76R12523 DLF-D                           
         By Greenberg, Maxey, Walker, Coleman                  H.B. No. 3007
         Substitute the following for H.B. No. 3007:
         By Tillery                                        C.S.H.B. No. 3007
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to health benefits plan coverage for children of certain
 1-3     employees paid by state appropriated money.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  The Texas Employees Uniform Group Insurance
 1-6     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
 1-7     amended by adding Section 14A to read as follows:
 1-8           Sec. 14A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
 1-9     EMPLOYEES.  (a)  Subject to any applicable limit in the General
1-10     Appropriations Act, the trustee shall use money appropriated for
1-11     employer contributions to fund 80 percent of the cost of basic
1-12     coverage for a child who:
1-13                 (1)  is a dependent of an employee;
1-14                 (2)  would be eligible,  if the  child were not the
1-15     dependent of the employee, for benefits under the program
1-16     established by this  state to implement Title XXI of the Social
1-17     Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
1-18                 (3)  is not eligible for the state Medicaid program.
1-19           (b)  The trustee shall identify employees who may be eligible
1-20     for dependent child coverage under Subsection (a) of this section
1-21     and notify the employee that:
1-22                 (1)  the employee may be eligible for dependent child
1-23     coverage under Subsection (a) of this section; and
1-24                 (2)  the employee may apply for the coverage as
 2-1     provided by Subsection (c) of this section.
 2-2           (c)  An employee who desires dependent child coverage under
 2-3     this section shall apply to the Texas Department of Human Services
 2-4     or other agency designated by the Health and Human Services
 2-5     Commission to perform eligibility screening under this section.
 2-6     The eligibility screening shall be coordinated with eligibility
 2-7     screening for the state Medicaid program.  The agency that performs
 2-8     the eligibility screening shall certify to the trustee in writing
 2-9     whether a child is eligible for dependent child coverage under
2-10     Subsection (a) of this section.
2-11           (d)  If an employee does not obtain dependent child coverage
2-12     under this section at the time the employee is initially employed,
2-13     the employee may apply for the coverage during the annual open
2-14     enrollment period applicable to the employee's coverage under this
2-15     Act. The trustee may:
2-16                 (1)  continue the coverage until the next annual open
2-17     enrollment period applicable to the employee's coverage, without
2-18     regard to any change in status of the child; or
2-19                 (2)  adopt rules requiring an employee, during the
2-20     period the coverage is in effect, to report a change in status that
2-21     would make the dependent child ineligible for coverage and may
2-22     terminate the coverage on receipt of the report of a change in
2-23     status.
2-24           (e)  The trustee may require an employee to re-apply for
2-25     dependent child coverage under this section during each annual open
2-26     enrollment period applicable to the employee's coverage. The
2-27     trustee and the Texas Department of Human Services or other agency
 3-1     designated by the Health and Human Services Commission to perform
 3-2     eligibility screening under this section shall cooperate to develop
 3-3     a cost-effective method for annual re-evaluation of eligibility
 3-4     determinations for dependent child coverage under this section.
 3-5           (f)  Notwithstanding Subsection (a) of this section, the
 3-6     trustee may pay a higher percentage of the cost of basic coverage
 3-7     for a child described by Subsection (a) of this section if money
 3-8     becomes available for that purpose.
 3-9           SECTION 2.  Section 15(b), Texas Employees Uniform Group
3-10     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
3-11     Code), is amended to read as follows:
3-12           (b)  The state shall contribute to the cost of each
3-13     employee's individual and dependent group coverages the amounts
3-14     appropriated for the coverages in the General Appropriations Act.
3-15     The state may contribute a greater amount for coverage for
3-16     dependent children described by Section 14A(a) of this Act than the
3-17     state contributes for group coverages for other dependent children.
3-18     The governing board of each state department and institution of
3-19     higher education participating in the program established under
3-20     this Act shall pay the trustee a like amount for each employee's
3-21     individual or dependent group coverages for their employees who
3-22     are, and retirees who were, compensated from funds not appropriated
3-23     in the General Appropriations Act.  The departments and
3-24     institutions shall include the required contributions from funds
3-25     not appropriated in the General Appropriations Act in their annual
3-26     operating budgets.  Each state department and institution of higher
3-27     education participating in the program shall assure current
 4-1     participant coverages based on the records of the trustee, make
 4-2     timely payments of amounts due the trustee from all fund sources
 4-3     under the control of the department or institution, and reconcile
 4-4     trustee and agency records of coverages and payments monthly.
 4-5     There is hereby allocated to the trustee, in accordance with the
 4-6     provisions of this Act, from the several funds from which employees
 4-7     receive their respective salaries, a sum equal to the total of all
 4-8     employer contributions computed in accordance with the provisions
 4-9     of this Act and the rules and regulations of the trustee
4-10     promulgated pursuant thereto.
4-11           SECTION 3.  The Texas State College and University Employees
4-12     Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
4-13     Insurance Code) is amended by adding Section 17A to read as
4-14     follows:
4-15           Sec. 17A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
4-16     EMPLOYEES.  (a)  Subject to any applicable limit in the General
4-17     Appropriations Act, an institution shall use money appropriated for
4-18     employer contributions to fund 80 percent of the cost of basic
4-19     coverage for a child who:
4-20                 (1)  is a dependent of an employee;
4-21                 (2)  would  be  eligible, if  the child were not the
4-22     dependent of the employee, for benefits under the program
4-23     established by this  state to implement Title XXI of the Social
4-24     Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
4-25                 (3)  is not eligible for the state Medicaid program.
4-26           (b)  The institution shall identify employees who may be
4-27     eligible for dependent child coverage under Subsection (a) of this
 5-1     section and notify the employee that:
 5-2                 (1)  the employee may be eligible for dependent child
 5-3     coverage under Subsection (a) of this section; and
 5-4                 (2)  the employee may apply for the coverage as
 5-5     provided by Subsection (c) of this section.
 5-6           (c)  An employee who desires dependent child coverage under
 5-7     this section shall apply to the Texas Department of Human Services
 5-8     or other agency designated by the Health and Human Services
 5-9     Commission to perform eligibility screening under this section. The
5-10     eligibility screening shall be coordinated with eligibility
5-11     screening for the state Medicaid program. The agency that performs
5-12     the eligibility screening shall certify to the institution in
5-13     writing whether a child is eligible for dependent child coverage
5-14     under Subsection (a) of this section.
5-15           (d)  If an employee does not obtain dependent child coverage
5-16     under this section at the time the employee is initially employed,
5-17     the employee may apply for the coverage during the annual open
5-18     enrollment period applicable to the employee's coverage under this
5-19     Act. The institution may:
5-20                 (1)  continue the coverage until the next annual open
5-21     enrollment period applicable to the employee's coverage, without
5-22     regard to any change in status of the child; or
5-23                 (2)  adopt rules requiring an employee, during the
5-24     period the coverage is in effect, to report a change in status that
5-25     would make the dependent child ineligible for coverage and may
5-26     terminate the coverage on receipt of the report of a change in
5-27     status.
 6-1           (e)  The institution may require an employee to re-apply for
 6-2     dependent child coverage under this section during each annual open
 6-3     enrollment period applicable to the employee's coverage. The
 6-4     institution and the Texas Department of Human Services or other
 6-5     agency designated by the Health and Human Services Commission to
 6-6     perform eligibility screening under this section shall cooperate to
 6-7     develop a cost-effective method for annual re-evaluation of
 6-8     eligibility determinations for dependent child coverage under this
 6-9     section.
6-10           (f)  Notwithstanding Subsection (a) of this section, an
6-11     institution may pay a higher percentage of the cost of basic
6-12     coverage for a child described by Subsection (a) of this section if
6-13     money becomes available for that purpose.
6-14           SECTION 4.  Section 13, Texas State College and University
6-15     Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
6-16     Texas Insurance Code), is amended to read as follows:
6-17           Sec. 13.  EMPLOYER CONTRIBUTIONS.  (a)  Certification shall
6-18     be submitted on or before the first day of November next preceding
6-19     each regular session of the legislature;  the institutions and
6-20     agencies covered under the provisions of this Act shall certify to
6-21     the Legislative Budget Board and budget division of the Governor's
6-22     Budget and Planning Office the amount necessary to pay employer
6-23     contributions for each active and retired employee from the
6-24     effective date of this Act.
6-25           (b)  The state may contribute a greater amount for coverage
6-26     for dependent children of employees described by Section 17A(a) of
6-27     this Act than the state contributes for group coverages for other
 7-1     dependent children.
 7-2           (c)  The Legislative Budget Board and the Governor's Budget
 7-3     and Planning Office will establish procedures to insure that
 7-4     eligible institutions request appropriate funds to support this
 7-5     program and shall present appropriate budget recommendations to the
 7-6     legislature.
 7-7           (d)  The Teacher Retirement System of Texas, Optional
 7-8     Retirement Program carriers, and Employees Retirement System of
 7-9     Texas shall furnish each institution such information as may be
7-10     deemed necessary by the institution to provide retired employees
7-11     with the coverages and employer contributions provided under the
7-12     Act.
7-13           SECTION 5.  (a)  This Act takes effect September 1, 1999.
7-14           (b)  Section 14A, Texas Employees Uniform Group Insurance
7-15     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code), as
7-16     added by this Act, and Section 17A, Texas State College and
7-17     University Employees Uniform Insurance Benefits Act (Article
7-18     3.50-3, Vernon's Texas Insurance Code), as added by this Act, do
7-19     not apply to the purchase of basic coverage for a dependent child
7-20     by the trustee of the group benefits program established under the
7-21     Texas Employees Uniform Group Insurance Benefits Act (Article
7-22     3.50-2, Vernon's Texas Insurance Code) and an institution subject
7-23     to the Texas State College and University Employees Uniform
7-24     Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance
7-25     Code) before fiscal year 2001.
7-26           SECTION 6.  The importance of this legislation and the
7-27     crowded condition of the calendars in both houses create an
 8-1     emergency and an imperative public necessity that the
 8-2     constitutional rule requiring bills to be read on three several
 8-3     days in each house be suspended, and this rule is hereby suspended.