H.B. No. 725




AN ACT
relating to the participation of community supervision and corrections department employees, retired employees, and dependents of employees and retired employees in the group benefits program for state employees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PARTICIPATION BY COMMUNITY SUPERVISION AND CORRECTIONS DEPARTMENTS IN GROUP BENEFITS PROGRAM FOR STATE EMPLOYEES
SECTION 1.01. Section 1551.002, Insurance Code, as effective June 1, 2003, is amended to read as follows: Sec. 1551.002. PURPOSES. The purposes of this chapter are to: (1) provide uniformity in life, accident, and health benefit coverages for all state officers and employees and their dependents; (2) enable the state to attract and retain competent and able employees by providing employees and their dependents with life, accident, and health benefit coverages at least equal to those commonly provided in private industry; (3) foster, promote, and encourage employment by and service to the state as a career profession for individuals of high standards of competence and ability; (4) recognize and protect the state's investment in each permanent employee by promoting and preserving economic security and good health among employees and their dependents; (5) foster and develop high standards of employer-employee relationships between the state and its employees; [and] (6) recognize the long and faithful service and dedication of state officers and employees and encourage them to remain in state service until eligible for retirement by providing health benefits for them and their dependents; and (7) recognize the service to the state by employees and retired employees of community supervision and corrections departments by extending to them and their dependents the same life, accident, and health benefit coverages as those provided under this chapter to state employees, retired state employees, and their dependents. SECTION 1.02. Section 1551.111(c), Insurance Code, as effective June 1, 2003, is amended to read as follows: (c) Except as provided by Section 1551.114, participation [Participation] in the group benefits program does not extend to: (1) the governing body of either system; (2) a municipality or subdivision participating in either system; or (3) a trustee, officer, or employee, or a dependent of a trustee, officer, or employee, of a participating municipality or subdivision. SECTION 1.03. Subchapter C, Chapter 1551, Insurance Code, as effective June 1, 2003, is amended by adding Section 1551.114 to read as follows: Sec. 1551.114. PARTICIPATION BY COMMUNITY SUPERVISION AND CORRECTIONS DEPARTMENTS. (a) In this section, "employee of a community supervision and corrections department" means an employee of a department established under Chapter 76, Government Code. (b) An employee or retired employee of a community supervision and corrections department shall be treated as an employee or annuitant, as applicable, for purposes of this chapter only as provided by this section. (c) A community supervision and corrections department of this state participates in the group benefits program administered by the board of trustees under this chapter. Participation under this section is limited to: (1) active employees of a community supervision and corrections department; (2) retired employees of a community supervision and corrections department who retire on or after September 1, 2004, and who: (A) have been employed by one or more community supervision and corrections departments for a total of at least 10 years of creditable service; and (B) meet all the requirements for retirement benefits prescribed by the Texas County and District Retirement System; and (3) eligible dependents of the active employees and retired employees described by Subdivisions (1) and (2). (d) Each full-time active employee of a community supervision and corrections department is automatically covered by the basic coverage for employees unless the employee specifically waives coverage or unless the employee is expelled from the program. Each part-time active employee of a community supervision and corrections department is eligible to participate in the group benefits program on application in the manner provided by the board of trustees, unless the employee has been expelled from the program. Each community supervision and corrections department shall notify each of its part-time employees of the employee's eligibility for participation. (e) An active employee described by Subsection (d) is not eligible to receive a state contribution under Subchapter G for premiums. The community justice assistance division of the Texas Department of Criminal Justice is responsible for payment of the contributions for each of a department's participating active employees and the employees' dependents that the state would make under Subchapter G if the employees were state employees. Each covered active employee shall pay that portion of the cost of group coverages selected by the employee that exceeds the amount of division contributions. (f) A retired employee is eligible to participate in the group benefits program on application to the board of trustees. On application, a retired employee is automatically covered by the basic coverage for annuitants unless the retired employee specifically waives coverage or unless the retired employee is expelled from the program. A retired employee is not eligible to receive a state contribution under Subchapter G for premiums. The community justice assistance division of the Texas Department of Criminal Justice is responsible for payment of the contributions for each of a department's retired employees and the retired employees' participating dependents that the state would make under Subchapter G if the retired employees were retired state employees. Each participating retired employee shall pay that portion of the cost of group coverage selected by the retired employee that exceeds the amount of division contributions. The retired employee shall pay contributions required from the retired employee in the manner prescribed by the board of trustees. Each community supervision and corrections department shall notify each of its retired employees of the eligibility for participation and the costs associated with participation. (g) All contributions received under this section from the community justice assistance division of the Texas Department of Criminal Justice, active employees of community supervision and corrections departments, and retired employees of community supervision and corrections departments for basic, optional, and voluntary coverages under the group benefits program shall be paid into the employees life, accident, and health insurance and benefits fund and shall be used by the board of trustees to provide those coverages as provided by this chapter. SECTION 1.04. Subchapter G, Chapter 1551, Insurance Code, as effective June 1, 2003, is amended by adding Sections 1551.321 and 1551.322 to read as follows: Sec. 1551.321. REQUIRED REPORTS OF COMMUNITY SUPERVISION AND CORRECTIONS DEPARTMENTS. (a) Not later than June 1 of each year, a community supervision and corrections department participating in the group benefits program under Section 1551.114 shall submit to the board of trustees an estimated number of active employees, retired employees, and dependents of active or retired employees to be enrolled in the group benefits program for the following fiscal year. (b) Each month, a community supervision and corrections department shall reconcile the department records of requested participation in the group benefits plan and board of trustees records of coverage. Sec. 1551.322. REQUIRED CONTRIBUTIONS BY TEXAS DEPARTMENT OF CRIMINAL JUSTICE. (a) Not later than August 1 of each year, the board of trustees shall notify the community justice assistance division of the Texas Department of Criminal Justice of: (1) the estimated number of community supervision and corrections department active employees, retired employees, and dependents of active or retired employees to be covered under the group benefits program for the following fiscal year; and (2) administrative costs incurred by the board of trustees that are specifically attributable to processing this population. (b) The community justice assistance division of the Texas Department of Criminal Justice, on receipt of the notification described by Subsection (a), shall: (1) make timely payments of amounts due the board of trustees, including the administrative costs incurred by the board of trustees; and (2) reconcile, each month, the board of trustees records and the division records of coverage and payments.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Section 76.006, Government Code, is amended by amending Subsections (a) and (c) and adding Subsection (i) to read as follows: (a) Except as provided by Subsection (c), department employees are not state employees. The department shall contract for all employee benefits with one county served by the department and designated for that purpose by the district judge or judges. To the extent that employee benefits are provided by a county under this subsection, [and] the employees are governed by personnel policies and benefits equal to personnel policies for and benefits of other employees of that county. This subsection does not apply to employee benefits for group insurance and related coverages provided to employees of a department through the group benefits program for state employees under Chapter 1551, Insurance Code. (c) Department employees are state employees for the purposes of Chapter 104, Civil Practice and Remedies Code, and Chapter 501, Labor Code. Notwithstanding Subsection (a), a department employee is eligible to participate in the group benefits program established under Chapter 1551, Insurance Code, as provided by Section 1551.114, Insurance Code. (i) The department shall submit all information required by Section 1551.321, Insurance Code, in the manner and form prescribed by the Employees Retirement System of Texas. SECTION 2.02. Section 509.011, Government Code, is amended by adding Subsection (a-1) to read as follows: (a-1) Notwithstanding Subsection (a), the division shall prepare and submit to the comptroller vouchers for payment to the Employees Retirement System of Texas for contributions for group coverage in which a department participates under Section 1551.114, Insurance Code. Payment of contributions under this subsection shall be made from the money that the division would otherwise allocate to a department under Subsections (a) and (b).
ARTICLE 3. TRANSITION
SECTION 3.01. (a) The Employees Retirement System of Texas shall develop a plan for the extension of benefits under the group benefits program to persons eligible for those benefits under Section 1551.114, Insurance Code, as added by this Act. The system may employ persons as necessary to implement this subsection. (b) Coverage under Section 1551.114, Insurance Code, as added by this Act, shall become effective September 1, 2004, except that a community supervision and corrections department may delay participation in the group benefits program until the date life, accident, and health benefit coverage that is in effect on September 1, 2004, expires or terminates. SECTION 3.02. The commissioners court of the county designated for a community supervision and corrections department under Section 76.006(a), Government Code, as that section existed before amendment by this Act, shall, not later than September 1, 2004, transfer from the employee benefits program described by that section all records relating to group insurance and related coverage of department employees and retired employees, if applicable, under that program to the Employees Retirement System of Texas. SECTION 3.03. (a) This Act takes effect September 1, 2003, except that Article 2 of this Act takes effect September 1, 2004. (b) The Employees Retirement System of Texas shall adopt rules as necessary to implement Section 3.01 of this Act not later than June 1, 2004. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 725 was passed by the House on April 24, 2003, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 725 on May 26, 2003, by a non-record vote. ______________________________ Chief Clerk of the House I certify that H.B. No. 725 was passed by the Senate, with amendments, on May 24, 2003, by a viva-voce vote. ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor