By: Black H.B. No. 1415
73R2440 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of, and systems and programs
1-3 administered by, the Employees Retirement System of Texas and the
1-4 Teacher Retirement System of Texas.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle A, Title 8, Government Code, is amended
1-7 by adding Chapter 805 to read as follows:
1-8 CHAPTER 805. CREDIT TRANSFER BETWEEN EMPLOYEES RETIREMENT
1-9 SYSTEM OF TEXAS AND TEACHER RETIREMENT SYSTEM OF TEXAS
1-10 Sec. 805.001. DEFINITIONS. In this chapter:
1-11 (1) "Employees retirement system" means the Employees
1-12 Retirement System of Texas.
1-13 (2) "Member" means a person having membership in the
1-14 employees retirement system or the teacher retirement system under
1-15 statutes and rules governing membership in the respective systems.
1-16 (3) "Service credit" has the meaning assigned, as
1-17 applicable, by Section 811.001 or Section 821.001.
1-18 (4) "System" means the employees retirement system or
1-19 the teacher retirement system.
1-20 (5) "Teacher retirement system" means the Teacher
1-21 Retirement System of Texas.
1-22 Sec. 805.002. ELIGIBILITY TO TRANSFER SERVICE CREDIT.
1-23 (a) Except as provided by Subsection (f), a member of both the
1-24 employees retirement system and the teacher retirement system who
2-1 applies for service or disability retirement from the system in
2-2 which the member most recently received service credit may transfer
2-3 to that system service credit established in the other system if
2-4 the member has at least three years of service credit in the system
2-5 from which the member is retiring.
2-6 (b) Except as provided by Subsection (f), a member of both
2-7 the employees retirement system and the teacher retirement system
2-8 who has less than three years of service credit in the system in
2-9 which the person most recently received service credit may, at the
2-10 time the person applies for service or disability retirement from
2-11 the other system, transfer service credit to that system from the
2-12 system in which the person most recently received service credit.
2-13 (c) Except as provided by Subsections (e), (f), and (g), a
2-14 member of the employees retirement system or the teacher retirement
2-15 system who applies for service or disability retirement and who
2-16 formerly was a member of the other system may reinstate or purchase
2-17 service credit in the other system for the purpose of making a
2-18 transfer under Subsection (a) if the member has at least three
2-19 years of service credit in the system from which the member is
2-20 retiring.
2-21 (d) Except as provided by Subsections (e), (f), and (g), the
2-22 designated beneficiary of a member of the employees retirement
2-23 system or the teacher retirement system who dies while holding a
2-24 position included in the membership of the system may make a
2-25 transfer under Subsection (a) and a reinstatement or purchase under
2-26 Subsection (c) if the deceased member had at least three years of
2-27 service credit in the system in which the member was performing
3-1 service at the time of death. The designated beneficiary may make
3-2 a transfer under Subsection (b) if the deceased member had less
3-3 than three years of service credit in the system in which the
3-4 member was performing service at the time of death. If a member is
3-5 not survived by a designated beneficiary, the personal
3-6 representative of the member's estate has the same right under this
3-7 subsection as a designated beneficiary.
3-8 (e) Service credit that is canceled by a termination of
3-9 membership that occurs after August 31, 1993, may be reinstated and
3-10 other service purchased only by a member of the system in which the
3-11 service is creditable who meets the general requirements for
3-12 reinstatement or purchase of service credit in that system.
3-13 (f) Service credit is not eligible to be transferred under
3-14 this section if credit for the same service is credited in the
3-15 system to which it would be transferred.
3-16 (g) A person who is receiving retirement benefits based on
3-17 the person's service credited in one system and who applies for
3-18 service or disability retirement from the other system is not
3-19 eligible to transfer service credit under this chapter. The
3-20 designated beneficiary, or the personal representative of the
3-21 estate, of a person who at the time of death was receiving benefits
3-22 based on the person's service credited in one system and held a
3-23 position included in the other system is not eligible to transfer
3-24 service credit under this chapter.
3-25 Sec. 805.003. PAYMENTS TO REINSTATE OR PURCHASE SERVICE
3-26 CREDIT. The cost of reinstating or purchasing service credit under
3-27 Section 805.002 is determined according to the statutes that govern
4-1 the reinstatement or purchase of the type of service credit in the
4-2 system in which it is to be reinstated or purchased. All payments
4-3 for service credit reinstated or purchased under Section 805.002
4-4 must be made before retirement or the first payment of a death
4-5 benefit annuity, as applicable.
4-6 Sec. 805.004. TRANSFER OF SERVICE CREDIT. (a) A person who
4-7 elects to transfer service credit under Section 805.002 shall
4-8 notify, in the manner required by the system to which the credit
4-9 will be transferred, the system of the election. The system shall
4-10 notify the other system of the election.
4-11 (b) The systems by rule or agreement shall determine the
4-12 manner in which the service credit is transferred.
4-13 (c) A transfer of service credit under this chapter cancels
4-14 service credit and, if applicable, membership in the system from
4-15 which it is transferred.
4-16 Sec. 805.005. APPLICABILITY OF PROPORTIONATE RETIREMENT
4-17 PROGRAM. An election to transfer service credit under Section
4-18 805.002 is an alternative to participation in the program provided
4-19 by Chapter 803, except that a person having service credit in the
4-20 employees retirement system, the teacher retirement system, and
4-21 another public retirement system participating in that program may
4-22 transfer service credit under this chapter, if eligible, and use
4-23 the combined service credit for purposes of the program provided by
4-24 Chapter 803.
4-25 Sec. 805.006. CREDITING OF TRANSFERRED SERVICE CREDIT.
4-26 Service credit transferred under this chapter is credited in the
4-27 system to which it is transferred according to rules of the teacher
5-1 retirement system determining the amount of service creditable.
5-2 Sec. 805.007. EFFECT OF TRANSFER OF SERVICE CREDIT. (a) A
5-3 person who transfers service credit under this chapter forfeits all
5-4 rights to benefits payable by the system from which it is
5-5 transferred and is not an annuitant of that system for any purpose,
5-6 including the payment of postretirement increases to annuitants of
5-7 that system.
5-8 (b) Service credit transferred under this chapter is
5-9 considered as if it had been granted for service performed under
5-10 the system to which it has been transferred and is used in
5-11 satisfying minimum service requirements for retirement and in
5-12 determining the amount of benefits that are based on the amount of
5-13 a person's service credit, except as provided by Section 805.006.
5-14 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS. (a) The
5-15 system from which a person's service credit is transferred under
5-16 this chapter shall transfer to the other system, at the time the
5-17 annuity based on the service credit becomes payable, an amount
5-18 equal to the portion of the actuarial value of the annuity that
5-19 represents the percentage of the total amount of the person's
5-20 service credited in both systems that was credited in the system
5-21 from which the credit is being transferred.
5-22 (b) The systems jointly by rule shall adopt actuarial tables
5-23 and investment assumptions to be used in computing actuarial values
5-24 under this section.
5-25 (c) For the purpose of computing an amount to be transferred
5-26 under this section, service credit in either system must be
5-27 considered as if it were credited under rules of the teacher
6-1 retirement system determining the amount of service creditable.
6-2 (d) An amount transferred under this section is payable from
6-3 amounts credited to the person's individual account and amounts
6-4 credited to the account in which the system places state
6-5 contributions. An amount received under this section shall be
6-6 deposited in the account from which the system receiving the amount
6-7 pays annuities.
6-8 (e) The system to which a transfer is made under this
6-9 section is responsible for paying the annuity for which the
6-10 transfer was made, including the entire amount of any increase in
6-11 the annuity granted after the transfer.
6-12 Sec. 805.009. RULES. In addition to the rules specifically
6-13 required by this chapter, a system may adopt other rules for the
6-14 administration of this chapter.
6-15 SECTION 2. Section 815.002, Government Code, is amended by
6-16 adding Subsection (d) to read as follows:
6-17 (d) Appointments to the board shall be made without regard
6-18 to the race, color, disability, sex, religion, age, or national
6-19 origin of the appointees.
6-20 SECTION 3. Subchapter A, Chapter 815, Government Code, is
6-21 amended by adding Section 815.0031 to read as follows:
6-22 Sec. 815.0031. INELIGIBILITY FOR BOARD AND OF CERTAIN
6-23 EMPLOYEES. (a) A person is not eligible for appointment or
6-24 election to the board if the person or the person's spouse:
6-25 (1) is employed by or participates in the management
6-26 of a business entity or other organization receiving funds from the
6-27 retirement system; or
7-1 (2) owns or controls, directly or indirectly, more
7-2 than a 10 percent interest in a business entity or other
7-3 organization receiving funds from the retirement system.
7-4 (b) An officer, employee, or paid consultant of a Texas
7-5 trade association in the field of insurance or investment may not
7-6 be a trustee or an employee of the retirement system who is exempt
7-7 from the state's position classification plan or is compensated at
7-8 or above the amount prescribed by the General Appropriations Act
7-9 for step 1, salary group 17, of the position classification salary
7-10 schedule.
7-11 (c) A person who is the spouse of an officer, manager, or
7-12 paid consultant of a Texas trade association in the field of
7-13 insurance or investment may not be a trustee and may not be an
7-14 employee of the retirement system who is exempt from the state's
7-15 position classification plan or is compensated at or above the
7-16 amount prescribed by the General Appropriations Act for step 1,
7-17 salary group 17, of the position classification salary schedule.
7-18 (d) For the purposes of this section, a Texas trade
7-19 association is a nonprofit, cooperative, and voluntarily joined
7-20 association of business or professional competitors in this state
7-21 designed to assist its members and its industry or profession in
7-22 dealing with mutual business or professional problems and in
7-23 promoting their common interest.
7-24 (e) A person may not serve as a trustee or act as the
7-25 general counsel to the board if the person is required to register
7-26 as a lobbyist under Chapter 305 because of the person's activities
7-27 for compensation on behalf of a business or an association related
8-1 to the operation of the board.
8-2 SECTION 4. Subchapter A, Chapter 815, Government Code, is
8-3 amended by adding Section 815.008 to read as follows:
8-4 Sec. 815.008. GROUNDS FOR REMOVAL OF TRUSTEE. (a) It is a
8-5 ground for removal from the board if a trustee:
8-6 (1) violates a prohibition established by
8-7 Section 815.0031;
8-8 (2) cannot discharge the person's duties for a
8-9 substantial part of the term for which the person is appointed or
8-10 elected because of illness or disability; or
8-11 (3) is absent from more than half of the regularly
8-12 scheduled board meetings that the person is eligible to attend
8-13 during a calendar year unless the absence is excused by majority
8-14 vote of the board.
8-15 (b) The validity of an action of the board is not affected
8-16 by the fact that it is taken when a ground for removal of a trustee
8-17 exists.
8-18 (c) If the executive director has knowledge that a potential
8-19 ground for removal exists, the executive director shall notify the
8-20 chairman of the board of the ground. The chairman shall then
8-21 notify the appropriate appointing officer, if any, that a potential
8-22 ground for removal exists.
8-23 SECTION 5. Subchapter B, Chapter 815, Government Code, is
8-24 amended by adding Section 815.111 to read as follows:
8-25 Sec. 815.111. MISCELLANEOUS BOARD DUTIES. (a) The board
8-26 shall provide to its trustees and employees, as often as necessary,
8-27 information regarding their qualification for office or employment
9-1 under this chapter and their responsibilities under applicable laws
9-2 relating to standards of conduct for state officers or employees.
9-3 (b) The board shall develop and implement policies that
9-4 clearly define the respective responsibilities of the board and the
9-5 staff of the retirement system.
9-6 (c) The board shall prepare information of interest to the
9-7 retirement system's members describing the functions of the system
9-8 and the system's procedures by which complaints are filed with and
9-9 resolved by the system. The system shall make the information
9-10 available to the system's members and appropriate state agencies.
9-11 (d) The board by rule shall establish methods by which
9-12 members are notified of the name, mailing address, and telephone
9-13 number of the retirement system for the purpose of directing
9-14 complaints to the system.
9-15 (e) The board shall develop and implement policies that
9-16 provide the public with a reasonable opportunity to appear before
9-17 the board and to speak on any issue under the jurisdiction of the
9-18 board.
9-19 (f) The board shall prepare and maintain a written plan that
9-20 describes how a person who does not speak English can be provided
9-21 reasonable access to the board's programs. The board shall also
9-22 comply with federal and state laws for program and facility
9-23 accessibility.
9-24 SECTION 6. Subchapter C, Chapter 815, Government Code, is
9-25 amended by adding Section 815.212 to read as follows:
9-26 Sec. 815.212. EMPLOYMENT PRACTICES. (a) The executive
9-27 director or the executive director's designee shall develop an
10-1 intra-agency career ladder program. The program shall require
10-2 intra-agency posting of all nonentry level positions concurrently
10-3 with any public posting.
10-4 (b) The executive director or the executive director's
10-5 designee shall develop a system of annual performance evaluations.
10-6 All merit pay for retirement system employees must be based on the
10-7 system established under this subsection.
