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.