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.