73R11097 GCH-F
By Barrientos, Lucio S.B. No. 1181
Substitute the following for S.B. No. 1181:
By Marchant C.S.S.B. No. 1181
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of and systems and programs under
1-3 the Employees Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 803.202, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 803.202. SERVICE IN CERTAIN RETIREMENT SYSTEMS.
1-8 (a) The board of trustees of the Employees Retirement System of
1-9 Texas by rule may:
1-10 (1) consider the classes of service in the Employees
1-11 Retirement System of Texas as if they were, for purposes of this
1-12 chapter, classes in separate statewide retirement systems; or
1-13 (2) permit a person who is retiring exclusively from
1-14 retirement systems administered by the board to use the shortest
1-15 length-of-service requirement provided for retirement in any class
1-16 in which the person has service credit.
1-17 (b) A member of a retirement system administered by the
1-18 board of trustees of the Employees Retirement System of Texas may
1-19 reestablish service credit previously canceled in another
1-20 retirement system administered by the board if the member holds a
1-21 position included in the system of which the person is a member and
1-22 has held the position for at least 12 months. The method of
1-23 reestablishment and the amount to be deposited are as provided by
1-24 the applicable law providing for reestablishment of service credit
2-1 generally in the particular retirement system.
2-2 SECTION 2. Subtitle A, Title 8, Government Code, is amended
2-3 by adding Chapter 805 to read as follows:
2-4 CHAPTER 805. CREDIT TRANSFER BETWEEN EMPLOYEES RETIREMENT
2-5 SYSTEM OF TEXAS AND TEACHER RETIREMENT SYSTEM OF TEXAS
2-6 Sec. 805.001. DEFINITIONS. In this chapter:
2-7 (1) "Employees retirement system" means the Employees
2-8 Retirement System of Texas.
2-9 (2) "Member" means a person having membership in the
2-10 employees retirement system or the teacher retirement system under
2-11 statutes and rules governing membership in the respective systems.
2-12 (3) "Service credit" has the meaning assigned, as
2-13 applicable, by Section 811.001 or Section 821.001.
2-14 (4) "System" means the employees retirement system or
2-15 the teacher retirement system.
2-16 (5) "Teacher retirement system" means the Teacher
2-17 Retirement System of Texas.
2-18 Sec. 805.002. ELIGIBILITY TO TRANSFER SERVICE CREDIT.
2-19 (a) A member of both the employees retirement system and the
2-20 teacher retirement system who applies for service or disability
2-21 retirement from either system may transfer to that system service
2-22 credit established in the other system if the member has at least
2-23 three years of service credit in the system from which the member
2-24 is retiring.
2-25 (b) A member of both the employees retirement system and the
2-26 teacher retirement system who has less than three years of service
2-27 credit in the system in which the person most recently received
3-1 service credit may, at the time the person applies for service or
3-2 disability retirement from the other system, transfer service
3-3 credit to that system from the system in which the person most
3-4 recently received service credit.
3-5 (c) Except as provided by Subsections (e) and (f), a member
3-6 of the employees retirement system or the teacher retirement system
3-7 who formerly was a member of the other system may reinstate or
3-8 purchase service credit in the other system for the purpose of
3-9 making a transfer under Subsection (a) if the member has at least
3-10 three years of service credit in the system in which the person
3-11 currently is a member.
3-12 (d) Except as provided by Subsections (e) and (f), the
3-13 designated beneficiary of a member of the employees retirement
3-14 system or the teacher retirement system who dies while holding a
3-15 position included in the membership of the system may make a
3-16 transfer under Subsection (a) and a reinstatement or purchase under
3-17 Subsection (c) if the deceased member had at least three years of
3-18 service credit in the system in which the member was performing
3-19 service at the time of death. The designated beneficiary may make
3-20 a transfer under Subsection (b) if the deceased member had less
3-21 than three years of service credit in the system in which the
3-22 member was performing service at the time of death. If a member is
3-23 not survived by a designated beneficiary, the personal
3-24 representative of the member's estate has the same right under this
3-25 subsection as a designated beneficiary.
3-26 (e) Service credit that is canceled by a termination of
3-27 membership that occurs after August 31, 1993, may be reinstated and
4-1 other service purchased only by a member of the system in which the
4-2 service is creditable who meets the general requirements for
4-3 reinstatement or purchase of service credit in that system.
4-4 (f) A person who is receiving retirement benefits based on
4-5 the person's service credited in one system and who applies for
4-6 service or disability retirement from the other system is not
4-7 eligible to transfer service credit under this chapter. The
4-8 designated beneficiary, or the personal representative of the
4-9 estate, of a person who at the time of death was receiving benefits
4-10 based on the person's service credited in one system and who held a
4-11 position included in the other system is not eligible to transfer
4-12 service credit under this chapter.
4-13 Sec. 805.003. PAYMENTS TO REINSTATE OR PURCHASE SERVICE
4-14 CREDIT. The cost of reinstating or purchasing service credit under
4-15 Section 805.002 is determined according to the statutes that govern
4-16 the reinstatement or purchase of the type of service credit in the
4-17 system in which it is to be reinstated or purchased. All payments
4-18 for service credit reinstated or purchased under Section 805.002
4-19 must be made before retirement or the first payment of a death
4-20 benefit annuity, as applicable.
4-21 Sec. 805.004. TRANSFER OF SERVICE CREDIT. (a) A person who
4-22 elects to transfer service credit under Section 805.002 shall
4-23 notify, in the manner required by the system to which the credit
4-24 will be transferred, the system of the election. The system shall
4-25 notify the other system of the election.
4-26 (b) The systems by rule or agreement shall determine the
4-27 manner in which the service credit is transferred.
5-1 (c) A transfer of service credit under this chapter cancels
5-2 service credit and, if applicable, membership in the system from
5-3 which it is transferred.
5-4 Sec. 805.005. APPLICABILITY OF PROPORTIONATE RETIREMENT
5-5 PROGRAM. An election to transfer service credit under Section
5-6 805.002 is an alternative to participation in the program provided
5-7 by Chapter 803, except that a person having service credit in the
5-8 employees retirement system, the teacher retirement system, and
5-9 another public retirement system participating in that program may
5-10 transfer service credit under this chapter, if eligible, and use
5-11 the combined service credit for purposes of the program provided by
5-12 Chapter 803.
5-13 Sec. 805.006. CREDITING OF TRANSFERRED SERVICE CREDIT;
5-14 REFUND. (a) Except as provided by Subsections (b) and (c),
5-15 service credit transferred under this chapter is credited in the
5-16 system to which it is transferred according to rules of the teacher
5-17 retirement system determining the amount of service creditable.
5-18 (b) Not more than one month of service credit may be granted
5-19 for service during that month.
5-20 (c) A person who transfers service credit under this chapter
5-21 may not receive service credit for all military service performed
5-22 in an amount that exceeds the maximum amount creditable in the
5-23 system to which credit is transferred. A person is eligible for a
5-24 refund from the system from which credit is transferred under this
5-25 section of contributions made for military service credit, other
5-26 than any amount that represents a fee, that exceeds the maximum
5-27 amount creditable.
6-1 Sec. 805.007. EFFECT OF TRANSFER OF SERVICE CREDIT. (a) A
6-2 person who transfers service credit under this chapter forfeits all
6-3 rights to benefits payable by the system from which it is
6-4 transferred and is not an annuitant of that system for any purpose,
6-5 including the payment of postretirement increases to annuitants of
6-6 that system.
6-7 (b) Service credit transferred under this chapter is
6-8 considered as if it had been granted for service performed under
6-9 the system to which it has been transferred and is used in
6-10 satisfying minimum service requirements for retirement and in
6-11 determining the amount of benefits that are based on the amount of
6-12 a person's service credit:
6-13 (1) except that a person's average salary for the
6-14 purpose of computing an annuity may be determined only from service
6-15 credit that was originally established in one system and that
6-16 results in the higher average salary; and
6-17 (2) except as provided by Section 805.006.
6-18 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS. (a) The
6-19 system from which a person's service credit is transferred under
6-20 this chapter shall transfer to the other system, at the time the
6-21 annuity based on the service credit becomes payable, an amount
6-22 equal to the portion of the actuarial value of the annuity that
6-23 represents the percentage of the total amount of the person's
6-24 service credited in both systems that was credited in the system
6-25 from which the credit is being transferred.
6-26 (b) The systems jointly by rule shall adopt actuarial tables
6-27 and investment assumptions to be used in computing actuarial values
7-1 under this section.
7-2 (c) For the purpose of computing an amount to be transferred
7-3 under this section, service credit in either system must be
7-4 considered as if it were credited under rules of the teacher
7-5 retirement system determining the amount of service creditable.
7-6 (d) An amount transferred under this section is payable from
7-7 amounts credited to the person's individual account and amounts
7-8 credited to the account in which the system places state
7-9 contributions. An amount received under this section shall be
7-10 deposited in the account from which the system receiving the amount
7-11 pays annuities.
7-12 (e) The system to which a transfer is made under this
7-13 section is responsible for paying the annuity for which the
7-14 transfer was made, including the entire amount of any increase in
7-15 the annuity granted after the transfer.
7-16 Sec. 805.009. RULES. In addition to the rules specifically
7-17 required by this chapter, a system may adopt other rules for the
7-18 administration of this chapter.
7-19 SECTION 3. Subchapter B, Chapter 813, Government Code, is
7-20 amended by adding Section 813.104 to read as follows:
7-21 Sec. 813.104. Alternative Payments to Establish or
7-22 Reestablish Service Credit. (a) A member who is otherwise
7-23 eligible may establish or reestablish service creditable in the
7-24 retirement system by making payments as provided by this section in
7-25 lieu of lump-sum payments otherwise authorized or required by this
7-26 subtitle.
