Texas 2009 - 81st Regular

Texas Senate Bill SB654 Compare Versions

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Old	New	Differences
1	1	S.B. No. 654
2	2
3	3
4	4	AN ACT
5	5	relating to continued health coverage for employees of certain
6	6	political subdivisions.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. The heading to Chapter 175, Local Government
9	9	Code, is amended to read as follows:
10	10	CHAPTER 175. RIGHT OF [CERTAIN MUNICIPAL AND COUNTY] EMPLOYEES OF
11	11	CERTAIN POLITICAL SUBDIVISIONS TO PURCHASE CONTINUED HEALTH
12	12	COVERAGE AT RETIREMENT
13	13	SECTION 2. Section 175.001, Local Government Code, is
14	14	amended to read as follows:
15	15	Sec. 175.001. APPLICABILITY. This chapter applies to a
16	16	person who:
17	17	(1) retires from:
18	18	(A) county employment in a county with a
19	19	population of 75,000 or more;
20	20	(B) employment by an appraisal district in a
21	21	county with a population of 75,000 or more; or
22	22	(C) municipal employment in a municipality with a
23	23	population of 25,000 or more; and
24	24	(2) is entitled to receive retirement benefits from a
25	25	county, appraisal district, or municipal retirement plan.
26	26	SECTION 3. Subsections (a) and (b), Section 175.002, Local
27	27	Government Code, are amended to read as follows:
28	28	(a) A person to whom this chapter applies is entitled to
29	29	purchase continued health benefits coverage for the person and the
30	30	person's dependents as provided by this chapter unless the person
31	31	is eligible for group health benefits coverage through another
32	32	employer. The coverage shall be provided under the group health
33	33	insurance plan or group health coverage plan provided by or through
34	34	the employing political subdivision [county or municipality] to its
35	35	employees.
36	36	(b) To receive continued coverage under this chapter, the
37	37	person must inform the employing political subdivision [county or
38	38	municipality], not later than the day on which the person retires
39	39	from the political subdivision [county or municipality], that the
40	40	person elects to continue coverage.
41	41	SECTION 4. Sections 175.003 through 175.007, Local
42	42	Government Code, are amended to read as follows:
43	43	Sec. 175.003. LEVEL OF COVERAGE. (a) The person may elect
44	44	to cover the same persons who were covered under the political
45	45	subdivision's [county's or municipality's] group health insurance
46	46	plan or group health coverage plan through the person at the time
47	47	the person left [county or municipal] employment with the political
48	48	subdivision, or the person may elect to discontinue coverage for
49	49	one or more persons. A person who was not covered under the plan at
50	50	the time the person to whom this chapter applies left [county or
51	51	municipal] employment with the political subdivision is not
52	52	eligible for coverage under this chapter.
53	53	(b) Except as provided by Subsections (c) and (d), the level
54	54	of coverage provided under this chapter at any given time is the
55	55	same level of coverage provided to current employees of the
56	56	political subdivision [county or municipality] at that time.
57	57	(c) A political subdivision [county or municipality] may
58	58	substitute Medicare supplement health benefits coverage as the
59	59	coverage provided for a person who receives health benefits
60	60	coverage under this chapter, including a dependent, after the date
61	61	that the person becomes eligible for federal Medicare benefits.
62	62	(d) The person may elect to continue coverage at a reduced
63	63	level, if offered by the political subdivision [county or
64	64	municipality].
65	65	Sec. 175.004. PAYMENT FOR COVERAGE. A person who is
66	66	entitled to continued coverage under this chapter is entitled to
67	67	make payments for the coverage at the same time and to the same
68	68	entity that payments for the coverage are made by current employees
69	69	of the political subdivision [county or municipality].
70	70	Sec. 175.005. DUTY TO INFORM RETIREE OF RIGHTS. A political
71	71	subdivision [county and a municipality] shall provide written
72	72	notice to a person to whom this chapter may apply of the person's
73	73	rights under this chapter not later than the date the person retires
74	74	from the political subdivision [county or municipality]. A
75	75	political subdivision [county or municipality] may fulfill its
76	76	requirements under this section by placing the written notice
77	77	required by this section in a personnel manual or employee handbook
78	78	that is available to all employees.
