By Montford S.B. No. 408
74R3033 GCH-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 or retired employees or annuitants.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter E, Chapter 3, Insurance Code, is
1-7 amended by adding Article 3.50-2A to read as follows:
1-8 Art. 3.50-2A. STATE EMPLOYEE GROUP INSURANCE CONSOLIDATION
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Committee" means the committee for consolidation
1-11 of state employee group insurance.
1-12 (2) "Compensable injury" has the meaning assigned by
1-13 Section 401.011, Labor Code.
1-14 (3) "Consolidated program" means the program of group
1-15 insurance benefits offered to state employees, including employees
1-16 of The University of Texas System and The Texas A&M University
1-17 System under Section 3A, Texas Employees Uniform Group Insurance
1-18 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code).
1-19 (4) "Political subdivision" means a county,
1-20 municipality, or special purpose district, including a school
1-21 district.
1-22 (5) "Trustee" means the board of trustees provided by
1-23 Chapter 815, Government Code, to administer the Employees
1-24 Retirement System of Texas.
2-1 Sec. 2. COMMITTEE. (a) The committee for consolidation of
2-2 state employee group insurance is composed of nine members as
2-3 follows:
2-4 (1) three members, one each appointed by the governor,
2-5 lieutenant governor, and speaker of the house of representatives,
2-6 representing the Employees Retirement System of Texas and selected
2-7 from the board of trustees or employees of the Employees Retirement
2-8 System of Texas familiar with the state employee group insurance
2-9 program;
2-10 (2) three members, one each appointed by the governor,
2-11 lieutenant governor, and speaker of the house of representatives,
2-12 representing The University of Texas System and selected from the
2-13 governing body or employees of The University of Texas System
2-14 familiar with The University of Texas System employee group
2-15 insurance program; and
2-16 (3) three members, one each appointed by the governor,
2-17 lieutenant governor, and speaker of the house of representatives,
2-18 representing The Texas A&M University System and selected from the
2-19 governing body or employees of The Texas A&M University System
2-20 familiar with The Texas A&M University System employee group
2-21 insurance program.
2-22 (b) A person is not eligible for appointment as a member of
2-23 the committee if the person or the person's spouse:
2-24 (1) owns or controls, directly or indirectly, more
2-25 than a 10 percent interest in a business entity or other
2-26 organization receiving funds from the Texas Employees Uniform Group
2-27 Insurance Benefits Program or from a program established under the
3-1 Texas State College and University Employees Uniform Insurance
3-2 Benefits Act (Article 3.50-3, Vernon's Texas Insurance Code); or
3-3 (2) uses or receives a substantial amount of tangible
3-4 goods, services, or funds from the committee, from the Texas
3-5 Employees Uniform Group Insurance Benefits Program, or from a
3-6 program established under the Texas State College and University
3-7 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
3-8 Texas Insurance Code) other than compensation for employment or
3-9 reimbursement authorized by law for committee membership,
3-10 attendance, or expenses.
3-11 (c) A person who is required to register as a lobbyist under
3-12 Chapter 305, Government Code, because of the person's activities
3-13 for compensation in or on behalf of a profession related to the
3-14 operation of the committee or the business of insurance may not
3-15 serve as a member.
3-16 (d) Appointments to the committee shall be made without
3-17 regard to the race, color, disability, sex, religion, age, or
3-18 national origin of the appointees.
3-19 (e) It is a ground for removal from the committee if the
3-20 member:
3-21 (1) does not have at the time of appointment the
3-22 qualifications required in this section for appointment to the
3-23 committee;
3-24 (2) does not maintain during the member's service on
3-25 the committee the qualifications required by this section for
3-26 appointment to the committee;
3-27 (3) violates a prohibition established by this
4-1 section;
4-2 (4) is unable to discharge the member's duties for a
4-3 substantial part of the term for which the member was appointed
4-4 because of illness or disability; or
4-5 (5) is absent from more than half of the regularly
4-6 scheduled meetings of the committee that the member is eligible to
4-7 attend during each calendar year or is absent from more than two
4-8 consecutive regularly scheduled committee meetings that the member
4-9 is eligible to attend, except when the absence is excused by a
4-10 majority vote of the committee.
4-11 (f) If the presiding officer of the committee has knowledge
4-12 that a potential ground for removal of a member of the committee
4-13 exists, the presiding officer shall notify the appointing official.
4-14 (g) If a vacancy occurs, the appropriate appointing official
4-15 shall appoint, in the same manner as the original appointment, a
4-16 person to serve for the remainder of the unexpired term.
4-17 (h) The governor shall appoint one member as chairman.
4-18 (i) A member of the committee is not entitled to
4-19 compensation but is entitled to reimbursement for actual and
4-20 necessary expenses incurred in performing committee duties.
4-21 (j) The committee shall meet at the call of the chairman.
4-22 Sec. 3. DUTIES OF COMMITTEE. (a) The committee shall study
4-23 the consolidation of the Texas Employees Uniform Group Insurance
4-24 Benefits Program with the programs operated for employees of The
4-25 University of Texas System and The Texas A&M University System
4-26 under Section 3A, Texas Employees Uniform Group Insurance Benefits
4-27 Act (Article 3.50-2, Vernon's Texas Insurance Code), and shall:
5-1 (1) make recommendations to the trustee relating to
5-2 the consolidated program, including recommendations relating to:
5-3 (A) the overall program structure and plan
5-4 designs;
5-5 (B) the range of plans offered by the program;
5-6 and
5-7 (C) the premium rates to be paid for coverage
5-8 under the program;
5-9 (2) obtain an independent actuarial study of the
5-10 consolidation under Section 3A, Texas Employees Uniform Group
5-11 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
5-12 Code), before the consolidation becomes effective, to be used by
5-13 the committee in making its recommendations under Subdivision (1)
5-14 of this subsection;
5-15 (3) monitor implementation of the consolidated program
5-16 offered by the trustee to ensure that:
5-17 (A) employees covered by the program are not
5-18 required to pay higher premiums as a result of the consolidation;
5-19 and
5-20 (B) benefits provided to the employees under the
5-21 consolidated program are comparable to benefits provided before
5-22 consolidation; and
5-23 (4) not later than December 1, 1995, report to the
5-24 Legislative Budget Board on the effect of consolidation on covered
5-25 employees and state costs, including reductions in premiums and
5-26 out-of-pocket costs for different plan designs, estimates of
5-27 administrative savings, and recommendations to increase program
6-1 efficiency.
6-2 (b) The committee shall study the practices of the trustee
6-3 and the governing body of The University of Texas System and The
6-4 Texas A&M University System in negotiating with health maintenance
6-5 organizations for coverage and shall, not later than December 1,
6-6 1995, report the results of its study, together with
6-7 recommendations for improving negotiations under the consolidated
6-8 program, to the Legislative Budget Board.
6-9 (c) The committee shall study consolidating coverage
6-10 providing workers' compensation medical benefits with coverage
6-11 providing other health care benefits to state employees by covering
6-12 health care for compensable injuries and for other injuries and
6-13 diseases under a single premium. Not later than December 1, 1996,
6-14 the committee shall report to the lieutenant governor and the
6-15 speaker of the house of representatives on this proposed
6-16 consolidation and the implications of requiring covered employees
6-17 to pay a portion of the costs for medical benefits for compensable
6-18 injuries.
6-19 (d) The committee shall develop a program, to be implemented
6-20 by the trustee, to encourage political subdivisions to participate
6-21 in plans under Section 3B, Texas Employees Uniform Group Insurance
6-22 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code). The
6-23 program may not result in additional costs or any reduction in
6-24 benefits for state, local government, or school district employees.
