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.