By Fraser                                       S.B. No. 1328

      75R2742 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the eligibility of certain higher education employees

 1-3     to participate in group programs under the Texas Employees Uniform

 1-4     Group Insurance Benefits Act.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  The Texas Employees Uniform Group Insurance

 1-7     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is

 1-8     amended by adding Section 13C to read as follows:

 1-9           Sec. 13C.  CERTAIN EMPLOYEES INELIGIBLE.  (a) An employee of

1-10     a public community/junior college who is employed  to perform

1-11     services  outside of this state is not eligible to participate in

1-12     the group programs provided under this Act.

1-13           (b)  For purposes of this section, an employee is employed to

1-14     perform services outside of this state if 75 percent or more of the

1-15     services performed by the employee are performed outside of this

1-16     state.

1-17           SECTION 2.  Section 13(c), Texas Employees Uniform Group

1-18     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

1-19     Code), is amended to read as follows:

1-20           (c)  Unless expelled from the program under Section 13A of

1-21     this Act or ineligible for the program under Section 13C of this

1-22     Act, each part-time employee and each employee of an institution of

1-23     higher education who is described by Section 3(a)(5)(A)

1-24     [3(a)(5)(A)(viii)] of this Act is eligible for participation in the

 2-1     group programs provided under this Act upon execution of

 2-2     appropriate payroll deduction authorization for the required

 2-3     payment of premiums.  An institution of higher education shall, at

 2-4     the time of employment, notify each employee of the institution who

 2-5     is described by Section 3(a)(5)(A) [3(a)(5)(A)(viii)] of this Act

 2-6     of the employee's eligibility to participate in the group programs

 2-7     provided under this Act.

 2-8           SECTION 3.  This Act takes effect September 1, 1997, and

 2-9     applies only to an insurance policy that is delivered, issued for

2-10     delivery, or renewed on or after that date.  A policy that is

2-11     delivered, issued for delivery, or renewed before September 1,

2-12     1997, is governed by the law as it existed immediately before the

2-13     effective date of this Act, and that law is continued in effect for

2-14     this purpose.

2-15           SECTION 4.  The importance of this legislation and the

2-16     crowded condition of the calendars in both houses create an

2-17     emergency and an imperative public necessity that the

2-18     constitutional rule requiring bills to be read on three several

2-19     days in each house be suspended, and this rule is hereby suspended.