By:  Jackson                                          S.B. No. 1749
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to participation in the Texas Employees Uniform Group
 1-2     Insurance Benefits Act by certain former members of the governing
 1-3     bodies of community/junior colleges.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subdivision (5), Subsection (a), Section 3, Texas
 1-6     Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
 1-7     Vernon's Texas Insurance Code), is amended to read as follows:
 1-8                 (5)(A)  "Employee" shall mean any appointive or
 1-9     elective officer or employee in the service of the State of Texas,
1-10     including an employee of an institution of higher education:
1-11                             (i)  who is retired or retires and is an
1-12     annuitant under the jurisdiction of the Employees Retirement System
1-13     of Texas, pursuant to Subtitle B, D, or E;
1-14                             (ii)  who is retired or retires and is an
1-15     annuitant under the jurisdiction of the Teacher Retirement System
1-16     of Texas, pursuant to Subtitle C, Title 8, Government Code, or
1-17     pursuant to Chapter 803, Government Code, and whose last employment
1-18     with the state prior to retirement, including employment by a
1-19     public community/junior college, was as an employee of a department
1-20     whose employees are authorized to participate in the Texas
1-21     employees uniform group insurance program;
1-22                             (iii)  who is retired or retires and is an
1-23     annuitant under the optional retirement program established by
1-24     Chapter 830, Government Code, if the person's last state employment
 2-1     before retirement, including employment by a public
 2-2     community/junior college, was as an employee of a department whose
 2-3     employees are authorized to participate in the Texas employees
 2-4     uniform group insurance program, and if the person either:
 2-5                                            (a)  would have been
 2-6     eligible to retire and receive a service retirement annuity from
 2-7     the Teacher Retirement System of Texas or the Employees Retirement
 2-8     System of Texas had the person not elected to participate in the
 2-9     optional retirement program; or
2-10                                            (b)  is disabled as
2-11     determined by the Employees Retirement System of Texas;
2-12                             (iv)  who receives compensation for
2-13     services rendered to the State of Texas, other than an employee of
2-14     an institution of higher education described by this subdivision,
2-15     on a warrant issued pursuant to a payroll certified by a department
2-16     or by an elected or duly appointed officer of this state;
2-17                             (v)  who receives payment for the
2-18     performance of personal services on a warrant issued pursuant to a
2-19     payroll certified by a department and drawn by the comptroller upon
2-20     the State Treasury against appropriations made by the Texas
2-21     Legislature from any state funds or against any trust funds held by
2-22     the comptroller or who is paid from funds of an official budget of
2-23     a state department, rather than from funds of the General
2-24     Appropriations Act;
2-25                             (vi)  who is appointed, subject to
2-26     confirmation of the senate, as a member of a board or commission
 3-1     with administrative responsibility over a statutory agency having
 3-2     statewide jurisdiction whose employees are covered by this Act;
 3-3                             (vii)  who is a member of the governing
 3-4     body of an institution of higher education, as that term is defined
 3-5     by this Act, or who was a member of the governing body of a public
 3-6     community/junior college who rendered at least 10 continuous years
 3-7     of service and who is at least 55 years of age;
 3-8                             (viii)  who is a member of the State Board
 3-9     of Education;
3-10                             (ix)  who receives compensation for
3-11     services rendered to an institution of higher education on a
3-12     warrant or check issued pursuant to a payroll certified by an
3-13     institution of higher education or by an elected or duly appointed
3-14     officer of this state, and who is eligible for participation in the
3-15     Teacher Retirement System of Texas; or
3-16                             (x)  who receives compensation for services
3-17     rendered to an institution of higher education as provided by this
3-18     subdivision but is not permitted to be a member of the Teacher
3-19     Retirement System of Texas because the person is solely employed by
3-20     an institution of higher education that as a condition of
3-21     employment requires the person to be enrolled as a student in an
3-22     institution of higher education in graduate-level courses and who
3-23     is employed by the institution at least 20 hours a week.
3-24                       (B)  Persons performing personal services for the
3-25     State of Texas as independent contractors shall never be considered
3-26     employees of the state for purposes of this Act.
 4-1           SECTION 2.  Subsection (b), Section 15, Texas Employees
 4-2     Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
 4-3     Texas Insurance Code), is amended to read as follows:
 4-4           (b)  The state shall contribute to the cost of each
 4-5     employee's individual and dependent group coverages the amounts
 4-6     appropriated for the coverages in the General Appropriations Act.
 4-7     The governing board of each state department and institution of
 4-8     higher education participating in the program established under
 4-9     this Act shall pay the trustee a like amount for each employee's
4-10     individual or dependent group coverages for their employees who
4-11     are, and retirees who were, compensated from funds not appropriated
4-12     in the General Appropriations Act.  The departments and
4-13     institutions shall include the required contributions from funds
4-14     not appropriated in the General Appropriations Act in their annual
4-15     operating budgets.  Each state department and institution of higher
4-16     education participating in the program shall assure current
4-17     participant coverages based on the records of the trustee, make
4-18     timely payments of amounts due the trustee from all fund sources
4-19     under the control of the department or institution, and reconcile
4-20     trustee and agency records of coverages and payments monthly.
4-21     There is hereby allocated to the trustee, in accordance with the
4-22     provisions of this Act, from the several funds from which employees
4-23     receive their respective salaries, a sum equal to the total of all
4-24     employer contributions computed in accordance with the provisions
4-25     of this Act and the rules and regulations of the trustee
4-26     promulgated pursuant thereto.  In the event that a public
 5-1     community/junior college elects to continue the health benefits of
 5-2     a former member of the governing body of the institution who
 5-3     rendered at least 10 continuous years of service and is at least 55
 5-4     years of age, the required contributions shall be paid from funds
 5-5     under the control of the institution or from the personal funds of
 5-6     the former member, but in no event shall the required contributions
 5-7     be paid by the state.
 5-8           SECTION 3.  This Act takes effect September 1, 1999.
 5-9           SECTION 4.  The importance of this legislation and the
5-10     crowded condition of the calendars in both houses create an
5-11     emergency and an imperative public necessity that the
5-12     constitutional rule requiring bills to be read on three several
5-13     days in each house be suspended, and this rule is hereby suspended.