77R12711 E                           
         By Haggerty                                           H.B. No. 1076
         Substitute the following for H.B. No. 1076:
         By Tillery                                        C.S.H.B. No. 1076
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to participation by employees and retired employees of
 1-3     community supervision and corrections departments in the uniform
 1-4     group insurance program for state employees.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           ARTICLE 1.  PARTICIPATION BY COMMUNITY SUPERVISION AND
 1-7             CORRECTIONS DEPARTMENTS IN UNIFORM GROUP INSURANCE
 1-8                         PROGRAM FOR STATE EMPLOYEES
 1-9           SECTION 1.01. Section 2, Texas Employees Uniform Group
1-10     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
1-11     Code), is amended to read as follows:
1-12           Sec. 2.  PURPOSES.  It is hereby declared that the purposes
1-13     of this Act are:
1-14                 (a)  to provide uniformity in life, accident, and
1-15     health benefits coverages on all employees of the State of Texas
1-16     and their dependents;
1-17                 (b)  to enable the State of Texas to attract and retain
1-18     competent and able employees by providing them and their dependents
1-19     with life, accident, and health benefits coverages at least equal
1-20     to those commonly provided in private industry;
1-21                 (c)  to foster, promote, and encourage employment by
1-22     and service to the State of Texas as a career profession for
1-23     persons of high standards of competence and ability;
1-24                 (d)  to recognize and protect the state's investment in
 2-1     each permanent employee by promoting and preserving economic
 2-2     security and good health among state employees and their
 2-3     dependents;
 2-4                 (e)  to foster and develop high standards of
 2-5     employer-employee relationships between the State of Texas and its
 2-6     employees;
 2-7                 (f)  to recognize the service to the state by elected
 2-8     state officials by extending to them and their dependents the same
 2-9     life, accident, and health benefits coverages as are provided
2-10     herein for state employees and their dependents; [and]
2-11                 (g)  to recognize the long and faithful service and
2-12     dedication of employees of the State of Texas and to encourage them
2-13     to remain in state service until eligible for retirement by
2-14     providing health benefits for such employees and their dependents;
2-15     and
2-16                 (h)  to recognize the service to the state by employees
2-17     of community supervision and corrections departments by extending
2-18     to them and their dependents the same life, accident, and health
2-19     benefits coverages as are provided in this Act for state employees
2-20     and their dependents.
2-21           SECTION 1.02.  Section 3(a)(5), Texas Employees Uniform Group
2-22     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
2-23     Code), is amended by adding Paragraph (D) to read as follows:
2-24                       (D)  An employee or retired employee of a
2-25     community supervision and corrections department shall be treated
2-26     as an employee or annuitant, as applicable, for purposes of this
2-27     Act only as provided by Section 3D of this Act.
 3-1           SECTION 1.03. Section 3(a), Texas Employees Uniform Group
 3-2     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
 3-3     Code), is amended by adding Subdivision (24) to read as follows:
 3-4                 (24)  "Employee of a community supervision and
 3-5     corrections department" means an employee of a department
 3-6     established under Chapter 76, Government Code.
 3-7           SECTION 1.04. The Texas Employees Uniform Group Insurance
 3-8     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
 3-9     amended by adding Section 3D to read as follows:
3-10           Sec. 3D.  PARTICIPATION BY COMMUNITY SUPERVISION AND
3-11     CORRECTIONS DEPARTMENTS. (a)  A community supervision and
3-12     corrections department of this state may participate in the uniform
3-13     group insurance program administered by the trustee under this Act.
3-14     Participation under this section is limited to:
3-15                 (1)  the active employees of the community supervision
3-16     and corrections department and the eligible dependents of those
3-17     employees; and
3-18                 (2)  retired employees who have been employed by a
3-19     particular community supervision and corrections department for at
3-20     least a total of 10 years of creditable service and who meet all of
3-21     the requirements for retirement benefits prescribed by the Texas
3-22     County and District Retirement System and the spouse and the
3-23     eligible dependent children of those retired employees.
3-24           (b)  Each full-time active employee of a participating
3-25     community supervision and corrections department is automatically
3-26     covered by the basic coverage for employees unless the employee
3-27     specifically waives coverage or unless the employee is  expelled
 4-1     from the program.  Each part-time active employee of a
 4-2     participating community supervision and corrections department is
 4-3     eligible to participate in the uniform group insurance program on
 4-4     application in the manner provided by the trustee, unless the
 4-5     employee has been expelled from the program.  A participating
 4-6     community supervision and corrections department shall notify each
 4-7     of its part-time employees of the employee's eligibility for
 4-8     participation.
 4-9           (c)  An active employee described by Subsection (b) of this
4-10     section is not eligible to receive a state contribution for
4-11     premiums.  The employing community supervision and corrections
4-12     department is responsible for payment of the contributions that the
4-13     state would make if the community supervision and corrections
4-14     department active employees were state employees.  A community
4-15     supervision and corrections department shall contribute for each
4-16     active employee covered by the uniform group insurance program an
4-17     amount equal to:  (1)  100 percent of the cost for the employee
4-18     only of the basic coverage authorized by the trustee for active
4-19     employees; and (2)  50 percent of the total cost of health coverage
4-20     for spouses and dependent children for active employees who enroll
4-21     in coverage categories which include a spouse and/or dependent
4-22     children.  Each covered active employee shall pay that portion of
4-23     the cost of group coverages selected by the employee that exceeds
4-24     the amount of department  contributions.
4-25           (d)  Each retired employee of a participating community
4-26     supervision and corrections department who retires after September
4-27     1, 2002, and has been employed by that particular department for at
 5-1     least 10 years of creditable service is eligible to participate in
 5-2     the uniform group insurance program on application of the trustee.
 5-3     A retired employee is automatically covered by the basic coverage
 5-4     unless the retired employee specifically waives coverage, or unless
 5-5     the retired employee is expelled from the program.  A retired
 5-6     employee of a participating department who meets the above-stated
 5-7     criteria is eligible to enroll in the group insurance coverage
 5-8     categories which include a spouse and/or their dependent provided
 5-9     they:  (1)  pay for 50 percent of the total cost for the premiums
5-10     related to the spouse and/or dependent insurance coverages for
5-11     retired state employees; and (2)  meet all of the other
5-12     requirements and limitations of the trustee for such spouse and/or
5-13     dependent coverages.  The retired employee shall pay the
5-14     contributions required under this subsection in the manner
5-15     prescribed by the trustee.  A participating community supervision
5-16     and corrections department shall notify each of its retired
5-17     employees of their eligibility and costs associated with such
5-18     participation.
5-19           (e)  All contributions received under this section from
5-20     community supervision and corrections departments, active employees
5-21     of community supervision and corrections departments, and retired
5-22     employees of community supervision and corrections departments for
5-23     basic, optional, and voluntary coverages under the uniform group
5-24     insurance program shall be paid into the employees life, accident,
5-25     and health insurance and benefits fund and shall be used by the
5-26     trustee to provide those coverages as provided by this Act.
5-27           (f)  A community supervision and corrections department that
 6-1     elects to participate in the uniform group insurance program must
 6-2     notify the trustee not later than December 31, 2001.
 6-3           (g)  Notwithstanding anything to the contrary in the
 6-4     foregoing Subsections (b) and (c) of this section, a community
 6-5     supervision and corrections department shall only be responsible
 6-6     and obligated to pay for the percentage or portion of the
 6-7     contributions for health insurance for its active and retired
 6-8     employees, including their spouse and/or dependent children, that
 6-9     is equal to the state's percentage or portion as specified in the
6-10     rider to the applicable General Appropriations Act for health
6-11     insurance as to active and retired state employees.
6-12                      ARTICLE 2.  CONFORMING AMENDMENT
6-13           SECTION 2.01.  Section 76.006, Government Code, is amended to
6-14     read as follows:
6-15           Sec. 76.006.  EMPLOYEE STATUS; [AND] BENEFITS. (a)  Except as
6-16     provided by Subsection (b) [(c)], department employees are not
6-17     state employees.
