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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain university systems to provide |
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benefits to certain qualified individuals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1601.004(b)(2), Insurance Code, is |
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amended to read as follows: |
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(2) "Spouse" means a party to a marriage recognized by |
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the laws of this state, including an informal marriage under |
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Subchapter E, Chapter 2, [has the meaning assigned by the] Family |
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Code. |
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SECTION 2. Section 1601.107, Insurance Code, is amended to |
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read as follows: |
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Sec. 1601.107. COVERAGE FOR DEPENDENTS AND QUALIFIED |
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INDIVIDUALS. (a) An individual who is eligible to participate in |
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the uniform program under Section 1601.101, 1601.102, or 1601.1021 |
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is entitled to secure for a dependent of the individual, or for a |
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qualified individual, any group coverages provided under this |
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chapter for dependents under rules adopted by the applicable |
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system. |
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(b) For purposes of this section, "qualified individual" |
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means an individual who: |
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(1) during the preceding 12 months has continuously |
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resided in the same household with an individual who is eligible to |
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participate in the uniform program as described by Subsection (a); |
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(2) is at least 18 years of age; |
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(3) is not the spouse of the eligible individual; and |
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(4) is directly dependent on, or interdependent with, |
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the eligible individual, sharing a common financial obligation as |
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described by Subsection (c). |
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(c) A relationship of dependence or interdependence under |
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Subsection (b)(4) may be established by providing: |
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(1) any three of the following documents: |
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(A) a joint loan obligation, mortgage, or lease, |
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or a document reflecting joint ownership of a vehicle; |
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(B) a life insurance policy, retirement benefits |
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account, or will of one of the individuals that designates the other |
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as beneficiary or executor; |
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(C) a mutually granted power of attorney for |
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purposes of health care or financial management; |
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(D) a document showing that each individual is |
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authorized to sign for purposes of the other's bank or credit |
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account; and |
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(E) documentary proof of a joint bank or credit |
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account; and |
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(2) a sworn statement attesting to authenticity and |
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truthfulness of documents and representations provided under this |
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section. |
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SECTION 3. Sections 1601.201(b) and (c), Insurance Code, |
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are amended to read as follows: |
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(b) For an employee designated by the system as working 40 |
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or more hours a week, the system may contribute: |
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(1) the full cost of basic coverage for the employee; |
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[and] |
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(2) not more than 50 percent of the cost of dependent |
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coverage; and |
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(3) no amount of the cost of coverage of a qualified |
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individual, as that term is defined by Section 1601.107(b). |
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(c) For an employee designated by the system as working less |
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than 40 hours a week, including an individual employed by the system |
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in a position that as a condition of employment requires the |
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individual to be enrolled as a student in the system in |
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graduate-level courses, the system, from money appropriated from |
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the general revenue fund, may contribute: |
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(1) not more than 50 percent of the cost of basic |
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coverage for the employee; [and] |
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(2) not more than 25 percent of the cost of dependent |
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coverage; and |
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(3) no amount of the cost of coverage of a qualified |
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individual, as that term is defined by Section 1601.107(b). |
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SECTION 4. Section 1601.203, Insurance Code, is amended to |
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read as follows: |
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Sec. 1601.203. PAYMENT FOR COVERAGE FOR DEPENDENTS AND |
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QUALIFIED INDIVIDUALS. Contributions for coverages for a qualified |
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individual, as that term is defined by Section 1601.107(b), or for a |
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dependent of an individual eligible to participate in the uniform |
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program under Section 1601.101 or 1601.102 required of the |
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participant that exceed the amount of system contributions shall be |
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paid: |
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(1) by a deduction from the monthly compensation of |
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the participant; |
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(2) by a reduction of the monthly compensation of the |
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participant in the appropriate amount; or |
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(3) in the form and manner the system determines. |
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SECTION 5. The changes in law made by this Act apply only to |
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group coverages provided under Chapter 1601, Insurance Code, |
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beginning with the 2015-2016 plan year. A plan year before |
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2015-2016 is governed by the law as it existed immediately before |
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September 1, 2015, and that law is continued in effect for that |
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purpose. |
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SECTION 6. This Act takes effect September 1, 2015. |