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80C63(2) KCR

CONFORMING AMENDMENT.

Subtitle C, Title 5, Local Government Code, is amended by adding

Chapter 177 to read as follows:

CHAPTER 177.

LIFE, HEALTH, AND ACCIDENT INSURANCE FOR OFFICIALS, EMPLOYEES, AND RETIREES OF POLITICAL SUBDIVISIONS

SUBCHAPTER A.

GENERAL PROVISIONS

Revised Law

177.001.

CERTAIN COVERAGE AUTHORIZED.

A county or other political subdivision of this state may procure contracts insuring the political subdivision's officials, employees, and retirees or any class of the political subdivision's officials, employees, and retirees under a policy of group life, group health, accident, accidental death and dismemberment, or hospital, surgical, or medical expense insurance.

The dependents of those officials, employees, and retirees may be insured under a group policy that provides:

health insurance; or

hospital, surgical, or medical expense insurance.

(V.T.I.C. Art. 3.51-2, Sec. (a) (part).)

Source Law

Each county or political subdivision of the State of Texas is authorized to procure contracts insuring its officials, employees, and retirees or any class or classes thereof under a policy or policies of group life, group health, accident, accidental death and dismemberment, and hospital, surgical, and/or medical expense insurance.

The dependents of any such officials, employees, and retirees may be insured under group policies which provide health, hospital, surgical and/or medical expense insurance

Revised Law

177.002.

PAYMENT OF PREMIUMS.

A county or other political subdivision of this state that is authorized to procure a contract insuring the political subdivision's officials, employees, and retirees or any class of the political subdivision's officials, employees, and retirees under a policy of group insurance that covers one or more risks may pay from the local funds of the political subdivision all or any portion of the premiums for the policy.

The political subdivision may also pay all or any portion of the premiums on group health, hospital, surgical, or medical expense insurance for dependents of the political subdivision's officials, employees, and retirees.

If authorized by the official, employee, or retiree in writing to make the deduction, the county or other political subdivision may deduct from the person's salary an amount equal to any required contribution by the person to the premiums for the insurance issued under

Section 177.001 to the political

subdivision as the policyholder.

(V.T.I.C. Art. 3.51-2, Secs. (a) (part), (b), (c) (part).)

Source Law

The employees' contributions to the premiums for such insurance issued to the employer as the policyholder may be deducted by the employer from the employees' salaries when authorized in writing by the respective employees so to do;

Any county or political subdivision of the State of Texas which is authorized by law to procure a contract insuring its respective officials, employees, and retirees or any class or classes thereof under a policy or policies of group insurance covering one or more risks may pay all or any portion of the premiums on such policy or policies from the local funds of such county or political subdivision of the State of Texas.

A county or political subdivision of the State of Texas may also pay all or any portion of the premiums on group health, hospital, surgical and/or medical expense insurance coverage for dependents of officials, employees, and retirees.

No deduction from the salary of any official, employee, or retiree shall be made except when he shall have consented in writing to such deduction.

Revisor's Note

Section (b), V.T.I.C.

Article 3.51-2, refers to a county or political subdivision that is "authorized by law" to procure certain contracts.

The revised law omits "by law" as unnecessary because a county or political subdivision may only procure contracts that the law authorizes the county or political subdivision to procure.

Revised Law

177.003.

USE OF STATE FUNDS.

State funds may not be used to procure a contract under this subchapter or pay premiums under that contract.

(V.T.I.C. Art. 3.51-2, Sec. (a) (part).)

Source Law

provided, however, no state funds shall be used to procure such contracts, nor shall any state funds be used to pay premiums under said contracts of insurance.

[Sections 177.004-177.050 reserved for expansion]

SUBCHAPTER B.

HEALTH AND INSURANCE FUND

Revised Law

177.051.

FUND AUTHORIZED.

A county or other political subdivision of this state may establish a fund to provide insurance authorized by Subchapter A.

A fund established under Subsection (

a) shall be known as the "health and insurance fund--employees and dependents."

(V.T.I.C. Art. 3.51-2, Sec. (c) (part).)

Source Law

Each county or political subdivision of the State of Texas is authorized to establish a fund to provide for the life, health, accident, accidental death and dismemberment, and hospital, surgical, and/or medical insurance of its officials, employees and their dependents, and retirees, to be known as the "health and insurance fund--employees and dependents."

Revised Law

177.052.

PAYMENT OF MONEY INTO FUND.

There shall be credited to a fund established under this subchapter:

any salary deduction to which an official, employee, or retiree agrees in writing; and

contributions from the county or other political subdivision.

(V.T.I.C. Art. 3.51-2, Sec. (c) (part).)

Source Law

There shall be credited to such fund such deductions as may be agreed to in writing by any such official, employee, and retiree and contributions from the county or political subdivision,

Revised Law

177.053.

USE OF MONEY IN FUND.

Payment from a fund established under this subchapter:

is authorized only for the payment of premiums on life, group health, accident, accidental death and dismemberment, or hospital, surgical, or medical expense insurance for officials, employees, retirees, and their dependents; and

must be made in accordance with rules adopted by the county or other political subdivision establishing the fund.

(V.T.I.C. Art. 3.51-2, Sec. (c) (part).)

Source Law

from which fund payment shall be authorized only for the payment of premiums on life, group health, accident, accidental death and dismemberment, and hospital, surgical, and/or medical expense insurance for officials, employees, and retirees, and their dependents, under such rules and regulations as may be adopted by the county or political subdivision,

Revisor's Note

V.T.I.C.

Article 3.51-2 refers to "rules and regulations."

The revised law omits the reference to "regulations" as unnecessary because under

Section 311.005(5), Government Code (Code Construction Act), applicable to the revised law, a rule is defined to include a regulation.

Revised Law

177.054.

PAYMENT OF CLAIMS FROM FUND.

A claim against a fund established under this subchapter is payable in the same manner as other claims of the county or other political subdivision.

(V.T.I.C. Art. 3.51-2, Sec. (c) (part).)

Source Law

[from which fund payment shall be authorized only for the payment of premiums]

which claims shall be payable under existing laws in like manner as other county or other political subdivision claims

80C63(2) KCR

80C63(2) KCR

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