institution may self-insure.
16-26 SECTION 21. Subchapter B, Chapter 503, Labor Code, is
16-27 amended by adding Section 503.0225 to read as follows:
17-1 Sec. 503.0225. MEDICAL BENEFITS. Each institution shall
17-2 provide medical benefits through the Texas Employees Uniform Group
17-3 Insurance Benefits Program established under the Texas Employees
17-4 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
17-5 Texas Insurance Code).
17-6 SECTION 22. Section 503.061, Labor Code, is amended by
17-7 amending Subsection (a) and adding Subsection (d) to read as
17-8 follows:
17-9 (a) Except as provided by Subsection (d), each <Each>
17-10 institution shall administer this chapter.
17-11 (d) Each institution shall cooperate with the board of
17-12 trustees of the Employees Retirement System of Texas in
17-13 implementing and administering coverage for medical benefits under
17-14 the Texas Employees Uniform Group Insurance Benefits Act (Article
17-15 3.50-2, Vernon's Texas Insurance Code).
17-16 SECTION 23. Section 504.002, Labor Code, is amended by
17-17 amending Subsection (a) and adding Subsection (d) to read as
17-18 follows:
17-19 (a) Except as provided by Subsection (d), the <The>
17-20 following provisions of Subtitles A and B apply to and are
17-21 included in this chapter except to the extent that they are
17-22 inconsistent with this chapter:
17-23 (1) Chapter 401, other than Section 401.011(18)
17-24 defining "employer" and Section 401.012 defining "employee";
17-25 (2) Chapter 402;
17-26 (3) Chapter 403, other than Sections 403.001-403.005;
17-27 (4) Chapter 405;
18-1 (5) Subchapters B and D-G, Chapter 406, other than
18-2 Sections 406.033, 406.034, 406.035, 406.091, and 406.096;
18-3 (6) Chapter 408, other than Sections 408.001(b) and
18-4 (c);
18-5 (7) Chapters 409-417; and
18-6 (8) Chapter 451.
18-7 (d) Sections 408.021(c), 408.022, 408.023, 408.024, 408.027,
18-8 and 408.028 do not apply to a political subdivision that elects to
18-9 provide a health benefits plan to its employees under Section 3B,
18-10 Texas Employees Uniform Group Insurance Benefits Act (Article
18-11 3.50-2, Vernon's Texas Insurance Code).
18-12 SECTION 24. Section 504.011, Labor Code, is amended to read
18-13 as follows:
18-14 Sec. 504.011. METHOD OF PROVIDING COVERAGE. (a) Except as
18-15 provided by Subsection (b), a <A> political subdivision shall
18-16 extend workers' compensation benefits to its employees by:
18-17 (1) becoming a self-insurer;
18-18 (2) providing insurance under a workers' compensation
18-19 insurance policy; or
18-20 (3) entering into an interlocal agreement with other
18-21 political subdivisions providing for self-insurance.
18-22 (b) A political subdivision that elects to provide a health
18-23 benefits plan to its employees under Section 3B, Texas Employees
18-24 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
18-25 Texas Insurance Code), shall provide medical benefits in accordance
18-26 with Section 5B of that Act.
18-27 SECTION 25. Section 505.002(a), Labor Code, is amended to
19-1 read as follows:
19-2 (a) The following provisions of Subtitles A and B apply to
19-3 and are included in this chapter except to the extent that they are
19-4 inconsistent with this chapter:
19-5 (1) Chapter 401, other than Section 401.012, defining
19-6 "employee";
19-7 (2) Chapter 402;
19-8 (3) Chapter 403, other than Sections 403.001-403.005;
19-9 (4) Chapter 405;
19-10 (5) Subchapters B, D, E, and H, Chapter 406, other
19-11 than Sections 406.071-406.073, and 406.075;
19-12 (6) Chapter 408, other than Sections 408.001(b) and
19-13 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
19-14 (7) Chapters 409 and 410;
19-15 (8) Subchapters A and G, Chapter 411, other than
19-16 Sections 411.003 and 411.004;
19-17 (9) Chapters 412-417; and
19-18 (10) Chapter 451.
19-19 SECTION 26. Section 505.012, Labor Code, is amended to read
19-20 as follows:
19-21 Sec. 505.012. AUTHORITY TO SELF-INSURE. Except as provided
19-22 by Section 505.0125, the <The> department may self-insure.
19-23 SECTION 27. Subchapter B, Chapter 505, Labor Code, is
19-24 amended by adding Section 505.0125 to read as follows:
19-25 Sec. 505.0125. MEDICAL BENEFITS. The department shall
19-26 provide medical benefits through the Texas Employees Uniform Group
19-27 Insurance Benefits Program established under the Texas Employees
20-1 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
20-2 Texas Insurance Code).
20-3 SECTION 28. Section 505.051, Labor Code, is amended by
20-4 amending Subsection (a) and adding Subsection (d) to read as
20-5 follows:
20-6 (a) Except as provided by Subsection (d), the <The>
20-7 department shall administer this chapter.
20-8 (d) The department shall cooperate with the board of
20-9 trustees of the Employees Retirement System of Texas in
20-10 implementing and administering coverage for medical benefits under
20-11 the Texas Employees Uniform Group Insurance Benefits Act (Article
20-12 3.50-2, Vernon's Texas Insurance Code).
20-13 SECTION 29. (a) Except as provided by Section 30 of this
20-14 Act, this Act applies only to a group benefits plan issued,
20-15 delivered, or issued for delivery under the Texas Employees Uniform
20-16 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
20-17 Insurance Code), as amended by this Act, or the Texas State College
20-18 and University Employees Uniform Insurance Benefits Act (Article
20-19 3.50-3, Vernon's Texas Insurance Code), as amended by this Act, on
20-20 or after September 1, 1995.
20-21 (b) A group benefits plan issued, delivered, or issued for
20-22 delivery under the Texas Employees Uniform Group Insurance Benefits
20-23 Act (Article 3.50-2, Vernon's Texas Insurance Code), as amended by
20-24 this Act, or the Texas State College and University Employees
20-25 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
20-26 Insurance Code), before September 1, 1995, is governed by the law
20-27 applicable to the plan immediately before the effective date of
21-1 this Act, and that law is continued in effect for this purpose.
21-2 SECTION 30. (a) Section 5B, Texas Employees Uniform Group
21-3 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
21-4 Code), as added by this Act, and the change in law made by this Act
21-5 to Chapters 501, 502, 503, 504, and 505, Labor Code, apply only to
21-6 medical benefits payable under the Texas Workers' Compensation Act
21-7 (Subtitle A, Title 5, Labor Code) on or after September 1, 1996.
21-8 (b) Medical benefits payable under the Texas Workers'
21-9 Compensation Act (Subtitle A, Title 5, Labor Code) before September
21-10 1, 1996, are governed by the law applicable to those benefits
21-11 immediately before the effective date of this Act and that law is
21-12 continued in effect for this purpose.
21-13 SECTION 31. The importance of this legislation and the
21-14 crowded condition of the calendars in both houses create an
21-15 emergency and an imperative public necessity that the
21-16 constitutional rule requiring bills to be read on three several
21-17 days in each house be suspended, and this rule is hereby suspended,
21-18 and that this Act take effect and be in force from and after its
21-19 passage, and it is so enacted.