1-1 By: Harris S.B. No. 14 1-2 (In the Senate - Filed April 14, 1997; April 16, 1997, read 1-3 first time and referred to Committee on State Affairs; 1-4 April 30, 1997, reported favorably, as amended, by the following 1-5 vote: Yeas 10, Nays 0; April 30, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Lindsay 1-7 Amend S.B. No. 14 in SECTION 1 of the bill, by striking Section 1-8 1(a)(2) of proposed Article 3.50-2A Subchapter E, Chapter 3, 1-9 Insurance Code, (page 1, lines 30 through 37, introduced version), 1-10 and inserting the following in lieu thereof: 1-11 (2) seven public members appointed by the governor 1-12 with the advice and consent of the senate. 1-13 COMMITTEE AMENDMENT NO. 2 By: Lindsay 1-14 Amend S.B. No. 14 in SECTION 1 of the bill, by amending Section 1-15 3(d) of proposed Article 3.50-2A Subchapter E, Chapter 3, Insurance 1-16 Code, (page 2, lines 5 and 6, introduced version), between "is" and 1-17 "subject" by striking the word "not". 1-18 A BILL TO BE ENTITLED 1-19 AN ACT 1-20 relating to long-term care for public employees. 1-21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-22 SECTION 1. Subchapter E, Chapter 3, Insurance Code, is 1-23 amended by adding Article 3.50-2A to read as follows: 1-24 Art. 3.50-2A. LONG-TERM CARE FOR PUBLIC EMPLOYEES 1-25 Sec. 1. LONG-TERM CARE BOARD. (a) The Public Employees 1-26 Long-Term Care Board is established. The board consists of: 1-27 (1) the executive directors of the Teacher Retirement 1-28 System of Texas, the Employees Retirement System of Texas, the 1-29 Texas County and District Retirement System, and the Texas 1-30 Municipal Retirement System; and 1-31 (2) seven public members: 1-32 (A) two of whom are appointed by the governor; 1-33 (B) two of whom are appointed by the lieutenant 1-34 governor; 1-35 (C) two of whom are appointed by the speaker of 1-36 the house of representatives; and 1-37 (D) one of whom is appointed by the chief 1-38 justice of the Texas Supreme Court. 1-39 (b) The executive directors serve as members of the board by 1-40 virtue of their position as executive directors, and the public 1-41 members serve two-year terms expiring February 1 of each 1-42 odd-numbered year. 1-43 (c) Members of the board annually shall select their 1-44 presiding officers. The board shall meet at the call of the 1-45 presiding officer or as otherwise determined by board policy. 1-46 (d) A member of the board is not entitled to compensation 1-47 for service on the board but is entitled to reimbursement of travel 1-48 expenses incurred in performing the business of the board, as 1-49 provided in the General Appropriations Act. 1-50 Sec. 2. EMPLOYEES AND CONSULTANTS. The board may employ and 1-51 contract with persons to assist it in performing its powers and 1-52 duties under this article and may determine their duties and 1-53 compensation. 1-54 Sec. 3. LONG-TERM CARE COVERAGE. (a) The board shall 1-55 contract with carriers offering long-term care insurance plans and 1-56 enter into health care service plan contracts covering long-term 1-57 care. 1-58 (b) The board shall award contracts to carriers who are 1-59 qualified to provide long-term care benefits and may develop and 1-60 administer self-funded long-term care insurance plans. The board 1-61 may offer one or more long-term care insurance plans or health care 1-62 service plan contracts covering long-term care and may offer 1-63 service or indemnity plans. 1-64 (c) The long-term care insurance plans and health care 2-1 service plan contracts covering long-term care shall include home, 2-2 community, and institutional care. 2-3 (d) A contract entered into under this section is not 2-4 subject to competitive bidding. 2-5 (e) The long-term care insurance plans and health care 2-6 service plan contracts covering long-term care shall be made 2-7 available periodically during open enrollment periods determined by 2-8 the board. 2-9 Sec. 4. ENROLLMENT. (a) The board shall establish 2-10 eligibility criteria for enrollment, establish appropriate 2-11 underwriting criteria for potential enrollees, define the scope of 2-12 covered benefits, define criteria to receive benefits, and set any 2-13 other standards the board determines are needed. 