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78R8327 DLF-D
By: Duncan S.B. No. 1369
A BILL TO BE ENTITLED
AN ACT
relating to certain group benefit plans provided to certain school
employees and retirees and their dependents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH COVERAGE
ACT AND BENEFITS FOR SCHOOL EMPLOYEES
SECTION 1.01. Section 3, Article 3.50-7, Insurance Code, is
amended by adding Subsection (g) to read as follows:
(g) The trustee shall provide the group health coverage plan
under this article through a defined contribution plan. The
trustee may provide optional coverages offered under the program
through the defined contribution plan. The trustee shall adopt
rules as necessary to implement this subsection.
SECTION 1.02. Section 2(c), Article 3.50-8, Insurance Code,
is amended to read as follows:
(c) The trustee shall distribute funds under this article in
equal annual [monthly] installments. The trustee is entitled to
recover from a school district, other educational district,
participating charter school, or regional education service center
any amount distributed under this article to which the district,
school, or service center was not entitled.
SECTION 1.03. Section 2(c), Article 3.50-9, Insurance Code,
is amended to read as follows:
(c) Amounts used as required by this section shall be
deposited, as applicable, in [:
[(1)] the Texas school employees uniform group
coverage trust fund established under Section 8, Article 3.50-7, of
this code[; or
[(2) another fund established for the payment of
employee health coverage that meets requirements for those funds
prescribed by the Texas Education Agency].
SECTION 1.04. Section 22.004(h), Education Code, is amended
to read as follows:
(h) An audited financial statement provided under this
section must be made in accordance with rules adopted by the board
of trustees of the Teacher Retirement System of Texas [commissioner
of insurance or state auditor, as applicable].
ARTICLE 2. TEXAS PUBLIC SCHOOL EMPLOYEES GROUP BENEFITS ACT
SECTION 2.01. Section 1575.003(1), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(1) "Dependent" means:
(A) the spouse of a retiree or active employee;
(B) an unmarried child of a retiree, active
employee, or deceased active employee if the child is younger than
19 [25] years of age, including:
(i) an adopted child;
(ii) a foster child, stepchild, or other
child who is in a regular parent-child relationship; or
(iii) a recognized natural child;
(C) a retiree's or active employee's recognized
natural child, adopted child, foster child, stepchild, or other
child, without regard to the age of the child, if the child is in a
regular parent-child relationship, lives with or has the child's
care provided by the retiree, active employee, or surviving spouse
on a regular basis, and is mentally retarded or physically
incapacitated to an extent that the child is dependent on the
retiree, active employee, or surviving spouse for care or support,
as determined by the board of trustees; or
(D) a deceased active employee's recognized
natural child, adopted child, foster child, stepchild, or other
child who is in a regular parent-child relationship, without regard
to the age of the child, if, while the active employee was alive,
the child:
(i) lived with or had the child's care
provided by the active employee on a regular basis; and
(ii) was mentally retarded or physically
incapacitated to an extent that the child was dependent on the
active employee or surviving spouse for care or support, as
determined by the board of trustees.
SECTION 2.02. Section 1575.159, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1575.159. COVERAGE FOR PROSTATE-SPECIFIC ANTIGEN
TEST. A health benefit plan offered under the group program must
provide coverage for a medically accepted prostate-specific
antigen test used for the detection of prostate cancer for each male
enrolled in the plan who:
(1) is at least 55 [50] years of age; or
(2) is at least 35 [40] years of age and:
(A) has a family history of prostate cancer; or
(B) exhibits another cancer risk factor.
SECTION 2.03. Section 1575.202(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) Each state fiscal year, the state shall contribute to
the fund an amount equal to 0.1 [0.5] percent of the salary of each
active employee.
SECTION 2.04. Section 1575.203(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) Each state fiscal year, each active employee shall, as a
condition of employment, contribute to the fund an amount equal to
0.5 [0.25] percent of the employee's salary.
SECTION 2.05. Section 1575.204, Insurance Code, as
effective June 1, 2003, is repealed.
SECTION 2.06. Section 1577.101, Insurance Code, as
effective June 1, 2003, is amended to read as follows:
Sec. 1577.101. CONTRACTS TO PROVIDE COVERAGES. The board of
trustees may [shall] contract with one or more carriers authorized
to provide the applicable type of insurance to provide each type of
coverage required by Subchapter B.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. This Act takes effect September 1, 2003.