10-8 (c) The executive director or the executive director's
10-9 designee shall prepare and maintain a written policy statement to
10-10 assure implementation of a program of equal employment opportunity
10-11 under which all personnel transactions are made without regard to
10-12 race, color, disability, sex, religion, age, or national origin.
10-13 The policy statement must include:
10-14 (1) personnel policies, including policies relating to
10-15 recruitment, evaluation, selection, appointment, training, and
10-16 promotion of personnel that are in compliance with requirements of
10-17 the Commmission on Human Rights Act (Article 5221k, Vernon's Texas
10-18 Civil Statutes);
10-19 (2) a comprehensive analysis of the retirement
10-20 system's work force that meets federal and state guidelines;
10-21 (3) procedures by which a determination can be made of
10-22 significant underuse in the retirement system's work force of all
10-23 persons for whom federal or state guidelines encourage a more
10-24 equitable balance; and
10-25 (4) reasonable methods to appropriately address those
10-26 areas of significant underuse.
10-27 (d) A policy statement prepared under Subsection (c) must
11-1 cover an annual period, be updated annually and reviewed by the
11-2 Commission on Human Rights for compliance with Subsection (c), and
11-3 be filed with the governor's office.
11-4 (e) The governor's office shall deliver a biennial report to
11-5 the legislature based on the information received under Subsection
11-6 (d). The report may be made separately or as a part of other
11-7 biennial reports made to the legislature.
11-8 SECTION 7. Sections 815.301(a) and (b), Government Code, are
11-9 amended to read as follows:
11-10 (a) The board of trustees shall:
11-11 (1) invest the assets of the retirement system<, other
11-12 than assets of the law enforcement and custodial officer
11-13 supplemental retirement fund,> as a single fund without distinction
11-14 as to their source; and
11-15 (2) hold securities purchased with the assets
11-16 described by Subsection (a)(1) collectively for the proportionate
11-17 benefit of:
11-18 (A) all accounts in the trust fund that are
11-19 listed in Section 815.310(b); and
11-20 (B) the law enforcement and custodial officer
11-21 supplemental retirement fund.
11-22 (b) The <Except for assets of the law enforcement and
11-23 custodial officer supplemental retirement fund, the> board of
11-24 trustees may, under the standard of care provided by Section
11-25 815.307, invest and reinvest any of the retirement system's assets
11-26 and may commingle assets of the trust fund and the law enforcement
11-27 and custodial officer supplemental retirement fund with the assets
12-1 of the Judicial Retirement System of Texas Plan Two for investment
12-2 purposes, as long as proportionate ownership records are maintained
12-3 and credited. Investments may include home office facilities,
12-4 including land, equipment, and office building, used in
12-5 administering the retirement system.
12-6 SECTION 8. Subchapter F, Chapter 815, Government Code, is
12-7 amended by adding Section 815.508 to read as follows:
12-8 Sec. 815.508. COMPLAINT FILES. (a) The retirement system
12-9 shall keep an information file about each complaint filed with the
12-10 system that the system has authority to resolve.
12-11 (b) If a written complaint is filed with the retirement
12-12 system that the system has authority to resolve, the system, at
12-13 least quarterly and until final disposition of the complaint, shall
12-14 notify the parties to the complaint of the status of the complaint
12-15 unless the notice would jeopardize an undercover investigation.
12-16 SECTION 9. Subchapter F, Chapter 815, Government Code, is
12-17 amended by adding Section 815.509 to read as follows:
12-18 Sec. 815.509. CONTRACTS WITH TEACHER RETIREMENT SYSTEM.
12-19 (a) The retirement system shall conduct with the Teacher
12-20 Retirement System of Texas an examination at least once every two
12-21 years of services that are performed by both systems for the
12-22 purpose of determining whether contracts between the systems under
12-23 which one system would perform services for both systems would
12-24 result in cost savings and efficiency, as well as elimination of
12-25 duplication of effort, without infringing on the respective
12-26 fiduciary duties of the systems.
12-27 (b) Each examination under this section should concentrate
13-1 on a particular set of similar functions selected by the systems
13-2 after consultation with the state auditor. The state auditor also
13-3 shall assist in an examination if so requested by either system.
13-4 (c) As a result of an examination, the systems may contract
13-5 for the performance by one system of functions required or
13-6 authorized by law of or for the other system, except that a
13-7 contract under this section may not provide for the performance of
13-8 a type of function by one system that that system is not authorized
13-9 to perform. A contract under this section may not provide for the
13-10 provision of services or resources that are required by Article
13-11 XVI, Section 21, of the Texas Constitution to be supplied under
13-12 contract given to the lowest responsible bidder. A contract under
13-13 this section is not subject to review under Chapter 771.
13-14 (d) Each system shall file with the Legislative Budget Board
13-15 and the budget division of the governor's office not later than
13-16 January 31 of each odd-numbered year a report stating the results
13-17 of all examinations conducted under this section in the preceding
13-18 two years and the fiscal effects of any contract made under this
13-19 section during that period.
13-20 SECTION 10. Subchapter A, Chapter 825, Government Code, is
13-21 amended by adding Sections 825.0031 and 825.0032 to read as
13-22 follows:
13-23 Sec. 825.0031. NONDISCRIMINATION IN APPOINTMENTS.
13-24 Appointments to the board shall be made without regard to the race,
13-25 color, disability, sex, religion, age, or national origin of the
13-26 appointees.
13-27 Sec. 825.0032. INELIGIBILITY FOR BOARD AND OF CERTAIN
14-1 EMPLOYEES. (a) A person is not eligible for appointment to the
14-2 board if the person or the person's spouse:
14-3 (1) is employed by or participates in the management
14-4 of a business entity or other organization receiving funds from the
14-5 retirement system; or
14-6 (2) owns or controls, directly or indirectly, more
14-7 than a 10 percent interest in a business entity or other
14-8 organization receiving funds from the retirement system.
14-9 (b) An officer, employee, or paid consultant of a Texas
14-10 trade association in the field of investment or insurance may not
14-11 be a trustee or an employee of the retirement system who is exempt
14-12 from the state's position classification plan or is compensated at
14-13 or above the amount prescribed by the General Appropriations Act
14-14 for step 1, salary group 17, of the position classification salary
14-15 schedule.
14-16 (c) A person who is the spouse of an officer, manager, or
14-17 paid consultant of a Texas trade association in the field of
14-18 investment or insurance may not be a trustee and may not be an
14-19 employee of the retirement system who is exempt from the state's
14-20 position classification plan or is compensated at or above the
14-21 amount prescribed by the General Appropriations Act for step 1,
14-22 salary group 17, of the position classification salary schedule.
14-23 (d) For the purposes of this section, a Texas trade
14-24 association is a nonprofit, cooperative, and voluntarily joined
14-25 association of business or professional competitors in this state
14-26 designed to assist its members and its industry or profession in
14-27 dealing with mutual business or professional problems and in
15-1 promoting their common interest.
15-2 (e) A person may not serve as a trustee or act as the
15-3 general counsel to the board if the person is required to register
15-4 as a lobbyist under Chapter 305 because of the person's activities
15-5 for compensation on behalf of a business or an association related
15-6 to the operation of the board.
15-7 SECTION 11. Subchapter A, Chapter 825, Government Code, is
15-8 amended by adding Section 825.010 to read as follows:
15-9 Sec. 825.010. GROUNDS FOR REMOVAL OF TRUSTEE. (a) It is a
15-10 ground for removal from the board if a trustee:
15-11 (1) violates a prohibition established by Section
15-12 825.0032;
15-13 (2) cannot discharge the person's duties for a
15-14 substantial part of the term for which the person is appointed
15-15 because of illness or disability; or
15-16 (3) is absent from more than half of the regularly
15-17 scheduled board meetings that the person is eligible to attend
15-18 during a calendar year unless the absence is excused by majority
15-19 vote of the board.
15-20 (b) The validity of an action of the board is not affected
15-21 by the fact that it is taken when a ground for removal of a trustee
15-22 exists.
15-23 (c) If the executive secretary has knowledge that a
15-24 potential ground for removal exists, the executive secretary shall
15-25 notify the chairman of the board of the ground. The chairman shall
15-26 then notify the appropriate appointing officer or body that a
15-27 potential ground for removal exists.
16-1 SECTION 12. Subchapter B, Chapter 825, Government Code, is
16-2 amended by adding Section 825.113 to read as follows:
16-3 Sec. 825.113. MISCELLANEOUS BOARD DUTIES. (a) The board
16-4 shall provide to its trustees and employees, as often as necessary,
16-5 information regarding their qualification for office or employment
16-6 under this chapter and their responsibilities under applicable laws
16-7 relating to standards of conduct for state officers or employees.
16-8 (b) The board shall develop and implement policies that
16-9 clearly define the respective responsibilities of the board and the
16-10 staff of the retirement system.
16-11 (c) The board shall prepare information of interest to the
16-12 retirement system's members describing the functions of the system
16-13 and the system's procedures by which complaints are filed with and
16-14 resolved by the system. The system shall make the information
16-15 available to the system's members and appropriate state agencies.
16-16 (d) The board by rule shall establish methods by which
16-17 members are notified of the name, mailing address, and telephone
16-18 number of the retirement system for the purpose of directing
16-19 complaints to the system.
16-20 (e) The board shall develop and implement policies that
16-21 provide the public with a reasonable opportunity to appear before
16-22 the board and to speak on any issue under the jurisdiction of the
16-23 board.
16-24 (f) The board shall prepare and maintain a written plan that
16-25 describes how a person who does not speak English can be provided
16-26 reasonable access to the board's programs. The board shall also
16-27 comply with federal and state laws for program and facility
17-1 accessibility.
17-2 SECTION 13. Subchapter C, Chapter 825, Government Code, is
17-3 amended by adding Section 825.211 to read as follows:
17-4 Sec. 825.211. EMPLOYMENT PRACTICES. (a) The executive
17-5 secretary or the executive secretary's designee shall develop an
17-6 intra-agency career ladder program. The program shall require
17-7 intra-agency posting of all nonentry level positions concurrently
17-8 with any public posting.
17-9 (b) The executive secretary or the executive secretary's
17-10 designee shall develop a system of annual performance evaluations.
17-11 All merit pay for system employees must be based on the system
17-12 established under this subsection.
17-13 (c) The executive secretary or the executive secretary's
17-14 designee shall prepare and maintain a written policy statement to
17-15 assure implementation of a program of equal employment opportunity
17-16 under which all personnel transactions are made without regard to
17-17 race, color, disability, sex, religion, age, or national origin.
17-18 The policy statement must include:
17-19 (1) personnel policies, including policies relating to
17-20 recruitment, evaluation, selection, appointment, training, and
17-21 promotion of personnel that are in compliance with requirements of
17-22 the Commission on Human Rights Act (Article 5221k, Vernon's Texas
17-23 Civil Statutes);
17-24 (2) a comprehensive analysis of the retirement
17-25 system's work force that meets federal and state guidelines;
17-26 (3) procedures by which a determination can be made of
17-27 significant underuse in the retirement system's work force of all
18-1 persons for whom federal or state guidelines encourage a more
18-2 equitable balance; and
18-3 (4) reasonable methods to appropriately address those
18-4 areas of significant underuse.
18-5 (d) A policy statement prepared under Subsection (c) must
18-6 cover an annual period, be updated annually and reviewed by the
18-7 Commission on Human Rights for compliance with Subsection (c), and
18-8 be filed with the governor's office.
18-9 (e) The governor's office shall deliver a biennial report to
18-10 the legislature based on the information received under Subsection
18-11 (d). The report may be made separately or as a part of other
18-12 biennial reports made to the legislature.
18-13 SECTION 14. Subchapter F, Chapter 825, Government Code, is
18-14 amended by adding Section 825.508 to read as follows:
18-15 Sec. 825.508. COMPLAINT FILES. (a) The retirement system
18-16 shall keep an information file about each complaint filed with the
18-17 system that the system has authority to resolve.
18-18 (b) If a written complaint is filed with the retirement
18-19 system that the system has authority to resolve, the system, at
18-20 least quarterly and until final disposition of the complaint, shall
18-21 notify the parties to the complaint of the status of the complaint
18-22 unless the notice would jeopardize an undercover investigation.
18-23 SECTION 15. Subchapter F, Chapter 825, Government Code, is
18-24 amended by adding Section 825.509 to read as follows:
18-25 Sec. 825.509. CONTRACTS WITH EMPLOYEES RETIREMENT SYSTEM.
18-26 (a) The retirement system shall conduct with the Employees
18-27 Retirement System of Texas an examination at the times and in the
19-1 manner provided by Section 815.509 for the purpose of determining
19-2 whether contracts between the systems under which one system would
19-3 perform services for both systems would result in cost savings and
19-4 efficiency, as well as elimination of duplication of effort,
19-5 without infringing on the respective fiduciary duties of the
19-6 systems.
19-7 (b) As a result of an examination, the retirement system may
19-8 contract as provided by Section 815.509. The retirement system
19-9 shall file reports as provided by that section.
19-10 SECTION 16. Section 840.301(a), Government Code, is amended
19-11 to read as follows:
19-12 (a) The board of trustees may, under the standard of care
19-13 provided by Section 840.303, invest and reinvest the retirement
19-14 system's assets and may commingle assets of the trust fund with the
19-15 assets of the Employees Retirement System of Texas for investment
19-16 purposes, as long as proportionate ownership records are maintained
19-17 and credited.
19-18 SECTION 17. Section 13.913(a), Education Code, is amended
19-19 to read as follows:
19-20 (a) Each district shall make available to its employees
19-21 group health coverage provided by a risk pool established by one or
19-22 more school districts under Chapter 172, Local Government Code, or
19-23 under a policy of insurance or group contract issued by an insurer,
19-24 a company subject to Chapter 20, Insurance Code, or a health
19-25 maintenance organization under the Texas Health Maintenance
19-26 Organization Act (Chapter 20A, Vernon's Texas Insurance Code). The
19-27 coverage must meet the substantive coverage requirements of Article
20-1 3.51-6, Insurance Code, and any other law applicable to group
20-2 health insurance policies or contracts issued in this state and
20-3 must be comparable to the basic health coverage provided under the
20-4 Texas Employees Uniform Group Insurance Benefits Act (Article
20-5 3.50-2, Vernon's Texas Insurance Code). The cost of the coverage
20-6 may be shared by the employees and the district. Each district
20-7 shall certify the district's compliance with this subsection to the
20-8 executive secretary <director> of the Teacher <Employees>
20-9 Retirement System of Texas in the manner required by the board of
20-10 trustees of the Teacher <Employees> Retirement System of Texas.
20-11 SECTION 18. Section 3(a)(5)(A), Texas Employees Uniform
20-12 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
20-13 Insurance Code), as amended by Chapters 242 and 391, Acts of the
20-14 72nd Legislature, Regular Session, 1991, is amended to read as
20-15 follows:
20-16 (A) "Employee" <"State-employee"> shall mean any
20-17 appointive or elective state officer or employee in the service of
20-18 the State of Texas, including an employee of an institution of
20-19 higher education:
20-20 (i) who is retired or retires and is an
20-21 annuitant under the jurisdiction of the Employees Retirement System
20-22 of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
20-23 Government Code, who is retired or retires and is an annuitant
20-24 under the jurisdiction of the Teacher Retirement System of Texas,
20-25 pursuant to Subtitle C, Title 8, Government Code, whose last
20-26 employment with the state prior to retirement was as an employee of
20-27 the Teacher Retirement System of Texas, school districts
21-1 established within state eleemosynary institutions, the Texas
21-2 Rehabilitation Commission, the Central Education Agency, the Texas
21-3 Higher Education Coordinating Board, or an institution of higher
21-4 education, or who is retired or retires and is an annuitant under
21-5 the optional retirement program established by Chapter 830,
21-6 Government Code, if the person's last state employment before
21-7 retirement, including employment by a public community/junior
21-8 college, was as an officer or employee of the Texas Higher
21-9 Education Coordinating Board, or an institution of higher
21-10 education, and if the person either:
21-11 (a) would have been eligible to
21-12 retire and receive a service retirement annuity from the Teacher
21-13 Retirement System of Texas had the person not elected to
21-14 participate in the optional retirement program; or
21-15 (b) is disabled;
21-16 (ii) who receives his compensation for
21-17 services rendered to the State of Texas on a warrant issued
21-18 pursuant to a payroll certified by a department or by an elected or
21-19 duly appointed officer of this state;
21-20 (iii) who receives payment for the
21-21 performance of personal services on a warrant issued pursuant to a
21-22 payroll certified by a department and drawn by the State
21-23 Comptroller of Public Accounts upon the State Treasurer against
21-24 appropriations made by the Texas Legislature from any state funds
21-25 or against any trust funds held by the State Treasurer or who is
21-26 paid from funds of an official budget of a state department, rather
21-27 than from funds of the General Appropriations Act;
22-1 (iv) who is appointed, subject to
22-2 confirmation of the senate, as a member of a board or commission
22-3 with administrative responsibility over a statutory agency having
22-4 statewide jurisdiction whose employees are covered by this Act;
22-5 (v) who receives compensation for services
22-6 rendered to an institution of higher education on a warrant or
22-7 check issued pursuant to a payroll certified by an institution of
22-8 higher education or by an elected or duly appointed officer of this
22-9 state, and who is eligible for participation in the Teacher
22-10 Retirement System of Texas; or
22-11 (vi) who receives compensation for
22-12 services rendered to an institution of higher education as provided
22-13 by this subdivision but is not permitted to be a member of the
22-14 Teacher Retirement System of Texas because the person is solely
22-15 employed by an institution of higher education that as a condition
22-16 of employment requires the person to be enrolled as a student in an
22-17 institution of higher education in graduate-level courses and who
22-18 is employed by the institution at least 20 hours a week.
22-19 SECTION 19. Section 3(a), Texas Employees Uniform Group
22-20 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
22-21 Code), is amended by amending Subdivisions (6), (14), and (15) to
22-22 read as follows:
22-23 (6) "Employer" shall mean the State of Texas and<,>
22-24 all its departments<, and any participating school district>.
22-25 (14) "Part-time employee" shall mean, for purposes of
22-26 this Act, an employee designated by his employing agency as working
22-27 less than 20 hours per week. A part-time <state> employee shall
23-1 receive the benefits of one-half the amount of the state's
23-2 contribution received by full-time employees.
23-3 (15) "Full-time employee" shall mean, for purposes of
23-4 this Act, an employee designated by his employing agency as working
23-5 20 or more hours per week. A full-time <state> employee shall
23-6 receive the benefits of a full state contribution for coverage
23-7 under this Act.
23-8 SECTION 20. Section 5(e), Texas Employees Uniform Group
23-9 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
23-10 Code), as amended by Chapters 391 and 850, Acts of the 72nd
23-11 Legislature, Regular Session, 1991, is amended to read as follows:
23-12 (e) The trustee is authorized to select, contract for, and
23-13 make available to eligible employees and annuitants in a specific
23-14 area of the state, services performed by health maintenance
23-15 organizations which are approved by the federal government or the
23-16 State of Texas to offer health care services in that area.
23-17 Eligible employees and annuitants may participate in a selected
23-18 health maintenance organization in lieu of participation in the
23-19 health insurance benefits in the Employees Uniform Group Insurance
23-20 Program<, and the employer contributions provided by Section 14(a)
23-21 or (b) of this Act for health care coverage shall be paid to the
23-22 selected health maintenance organizations on behalf of the
23-23 participants>.
23-24 SECTION 21. Section 13B(a), Texas Employees Uniform Group
23-25 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
23-26 Code), is amended to read as follows:
23-27 (a) The trustee may study the feasibility of establishing a
24-1 cafeteria plan and may design, develop, adopt, implement, and
24-2 administer a cafeteria plan if the trustee determines that the
24-3 establishment of a cafeteria plan is feasible, would be beneficial
24-4 to the state and to the <state> employees who would be eligible to
24-5 participate in the cafeteria plan, and would not adversely affect
24-6 the insurance program established under this Act. The trustee may
24-7 include in the cafeteria plan any benefit that may be included in a
24-8 cafeteria plan under federal law.
24-9 SECTION 22. Section 14, Texas Employees Uniform Group
24-10 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
24-11 Code), as amended by Chapters 391 and 850, Acts of the 72nd
24-12 Legislature, Regular Session, 1991, is amended to read as follows:
24-13 Sec. 14. Payment of Contributions. (a) The trustee shall
24-14 use the amount appropriated for employer contributions in
24-15 accordance with Section 15 of this Act to fund the basic coverage.
24-16 The trustee may equitably allocate to each health benefits plan the
24-17 employer contributions that would be required to fund basic health
24-18 coverage for participants in the plans to the extent funds are
24-19 available. In allocating the employer contributions among plans,
24-20 the trustee shall consider the relevant risk characteristics of
24-21 each plan's enrollment, including demographic variations in the use
24-22 and cost of health care and the prevailing cost patterns in the
24-23 area in which the plan operates. The allocation must be reasonable
24-24 and set in a manner which assures employees a fair choice among
24-25 health benefit plans providing a basic plan. The contribution set
24-26 for each employee shall be within the total amount appropriated in
24-27 the General Appropriations Act.
25-1 (b) Any employer contributions remaining after the basic
25-2 coverage has been funded may be allocated by the trustee to fund
25-3 optional coverages in any manner the trustee determines is
25-4 appropriate. <Each participating school district shall contribute,
25-5 for each school district employee covered by the program, an amount
25-6 equal to the employee only cost of the plans of group coverages
25-7 authorized by the trustee for school district employees, provided
25-8 that the school district's contribution may not exceed the amount
25-9 contributed for each state employee in accordance with Subsection
25-10 (a) of this section. If the cost of the plan authorized by the
25-11 trustee for school district employees exceeds the amount of the
25-12 district's contribution, the district shall deduct from the monthly
25-13 compensation of the employee an amount sufficient to pay the amount
25-14 of the premiums not covered by the district's contribution.>
25-15 (c) The trustee may not allocate any employer contributions
25-16 to fund voluntary coverages. Voluntary coverages must be funded
25-17 solely by employee contributions. If an employee or annuitant
25-18 refuses in writing the coverages, benefits, or services provided by
25-19 this Act by a statement in writing satisfactory to the trustee,
25-20 then in no event shall the State of Texas or<,> the employee's
25-21 department<, or the participating school district> make any
25-22 contribution to the cost of any other coverages, services, or
25-23 benefits on such employee or annuitant.
25-24 (d) If the cost of the basic coverage exceeds the amount of
25-25 employer contributions allocated to fund the basic coverage, the
25-26 state shall deduct from or reduce the monthly compensation of the
25-27 employee and shall deduct from the retirement benefits of the
26-1 annuitant an amount sufficient to pay the cost of the basic
26-2 coverage. If an employee elects to participate in the cafeteria
26-3 plan, he shall execute a salary reduction agreement under which his
26-4 monthly compensation will be reduced in an amount that is equal to
26-5 the difference between the amount contributed for the coverages by
26-6 the State of Texas or<,> the employing department<, or the
26-7 participating school district> and the cost of the coverages for
26-8 which the employee is eligible to pay under the cafeteria plan. An
26-9 employee who executes a salary reduction agreement for insurance
26-10 coverages included in the cafeteria plan is considered to have
26-11 elected to participate in the cafeteria plan and agreed to a salary
26-12 reduction for the insurance coverages for subsequent plan years
26-13 unless the participant, during an annual enrollment period
26-14 specified by the trustee, explicitly elects not to participate for
26-15 the next plan year in the insurance coverages. After electing not
26-16 to participate in insurance coverages included in the cafeteria
26-17 plan, an employee must, to reestablish participation for subsequent
26-18 plan years in insurance coverages included in the cafeteria plan,
26-19 execute a new salary reduction agreement. A salary reduction
26-20 agreement for other benefits of the cafeteria plan must be executed
26-21 annually, during the annual enrollment period specified by the
26-22 trustee, for each plan year. The employee shall pay any remaining
26-23 portion of the cost of benefits that is not covered by the state's
26-24 or<,> department's<, or district's> contributions and the salary
26-25 reductions under the cafeteria plan by executing a payroll
26-26 deduction agreement.
26-27 (e) The trustee shall apply the amount of any employer
27-1 contribution allocated to fund optional coverages to the excess of
27-2 the cost of the basic and optional coverages for which the employee
27-3 or annuitant has applied over the basic coverage contribution.
27-4 Except as provided by Subsection (h) of this section, if an
27-5 employee or annuitant applies for basic and optional coverages for
27-6 which the cost exceeds the contributions for those coverages under
27-7 this Act, the employee or annuitant shall authorize in writing in a
27-8 form satisfactory to the trustee a deduction from the employee's or
27-9 annuitant's monthly compensation or annuity equal to the difference
27-10 between the cost of basic and optional coverages for which the
27-11 employee or annuitant has applied and the employer contributions
27-12 for basic and optional coverage.
27-13 (f) Except as provided by Subsection (h) of this section, if
27-14 an employee or annuitant applies for voluntary coverages, the
27-15 employee shall authorize in writing in a form satisfactory to the
27-16 trustee a deduction from the employee's monthly compensation or
27-17 annuity equal to the cost of the voluntary coverages.
27-18 (g) If an employee or annuitant refuses the coverages or
27-19 benefits provided under this Act in writing in a form satisfactory
27-20 to the trustee, the state and the employee's department may not
27-21 make any contribution to the cost of any coverages or benefits for
27-22 the employee or annuitant.