79	79	Sec. 175.006. CERTAIN MATTERS NOT AFFECTED. This chapter
80	80	does not:
81	81	(1) prohibit a political subdivision [county or
82	82	municipality] from uniformly changing the group health insurance
83	83	plan or group health coverage plan provided for its employees and
84	84	retirees;
85	85	(2) affect the definition of a dependent or the
86	86	eligibility requirements for a dependent under a plan;
87	87	(3) prohibit a political subdivision [county or
88	88	municipality] from agreeing with a person to deduct the cost of
89	89	coverage provided under this chapter from a pension check;
90	90	(4) prohibit a political subdivision [county or
91	91	municipality] from agreeing with a person to pay for the coverage
92	92	provided under this chapter provided the person reimburses the
93	93	political subdivision [county or municipality] for the actual cost
94	94	of the coverage;
95	95	(5) prohibit a political subdivision [county,
96	96	municipality,] or a pool established under Chapter 172 from
97	97	increasing the cost of group health coverage to its employees and to
98	98	persons covered under this chapter to reflect the increased cost,
99	99	if any, attributable to compliance with this chapter;
100	100	(6) affect the right of a political subdivision
101	101	[county or municipality] to provide coverage under Chapter 172; or
102	102	(7) affect the right of a political subdivision
103	103	[county, municipality,] or a pool established under Chapter 172 to
104	104	offer the coverage at the same rate that is available to active
105	105	employees or to offer the coverage at a reasonable or actual rate
106	106	established for retirees that may be greater than the rate offered
107	107	to active employees.
108	108	Sec. 175.007. EXEMPTIONS. (a) A political subdivision
109	109	[county or municipality] that does not provide health benefits
110	110	coverage through a self-insured plan or a plan authorized under
111	111	Chapter 172 is not required to provide coverage under this chapter
112	112	if the political subdivision [county or municipality] makes a good
113	113	faith effort to purchase insurance coverage that includes coverage
114	114	required by this chapter from an insurance company authorized to do
115	115	business in this state and from pools established under Chapter 172
116	116	but is unable to find a provider for the coverage.
117	117	(b) A political subdivision [county or municipality] that
118	118	is providing coverage substantially similar to or better than the
119	119	coverage required by this chapter is exempt from this chapter.
120	120	SECTION 5. Subdivision (3), Section 172.003, Local
121	121	Government Code, is amended to read as follows:
122	122	(3) "Political subdivision" means a county,
123	123	municipality, special district, school district, junior college
124	124	district, housing authority, or other political subdivision of this
125	125	[the] state or any other state.
126	126	SECTION 6. (a) Chapter 175, Local Government Code, as
127	127	amended by this Act, applies according to its terms to all eligible
128	128	persons who leave employment with an appraisal district on or after
129	129	January 1, 2010.
130	130	(b) An appraisal district that is required by Chapter 175,
131	131	Local Government Code, as amended by this Act, to provide continued
132	132	health benefits coverage but that is not allowed to provide the
133	133	coverage under the terms of the appraisal district's existing group
134	134	health plan shall ensure that the required continued health
135	135	benefits coverage is provided for in any new plan that is adopted by
136	136	the appraisal district on or after January 1, 2010, unless the
137	137	appraisal district is exempted under Section 175.007, Local
138	138	Government Code, as amended by this Act.
139	139	SECTION 7. This Act takes effect immediately if it receives
140	140	a vote of two-thirds of all the members elected to each house, as
141	141	provided by Section 39, Article III, Texas Constitution. If this
142	142	Act does not receive the vote necessary for immediate effect, this
143	143	Act takes effect September 1, 2009.
144	144	______________________________ ______________________________
145	145	President of the Senate Speaker of the House
146	146	I hereby certify that S.B. No. 654 passed the Senate on
147	147	April 16, 2009, by the following vote: Yeas 31, Nays 0; and that
148	148	the Senate concurred in House amendments on May 29, 2009, by the
149	149	following vote: Yeas 31, Nays 0.
150	150	______________________________
151	151	Secretary of the Senate
152	152	I hereby certify that S.B. No. 654 passed the House, with
153	153	amendments, on May 26, 2009, by the following vote: Yeas 138,
154	154	Nays 7, one present not voting.
155	155	______________________________
156	156	Chief Clerk of the House
157	157	Approved:
158	158	______________________________
159	159	Date
160	160	______________________________
161	161	Governor