By West H.B. No. 1254
77R4280 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the extension of uniform group benefits for political
1-3 subdivisions to certain affiliated service contractors.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 172.002, Local Government Code, is
1-6 amended to read as follows:
1-7 Sec. 172.002. PURPOSE. The purpose of this chapter is to:
1-8 (1) provide uniformity in benefits including accident,
1-9 health, dental, and long-term disability coverage to employees of
1-10 political subdivisions;
1-11 (2) enable the political subdivisions to attract and
1-12 retain competent and able employees by providing them with accident
1-13 and health benefits coverages at least equal to those commonly
1-14 provided in private industry;
1-15 (3) foster, promote, and encourage employment by and
1-16 service to political subdivisions as a career profession for
1-17 persons of high standards of competence and ability;
1-18 (4) recognize and protect the political subdivisions'
1-19 investment in each permanent employee by promoting and preserving
1-20 economic security and good health among those employees;
1-21 (5) foster and develop high standards of
1-22 employer-employee relationships between each political subdivision
1-23 and its employees;
1-24 (6) recognize the service to political subdivisions by
2-1 elected officials and employees of affiliated service contractors
2-2 by extending to them the same accident and health benefits
2-3 coverages as are provided for political subdivision employees; and
2-4 (7) recognize the long and faithful service and
2-5 dedication of employees of political subdivisions and to encourage
2-6 them to remain in service of their respective political
2-7 subdivisions until eligible for retirement by providing health
2-8 benefits to those employees.
2-9 SECTION 2. Section 172.003, Local Government Code, is
2-10 amended to read as follows:
2-11 Sec. 172.003. DEFINITIONS. In this chapter:
2-12 (1) "Affiliated service contractor" means an
2-13 organization qualified for exemption under Section 501(c), Internal
2-14 Revenue Code (26 U.S.C. Section 501(c)), as amended, that provides
2-15 governmental or quasi-governmental services on behalf of a
2-16 political subdivision and derives more than 50 percent of its gross
2-17 revenues from grants or funding from the political subdivision.
2-18 (2) "Employee" means a person who works at least 20
2-19 hours a week for a political subdivision.
2-20 (3) [(2)] "Political subdivision" means a county,
2-21 municipality, special district, school district, junior college
2-22 district, housing authority, or other political subdivision of the
2-23 state.
2-24 SECTION 3. Sections 172.004(a) and (c), Local Government
2-25 Code, are amended to read as follows:
2-26 (a) A political subdivision or a group of political
2-27 subdivisions pursuant to The Interlocal Cooperation Act (Chapter
3-1 791, Government Code) [(Article 4413(32c), Vernon's Texas Civil
3-2 Statutes)] directly or through a risk pool may provide health and
3-3 accident coverage for political subdivision officials, employees,
3-4 and retirees or any class of officials, employees, or retirees, and
3-5 employees of affiliated service contractors.
3-6 (c) A political subdivision also may include under the
3-7 coverage dependents of the officers, employees, and retirees and of
3-8 employees of affiliated service contractors.
3-9 SECTION 4. Sections 172.005(a) and (b), Local Government
3-10 Code, are amended to read as follows:
3-11 (a) A political subdivision may establish a risk pool or may
3-12 enter into an interlocal agreement under The Interlocal Cooperation
3-13 Act (Chapter 791, Government Code) [(Article 4413(32c), Vernon's
3-14 Texas Civil Statutes)] with other political subdivisions to
3-15 establish a risk pool to provide health and accident coverage for
3-16 officials, employees, retirees, employees of affiliated service
3-17 contractors, and their dependents.
3-18 (b) Contributions paid by a political subdivision's
3-19 officials, employees, and retirees and employees of affiliated
3-20 service contractors for coverage shall be deposited to the credit
3-21 of the risk pool's fund and used as provided by rules of the risk
3-22 pool.
3-23 SECTION 5. Section 172.013(b), Local Government Code, is
3-24 amended to read as follows:
3-25 (b) A political subdivision also may pay all or part of the
3-26 contributions for coverage for officers, employees, retirees, and
3-27 dependents, but may not pay any part of the contributions for
4-1 coverage for employees of affiliated service contractors or their
4-2 dependents.
4-3 SECTION 6. Chapter 172, Local Government Code, is amended by
4-4 adding Section 172.016 to read as follows:
4-5 Sec. 172.016. STATUS OF AFFILIATED SERVICE CONTRACTORS.
4-6 Inclusion of the employees of affiliated service contractors in the
4-7 uniform group benefits program authorized by this chapter does not,
4-8 for any purpose:
4-9 (1) make an affiliated service contractor a political
4-10 subdivision or a division of a political subdivision; or
4-11 (2) make an employee of an affiliated service
4-12 contractor an employee of a political subdivision or a division of
4-13 a political subdivision.
4-14 SECTION 7. This Act takes effect September 1, 2001.