By Flores H.B. No. 520
76R3289 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to coverage for dependents under a small employer health
1-3 benefit plan offered through an independent school district.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 26.036, Insurance Code, is amended to
1-6 read as follows:
1-7 Art. 26.036. PARTICIPATION OF SCHOOL DISTRICT [ELECTION].
1-8 (a) An independent school district may elect to participate in the
1-9 small employer market without regard to the number of eligible
1-10 employees of the independent school district.
1-11 (b) An independent school district that elects to
1-12 participate in the small employer market under this article is
1-13 treated as a small employer under this chapter for all purposes.
1-14 (c) An eligible employee under a small employer health
1-15 benefit plan offered through an independent school district may
1-16 elect dependent coverage for another eligible employee who is also
1-17 a dependent of the eligible employee. If dependent coverage is
1-18 elected under this subsection:
1-19 (1) the premium charged for the dependent coverage is
1-20 the premium charged under the plan for coverage for a dependent who
1-21 is not an eligible employee; and
1-22 (2) both eligible employees are treated as
1-23 participating eligible employees for purposes of Article 26.21 of
1-24 this code.
2-1 (d) A child of spouses who are both eligible employees under
2-2 a small employer health benefit plan offered through an independent
2-3 school district may receive coverage as a dependent of only one of
2-4 the spouses.
2-5 SECTION 2. This Act takes effect September 1, 1999, and
2-6 applies only to a small employer health benefit plan offered
2-7 through an independent school district that is delivered, issued
2-8 for delivery, or renewed on or after January 1, 2000. A plan that
2-9 is delivered, issued for delivery, or renewed before January 1,
2-10 2000, is governed by the law as it existed immediately before the
2-11 effective date of this Act, and that law is continued in effect for
2-12 that purpose.
2-13 SECTION 3. The importance of this legislation and the
2-14 crowded condition of the calendars in both houses create an
2-15 emergency and an imperative public necessity that the
2-16 constitutional rule requiring bills to be read on three several
2-17 days in each house be suspended, and this rule is hereby suspended.