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AN ACT
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relating to continued health coverage for employees of certain |
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political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 175, Local Government |
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Code, is amended to read as follows: |
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CHAPTER 175. RIGHT OF [CERTAIN MUNICIPAL AND COUNTY] EMPLOYEES OF |
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CERTAIN POLITICAL SUBDIVISIONS TO PURCHASE CONTINUED HEALTH |
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COVERAGE AT RETIREMENT |
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SECTION 2. Section 175.001, Local Government Code, is |
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amended to read as follows: |
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Sec. 175.001. APPLICABILITY. This chapter applies to a |
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person who: |
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(1) retires from: |
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(A) county employment in a county with a |
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population of 75,000 or more; |
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(B) employment by an appraisal district in a |
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county with a population of 75,000 or more; or |
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(C) municipal employment in a municipality with a |
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population of 25,000 or more; and |
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(2) is entitled to receive retirement benefits from a |
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county, appraisal district, or municipal retirement plan. |
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SECTION 3. Subsections (a) and (b), Section 175.002, Local |
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Government Code, are amended to read as follows: |
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(a) A person to whom this chapter applies is entitled to |
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purchase continued health benefits coverage for the person and the |
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person's dependents as provided by this chapter unless the person |
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is eligible for group health benefits coverage through another |
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employer. The coverage shall be provided under the group health |
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insurance plan or group health coverage plan provided by or through |
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the employing political subdivision [county or municipality] to its |
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employees. |
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(b) To receive continued coverage under this chapter, the |
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person must inform the employing political subdivision [county or
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municipality], not later than the day on which the person retires |
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from the political subdivision [county or municipality], that the |
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person elects to continue coverage. |
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SECTION 4. Sections 175.003 through 175.007, Local |
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Government Code, are amended to read as follows: |
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Sec. 175.003. LEVEL OF COVERAGE. (a) The person may elect |
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to cover the same persons who were covered under the political |
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subdivision's [county's or municipality's] group health insurance |
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plan or group health coverage plan through the person at the time |
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the person left [county or municipal] employment with the political |
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subdivision, or the person may elect to discontinue coverage for |
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one or more persons. A person who was not covered under the plan at |
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the time the person to whom this chapter applies left [county or
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municipal] employment with the political subdivision is not |
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eligible for coverage under this chapter. |
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(b) Except as provided by Subsections (c) and (d), the level |
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of coverage provided under this chapter at any given time is the |
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same level of coverage provided to current employees of the |
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political subdivision [county or municipality] at that time. |
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(c) A political subdivision [county or municipality] may |
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substitute Medicare supplement health benefits coverage as the |
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coverage provided for a person who receives health benefits |
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coverage under this chapter, including a dependent, after the date |
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that the person becomes eligible for federal Medicare benefits. |
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(d) The person may elect to continue coverage at a reduced |
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level, if offered by the political subdivision [county or
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municipality]. |
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Sec. 175.004. PAYMENT FOR COVERAGE. A person who is |
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entitled to continued coverage under this chapter is entitled to |
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make payments for the coverage at the same time and to the same |
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entity that payments for the coverage are made by current employees |
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of the political subdivision [county or municipality]. |
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Sec. 175.005. DUTY TO INFORM RETIREE OF RIGHTS. A political |
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subdivision [county and a municipality] shall provide written |
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notice to a person to whom this chapter may apply of the person's |
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rights under this chapter not later than the date the person retires |
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from the political subdivision [county or municipality]. A |
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political subdivision [county or municipality] may fulfill its |
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requirements under this section by placing the written notice |
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required by this section in a personnel manual or employee handbook |
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that is available to all employees. |
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Sec. 175.006. CERTAIN MATTERS NOT AFFECTED. This chapter |
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does not: |
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(1) prohibit a political subdivision [county or
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municipality] from uniformly changing the group health insurance |
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plan or group health coverage plan provided for its employees and |
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retirees; |
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(2) affect the definition of a dependent or the |
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eligibility requirements for a dependent under a plan; |
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(3) prohibit a political subdivision [county or
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municipality] from agreeing with a person to deduct the cost of |
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coverage provided under this chapter from a pension check; |
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(4) prohibit a political subdivision [county or
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municipality] from agreeing with a person to pay for the coverage |
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provided under this chapter provided the person reimburses the |
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political subdivision [county or municipality] for the actual cost |
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of the coverage; |
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(5) prohibit a political subdivision [county,
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municipality,] or a pool established under Chapter 172 from |
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increasing the cost of group health coverage to its employees and to |
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persons covered under this chapter to reflect the increased cost, |
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if any, attributable to compliance with this chapter; |
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(6) affect the right of a political subdivision |
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[county or municipality] to provide coverage under Chapter 172; or |
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(7) affect the right of a political subdivision |
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[county, municipality,] or a pool established under Chapter 172 to |
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offer the coverage at the same rate that is available to active |
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employees or to offer the coverage at a reasonable or actual rate |
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established for retirees that may be greater than the rate offered |
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to active employees. |
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Sec. 175.007. EXEMPTIONS. (a) A political subdivision |
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[county or municipality] that does not provide health benefits |
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coverage through a self-insured plan or a plan authorized under |
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Chapter 172 is not required to provide coverage under this chapter |
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if the political subdivision [county or municipality] makes a good |
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faith effort to purchase insurance coverage that includes coverage |
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required by this chapter from an insurance company authorized to do |
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business in this state and from pools established under Chapter 172 |
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but is unable to find a provider for the coverage. |
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(b) A political subdivision [county or municipality] that |
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is providing coverage substantially similar to or better than the |
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coverage required by this chapter is exempt from this chapter. |
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SECTION 5. Subdivision (3), Section 172.003, Local |
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Government Code, is amended to read as follows: |
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(3) "Political subdivision" means a county, |
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municipality, special district, school district, junior college |
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district, housing authority, or other political subdivision of this |
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[the] state or any other state. |
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SECTION 6. (a) Chapter 175, Local Government Code, as |
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amended by this Act, applies according to its terms to all eligible |
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persons who leave employment with an appraisal district on or after |
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January 1, 2010. |
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(b) An appraisal district that is required by Chapter 175, |
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Local Government Code, as amended by this Act, to provide continued |
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health benefits coverage but that is not allowed to provide the |
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coverage under the terms of the appraisal district's existing group |
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health plan shall ensure that the required continued health |
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benefits coverage is provided for in any new plan that is adopted by |
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the appraisal district on or after January 1, 2010, unless the |
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appraisal district is exempted under Section 175.007, Local |
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Government Code, as amended by this Act. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 654 passed the Senate on |
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April 16, 2009, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendments on May 29, 2009, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 654 passed the House, with |
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amendments, on May 26, 2009, by the following vote: Yeas 138, |
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Nays 7, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |