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
 
 
 
 
AN ACT
  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) [(f)]  Notwithstanding Subsection (b), an individual to
  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) [(g)]  Subsection (h) [(f)] applies only to a person who,
  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       
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