By Farabee                                            H.B. No. 2211
         77R5698 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to participation by employees of certain community centers
 1-3     in the uniform group insurance program for state employees.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5              ARTICLE 1.  PARTICIPATION BY COMMUNITY CENTERS IN
 1-6             UNIFORM GROUP INSURANCE PROGRAM FOR STATE EMPLOYEES
 1-7           SECTION 1.01. Section 2, Texas Employees Uniform Group
 1-8     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
 1-9     Code), is amended to read as follows:
1-10           Sec. 2.  PURPOSES. It is hereby declared that the purposes of
1-11     this Act are:
1-12                 (a)  to provide uniformity in life, accident, and
1-13     health benefits coverages on all employees of the State of Texas
1-14     and their dependents;
1-15                 (b)  to enable the State of Texas to attract and retain
1-16     competent and able employees by providing them and their dependents
1-17     with life, accident, and health benefits coverages at least equal
1-18     to those commonly provided in private industry;
1-19                 (c)  to foster, promote, and encourage employment by
1-20     and service to the State of Texas as a career profession for
1-21     persons of high standards of competence and ability;
1-22                 (d)  to recognize and protect the state's investment in
1-23     each permanent employee by promoting and preserving economic
1-24     security and good health among state employees and their
 2-1     dependents;
 2-2                 (e)  to foster and develop high standards of
 2-3     employer-employee relationships between the State of Texas and its
 2-4     employees;
 2-5                 (f)  to recognize the service to the state by elected
 2-6     state officials by extending to them and their dependents the same
 2-7     life, accident, and health benefits coverages as are provided
 2-8     herein for state employees and their dependents; [and]
 2-9                 (g)  to recognize the long and faithful service and
2-10     dedication of employees of the State of Texas and to encourage them
2-11     to remain in state service until eligible for retirement by
2-12     providing health benefits for such employees and their dependents;
2-13     and
2-14                 (h)  to recognize the service to the state by employees
2-15     of community centers by extending to them and their dependents the
2-16     same life, accident, and health benefits coverages as are provided
2-17     in this Act for state employees and their dependents.
2-18           SECTION 1.02. Section 3(a)(5), Texas Employees Uniform Group
2-19     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
2-20     Code), is amended by adding Paragraph (E) to read as follows:
2-21                       (E)  An employee of a community center shall be
2-22     treated as an employee for purposes of this Act only as provided by
2-23     Section 3E of this Act.
2-24           SECTION 1.03. Section 3(a), Texas Employees Uniform Group
2-25     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
2-26     Code), is amended by adding Subdivision (25) to read as follows:
2-27                 (25)  "Employee of a community center" means an
 3-1     employee of a center established under Subchapter A, Chapter 534,
 3-2     Health and Safety Code.
 3-3           SECTION 1.04. The Texas Employees Uniform Group Insurance
 3-4     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
 3-5     amended by adding Section 3E to read as follows:
 3-6           Sec. 3E.  PARTICIPATION BY COMMUNITY CENTERS. (a)  A
 3-7     community center established under Subchapter A, Chapter 534,
 3-8     Health and Safety Code, may participate in the uniform group
 3-9     insurance program administered by the trustee under this Act.
3-10     Participation under this section is limited to the active employees
3-11     of the community center and the eligible dependents of those
3-12     employees.
3-13           (b)  Each full-time active employee of a participating
3-14     community center is automatically covered by the basic coverage for
3-15     employees unless the employee specifically waives coverage or
3-16     unless the employee is  expelled from the program.  Each part-time
3-17     active employee of a participating community center is eligible to
3-18     participate in the uniform group insurance program on application
3-19     in the manner provided by the trustee, unless the employee has been
3-20     expelled from the program.  A participating community center shall
3-21     notify each of its part-time employees of the employee's
3-22     eligibility for participation.
3-23           (c)  An employee described by this section is not eligible to
3-24     receive a state contribution for premiums.  The board of trustees
3-25     of the participating community center is responsible for payment of
3-26     the contributions that the state would make if the community center
3-27     employees were state employees.  The board of trustees of a
 4-1     participating community center shall contribute for each employee
 4-2     covered by the uniform group insurance program an amount equal to
 4-3     100 percent of the cost for the employee only of the basic coverage
 4-4     authorized by the trustee for active employees.  Each covered
 4-5     employee shall pay that portion of the cost of group coverages
 4-6     selected by the employee that exceeds the amount of department
 4-7     contributions.
 4-8           (d)  All contributions received under this section from
 4-9     community centers and active employees of community centers for
4-10     basic, optional, and voluntary coverages under the uniform group
4-11     insurance program shall be paid into the employees life, accident,
4-12     and health insurance and benefits fund and shall be used by the
4-13     trustee to provide those coverages as provided by this Act.
