Bill Text: TX HB4035 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to eligibility and contributions for coverage under the state employee group benefits program and health benefit plans offered by certain university systems.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - See remarks for effective date [HB4035 Detail]
Download: Texas-2017-HB4035-Enrolled.html
H.B. No. 4035 |
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relating to eligibility and contributions for coverage under the | ||
state employee group benefits program and health benefit plans | ||
offered by certain university systems. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 824, Government Code, is | ||
amended by adding Section 824.0071 to read as follows: | ||
Sec. 824.0071. DEDUCTIONS FROM SERVICE OR DISABILITY | ||
RETIREMENT ANNUITY FOR CERTAIN UNIVERSITY INSURANCE PROGRAM | ||
CONTRIBUTIONS. (a) In this section, "program administrator" means | ||
the person who administers the uniform program under Section | ||
1601.051, Insurance Code. | ||
(b) A retiree who is participating in the uniform program | ||
under Chapter 1601, Insurance Code, may authorize the retirement | ||
system to deduct the amount of the contribution and any other | ||
qualified health insurance premium from the retiree's regular | ||
monthly service or disability retirement annuity payment if the | ||
amount of the monthly annuity is greater than or equal to the amount | ||
of the authorized deduction. | ||
(c) A retiree may authorize the deduction described by | ||
Subsection (b) on a form provided by the program administrator. The | ||
program administrator shall maintain the record of the | ||
authorization made under this section. | ||
(d) The program administrator shall: | ||
(1) notify the retirement system of the authorization | ||
under Subsection (b); and | ||
(2) in the manner and form prescribed by the | ||
retirement system, provide the retirement system with the names of | ||
the retirees and other relevant information needed by the | ||
retirement system to administer the deduction. | ||
(e) After making the deduction, the retirement system shall | ||
pay to the program administrator an aggregate amount for all | ||
retirees who authorize annuity deductions under Subsection (b). | ||
(f) If a retiree no longer receives a monthly annuity | ||
greater than or equal to the amount of the authorized deduction, the | ||
retirement system: | ||
(1) shall inform the program administrator; and | ||
(2) is not required to make a deduction under this | ||
section for the retiree. | ||
(g) The retirement system shall make the authorized | ||
deduction each month until: | ||
(1) the date the annuity is no longer payable by the | ||
retirement system; | ||
(2) the retirement system is notified by the program | ||
administrator that the retiree has canceled the authorization to | ||
make the deduction; or | ||
(3) the amount of the monthly annuity is no longer | ||
greater than or equal to the amount of the authorized deduction as | ||
described by Subsection (f). | ||
(h) The program administrator shall reimburse the | ||
retirement system the cost, as determined by the retirement system, | ||
incurred by the retirement system in implementing this section. | ||
(i) This section does not apply to an individual described | ||
by Section 824.007(b). | ||
SECTION 2. Section 1551.102, Insurance Code, is amended by | ||
adding Subsection (c-1) to read as follows: | ||
(c-1) An individual is eligible to participate in the group | ||
benefits program as provided by Subsection (a) if: | ||
(1) the individual meets the minimum requirements | ||
under Subsection (c) except that the individual does not have at | ||
least 10 years of eligible service credit as described by | ||
Subsection (c)(1); | ||
(2) the individual has at least 10 years of combined | ||
service in a position for which the individual was eligible to | ||
participate in the group benefits program or in the uniform program | ||
under Section 1601.101; and | ||
(3) either: | ||
(A) the individual's greatest number of years of | ||
state employment was in a position for which the individual was | ||
eligible to participate in the group benefits program; or | ||
(B) if the individual's years of employment in | ||
positions eligible to participate in the group benefits program and | ||
the uniform program are equal, the individual's last state | ||
employment before retirement was in a position for which the | ||
individual was eligible to participate in the group benefits | ||
program. | ||
SECTION 3. Section 1601.053, Insurance Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) Notwithstanding any other provision of this chapter, a | ||
system may adjust a plan and coverage standards as necessary to | ||
comply with applicable state and federal law and to provide | ||
consistent eligibility for all plans under the program, including | ||
eligibility for optional coverages. | ||
SECTION 4. Section 1601.102, Insurance Code, is amended by | ||
adding Subsection (d-1) to read as follows: | ||
(d-1) An individual is eligible to participate in the | ||
uniform program as provided by Subsection (a) if: | ||
(1) the individual meets the minimum requirements | ||
under Subsection (b) except that the individual does not have at | ||
least 10 years of service as described by Subsection (b)(1); | ||
