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.