| 1 | 1 | | 86R6371 SCL-D |
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| 2 | 2 | | By: Cole H.B. No. 964 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to certain claims against the administrator of employment |
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| 8 | 8 | | benefits for the employees of a political subdivision. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 180, Local Government Code, is amended |
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| 11 | 11 | | by adding Section 180.008 to read as follows: |
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| 12 | 12 | | Sec. 180.008. LIABILITY FOR CERTAIN EMPLOYMENT BENEFIT |
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| 13 | 13 | | CLAIMS. (a) In this section, "program administrator" means a |
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| 14 | 14 | | person who manages or administers a plan or program of employee |
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| 15 | 15 | | benefits, including a self-funded or insured health benefit plan. |
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| 16 | 16 | | The term includes an administrator, as that term is defined by |
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| 17 | 17 | | Section 4151.001, Insurance Code. |
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| 18 | 18 | | (b) Notwithstanding any other law, a program administrator |
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| 19 | 19 | | that contracts with a political subdivision to manage or administer |
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| 20 | 20 | | a plan or program of employee benefits for the political |
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| 21 | 21 | | subdivision's employees is liable for a claim against the |
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| 22 | 22 | | administrator, regardless of whether the political subdivision has |
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| 23 | 23 | | governmental immunity, if: |
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| 24 | 24 | | (1) the claim arises from a duty of the administrator |
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| 25 | 25 | | under the contract; and |
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| 26 | 26 | | (2) the administrator would otherwise be liable to the |
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| 27 | 27 | | claimant under law. |
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| 28 | 28 | | (c) A program administrator may not assert a defense of |
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| 29 | 29 | | governmental immunity to suit or liability for a claim against the |
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| 30 | 30 | | administrator described by this section. This section does not |
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| 31 | 31 | | waive the governmental immunity to suit or liability of a political |
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| 32 | 32 | | subdivision. |
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| 33 | 33 | | SECTION 2. The heading to Chapter 180, Local Government |
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| 34 | 34 | | Code, is amended to read as follows: |
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| 35 | 35 | | CHAPTER 180. MISCELLANEOUS PROVISIONS AFFECTING OFFICERS AND |
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| 36 | 36 | | EMPLOYEES OF MUNICIPALITIES, COUNTIES, AND [CERTAIN] OTHER LOCAL |
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| 37 | 37 | | GOVERNMENTS |
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| 38 | 38 | | SECTION 3. Section 180.008, Local Government Code, as added |
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| 39 | 39 | | by this Act, applies only to an action that commences on or after |
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| 40 | 40 | | the effective date of this Act. An action that commences before the |
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| 41 | 41 | | effective date of this Act is governed by the law applicable to the |
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| 42 | 42 | | action immediately before the effective date of this Act, and that |
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| 43 | 43 | | law is continued in effect for that purpose. |
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| 44 | 44 | | SECTION 4. This Act takes effect immediately if it receives |
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| 45 | 45 | | a vote of two-thirds of all the members elected to each house, as |
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| 46 | 46 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 47 | 47 | | Act does not receive the vote necessary for immediate effect, this |
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| 48 | 48 | | Act takes effect September 1, 2019. |
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