(2) the individual has at least 10 years of combined | ||
service in a position for which the individual was eligible to | ||
participate in the uniform program or in the group benefits program | ||
under Section 1551.101; and | ||
(3) either: | ||
(A) the individual's greatest number of years of | ||
state employment was in a position for which the individual was | ||
eligible to participate in the uniform program; or | ||
(B) if the individual's years of employment in | ||
positions eligible to participate in the uniform program and the | ||
group benefits program are equal, the individual's last state | ||
employment before retirement was in a position for which the | ||
individual was eligible to participate in the uniform program. | ||
SECTION 5. Subsection (f), Section 1601.102, Insurance | ||
Code, as added by Chapter 1266, Acts of the 78th Legislature, | ||
Regular Session, 2003, is redesignated as Subsection (h), Section | ||
1601.102, Insurance Code, to read as follows: | ||
(h) [ |
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whom this subsection applies is eligible to participate in the | ||
uniform program as provided by Subsection (a) if: | ||
(1) the individual has at least three years of service | ||
with a system for which the individual was eligible to participate | ||
in the uniform program under Section 1601.101; | ||
(2) the individual's last state employment before | ||
retirement was with that system; and | ||
(3) the individual retires under the jurisdiction of: | ||
(A) the Teacher Retirement System of Texas under | ||
Subtitle C, Title 8, Government Code; | ||
(B) the Employees Retirement System of Texas; or | ||
(C) subject to Subsection (c): | ||
(i) the optional retirement program | ||
established by Chapter 830, Government Code; or | ||
(ii) any other federal or state statutory | ||
retirement program to which the system has made employer | ||
contributions. | ||
SECTION 6. Subsection (g), Section 1601.102, Insurance | ||
Code, as added by Chapter 1266, Acts of the 78th Legislature, | ||
Regular Session, 2003, is redesignated as Subsection (i), Section | ||
1601.102, Insurance Code, and amended to read as follows: | ||
(i) [ |
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on August 31, 2003: | ||
(1) was eligible to participate in the uniform program | ||
as an employee under Section 1601.101; or | ||
(2) was eligible to participate in the uniform program | ||
as a retired employee under this section as this section existed on | ||
January 1, 2003. | ||
SECTION 7. Subchapter C, Chapter 1601, Insurance Code, is | ||
amended by adding Section 1601.1065 to read as follows: | ||
Sec. 1601.1065. OPTIONAL BASIC COVERAGE PLAN FOR GRADUATE | ||
STUDENTS. The system may design and offer a separate optional basic | ||
coverage plan for employees who are graduate students. The system | ||
shall determine the participation eligibility, coverage, payments, | ||
contributions, and costs of a plan offered under this section. | ||
SECTION 8. Subchapter E, Chapter 1601, Insurance Code, is | ||
amended by adding Sections 1601.2042 and 1601.211 to read as | ||
follows: | ||
Sec. 1601.2042. COMPENSATION INSUFFICIENT TO COVER | ||
DEDUCTION. If a participant's monthly compensation from which the | ||
participant's contribution is deducted is insufficient to pay the | ||
participant's contribution for coverage, the system may adopt rules | ||
under which the system considers the coverage to have terminated | ||
after the last full month for which the contribution was paid in | ||
full, as determined by the system. | ||
Sec. 1601.211. LIABILITY FOR BACK CONTRIBUTIONS FOR DROPPED | ||
COVERAGE. (a) This section applies to a participant in the uniform | ||
program for whom appropriate contributions were not made during the | ||
entire plan year because of nonpayment of premiums. | ||
(b) As a condition of enrollment in the same coverage for a | ||
subsequent plan year, the participant must make a contribution | ||
equal to the contributions not made for the plan year for which | ||
appropriate contributions were not made during the entire plan | ||
year, unless the nonpayment of premiums was related to a qualified | ||
change in status, as determined by the system. The payment shall be | ||
made in the form and manner determined by the system. | ||
SECTION 9. The changes in law made by this Act apply only to | ||
group coverages provided under Chapter 1601, Insurance Code, | ||
beginning with the 2017-2018 plan year. A plan year before | ||
2017-2018 is governed by the law as it existed immediately before | ||
the effective date of this section, and that law is continued in | ||
effect for that purpose. | ||
SECTION 10. (a) Except as provided by Subsection (b) of | ||
this section, this Act takes effect immediately if it receives a | ||
vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2017. | ||
(b) Section 824.0071, Government Code, as added by this Act, | ||
takes effect January 1, 2018. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 4035 was passed by the House on May 4, | ||
2017, by the following vote: Yeas 143, Nays 0, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 4035 on May 26, 2017, by the following vote: Yeas 145, Nays 0, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 4035 was passed by the Senate, with | ||
amendments, on May 24, 2017, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |