1-1     By:  Barrientos                                       S.B. No. 1351
 1-2           (In the Senate - Filed March 11, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 19, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 19, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1351                   By:  Brown
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to health benefits plan coverage for dependent children of
1-11     certain employees paid by state appropriated money.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  The Texas Employees Uniform Group Insurance
1-14     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
1-15     amended by adding Section 14A to read as follows:
1-16           Sec. 14A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
1-17     EMPLOYEES.  (a)  Subject to any applicable limit in the General
1-18     Appropriations Act, the trustee shall use money appropriated for
1-19     employer contributions to fund 80 percent of the cost of basic
1-20     coverage for a child who:
1-21                 (1)  is a dependent of an employee;
1-22                 (2)  would be eligible, if the child were not the
1-23     dependent of the employee, for benefits under the program
1-24     established by this state to implement Title XXI of the Social
1-25     Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
1-26                 (3)  is not eligible for the state Medicaid program.
1-27           (b)  The trustee shall identify employees who may be eligible
1-28     for dependent child coverage under Subsection (a) of this section
1-29     and notify the employee that:
1-30                 (1)  the employee may be eligible for dependent child
1-31     coverage under Subsection (a) of this section; and
1-32                 (2)  the employee may apply for the coverage as
1-33     provided by Subsection (c) of this section.
1-34           (c)  An employee who desires dependent child coverage under
1-35     this section shall apply to the Texas Department of Human Services
1-36     or other agency designated by the Health and Human Services
1-37     Commission to perform eligibility screening under this section.
1-38     The eligibility screening shall be coordinated with eligibility
1-39     screening for the state Medicaid program.  The agency that performs
1-40     the eligibility screening shall certify to the trustee in writing
1-41     whether a child is eligible for dependent child coverage under
1-42     Subsection (a) of this section.
1-43           (d)  If an employee does not obtain dependent child coverage
1-44     under this section at the time the employee is initially employed,
1-45     the employee may apply for the coverage during the annual open
1-46     enrollment period applicable to the employee's coverage under this
1-47     Act.  The trustee may:
1-48                 (1)  continue the coverage until the next annual open
1-49     enrollment period applicable to the employee's coverage, without
1-50     regard to any change in status of the child; or
1-51                 (2)  adopt rules requiring an employee, during the
1-52     period the coverage is in effect, to report a change in status that
1-53     would make the dependent child ineligible for coverage and may
1-54     terminate the coverage on receipt of the report of a change in
1-55     status.
1-56           (e)  The trustee may require an employee to re-apply for
1-57     dependent child coverage under this section during each annual open
1-58     enrollment period applicable to the employee's coverage.  The
1-59     trustee and the Texas Department of Human Services or other agency
1-60     designated by the Health and Human Services Commission to perform
1-61     eligibility screening under this section shall cooperate to develop
1-62     a cost-effective method for annual re-evaluation of eligibility
1-63     determinations for dependent child coverage under this section.
1-64           (f)  Notwithstanding Subsection (a) of this section, the
 2-1     trustee may pay a higher percentage of the cost of basic coverage
 2-2     for a child described by Subsection (a) of this section if money
 2-3     becomes available for that purpose.
 2-4           SECTION 2.  Subsection (b), Section 15, Texas Employees
 2-5     Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
 2-6     Texas Insurance Code), is amended to read as follows:
 2-7           (b)  The state shall contribute to the cost of each
 2-8     employee's individual and dependent group coverages the amounts
 2-9     appropriated for the coverages in the General Appropriations Act.
2-10     The state may contribute a greater amount for coverage for
2-11     dependent children described by Section 14A(a) of this Act than the
2-12     state contributes for group coverages for other dependent children.
2-13     The governing board of each state department and institution of
2-14     higher education participating in the program established under
2-15     this Act shall pay the trustee a like amount for each employee's
2-16     individual or dependent group coverages for their employees who
2-17     are, and retirees who were, compensated from funds not appropriated
2-18     in the General Appropriations Act.  The departments and
2-19     institutions shall include the required contributions from funds
2-20     not appropriated in the General Appropriations Act in their annual
2-21     operating budgets.  Each state department and institution of higher
2-22     education participating in the program shall assure current
2-23     participant coverages based on the records of the trustee, make
2-24     timely payments of amounts due the trustee from all fund sources
2-25     under the control of the department or institution, and reconcile
2-26     trustee and agency records of coverages and payments monthly.
2-27     There is hereby allocated to the trustee, in accordance with the
2-28     provisions of this Act, from the several funds from which employees
2-29     receive their respective salaries, a sum equal to the total of all
2-30     employer contributions computed in accordance with the provisions
2-31     of this Act and the rules and regulations of the trustee
2-32     promulgated pursuant thereto.