6-18           (b)  Department employees are state employees for the
6-19     purposes of Chapter 104, Civil Practice and Remedies Code, and
6-20     Chapter 501, Labor Code.  Notwithstanding Subsection (a), a
6-21     department employee is eligible to participate in the uniform group
6-22     insurance program established under the Texas Employees Uniform
6-23     Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
6-24     Insurance Code) as provided by Section 3D of that Act.
6-25           (c)  A [The] department shall contract for all employee
6-26     benefits with one county served by the department and designated
6-27     for that purpose by the district judge or judges. To the extent
 7-1     that employee benefits are provided by a county under this
 7-2     subsection, [and] the employees are governed by personnel policies
 7-3     and benefits equal to personnel policies for and benefits of other
 7-4     employees of that county.  This subsection does not apply to
 7-5     employee benefits for group insurance and related coverages
 7-6     provided to employees of a department that participates in the
 7-7     uniform group insurance program for state employees.
 7-8           (d) [(b)]  The judicial districts served by a department
 7-9     shall pay the salaries of department employees.
7-10           (e) [(c)  Department employees are state employees for the
7-11     purposes of Chapter 104, Civil Practice and Remedies Code, and
7-12     Chapter 501, Labor Code.]
7-13           [(d)]  The attorney general has the duty to defend a
7-14     department for suits for injunctive, declaratory, or monetary
7-15     relief brought against it for any action not covered by an
7-16     indemnification policy, except any action brought by the state or
7-17     another political subdivision.  The attorney general shall not
7-18     defend a department or its employees in cases in which a person
7-19     under supervision challenges the fact or duration of the
7-20     supervision.
7-21           (f) [(e)]  The department shall provide information requested
7-22     by the attorney general that the attorney general considers
7-23     necessary for the defense or prosecution of any case brought under
7-24     this section.
7-25           (g) [(f)]  The department shall provide transportation or
7-26     automobile allowances for officers who supervise defendants placed
7-27     on community supervision.
 8-1           (h) [(g)]  A document evaluating the performance of an
 8-2     officer of the department who supervises defendants placed on
 8-3     community supervision is confidential.
 8-4           (i) [(h)]  If under Subsection (c) [(a)] the district judge
 8-5     or judges change the designation of the county providing employee
 8-6     benefits, the district judge or judges may not subsequently change
 8-7     that designation before the 10th anniversary of the date on which
 8-8     the previous designation was made.
 8-9                           ARTICLE 3.  TRANSITION
8-10           SECTION 3.01.  (a)  During the 2001-2002 state fiscal year,
8-11     the Employees Retirement System of Texas shall develop a plan for
8-12     the extension of benefits under the uniform group insurance program
8-13     to persons eligible for those benefits under Section 3D, Texas
8-14     Employees Uniform Group Insurance  Benefits Act (Article 3.50-2,
8-15     Vernon's Texas Insurance Code), as added by this Act.  The system
8-16     may employ persons as necessary to implement this subsection.
8-17           (b)  Coverage under Section 3D, Texas Employees Uniform Group
8-18     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
8-19     Code), as added by this Act, shall begin with the 2002-2003 state
8-20     fiscal year, but not later than September 1, 2002.
8-21           SECTION 3.02. For each community supervision and corrections
8-22     department that elects to participate in the uniform group
8-23     insurance program under Section 3D, Texas Employees Uniform Group
8-24     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
8-25     Code), as added by this Act, the commissioners court of the county
8-26     designated for the department under Section 76.006(a), Government
8-27     Code, as that section existed before amendment by this Act, shall,
 9-1     not later than September 1, 2002, transfer from the employee
 9-2     benefits program described by that section all records relating to
 9-3     group insurance and related coverage of department employees and
 9-4     retired employees, if applicable, under that program to the
 9-5     Employees Retirement System of Texas.
 9-6           SECTION 3.03. (a)  This Act takes effect September 1, 2001,
 9-7     except that Article 2 of this Act takes effect September 1, 2002.
 9-8           (b)  The Employees Retirement System of Texas shall adopt
 9-9     rules as necessary to implement Section 3.01 of this Act not later
9-10     than December 31, 2001.