4-14           (e)  A community center that elects to participate in the
4-15     uniform group insurance program must notify the trustee not later
4-16     than December 31, 2001.
4-17                      ARTICLE 2.  CONFORMING AMENDMENT
4-18           SECTION 2.01. Section 534.011, Health and Safety Code, is
4-19     amended to read as follows:
4-20           Sec. 534.011.  PERSONNEL; BENEFITS. (a)  The executive
4-21     director, in accordance with the policies of the board of trustees,
4-22     shall employ and train personnel to administer the community
4-23     center's programs and services.  The community center may recruit
4-24     those personnel and contract for recruiting and training purposes.
4-25           (b)  The board of trustees shall provide employees of the
4-26     community center with appropriate rights and[,] privileges[, and
4-27     benefits].
 5-1           (c)  The board of trustees shall provide appropriate
 5-2     benefits, including group benefits subject to Subsection (g), to
 5-3     employees of the community center.  The board of trustees may
 5-4     provide workers' compensation benefits.
 5-5           (d)  The board of trustees shall prescribe the number of
 5-6     employees and their salaries.  The board of trustees may choose to
 5-7     set salaries and benefits, other than group benefits subject to
 5-8     Subsection (g), in compliance with a market analysis or internal
 5-9     salary study.  If an internal salary study is used, the board of
5-10     trustees shall conduct the study in accordance with the guidelines
5-11     established by the commissioner.
5-12           (e)  Instead of using a market analysis or internal salary
5-13     study to establish salaries and benefits, the board of trustees may
5-14     use the state position classification plan and the General
5-15     Appropriations Act to determine the appropriate classification and
5-16     relative compensation of officers and employees.  The board of
5-17     trustees may pay salaries in amounts less than those provided by
5-18     the General Appropriations Act.  For a position not on the
5-19     classification plan, the board of trustees shall set the
5-20     compensation according to guidelines adopted by the commissioner.
5-21     The board of trustees may petition the department for approval to
5-22     exclude a position from the position classification plan and to
5-23     provide a stated salary for that position that exceeds the amount
5-24     prescribed by the General Appropriations Act for the classified
5-25     position.
5-26           (f)  During a management audit of a community center, the
5-27     department is entitled to confirm the method the center used to
 6-1     determine salaries and benefits.
 6-2           (g)  Employees of a community center are eligible to
 6-3     participate in the uniform group insurance program established
 6-4     under the Texas Employees Uniform Group Insurance Benefits Act
 6-5     (Article 3.50-2, Vernon's Texas Insurance Code) as provided by
 6-6     Section 3E of that Act.
 6-7                   ARTICLE 3.  TRANSITION; EFFECTIVE DATE
 6-8           SECTION 3.01. (a)  During the 2001-2002 state fiscal year,
 6-9     the Employees Retirement System of Texas shall develop a plan for
6-10     the extension of benefits under the uniform group insurance program
6-11     to persons eligible for those benefits under Section 3E, Texas
6-12     Employees Uniform Group Insurance  Benefits Act (Article 3.50-2,
6-13     Vernon's Texas Insurance Code), as added by this Act.  The system
6-14     may employ persons as necessary to implement this subsection.
6-15           (b)  Coverage under Section 3E, Texas Employees Uniform Group
6-16     Insurance  Benefits Act (Article 3.50-2, Vernon's Texas Insurance
6-17     Code), as added by this Act, shall begin with the 2002-2003 state
6-18     fiscal year, but not later than September 1, 2002.
6-19           SECTION 3.02. For each community center established under
6-20     Subchapter A, Chapter 534, Health and Safety Code, that elects to
6-21     participate in the uniform group insurance program under Section
6-22     3E, Texas Employees Uniform Group Insurance Benefits Act (Article
6-23     3.50-2, Vernon's Texas Insurance Code), as added by this Act, the
6-24     board of trustees of the community center shall, not later than
6-25     September 1, 2002, transfer from any employee benefits program
6-26     described by Section 534.011, Health and Safety Code, as that
6-27     section existed before amendment by this Act, all records relating
 7-1     to group insurance and related coverage of active community center
 7-2     employees under that program to the Employees Retirement System of
 7-3     Texas.
 7-4           SECTION 3.03. (a)  This Act takes effect September 1, 2001,
 7-5     except that Article 2 of this Act takes effect September 1, 2002.
 7-6           (b)  The Employees Retirement System of Texas shall adopt
 7-7     rules as necessary to implement Section 3.01 of this Act not later
 7-8     than December 31, 2001.