1-1     By:  Fraser                                           S.B. No. 1328

 1-2           (In the Senate - Filed March 13, 1997; March 18, 1997, read

 1-3     first time and referred to Committee on State Affairs; May 2, 1997,

 1-4     reported favorably, as amended, by the following vote:  Yeas 13,

 1-5     Nays 0; May 2, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Fraser

 1-7     Amend S.B. No. 1328 as follows:

 1-8           (1)  On page 1, line 33, add (x) after (A).

 1-9           (2)  On page 1, line 39, add (x) after (A).

1-10                            A BILL TO BE ENTITLED

1-11                                   AN ACT

1-12     relating to the eligibility of certain higher education employees

1-13     to participate in group programs under the Texas Employees Uniform

1-14     Group Insurance Benefits Act.

1-15           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-16           SECTION 1.  The Texas Employees Uniform Group Insurance

1-17     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is

1-18     amended by adding Section 13C to read as follows:

1-19           Sec. 13C.  CERTAIN EMPLOYEES INELIGIBLE.  (a)  An employee of

1-20     a public community/junior college who is employed to perform

1-21     services outside of this state is not eligible to participate in

1-22     the group programs provided under this Act.

1-23           (b)  For purposes of this section, an employee is employed to

1-24     perform services outside of this state if 75 percent or more of the

1-25     services performed by the employee are performed outside of this

1-26     state.

1-27           SECTION 2.  Subsection (c), Section 13, Texas Employees

1-28     Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's

1-29     Texas Insurance Code), is amended to read as follows:

1-30           (c)  Unless expelled from the program under Section 13A of

1-31     this Act or ineligible for the program under Section 13C of this

1-32     Act, each part-time employee and each employee of an institution of

1-33     higher education who is described by Section 3(a)(5)(A)

1-34     [3(a)(5)(A)(viii)] of this Act is eligible for participation in the

1-35     group programs provided under this Act upon execution of

1-36     appropriate payroll deduction authorization for the required

1-37     payment of premiums.  An institution of higher education shall, at

1-38     the time of employment, notify each employee of the institution who

1-39     is described by Section 3(a)(5)(A) [3(a)(5)(A)(viii)] of this Act

1-40     of the employee's eligibility to participate in the group programs

1-41     provided under this Act.

1-42           SECTION 3.  This Act takes effect September 1, 1997, and

1-43     applies only to an insurance policy that is delivered, issued for

1-44     delivery, or renewed on or after that date.  A policy that is

1-45     delivered, issued for delivery, or renewed before September 1,

1-46     1997, is governed by the law as it existed immediately before the

1-47     effective date of this Act, and that law is continued in effect for

1-48     this purpose.

1-49           SECTION 4.  The importance of this legislation and the

1-50     crowded condition of the calendars in both houses create an

1-51     emergency and an imperative public necessity that the

1-52     constitutional rule requiring bills to be read on three several

1-53     days in each house be suspended, and this rule is hereby suspended.

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