By Talton H.B. No. 2740 74R7945 GCH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to group health insurance for retirees of certain 1-3 municipalities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 142, Local Government Code, is amended by 1-6 adding Section 142.0041 to read as follows: 1-7 Sec. 142.0041. GROUP HEALTH INSURANCE FOR RETIREES OF 1-8 GENERAL-LAW MUNICIPALITIES. (a) In this section: 1-9 (1) "Health insurance plan" means a group, blanket, or 1-10 franchise insurance policy, insurance agreement, group hospital 1-11 service contract, or other employee benefit plan that provides 1-12 benefits for health care services or for medical or surgical 1-13 expenses incurred as a result of an accident or sickness. The term 1-14 includes a health maintenance organization or other entity that 1-15 provides the services directly. 1-16 (2) "Retiree of a municipality" means a person who has 1-17 terminated employment with a municipality and is receiving an 1-18 annuity because of service performed for the municipality. The 1-19 term includes a person retired because of disability. 1-20 (b) A general-law municipality that provides a health 1-21 insurance plan for employees of the municipality shall allow 1-22 retirees of the municipality to participate in the health insurance 1-23 plan. If a plan authorizes coverage for spouses or dependents of 1-24 the employees, the municipality shall allow the retirees of the 2-1 municipality to include their spouses or dependents in the coverage 2-2 of the plan. 2-3 (c) This section does not require a municipality to pay any 2-4 portion of the premium for coverage of a retiree of the 2-5 municipality, or a spouse or dependent of a retiree, in a health 2-6 insurance plan. 2-7 SECTION 2. (a) This Act takes effect September 1, 1995. 2-8 (b) If the terms of a contract in effect on August 31, 1995, 2-9 between a general-law municipality and a provider of benefits or 2-10 services under a health insurance plan prohibit participation in 2-11 the plan by retirees or their spouses or dependents, the 2-12 municipality is not required to comply with Section 142.0041, 2-13 Local Government Code, as added by this Act, until the existing 2-14 contract expires or is renewed. 2-15 SECTION 3. The importance of this legislation and the 2-16 crowded condition of the calendars in both houses create an 2-17 emergency and an imperative public necessity that the 2-18 constitutional rule requiring bills to be read on three several 2-19 days in each house be suspended, and this rule is hereby suspended.