2-33           SECTION 3.  The Texas State College and University Employees
2-34     Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
2-35     Insurance Code) is amended by adding Section 17A to read as
2-36     follows:
2-37           Sec. 17A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
2-38     EMPLOYEES.  (a)  Subject to any applicable limit in the General
2-39     Appropriations Act, an institution shall use money appropriated for
2-40     employer contributions to fund 80 percent of the cost of basic
2-41     coverage for a child who:
2-42                 (1)  is a dependent of an employee;
2-43                 (2)  would be eligible, if the child were not the
2-44     dependent of the employee, for benefits under the program
2-45     established by this state to implement Title XXI of the Social
2-46     Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
2-47                 (3)  is not eligible for the state Medicaid program.
2-48           (b)  The institution shall identify employees who may be
2-49     eligible for dependent child coverage under Subsection (a) of this
2-50     section and notify the employee that:
2-51                 (1)  the employee may be eligible for dependent child
2-52     coverage under Subsection (a) of this section; and
2-53                 (2)  the employee may apply for the coverage as
2-54     provided by Subsection (c) of this section.
2-55           (c)  An employee who desires dependent child coverage under
2-56     this section shall apply to the Texas Department of Human Services
2-57     or other agency designated by the Health and Human Services
2-58     Commission to perform eligibility screening under this section.
2-59     The eligibility screening shall be coordinated with eligibility
2-60     screening for the state Medicaid program.  The agency that performs
2-61     the eligibility screening shall certify to the institution in
2-62     writing whether a child is eligible for dependent child coverage
2-63     under Subsection (a) of this section.
2-64           (d)  If an employee does not obtain dependent child coverage
2-65     under this section at the time the employee is initially employed,
2-66     the employee may apply for the coverage during the annual open
2-67     enrollment period applicable to the employee's coverage under this
2-68     Act.  The institution may:
2-69                 (1)  continue the coverage until the next annual open
 3-1     enrollment period applicable to the employee's coverage, without
 3-2     regard to any change in status of the child; or
 3-3                 (2)  adopt rules requiring an employee, during the
 3-4     period the coverage is in effect, to report a change in status that
 3-5     would make the dependent child ineligible for coverage and may
 3-6     terminate the coverage on receipt of the report of a change in
 3-7     status.
 3-8           (e)  The institution may require an employee to re-apply for
 3-9     dependent child coverage under this section during each annual open
3-10     enrollment period applicable to the employee's coverage.  The
3-11     institution and the Texas Department of Human Services or other
3-12     agency designated by the Health and Human Services Commission to
3-13     perform eligibility screening under this section shall cooperate to
3-14     develop a cost-effective method for annual re-evaluation of
3-15     eligibility determinations for dependent child coverage under this
3-16     section.
3-17           (f)  Notwithstanding Subsection (a) of this section, an
3-18     institution may pay a higher percentage of the cost of basic
3-19     coverage for a child described by Subsection (a) of this section if
3-20     money becomes available for that purpose.
3-21           SECTION 4.  Section 13, Texas State College and University
3-22     Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
3-23     Texas Insurance Code), is amended to read as follows:
3-24           Sec. 13.  EMPLOYER CONTRIBUTIONS.  (a)  Certification shall
3-25     be submitted on or before the first day of November next preceding
3-26     each regular session of the legislature; the institutions and
3-27     agencies covered under the provisions of this Act shall certify to
3-28     the Legislative Budget Board and budget division of the Governor's
3-29     Budget and Planning Office the amount necessary to pay employer
3-30     contributions for each active and retired employee from the
3-31     effective date of this Act.
3-32           (b)  The state may contribute a greater amount for coverage
3-33     for dependent children of employees described by Section 17A(a) of
3-34     this Act than the state contributes for group coverages for other
3-35     dependent children.
3-36           (c)  The Legislative Budget Board and the Governor's Budget
3-37     and Planning Office will establish procedures to insure that
3-38     eligible institutions request appropriate funds to support this
3-39     program and shall present appropriate budget recommendations to the
3-40     legislature.
3-41           (d)  The Teacher Retirement System of Texas, Optional
3-42     Retirement Program carriers, and Employees Retirement System of
3-43     Texas shall furnish each institution such information as may be
3-44     deemed necessary by the institution to provide retired employees
3-45     with the coverages and employer contributions provided under the
3-46     Act.
3-47           SECTION 5.  (a)  This Act takes effect September 1, 1999.
3-48           (b)  Section 14A, Texas Employees Uniform Group Insurance
3-49     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code), as
3-50     added by this Act, and Section 17A, Texas State College and
3-51     University Employees Uniform Insurance Benefits Act (Article
3-52     3.50-3, Vernon's Texas Insurance Code), as added by this Act, do
3-53     not apply to the purchase of basic coverage for a dependent child
3-54     by the trustee of the group benefits program established under the
3-55     Texas Employees Uniform Group Insurance Benefits Act (Article
3-56     3.50-2, Vernon's Texas Insurance Code) and an institution subject
3-57     to the Texas State College and University Employees Uniform
3-58     Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance
3-59     Code) before fiscal year 2001.
3-60           SECTION 6.  The importance of this legislation and the
3-61     crowded condition of the calendars in both houses create an
3-62     emergency and an imperative public necessity that the
3-63     constitutional rule requiring bills to be read on three several
3-64     days in each house be suspended, and this rule is hereby suspended.
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