1-1 AN ACT
1-2 relating to long-term care insurance provided for certain public
1-3 employees, retirees, and their family members.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 3, Insurance Code, is
1-6 amended by adding Article 3.50-2A to read as follows:
1-7 Art. 3.50-2A. TEXAS EMPLOYEES GROUP LONG-TERM CARE INSURANCE
1-8 PROGRAM. (a) In this article:
1-9 (1) "Administering firm" means a firm designated by
1-10 the trustee to administer the group long-term care insurance
1-11 program under this article.
1-12 (2) "Employee" and "trustee" have the meanings
1-13 assigned by Section 3, Texas Employees Uniform Group Insurance
1-14 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code).
1-15 (b) The trustee may establish a group long-term care
1-16 insurance program to provide long-term care insurance coverage for:
1-17 (1) an employee, including a retired employee;
1-18 (2) a spouse of an employee, including a retired
1-19 employee;
1-20 (3) a parent or grandparent of an employee, including
1-21 a retired employee; and
1-22 (4) the parent of a spouse of an employee, including a
1-23 retired employee.
1-24 (c) The trustee may select an administering firm to
2-1 administer the program under contract to the trustee. The
2-2 administering firm shall bill each program participant directly for
2-3 premiums and any other program cost, and the program participant is
2-4 responsible for the required payment. The premiums and program cost
2-5 may not be deducted from an employee's monthly compensation or a
2-6 retired employee's annuity.
2-7 (d) The group long-term care insurance program is not part
2-8 of the group coverages offered under the Texas Employees Uniform
2-9 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
2-10 Insurance Code), and the state may not contribute any part of the
2-11 premiums for coverage offered under this article. The trustee may
2-12 not implement the group long-term care insurance program under this
2-13 section unless any cost or administrative burden associated with
2-14 the development of, implementation of, or communications about the
2-15 program is incidental.
2-16 (e) The trustee may adopt rules as necessary to implement
2-17 this article, including rules specifying the coverage to be offered
2-18 under the group long-term care insurance program.
2-19 SECTION 2. Subchapter E, Chapter 3, Insurance Code, is
2-20 amended by adding Article 3.50-4A to read as follows:
2-21 Art. 3.50-4A. TEXAS PUBLIC SCHOOL EMPLOYEES GROUP LONG-TERM
2-22 CARE INSURANCE PROGRAM. (a) In this article:
2-23 (1) "Administering firm" means a firm designated by
2-24 the trustee to administer the group long-term care insurance
2-25 program under this article.
2-26 (2) "Active employee," "retiree," "surviving spouse,"
2-27 and "trustee" have the meanings assigned by Section 2, Article
3-1 3.50-4, Insurance Code.
3-2 (b) The trustee may establish a group long-term care
3-3 insurance program to provide long-term care insurance coverage for:
3-4 (1) an active employee or retiree;
3-5 (2) a spouse of an active employee or retiree,
3-6 including a surviving spouse;
3-7 (3) a parent or grandparent of an active employee or
3-8 retiree; and
3-9 (4) the parent of a spouse of an employee or retiree,
3-10 including the parent of a surviving spouse.
3-11 (c) The trustee may select an administering firm to
3-12 administer the program under contract to the trustee. The
3-13 administering firm shall bill each program participant directly for
3-14 premiums and any other program cost, and the program participant is
3-15 responsible for the required payment. The trustee may not
3-16 implement the group long-term care insurance program under this
3-17 section unless any cost or administrative burden associated with
3-18 the development of, implementation of, or communications about the
3-19 program is incidental.
3-20 (d) The group long-term care insurance program is not part
3-21 of the group coverages offered under Article 3.50-4, Insurance
3-22 Code, and the state may not contribute any part of the premiums for
3-23 coverage offered under this article.
3-24 (e) The trustee may adopt rules as necessary to implement
3-25 this article, including rules specifying the coverage to be offered
3-26 under the group long-term care insurance program.
3-27 SECTION 3. Section 4, Texas State College and University
4-1 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
4-2 Texas Insurance Code), is amended by adding Subsection (g) to read
4-3 as follows:
4-4 (g) An institution may join with the trustee of the program
4-5 established under the Texas Employees Uniform Group Insurance
4-6 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) or the
4-7 trustee of the program established under Article 3.50-4, Insurance
4-8 Code, to provide long-term care insurance coverage. Each
4-9 participating trustee and the governing board of the institution
4-10 must mutually agree to join together for this purpose, subject to
4-11 terms that are beneficial to all participants. An institution may
4-12 not participate in an agreement under this subsection unless any
4-13 cost or administrative burden associated with the development of,
4-14 implementation of, or communications about the long-term care
4-15 coverage program is incidental.
4-16 SECTION 4. The importance of this legislation and the
4-17 crowded condition of the calendars in both houses create an
4-18 emergency and an imperative public necessity that the
4-19 constitutional rule requiring bills to be read on three several
4-20 days in each house be suspended, and this rule is hereby suspended,
4-21 and that this Act take effect and be in force from and after its
4-22 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3089 was passed by the House on April
27, 1999, by the following vote: Yeas 141, Nays 1, 1 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3089 was passed by the Senate on May
17, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor