By: Armbrister S.B. No. 292
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to programs and systems administered by the Employees
1-3 Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subdivisions (12) and (14), Section 811.001,
1-6 Government Code, are amended to read as follows:
1-7 (12) "Occupational death or disability" means death or
1-8 disability from an injury or disease that directly results from a
1-9 specific act or occurrence determinable by a definite time and
1-10 place, and directly results from a [an inherent] risk or a hazard
1-11 peculiar to and inherent in a duty that arises from and in the
1-12 course of state employment.
1-13 (14) "Retiree" means a person who, except as provided
1-14 by Section 812.203 [or 814.209], receives an annuity based on
1-15 service that was credited to the person in a class of membership.
1-16 SECTION 2. Subsection (b), Section 813.201, Government Code,
1-17 is amended to read as follows:
1-18 (b) A member may not[, after August 31, 1997,] accrue or
1-19 establish service credit in the employee class of membership when
1-20 the total amount of service credit, multiplied by the percentage in
1-21 effect for computing annuities under Section 814.103, 814.105, or
1-22 814.107 would exceed the number 100. When the maximum amount of
1-23 service credit is accrued or established by a member in the
1-24 employee or elected class, member and state contributions cease,
1-25 although the member retains membership subject to Section 812.005.
2-1 SECTION 3. Subsection (a), Section 813.504, Government
2-2 Code, is amended to read as follows:
2-3 (a) A person [member of the employee class] may reestablish
2-4 service credit previously canceled in the retirement system if:
2-5 (1) the person is a member of the employee class and
2-6 at least six months have elapsed since the end of the month in
2-7 which the cancellation became effective; or
2-8 (2) the person is:
2-9 (A) a former member of the employee class; and
2-10 (B) a participant in the optional retirement
2-11 program under Chapter 830.
2-12 SECTION 4. Section 813.509, Government Code, is amended to
2-13 read as follows:
2-14 Sec. 813.509. CREDIT FOR ACCUMULATED SICK LEAVE. (a) A
2-15 member is entitled to service credit in the retirement system for
2-16 the member's sick leave that has accumulated and is unused on the
2-17 last day of employment if the member:
2-18 (1) [who] holds a position included in the employee
2-19 class of membership during the month that includes the effective
2-20 date of the member's retirement and [who] retires based on service
2-21 or a disability; or
2-22 (2) on or after September 1, 2000, has at least 10
2-23 years of membership service that has never been canceled and holds
2-24 a position included in the employee class of membership during the
2-25 month that includes the effective date of the member's termination
2-26 of employment [is entitled to service credit in the retirement
3-1 system for the member's sick leave that has accumulated and is
3-2 unused on the last day of employment].
3-3 (b) A death benefit designee under Section 814.301 or
3-4 814.302 of a member who holds a position included in the employee
3-5 class of membership during the month that includes the member's
3-6 date of death is entitled to service credit in the retirement
3-7 system for the member's sick leave that has accumulated and is
3-8 unused on the member's date of death.
3-9 (c) Sick leave is creditable in the retirement system at the
3-10 rate of one month of service credit for each 20 days, or 160 hours,
3-11 of accumulated sick leave and one month for each fraction of days
3-12 or hours remaining after division of the total hours of accumulated
3-13 sick leave by 160.
3-14 (d) [(b)] A member who holds a position included in the
3-15 employee class may use sick leave creditable under this section to
3-16 satisfy service requirements for retirement under Section 814.104
3-17 or 814.107 if the sick leave attributed to the eligibility
3-18 requirements remains otherwise unused on the last day of
3-19 employment.
3-20 (e) A death benefit designee under Section 814.302 may use
3-21 the deceased member's sick leave credit under this section to
3-22 qualify for making a death benefit plan selection under Section
3-23 814.302.
3-24 (f) [(c)] Except as provided by Subsection (g) [(d)], the
3-25 disbursing officer of each department or agency shall, before the
3-26 11th day after the effective date of retirement, the date of
4-1 another employment termination described by Subsection (a), or the
4-2 date of death of one or more employees of the department or agency,
4-3 certify to the retirement system:
4-4 (1) the name of each person:
4-5 (A) whose employment termination is described by
4-6 Subsection (a);
4-7 (B) whose retirement from the department or
4-8 agency, and from state service, became effective during the
4-9 preceding month; or
4-10 (C) who died during the preceding month; and
4-11 (2) the amount of the person's accumulated sick leave
4-12 on the last day of employment or date of death.
4-13 (g) [(d)] The disbursing officer of a department or agency
4-14 that employs a member who applies for retirement under Subsection
4-15 (d) [(b)] shall, not more than 90 or less than 30 days before the
4-16 effective date of the member's retirement, certify to the
4-17 retirement system the amount of the member's accumulated and unused
4-18 sick leave. The officer shall immediately notify the retirement
4-19 system if the member uses sick leave after the date of
4-20 certification.
4-21 (h) [(e)] On receipt of a certification under Subsection (f)
4-22 [(c)] or (g) [(d)], the retirement system shall grant any credit to
4-23 which the [a] retiring member, [or] retiree, or member whose
4-24 employment has terminated [who is a subject of the certification]
4-25 is entitled. An increase in the computation of an annuity because
4-26 of credit provided by this section after a certification under
5-1 Subsection (f) [(c)] begins with the first payment that becomes due
5-2 after certification.
5-3 (i) [(f)] The retirement system shall cancel the retirement
5-4 of a person who used sick leave creditable under this section to
5-5 qualify for service retirement if the sick leave is otherwise used
5-6 by the person before the effective date of retirement.
5-7 (j) [(g)] In this section, "sick leave" does not include
5-8 credit granted under an agency sick-leave pool or under the Family
5-9 and Medical Leave Act of 1993 (Pub. L. 103-3), and its subsequent
5-10 amendments.
5-11 (k) If a member returns to employment with the state before
5-12 the first anniversary of the date of the member's termination of
5-13 employment, the member is not entitled to service credit previously
5-14 credited under this section.
5-15 SECTION 5. Section 813.511, Government Code, as added by
5-16 Chapter 1541, Acts of the 76th Legislature, Regular Session, 1999,
5-17 is amended to read as follows:
5-18 Sec. 813.511. CREDIT FOR ACCUMULATED ANNUAL LEAVE. (a) A
5-19 member who holds a position included in the employee class of
5-20 membership during the month that includes the effective date of the
5-21 member's retirement and who retires based on service or a
5-22 disability is entitled to service credit in the retirement system
5-23 for the member's annual leave that has accumulated and is unused on
5-24 the last day of employment.
5-25 (b) A death benefit designee under Section 814.301 or
5-26 814.302 of a member who holds a position included in the employee
6-1 class of membership during the month that includes the member's
6-2 date of death is entitled to service credit in the retirement
6-3 system for the member's annual leave that has accumulated and is
6-4 unused on the member's date of death.
6-5 (c) Annual leave is creditable in the retirement system at
6-6 the rate of one month of service credit for each 20 days, or 160
6-7 hours, of accumulated annual leave and one month for each fraction
6-8 of days or hours remaining after division of the total hours of
6-9 accumulated annual leave by 160.
6-10 (d) [(b)] A member who holds a position included in the
6-11 employee class may use annual leave creditable under this section
6-12 to satisfy service requirements for retirement under Section
6-13 814.104 or 814.107 if the annual leave attributed to the
6-14 eligibility requirements remains otherwise unused on the last day
6-15 of employment.
6-16 (e) A death benefit designee under Section 814.302 may use
6-17 the deceased member's annual leave credit under this section to
6-18 qualify for making a death benefit plan selection under Section
6-19 814.302.
6-20 (f) [(c)] Except as provided by Subsection (g) [(d)], the
6-21 disbursing officer of each department or agency shall, before the
6-22 11th day after the effective date of retirement or date of death of
6-23 one or more employees of the department or agency, certify to the
6-24 retirement system:
6-25 (1) the name of each person:
6-26 (A) whose retirement from the department or
7-1 agency, and from state service, became effective during the
7-2 preceding month; or
7-3 (B) who died during the preceding month; and
7-4 (2) the amount of the person's accumulated annual
7-5 leave on the last day of employment or date of death.
7-6 (g) [(d)] The disbursing officer of a department or agency
7-7 that employs a member who applies for retirement under Subsection
7-8 (d) [(b)] shall, not more than 90 or less than 30 days before the
7-9 effective date of the member's retirement, certify to the
7-10 retirement system the amount of the member's accumulated and unused
7-11 annual leave. The officer shall immediately notify the retirement
7-12 system if the member uses annual leave after the date of
7-13 certification.
7-14 (h) [(e)] On receipt of a certification under Subsection (f)
7-15 [(c)] or (g) [(d)], the retirement system shall grant any credit to
7-16 which a retiring member or retiree who is a subject of the
7-17 certification is entitled. An increase in the computation of an
7-18 annuity because of credit provided by this section after a
7-19 certification under Subsection (f) [(d)] begins with the first
7-20 payment that becomes due after certification.
7-21 (i) [(f)] The retirement system shall cancel the retirement
7-22 of a person who used annual leave creditable under this section to
7-23 qualify for service retirement if the annual leave is otherwise
7-24 used by the person before the effective date of retirement.
7-25 SECTION 6. Subchapter F, Chapter 813, Government Code, is
7-26 amended by adding Section 813.513 to read as follows:
8-1 Sec. 813.513. CREDIT PURCHASE OPTION. (a) An eligible
8-2 member may establish not more than 60 months of equivalent
8-3 membership service credit, including law enforcement or custodial
8-4 officer service, in either the elected class or the employee class.
8-5 (b) A member is eligible to establish service credit under
8-6 this section if the member has at least 120 months of actual
8-7 membership service of the type of service that the member seeks to
8-8 establish.
8-9 (c) A member may establish service credit under this section
8-10 by depositing with the retirement system, for each month of service
8-11 credit, the actuarial present value, at the time of deposit, of the
8-12 additional standard retirement annuity benefits that would be
8-13 attributable to the purchase of the service credit under this
8-14 section, based on rates and tables recommended by the retirement
8-15 system's actuary and adopted by the board of trustees.
8-16 (d) After a member makes the deposits required by this
8-17 section, the retirement system shall grant the member one month of
8-18 equivalent membership service credit for each month of credit
8-19 approved.
8-20 (e) The retirement system shall deposit the amount of the
8-21 actuarial present value of the service credit purchased in the
8-22 member's individual account in the employees saving account.
8-23 (f) The board of trustees may adopt rules to administer this
8-24 section, including rules that impose restrictions on the
8-25 application of this section.
8-26 SECTION 7. Subsections (b) and (f), Section 814.107,
9-1 Government Code, are amended to read as follows:
9-2 (b) The standard service retirement annuity payable for at
9-3 least 20 years of service credit as a law enforcement or custodial
9-4 officer is an amount computed on the basis of the member's average
9-5 monthly compensation [for that service] for the 36 highest months
9-6 of compensation in the employee class, times the sum of the
9-7 percentage factor used in the computation of a standard service
9-8 retirement annuity under Section 814.105 plus .5 percent.
9-9 (f) The standard combined service retirement annuity payable
9-10 for at least 20 years of service credit as a law enforcement or
9-11 custodial officer may not exceed 100 percent of the [higher of the]
9-12 average compensation computed under [Section 814.105 or the average
9-13 compensation computed under] Subsection (b).
9-14 SECTION 8. Section 814.108, Government Code, is amended by
9-15 adding Subsection (h) to read as follows:
9-16 (h) A beneficiary designation that names a former spouse as
9-17 beneficiary for a guaranteed optional annuity is invalid unless the
9-18 designation is made after the date of the divorce.
9-19 SECTION 9. Subsection (b), Section 814.1081, Government
9-20 Code, is amended to read as follows:
9-21 (b) If a retiree files a request as provided by Subsection
9-22 (a), the retirement system shall recompute the annuity as a
9-23 standard service retirement annuity. The increase in the [right to
9-24 receive payment of an] annuity under [as adjusted as provided by]
9-25 this section begins with the monthly [first] payment made to the
9-26 retiree for the month following the month in which [that becomes
10-1 due after the date] a request is filed as provided by Subsection
10-2 (a).
10-3 SECTION 10. Section 814.201, Government Code, is amended by
10-4 amending Subsection (c) and adding Subsection (d) to read as
10-5 follows:
10-6 (c) An application for an occupational disability retirement
10-7 annuity may not be made after the second anniversary of the date
10-8 the injury or disease that causes the disability occurs unless the
10-9 executive director permits the application after that date because
10-10 of a showing of good cause for delay.
10-11 (d) An applicant must submit to medical examination and
10-12 provide other pertinent information as required by the retirement
10-13 system.
10-14 SECTION 11. Section 814.202, Government Code, is amended by
10-15 adding Subsection (e) to read as follows:
10-16 (e) A member otherwise eligible may not apply for or receive
10-17 a nonoccupational disability annuity if the member is eligible for
10-18 a service retirement annuity under Section 814.102 or 814.104.
10-19 SECTION 12. Subchapter C, Chapter 814, Government Code, is
10-20 amended by adding Section 814.2055 to read as follows:
10-21 Sec. 814.2055. AVERAGE MONTHLY COMPENSATION. For purposes
10-22 of Sections 814.206 and 814.207, "average monthly compensation"
10-23 means:
10-24 (1) a member's average monthly compensation for
10-25 service in the employee class for the 36 highest months of
10-26 compensation; or
11-1 (2) a member's average monthly compensation for
11-2 service in the employee class if a member retires with less than 36
11-3 months of service.
11-4 SECTION 13. Subsections (a) and (b), Section 814.206,
11-5 Government Code, are amended to read as follows:
11-6 (a) Except as provided by Subsection (b) and Section
11-7 814.207, a standard disability retirement annuity for service
11-8 credited in the employee class of membership is an amount computed
11-9 at the rate of 2.25 [two] percent for each year of service credit
11-10 in that class, times[:]
11-11 [(1) the member's monthly compensation at the time of
11-12 the disabling injury or disease, if the disability is occupational;
11-13 or]
11-14 [(2)] the member's average monthly compensation [for
11-15 service in the employee class for the 36 highest months of
11-16 compensation, if the disability is nonoccupational].
11-17 (b) A standard disability retirement annuity under this
11-18 section may not be more than 100 percent of the average monthly
11-19 [applicable rate of] compensation or, if occupational, not less
11-20 than 35 percent of the average monthly compensation [applicable
11-21 rate,] or $150 a month, whichever is greater.
11-22 SECTION 14. Section 814.207, Government Code, is amended by
11-23 amending Subsections (b), (c), and (e) and adding Subsection (f) to
11-24 read as follows:
11-25 (b) Except as provided by Subsection (c), an occupational
11-26 disability retirement annuity under this section is an amount, but
12-1 not more than 100 percent, computed on the basis of the officer's
12-2 average monthly compensation [at the time of the disabling injury
12-3 or disease], times a percentage derived by application of Section
12-4 814.107(b).
12-5 (c) A disability retirement annuity under this section is
12-6 not reducible because of age and may not be less than 50 percent of
12-7 the officer's average monthly compensation regardless of the amount
12-8 of service credited to the officer in the employee class.
12-9 (e) If a retiring member or retiree under this section
12-10 presents evidence satisfactory to the retirement system that the
12-11 person's condition makes the person incapable of gainful occupation
12-12 and is considered a total disability under federal social security
12-13 law, the retirement system shall increase the person's occupational
12-14 disability retirement annuity to 100 percent of the officer's
12-15 average monthly compensation [at the time of the disabling injury
12-16 or disease].
12-17 (f) An annuity increase under Subsection (e) is not payable
12-18 before the first month following the month in which the
12-19 satisfactory evidence is received by the retirement system under
12-20 Subsection (e).
12-21 SECTION 15. Section 814.401, Government Code, is amended by
12-22 adding Subsection (e) to read as follows:
12-23 (e) A beneficiary designation that names a former spouse as
12-24 beneficiary is invalid unless the designation is made after the
12-25 date of the divorce.
12-26 SECTION 16. Section 814.505, Government Code, is amended by
13-1 adding Subsection (i) to read as follows:
13-2 (i) A beneficiary designation that names a former spouse as
13-3 beneficiary is invalid unless the designation is made after the
13-4 date of the divorce.
13-5 SECTION 17. Section 815.102, Government Code, is amended to
13-6 read as follows:
13-7 Sec. 815.102. RULEMAKING. (a) Subject to the limitations
13-8 of this subtitle, the board of trustees may adopt rules for:
13-9 (1) eligibility of membership;
13-10 (2) the administration of the funds of the retirement
13-11 system;
13-12 (3) the program of supplemental benefits for law
13-13 enforcement and custodial officers;
13-14 (4) hearings on contested cases or disputed claims;
13-15 and
13-16 (5) [(4)] the transaction of any other business of the
13-17 board.
13-18 (b) Rules adopted under this section related to a hearing on
13-19 a contested case or disputed claim control over rules adopted under
13-20 Section 2003.050.
13-21 SECTION 18. Section 815.103, Government Code, is amended by
13-22 adding Subsection (e) to read as follows:
13-23 (e) Subchapter C, Chapter 2260, does not apply to the
13-24 retirement system. The acceptance of benefits by the retirement
13-25 system under a contract does not waive immunity from suit or
13-26 immunity from liability.
14-1 SECTION 19. Section 815.318, Government Code, is amended to
14-2 read as follows:
14-3 Sec. 815.318. TRANSFER OF ASSETS FROM INTEREST ACCOUNT. (a)
14-4 The retirement system [board of trustees] shall transfer from the
14-5 interest account to the employees saving account amounts of
14-6 interest computed under Section 815.311 at the following times:
14-7 (1) as required during the fiscal year for a member's
14-8 account in the retirement system that is closed before the last day
14-9 of the fiscal year; and
14-10 (2) as of the last day of the fiscal year for a
14-11 member's account that is not closed before the last day of the
14-12 fiscal year.
14-13 (b) As required during the year, the retirement system
14-14 [board of trustees] shall transfer from the interest account to the
14-15 expense account amounts it determines necessary for the payment of
14-16 the retirement system's expenses that exceed the amount of money
14-17 available for those expenses.
14-18 (c) As of the last day of each fiscal year, the retirement
14-19 system [board of trustees] shall transfer from the interest account
14-20 to the retirement annuity reserve account an amount equal to:
14-21 (1) five percent of the mean amount in the retirement
14-22 annuity reserve account for that fiscal year; or
14-23 (2) an amount computed at a greater rate if the
14-24 actuary recommends the greater rate to finance adequately the
14-25 annuities payable from the retirement annuity reserve account.
14-26 (d) After making the transfers required by this section, the
15-1 retirement system [board of trustees], as of the last day of each
15-2 fiscal year, shall transfer the amount remaining in the interest
15-3 account to the state accumulation account.
15-4 SECTION 20. Subsection (a), Section 815.402, Government
15-5 Code, is amended to read as follows:
15-6 (a) Except as provided by Section 813.201, each [Each]
15-7 payroll period, each department or agency of the state shall cause
15-8 to be deducted from each member's compensation a contribution of:
15-9 (1) six percent of the compensation if the member is
15-10 not a member of the legislature; or
15-11 (2) eight percent of the compensation if the member is
15-12 a member of the legislature.
15-13 SECTION 21. Section 815.503, Government Code, is amended to
15-14 read as follows:
15-15 Sec. 815.503. RECORDS. (a) Records of members, [and]
15-16 annuitants, retirees, beneficiaries, and alternate payees under
15-17 retirement plans administered by the retirement system that are in
15-18 the custody of the system or of an administrator, carrier, or other
15-19 governmental agency acting in cooperation with or on behalf of the
15-20 retirement system are confidential and not subject to public
15-21 disclosure and are exempt from the public access provisions of
15-22 Chapter 552, except as otherwise provided by this section.
15-23 (b) Records may be released to a member, [or] annuitant,
15-24 retiree, beneficiary, or alternate payee or to an authorized
15-25 attorney, family member, or representative acting on behalf of the
15-26 member, [or] annuitant, retiree, beneficiary, or alternate payee.
16-1 The retirement system may release the records to an administrator,
16-2 carrier, or agent or attorney acting on behalf of the retirement
16-3 system, to another governmental entity having a legitimate need for
16-4 the information to perform the purposes of the retirement system,
16-5 or to a party in response to a subpoena issued under applicable
16-6 law.
16-7 (c) The records of a member, [or] annuitant, retiree,
16-8 beneficiary, or alternate payee remain confidential after release
16-9 to a person as authorized by this section. The records of a
16-10 member, [or] annuitant, retiree, beneficiary, or alternate payee
16-11 may become part of the public record of an administrative or
16-12 judicial proceeding related to a contested case under Subtitle D or
16-13 E or this subtitle, and the member, annuitant, retiree,
16-14 beneficiary, or alternate payee waives the confidentiality of the
16-15 records, including medical records unless the records are closed to
16-16 public access by a protective order issued under applicable law.
16-17 (d) The retirement system may require a person to provide
16-18 the person's social security number as the system considers
16-19 necessary to ensure the proper administration of all services,
16-20 benefits, plans, and programs under the retirement system's
16-21 administration, oversight, or participation, or as otherwise
16-22 required by state or federal law.
16-23 SECTION 22. Section 840.402, Government Code, is amended to
16-24 read as follows:
16-25 Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of
16-26 members, [and] annuitants, retirees, beneficiaries, and alternate
17-1 payees of the retirement system are confidential under [within the
17-2 terms of] Section 815.503.
17-3 SECTION 23. Subdivisions (2) and (8), Subsection (a),
17-4 Section 3, Texas Employees Uniform Group Insurance Benefits Act
17-5 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
17-6 read as follows:
17-7 (2) "Annuitant" shall mean an officer or employee who
17-8 has at least 10 [three] years of service as an eligible employee
17-9 with a department whose employees are authorized to participate in
17-10 the Texas employees uniform group insurance benefits program or who
17-11 has at least five years of membership and five years of military
17-12 service credited in the Employees Retirement System of Texas and
17-13 who retires under:
17-14 (A) the jurisdiction of the Employees Retirement
17-15 System of Texas and either receives an annuity or is eligible to
17-16 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
17-17 Government Code, or Chapter 803, Government Code, that is based on
17-18 at least 10 years of service credit or eligibility under Section
17-19 814.002 or 814.102, Government Code;
17-20 (B) the jurisdiction of the Teacher Retirement
17-21 System of Texas and either receives an annuity or is eligible to
17-22 receive an annuity, pursuant to Subtitle C, Title 8, Government
17-23 Code, or Chapter 803, Government Code, that is based on at least 10
17-24 years of service credit, whose last state employment prior to
17-25 retirement, including employment by a public community/junior
17-26 college, was as an employee of a department whose employees are
18-1 authorized to participate in the Texas employees uniform group
18-2 insurance program;
18-3 (C) the optional retirement program established
18-4 by Chapter 830, Government Code, and either receives an annuity or
18-5 is eligible to receive an annuity under that program, if the person
18-6 either:
18-7 (i) would have been eligible to retire and
18-8 receive a service retirement annuity from the Teacher Retirement
18-9 System of Texas or the Employees Retirement System of Texas based
18-10 on at least 10 years of service credit had the person not elected
18-11 to participate in the optional retirement program; or
18-12 (ii) is disabled as determined by the
18-13 Employees Retirement System of Texas; or
18-14 (D) any other federal or state statutory
18-15 retirement program to which an institution of higher education has
18-16 made employer contributions, if the employee has met service
18-17 requirements, age requirements, and other applicable requirements
18-18 comparable to the requirements for retirement under the Teacher
18-19 Retirement System of Texas, based on at least 10 years of service
18-20 credit.
18-21 (8) "Dependent" shall mean the spouse of an employee
18-22 or retired employee and:
18-23 (A) an unmarried child under 25 years of age,
18-24 including an adopted child and a stepchild, foster child, or other
18-25 child who is in a regular parent-child relationship;
18-26 (B) any such child, regardless of age, who the
19-1 trustee determines lives with or whose care is provided by an
19-2 employee or annuitant on a regular basis if:
19-3 (i) such child is mentally retarded or
19-4 physically incapacitated to such an extent as to be dependent upon
19-5 the employee or retired employee for care or support, as the
19-6 trustee shall determine;
19-7 (ii) such child's coverage under this Act
19-8 has not lapsed; and
19-9 (iii) such child is at least 25 years old
19-10 and was enrolled as a participant in the health benefits coverage
19-11 under the Texas employees uniform group insurance program on the
19-12 date of the child's 25th birthday; and
19-13 (C) any such child who is unmarried, regardless
19-14 of age, for purposes of health benefits coverage under this Act, on
19-15 expiration of the child's continuation coverage under the
19-16 Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L.
19-17 99-272), and its subsequent amendments.
19-18 SECTION 24. Section 4, Texas Employees Uniform Group
19-19 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
19-20 Code), is amended to read as follows:
19-21 Sec. 4. ADMINISTRATION. The administration and
19-22 implementation of this Act are vested solely in the trustee. As it
19-23 shall deem necessary to insure the proper administration of this
19-24 Act and the insurance coverages, services, and benefits provided
19-25 for or authorized by this Act, the trustee, as an agency of the
19-26 State of Texas, shall have full power and authority to hire
20-1 employees. The duties of such employees and their compensation
20-2 shall be determined and assigned by the trustee. The trustee may,
20-3 on a competitive bid basis, contract with a qualified, experienced
20-4 firm of group insurance specialists or an administering firm who
20-5 shall act for the trustee in a capacity as independent
20-6 administrators and managers of the programs authorized under this
20-7 Act. The independent administrator so selected by the trustee
20-8 shall assist the trustee to insure the proper administration of the
20-9 Act and the coverages, services, and benefits provided for or
20-10 authorized by the Act and shall be paid by the trustee.
20-11 Compensation of all persons employed by the trustee and their
20-12 expenses shall be paid at such rates and in such amounts as the
20-13 trustee shall approve, providing that in no case shall they be
20-14 greater than those expenses paid for like or similar services.
20-15 Also, as an agency of the State of Texas, the trustee shall have
20-16 full power and authority to enter into interagency contracts with
20-17 any department of the State of Texas. The interagency contracts
20-18 shall provide for reimbursement to the state departments and shall
20-19 define the services to be performed by the departments for the
20-20 trustee. The trustee shall have full power and authority to
20-21 promulgate all rules, regulations, plans, procedures, and orders
20-22 reasonably necessary to implement and carry out the purposes and
20-23 provisions of this Act in all its particulars, including but not
20-24 limited to the following:
20-25 (a) preparation of specifications for coverages
20-26 provided by authority of this Act;
21-1 (b) prescribing the time at which and the conditions
21-2 under which an employee, annuitant, or dependent is eligible for
21-3 all coverages provided under this Act;
21-4 (c) determination of the methods and procedures of
21-5 claims administration;
21-6 (d) determination of the amount of employee payroll
21-7 deductions and reductions and the responsibility of establishing
21-8 procedures by which such deductions and reductions shall be made;
21-9 (e) establishment of procedures by which the trustee
21-10 shall decide contested cases arising from programs or coverages
21-11 provided under authority of this Act;
21-12 (f) continuing study of the operation of all coverages
21-13 provided under this Act, including such matters as gross and net
21-14 cost, administration costs, benefits, utilization of benefits, and
21-15 claims administration;
21-16 (g) administration of the Employees Life, Accident,
21-17 and Health Insurance and Benefits Fund, providing for the beginning
21-18 and ending dates of coverages of employees and annuitants and their
21-19 dependents under all benefit plans;
21-20 (h) adoption of all rules and regulations consistent
21-21 with the provisions of this Act and its purpose as it deems
21-22 necessary to carry out its statutory duties and responsibilities;
21-23 (i) development of basic plans of group coverages and
21-24 benefits applicable to all employees. The trustee also may provide
21-25 for optional group coverages and benefits in addition to the basic
21-26 plan;
22-1 (j) to provide either additional statewide optional
22-2 programs or individual agency optional programs as the trustee may
22-3 determine is appropriate;
22-4 (k) design, development, adoption, implementation, and
22-5 administration of a cafeteria plan;
22-6 (l) purchase of liability insurance for the coverage
22-7 of the trustees, employees, and agents of the board of trustees in
22-8 such amounts as the board of trustees, in its sole discretion,
22-9 considers reasonable and necessary;
22-10 (m) development of health benefits plans that permit
22-11 access to high quality, cost-effective health care;
22-12 (n) designing, implementing, and monitoring health
22-13 benefits plan features intended to discourage excessive
22-14 utilization, promote efficiency, and contain costs;
22-15 (o) development and continuing refinement of a health
22-16 care benefit strategy consistent with evolving benefit delivery
22-17 systems; [and]
22-18 (p) development of a funding strategy to efficiently
22-19 utilize employer contributions to achieve the purposes of this Act
22-20 and which is reasonable and assures employees and retired employee
22-21 annuitants a fair choice among health benefit plans as set out in
22-22 Section 14 of this Act; and
22-23 (q) appointment of an advisory committee for the
22-24 program provided by this Act under the terms provided by Section
22-25 815.509, Government Code.
22-26 SECTION 25. Subsection (c), Section 4B, Texas Employees
23-1 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
23-2 Texas Insurance Code), is amended to read as follows:
23-3 (c) A decision by the executive director under Subsection
23-4 (a) [or (a-1)] of this section may be appealed only to the trustee.
23-5 An appeal to the trustee is a contested case under the
23-6 administrative procedure law, Chapter 2001, Government Code.
23-7 Standing to pursue an administrative appeal under this section is
23-8 limited to employees, participants, annuitants, and covered
23-9 dependents participating in the Texas employees uniform group
23-10 insurance program or, after the death of an employee, [a]
23-11 participant, annuitant, or covered dependent, to the person's
23-12 [participant's] estate, personal representative, heirs at law, or
23-13 designated beneficiary.
23-14 SECTION 26. Subsection (j), Section 5, Texas Employees
23-15 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
23-16 Texas Insurance Code), is amended to read as follows:
23-17 (j) The trustee may not contract for or provide a plan of
23-18 coverage that:
23-19 (1) excludes or limits coverage or services for
23-20 acquired immune deficiency syndrome, as defined by the Centers for
23-21 Disease Control of the United States Public Health Service, or
23-22 human immunodeficiency virus infection; or
23-23 (2) provides coverage for serious mental illness that
23-24 is less extensive than the minimum coverage [provided] for serious
23-25 mental illness required by Section 3, Article 3.51-14, Insurance
23-26 Code [any physical illness].
24-1 SECTION 27. Section 10, Texas Employees Uniform Group
24-2 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
24-3 Code), is amended by amending Subsection (c) and adding Subsection
24-4 (d) to read as follows:
24-5 (c) The records of a participant in the Texas Employees
24-6 Uniform Group Insurance Program in the custody of the trustee, or
24-7 of an administrator or carrier acting on behalf of the trustee, are
24-8 confidential and not subject to disclosure and are exempt from the
24-9 public access provisions of Chapter 552, Government Code, except as
24-10 provided by this subsection. Records may be released to a
24-11 participant or to an authorized attorney, family member, or
24-12 representative acting on behalf of the participant. The trustee
24-13 may release the records to an administrator, carrier, or agent or
24-14 attorney acting on behalf of the trustee, to another governmental
24-15 entity, to a medical provider of the participant for the purpose of
24-16 carrying out the purposes of this Act, or to a party in response to
24-17 a subpoena issued under applicable law. The records of a
24-18 participant remain confidential after release to a person as
24-19 authorized by this subsection. The records of a participant may
24-20 become part of the public record of an administrative or judicial
24-21 proceeding related to a contested case under this Act, unless the
24-22 records are closed to public access by a protective order issued
24-23 under applicable law. If a participant's records have become part
24-24 of the public record of a proceeding and the records are not the
24-25 subject of a protective order, the participant is considered to
24-26 have waived the privacy of the participant's records.
25-1 (d) The trustee may require an individual to disclose the
25-2 individual's social security number as the trustee considers
25-3 necessary to properly administer this Act and any coverage,
25-4 service, or benefit authorized by this Act or as otherwise required
25-5 by state or federal law.
25-6 SECTION 28. The Texas Employees Uniform Group Insurance
25-7 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
25-8 amended by adding Section 10A to read as follows:
25-9 Sec. 10A. EXCLUSIVE REMEDY. The remedies provided under
25-10 this Act are the exclusive remedies available to an employee,
25-11 participant, annuitant, or dependent.
25-12 SECTION 29. Section 13A, Texas Employees Uniform Group
25-13 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
25-14 Code), is amended to read as follows:
25-15 Sec. 13A. ADMINISTRATIVE PROCESS AND SANCTIONS FOR INSURANCE
25-16 PROGRAM VIOLATIONS [EXPULSION FROM GROUP INSURANCE PROGRAM].
25-17 (a) The Employees Retirement System of Texas [After notice and
25-18 hearing as provided by this section, the trustee] may impose one or
25-19 more sanctions described by this section against [expel from
25-20 participation in the Texas employees uniform group insurance
25-21 program] any employee, participant, annuitant, or dependent who:
25-22 (1) submits a materially false [fraudulent] claim or
25-23 application for coverage under [or has defrauded or attempted to
25-24 defraud] any health maintenance organization or insurance or
25-25 benefits plan offered under the program;
25-26 (2) defrauds or attempts to defraud any health
26-1 maintenance organization or insurance or benefits plan offered
26-2 under the program;
26-3 (3) obtains or induces the extension of coverage under
26-4 any program provided under this Act by a materially negligent or
26-5 intentional misrepresentation, a failure to disclose material
26-6 information, or fraud; or
26-7 (4) induces the extension of coverage under any
26-8 program provided under this Act by supplying false information on
26-9 an application for coverage or in related documentation or in any
26-10 communication.
26-11 (b) On receipt of a complaint or on its own motion, if the
26-12 Employees Retirement System of Texas determines that an employee,
26-13 participant, annuitant, or dependent has engaged in conduct
26-14 described by Subsection (a) of this section, the retirement system
26-15 [trustee] may:
26-16 (1) expel from the program the [call and hold a
26-17 hearing to determine whether an] employee, participant, annuitant,
26-18 or dependent;
26-19 (2) impose limitations on the person's participation
26-20 in the program;
26-21 (3) rescind any coverage obtained or extended as a
26-22 result of the conduct under Subsection (a) of this section;
26-23 (4) deny a claim arising from coverage; or
26-24 (5) require the person to reimburse the Employees
26-25 Life, Accident, and Health Insurance and Benefits Trust Account for
26-26 any benefit obtained as a result of the conduct.
27-1 (c) An expulsion under Subsection (b) of this section may be
27-2 permanent or for a specified period. A rescission of coverage
27-3 under Subsection (b) of this section may be from the date of
27-4 inception of the coverage or from the date of the prohibited
27-5 conduct [has submitted a fraudulent claim or application for
27-6 coverage under or has defrauded or attempted to defraud any health
27-7 maintenance organization or insurance or benefits plan offered
27-8 under the Texas employees uniform group insurance program].
27-9 (d) A person may appeal a determination made under
27-10 Subsection (a) or (b) of this section only to the board of
27-11 trustees.
27-12 [(c)] A proceeding under this subsection [section] is a
27-13 contested case under the administrative procedure law, Chapter
27-14 2001, Government Code. Section 4B of this Act applies to an appeal
27-15 to the board of trustees under this subsection. The appellant has
27-16 the burden of proof and any sanction imposed is stayed during an
27-17 appeal under this subsection. If a person fails to make a timely
27-18 appeal, any sanction relates back to the date of the determination
27-19 of the Employees Retirement System of Texas.
27-20 [(d) At the conclusion of the hearing, if the trustee issues
27-21 a decision that finds that the accused employee, annuitant, or
27-22 dependent submitted a fraudulent claim or application for coverage
27-23 or has defrauded or attempted to defraud any health maintenance
27-24 organization or insurance or benefits plan offered under the Texas
27-25 employees uniform group insurance program, the trustee shall expel
27-26 the employee, annuitant, or dependent from participation in the
28-1 program.]
28-2 [(e)] An appeal of a decision of the trustee under this
28-3 subsection [section] is under the substantial evidence rule.
28-4 (e) [(f)] An employee, participant, annuitant, or dependent
28-5 expelled from the Texas employees uniform group insurance program
28-6 may not participate in any plan of coverage offered by the program
28-7 for the [a] period determined by the Employees Retirement System of
28-8 Texas [trustee of not more than five years from the date the
28-9 expulsion from the program takes effect].
28-10 SECTION 30. The Texas Employees Uniform Group Insurance
28-11 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
28-12 amended by adding Section 13A-1 to read as follows:
28-13 Sec. 13A-1. MISCONDUCT INFORMATION. (a) This section
28-14 applies to:
28-15 (1) the Employees Retirement System of Texas;
28-16 (2) a carrier or other insurance company or health
28-17 maintenance organization;
28-18 (3) an administering firm or other insurance support
28-19 organization that provides information or services to the Texas
28-20 employees uniform group insurance program or the Employees
28-21 Retirement System of Texas;
28-22 (4) an agent or third-party administrator authorized
28-23 under this Act or licensed under the insurance laws of this state;
28-24 (5) a regulatory authority or department; and
28-25 (6) a board member, executive director, employee,
28-26 auditor, or actuary of an entity described by this section.
29-1 (b) A person may collect from, furnish to, or exchange with
29-2 another person information, including medical records or other
29-3 confidential information, to the extent the person considers
29-4 necessary to detect or to impose a sanction for a criminal act, a
29-5 misrepresentation, or nondisclosure that is related to an attempt
29-6 to obtain coverage, payment, reimbursement, or a benefit under this
29-7 Act.
29-8 (c) A person who acts under Subsection (b) of this section
29-9 is immune from suit and criminal or civil liability unless the
29-10 person acts with malice or intent to defraud.
29-11 SECTION 31. Section 13B, Texas Employees Uniform Group
29-12 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
29-13 Code), is amended by adding Subsection (e) to read as follows:
29-14 (e) The trustee may adopt rules for the use of a debit card
29-15 or other similar technology for claims administration under this
29-16 section.
29-17 SECTION 32. Section 615.001, Government Code, is amended to
29-18 read as follows:
29-19 Sec. 615.001. DEFINITION. In this chapter, "minor child"
29-20 means a child who:
29-21 (1) [,] on the date of the death of an individual
29-22 listed under Section 615.003, is younger than 18 years of age; and
29-23 (2) if the child is not a biological or adopted child,
29-24 was claimed as a dependent on the federal income tax return of an
29-25 individual listed under Section 615.003 for the year preceding the
29-26 year of the individual's death.
30-1 SECTION 33. Subsection (b), Section 615.023, Government
30-2 Code, is amended to read as follows:
30-3 (b) A child's entitlement to assistance payable under this
30-4 section ends on the child's 18th [21st] birthday. At that time,
30-5 payments to any other surviving minor children shall be adjusted,
30-6 as necessary, to conform to the amounts payable under Subsection
30-7 (a).
30-8 SECTION 34. Subsection (a), Section 615.042, Government
30-9 Code, is amended to read as follows:
30-10 (a) The [board of trustees of the] Employees Retirement
30-11 System of Texas shall notify the comptroller of the retirement
30-12 system's [board's] determination that a claim under this chapter is
30-13 valid and justifies payment.
30-14 SECTION 35. Section 615.043, Government Code, is amended to
30-15 read as follows:
30-16 Sec. 615.043. DENIAL OF CLAIM. If the [board of trustees of
30-17 the] Employees Retirement System of Texas denies a claim, the
30-18 retirement system [board] shall send a notice of the denial to:
30-19 (1) the person making the claim; or
30-20 (2) the duly qualified guardian or legal
30-21 representative of a surviving minor child or dependent sibling, if
30-22 a claim is being made on behalf of the child or sibling.
30-23 SECTION 36. Section 615.044, Government Code, is amended to
30-24 read as follows:
30-25 Sec. 615.044. APPEALS. (a) An eligible survivor or the
30-26 eligible survivor's legal representative [A person] whose claim for
31-1 payment [to a surviving spouse, minor child, or dependent parent or
31-2 sibling] is denied [or the person's legal representative] may
31-3 appeal the denial to the board of trustees of the Employees
31-4 Retirement System of Texas [a district court of the residence of
31-5 the surviving spouse, minor child, or dependent parent or sibling
31-6 or to a district court in Travis County].
31-7 (b) An appeal under this section is considered to be an
31-8 appeal of a contested case under Chapter 2001 and shall be
31-9 conducted as provided by Section 815.511 [must be made not later
31-10 than the 20th day after the date the claimant or legal
31-11 representative receives notice of the denial].
31-12 (c) Judicial review of a decision under this section is
31-13 under the substantial evidence rule as provided by Chapter 2001
31-14 [Proceedings on the appeal are by trial de novo, as that term is
31-15 used in an appeal from a justice court to the county court].
31-16 SECTION 37. Subchapter C, Chapter 615, Government Code, is
31-17 amended by adding Section 615.045 to read as follows:
31-18 Sec. 615.045. RECORDS. (a) Records of individuals listed
31-19 by Section 615.003 and of survivors eligible for benefits under
31-20 this chapter that are in the custody of the Employees Retirement
31-21 System of Texas or a carrier, administering firm as defined by the
31-22 Texas Employees Uniform Group Insurance Benefits Act (Article
31-23 3.50-2, Vernon's Texas Insurance Code), or other governmental
31-24 agency acting with or on behalf of the retirement system are
31-25 confidential, not subject to public disclosure, and exempt from the
31-26 public information provisions of Chapter 552, except as otherwise
32-1 provided by this section.
32-2 (b) Records may be released to an eligible survivor or to an
32-3 authorized attorney, family member, or representative acting on
32-4 behalf of the eligible survivor. The Employees Retirement System
32-5 of Texas may release the records to an administering firm, carrier,
32-6 agent, or attorney acting on behalf of the retirement system, to
32-7 another governmental entity having a legitimate need for the
32-8 information to perform the purposes of the retirement system, or to
32-9 a party in response to a subpoena issued under applicable law.
32-10 (c) The records of individuals listed by Section 615.003 and
32-11 of eligible survivors remain confidential after release to a person
32-12 as authorized by this section. The records of individuals listed
32-13 by Section 615.003 and of eligible survivors may become part of the
32-14 public record of an administrative or judicial proceeding related
32-15 to an appeal filed under this chapter unless the records are closed
32-16 to public access by a protective order issued under applicable law.
32-17 SECTION 38. Subsection (a), Section 615.074, Government
32-18 Code, is amended to read as follows:
32-19 (a) An eligible surviving dependent who is a minor child is
32-20 entitled to continue health insurance coverage until the earlier of
32-21 [the dependent]:
32-22 (1) the date the dependent reaches the age of 18 [21]
32-23 years; or
32-24 (2) the date the dependent becomes eligible for group
32-25 health insurance through another employer.
32-26 SECTION 39. Section 814.1041, Government Code, as amended by
33-1 Chapters 1013 and 1541, Acts of the 76th Legislature, Regular
33-2 Session, 1999, is reenacted to read as follows:
33-3 Sec. 814.1041. TEMPORARY SERVICE RETIREMENT OPTION FOR
33-4 MEMBERS AFFECTED BY PRIVATIZATION OR OTHER REDUCTION IN WORKFORCE.
33-5 (a) This section applies only to members of the employee class who
33-6 are not otherwise eligible to retire and whose positions with the
33-7 Texas Workforce Commission, the Texas Department of Human Services,
33-8 the Texas Department of Mental Health and Mental Retardation, or
33-9 the Texas Department of Health are eliminated as a result of
33-10 contracts with private service providers or other reductions in
33-11 services provided by those agencies and who separate from state
33-12 service at that time.
33-13 (b) A member described by Subsection (a) is eligible to
33-14 retire and receive a service retirement annuity if the member's age
33-15 and service credit, each equally increased only as needed to meet
33-16 minimum age and service requirements, but not by more than three
33-17 years, would meet the minimum age and service requirements for
33-18 service retirement under Section 814.104(a) at the time the member
33-19 separates from state service as described by Subsection (a). The
33-20 annuity of a person who retires under this subsection is computed
33-21 on the person's accrued service credit increased by the minimum
33-22 amount of service credit necessary to meet the service credit
33-23 requirement for retirement, but not by more than three years.
33-24 (c) A member who applies to retire under this section and
33-25 the state agency from which the member separated from service shall
33-26 provide documentation required by the retirement system to
34-1 establish eligibility to retire under this section.
34-2 (d) This section applies only to positions eliminated by
34-3 privatization or other reductions in workforce before September 1,
34-4 2001.
34-5 SECTION 40. The following sections are repealed:
34-6 (1) Section 813.511, Government Code, as added by
34-7 Chapter 226, Acts of the 76th Legislature, Regular Session, 1999;
34-8 (2) Section 814.1042, Government Code, as added by
34-9 Chapter 264, Acts of the 76th Legislature, Regular Session, 1999;
34-10 (3) Section 814.1043, Government Code;
34-11 (4) Section 840.101, Government Code;
34-12 (5) Subsection (a-1), Section 4B, Texas Employees
34-13 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
34-14 Texas Insurance Code); and
34-15 (6) Section 18, Texas Employees Uniform Group
34-16 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
34-17 Code).
34-18 SECTION 41. (a) This section applies only to annuities
34-19 under Sections 814.104, 814.1041, 814.107, 814.206, 814.207,
34-20 814.301, 814.302, and 814.305, Government Code, that first became
34-21 payable before September 1, 2001.
34-22 (b) Payments of an annuity adjusted under this section shall
34-23 begin with the first payment that becomes due after December 31,
34-24 2001.
34-25 (c) The amount of an annuity payable on the first day the
34-26 annuity became payable shall be adjusted for plan changes to
35-1 reflect:
35-2 (1) current multiplier values and, if applicable, the
35-3 amount of service credited at the time of retirement or death, as
35-4 specified by Section 814.105, 814.107, 814.206, 814.207, 814.301,
35-5 or 814.302, Government Code;
35-6 (2) current applicable actuarial reduction factors for
35-7 benefits elected under Section 814.108, 814.1081, or 814.1082 or
35-8 Subsection (d), Section 814.206, Subsection (a), Section 814.301,
35-9 or Subsection (a), Section 814.302, Government Code; and
35-10 (3) current minimum standard annuity and maximum
35-11 service percentage values specified by Subsection (b), Section
35-12 814.105, Government Code.
35-13 (d) Annuities shall be adjusted for changes described by
35-14 Section 814.008, Subsection (d), Section 814.108, and Section
35-15 814.1081, Government Code, that occurred after the date the annuity
35-16 first became payable and before January 1, 2002.
35-17 (e) After any adjustment under Subsection (c) or (d) of this
35-18 section is made, the amount of the annuities shall be adjusted
35-19 under this section by multiplying the amount of each annuity by a
35-20 fraction, not less than one, the numerator of which is the Consumer
35-21 Price Index for all urban consumers as reported by the United
35-22 States Bureau of Labor Statistics (CPI-U) for December 2001, and
35-23 the denominator of which is the CPI-U for August of the fiscal year
35-24 in which the annuity first became payable. If the CPI-U for
35-25 December 2001 is not available for a computation under this
35-26 subsection, the numerator is the most recent month's CPI-U
36-1 available at the time of the computation, increased for each month
36-2 from that month until December 2001 by a factor equal to the
36-3 average of the monthly percentage increases in the CPI-U for the
36-4 12-month period ending with that month.
36-5 (f) The board of trustees of the Employees Retirement System
36-6 of Texas may adopt rules to implement this section.
36-7 (g) An adjustment under this section may not cause a
36-8 reduction in the amount of an annuity payable immediately before
36-9 December 31, 2001.
36-10 (h) Adjustments made under this section and rules adopted by
36-11 the board of trustees of the Employees Retirement System of Texas
36-12 under this section must comply with Section 401(a), Internal
36-13 Revenue Code of 1986, as amended, and rules adopted under that
36-14 section and Section 811.006, Government Code.
36-15 SECTION 42. Notwithstanding Subsection (a), Section 813.509,
36-16 Government Code, as amended by this Act, a member of the Employees
36-17 Retirement System of Texas who is otherwise entitled to use sick
36-18 leave for service credit may use service credit in that system that
36-19 was canceled and reestablished before September 1, 2001, to qualify
36-20 for the 10 years of membership service required under Subsection
36-21 (a), Section 813.509, Government Code, as amended by this Act.
36-22 SECTION 43. (a) The change in law made by this Act to
36-23 Subdivision (2), Subsection (a), Section 3, Texas Employees Uniform
36-24 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
36-25 Insurance Code), does not apply to a person who, on August 31,
36-26 2001:
37-1 (1) was an eligible employee with an employer whose
37-2 employees were eligible to participate in the Texas employees
37-3 uniform group insurance program;
37-4 (2) was eligible to participate as a retiree in the
37-5 Texas employees uniform group insurance program; or
37-6 (3) had satisfied any service requirements under the
37-7 Texas Employees Uniform Group Insurance Benefits Act for
37-8 participation as a retiree in the Texas employees uniform group
37-9 insurance program.
37-10 (b) The participation in the Texas employees uniform group
37-11 insurance program of a person described in Subsection (a) of this
37-12 section is governed by the law in effect immediately before the
37-13 effective date of this Act, and the former law is continued in
37-14 effect for that purpose.
37-15 SECTION 44. The change in law made by this Act to Paragraph
37-16 (B), Subdivision (8), Subsection (a), Section 3, Texas Employees
37-17 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
37-18 Texas Insurance Code), applies only to a dependent who was not
37-19 covered by the basic coverage of a health benefits plan under the
37-20 Texas Employees Uniform Group Insurance Benefits Act (Article
37-21 3.50-2, Vernon's Texas Insurance Code), on August 31, 2001.
37-22 SECTION 45. (a) Except as provided by this section, this
37-23 Act takes effect September 1, 2001.
37-24 (b) Section 813.513, Government Code, as added by this Act,
37-25 takes effect January 1, 2002.