27-23 (h) If an employee elects to participate in the cafeteria
27-24 plan, the employee must execute a salary reduction agreement under
27-25 which the employee's monthly compensation will be reduced in an
27-26 amount that is equal to the difference between the employer
27-27 contributions for basic and optional coverages and the cost of the
28-1 cafeteria plan coverages identified by the trustee as comparable to
28-2 the basic and optional coverages for which the employee is
28-3 eligible. The salary reduction agreement must also provide for an
28-4 additional reduction in the employee's compensation equal to the
28-5 cost of voluntary coverages for which the employee has applied. An
28-6 employee who executes a salary reduction agreement for insurance
28-7 coverage included in the cafeteria plan has elected to participate
28-8 in the cafeteria plan and agreed to a salary reduction for the
28-9 insurance coverages for subsequent plan years unless the
28-10 participant, during an annual enrollment period specified by the
28-11 trustee, elects in writing not to participate for the next plan
28-12 year in the insurance coverages. An employee who has elected not
28-13 to participate in the cafeteria plan insurance coverages may
28-14 re-enroll by executing a new salary reduction agreement during a
28-15 subsequent annual enrollment period. A salary reduction agreement
28-16 for cafeteria plan benefits other than insurance coverages must be
28-17 executed annually, during the annual enrollment period. The
28-18 employee shall pay any remaining portion of the cost of benefits
28-19 that is not covered by the contributions for basic and optional
28-20 coverages and the salary reduction under the cafeteria plan by
28-21 executing a payroll deduction agreement.
28-22 SECTION 23. Sections 16(a) and (b), Texas Employees Uniform
28-23 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
28-24 Insurance Code), are amended to read as follows:
28-25 (a) There is hereby created with the treasury of the State
28-26 of Texas an Employees Life, Accident, and Health Insurance and
28-27 Benefits Fund which shall be administered by the trustee. The
29-1 <Except as provided by Subsection (d) of this section, the>
29-2 contributions of employees, annuitants, <participating school
29-3 districts,> and the state provided for under this Act shall be paid
29-4 into the fund. The fund is available:
29-5 (1) without fiscal year limitation for all payments
29-6 for any coverages provided for under this Act; and
29-7 (2) to pay expenses for administering this Act within
29-8 the limitations that may be specified annually by the legislature.
29-9 (b) Portions <Except as provided by Subsection (d) of this
29-10 section, portions> of the contributions made by employees,
29-11 annuitants, <participating school districts,> and the state shall
29-12 be regularly set aside in the fund as follows: a percentage
29-13 determined by the trustee to be reasonably adequate to pay the
29-14 administrative expenses made available by Subsection (a) of this
29-15 section. The trustee, from time to time and in amounts it
29-16 considers appropriate, may transfer unused funds for administrative
29-17 expenses to the contingency reserves to be used by the trustee only
29-18 for charges, claims, costs, and expenses under the program.
29-19 SECTION 24. Section 17(c), Texas Employees Uniform Group
29-20 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
29-21 Code), is amended to read as follows:
29-22 (c) Each state department <and each participating school
29-23 district> shall keep such records, make such certifications, and
29-24 furnish the trustee with such information and reports as may be
29-25 necessary to enable the trustee to carry out its functions under
29-26 this Act.
29-27 SECTION 25. Section 18(a), Texas Employees Uniform Group
30-1 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
30-2 Code), as amended by Chapters 242 and 391, Acts of the 72nd
30-3 Legislature, Regular Session, 1991, is amended to read as follows:
30-4 (a) The group benefits advisory committee is composed of 25
30-5 voting members as provided by this section. The office of the
30-6 attorney general, the office of the state treasurer, the office of
30-7 the comptroller, the Railroad Commission of Texas, and the
30-8 Department of Agriculture are entitled to be represented by one
30-9 member each on the committee, who may be appointed by the governing
30-10 body of the state agency or elected by and from the employees of
30-11 the agency, as determined by rule by the governing body of the
30-12 agency. One employee shall be elected from each of the remaining
30-13 seven largest state agencies that are governed by appointed
30-14 officers by and from the employees of those agencies. One
30-15 nonvoting member shall be the executive director of the Employees
30-16 Retirement System of Texas. One member shall be an expert in
30-17 employee benefit issues from the private sector, appointed by the
30-18 governor. One member shall be an expert in employee benefits
30-19 issues from the private sector, appointed by the lieutenant
30-20 governor. One member shall be a retired state employee appointed
30-21 by the trustee. One member shall be a state employee of a state
30-22 agency other than one of the seven largest state agencies,
30-23 appointed by the trustee. Two members shall be employees of
30-24 institutions of higher education appointed by the Texas Higher
30-25 Education Coordinating Board. Five members shall be employees of
30-26 institutions of higher education elected by and from the
30-27 institutions of higher education, but not more than one employee
31-1 shall be from any one institution. The remaining members shall be
31-2 elected by and from the employees of the other state agencies,
31-3 excluding institutions of higher education, <and from the employees
31-4 of participating school districts> in a manner consonant with the
31-5 election for membership to the board of the Employees Retirement
31-6 System of Texas, but not more than one employee shall be from any
31-7 one agency <or district>. The members shall elect a presiding
31-8 officer from their membership to serve a one-year term.
31-9 SECTION 26. Subchapter E, Chapter 3, Insurance Code, is
31-10 amended by adding Article 3.50-7 to read as follows:
31-11 Art. 3.50-7. SCHOOL DISTRICT EMPLOYEES UNIFORM GROUP
31-12 INSURANCE ACT
31-13 Sec. 1. SHORT TITLE. This article may be cited as the
31-14 School District Employees Uniform Group Insurance Act.
31-15 Sec. 2. DEFINITIONS. In this article:
31-16 (1) "Administering firm" means any firm designated by
31-17 the trustee to administer any coverages, services, benefits, or
31-18 requirements under this article and the trustee's rules adopted
31-19 under this article.
31-20 (2) "Basic coverage" means the programs of group
31-21 coverages determined by the trustee in which every full-time
31-22 employee participates automatically unless participation is
31-23 specifically waived.
31-24 (3) "Cafeteria plan" means a plan as defined and
31-25 authorized by Section 125, Internal Revenue Code of 1986 (26 U.S.C.
31-26 Section 125).
31-27 (4) "Employee" means a participating member of the
32-1 Teacher Retirement System who is employed by a participating school
32-2 district and who is not covered by a group insurance program under
32-3 the Texas Employees Uniform Group Insurance Benefits Act (Article
32-4 3.50-2, Vernon's Texas Insurance Code) or Chapter 32, Acts of the
32-5 65th Legislature, Regular Session, 1977 (Article 3.50-3, Vernon's
32-6 Texas Insurance Code), but does not include a person performing
32-7 personal services for a school district as an independent
32-8 contractor.
32-9 (5) "Employer" means a participating school district.
32-10 (6) "Health benefits plan" means any group policy or
32-11 contract, medical, dental, or hospital service agreement,
32-12 membership or subscription contract, salary continuation plan,
32-13 health maintenance organization agreement, preferred provider
32-14 arrangement, or any similar group arrangement or any combination of
32-15 those policies, plans, contracts, agreements, or arrangements
32-16 provided for the purpose of providing, paying for, or reimbursing
32-17 expenses for health care services, including comparable health care
32-18 services for employees who rely solely on spiritual means through
32-19 prayer for healing in accordance with the teaching of a recognized
32-20 church or denomination.
32-21 (7) "Participating school district" means a public
32-22 school district that elects under Section 4 of this article to
32-23 participate in the program provided under this article.
32-24 (8) "Trustee" means the Teacher Retirement System of
32-25 Texas.
32-26 Sec. 3. ADMINISTRATION. (a) The administration and
32-27 implementation of this article are vested solely in the trustee.
33-1 (b) The trustee may hire and compensate employees.
33-2 (c) The trustee may, on a competitive bid basis, contract
33-3 with a qualified, experienced firm of group insurance specialists
33-4 or an administering firm who will act for the trustee in a capacity
33-5 as independent administrators and managers of the programs
33-6 authorized under this article. The independent administrator
33-7 selected by the trustee shall assist the trustee to ensure the
33-8 proper administration of this article and the coverages, services,
33-9 and benefits provided for or authorized by this article and shall
33-10 be paid by the trustee.
33-11 (d) The trustee may enter into interagency contracts with
33-12 any agency of the state, including the Employees Retirement System
33-13 of Texas, for the purpose of assistance in implementing the
33-14 programs provided by this article.
33-15 (e) The trustee may adopt rules to administer this article.
33-16 Sec. 4. PARTICIPATION IN PROGRAM. (a) A public school
33-17 district may elect to participate in the programs provided under
33-18 this article. A district that elects to participate must accept
33-19 the schedule of costs adopted by the trustee.
33-20 (b) The trustee by rule may provide for a minimum period of
33-21 participation applicable to each school district that makes an
33-22 election under this section.
33-23 (c) The trustee may assess a participating school district a
33-24 fee to cover administrative costs if state funds are not
33-25 appropriated for this purpose.
33-26 Sec. 5. GROUP COVERAGES. (a) The trustee shall establish
33-27 plans of group coverages for employees of participating school
34-1 districts. The coverages may include group life coverages, health
34-2 benefit plans, accidental death and dismemberment coverages,
34-3 coverages against short-term or long-term loss of salary, and other
34-4 coverages considered advisable by the trustee. Comparable plans of
34-5 each type of coverage established must be offered to employees of
34-6 all participating school districts.
34-7 (b) The trustee by rule may define the basic coverage in
34-8 which each full-time employee participates unless specifically
34-9 waived. Basic coverage must include a health benefits plan. The
34-10 trustee also by rule may define optional coverage for which the
34-11 trustee may make available employer contributions and voluntary
34-12 coverage for which the employee is responsible for all
34-13 contributions.
34-14 (c) The trustee may provide a cafeteria plan for employees
34-15 of participating school districts.
34-16 Sec. 6. PAYMENT OF CONTRIBUTIONS. (a) Each participating
34-17 school district shall contribute for each district employee covered
34-18 by the program an amount equal to the cost for the employee only of
34-19 the plans of group coverages authorized by the trustee for school
34-20 district employees, except that the school district's contribution
34-21 may not exceed the amount contributed for each state employee by
34-22 the state under the Texas Employees Uniform Group Insurance
34-23 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code).
34-24 (b) Each employee covered by the program shall pay that
34-25 portion of the cost of coverage selected by the employee that
34-26 exceeds the amount of employer contributions.
34-27 (c) Each person who is employed full-time by a public school
35-1 district in this state, including employees within the meaning of
35-2 this article, shall pay an annual fee of $10 to the trustee for the
35-3 support of the program provided by this article. The fee expires
35-4 when the trustee determines that the contingency reserves in the
35-5 fund are sufficient to support the program. The trustee shall file
35-6 a determination made under this subsection with the secretary of
35-7 state for publication in the Texas Register.
35-8 Sec. 7. FUND. (a) Contributions and fees collected under
35-9 Section 6 of this article shall be deposited in the school district
35-10 employees uniform group insurance trust fund. The fund is created
35-11 outside the state treasury. The state treasurer is custodian of
35-12 the fund. The trustee may use amounts in the fund only to provide
35-13 group coverages under this article and to pay the expenses of
35-14 administering the program.
35-15 (b) The trustee may invest assets of the fund in the manner
35-16 provided by Article XVI, Section 67(a)(3), of the Texas
35-17 Constitution.
35-18 SECTION 27. The following provisions are repealed:
35-19 (1) Section 815.305, Government Code;
35-20 (2) Sections 3(a)(19), (20), (21), and (22), Texas
35-21 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
35-22 Vernon's Texas Insurance Code), as added by Chapter 391, Acts of
35-23 the 72nd Legislature, Regular Session, 1991;
35-24 (3) Section 3A, Texas Employees Uniform Group
35-25 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
35-26 Code), as added by Chapter 391, Acts of the 72nd Legislature,
35-27 Regular Session, 1991;
36-1 (4) Section 13C, Texas Employees Uniform Group
36-2 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
36-3 Code);
36-4 (5) Section 15(e), Texas Employees Uniform Group
36-5 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
36-6 Code); and
36-7 (6) Section 16(d), Texas Employees Uniform Group
36-8 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
36-9 Code).
36-10 SECTION 28. (a) Chapter 805, Government Code, as added by
36-11 this Act, applies only to retirements and deaths that occur on or
36-12 after August 31, 1993.
36-13 (b) The Teacher Retirement System of Texas shall implement
36-14 the program provided by Article 3.50-7, Insurance Code, as added by
36-15 this Act, not later than September 1, 1994. The fee required by
36-16 Section 6(c) of that article, as added by this Act, becomes payable
36-17 in the fiscal year beginning September 1, 1993.
36-18 SECTION 29. (a) Except as provided by Subsection (b) of
36-19 this section, this Act takes effect September 1, 1993.
36-20 (b) This section, Section 1, and Section 28(a) of this Act
36-21 take effect immediately.
36-22 SECTION 30. The importance of this legislation and the
36-23 crowded condition of the calendars in both houses create an
36-24 emergency and an imperative public necessity that the
36-25 constitutional rule requiring bills to be read on three several
36-26 days in each house be suspended, and this rule is hereby suspended,
36-27 and that this Act take effect and be in force according to its
37-1 terms, and it is so enacted.