1-1 By: Jackson S.B. No. 1749 1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read 1-3 first time and referred to Committee on State Affairs; 1-4 April 7, 1999, reported favorably by the following vote: Yeas 9, 1-5 Nays 0; April 7, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to participation in the Texas Employees Uniform Group 1-9 Insurance Benefits Act by certain former members of the governing 1-10 bodies of community/junior colleges. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subdivision (5), Subsection (a), Section 3, Texas 1-13 Employees Uniform Group Insurance Benefits Act (Article 3.50-2, 1-14 Vernon's Texas Insurance Code), is amended to read as follows: 1-15 (5)(A) "Employee" shall mean any appointive or 1-16 elective officer or employee in the service of the State of Texas, 1-17 including an employee of an institution of higher education: 1-18 (i) who is retired or retires and is an 1-19 annuitant under the jurisdiction of the Employees Retirement System 1-20 of Texas, pursuant to Subtitle B, D, or E; 1-21 (ii) who is retired or retires and is an 1-22 annuitant under the jurisdiction of the Teacher Retirement System 1-23 of Texas, pursuant to Subtitle C, Title 8, Government Code, or 1-24 pursuant to Chapter 803, Government Code, and whose last employment 1-25 with the state prior to retirement, including employment by a 1-26 public community/junior college, was as an employee of a department 1-27 whose employees are authorized to participate in the Texas 1-28 employees uniform group insurance program; 1-29 (iii) who is retired or retires and is an 1-30 annuitant under the optional retirement program established by 1-31 Chapter 830, Government Code, if the person's last state employment 1-32 before retirement, including employment by a public 1-33 community/junior college, was as an employee of a department whose 1-34 employees are authorized to participate in the Texas employees 1-35 uniform group insurance program, and if the person either: 1-36 (a) would have been 1-37 eligible to retire and receive a service retirement annuity from 1-38 the Teacher Retirement System of Texas or the Employees Retirement 1-39 System of Texas had the person not elected to participate in the 1-40 optional retirement program; or 1-41 (b) is disabled as 1-42 determined by the Employees Retirement System of Texas; 1-43 (iv) who receives compensation for 1-44 services rendered to the State of Texas, other than an employee of 1-45 an institution of higher education described by this subdivision, 1-46 on a warrant issued pursuant to a payroll certified by a department 1-47 or by an elected or duly appointed officer of this state; 1-48 (v) who receives payment for the 1-49 performance of personal services on a warrant issued pursuant to a 1-50 payroll certified by a department and drawn by the comptroller upon 1-51 the State Treasury against appropriations made by the Texas 1-52 Legislature from any state funds or against any trust funds held by 1-53 the comptroller or who is paid from funds of an official budget of 1-54 a state department, rather than from funds of the General 1-55 Appropriations Act; 1-56 (vi) who is appointed, subject to 1-57 confirmation of the senate, as a member of a board or commission 1-58 with administrative responsibility over a statutory agency having 1-59 statewide jurisdiction whose employees are covered by this Act; 1-60 (vii) who is a member of the governing 1-61 body of an institution of higher education, as that term is defined 1-62 by this Act, or who was a member of the governing body of a public 1-63 community/junior college who rendered at least 10 continuous years 1-64 of service and who is at least 55 years of age; 2-1 (viii) who is a member of the State Board 2-2 of Education; 2-3 (ix) who receives compensation for 2-4 services rendered to an institution of higher education on a 2-5 warrant or check issued pursuant to a payroll certified by an 2-6 institution of higher education or by an elected or duly appointed 2-7 officer of this state, and who is eligible for participation in the 2-8 Teacher Retirement System of Texas; or 2-9 (x) who receives compensation for services 2-10 rendered to an institution of higher education as provided by this 2-11 subdivision but is not permitted to be a member of the Teacher 2-12 Retirement System of Texas because the person is solely employed by 2-13 an institution of higher education that as a condition of 2-14 employment requires the person to be enrolled as a student in an 2-15 institution of higher education in graduate-level courses and who 2-16 is employed by the institution at least 20 hours a week. 2-17 (B) Persons performing personal services for the 2-18 State of Texas as independent contractors shall never be considered 2-19 employees of the state for purposes of this Act. 2-20 SECTION 2. Subsection (b), Section 15, Texas Employees 2-21 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's 2-22 Texas Insurance Code), is amended to read as follows: 2-23 (b) The state shall contribute to the cost of each 2-24 employee's individual and dependent group coverages the amounts 2-25 appropriated for the coverages in the General Appropriations Act. 2-26 The governing board of each state department and institution of 2-27 higher education participating in the program established under 2-28 this Act shall pay the trustee a like amount for each employee's 2-29 individual or dependent group coverages for their employees who 2-30 are, and retirees who were, compensated from funds not appropriated 2-31 in the General Appropriations Act. The departments and 2-32 institutions shall include the required contributions from funds 2-33 not appropriated in the General Appropriations Act in their annual 2-34 operating budgets. Each state department and institution of higher 2-35 education participating in the program shall assure current 2-36 participant coverages based on the records of the trustee, make 2-37 timely payments of amounts due the trustee from all fund sources 2-38 under the control of the department or institution, and reconcile 2-39 trustee and agency records of coverages and payments monthly. 2-40 There is hereby allocated to the trustee, in accordance with the 2-41 provisions of this Act, from the several funds from which employees 2-42 receive their respective salaries, a sum equal to the total of all 2-43 employer contributions computed in accordance with the provisions 2-44 of this Act and the rules and regulations of the trustee 2-45 promulgated pursuant thereto. In the event that a public 2-46 community/junior college elects to continue the health benefits of 2-47 a former member of the governing body of the institution who 2-48 rendered at least 10 continuous years of service and is at least 55 2-49 years of age, the required contributions shall be paid from funds 2-50 under the control of the institution or from the personal funds of 2-51 the former member, but in no event shall the required contributions 2-52 be paid by the state. 2-53 SECTION 3. This Act takes effect September 1, 1999. 2-54 SECTION 4. The importance of this legislation and the 2-55 crowded condition of the calendars in both houses create an 2-56 emergency and an imperative public necessity that the 2-57 constitutional rule requiring bills to be read on three several 2-58 days in each house be suspended, and this rule is hereby suspended. 2-59 * * * * *