6-25 (e) In performing its duties under this article, the
6-26 committee shall consult with the group benefits advisory committee
6-27 appointed or elected under Section 18, Texas Employees Uniform
7-1 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
7-2 Insurance Code).
7-3 Sec. 4. COMMITTEE ABOLISHED AND EXPIRATION OF ARTICLE. The
7-4 committee is abolished and this article expires June 1, 1997.
7-5 SECTION 2. Section 3(a)(18), Texas Employees Uniform Group
7-6 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
7-7 Code), is amended to read as follows:
7-8 (18) "Institution of higher education" means any
7-9 public community/junior college or senior college or university, or
7-10 any other agency of higher education within the meaning and
7-11 jurisdiction of Chapter 61, Education Code, except The University
7-12 of Texas System and The Texas A&M University System. Effective
7-13 September 1, 1996, the term includes The University of Texas System
7-14 and The Texas A&M University System. <The term does not include
7-15 Texas Tech University and the University of Houston System unless
7-16 either of these entities elects to participate in accordance with
7-17 Section 3A of this Act.>
7-18 SECTION 3. Section 3(a), Texas Employees Uniform Group
7-19 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
7-20 Code), is amended by adding Subdivision (24) to read as follows:
7-21 (24) "Political subdivision" means a county,
7-22 municipality, or special purpose district, including a school
7-23 district.
7-24 SECTION 4. Section 3A, Texas Employees Uniform Group
7-25 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
7-26 Code), is amended to read as follows:
7-27 Sec. 3A. CONSOLIDATION OF PROGRAMS AT CERTAIN INSTITUTIONS
8-1 <MAY ELECT TO PARTICIPATE>. (a) Effective September 1, 1996, the
8-2 Texas Employees Uniform Group Insurance Benefits Program shall
8-3 provide the plans of group coverages offered to employees under the
8-4 program to employees of The University of Texas System and The
8-5 Texas A&M University System <Texas Tech University, the University
8-6 of Houston System, or both may participate in the Texas Employees
8-7 Uniform Group Insurance Benefits Program administered by the
8-8 Employees Retirement System of Texas under this Act. The
8-9 university or system must notify the trustee of its election to
8-10 participate not later than April 1, 1992>.
8-11 (b) The trustee may adopt rules to implement this section,
8-12 including rules relating to election of representatives of the
8-13 employees of The University of Texas System and The Texas A&M
8-14 University System to serve on the group benefits advisory committee
8-15 established under Section 18 of this Act and payment of employee
8-16 and employer contributions.
8-17 SECTION 5. The Texas Employees Uniform Group Insurance
8-18 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
8-19 amended by adding Sections 3B, 5B, and 5C to read as follows:
8-20 Sec. 3B. EMPLOYEES OF POLITICAL SUBDIVISIONS. (a) A
8-21 political subdivision may participate in the Texas Employees
8-22 Uniform Group Insurance Benefits Program administered by the
8-23 Employees Retirement System of Texas under this Act.
8-24 (b) The trustee shall implement the plan developed by the
8-25 committee for consolidation of state employee group insurance to
8-26 encourage the participation of political subdivisions in the Texas
8-27 Employees Uniform Group Insurance Benefits Program.
9-1 (c) The trustee may adopt rules to implement participation
9-2 of the employees of a political subdivision under this section,
9-3 including rules relating to the definitions of "annuitant,"
9-4 "employee," and "employer" as used with respect to employees of
9-5 political subdivisions, election of representatives of employees of
9-6 political subdivisions to serve on the group benefits advisory
9-7 committee established under Section 18 of this Act, and payment of
9-8 employee and employer contributions.
9-9 Sec. 5B. COVERAGE FOR COMPENSABLE INJURY. (a) Each health
9-10 benefits plan provided to employees under this Act shall provide
9-11 medical benefits for injuries for which the employer is liable for
9-12 compensation under Subtitle C, Title 5, Labor Code. The employee's
9-13 employer shall pay any copayment, coinsurance, or deductible
9-14 applicable to medical benefits for a compensable injury.
