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.