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.