9-15 (b) Premiums for coverage for medical benefits under this
9-16 section shall be determined separately from premiums for other
9-17 health benefits provided by the health benefits plan. An employer
9-18 may not require that an employee contribute to the cost of coverage
9-19 for medical benefits.
9-20 (c) The trustee shall adopt rules to implement this section,
9-21 including rules governing:
9-22 (1) payment of employer contributions for premiums for
9-23 coverage for medical benefits under this section;
9-24 (2) the definition of "employee" with respect to
9-25 individuals whose employment terminates after a compensable injury
9-26 occurs;
9-27 (3) medical benefits coverage for eligible employees
10-1 not otherwise covered by a health benefits plan;
10-2 (4) medical benefits coverage for employees not
10-3 eligible for coverage under a health benefits plan but eligible for
10-4 benefits for compensable injuries under Chapter 501, 502, 503, or
10-5 505, Labor Code, or, with respect to employees of political
10-6 subdivisions that participate in the program under Section 3B of
10-7 this Act, under Chapter 504, Labor Code; and
10-8 (5) continuation of medical benefits for employees
10-9 receiving those benefits under Chapter 501, 502, 503, 504, or 505,
10-10 Labor Code, before September 1, 1996.
10-11 Sec. 5C. MEDICARE SUPPLEMENT COVERAGE. (a) The trustee
10-12 shall provide optional group Medicare supplement coverages for
10-13 employees, annuitants, and their dependents who are eligible to
10-14 receive Medicare. The group Medicare supplement coverages must
10-15 meet the requirements of Article 3.74, Insurance Code, for group
10-16 Medicare supplement policies. An employee or annuitant may not
10-17 enroll in a coverage provided under this section in addition to
10-18 other coverages provided under this Act.
10-19 (b) An employee or annuitant who enrolls in a coverage
10-20 provided under this section and for whom employer contributions are
10-21 made by the state is entitled to receive 40 percent of any amount
10-22 by which the premium for the basic coverage of the employee or
10-23 annuitant only is less than the premium for the coverage of an
10-24 employee or annuitant only under the coverage the employee or
10-25 annuitant had immediately before enrolling in a coverage provided
10-26 under this section.
10-27 (c) The amount to which an employee or annuitant may be
11-1 entitled under Subsection (b) is payable from employer
11-2 contributions made by the state to the Employees Life, Accident,
11-3 and Health Insurance and Benefits Fund. The trustee by rule shall
11-4 determine the manner and frequency of payments to be made under
11-5 this section.
11-6 SECTION 6. Section 18(a), Texas Employees Uniform Group
11-7 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
11-8 Code), is amended to read as follows:
11-9 (a) The group benefits advisory committee is composed of 27
11-10 voting members as provided by this section plus additional voting
11-11 members elected in accordance with rules adopted by the trustee
11-12 under Sections 3A and 3B of this Act. The office of the attorney
11-13 general, the office of the state treasurer, the office of the
11-14 comptroller, the Railroad Commission of Texas, the General Land
11-15 Office, and the Department of Agriculture are entitled to be
11-16 represented by one member each on the committee, who may be
11-17 appointed by the governing body of the state agency or elected by
11-18 and from the employees of the agency, as determined by rule by the
11-19 governing body of the agency. One employee shall be elected from
11-20 each of the remaining eight largest state agencies that are
11-21 governed by appointed officers by and from the employees of those
11-22 agencies. One nonvoting member shall be the executive director of
11-23 the Employees Retirement System of Texas. One member shall be an
11-24 expert in employee benefit issues from the private sector,
11-25 appointed by the governor. One member shall be an expert in
11-26 employee benefits issues from the private sector, appointed by the
11-27 lieutenant governor. One member shall be a retired state employee
12-1 appointed by the trustee. One member shall be a state employee of
12-2 a state agency other than one of the eight largest state agencies,
12-3 appointed by the trustee. Not more than one employee from a
12-4 particular state agency may serve on the committee. Each of the
12-5 seven largest institutions of higher education, other than The
12-6 University of Texas System or The Texas A&M University System, as
12-7 determined by the number of employees on the payroll of an
12-8 institution, shall elect one member of the committee from among
12-9 persons who have each been nominated by a petition signed by at
12-10 least 300 employees. Two members shall be employees of
12-11 institutions of higher education, other than the nine <seven>
12-12 largest institutions of higher education, who are appointed by the
12-13 Texas Higher Education Coordinating Board, but not more than one
12-14 employee shall be from any one institution. The members shall
12-15 elect a presiding officer from their membership to serve a one-year
12-16 term.
12-17 SECTION 7. The Texas State College and University Employees
12-18 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
12-19 Insurance Code) is amended by adding Sections 3A and 21 to read as
12-20 follows:
12-21 Sec. 3A. ADMINISTRATION BY TRUSTEE. (a) In this section,
12-22 "trustee" means the board of trustees provided by Chapter 815,
12-23 Government Code, to administer the Employees Retirement System of
12-24 Texas.
12-25 (b) Effective September 1, 1995, the trustee shall
12-26 administer the Texas State College and University Employees Uniform
12-27 Insurance Benefits Program for the benefit of the employees of
13-1 institutions covered by the program on that date. The trustee
13-2 shall perform each duty imposed on an institution under this
13-3 article and may exercise any power granted to an institution under
13-4 this article.
13-5 (c) The governing body of each institution covered by the
13-6 program shall cooperate with the trustee in the transition and, as
13-7 soon as possible but not later than September 1, 1995, shall
13-8 transfer any computer records, documents, or other information
13-9 necessary for the administration of the program to the trustee.
13-10 Sec. 21. EXPIRATION. This article expires September 1,
13-11 1996.
13-12 SECTION 8. Article 3.50-5, Insurance Code, is amended by
13-13 adding Subsection (g) to read as follows:
13-14 (g) This article expires September 1, 1996.
13-15 SECTION 9. Section 501.002(a), Labor Code, is amended to
13-16 read as follows:
13-17 (a) The following provisions of Subtitles A and B apply to
13-18 and are included in this chapter except to the extent that they are
13-19 inconsistent with this chapter:
13-20 (1) Chapter 401, other than Section 401.012 defining
13-21 "employee";
13-22 (2) Chapter 402;
13-23 (3) Chapter 403, other than Sections 403.001-403.005;
13-24 (4) Chapter 405;
13-25 (5) Subchapters B and D through H, Chapter 406, other
13-26 than Sections 406.071(a), 406.073, and 406.075;
13-27 (6) Chapter 408, other than Sections 408.001(b) and
14-1 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
14-2 (7) Chapters 409 and 410;
14-3 (8) Subchapters A and G, Chapter 411, other than
14-4 Sections 411.003 and 411.004;
14-5 (9) Chapters 412-417; and
14-6 (10) Chapter 451.
14-7 SECTION 10. Section 501.023, Labor Code, is amended to read
14-8 as follows:
14-9 Sec. 501.023. STATE SELF-INSURING. Except as provided by
14-10 Section 501.0235, the <The> state is self-insuring with respect to
14-11 an employee's compensable injury.
14-12 SECTION 11. Subchapter B, Chapter 501, Labor Code, is
14-13 amended by adding Section 501.0235 to read as follows:
14-14 Sec. 501.0235. MEDICAL BENEFITS. The state shall provide
14-15 medical benefits through the Texas Employees Uniform Group
14-16 Insurance Benefits Program established under the Texas Employees
14-17 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
14-18 Texas Insurance Code).
14-19 SECTION 12. Section 501.043(a), Labor Code, is amended to
14-20 read as follows:
14-21 (a) The director shall:
14-22 (1) adopt procedural rules and prescribe forms
14-23 necessary for the effective administration of this chapter; <and>
14-24 (2) adopt and enforce reasonable rules for the
14-25 prevention of accidents and injuries; and
14-26 (3) cooperate with the board of trustees of the
14-27 Employees Retirement System of Texas in implementing and
15-1 administering coverage for medical benefits under the Texas
15-2 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
15-3 Vernon's Texas Insurance Code).
15-4 SECTION 13. Section 502.002(a), Labor Code, is amended to
15-5 read as follows:
15-6 (a) The following provisions of Subtitle A apply to and are
15-7 included in this chapter except to the extent that they are
15-8 inconsistent with this chapter:
15-9 (1) Chapter 401, other than Section 401.012 defining
15-10 "employee";
15-11 (2) Chapter 402;
15-12 (3) Chapter 403, other than Sections 403.001-403.005;
15-13 (4) Chapter 405;
15-14 (5) Sections 406.031-406.033; Subchapter D, Chapter
15-15 406; Sections 406.092 and 406.093;
15-16 (6) Chapter 408, other than Sections 408.001(b) and
15-17 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
15-18 (7) Chapters 409 and 410;
15-19 (8) Subchapters A and G, Chapter 411, other than
15-20 Sections 411.003 and 411.004; and
15-21 (9) Chapters 412-417.
15-22 SECTION 14. Section 502.021, Labor Code, is amended by
15-23 adding Subsection (e) to read as follows:
15-24 (e) This section does not apply to medical benefits.
15-25 SECTION 15. Section 502.022, Labor Code, is amended to read
15-26 as follows:
15-27 Sec. 502.022. AUTHORITY TO SELF-INSURE. Except as provided
16-1 by Section 502.0225, an <An> institution may self-insure.
16-2 SECTION 16. Subchapter B, Chapter 502, Labor Code, is
16-3 amended by adding Section 502.0225 to read as follows:
16-4 Sec. 502.0225. MEDICAL BENEFITS. Each institution shall
16-5 provide medical benefits through the Texas Employees Uniform Group
16-6 Insurance Benefits Program established under the Texas Employees
16-7 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
16-8 Texas Insurance Code).
16-9 SECTION 17. Section 502.061, Labor Code, is amended by
16-10 amending Subsection (a) and adding Subsection (d) to read as
16-11 follows:
16-12 (a) Except as provided by Subsection (d), each <Each>
16-13 institution shall administer this chapter.
16-14 (d) Each institution shall cooperate with the board of
16-15 trustees of the Employees Retirement System of Texas in
16-16 implementing and administering coverage for medical benefits under
16-17 the Texas Employees Uniform Group Insurance Benefits Act (Article
16-18 3.50-2, Vernon's Texas Insurance Code).
16-19 SECTION 18. Section 503.002(a), Labor Code, is amended to
16-20 read as follows:
16-21 (a) The following provisions of Subtitle A apply to and are
16-22 included in this chapter except to the extent that they are
16-23 inconsistent with this chapter:
16-24 (1) Chapter 401, other than Section 401.012 defining
16-25 "employee";
16-26 (2) Chapter 402;
16-27 (3) Chapter 403, other than Sections 403.001-403.005;
17-1 (4) Chapter 405;
17-2 (5) Sections 406.031-406.033; Subchapter D, Chapter
17-3 406; Sections 406.092 and 406.093;
17-4 (6) Chapter 408, other than Sections 408.001(b) and
17-5 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
17-6 (7) Chapters 409 and 410;
17-7 (8) Subchapters A and G, Chapter 411, other than
17-8 Sections 411.003 and 411.004; and
17-9 (9) Chapters 412-417.
17-10 SECTION 19. Section 503.021, Labor Code, is amended by
17-11 adding Subsection (e) to read as follows:
17-12 (e) This section does not apply to medical benefits.
17-13 SECTION 20. Section 503.022, Labor Code, is amended to read
17-14 as follows:
17-15 Sec. 503.022. AUTHORITY TO SELF-INSURE. Except as provided
17-16 by Section 503.0225, an <An> institution may self-insure.
17-17 SECTION 21. Subchapter B, Chapter 503, Labor Code, is
17-18 amended by adding Section 503.0225 to read as follows:
17-19 Sec. 503.0225. MEDICAL BENEFITS. Each institution shall
17-20 provide medical benefits through the Texas Employees Uniform Group
17-21 Insurance Benefits Program established under the Texas Employees
17-22 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
17-23 Texas Insurance Code).
17-24 SECTION 22. Section 503.061, Labor Code, is amended by
17-25 amending Subsection (a) and adding Subsection (d) to read as
17-26 follows:
17-27 (a) Except as provided by Subsection (d), each <Each>
18-1 institution shall administer this chapter.
18-2 (d) Each institution shall cooperate with the board of
18-3 trustees of the Employees Retirement System of Texas in
18-4 implementing and administering coverage for medical benefits under
18-5 the Texas Employees Uniform Group Insurance Benefits Act (Article
18-6 3.50-2, Vernon's Texas Insurance Code).
18-7 SECTION 23. Section 504.002, Labor Code, is amended by
18-8 amending Subsection (a) and adding Subsection (d) to read as
18-9 follows:
18-10 (a) Except as provided by Subsection (d), the <The>
18-11 following provisions of Subtitles A and B apply to and are
18-12 included in this chapter except to the extent that they are
18-13 inconsistent with this chapter:
18-14 (1) Chapter 401, other than Section 401.011(18)
18-15 defining "employer" and Section 401.012 defining "employee";
18-16 (2) Chapter 402;
18-17 (3) Chapter 403, other than Sections 403.001-403.005;
18-18 (4) Chapter 405;
18-19 (5) Subchapters B and D-G, Chapter 406, other than
18-20 Sections 406.033, 406.034, 406.035, 406.091, and 406.096;
18-21 (6) Chapter 408, other than Sections 408.001(b) and
18-22 (c);
18-23 (7) Chapters 409-417; and
18-24 (8) Chapter 451.
18-25 (d) Sections 408.021(c), 408.022, 408.023, 408.024, 408.027,
18-26 and 408.028 do not apply to a political subdivision that elects to
18-27 provide a health benefits plan to its employees under Section 3B,
19-1 Texas Employees Uniform Group Insurance Benefits Act (Article
19-2 3.50-2, Vernon's Texas Insurance Code).
19-3 SECTION 24. Section 504.011, Labor Code, is amended to read
19-4 as follows:
19-5 Sec. 504.011. METHOD OF PROVIDING COVERAGE. (a) Except as
19-6 provided by Subsection (b), a <A> political subdivision shall
19-7 extend workers' compensation benefits to its employees by:
19-8 (1) becoming a self-insurer;
19-9 (2) providing insurance under a workers' compensation
19-10 insurance policy; or
19-11 (3) entering into an interlocal agreement with other
19-12 political subdivisions providing for self-insurance.
19-13 (b) A political subdivision that elects to provide a health
19-14 benefits plan to its employees under Section 3B, Texas Employees
19-15 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
19-16 Texas Insurance Code), shall provide medical benefits in accordance
19-17 with Section 5B of that Act.
19-18 SECTION 25. Section 505.002(a), Labor Code, is amended to
19-19 read as follows:
19-20 (a) The following provisions of Subtitles A and B apply to
19-21 and are included in this chapter except to the extent that they are
19-22 inconsistent with this chapter:
19-23 (1) Chapter 401, other than Section 401.012, defining
19-24 "employee";
19-25 (2) Chapter 402;
19-26 (3) Chapter 403, other than Sections 403.001-403.005;
19-27 (4) Chapter 405;
20-1 (5) Subchapters B, D, E, and H, Chapter 406, other
20-2 than Sections 406.071-406.073, and 406.075;
20-3 (6) Chapter 408, other than Sections 408.001(b) and
20-4 (c), 408.021(c), 408.022, 408.023, 408.024, 408.027, and 408.028;
20-5 (7) Chapters 409 and 410;
20-6 (8) Subchapters A and G, Chapter 411, other than
20-7 Sections 411.003 and 411.004;
20-8 (9) Chapters 412-417; and
20-9 (10) Chapter 451.
20-10 SECTION 26. Section 505.012, Labor Code, is amended to read
20-11 as follows:
20-12 Sec. 505.012. AUTHORITY TO SELF-INSURE. Except as provided
20-13 by Section 505.0125, the <The> department may self-insure.
20-14 SECTION 27. Subchapter B, Chapter 505, Labor Code, is
20-15 amended by adding Section 505.0125 to read as follows:
20-16 Sec. 505.0125. MEDICAL BENEFITS. The department shall
20-17 provide medical benefits through the Texas Employees Uniform Group
20-18 Insurance Benefits Program established under the Texas Employees
20-19 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
20-20 Texas Insurance Code).
20-21 SECTION 28. Section 505.051, Labor Code, is amended by
20-22 amending Subsection (a) and adding Subsection (d) to read as
20-23 follows:
20-24 (a) Except as provided by Subsection (d), the <The>
20-25 department shall administer this chapter.
20-26 (d) The department shall cooperate with the board of
20-27 trustees of the Employees Retirement System of Texas in
21-1 implementing and administering coverage for medical benefits under
21-2 the Texas Employees Uniform Group Insurance Benefits Act (Article
21-3 3.50-2, Vernon's Texas Insurance Code).
21-4 SECTION 29. (a) Except as provided by Section 30 of this
21-5 Act, this Act applies only to a group benefits plan issued,
21-6 delivered, or issued for delivery under the Texas Employees Uniform
21-7 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
21-8 Insurance Code), as amended by this Act, or the Texas State College
21-9 and University Employees Uniform Insurance Benefits Act (Article
21-10 3.50-3, Vernon's Texas Insurance Code), as amended by this Act, on
21-11 or after September 1, 1995.
21-12 (b) A group benefits plan issued, delivered, or issued for
21-13 delivery under the Texas Employees Uniform Group Insurance Benefits
21-14 Act (Article 3.50-2, Vernon's Texas Insurance Code), as amended by
21-15 this Act, or the Texas State College and University Employees
21-16 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
21-17 Insurance Code), before September 1, 1995, is governed by the law
21-18 applicable to the plan immediately before the effective date of
21-19 this Act, and that law is continued in effect for this purpose.
21-20 SECTION 30. (a) Section 5B, Texas Employees Uniform Group
21-21 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
21-22 Code), as added by this Act, and the change in law made by this Act
21-23 to Chapters 501, 502, 503, 504, and 505, Labor Code, apply only to
21-24 medical benefits payable under the Texas Workers' Compensation Act
21-25 (Subtitle A, Title 5, Labor Code) on or after September 1, 1996.
21-26 (b) Medical benefits payable under the Texas Workers'
21-27 Compensation Act (Subtitle A, Title 5, Labor Code) before September
22-1 1, 1996, are governed by the law applicable to those benefits
22-2 immediately before the effective date of this Act and that law is
22-3 continued in effect for this purpose.
22-4 SECTION 31. The importance of this legislation and the
22-5 crowded condition of the calendars in both houses create an
22-6 emergency and an imperative public necessity that the
22-7 constitutional rule requiring bills to be read on three several
22-8 days in each house be suspended, and this rule is hereby suspended,
22-9 and that this Act take effect and be in force from and after its
22-10 passage, and it is so enacted.