82R1503 TRH-F By: Zaffirini S.B. No. 29 A BILL TO BE ENTITLED AN ACT relating to the eligibility of certain postdoctoral fellows and graduate students to participate in health benefit programs at public institutions of higher education. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 1551, Insurance Code, is amended by adding Section 1551.1022 to read as follows: Sec. 1551.1022. PARTICIPATION ELIGIBILITY: CERTAIN POSTDOCTORAL FELLOWS AND GRADUATE STUDENTS. (a) An individual is eligible to participate in the group benefits program if the individual, at an institution of higher education: (1) holds a postdoctoral fellowship; or (2) holds other graduate fellowships awarded to the individual on a competitive basis that, either singly or in combination, are valued at not less than $10,000. (b) An institution of higher education at which an individual holds a fellowship described by Subsection (a) is responsible for payment of the contributions for the individual. Each participant shall contribute that portion of the cost of the group coverage selected by the individual that exceeds the amount of contribution funded by the institution. All portions of the contribution funded by the institution shall be made in proportion to the source of funds from which the fellowship is paid, to the extent allowed by the terms of the fellowship. (c) An institution of higher education shall, at the time of initial eligibility, notify each of the individuals eligible to participate in the group benefits program under Subsection (a) of the individual's eligibility to participate in the program. SECTION 2. Subchapter C, Chapter 1601, Insurance Code, is amended by adding Section 1601.1021 to read as follows: Sec. 1601.1021. PARTICIPATION ELIGIBILITY: CERTAIN POSTDOCTORAL FELLOWS AND GRADUATE STUDENTS. (a) An individual is eligible to participate in the uniform program if the individual, at an institution in a system: (1) holds a postdoctoral fellowship; or (2) holds other graduate fellowships awarded to the individual on a competitive basis that, either singly or in combination, are valued at not less than $10,000. (b) An institution of higher education at which an individual holds a fellowship described by Subsection (a) is responsible for payment of the contributions for the individual. Each participant shall contribute that portion of the cost of the group coverage selected by the individual that exceeds the amount of contribution funded by the institution. All portions of the contribution funded by the institution shall be made in proportion to the source of funds from which the fellowship is paid, to the extent allowed by the terms of the fellowship. (c) An institution of higher education shall, at the time of initial eligibility, notify each of the individuals eligible to participate in the group benefits program under Subsection (a) of the individual's eligibility to participate in the program. SECTION 3. Effective January 1, 2012, Section 1601.101(d), Insurance Code, is repealed. SECTION 4. (a) The board of trustees of the Employees Retirement System of Texas shall include coverage under Section 1551.1022, Insurance Code, as added by this Act, in an insurance policy or contract or evidence of coverage delivered, issued for delivery, or renewed on or after January 1, 2012. The board of trustees may include coverage under Section 1551.1022, Insurance Code, as added by this Act, in an insurance policy or contract or an evidence of coverage delivered, issued for delivery, or renewed before January 1, 2012, if the board of trustees determines that the coverage may reasonably be included. (b) The governing board of The University of Texas System or The Texas A&M University System, as applicable, shall include coverage under Section 1601.1021, Insurance Code, as added by this Act, in an insurance policy or contract or evidence of coverage delivered, issued for delivery, or renewed on or after January 1, 2012. The governing board of a system may include coverage under Section 1601.1021, Insurance Code, as added by this Act, in an insurance policy or contract or an evidence of coverage delivered, issued for delivery, or renewed before January 1, 2012, if the governing board determines that the coverage may reasonably be included. SECTION 5. Except as otherwise provided by this Act, this Act takes effect September 1, 2011.