2-14 (b) The classes of persons who are eligible to enroll in the 2-15 long-term care program provided by this article are: 2-16 (1) members and annuitants of the Employees Retirement 2-17 System of Texas, their spouses, children, and parents, and their 2-18 spouses' parents; 2-19 (2) members and annuitants of the Teacher Retirement 2-20 System of Texas, their spouses, children, and parents, and their 2-21 spouses' parents; 2-22 (3) members and annuitants of the optional retirement 2-23 program established under Chapter 830, Government Code, their 2-24 spouses, children, and parents, and their spouses' parents; 2-25 (4) members and annuitants of the Judicial Retirement 2-26 System of Texas Plan One, their spouses, children, and parents, and 2-27 their spouses' parents; 2-28 (5) members and annuitants of the Judicial Retirement 2-29 System of Texas Plan Two, their spouses, children, and parents, and 2-30 their spouses' parents; 2-31 (6) members and annuitants of the Texas County and 2-32 District Retirement System, their spouses, children, and parents, 2-33 and their spouses' parents; 2-34 (7) members and annuitants of the Texas Municipal 2-35 Retirement System, their spouses, children, and parents, and their 2-36 spouses' parents; and 2-37 (8) members and annuitants, and the spouses, children, 2-38 parents, and spouses' parents of members and annuitants, of any 2-39 other retirement system administered by the state or a political 2-40 subdivision of the state, the governing body of which has 2-41 contracted with the board to provide coverage under this article. 2-42 (c) A potential enrollee must meet the eligibility and 2-43 underwriting criteria established by the board. 2-44 (d) The full cost of enrollment in a long-term care 2-45 insurance plan or in a health service plan contract covering 2-46 long-term care shall be paid by the enrollees. 2-47 Sec. 5. PUBLIC EMPLOYEES LONG-TERM CARE FUND. (a) The 2-48 public employees long-term care fund is established as a trust fund 2-49 outside the state treasury. 2-50 (b) The comptroller is custodian of the fund and shall draw 2-51 warrants on the fund at the direction of the board or the board's 2-52 designee. 2-53 (c) The board may set the premiums for any self-funded 2-54 long-term care plan and assess charges against carriers and the 2-55 premiums of enrollees to recover the administrative costs of the 2-56 public employees long-term care program. 2-57 (d) Premiums paid by enrollees, amounts recovered under 2-58 contracts for the implementation of the public employees long-term 2-59 care program established under this article, and investment and 2-60 depository income of the fund shall be credited to the fund. The 2-61 legislature may make appropriations to the fund. 2-62 (e) Money in the fund may be used only for the purpose of 2-63 administering any self-funded long-term care plan developed by the 2-64 board and for paying the administrative expenses of the long-term 2-65 care program. The fund is not subject to legislative 2-66 appropriation, except that the legislature in the General 2-67 Appropriations Act may limit the amount in the fund that may be 2-68 used to pay administrative expenses. 2-69 Sec. 6. INVESTMENT OF FUND. (a) As trustees and 3-1 fiduciaries of the public employees long-term care fund, the board 3-2 may invest assets of the fund in any investment in which an asset 3-3 of a retirement system of which the executive director is a member 3-4 of the board may be invested. The board is subject to the 3-5 investment standard provided by Section 67(a)(3), Article XVI, 3-6 Texas Constitution. 3-7 (b) The board may employ investment staff or contract with 3-8 independent investment managers to manage the investments of the 3-9 public employees long-term care fund. 3-10 Sec. 7. IMPLEMENTATION. The board shall implement the 3-11 long-term care program developed under this article when the board 3-12 determines that it is feasible to do so. 3-13 SECTION 2. If the Public Employees Long-Term Care Board does 3-14 not implement the long-term care program under Article 3.50-2A, 3-15 Insurance Code, as added by this Act, before January 1, 1999, the 3-16 board shall prepare and file a report with the governor, the 3-17 lieutenant governor, and the speaker of the house of 3-18 representatives before that date making its recommendations for the 3-19 resources necessary to implement the program. 3-20 SECTION 3. This Act takes effect September 1, 1997. 3-21 SECTION 4. The importance of this legislation and the 3-22 crowded condition of the calendars in both houses create an 3-23 emergency and an imperative public necessity that the 3-24 constitutional rule requiring bills to be read on three several 3-25 days in each house be suspended, and this rule is hereby suspended. 3-26 * * * * *