1-1 By: West (Senate Sponsor - Bivins) H.B. No. 1254
1-2 (In the Senate - Received from the House April 26, 2001;
1-3 April 27, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 9, 2001, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 9, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the extension of uniform group benefits for political
1-9 subdivisions to certain affiliated service contractors.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 172.002, Local Government Code, is
1-12 amended to read as follows:
1-13 Sec. 172.002. PURPOSE. The purpose of this chapter is to:
1-14 (1) provide uniformity in benefits including accident,
1-15 health, dental, and long-term disability coverage to employees of
1-16 political subdivisions;
1-17 (2) enable the political subdivisions to attract and
1-18 retain competent and able employees by providing them with accident
1-19 and health benefits coverages at least equal to those commonly
1-20 provided in private industry;
1-21 (3) foster, promote, and encourage employment by and
1-22 service to political subdivisions as a career profession for
1-23 persons of high standards of competence and ability;
1-24 (4) recognize and protect the political subdivisions'
1-25 investment in each permanent employee by promoting and preserving
1-26 economic security and good health among those employees;
1-27 (5) foster and develop high standards of
1-28 employer-employee relationships between each political subdivision
1-29 and its employees;
1-30 (6) recognize the service to political subdivisions by
1-31 elected officials and employees of affiliated service contractors
1-32 by extending to them the same accident and health benefits
1-33 coverages as are provided for political subdivision employees; and
1-34 (7) recognize the long and faithful service and
1-35 dedication of employees of political subdivisions and to encourage
1-36 them to remain in service of their respective political
1-37 subdivisions until eligible for retirement by providing health
1-38 benefits to those employees.
1-39 SECTION 2. Section 172.003, Local Government Code, is
1-40 amended to read as follows:
1-41 Sec. 172.003. DEFINITIONS. In this chapter:
1-42 (1) "Affiliated service contractor" means an
1-43 organization qualified for exemption under Section 501(c), Internal
1-44 Revenue Code (26 U.S.C. Section 501(c)), as amended, that provides
1-45 governmental or quasi-governmental services on behalf of a
1-46 political subdivision and derives more than 50 percent of its gross
1-47 revenues from grants or funding from the political subdivision.
1-48 (2) "Employee" means a person who works at least 20
1-49 hours a week for a political subdivision.
1-50 (3) [(2)] "Political subdivision" means a county,
1-51 municipality, special district, school district, junior college
1-52 district, housing authority, or other political subdivision of the
1-53 state.
1-54 SECTION 3. Sections 172.004(a) and (c), Local Government
1-55 Code, are amended to read as follows:
1-56 (a) A political subdivision or a group of political
1-57 subdivisions pursuant to The Interlocal Cooperation Act (Chapter
1-58 791, Government Code) [(Article 4413(32c), Vernon's Texas Civil
1-59 Statutes)] directly or through a risk pool may provide health and
1-60 accident coverage for political subdivision officials, employees,
1-61 and retirees or any class of officials, employees, or retirees, and
1-62 employees of affiliated service contractors.
1-63 (c) A political subdivision also may include under the
1-64 coverage dependents of the officers, employees, and retirees and of
2-1 employees of affiliated service contractors.
2-2 SECTION 4. Sections 172.005(a) and (b), Local Government
2-3 Code, are amended to read as follows:
2-4 (a) A political subdivision may establish a risk pool or may
2-5 enter into an interlocal agreement under The Interlocal Cooperation
2-6 Act (Chapter 791, Government Code) [(Article 4413(32c), Vernon's
2-7 Texas Civil Statutes)] with other political subdivisions to
2-8 establish a risk pool to provide health and accident coverage for
2-9 officials, employees, retirees, employees of affiliated service
2-10 contractors, and their dependents.
2-11 (b) Contributions paid by a political subdivision's
2-12 officials, employees, and retirees and employees of affiliated
2-13 service contractors for coverage shall be deposited to the credit
2-14 of the risk pool's fund and used as provided by rules of the risk
2-15 pool.
2-16 SECTION 5. Section 172.013(b), Local Government Code, is
2-17 amended to read as follows:
2-18 (b) A political subdivision also may pay all or part of the
2-19 contributions for coverage for officers, employees, retirees, and
2-20 dependents, but may not pay any part of the contributions for
2-21 coverage for employees of affiliated service contractors or their
2-22 dependents.
2-23 SECTION 6. Chapter 172, Local Government Code, is amended by
2-24 adding Section 172.016 to read as follows:
2-25 Sec. 172.016. STATUS OF AFFILIATED SERVICE CONTRACTORS.
2-26 Inclusion of the employees of affiliated service contractors in the
2-27 uniform group benefits program authorized by this chapter does not,
2-28 for any purpose:
2-29 (1) make an affiliated service contractor a political
2-30 subdivision or a division of a political subdivision; or
2-31 (2) make an employee of an affiliated service
2-32 contractor an employee of a political subdivision or a division of
2-33 a political subdivision.
2-34 SECTION 7. This Act takes effect September 1, 2001.
2-35 * * * * *