1-1 By: Woolley (Senate Sponsor - Brown) H.B. No. 3089 1-2 (In the Senate - Received from the House April 28, 1999; 1-3 April 29, 1999, read first time and referred to Committee on State 1-4 Affairs; May 7, 1999, reported favorably by the following vote: 1-5 Yeas 8, Nays 0; May 7, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to long-term care insurance provided for certain public 1-9 employees, retirees, and their family members. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter E, Chapter 3, Insurance Code, is 1-12 amended by adding Article 3.50-2A to read as follows: 1-13 Art. 3.50-2A. TEXAS EMPLOYEES GROUP LONG-TERM CARE INSURANCE 1-14 PROGRAM. (a) In this article: 1-15 (1) "Administering firm" means a firm designated by 1-16 the trustee to administer the group long-term care insurance 1-17 program under this article. 1-18 (2) "Employee" and "trustee" have the meanings 1-19 assigned by Section 3, Texas Employees Uniform Group Insurance 1-20 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code). 1-21 (b) The trustee may establish a group long-term care 1-22 insurance program to provide long-term care insurance coverage for: 1-23 (1) an employee, including a retired employee; 1-24 (2) a spouse of an employee, including a retired 1-25 employee; 1-26 (3) a parent or grandparent of an employee, including 1-27 a retired employee; and 1-28 (4) the parent of a spouse of an employee, including a 1-29 retired employee. 1-30 (c) The trustee may select an administering firm to 1-31 administer the program under contract to the trustee. The 1-32 administering firm shall bill each program participant directly for 1-33 premiums and any other program cost, and the program participant is 1-34 responsible for the required payment. The premiums and program cost 1-35 may not be deducted from an employee's monthly compensation or a 1-36 retired employee's annuity. 1-37 (d) The group long-term care insurance program is not part 1-38 of the group coverages offered under the Texas Employees Uniform 1-39 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas 1-40 Insurance Code), and the state may not contribute any part of the 1-41 premiums for coverage offered under this article. The trustee may 1-42 not implement the group long-term care insurance program under this 1-43 section unless any cost or administrative burden associated with 1-44 the development of, implementation of, or communications about the 1-45 program is incidental. 1-46 (e) The trustee may adopt rules as necessary to implement 1-47 this article, including rules specifying the coverage to be offered 1-48 under the group long-term care insurance program. 1-49 SECTION 2. Subchapter E, Chapter 3, Insurance Code, is 1-50 amended by adding Article 3.50-4A to read as follows: 1-51 Art. 3.50-4A. TEXAS PUBLIC SCHOOL EMPLOYEES GROUP LONG-TERM 1-52 CARE INSURANCE PROGRAM. (a) In this article: 1-53 (1) "Administering firm" means a firm designated by 1-54 the trustee to administer the group long-term care insurance 1-55 program under this article. 1-56 (2) "Active employee," "retiree," "surviving spouse," 1-57 and "trustee" have the meanings assigned by Section 2, Article 1-58 3.50-4, Insurance Code. 1-59 (b) The trustee may establish a group long-term care 1-60 insurance program to provide long-term care insurance coverage for: 1-61 (1) an active employee or retiree; 1-62 (2) a spouse of an active employee or retiree, 1-63 including a surviving spouse; 1-64 (3) a parent or grandparent of an active employee or 2-1 retiree; and 2-2 (4) the parent of a spouse of an employee or retiree, 2-3 including the parent of a surviving spouse. 2-4 (c) The trustee may select an administering firm to 2-5 administer the program under contract to the trustee. The 2-6 administering firm shall bill each program participant directly for 2-7 premiums and any other program cost, and the program participant is 2-8 responsible for the required payment. The trustee may not 2-9 implement the group long-term care insurance program under this 2-10 section unless any cost or administrative burden associated with 2-11 the development of, implementation of, or communications about the 2-12 program is incidental. 2-13 (d) The group long-term care insurance program is not part 2-14 of the group coverages offered under Article 3.50-4, Insurance 2-15 Code, and the state may not contribute any part of the premiums for 2-16 coverage offered under this article. 2-17 (e) The trustee may adopt rules as necessary to implement 2-18 this article, including rules specifying the coverage to be offered 2-19 under the group long-term care insurance program. 2-20 SECTION 3. Section 4, Texas State College and University 2-21 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's 2-22 Texas Insurance Code), is amended by adding Subsection (g) to read 2-23 as follows: 2-24 (g) An institution may join with the trustee of the program 2-25 established under the Texas Employees Uniform Group Insurance 2-26 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) or the 2-27 trustee of the program established under Article 3.50-4, Insurance 2-28 Code, to provide long-term care insurance coverage. Each 2-29 participating trustee and the governing board of the institution 2-30 must mutually agree to join together for this purpose, subject to 2-31 terms that are beneficial to all participants. An institution may 2-32 not participate in an agreement under this subsection unless any 2-33 cost or administrative burden associated with the development of, 2-34 implementation of, or communications about the long-term care 2-35 coverage program is incidental. 2-36 SECTION 4. The importance of this legislation and the 2-37 crowded condition of the calendars in both houses create an 2-38 emergency and an imperative public necessity that the 2-39 constitutional rule requiring bills to be read on three several 2-40 days in each house be suspended, and this rule is hereby suspended, 2-41 and that this Act take effect and be in force from and after its 2-42 passage, and it is so enacted. 2-43 * * * * *