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78R6290 DLF-D
By: Delisi H.B. No. 3256
A BILL TO BE ENTITLED
AN ACT
relating to group coverage plans for state employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GROUP COVERAGE PLANS 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;
(2) [(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;
(3) [(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;
(4) [(5)] foster and develop high standards of
employer-employee relationships between the state and its
employees; and
(5) [(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.
SECTION 1.02. Section 1551.003, Insurance Code, as
effective June 1, 2003, is amended by adding Subdivision (15) to
read as follows:
(15) "Approved carrier" means a carrier approved by
the board of trustees to offer group health benefit plan coverage
under Section 1551.007.
SECTION 1.03. Section 1551.005(b), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(b) Health benefit plans made available through the group
benefits program [A health benefit plan] shall be provided on a
group basis through:
(1) a policy or contract;
(2) a medical, dental, or hospital service agreement;
(3) a membership or subscription contract;
(4) a salary continuation plan;
(5) a health maintenance organization agreement;
(6) a preferred provider arrangement; or
(7) any other similar group arrangement or a
combination of policies, plans, contracts, agreements, or
arrangements described by this subsection.
SECTION 1.04. Section 1551.007, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.007. DEFINITION OF CARRIER; APPROVAL OF CARRIER.
(a) In this chapter, "carrier" means:
(1) an insurance company that is authorized by the
department under this code to provide any of the types of insurance
coverages, benefits, or services provided for in this chapter and
that:
(A) has a surplus of $1 million;
(B) has a successful operating history; and
(C) has had successful experience, as determined
by the department, in providing and servicing any of the types of
group coverage provided for in this chapter;
(2) a corporation operating under Chapter 842 or 843
that provides any of the types of coverage, benefits, or services
provided for in this chapter and that:
(A) has a successful operating history; and
(B) has had successful experience, as determined
by the department, in providing and servicing any of the types of
group coverage provided for in this chapter; or
(3) any combination of carriers described by
Subdivisions (1) and (2) on terms the board of trustees prescribes.
(b) The board of trustees shall approve carriers to offer
group health benefit plan coverage under this chapter. The board
may impose requirements for approval of a carrier, including
financial requirements, in addition to the requirements imposed by
Subsection (a).
SECTION 1.05. Section 1551.051, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.051. ADMINISTRATION AND IMPLEMENTATION. Subject
to Sections 1551.055(b) and (c), the [The] administration and
implementation of this chapter are vested solely in the board of
trustees.
SECTION 1.06. (a) Section 1551.055, Insurance Code, is
amended to conform to Section 28, Chapter 1231, Acts of the 77th
Legislature, Regular Session, 2001, and amended to read as follows:
Sec. 1551.055. GENERAL POWERS OF BOARD OF TRUSTEES
REGARDING COVERAGE PLANS. (a) The board of trustees may:
(1) prepare specifications for a coverage provided
under this chapter;
(2) prescribe the time and conditions under which an
employee, annuitant, or dependent [individual] is eligible for a
coverage provided under this chapter;
(3) determine the methods and procedures of claims
administration;
(4) determine the amount of payroll deductions and
reductions applicable to employees and annuitants and establish
procedures to implement those deductions and reductions;
(5) establish procedures for the board of trustees to
decide contested cases arising from a coverage provided under this
chapter;
(6) study, on an ongoing basis, the operation of all
coverages provided under this chapter, including gross and net
costs, administration costs, benefits, utilization of benefits,
and claims administration;
(7) administer the employees life, accident, and
health insurance and benefits fund;
(8) provide the beginning and ending dates of
coverages of participants under all benefit plans;
(9) make health benefit plan coverage available
[develop basic group coverage plans applicable] to all individuals
eligible to participate in the group benefits program under
Sections 1551.101 and 1551.102 through plans offered by approved
carriers;
(10) provide for optional group coverage plans [in
addition to the basic group coverage plans];
(11) provide, as the board of trustees determines is
appropriate, either additional statewide optional coverage plans
or individual agency coverage plans or, in the case of health
benefit plan coverage, approve carriers to provide these plans;
(12) [develop health benefit plans that permit access
to high-quality, cost-effective health care;
[(13) design, implement, and monitor health benefit
plan features intended to discourage excessive utilization,
promote efficiency, and contain costs;
[(14) develop and refine, on an ongoing basis, a
health benefit strategy consistent with evolving benefit delivery
systems; and
[(15)] develop a funding structure [strategy] that
efficiently uses state and other employer contributions to achieve
the purposes of this chapter and that is reasonable and ensures
participants a fair choice among health benefit plans as provided
by Section 1551.302; and
(13) appoint an advisory committee for the group
benefits program under the terms provided by Section 815.509,
Government Code.
(b) The board of trustees may not directly administer group
health benefit plan coverages made available under the group
benefits program and may not provide those coverages on a
self-funded basis.
(c) The board of trustees may not establish, approve, or
limit premium rates for group health benefit plan coverages made
available under the group benefits program.
(b) Section 28, Chapter 1231, Acts of the 77th Legislature,
Regular Session, 2001, is repealed.
SECTION 1.07. Sections 1551.056(a) and (b), Insurance Code,
as effective June 1, 2003, are amended to read as follows:
(a) The board of trustees may, on a competitive bid basis,
contract with an entity to act for the board as an independent
administrator or manager of the coverages, services, and benefits,
other than health benefit plan coverages, authorized under this
chapter.
(b) The entity must be a qualified, experienced firm of
group insurance specialists or an administering firm and shall
assist the board of trustees in ensuring the proper administration
of this chapter and the coverages, services, and benefits, other
than health benefit plan coverages, provided for or authorized by
this chapter.
SECTION 1.08. Section 1551.059, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.059. CERTIFICATE OF COVERAGE. (a) An approved
carrier shall issue [The board of trustees shall provide for
issuance] to each employee or annuitant purchasing group health
benefit plan coverage from the carrier under [participating in] the
group benefits program a certificate of coverage that states:
(1) the benefits to which the participant is entitled;
(2) to whom the benefits are payable;
(3) to whom a claim must be submitted; and
(4) the provisions of the plan document, in summary
form, that principally affect the participant.
(b) The board of trustees shall issue a certificate of
coverage to individuals participating in coverage other than group
health benefit plan coverage.
SECTION 1.09. Section 1551.062(b), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(b) Any [A contract entered into under this chapter must
require a] carrier providing coverages to participants in the group
benefits program shall [to]:
(1) furnish any reasonable report the board of
trustees determines is necessary to enable the board to perform its
functions under this chapter; and
(2) permit the board and a representative of the state
auditor to examine records of the carrier as necessary to
accomplish the purposes of this chapter.
SECTION 1.10. Sections 1551.063(a) and (c), Insurance Code,
as effective June 1, 2003, are amended to read as follows:
(a) The records of a participant in the group benefits
program in the custody of the board of trustees, or of an
administrator or carrier acting under the group benefits program
[on behalf of the board], are confidential and not subject to
disclosure and are exempt from the public access provisions of
Chapter 552, Government Code, except as provided by this section.
(c) The board of trustees may release the records to:
(1) an administrator, carrier, agent, or attorney
acting under the group benefits program [on behalf of the board];
(2) another governmental entity;
(3) a medical provider of the participant to
accomplish the purposes of this chapter; or
(4) a party in response to a subpoena issued under
applicable law.
SECTION 1.11. Sections 1551.064(a) and (b), Insurance Code,
as effective June 1, 2003, are amended to read as follows:
(a) This section applies only to a group policy or contract
described by section 3B(a), Article 3.51-6. A policy or contract
providing coverage to a participant in the group benefits program
[executed] under this chapter must provide that:
(1) premium payments must be:
(A) paid directly to the Employees Retirement
System of Texas or to the carrier issuing the policy or contract, as
provided by the board of trustees; and
(B) postmarked or received not later than the
10th day of the month for which the premium is due;
(2) the premium for group continuation coverage under
Section 3B, Article 3.51-6, may not exceed the level established
for other surviving dependents of deceased employees and
annuitants;
(3) at the time the group policy or contract is
delivered, issued for delivery, renewed, amended, or extended, the
Employees Retirement System of Texas shall give notice of the
continuation option to each state agency covered by the group
benefits program; and
(4) each state agency shall give written notice of the
continuation option to each employee and dependent of an employee
who is covered by the group benefits program.
(b) A group policy or contract providing coverage to a
participant in the group benefits program [executed] under this
chapter must provide that, not later than the 15th day after the
date of any severance of the family relationship that might
activate the continuation option under Section 3B, Article 3.51-6,
the group member shall give written notice of the severance to the
employing state agency.
SECTION 1.12. Section 1551.105, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.105. DATE [AUTOMATIC] COVERAGE BEGINS. Group
health benefit plan coverage [Automatic coverage] under this
chapter [subchapter] begins on the date an employee or annuitant
selects the coverage in accordance with procedures established by
the board of trustees [becomes eligible for coverage]. Coverage
under other group coverages provided under the group benefits
program begins as provided by the board of trustees.
SECTION 1.13. Section 1551.159(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) The board of trustees may approve a carrier to offer
group health benefit plan coverage under this section [Subject to
any applicable limit in the General Appropriations Act, the board
of trustees shall use money appropriated for employer contributions
to fund 80 percent of the cost of basic coverage] for a child who:
(1) is a dependent of an employee;
(2) would be eligible, if the child were not the
dependent of the employee, for benefits under the program
established by the state to implement Title XXI, Social Security
Act (42 U.S.C. Section 1397aa et seq.), as amended; and
(3) is not eligible for the state Medicaid program.
SECTION 1.14. Section 1551.201, Insurance Code, as
effective June 1, 2003, is amended by adding Subsection (d) to read
as follows:
(d) Group health benefit plan coverage shall be made
available under the group benefits program in accordance with
Section 1551.202.
SECTION 1.15. Section 1551.202, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.202. APPROVED HEALTH BENEFIT PLANS. (a) The board
of trustees shall approve carriers providing a range of health
benefit plans offering different levels of coverage and different
levels of deductibles, copayments, or coinsurance, as applicable,
and must include carriers offering health benefit plans in which a
participant may be enrolled on selection of the plan without proof
of insurability.
(b) The Employees Retirement System of Texas is the group
policy or contract holder for a health benefit plan offered by an
approved carrier under this chapter. [AUTHORITY TO DEFINE BASIC
COVERAGES. (a) The board of trustees may define the basic coverage
applicable to each individual for whom coverage is automatic unless
participation is specifically waived.
[(b) The board of trustees may define different basic
coverage plans for individuals eligible to participate in the
uniform program under Section 1551.101 and for individuals eligible
to participate in the group benefits program under Section
1551.102.
[(c) Basic coverage must include basic health coverage. The
coverage may be offered through any health benefit plan.]
SECTION 1.16. (a) Section 1551.205, Insurance Code, as
effective June 1, 2003, is amended to conform to Section 30, Chapter
1231, Acts of the 77th Legislature, Regular Session, 2001, and
amended to read as follows:
Sec. 1551.205. LIMITATIONS. A health benefit plan provided
by an approved carrier under this chapter may not [The board of
trustees may not contract for or provide a coverage plan that]:
(1) exclude or limit [excludes or limits] coverage or
services for acquired immune deficiency syndrome, as defined by the
Centers for Disease Control and Prevention of the United States
Public Health Service, or human immunodeficiency virus infection;
or
(2) provide [provides] coverage for serious mental
illness that is less extensive than the minimum coverage [provided]
for serious mental [any physical] illness required by Section 3,
Article 3.51–14.
(b) Section 30, Chapter 1231, Acts of the 77th Legislature,
Regular Session, 2001, is repealed.
SECTION 1.17. Section 1551.206(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) The board of trustees may develop, implement, and
administer a cafeteria plan if the board determines that
establishment of the plan:
(1) is feasible and consistent with the funding
structure implemented by the board under Section 1551.302;
(2) would be beneficial to the state and to employees
who would be eligible to participate in the plan; and
(3) would not adversely affect the coverage plans
provided under the group benefits program.
SECTION 1.18. Section 1551.208(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) The board of trustees, in the board's sole discretion,
shall determine those coverage plans, other than health benefit
plans, that the board does not intend to purchase but intends to
provide directly from the employees life, accident, and health
insurance and benefits fund. The board of trustees may not
self–fund health benefit plan coverage under this chapter.
SECTION 1.19. Section 1551.213, Insurance Code, as
effective June 1, 2003, is amended by adding Subsection (c) to read
as follows:
(c) This section does not apply to group health benefit plan
coverage provided by an approved carrier in accordance with this
chapter.
SECTION 1.20. Section 1551.215(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) A carrier providing a coverage purchased under this
chapter, including an approved carrier providing group health
benefit plan coverage, shall provide an accounting to the board of
trustees not later than the 90th day after the end of each plan
year.
SECTION 1.21. Section 1551.216(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) A carrier issuing a group coverage plan under this
chapter, including an approved carrier providing group health
benefit plan coverage, shall hold as a special contingency reserve
an amount that equals the amount by which the amount described by
Section 1551.215(c)(1) exceeds the sum of the amounts described by
Sections 1551.215(c)(2) and (3).
SECTION 1.22. Section 1551.301, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.301. FUNDING OF [BASIC] COVERAGE. (a) Each
individual eligible to participate in the group benefits program
under Section 1551.101 or 1551.102 shall direct the expenditure of:
(1) the amount of the state contribution made under
this subchapter that is allocated to the participant in accordance
with the General Appropriations Act and this subchapter;
(2) the amount of other employer contributions made
under this subchapter that is allocated to the participant in
accordance with the General Appropriations Act and this subchapter;
and
(3) the amount of the participant's contributions to
the group benefits program under this subchapter.
(b) Money described by Subsection (a) may be used by an
individual eligible to participate in the group benefits program
under Section 1551.101 or 1551.102 only in accordance with this
subchapter for health benefit plan coverage offered by approved
carriers and for other group coverages provided under the group
benefits program for the individual and the individual's
dependents. [The board of trustees shall use the amount
appropriated for employer contributions in the manner provided by
this subchapter to fund the basic coverage.]
SECTION 1.23. Section 1551.302, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.302. FUNDING STRUCTURE; RULES. (a) The board of
trustees, in consultation with the comptroller, shall by rule
develop a funding structure that:
(1) implements Section 1551.301 in accordance with
this subchapter;
(2) permits an individual eligible to participate in
the group benefits program under Section 1551.101 or 1551.102 to
carry over money allocated to the individual throughout the period
the individual is eligible to participate; and
(3) ensures, to the extent feasible and consistent
with this subchapter, favorable federal tax treatment to the
individual.
(b) The funding structure, in the sole discretion of the
board of trustees:
(1) may include a cafeteria plan; and
(2) may use a system of medical savings accounts or
health reimbursement arrangements established in a manner
compatible with federal tax law or may use another account
structure selected by the board of trustees.
(c) To implement this section, the comptroller shall, if
requested by the board of trustees:
(1) establish separate accounts attributable to
individual participants within the employees life, accident, and
health insurance and benefits fund; or
(2) transfer funds from the employees life, accident,
and health insurance and benefits fund to trust accounts outside
the fund in the custody of the comptroller established for the
benefit of individual participants.
(d) Notwithstanding any other provision of this chapter, on
termination of an individual's eligibility to participate in the
group benefits program, money allocated to the individual under the
funding structure reverts to the employees life, accident, and
health insurance and benefits fund. [ALLOCATION OF EMPLOYER
CONTRIBUTIONS. (a) The board of trustees may equitably allocate to
each health benefit plan the employer contributions that would be
required to fund basic health coverage for participants in the
plans to the extent funds are available.
[(b) In allocating the employer contributions among plans,
the board of trustees shall consider the relevant risk
characteristics of each plan's enrollment, including:
[(1) demographic variations in the use and cost of
health care; and
[(2) prevailing cost patterns in the area in which the
plan operates.
[(c) The allocation must be reasonable and set in a manner
that ensures participants a fair choice among health benefit plans
providing a basic plan.
[(d) The contribution set for each participant must be
within the total amount appropriated in the General Appropriations
Act.]
SECTION 1.24. Section 1551.303, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.303. FUNDING OF OPTIONAL COVERAGES. An
individual eligible to participate in the group benefits program
under Section 1551.101 or 1551.102 may direct that any amount
allocated to the participant under Section 1551.301 be used [The
board of trustees may allocate any employer contributions remaining
after the basic coverage has been funded] to fund optional
coverages selected by the individual for the individual or the
individual's dependents [in any manner the board determines is
appropriate].
SECTION 1.25. Section 1551.304, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.304. FUNDING OF VOLUNTARY COVERAGES. Amounts
allocated to an individual under Section 1551.301 that are
attributable to state or other employer contributions may not be
used [The board of trustees may not allocate any employer
contributions] to fund voluntary coverages. Voluntary coverages
may be funded only by participant contributions.
SECTION 1.26. Section 1551.305, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.305. COST OF [BASIC] COVERAGE EXCEEDING STATE AND
OTHER EMPLOYER CONTRIBUTIONS. If the cost of the [basic] coverage
selected by [for] an individual eligible to participate in the
group benefits program under Section 1551.101 or 1551.102 exceeds
the amount available to pay the cost from state and other employer
contributions allocable to the individual [of employer
contributions allocated to fund the basic coverage], the state
shall deduct from or reduce the monthly compensation of the
participant or deduct from the retirement benefits of the
participant, as applicable, an amount sufficient to pay the cost of
the [basic] coverage selected.
SECTION 1.27. Section 1551.306, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.306. PAYMENT OF EXCESS COST [OVER BASIC COVERAGE
CONTRIBUTION]. (a) [The board of trustees shall apply the amount
of any employer contribution for optional coverages to the excess
of the cost of the basic and optional coverages for which an
individual eligible to participate in the group benefits program
under Section 1551.101 or 1551.102 applies over the basic coverage
contribution.
[(b)] Except as provided by Section 1551.309, if an
individual eligible to participate in the group benefits program
under Section 1551.101 or 1551.102 [a participant] applies for
group [basic and optional] coverages for which the cost exceeds the
state and other employer contributions for those coverages under
this chapter, the participant shall authorize in a form and manner
satisfactory to the board of trustees a deduction from the
participant's monthly compensation or monthly annuity equal to the
difference between:
(1) the cost of the [basic and optional] coverages for
which the participant applies; and
(2) the participant's contribution [employer
contributions for basic and optional coverages].
(b) Money contributed by a participant under this section
shall be allocated to the participant in accordance with rules
adopted under Section 1551.302. Money contributed by the
participant is subject to reversion under Section 1551.302(d).
SECTION 1.28. Section 1551.309(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) If the board of trustees includes a cafeteria plan in
the group benefits program, an employee may elect [elects] to
participate in the cafeteria plan. If the employee elects to
participate in the cafeteria plan, the employee must execute a
salary reduction agreement under which the employee's monthly
compensation will be reduced as required by the funding structure
adopted under Section 1551.302 [in an amount equal to the
difference between:
[(1) the employer contributions for basic and optional
coverages; and
[(2) the cost of the cafeteria plan coverages the
board of trustees identifies as comparable to the basic and
optional coverages for which the employee is eligible].
SECTION 1.29. Section 1551.312, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.312. AMOUNT OF STATE CONTRIBUTION FOR CERTAIN
DEPENDENT CHILDREN. The state may contribute a greater amount for
coverage for dependent children described by Section 1551.159(a)
than the amount the state contributes for group coverages for other
dependent children. The amount contributed under this section may
be used to supplement the amounts available to an employee under
Section 1551.301 to fund the coverage authorized under Section
1551.159.
SECTION 1.30. Section 1551.316, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.316. ALLOCATION TO BOARD OF TRUSTEES OF EMPLOYER
CONTRIBUTIONS. From the several funds from which employees receive
their respective salaries, all employer contributions computed in
accordance with this chapter and rules adopted under this chapter
are allocated to the board of trustees to allocate to a participant
as provided by this subchapter [chapter].
SECTION 1.31. Section 1551.317(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) All money allocated by this state, including by
institutions of higher education, to the board of trustees for
participants under this chapter shall be paid to the board in
monthly installments based on the annual estimate by the board of
the contributions to be received for all employees during the year.
SECTION 1.32. Section 1551.352, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1551.352. EXECUTIVE DIRECTOR DETERMINES QUESTIONS
RELATING TO ENROLLMENT OR PAYMENT OF CLAIMS. The executive
director has exclusive authority to determine all questions
relating to enrollment in or payment of a claim arising from group
coverages or benefits provided under this chapter other than
questions relating to payment of a claim by an approved carrier for
a health benefit plan [a health maintenance organization].
SECTION 1.33. Sections 1551.401(b), (c), and (d), Insurance
Code, as effective June 1, 2003, are amended to read as follows:
(b) The board of trustees shall administer the fund in
accordance with the funding structure adopted by the board under
Section 1551.302.
(c) Contributions of participants and the state provided
for under this chapter shall be credited to the fund and allocated
from the fund in accordance with the funding structure adopted by
the board under Section 1551.302.
(d) The fund is available:
(1) without fiscal year limitation for all allocations
to participants for payments for any coverages provided for under
this chapter; and
(2) for payment of expenses of administering this
chapter within the limitations that may be specified annually by
the legislature.
SECTION 1.34. Section 1551.405(e), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(e) Money in the fund may not be spent for any purpose,
except that the interest and investment returns of the fund may be
appropriated only to stabilize the cost of state and participant
contributions for health benefit plan coverage provided by approved
carriers under this chapter by minimizing to the greatest extent
possible increases in those contributions.
SECTION 1.35. Section 1551.406(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) Under the standard of care provided by Section 815.307,
Government Code, the board of trustees may manage and has full power
to invest and reinvest the money in:
(1) the employees life, accident, and health insurance
and benefits fund, including amounts allocated to individual
participants within the fund, if any;
(2) the state employees cafeteria plan trust fund;
and
(3) the employees' health care stabilization trust
fund.
SECTION 1.36. Sections 1551.003(3), 1551.060, 1551.104,
1551.106, 1551.154, and 1551.159(f), Insurance Code, are repealed.
ARTICLE 2. IMPLEMENTATION
SECTION 2.01. (a) The board of trustees of the Employees
Retirement System of Texas, in consultation with the comptroller,
shall develop the funding structure required by Section 1551.302,
Insurance Code, as amended by Article 1 of this Act, and shall take
necessary action to implement a revised group benefits program in
accordance with Chapter 1551, Insurance Code, as amended by Article
1 of this Act, not later than September 1, 2004.
(b) In accordance with the revised group benefits program
required by Article 1 of this Act, the board of trustees shall
transfer to the employees life, accident, and health insurance and
benefits fund from the contingency reserve fund for self-funded
coverage established under Section 1551.211, Insurance Code, any
amounts contained in the contingency reserve fund for self-funded
coverage allocable to coverages that are no longer self-funded
under the group benefits program. A transfer under this subsection
is effective September 1, 2004.
(c) If, under the revised group benefits program required by
Article 1 of this Act, the board of trustees of the Employees
Retirement System of Texas terminates the cafeteria plan operated
under that program, the board of trustees shall transfer the money
contained in the state employees cafeteria plan trust fund that is
no longer required for the purposes of that fund to the employees
life, accident, and health insurance and benefits fund. A transfer
under this subsection is effective September 1, 2004.
ARTICLE 3. EFFECTIVE DATE; TRANSITION
SECTION 3.01. (a) Except as provided by Subsection (b) of
this section:
(1) this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution; and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.
(b) Article 1 of this Act takes effect September 1, 2004.
SECTION 3.02. To the extent of any conflict, this Act
prevails over another Act of the 78th Legislature, Regular Session,
2003, relating to nonsubstantive additions to and corrections in
enacted codes.