78R4977 AKH-D
By: Janek S.B. No. 1547
A BILL TO BE ENTITLED
AN ACT
relating to group health and related benefits provided by populous
counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter A, Chapter 157, Local
Government Code, is amended to read as follows:
SUBCHAPTER A. MEDICAL CARE, HOSPITALIZATION, AND INSURANCE IN
CERTAIN COUNTIES
SECTION 2. Section 157.001, Local Government Code, is
amended to read as follows:
Sec. 157.001. HOSPITALIZATION INSURANCE. (a) This
subchapter applies only to a county with a population of less than
3.2 million.
(b) The commissioners court of a county may provide
hospitalization insurance to a county official, deputy, assistant,
or other county employee.
SECTION 3. The heading to Section 157.002, Local Government
Code, is amended to read as follows:
Sec. 157.002. MEDICAL CARE, HOSPITALIZATION, AND INSURANCE
IN CERTAIN COUNTIES.
SECTION 4. Chapter 157, Local Government Code, is amended
by adding Subchapter F to read as follows:
SUBCHAPTER F. GROUP HEALTH AND RELATED BENEFITS IN POPULOUS
COUNTIES
Sec. 157.101. APPLICABILITY. This subchapter applies only
to a county with a population of 3.2 million or more.
Sec. 157.102. GROUP HEALTH AND RELATED BENEFITS IN POPULOUS
COUNTIES. (a) The commissioners court by rule may provide for group
health and related benefits, including medical care, surgical care,
hospitalization, and pharmaceutical, life, accident, disability,
long-term care, vision, dental, mental health, and substance abuse
benefits, for the following persons if their salaries are paid from
the funds of the county or of a flood control district located
entirely in the county or if they are employees of another
governmental entity for which the county is obligated to provide
benefits:
(1) deputies, assistants, and other employees of the
county, or of the flood control district, who work under the
commissioners court or its appointees;
(2) county and district officers and their deputies
and assistants appointed under Subchapter A, Chapter 151;
(3) employees of a community supervision and
corrections department established under Chapter 76, Government
Code;
(4) a retired person formerly holding a status listed
in Subdivisions (1)-(3); and
(5) the dependents of a person listed in Subdivisions
(1)-(3).
(b) The commissioners court may provide the benefits under
Subsection (a) through insurance, self-insurance, or a contract
with a county-operated hospital, a hospital operated jointly by a
municipality and county, or a private hospital.
(c) A rule adopted under this section relating to a person's
group health or related benefits coverage must be included in the
person's employment contract or otherwise communicated in writing
to the person.
(d) A rule adopted under this section may be subject to the
approval of the county auditor.
(e) Before adopting a rule under this section, the
commissioners court must provide notice of a hearing about the
proposed adoption in accordance with Chapter 551, Government Code.
At the hearing, an employee or taxpayer of the county is entitled to
appear and protest the adoption of a rule.
(f) A county providing coverage under this section may
reinsure its potential liability or purchase stop-loss coverage for
any amount of potential liability that is in excess of projected
paid losses. A county that reinsures its potential liability or
purchases stop-loss coverage for any amount of potential liability
must do so from an insurance company admitted to do business in this
state that holds a certificate of authority from the Texas
Department of Insurance.
Sec. 157.103. GROUP HEALTH AND RELATED BENEFITS FUND. (a)
The commissioners court of a county that adopts rules under Section
157.102 may require persons participating in the group health and
related benefits plan to contribute toward the payment of the plan.
The commissioners court may establish a fund to pay for the group
health and related benefits. The fund may take the form of a single
nonprofit trust as described by Section 2(c)(1), Article 4.11,
Insurance Code.
(b) A person who elects to participate in any aspect of the
group health and related benefits plan and is required to make
contributions toward the payment of the plan must authorize
contributions to the fund by salary deduction. The authorization
must be submitted in writing to the county officer authorized by the
commissioners court to administer payroll deductions. The
authorization remains in effect as long as the person is required to
make contributions toward the payment of the plan. If the amount of
the person's required contributions changes after the date the
request for deduction is submitted, the county shall notify the
person of the change before the change takes effect. The county and
any participating flood control district may also contribute to the
fund.
(c) The fund may be used only for the purposes stated in
Subsection (a). Employees who are discharged or who end their
employment voluntarily have no vested right to contributions made
to the fund. The fund shall continue to be used for the benefit of
the remaining employees.
(d) Claims shall be paid from the fund in the same manner as
provided by law for the payment of other claims of the county or
flood control district.
(e) If a plan established under this section is terminated
by the commissioners court, the remaining funds shall be
transferred to the county and to any participating flood control
district in proportion to the total contributions made by them.
Sec. 157.104. SUBROGATION. (a) A county that has paid
group health and related benefits for a sheriff, deputy sheriff,
constable, deputy constable, or other county or precinct law
enforcement official is subrogated to the law enforcement
official's right of recovery for personal injuries caused by
another to the extent of the payments made by the county.
(b) A county may not refuse to pay group health and related
benefits on the ground that the law enforcement official has a claim
for damages for personal injury.
Sec. 157.105. PAYMENTS FOR CERTAIN HEALTH COVERAGE. A
county may purchase and pay premiums for coverages as described by
Section 157.006.
SECTION 5. This Act takes effect September 1, 2003.