By Thompson                                     H.B. No. 1539

      75R6704 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to group health insurance for retirees of the Teacher

 1-3     Retirement System of Texas.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 8(h), Article 3.50-4, Insurance Code, is

 1-6     amended to read as follows:

 1-7           (h)  Each contract shall be based on the terms and conditions

 1-8     agreed on between the trustee and the carrier or carriers selected

 1-9     to provide the insurance coverage and benefits.  Any contract for

1-10     group insurance awarded by the trustee must:

1-11                 (1)  meet the minimum benefit and financial standards

1-12     adopted by the trustee; and

1-13                 (2)  provide that each class of retirees receives

1-14     similar coverage for similar premiums, including any premiums paid

1-15     by a retiree for supplementary medical insurance benefits under

1-16     Part B of Medicare.

1-17           SECTION 2.  This Act takes effect September 1, 1997.

1-18           SECTION 3.  The importance of this legislation and the

1-19     crowded condition of the calendars in both houses create an

1-20     emergency and an imperative public necessity that the

1-21     constitutional rule requiring bills to be read on three several

1-22     days in each house be suspended, and this rule is hereby suspended.