By Kubiak                                       H.B. No. 2173

      75R6947 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 19(b), 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           (b)  A surviving spouse of an employee or a retiree who is

 1-9     entitled to monthly benefits paid by a retirement system named in

1-10     this Act may, following the death of the employee or retiree, elect

1-11     to retain the spouse's authorized coverages and also retain

1-12     authorized coverages for any dependent of the spouse, at the group

1-13     rate for employees, provided such coverage was previously secured

1-14     by the employee or retiree for the spouse or dependent, and the

1-15     spouse directs the applicable retirement system to deduct required

1-16     contributions from the monthly benefits paid the surviving spouse

1-17     by the retirement system.  A surviving dependent of a retiree who

1-18     was receiving monthly benefits paid by a retirement system named in

1-19     this Act may, after the death of the retiree and if the retiree

1-20     leaves no surviving spouse, elect to retain any coverage previously

1-21     secured by the retiree, at the group rate for employees, until the

1-22     dependent becomes ineligible for coverage for a reason other than

1-23     the death of the member of the group.  A dependent who makes an

1-24     election under this subsection and who is entitled to monthly

 2-1     benefits from a retirement system named in this Act based on the

 2-2     service of the deceased retiree must direct the applicable

 2-3     retirement system to deduct required contributions for the coverage

 2-4     from the monthly benefits paid the surviving dependent by the

 2-5     retirement system.  The state shall pay at least 50 percent of the

 2-6     cost of the required contributions for a deceased retiree's

 2-7     surviving spouse or other surviving dependent who elects to retain

 2-8     coverage under this subsection.

 2-9           SECTION 2.  This Act takes effect September 1, 1997.

2-10           SECTION 3.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended.