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  83R1196 TJS-D
 
  By: Naishtat H.B. No. 1140
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of certain university systems to provide
  benefits to certain qualified individuals.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1601.107, Insurance Code, is amended to
  read as follows:
         Sec. 1601.107.  COVERAGE FOR DEPENDENTS AND QUALIFIED
  INDIVIDUALS. (a) An individual who is eligible to participate in
  the uniform program under Section 1601.101, 1601.102, or 1601.1021
  is entitled to secure for a dependent of the individual, or for a
  qualified individual, any group coverages provided under this
  chapter for dependents under rules adopted by the applicable
  system.
         (b)  For purposes of this section, "qualified individual"
  has the meaning assigned by any applicable rule adopted by the
  system.
         SECTION 2.  Sections 1601.201(b) and (c), Insurance Code,
  are amended to read as follows:
         (b)  For an employee designated by the system as working 40
  or more hours a week, the system may contribute:
               (1)  the full cost of basic coverage for the employee;
  [and]
               (2)  not more than 50 percent of the cost of dependent
  coverage; and
               (3)  no amount of the cost of coverage of a qualified
  individual, as that term is defined by Section 1601.107(b).
         (c)  For an employee designated by the system as working less
  than 40 hours a week, including an individual employed by the system
  in a position that as a condition of employment requires the
  individual to be enrolled as a student in the system in
  graduate-level courses, the system, from money appropriated from
  the general revenue fund, may contribute:
               (1)  not more than 50 percent of the cost of basic
  coverage for the employee; [and]
               (2)  not more than 25 percent of the cost of dependent
  coverage; and
               (3)  no amount of the cost of coverage of a qualified
  individual, as that term is defined by Section 1601.107(b).
         SECTION 3.  Section 1601.203, Insurance Code, is amended to
  read as follows:
         Sec. 1601.203.  PAYMENT FOR COVERAGE FOR DEPENDENTS AND
  QUALIFIED INDIVIDUALS. Contributions for coverages for a qualified
  individual, as that term is defined by Section 1601.107(b), or for a
  dependent of an individual eligible to participate in the uniform
  program under Section 1601.101 or 1601.102 required of the
  participant that exceed the amount of system contributions shall be
  paid:
               (1)  by a deduction from the monthly compensation of
  the participant;
               (2)  by a reduction of the monthly compensation of the
  participant in the appropriate amount; or
               (3)  in the form and manner the system determines.
         SECTION 4.  The changes in law made by this Act apply only to
  group coverages provided under Chapter 1601, Insurance Code,
  beginning with the 2013-2014 plan year. A plan year before
  2013-2014 is governed by the law as it existed immediately before
  September 1, 2013, and that law is continued in effect for that
  purpose.
         SECTION 5.  This Act takes effect September 1, 2013.