By Wilson H.B. No. 1785
75R3559 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to dependent coverage under the state employees uniform
1-3 group insurance program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3(a)(8), Texas Employees Uniform Group
1-6 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
1-7 Code), is amended to read as follows:
1-8 (8) "Dependent" shall mean the spouse or domestic
1-9 partner of an employee or retired employee and an unmarried child
1-10 under 25 years of age, including: (A) an adopted child and (B) a
1-11 stepchild, foster child, or other child who is in a regular
1-12 parent-child relationship and (C) any such child, regardless of
1-13 age, who lives with or whose care is provided by an employee or
1-14 annuitant on a regular basis if such child is mentally retarded or
1-15 physically incapacitated to such an extent as to be dependent upon
1-16 the employee or retired employee for care or support, as the
1-17 trustee shall determine.
1-18 SECTION 2. Section 12(a), Texas Employees Uniform Group
1-19 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
1-20 Code), is amended to read as follows:
1-21 (a) The amount of group life coverages and group accidental
1-22 death and dismemberment coverages in force on an employee at the
1-23 date of his death shall be paid, on the establishment of a valid
1-24 claim, to the person or persons surviving at the date of his death,
2-1 in the following order of precedence:
2-2 First, to the beneficiary or beneficiaries designated by the
2-3 employee in a signed and witnessed writing received before death in
2-4 the employing office. For this purpose, a designation, change, or
2-5 cancellation of beneficiary in a will or other document not so
2-6 executed and filed has no force or effect.
2-7 Second, if there is no designated beneficiary, to the
2-8 surviving spouse or domestic partner [widow or widower] of the
2-9 employee.
2-10 Third, if none of the above, to the child or children of the
2-11 employee and descendants of the deceased children by
2-12 representation.
2-13 Fourth, if none of the above, to the parents of the employee
2-14 or the survivor of them.
2-15 Fifth, if none of the above, to the duly appointed executor
2-16 or administrator of the estate of the employee.
2-17 Sixth, if none of the above, to other kin of the employee
2-18 entitled under the laws of the domicile of the employee at the date
2-19 of his death.
2-20 SECTION 3. Sections 19(b) and (c), Texas Employees Uniform
2-21 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
2-22 Insurance Code), are amended to read as follows:
2-23 (b) A surviving spouse or domestic partner of an employee or
2-24 a retiree who is entitled to monthly benefits paid by a retirement
2-25 system named in this Act may, following the death of the employee
2-26 or retiree, elect to retain the spouse's or partner's authorized
2-27 coverages and also retain authorized coverages for any dependent of
3-1 the spouse or partner, at the group rate for employees, provided
3-2 such coverage was previously secured by the employee or retiree for
3-3 the spouse, partner, or dependent, and the spouse or partner
3-4 directs the applicable retirement system to deduct required
3-5 contributions from the monthly benefits paid the surviving spouse
3-6 or domestic partner by the retirement system. A surviving
3-7 dependent of a retiree who was receiving monthly benefits paid by
3-8 a retirement system named in this Act may, after the death of the
3-9 retiree and if the retiree leaves no surviving spouse or domestic
3-10 partner, elect to retain any coverage previously secured by the
3-11 retiree, at the group rate for employees, until the dependent
3-12 becomes ineligible for coverage for a reason other than the death
3-13 of the member of the group. A dependent who makes an election
3-14 under this subsection and who is entitled to monthly benefits from
3-15 a retirement system named in this Act based on the service of the
3-16 deceased retiree must direct the applicable retirement system to
3-17 deduct required contributions for the coverage from the monthly
3-18 benefits paid the surviving dependent by the retirement system.
3-19 (c) The surviving spouse or domestic partner of an employee
3-20 or a retiree who designated or selected a time certain annuity
3-21 option or a surviving dependent of a retiree who designated or
3-22 selected a time certain annuity option, upon expiration of the
3-23 annuity option, may retain authorized coverages by advance payment
3-24 of contributions to the Employees Retirement System of Texas under
3-25 rules and regulations adopted by the trustee.
3-26 SECTION 4. The Texas Employees Uniform Group Insurance
3-27 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
4-1 amended by adding Section 19A to read as follows:
4-2 Sec. 19A. COVERAGE OF DOMESTIC PARTNERS. (a) An employee
4-3 or annuitant may obtain coverage under the program established
4-4 under this Act for the person's domestic partner only as provided
4-5 by this section.
4-6 (b) An employee or annuitant and the employee's or
4-7 annuitant's domestic partner may file a jointly signed certificate
4-8 of domestic partner status, certifying that the partners:
4-9 (1) have an intimate, committed relationship of mutual
4-10 caring and have agreed to be responsible for each other's welfare;
4-11 (2) have lived together at one residence in such a
4-12 relationship for at least six months;
4-13 (3) are of the same sex and would marry if applicable
4-14 law permitted;
4-15 (4) are both at least 18 years of age;
4-16 (5) are neither legally married to another person;
4-17 (6) are not related by blood or adoption;
4-18 (7) are each other's sole domestic partner and intend
4-19 to remain so indefinitely; and
4-20 (8) have joint ownership of real estate by mortgage,
4-21 lease, or deed, joint ownership of a motor vehicle, or joint
4-22 ownership of the bank account into which the employee's salary or
4-23 the annuitant's retirement annuity payments are deposited.
4-24 (c) In addition to the requirements of Subsection (b) of
4-25 this section, the employee or annuitant must certify that the
4-26 domestic partner is the employee's or annuitant's designated
4-27 beneficiary under the applicable public retirement system and, if
5-1 the employee or annuitant has a will, that the domestic partner is
5-2 the primary beneficiary under the will.
5-3 (d) The trustee shall determine the form of the
5-4 certification. The form must contain a notice that execution of
5-5 the certificate may affect the liability of the domestic partners
5-6 to taxing authorities and third parties.
5-7 (e) A certificate of domestic partner status must be renewed
5-8 annually during each open enrollment period. An employee or
5-9 annuitant who executes a certificate shall file with the trustee a
5-10 notice of termination of domestic partner status not later than the
5-11 31st day after the earlier of the date of death of the domestic
5-12 partner or the date on which the person no longer qualifies as a
5-13 domestic partner.
5-14 SECTION 5. The change in law made by this Act applies
5-15 beginning with the open enrollment period for the uniform group
5-16 insurance program in 1997.
5-17 SECTION 6. The importance of this legislation and the
5-18 crowded condition of the calendars in both houses create an
5-19 emergency and an imperative public necessity that the
5-20 constitutional rule requiring bills to be read on three several
5-21 days in each house be suspended, and this rule is hereby suspended,
5-22 and that this Act take effect and be in force from and after its
5-23 passage, and it is so enacted.