78R6047 DLF-D

By:  Rose                                                         H.B. No. 3224


A BILL TO BE ENTITLED
AN ACT
relating to participation by certain county officers, employees, and retired officers and employees and their dependents in the state employees group benefits program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. 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 CERTAIN COUNTIES. (a) This section applies only to a county that has a population of less than 250,000. (b) Subject to Subsection (k), a county subject to this section may participate in the group benefits program. To participate under this section, the county: (1) must offer coverage under the program to all county officers, employees, and retired officers and employees; and (2) may not offer a health benefit plan for its officers, employees, and retired officers and employees as an alternative to the plan offered by the program. (c) Participation under this section is limited to: (1) active officers and employees of a county; (2) retired officers and employees of a county who: (A) have been employed by one or more counties 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 officers and employees and retired officers and employees described by Subdivisions (1) and (2). (d) Except as provided by this section, a county officer, employee, or retired officer or employee and the eligible dependents of the officer, employee, or retired officer or employee: (1) are entitled to participate in the group coverage plans established by the board of trustees under the group benefits program in the same manner as other employees, annuitants, and dependents under the program; and (2) may be expelled from the program under Subchapter H. (e) Each officer and each full-time active employee of a participating county is automatically covered by the basic coverage for employees unless the officer or employee specifically waives coverage or unless the officer or employee is expelled from the program. Each part-time active employee of a participating county 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 participating county shall notify each of its part-time employees of the employee's eligibility for participation. (f) An active officer or employee described by Subsection (e) is not eligible to receive a state contribution under Subchapter G for premiums. Each participating county is responsible for payment of the contributions for each of the county's participating active officers and employees and the officers' and employees' dependents that the state would make under Subchapter G if the officers and employees were state employees. Each covered officer or employee shall pay that portion of the cost of group coverages selected by the officer or employee that exceeds the amount of county contributions. (g) A retired officer or employee is eligible to participate in the group benefits program on application to the board of trustees. On application, a retired officer or employee is automatically covered by the basic coverage for annuitants unless the retired officer or employee specifically waives coverage or unless the retired officer or employee is expelled from the program. A retired officer or employee is not eligible to receive a state contribution under Subchapter G for premiums. Each participating county is responsible for payment of the contributions for each of the county's retired officers and employees and the retired officers' and employees' participating dependents that the state would make under Subchapter G if the retired officers and employees were retired state employees. Each participating retired officer or employee shall pay that portion of the cost of group coverage selected by the retired officer or employee that exceeds the amount of county contributions. The retired officer or employee shall pay contributions required from the retired officer or employee in the manner prescribed by the board of trustees. Each participating county shall notify each of its retired officers and employees of the eligibility for participation and the costs associated with participation. (h) All contributions received under this section from participating counties, active officers and employees of participating counties, and retired officers and employees of participating counties 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. (i) In determining the contributions to be paid for coverages under this section, the board of trustees shall include an amount necessary to reimburse the Employees Retirement System of Texas for the cost of administering this section in accordance with Section 1551.401(d). (j) A county that elects to participate in the group benefits program must notify the board of trustees in the time and manner required by the board of trustees. (k) The board of trustees may decline to accept a county for participation in the group benefits program if the board determines that participation by the county will have an adverse actuarial impact on the group benefits program. (l) A county that has elected to participate in the group benefits program may not withdraw from participation. (m) A county is an employer for purposes of this chapter only to the extent authorized by this section. SECTION 2. Section 1551.101, Insurance Code, as effective June 1, 2003, is amended by adding Subsection (f) to read as follows: (f) A county officer or employee is an employee for purposes of this chapter only to the extent authorized by Section 1551.114. SECTION 3. Section 1551.102, Insurance Code, as effective June 1, 2003, is amended by adding Subsection (h) to read as follows: (h) A retired county officer or employee is an annuitant for purposes of this chapter only to the extent authorized by Section 1551.114. SECTION 4. Section 1551.111(c), Insurance Code, as effective June 1, 2003, is amended to read as follows: (c) Participation under this section 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 5. The board of trustees of the Employees Retirement System of Texas is not required to make the group benefits program available to specified counties, as required by Section 1551.114, Insurance Code, as added by this Act, before September 1, 2004. SECTION 6. This Act takes effect September 1, 2003.