7-27 (b) A payment authorized by this section consists of the
8-1 contribution required to establish or reestablish at least one year
8-2 of service credit, including any required interest and membership
8-3 fees, except that a person's last in a series of payments under
8-4 this section may be for a period of remaining service that is less
8-5 than one year.
8-6 (c) The retirement system shall grant the applicable amount
8-7 of service credit after each payment is made under this section.
8-8 (d) Payments may not be made under this section:
8-9 (1) to establish or reestablish service credit of a
8-10 person who has retired or died; or
8-11 (2) to establish current service under Section
8-12 813.201.
8-13 (e) The retirement system may adopt rules to administer this
8-14 section.
8-15 SECTION 4. Subchapter B, Chapter 813, Government Code, is
8-16 amended by adding Section 813.105 to read as follows:
8-17 Sec. 813.105. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
8-18 SERVICE CREDIT. (a) A contributing member who is otherwise
8-19 eligible may establish or reestablish service creditable in the
8-20 retirement system by making payments as provided by this section in
8-21 lieu of lump-sum payments otherwise authorized or required by this
8-22 subtitle.
8-23 (b) A payment authorized by this section consists of a
8-24 monthly payroll deduction in an amount not less than one-twelfth of
8-25 the contribution required to establish or reestablish at least one
8-26 year of service credit, including any required interest and
8-27 membership fee, except as provided by Subsection (c).
9-1 (c) Payments to establish or reestablish service credit of
9-2 less than one year or to establish or reestablish service credit by
9-3 a member who plans to retire in less than a year may be made by
9-4 payroll deduction for a period determined by the retirement system.
9-5 (d) Payroll deductions for payments under this section shall
9-6 be made and submitted to the retirement system at the times and in
9-7 the manner provided for member contributions under Section 815.402.
9-8 (e) The retirement system shall credit a member's payments
9-9 made under this section to a suspense account in the trust fund
9-10 until the sum of the payments equals the amount required for one
9-11 year of service credit or the amount required for credit under
9-12 Subsection (c), at which time the retirement system shall deposit
9-13 the payments in the appropriate accounts in the trust fund and
9-14 grant the applicable amount of service credit.
9-15 (f) A member who, while making payments under this section,
9-16 ceases to hold a position or withdraws the authority for payroll
9-17 deductions may contract with the retirement system for an
9-18 alternative method of continuing the payments. The retirement
9-19 system may refund payments credited to the suspense account and not
9-20 transferred to trust fund accounts if a remaining payment becomes
9-21 delinquent by more than 60 days.
9-22 (g) Payments may not be made under this section to establish
9-23 or reestablish service credit of a person who has retired or died,
9-24 except that a beneficiary may make payment in a lump sum for the
9-25 remainder of service credit for which payments were begun before
9-26 the member's death.
9-27 (h) The retirement system may adopt rules to administer this
10-1 section.
10-2 SECTION 5. Subchapter B, Chapter 813, Government Code, is
10-3 amended by adding Section 813.106 to read as follows:
10-4 Sec. 813.106. SERVICE NOT PREVIOUSLY ESTABLISHED. The state
10-5 shall make contributions for service not previously established
10-6 that is established under Section 813.104 or 813.105 in the amount
10-7 provided by Section 813.202(e) for membership service or the amount
10-8 provided by Section 813.302(d) for military service, as applicable.
10-9 The state contributions will be made at the time the service credit
10-10 is granted.
10-11 SECTION 6. Subsection (b), Section 813.304, Government Code,
10-12 is amended to read as follows:
10-13 (b) The retirement system shall use military service credit
10-14 in computing service retirement or nonoccupational disability
10-15 retirement benefits of a member of the employee class only if the
10-16 member has, without military service credit, at least five <10>
10-17 years of service credit in that class.
10-18 SECTION 7. Section 813.504, Government Code, is amended to
10-19 read as follows:
10-20 Sec. 813.504. Eligibility for Service Credit Previously
10-21 Canceled. A member may reestablish service credit previously
10-22 canceled in the retirement system if the member, after cancellation
10-23 of the credit, holds a position for six <24> months that is
10-24 included in the employee class.
10-25 SECTION 8. Subsection (a), Section 813.509, Government Code,
10-26 is amended to read as follows:
10-27 (a) A member who retires based on service or a disability is
11-1 entitled to service credit in the retirement system for the
11-2 member's sick leave that has accumulated and is unused on the last
11-3 day of employment. Sick leave is creditable in the retirement
11-4 system at the rate of one month of service credit for each 20 <40>
11-5 days, or 160 <320> hours, of accumulated sick leave. An increment
11-6 of less than 20 <40> days is not creditable.
11-7 SECTION 9. Subchapter F, Chapter 813, Government Code, is
11-8 amended by adding Section 813.510 to read as follows:
11-9 Sec. 813.510. CREDIT FOR COUNTY CHILD WELFARE BOARD SERVICE.
11-10 (a) An eligible member may, before September 1, 1994, claim
11-11 service credit not otherwise creditable in the retirement system
11-12 for service performed before September 1, 1980, for a county child
11-13 welfare board.
11-14 (b) A member eligible to claim credit under this section is
11-15 one who:
11-16 (1) was a contributing member on August 31, 1993,
11-17 having performed at least 24 months of continuous state service as
11-18 of that date; and
11-19 (2) was subject during the period of welfare board
11-20 service to personnel rules of and direct supervision by the Texas
11-21 Department of Human Services or its predecessor.
11-22 (c) A member may claim credit under this section by
11-23 depositing with the retirement system in a lump sum:
11-24 (1) a contribution based on the member's monthly
11-25 salary during the period of service for a county child welfare
11-26 board and computed for the number of months for which credit is
11-27 sought at the combined rates currently required of the state and
12-1 employee members of the system for new service;
12-2 (2) interest computed on the basis of the state fiscal
12-3 year at an annual rate of 10 percent from the date the service was
12-4 performed to the date of deposit; and
12-5 (3) any membership fees required of members of the
12-6 system during the period beginning on the date the service began
12-7 and ending on the date of deposit.
12-8 (d) The retirement system shall deposit the salary
12-9 contribution in the member's individual account in the employees
12-10 saving account, interest in the state accumulation account, and
12-11 membership fees in the expense account.
12-12 (e) The retirement system shall determine the amount to be
12-13 deposited in each case and may not grant service credit under this
12-14 section until the required amount has been paid in full.
12-15 (f) Service credit may not be established under this section
12-16 if the service is currently credited in another public retirement
12-17 system.
12-18 (g) This section expires October 1, 1994.
12-19 SECTION 10. Subchapter G, Chapter 814, Government Code, is
12-20 amended by adding Section 814.603 to read as follows:
12-21 Sec. 814.603. SUPPLEMENTAL ONE-TIME PAYMENT. (a) The
12-22 retirement system shall make a supplemental payment to persons
12-23 whose annuities are described by Section 814.107, 814.207, 814.305,
12-24 or 814.601(a) and that are based on service retirements, disability
12-25 retirements, or deaths. This supplemental payment is in addition
12-26 to the regular monthly annuity payment. Each person who receives
12-27 an annuity described by this subsection is entitled to receive one
13-1 payment equal to 10 percent of one month's annuity payment for each
13-2 fiscal year before the fiscal year beginning September 1, 1993, in
13-3 which the annuity has been paid. A supplemental payment may not
13-4 exceed 350 percent of a monthly annuity. Only a person whose
13-5 annuity began in the fiscal year ending August 31, 1993, or earlier
13-6 is eligible for the supplemental payment. Supplemental payments
13-7 under this subsection must comply with Section 811.006.
13-8 (b) The retirement system shall pay the supplemental payment
13-9 provided by Subsection (a) from the retirement annuity reserve
13-10 account and may transfer to that account from the state
13-11 accumulation account any portion of the amount that exceeds the
13-12 amount in the retirement annuity reserve account available to
13-13 finance this supplemental payment and that is actuarially
13-14 determined to be necessary to finance the supplemental payment.
13-15 (c) The board of trustees may adopt rules to implement the
13-16 payment, including rules that govern the timing of the supplemental
13-17 payment described by Subsection (a).
13-18 (d) The board of trustees may by rule authorize similar
13-19 supplemental payments in the fiscal year ending August 31, 1995, if
13-20 the payments are in compliance with Section 811.006.
13-21 SECTION 11. Section 815.002, Government Code, is amended by
13-22 adding Subsection (d) to read as follows:
13-23 (d) Appointments to the board shall be made without regard
13-24 to the race, color, disability, sex, religion, age, or national
13-25 origin of the appointees.
13-26 SECTION 12. Subchapter A, Chapter 815, Government Code, is
13-27 amended by adding Section 815.0031 to read as follows:
14-1 Sec. 815.0031. INELIGIBILITY FOR BOARD AND OF CERTAIN
14-2 EMPLOYEES. (a) A person is not eligible for appointment or
14-3 election to the board if the person or the person's spouse:
14-4 (1) is employed by or participates in the management
14-5 of a business entity or other organization receiving funds from the
14-6 retirement system; or
14-7 (2) owns or controls, directly or indirectly, more
14-8 than a 10 percent interest in a business entity or other
14-9 organization receiving funds from the retirement system.
14-10 (b) A paid officer, employee, or consultant of a Texas trade
14-11 association in the field of insurance or investment may not be a
14-12 trustee or an employee of the retirement system who is exempt from
14-13 the state's position classification plan or is compensated at or
14-14 above the amount prescribed by the General Appropriations Act for
14-15 step 1, salary group 17, of the position classification salary
14-16 schedule.
14-17 (c) A person who is the spouse of a paid officer, manager,
14-18 or consultant of a Texas trade association in the field of
14-19 insurance or investment may not be a trustee and may not be an
14-20 employee of the retirement system who is exempt from the state's
14-21 position classification plan or is compensated at or above the
14-22 amount prescribed by the General Appropriations Act for step 1,
14-23 salary group 17, of the position classification salary schedule.
14-24 (d) For the purposes of this section, a Texas trade
14-25 association is a nonprofit, cooperative, and voluntarily joined
14-26 association of business or professional competitors in this state
14-27 designed to assist its members and its industry or profession in
15-1 dealing with mutual business or professional problems and in
15-2 promoting their common interest.
15-3 (e) A person may not serve as a trustee or act as the
15-4 general counsel to the board if the person is required to register
15-5 as a lobbyist under Chapter 305 because of the person's activities
15-6 for compensation on behalf of a business or an association related
15-7 to the operation of the board.
15-8 SECTION 13. Subchapter A, Chapter 815, Government Code, is
15-9 amended by adding Section 815.008 to read as follows:
15-10 Sec. 815.008. GROUNDS FOR REMOVAL OF TRUSTEE. (a) It is a
15-11 ground for removal from the board if a trustee:
15-12 (1) violates a prohibition established by Section
15-13 815.0031;
15-14 (2) cannot discharge the person's duties for a
15-15 substantial part of the term for which the person is appointed or
15-16 elected because of illness or disability; or
15-17 (3) is absent from more than half of the regularly
15-18 scheduled board meetings that the person is eligible to attend
15-19 during a calendar year unless the absence is excused by majority
15-20 vote of the board.
15-21 (b) The validity of an action of the board is not affected
15-22 by the fact that it is taken when a ground for removal of a trustee
15-23 exists.
15-24 (c) If the executive director has knowledge that a potential
15-25 ground for removal exists, the executive director shall notify the
15-26 chairman of the board of the ground. The chairman shall then
15-27 notify the appropriate appointing officer, if any, that a potential
16-1 ground for removal exists.
16-2 SECTION 14. Subchapter B, Chapter 815, Government Code, is
16-3 amended by adding Section 815.111 to read as follows:
16-4 Sec. 815.111. MISCELLANEOUS BOARD DUTIES. (a) The board
16-5 shall provide to its trustees and employees, as often as necessary,
16-6 information regarding their qualification for office or employment
16-7 under this chapter and their responsibilities under applicable laws
16-8 relating to standards of conduct for state officers or employees.
16-9 (b) The board shall develop and implement policies that
16-10 clearly define the respective responsibilities of the board and the
16-11 staff of the retirement system.
16-12 (c) The board shall prepare information of interest to the
16-13 retirement system's members describing the functions of the system
16-14 and the system's procedures by which complaints are filed with and
16-15 resolved by the system. The system shall make the information
16-16 available to the system's members and appropriate state agencies.
16-17 (d) The board by rule shall establish methods by which
16-18 members are notified of the name, mailing address, and telephone
16-19 number of the retirement system for the purpose of directing
16-20 complaints to the system.
16-21 (e) The board shall develop and implement policies that
16-22 provide the public with a reasonable opportunity to appear before
16-23 the board and to speak on any issue under the jurisdiction of the
16-24 board.
16-25 (f) The board shall prepare and maintain a written plan that
16-26 describes how a person who does not speak English can be provided
16-27 reasonable access to the board's programs. The board shall also
17-1 comply with federal and state laws for program and facility
17-2 accessibility.
17-3 SECTION 15. Subchapter C, Chapter 815, Government Code, is
17-4 amended by adding Section 815.212 to read as follows:
17-5 Sec. 815.212. EMPLOYMENT PRACTICES. (a) The executive
17-6 director or the executive director's designee shall develop an
17-7 intra-agency career ladder program. The program shall require
17-8 intra-agency posting of all non-entry-level positions concurrently
17-9 with any public posting.
17-10 (b) The executive director or the executive director's
17-11 designee shall develop a system of annual performance evaluations.
17-12 All merit pay for retirement system employees must be based on the
17-13 system established under this subsection.
17-14 (c) The executive director or the executive director's
17-15 designee shall prepare and maintain a written policy statement to
17-16 assure implementation of a program of equal employment opportunity
17-17 under which all personnel transactions are made without regard to
17-18 race, color, disability, sex, religion, age, or national origin.
17-19 The policy statement must include:
17-20 (1) personnel policies, including policies relating to
17-21 recruitment, evaluation, selection, appointment, training, and
17-22 promotion of personnel;
17-23 (2) a comprehensive analysis of the retirement
17-24 system's work force that meets federal and state guidelines;
17-25 (3) procedures by which a determination can be made of
17-26 significant underuse in the retirement system's work force of all
17-27 persons for whom federal or state guidelines encourage a more
18-1 equitable balance; and
18-2 (4) reasonable methods to appropriately address those
18-3 areas of significant underuse.
18-4 (d) A policy statement prepared under Subsection (c) must
18-5 cover an annual period, be updated at least annually, and be filed
18-6 with the governor's office.
18-7 (e) The governor's office shall deliver a biennial report to
18-8 the legislature based on the information received under Subsection
18-9 (d). The report may be made separately or as a part of other
18-10 biennial reports made to the legislature.
18-11 SECTION 16. Subsections (a) and (b), Section 815.301,
18-12 Government Code, are amended to read as follows:
18-13 (a) The board of trustees shall:
18-14 (1) invest the assets of the retirement system<, other
18-15 than assets of the law enforcement and custodial officer
18-16 supplemental retirement fund,> as a single fund without distinction
18-17 as to their source; and
18-18 (2) hold securities purchased with the assets
18-19 described by Subsection (a)(1) collectively for the proportionate
18-20 benefit of:
18-21 (A) all accounts in the trust fund that are
18-22 listed in Section 815.310(b); and
18-23 (B) the law enforcement and custodial officer
18-24 supplemental retirement fund.
18-25 (b) The <Except for assets of the law enforcement and
18-26 custodial officer supplemental retirement fund, the> board of
18-27 trustees may, under the standard of care provided by Section
19-1 815.307, invest and reinvest any of the retirement system's assets
19-2 and may commingle assets of the trust fund and the law enforcement
19-3 and custodial officer supplemental retirement fund with the assets
19-4 of the Judicial Retirement System of Texas Plan Two for investment
19-5 purposes, as long as proportionate ownership records are maintained
19-6 and credited. Investments may include home office facilities,
19-7 including land, equipment, and office building, used in
19-8 administering the retirement system.
19-9 SECTION 17. Subsection (b), Section 815.310, Government
19-10 Code, is amended to read as follows:
19-11 (b) All assets of the trust fund shall be credited,
19-12 according to the purpose for which they are held, to one of the
19-13 following accounts:
19-14 (1) employees saving account;
19-15 (2) state accumulation account;
19-16 (3) retirement annuity reserve account;
19-17 (4) interest account; or
19-18 (5) expense account<; or>
19-19 <(6) benefit increase reserve account>.
19-20 SECTION 18. Subsection (a), Section 815.313, Government
19-21 Code, is amended to read as follows:
19-22 (a) The retirement system shall transfer to the retirement
19-23 annuity reserve account money as required by Section 815.318,
19-24 815.319, <815.320,> or 815.321.
19-25 SECTION 19. Subsection (a), Section 815.317, Government
19-26 Code, is amended to read as follows:
19-27 (a) The retirement system shall deposit in the law
20-1 enforcement and custodial officer supplemental retirement fund
20-2 state contributions and other <payments made as provided by Section
20-3 815.405, any> appropriations made by the legislature to the fund<,
20-4 money collected under Section 2(l), Chapter 88, General Laws, Acts
20-5 of the 41st Legislature, 2nd Called Session, 1929 (Article 6675a 2,
20-6 Vernon's Texas Civil Statutes),> and proceeds from investment of
20-7 the fund.
20-8 SECTION 20. Section 815.318, Government Code, is amended to
20-9 read as follows:
20-10 Sec. 815.318. Transfer of Assets From Interest Account.
20-11 (a) The board of trustees shall transfer from the interest account
20-12 to the employees saving account amounts of interest computed under
20-13 Section 815.311 at the following times:
20-14 (1) as required during the fiscal year for a member's
20-15 account in the retirement system that is closed before the last day
20-16 of the fiscal year; and
20-17 (2) as of the last day of the fiscal year for a
20-18 member's account that is not closed before the last day of the
20-19 fiscal year.
20-20 (b) As required during the year, the board of trustees shall
20-21 transfer from the interest account to the expense account amounts
20-22 it determines necessary for the payment of the retirement system's
20-23 expenses that exceed the amount of money available for those
20-24 expenses.
20-25 (c) As of the last day of each fiscal year, the board of
20-26 trustees shall transfer from the interest account to the retirement
20-27 annuity reserve account an amount equal to:
21-1 (1) five percent of the mean amount in the retirement
21-2 annuity reserve account for that fiscal year; or
21-3 (2) an amount computed at a greater rate if the
21-4 actuary recommends the greater rate to finance adequately the
21-5 annuities payable from the retirement annuity reserve account.
21-6 (d) <As of the last day of each fiscal year, the board of
21-7 trustees shall transfer from the interest account to the benefit
21-8 increase account an amount computed at the rate set by the board
21-9 under Section 815.106.>
21-10 <(e)> After making the transfers required by this section,
21-11 the board of trustees, as of the last day of each fiscal year,
21-12 shall transfer the amount remaining in the interest account to the
21-13 state accumulation account.
21-14 SECTION 21. Subsection (c), Section 815.401, Government
21-15 Code, is amended to read as follows:
21-16 (c) If the legislature appropriates, on behalf of each
21-17 contributing member for any fiscal year, a membership fee to be
21-18 deposited in the expense account in an amount equal to or greater
21-19 than the membership fee required by Subsection (a), the members are
21-20 not required to pay the membership fee for that year. The
21-21 retirement system may apply the membership fee to the
21-22 administration of any program administered by the board of
21-23 trustees.
21-24 SECTION 22. Section 815.403, Government Code, is amended by
21-25 amending Subsections (a) and (b) and by adding Subsection (g) to
21-26 read as follows:
21-27 (a) During each fiscal year, the state shall contribute to
22-1 the retirement system:
22-2 (1) an amount equal to 7.4 percent of the total
22-3 compensation of all members of the retirement system for that year;
22-4 (2) money to pay lump-sum death benefits for retirees
22-5 under Section 814.501;
22-6 (3) an amount for the law enforcement and custodial
22-7 officer supplemental retirement fund equal to 2.13 percent of the
22-8 aggregate state compensation of all custodial and law enforcement
22-9 officers for that year;
22-10 (4) money necessary for the administration <and
22-11 payment> of <benefits from> the law enforcement and custodial
22-12 officer supplemental retirement fund; and
22-13 (5) <(4)> money for service credit not previously
22-14 established, as provided by Section 813.202(e) or 813.302(d).
22-15 (b) Before November 2 of each even-numbered year, the
22-16 retirement system shall certify to the Legislative Budget Board and
22-17 to the budget division of the governor's office for review:
22-18 (1) an estimate of the amount necessary to pay the
22-19 state's contribution under Subsections (a)(1), (a)(2), (a)(3), and
22-20 (a)(5) <(a)(4)> for the following biennium;
22-21 <(2) the estimated amount, based on actuarial
22-22 valuations, of appropriated funds required in addition to other
22-23 available money to finance all benefits provided from the law
22-24 enforcement and custodial officer supplemental retirement fund for
22-25 the following biennium;>
22-26 <(3) the estimated amount, based on actuarial
22-27 valuations, of appropriated funds required for the following
23-1 biennium to fully finance, within a period of not more than 36
23-2 years after September 1, 1979, liabilities of the law enforcement
23-3 and custodial officer supplemental retirement fund accrued because
23-4 of service performed before September 1, 1979;> and
23-5 (2) <(4)> as a separate item, an estimate of the
23-6 amount required to administer the law enforcement and custodial
23-7 officer supplemental retirement fund for the following biennium.
23-8 (g) The contributions from the state to the law enforcement
23-9 and custodial officer supplemental retirement fund may be made only
23-10 from the general revenue fund.
23-11 SECTION 23. Section 815.505, Government Code, is amended to
23-12 read as follows:
23-13 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
23-14 CUSTODIAL OFFICERS. Not later than the 12th day of the month
23-15 following the month in which a person begins or ceases employment
23-16 as a law enforcement officer or custodial officer <As of the last
23-17 day of each fiscal year>, the <Department of> Public Safety
23-18 Commission, the Texas Alcoholic Beverage Commission, the Parks and
23-19 Wildlife Commission <Department>, or <the State Purchasing and
23-20 General Services Commission, and> the Texas Board <Department> of
23-21 Criminal Justice, as applicable, <Corrections> shall certify to the
23-22 retirement system, in the manner prescribed by the system, the name
23-23 of the employee and such other information as the system determines
23-24 is necessary for the crediting of service and financing of benefits
23-25 under this subtitle <the names of employees and the amount of
23-26 service each employee performed as a law enforcement officer or
23-27 custodial officer during that fiscal year>.
24-1 SECTION 24. Subchapter F, Chapter 815, Government Code, is
24-2 amended by adding Section 815.5071 to read as follows:
24-3 Sec. 815.5071. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
24-4 Section 811.005 and to the extent required as a condition of plan
24-5 qualification under Section 401(a) of the Internal Revenue Code of
24-6 1986 (26 U.S.C. Section 401), the retirement system shall, in
24-7 accordance with Section 401(a)(31) of the Internal Revenue Code of
24-8 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
24-9 the distributee of an eligible rollover distribution to elect to
24-10 have the distribution paid directly to an eligible retirement plan
24-11 specified by the distributee in the form of a direct
24-12 trustee-to-trustee transfer. The board of trustees may adopt rules
24-13 to carry out this section. Terms used in this section have the
24-14 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
24-15 United States Code).
24-16 SECTION 25. Subchapter F, Chapter 815, Government Code, is
24-17 amended by adding Section 815.508 to read as follows:
24-18 Sec. 815.508. COMPLAINT FILES. (a) The retirement system
24-19 shall keep an information file about each complaint filed with the
24-20 system that the system has authority to resolve.
24-21 (b) If a written complaint is filed with the retirement
24-22 system that the system has authority to resolve, the system, at
24-23 least quarterly and until final disposition of the complaint, shall
24-24 notify the parties to the complaint of the status of the complaint
24-25 unless the notice would jeopardize an undercover investigation.
24-26 SECTION 26. Subchapter F, Chapter 815, Government Code, is
24-27 amended by adding Sections 815.509 and 815.510 to read as follows:
25-1 Sec. 815.509. ADVISORY COMMITTEES. (a) The board of
25-2 trustees may establish advisory committees as it considers
25-3 necessary to assist it in performing its duties. Members of
25-4 advisory committees established under this section serve at the
25-5 pleasure of the board.
25-6 (b) Notwithstanding any other law to the contrary, the board
25-7 of trustees by rule shall determine the amount and manner of any
25-8 compensation or expense reimbursement to be paid members of an
25-9 advisory committee performing service for the retirement system for
25-10 performing the work of the advisory committee. All compensation
25-11 and expense reimbursements for an advisory committee established
25-12 under this section are payable from the expense account.
25-13 Sec. 815.510. QUARTERLY REPORT. The Employees Retirement
25-14 System of Texas shall submit a report not later than the 25th day
25-15 of the month following each calendar quarter to the governor, the
25-16 lieutenant governor, the speaker of the house of representatives,
25-17 the executive director of the State Pension Review Board, the
25-18 appropriate oversight committees of the house and senate, and the
25-19 Legislative Budget Board. The report shall include the following:
25-20 (1) the current end-of-month market value of the trust
25-21 fund;
25-22 (2) the current book value of the trust fund;
25-23 (3) the asset allocations of the trust fund expressed
25-24 in percentages of stocks, fixed income, cash, or other financial
25-25 investments; and
25-26 (4) the investment performance of the trust fund
25-27 utilizing accepted industry measurement standards.
26-1 SECTION 27. Before October 1, 1995, the Public Safety
26-2 Commission, the Texas Alcoholic Beverage Commission, the Parks and
26-3 Wildlife Commission, and the Texas Board of Criminal Justice shall
26-4 certify to the Employees Retirement System of Texas, in the manner
26-5 prescribed by the retirement system, the name of each person
26-6 employed on September 1, 1995, by the particular agency as a law
26-7 enforcement officer, as defined by Section 811.001, Government
26-8 Code, or a custodial officer, as defined by that section, and such
26-9 other information as the system determines is necessary for the
26-10 crediting of service and financing of benefits under Subtitle B,
26-11 Title 8, Government Code.
26-12 SECTION 28. (a) All persons who were employed by the Texas
26-13 Rehabilitation Commission on August 31, 1993, who were contributing
26-14 members of the Teacher Retirement System of Texas on that date, and
26-15 who remain employees of the Texas Rehabilitation Commission on
26-16 September 1, 1993, become members of the Employees Retirement
26-17 System of Texas on the latter date.
26-18 (b) At the time of the retirement or death of a person
26-19 described by Subsection (a) of this section, the Teacher Retirement
26-20 System of Texas and the Employees Retirement System of Texas shall
26-21 make a computation and transfer of money in the manner provided by
26-22 Section 805.008, Government Code, as added by this Act, and the
26-23 person's service credit in the Teacher Retirement System of Texas
26-24 will be transferred to the Employees Retirement System of Texas.
26-25 The Employees Retirement System of Texas has the same
26-26 responsibility for payments after retirement or death as is
26-27 provided by Section 805.008, Government Code, as added by this Act.
27-1 (c) Notwithstanding Chapter 805, Government Code, as added
27-2 by this Act, a person who becomes a member of the Employees
27-3 Retirement System of Texas under this section is not eligible to
27-4 transfer service credit from the Employees Retirement System of
27-5 Texas to the Teacher Retirement System of Texas.
27-6 SECTION 29. Chapter 805, Government Code, as added by this
27-7 Act, applies only to retirements and deaths that occur on or after
27-8 August 31, 1993.
27-9 SECTION 30. Subchapter B, Chapter 833, Government Code, is
27-10 amended by adding Section 833.105 to read as follows:
27-11 Sec. 833.105. Alternative Payments to Establish or
27-12 Reestablish Service Credit. (a) A member who is otherwise
27-13 eligible may establish or reestablish service creditable in the
27-14 retirement system by making payments as provided by this section in
27-15 lieu of lump-sum payments otherwise authorized or required by this
27-16 subtitle.
27-17 (b) A payment authorized by this section consists of the
27-18 contribution required to establish or reestablish at least one year
27-19 of service credit, including any required interest and membership
27-20 fees, except that a person's last in a series of payments under
27-21 this section may be for a period of remaining service that is less
27-22 than one year.
27-23 (c) The retirement system shall grant the applicable amount
27-24 of service credit after each payment is made under this section.
27-25 (d) Payments may not be made under this section:
27-26 (1) to establish or reestablish service credit of a
27-27 person who has retired or died; or
28-1 (2) to establish current service under Section
28-2 833.101.
28-3 (e) The retirement system may adopt rules to administer this
28-4 section.
28-5 SECTION 31. Subchapter B, Chapter 833, Government Code, is
28-6 amended by adding Section 833.106 to read as follows:
28-7 Sec. 833.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
28-8 SERVICE CREDIT. (a) A contributing member who is otherwise
28-9 eligible may establish or reestablish service creditable in the
28-10 retirement system by making payments as provided by this section in
28-11 lieu of lump-sum payments otherwise authorized or required by this
28-12 subtitle.
28-13 (b) A payment authorized by this section consists of a
28-14 monthly payroll deduction in an amount not less than one-twelfth of
28-15 the contribution required to establish or reestablish at least one
28-16 year of service credit, including any required interest and
28-17 membership fee, except as provided by Subsection (c).
28-18 (c) Payments to establish or reestablish service credit of
28-19 less than one year or to establish or reestablish service credit by
28-20 a member who plans to retire in less than a year may be made by
28-21 payroll deduction for a period determined by the retirement system.
28-22 (d) Payroll deductions for payments under this section shall
28-23 be made and submitted to the retirement system at the times and in
28-24 the manner provided for member contributions under Section 835.101.
28-25 (e) The retirement system shall credit a member's payments
28-26 made under this section to a suspense account until the sum of the
28-27 payments equals the amount required for one year of service credit
29-1 or the amount required for credit under Subsection (c), at which
29-2 time the retirement system shall deposit the payments in the
29-3 general revenue fund and grant the applicable amount of service
29-4 credit.
29-5 (f) A member who, while making payments under this section,
29-6 ceases to be a judicial officer or withdraws the authority for
29-7 payroll deductions may contract with the retirement system for an
29-8 alternative method of continuing the payments. The retirement
29-9 system may refund payments credited to the suspense account and not
29-10 transferred to the general revenue fund if a remaining payment
29-11 becomes delinquent by more than 60 days.
29-12 (g) Payments may not be made under this section to establish
29-13 or reestablish service credit of a person who has retired or died,
29-14 except that a beneficiary may make payment in a lump sum for the
29-15 remainder of service credit for which payments were begun before
29-16 the member's death.
29-17 (h) The retirement system may adopt rules to administer this
29-18 section.
29-19 SECTION 32. Subchapter B, Chapter 838, Government Code, is
29-20 amended by adding Section 838.105 to read as follows:
29-21 Sec. 838.105. Alternative Payments to Establish or
29-22 Reestablish Service Credit. (a) A member who is otherwise
29-23 eligible may establish or reestablish service creditable in the
29-24 retirement system by making payments as provided by this section in
29-25 lieu of lump-sum payments otherwise authorized or required by this
29-26 subtitle.
29-27 (b) A payment authorized by this section consists of the
30-1 contribution required to establish or reestablish at least one year
30-2 of service credit, including any required interest and membership
30-3 fees, except that a person's last in a series of payments under
30-4 this section may be for a period of remaining service that is less
30-5 than one year.
30-6 (c) The retirement system shall grant the applicable amount
30-7 of service credit after each payment is made under this section.
30-8 (d) Payments may not be made under this section:
30-9 (1) to establish or reestablish service credit of a
30-10 person who has retired or died; or
30-11 (2) to establish current service under Section
30-12 838.101.
30-13 (e) The retirement system may adopt rules to administer this
30-14 section.
30-15 SECTION 33. Subchapter B, Chapter 838, Government Code, is
30-16 amended by adding Section 838.106 to read as follows:
30-17 Sec. 838.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
30-18 SERVICE CREDIT. (a) A contributing member who is otherwise
30-19 eligible may establish or reestablish service creditable in the
30-20 retirement system by making payments as provided by this section in
30-21 lieu of lump-sum payments otherwise authorized or required by this
30-22 subtitle.
30-23 (b) A payment authorized by this section consists of a
30-24 monthly payroll deduction in an amount not less than one-twelfth of
30-25 the contribution required to establish or reestablish at least one
30-26 year of service credit, including any required interest and
30-27 membership fee, except as provided by Subsection (c).
31-1 (c) Payments to establish or reestablish service credit of
31-2 less than one year or to establish or reestablish service credit by
31-3 a member who plans to retire in less than a year may be made by
31-4 payroll deduction for a period determined by the retirement system.
31-5 (d) Payroll deductions for payments under this section shall
31-6 be made and submitted to the retirement system at the times and in
31-7 the manner provided for member contributions under Section 840.102.
31-8 (e) The retirement system shall credit a member's payments
31-9 made under this section to a suspense account in the trust fund
31-10 until the sum of the payments equals the amount required for one
31-11 year of service credit or the amount required for credit under
31-12 Subsection (c), at which time the retirement system shall deposit
31-13 the payments in the appropriate accounts in the trust fund and
31-14 grant the applicable amount of service credit.
31-15 (f) A member who, while making payments under this section,
31-16 ceases to be a judicial officer or withdraws the authority for
31-17 payroll deductions may contract with the retirement system for an
31-18 alternative method of continuing the payments. The retirement
31-19 system may refund payments credited to the suspense account and not
31-20 transferred to trust fund accounts if a remaining payment becomes
31-21 delinquent by more than 60 days.
31-22 (g) Payments may not be made under this section to establish
31-23 or reestablish service credit of a person who has retired or died,
31-24 except that a beneficiary may make payment in a lump sum for the
31-25 remainder of service credit for which payments were begun before
31-26 the member's death.
31-27 (h) The retirement system may adopt rules to administer this
32-1 section.
32-2 SECTION 34. Subchapter B, Chapter 838, Government Code, is
32-3 amended by adding Section 838.107 to read as follows:
32-4 Sec. 838.107. SERVICE NOT PREVIOUSLY ESTABLISHED. The state
32-5 shall make contributions for service not previously established
32-6 that is established under Section 838.105 or 838.106 in the amount
32-7 provided by Section 838.103(f) for military service. The state
32-8 contributions will be made at the time the service credit is
32-9 granted.
32-10 SECTION 35. Subsection (a), Section 839.101, Government
32-11 Code, is amended to read as follows:
32-12 (a) A member is eligible to retire and receive a service
32-13 retirement annuity if the member:
32-14 (1) is at least 65 years old, currently holds a
32-15 judicial office, and has at least 10 years of service credited in
32-16 the retirement system, the most recently performed of which was for
32-17 a continuous period of at least one year;
32-18 (2) is at least 65 years old and has at least 12 years
32-19 of service, continuous or otherwise, credited in the retirement
32-20 system, regardless of whether the member currently holds a judicial
32-21 office; or
32-22 (3) has at least 20 <25> years of service credited in
32-23 the retirement system, the most recently performed of which was for
32-24 a continuous period of at least 10 years, regardless of whether the
32-25 member currently holds a judicial office.
32-26 SECTION 36. Section 839.102, Government Code, is amended to
32-27 read as follows:
33-1 Sec. 839.102. SERVICE RETIREMENT ANNUITY. (a) Except as
33-2 provided by Subsections (b) and (c), the standard service
33-3 retirement annuity is an amount equal to 50 percent of the state
33-4 salary being paid at the time the member retires to a judge of a
33-5 court of the same classification as the last court to which the
33-6 retiring member was elected or appointed <computed on the basis of
33-7 the member's average monthly compensation for the 36 highest months
33-8 of compensation during the last 60 months of service, multiplied by
33-9 one-twelfth of three percent for each month of service that is
33-10 credited in the retirement system>.
33-11 (b) The retirement system shall increase by 10 percent of
33-12 the amount of the applicable state salary under Subsection (a) or
33-13 (c) the annuity of a member who on the effective date of retirement
33-14 has not been out of judicial office for more than one year
33-15 <standard service retirement annuity may not be more than 60
33-16 percent of the average monthly compensation computed under
33-17 Subsection (a)>.
33-18 (c) The standard service retirement annuity of a person
33-19 qualifying for retirement under Section 839.101(b) is an amount
33-20 computed as a percentage of the state salary being paid at the time
33-21 the member retires to a judge of a court of the same classification
33-22 as the last court to which the retiring member was elected or
33-23 appointed, according to the following schedule:
33-24 age at retirement percentage of state salary
33-25 at least 60 but less than 61 40 percent
33-26 at least 61 but less than 62 41.7 percent
33-27 at least 62 but less than 63 43.6 percent
34-1 at least 63 but less than 64 45.6 percent
34-2 at least 64 but less than 65 47.7 percent
34-3 <as provided by Subsection (a), reduced by one-third of one percent
34-4 for each whole or partial calendar month that occurs during the
34-5 period from the date of retirement to the date of the retiree's
34-6 65th birthday, including the months that contain the dates of
34-7 retirement and birthday>.
34-8 SECTION 37. Subsection (b), Section 840.103, Government
34-9 Code, is amended to read as follows:
34-10 (b) Before November 2 of each even-numbered year, the
34-11 retirement system shall certify to the Legislative Budget Board and
34-12 to the budget division of the governor's office for review:
34-13 (1) an actuarial valuation of the retirement system to
34-14 determine the percentage of annual payroll required from the state
34-15 to finance fully the retirement system as provided by Section
34-16 840.106 <without any unfunded liability>;
34-17 (2) an estimate of the amount necessary to pay the
34-18 state's contribution under Subdivision (1) for the following
34-19 biennium; and
34-20 (3) as a separate item, an estimate of the amount, in
34-21 addition to anticipated receipts from membership fees, required to
34-22 administer the retirement system for the following biennium.
34-23 SECTION 38. Subchapter B, Chapter 840, Government Code, is
34-24 amended by adding Section 840.106 to read as follows:
34-25 Sec. 840.106. ACTION INCREASING AMORTIZATION PERIOD. (a) A
34-26 rate of member or state contributions to or a rate of interest
34-27 required for the establishment of credit in the retirement system
35-1 may not be reduced or eliminated, a type of service may not be made
35-2 creditable in the retirement system, a limit on the maximum
35-3 permissible amount of a type of creditable service may not be
35-4 removed or raised, a new monetary benefit payable by the retirement
35-5 system may not be established, and the determination of the amount
35-6 of a monetary benefit from the system may not be increased, if, as
35-7 a result of the particular action, the time, as determined by an
35-8 actuarial valuation, required to amortize the unfunded actuarial
35-9 liabilities of the retirement system would be increased to a period
35-10 that exceeds 30 years by one or more years.
35-11 (b) If the amortization period for the unfunded actuarial
35-12 liabilities of the retirement system exceeds 30 years by one or
35-13 more years at the time an action described by Subsection (a) is
35-14 proposed, the proposal may not be adopted if, as a result of the
35-15 adoption, the amortization period would be increased, as determined
35-16 by an actuarial valuation.
35-17 SECTION 39. Subsection (a), Section 840.301, Government
35-18 Code, is amended to read as follows:
35-19 (a) The board of trustees may, under the standard of care
35-20 provided by Section 840.303, invest and reinvest the retirement
35-21 system's assets and may commingle assets of the trust fund with the
35-22 assets of the Employees Retirement System of Texas, including its
35-23 trust fund and the law enforcement and custodial officer
35-24 supplemental retirement fund, for investment purposes, as long as
35-25 proportionate ownership records are maintained and credited.
35-26 SECTION 40. Subchapter E, Chapter 840, Government Code, is
35-27 amended by adding Section 840.405 to read as follows:
36-1 Sec. 840.405. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
36-2 Section 836.004 and to the extent required as a condition of plan
36-3 qualification under Section 401(a) of the Internal Revenue Code of
36-4 1986 (26 U.S.C. Section 401), the retirement system shall, in
36-5 accordance with Section 401(a)(31) of the Internal Revenue Code of
36-6 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
36-7 the distributee of an eligible rollover distribution to elect to
36-8 have the distribution paid directly to an eligible retirement plan
36-9 specified by the distributee in the form of a direct
36-10 trustee-to-trustee transfer. The board of trustees may adopt rules
36-11 to carry out this section. Terms used in this section have the
36-12 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
36-13 United States Code).
36-14 SECTION 41. Subchapter E, Chapter 840, Government Code, is
36-15 amended by adding Section 840.406 to read as follows:
36-16 Sec. 840.406. PLAN QUALIFICATION. (a) The provisions of
36-17 this subtitle shall be interpreted and administered in a manner
36-18 that permits the retirement system's benefit plan to be considered
36-19 a qualified plan under Section 401, Internal Revenue Code of 1986
36-20 (26 U.S.C. Section 401). The board of trustees may adopt rules
36-21 necessary to accomplish that purpose, and those rules are
36-22 considered a part of the plan.
36-23 (b) The retirement system's benefit plan shall be considered
36-24 the primary retirement plan for members of the retirement system in
36-25 determining qualification status under Section 401(a), Internal
36-26 Revenue Code of 1986 (26 U.S.C. Section 401(a)).
36-27 SECTION 42. Subparagraph (A), Paragraph (5), Subsection (a),
37-1 Section 3, Texas Employees Uniform Group Insurance Benefits Act
37-2 (Article 3.50-2, Vernon's Texas Insurance Code), as amended by
37-3 Chapters 242 and 391, Acts of the 72nd Legislature, Regular
37-4 Session, 1991, is amended to read as follows:
37-5 (A) "Employee" <"State-employee"> shall mean any
37-6 appointive or elective state officer or employee in the service of
37-7 the State of Texas, including an employee of an institution of
37-8 higher education:
37-9 (i) who is retired or retires and is an
37-10 annuitant under the jurisdiction of the Employees Retirement System
37-11 of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
37-12 Government Code, who is retired or retires and is an annuitant
37-13 under the jurisdiction of the Teacher Retirement System of Texas,
37-14 pursuant to Subtitle C, Title 8, Government Code, whose last
37-15 employment with the state prior to retirement was as an employee of
37-16 the Teacher Retirement System of Texas, school districts
37-17 established within state eleemosynary institutions, the Texas
37-18 Rehabilitation Commission, the Central Education Agency, the Texas
37-19 Higher Education Coordinating Board, or an institution of higher
37-20 education, or who is retired or retires and is an annuitant under
37-21 the optional retirement program established by Chapter 830,
37-22 Government Code, if the person's last state employment before
37-23 retirement, including employment by a public community/junior
37-24 college, was as an officer or employee of the Texas Higher
37-25 Education Coordinating Board, or an institution of higher
37-26 education, and if the person either:
37-27 (a) would have been eligible to
38-1 retire and receive a service retirement annuity from the Teacher
38-2 Retirement System of Texas had the person not elected to
38-3 participate in the optional retirement program; or
38-4 (b) is disabled;
38-5 (ii) who receives his compensation for
38-6 services rendered to the State of Texas on a warrant issued
38-7 pursuant to a payroll certified by a department or by an elected or
38-8 duly appointed officer of this state;
38-9 (iii) who receives payment for the
38-10 performance of personal services on a warrant issued pursuant to a
38-11 payroll certified by a department and drawn by the State
38-12 Comptroller of Public Accounts upon the State Treasurer against
38-13 appropriations made by the Texas Legislature from any state funds
38-14 or against any trust funds held by the State Treasurer or who is
38-15 paid from funds of an official budget of a state department, rather
38-16 than from funds of the General Appropriations Act;
38-17 (iv) who is appointed, subject to
38-18 confirmation of the senate, as a member of a board or commission
38-19 with administrative responsibility over a statutory agency having
38-20 statewide jurisdiction whose employees are covered by this Act;
38-21 (v) who is a member of the governing body
38-22 of an institution of higher education, as that term is defined by
38-23 Section 61.003, Education Code, including subsequent amendments to
38-24 that section;
38-25 (vi) who is a member of the State Board of
38-26 Education;
38-27 (vii) who receives compensation for
39-1 services rendered to an institution of higher education on a
39-2 warrant or check issued pursuant to a payroll certified by an
39-3 institution of higher education or by an elected or duly appointed
39-4 officer of this state, and who is eligible for participation in the
39-5 Teacher Retirement System of Texas; or
39-6 (viii) <(vi)> who receives compensation
39-7 for services rendered to an institution of higher education as
39-8 provided by this subdivision but is not permitted to be a member of
39-9 the Teacher Retirement System of Texas because the person is solely
39-10 employed by an institution of higher education that as a condition
39-11 of employment requires the person to be enrolled as a student in an
39-12 institution of higher education in graduate-level courses and who
39-13 is employed by the institution at least 20 hours a week.
39-14 SECTION 43. Paragraphs (6), (14), and (15), Subsection (a),
39-15 Section 3, Texas Employees Uniform Group Insurance Benefits Act
39-16 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
39-17 read as follows:
39-18 (6) "Employer" shall mean the State of Texas and<,>
39-19 all its departments<, and any participating school district>.
39-20 (14) "Part-time employee" shall mean, for purposes of
39-21 this Act, an employee designated by his employing agency as working
39-22 less than 20 hours per week. A part-time <state> employee shall
39-23 receive the benefits of one-half the amount of the state's
39-24 contribution received by full-time employees.
39-25 (15) "Full-time employee" shall mean, for purposes of
39-26 this Act, an employee designated by his employing agency as working
39-27 20 or more hours per week. A full-time <state> employee shall
40-1 receive the benefits of a full state contribution for coverage
40-2 under this Act.
40-3 SECTION 44. Subsection (e), Section 5, Texas Employees
40-4 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
40-5 Texas Insurance Code), as amended by Chapters 391 and 850, Acts of
40-6 the 72nd Legislature, Regular Session, 1991, is amended to read as
40-7 follows:
40-8 (e) The trustee is authorized to select, contract for, and
40-9 make available to eligible employees and annuitants in a specific
40-10 area of the state, services performed by health maintenance
40-11 organizations which are approved by the federal government or the
40-12 State of Texas to offer health care services in that area.
40-13 Eligible employees and annuitants may participate in a selected
40-14 health maintenance organization in lieu of participation in the
40-15 health insurance benefits in the Employees Uniform Group Insurance
40-16 Program<, and the employer contributions provided by Section 14(a)
40-17 or (b) of this Act for health care coverage shall be paid to the
40-18 selected health maintenance organizations on behalf of the
40-19 participants>.
40-20 SECTION 45. Subsection (a), Section 13B, Texas Employees
40-21 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
40-22 Texas Insurance Code), is amended to read as follows:
40-23 (a) The trustee may study the feasibility of establishing a
40-24 cafeteria plan and may design, develop, adopt, implement, and
40-25 administer a cafeteria plan if the trustee determines that the
40-26 establishment of a cafeteria plan is feasible, would be beneficial
40-27 to the state and to the <state> employees who would be eligible to
41-1 participate in the cafeteria plan, and would not adversely affect
41-2 the insurance program established under this Act. The trustee may
41-3 include in the cafeteria plan any benefit that may be included in a
41-4 cafeteria plan under federal law.
41-5 SECTION 46. Section 14, Texas Employees Uniform Group
41-6 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
41-7 Code), as amended by Chapters 391 and 850, Acts of the 72nd
41-8 Legislature, Regular Session, 1991, is amended to read as follows:
41-9 Sec. 14. Payment of Contributions. (a) The trustee shall
41-10 use the amount appropriated for employer contributions in
41-11 accordance with Section 15 of this Act to fund the basic coverage.
41-12 The trustee may equitably allocate to each health benefits plan the
41-13 employer contributions that would be required to fund basic health
41-14 coverage for participants in the plans to the extent funds are
41-15 available. In allocating the employer contributions among plans,
41-16 the trustee shall consider the relevant risk characteristics of
41-17 each plan's enrollment, including demographic variations in the use
41-18 and cost of health care and the prevailing cost patterns in the
41-19 area in which the plan operates. The allocation must be reasonable
41-20 and set in a manner which assures employees a fair choice among
41-21 health benefit plans providing a basic plan. The contribution set
41-22 for each employee shall be within the total amount appropriated in
41-23 the General Appropriations Act.
41-24 (b) Any employer contributions remaining after the basic
41-25 coverage has been funded may be allocated by the trustee to fund
41-26 optional coverages in any manner the trustee determines is
41-27 appropriate. <Each participating school district shall contribute,
42-1 for each school district employee covered by the program, an amount
42-2 equal to the employee only cost of the plans of group coverages
42-3 authorized by the trustee for school district employees, provided
42-4 that the school district's contribution may not exceed the amount
42-5 contributed for each state employee in accordance with Subsection
42-6 (a) of this section. If the cost of the plan authorized by the
42-7 trustee for school district employees exceeds the amount of the
42-8 district's contribution, the district shall deduct from the monthly
42-9 compensation of the employee an amount sufficient to pay the amount
42-10 of the premiums not covered by the district's contribution.>
42-11 (c) The trustee may not allocate any employer contributions
42-12 to fund voluntary coverages. Voluntary coverages must be funded
42-13 solely by employee contributions. <If an employee or annuitant
42-14 refuses in writing the coverages, benefits, or services provided by
42-15 this Act by a statement in writing satisfactory to the trustee,
42-16 then in no event shall the State of Texas, the employee's
42-17 department, or the participating school district make any
42-18 contribution to the cost of any other coverages, services, or
42-19 benefits on such employee or annuitant.>
42-20 (d) If the cost of the basic coverage exceeds the amount of
42-21 employer contributions allocated to fund the basic coverage, the
42-22 state shall deduct from or reduce the monthly compensation of the
42-23 employee and shall deduct from the retirement benefits of the
42-24 annuitant an amount sufficient to pay the cost of the basic
42-25 coverage. <Except as provided by Subsection (e) of this section,
42-26 if any employee or annuitant applies for coverages for which the
42-27 cost exceeds the state's, the employing department's, or the
43-1 participating school district's contribution under this Act, he
43-2 shall authorize in writing and in a form satisfactory to the
43-3 trustee a deduction from his monthly compensation or annuity the
43-4 difference between the cost of coverages under the said group
43-5 programs and the amount contributed therefor by the State of Texas
43-6 or the employing department.>
43-7 (e) The trustee shall apply the amount of any employer
43-8 contribution allocated to fund optional coverages to the excess of
43-9 the cost of the basic and optional coverages for which the employee
43-10 or annuitant has applied over the basic coverage contribution.
43-11 Except as provided by Subsection (h) of this section, if an
43-12 employee or annuitant applies for basic and optional coverages for
43-13 which the cost exceeds the contributions for those coverages under
43-14 this Act, the employee or annuitant shall authorize in writing in a
43-15 form satisfactory to the trustee a deduction from the employee's or
43-16 annuitant's monthly compensation or annuity equal to the difference
43-17 between the cost of basic and optional coverages for which the
43-18 employee or annuitant has applied and the employer contributions
43-19 for basic and optional coverage. <If an employee elects to
43-20 participate in the cafeteria plan, he shall execute a salary
43-21 reduction agreement under which his monthly compensation will be
43-22 reduced in an amount that is equal to the difference between the
43-23 amount contributed for the coverages by the State of Texas, the
43-24 employing department, or the participating school district and the
43-25 cost of the coverages for which the employee is eligible to pay
43-26 under the cafeteria plan. An employee who executes a salary
43-27 reduction agreement for insurance coverages included in the
44-1 cafeteria plan is considered to have elected to participate in the
44-2 cafeteria plan and agreed to a salary reduction for the insurance
44-3 coverages for subsequent plan years unless the participant, during
44-4 an annual enrollment period specified by the trustee, explicitly
44-5 elects not to participate for the next plan year in the insurance
44-6 coverages. After electing not to participate in insurance
44-7 coverages included in the cafeteria plan, an employee must, to
44-8 reestablish participation for subsequent plan years in insurance
44-9 coverages included in the cafeteria plan, execute a new salary
44-10 reduction agreement. A salary reduction agreement for other
44-11 benefits of the cafeteria plan must be executed annually, during
44-12 the annual enrollment period specified by the trustee, for each
44-13 plan year. The employee shall pay any remaining portion of the
44-14 cost of benefits that is not covered by the state's, department's,
44-15 or district's contributions and the salary reductions under the
44-16 cafeteria plan by executing a payroll deduction agreement.>
44-17 (f) Except as provided by Subsection (h) of this section, if
44-18 an employee or annuitant applies for voluntary coverages, the
44-19 employee shall authorize in writing in a form satisfactory to the
44-20 trustee a deduction from the employee's monthly compensation or
44-21 annuity equal to the cost of the voluntary coverages.
44-22 (g) If an employee or annuitant refuses the coverages or
44-23 benefits provided under this Act in writing in a form satisfactory
44-24 to the trustee, the state and the employee's department may not
44-25 make any contribution to the cost of any coverages or benefits for
44-26 the employee or annuitant.
44-27 (h) If an employee elects to participate in the cafeteria
45-1 plan, the employee must execute a salary reduction agreement under
45-2 which the employee's monthly compensation will be reduced in an
45-3 amount that is equal to the difference between the employer
45-4 contributions for basic and optional coverages and the cost of the
45-5 cafeteria plan coverages identified by the trustee as comparable to
45-6 the basic and optional coverages for which the employee is
45-7 eligible. The salary reduction agreement must also provide for an
45-8 additional reduction in the employee's compensation equal to the
45-9 cost of voluntary coverages for which the employee has applied. An
45-10 employee who executes a salary reduction agreement for insurance
45-11 coverage included in the cafeteria plan has elected to participate
45-12 in the cafeteria plan and agreed to a salary reduction for the
45-13 insurance coverages for subsequent plan years unless the
45-14 participant, during an annual enrollment period specified by the
45-15 trustee, elects in writing not to participate for the next plan
45-16 year in the insurance coverages. An employee who has elected not
45-17 to participate in the cafeteria plan insurance coverages may
45-18 re-enroll by executing a new salary reduction agreement during a
45-19 subsequent annual enrollment period. A salary reduction agreement
45-20 for cafeteria plan benefits other than insurance coverages must be
45-21 executed annually, during the annual enrollment period. The
45-22 employee shall pay any remaining portion of the cost of benefits
45-23 that is not covered by the contributions for basic and optional
45-24 coverages and the salary reduction under the cafeteria plan by
45-25 executing a payroll deduction agreement.
45-26 SECTION 47. Subsection (a), Section 15, Texas Employees
45-27 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
46-1 Texas Insurance Code), is amended to read as follows:
46-2 (a) On or before the first day of November next preceding
46-3 each regular session of the legislature, the trustee shall certify
46-4 to the Legislative Budget Board and budget division of the
46-5 governor's office for information and review the amount necessary
46-6 to pay the contributions of the State of Texas to the trustee for
46-7 the coverages provided under this Act during the ensuing biennium.
46-8 A state contribution may not be made for coverages under this Act
46-9 selected by a person who receives a state contribution, other than
46-10 as a spouse, dependent, or beneficiary, for coverages under a group
46-11 benefits program provided by an institution of higher education, as
46-12 that term is defined by Section 61.003, Education Code. This
46-13 amount shall be included in the budget of the state which the
46-14 governor submits to the legislature.
46-15 SECTION 48. Subsections (a) and (b), Section 16, Texas
46-16 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
46-17 Vernon's Texas Insurance Code), are amended to read as follows:
46-18 (a) There is hereby created with the treasury of the State
46-19 of Texas an Employees Life, Accident, and Health Insurance and
46-20 Benefits Fund which shall be administered by the trustee. The
46-21 <Except as provided by Subsection (d) of this section, the>
46-22 contributions of employees, annuitants, <participating school
46-23 districts,> and the state provided for under this Act shall be paid
46-24 into the fund. The fund is available:
46-25 (1) without fiscal year limitation for all payments
46-26 for any coverages provided for under this Act; and
46-27 (2) to pay expenses for administering this Act within
47-1 the limitations that may be specified annually by the legislature.
47-2 (b) Portions <Except as provided by Subsection (d) of this
47-3 section, portions> of the contributions made by employees,
47-4 annuitants, <participating school districts,> and the state shall
47-5 be regularly set aside in the fund as follows: a percentage
47-6 determined by the trustee to be reasonably adequate to pay the
47-7 administrative expenses made available by Subsection (a) of this
47-8 section. The trustee, from time to time and in amounts it
47-9 considers appropriate, may transfer unused funds for administrative
47-10 expenses to the contingency reserves to be used by the trustee only
47-11 for charges, claims, costs, and expenses under the program.
47-12 SECTION 49. Subsection (c), Section 17, Texas Employees
47-13 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
47-14 Texas Insurance Code), is amended to read as follows:
47-15 (c) Each state department <and each participating school
47-16 district> shall keep such records, make such certifications, and
47-17 furnish the trustee with such information and reports as may be
47-18 necessary to enable the trustee to carry out its functions under
47-19 this Act.
47-20 SECTION 50. Subsection (a), Section 18, Texas Employees
47-21 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
47-22 Texas Insurance Code), as amended by Chapters 242 and 391, Acts of
47-23 the 72nd Legislature, Regular Session, 1991, is amended to read as
47-24 follows:
47-25 (a) The group benefits advisory committee is composed of 27
47-26 <25> voting members as provided by this section. The office of the
47-27 attorney general, the office of the state treasurer, the office of
48-1 the comptroller, the Railroad Commission of Texas, the General Land
48-2 Office, and the Department of Agriculture are entitled to be
48-3 represented by one member each on the committee, who may be
48-4 appointed by the governing body of the state agency or elected by
48-5 and from the employees of the agency, as determined by rule by the
48-6 governing body of the agency. One employee shall be elected from
48-7 each of the remaining eight <seven> largest state agencies that are
48-8 governed by appointed officers by and from the employees of those
48-9 agencies. One nonvoting member shall be the executive director of
48-10 the Employees Retirement System of Texas. One member shall be an
48-11 expert in employee benefit issues from the private sector,
48-12 appointed by the governor. One member shall be an expert in
48-13 employee benefits issues from the private sector, appointed by the
48-14 lieutenant governor. One member shall be a retired state employee
48-15 appointed by the trustee. One member shall be a state employee of
48-16 a state agency other than one of the eight <seven> largest state
48-17 agencies, appointed by the trustee. Not more than one employee
48-18 from a particular state agency may serve on the committee. Each of
48-19 the seven largest institutions of higher education, as determined
48-20 by the number of employees on the payroll of an institution, shall
48-21 elect one member of the committee from among persons who have each
48-22 been nominated by a petition signed by at least 300 employees. Two
48-23 <members shall be employees of institutions of higher education
48-24 appointed by the Texas Higher Education Coordinating Board. Five>
48-25 members shall be employees of institutions of higher education,
48-26 other than the seven largest institutions of higher education, who
48-27 are appointed by the Texas Higher Education Coordinating Board
49-1 <elected by and from the institutions of higher education>, but not
49-2 more than one employee shall be from any one institution. <The
49-3 remaining members shall be elected by and from the employees of the
49-4 other state agencies, excluding institutions of higher education,
49-5 and from the employees of participating school districts in a
49-6 manner consonant with the election for membership to the board of
49-7 the Employees Retirement System of Texas, but not more than one
49-8 employee shall be from any one agency or district.> The members
49-9 shall elect a presiding officer from their membership to serve a
49-10 one-year term.
49-11 SECTION 51. Subsections (b) and (c), Section 19, Texas
49-12 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
49-13 Vernon's Texas Insurance Code), are amended to read as follows:
49-14 (b) A surviving spouse of an employee or a retiree who is
49-15 entitled to monthly benefits paid by a retirement system named in
49-16 this Act may, following the death of the employee or retiree, elect
49-17 to retain the spouse's authorized coverages and also retain
49-18 authorized coverages for any dependent of the spouse, at the group
49-19 rate for employees, provided such coverage was previously secured
49-20 by the employee or retiree for the spouse or dependent, and the
49-21 spouse directs the applicable retirement system to deduct required
49-22 contributions from the monthly benefits paid the surviving spouse
49-23 by the retirement system. A surviving dependent of a retiree who
49-24 was receiving monthly benefits paid by a retirement system named in
49-25 this Act may, after the death of the retiree and if the retiree
49-26 leaves no surviving spouse, elect to retain any coverage previously
49-27 secured by the retiree, at the group rate for employees, until the
50-1 dependent becomes ineligible for coverage for a reason other than
50-2 the death of the member of the group. A dependent who makes an
50-3 election under this subsection and who is entitled to monthly
50-4 benefits from a retirement system named in this Act based on the
50-5 service of the deceased retiree must direct the applicable
50-6 retirement system to deduct required contributions for the coverage
50-7 from the monthly benefits paid the surviving dependent by the
50-8 retirement system.
50-9 (c) The surviving spouse of an employee or a retiree who
50-10 designated or selected a time certain annuity option or a surviving
50-11 dependent of a retiree who designated or selected a time certain
50-12 annuity option, upon expiration of the annuity option may retain
50-13 authorized coverages by advance payment of contributions to the
50-14 Employees Retirement System of Texas under rules and regulations
50-15 adopted by the trustee.
50-16 SECTION 52. Chapter 22, Acts of the 57th Legislature, 3rd
50-17 Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
50-18 Statutes), is amended by adding Section 3 to read as follows:
50-19 Sec. 3. (a) A state agency may permit some or all of the
50-20 employees of the agency to participate in an employer-sponsored
50-21 program described by Section 457(f) of the Internal Revenue Code of
50-22 1986, including subsequent amendments of that law.
50-23 (b) Before a state agency begins sponsorship of a program
50-24 under Subsection (a) of this section, the agency shall submit a
50-25 proposal for the program to the Employees Retirement System of
50-26 Texas for its review and comment.
50-27 (c) In this section, "state agency" means a board, office,
51-1 commission, department, institution, court, or other agency in any
51-2 branch of state government.
51-3 SECTION 53. Subsection (c), Section 141, Uniform Act
51-4 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
51-5 Statutes), is amended to read as follows:
51-6 (c) The fee for compulsory inspection of a motor vehicle
51-7 other than a moped, to be made under this Section, shall be Ten
51-8 Dollars and Fifty Cents ($10.50). The fee for compulsory
51-9 inspection of a moped, to be made under this Section, shall be Five
51-10 Dollars and Seventy-five Cents ($5.75). Five Dollars and Fifty
51-11 Cents ($5.50) of each fee shall be paid to the Department and
51-12 shall, except as provided by <Section 815.405, Government Code, or>
51-13 Section 382.0622, Health and Safety Code, be deposited <placed> in
51-14 the Motor Vehicle Inspection Fund for the purpose of paying the
51-15 expense of the administration of this law, after the deduction of
51-16 Two Dollars and Twenty-five Cents ($2.25) of each fee, which shall
51-17 be deposited by the Department in the general revenue fund. The
51-18 Department may require each official inspection station to make an
51-19 advance payment of Five Dollars and Fifty Cents ($5.50) for each
51-20 inspection certificate furnished to it. No<, and the money so
51-21 received shall, except as provided by Section 815.405, Government
51-22 Code, be placed in the Motor Vehicle Inspection Fund, and no>
51-23 further payment to the Department shall be required upon issuance
51-24 of the certificate. If such advance payment has been made, the
51-25 Department shall refund to the inspection station the amount of
51-26 Five Dollars and Fifty Cents ($5.50) for each unissued certificate
51-27 which the inspection station returns to the Department in
52-1 accordance with rules and regulations promulgated by the
52-2 Department. The Texas Natural Resource Conservation Commission
52-3 shall refund to the Department Two Dollars ($2.00) for each unused
52-4 certificate returned to the Department by inspection stations
52-5 licensed by the Department. An inspection station may waive the
52-6 fee otherwise due from the owner of a vehicle inspected under this
52-7 Section if the inspection station has rendered in advance to the
52-8 Department the payment of Five Dollars and Fifty Cents ($5.50) for
52-9 the certificate applied to a vehicle with respect to which the
52-10 owner's fee has been so waived.
52-11 SECTION 54. Subsection (c-4), Section 10, Chapter 88,
52-12 General Laws, Acts of the 41st Legislature, 2nd Called Session,
52-13 1929 (Article 6675a-10, Vernon's Texas Civil Statutes), is amended
52-14 to read as follows:
52-15 (c-4) On Monday of each week each County Tax Collector shall
52-16 submit to the State Department of Highways and Public
52-17 Transportation a carbon copy of the receipt issued for payment of
52-18 each fee received in the preceding week for registration of a log
52-19 loader vehicle under Section 2(l) of this Act and all<. On Monday
52-20 of each week the County Tax Collector shall send to the Employees
52-21 Retirement System of Texas an amount equal to four percent (4%)> of
52-22 the registration fees collected under Section 2(l) of this Act <and
52-23 shall remit the remaining ninety-six percent (96%) to the
52-24 Department. Money sent to the retirement system under this
52-25 subsection shall be deposited in the law enforcement and custodial
52-26 officer supplemental retirement fund>.
52-27 SECTION 55. The following provisions are repealed:
53-1 (1) Subsection (d), Section 813.509, and Sections
53-2 815.005, 815.106, 815.305, 815.316, 815.320, 815.405, 839.104, and
53-3 840.009, Government Code;
53-4 (2) Paragraphs (19), (20), (21), and (22), Subsection
53-5 (a), Section 3, Texas Employees Uniform Group Insurance Benefits
53-6 Act (Article 3.50-2, Vernon's Texas Insurance Code), as added by
53-7 Chapter 391, Acts of the 72nd Legislature, Regular Session, 1991;
53-8 (3) Section 3A, Texas Employees Uniform Group
53-9 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
53-10 Code), as added by Chapter 391, Acts of the 72nd Legislature,
53-11 Regular Session, 1991;
53-12 (4) Section 13C, Texas Employees Uniform Group
53-13 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
53-14 Code);
53-15 (5) Subsection (e), Section 15, Texas Employees
53-16 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
53-17 Texas Insurance Code);
53-18 (6) Subsection (d), Section 16, Texas Employees
53-19 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
53-20 Texas Insurance Code); and
53-21 (7) effective September 1, 1995, Subsection (d),
53-22 Section 813.506, Government Code.
53-23 SECTION 56. The Employees Retirement System of Texas may
53-24 adopt rules to implement the changes in law made by this Act in the
53-25 composition of the group benefits advisory committee under the
53-26 Texas Employees Uniform Group Insurance Benefits Act (Article
53-27 3.50-2, Vernon's Texas Insurance Code).
54-1 SECTION 57. The Legislative Budget Board shall perform a
54-2 study of the law enforcement and custodial officer supplemental
54-3 retirement fund and the program supported by that fund. The study
54-4 shall include an examination of the membership in the program,
54-5 including its potential for growth, and an examination of
54-6 appropriate methods of financing the program. The board shall
54-7 include its findings and recommendations as a result of the study
54-8 in a report to the 74th Legislature.
54-9 SECTION 58. (a) Except as provided by Subsection (b) of
54-10 this section, this Act takes effect September 1, 1993.
54-11 (b) This section and Sections 2 and 29 of this Act take
54-12 effect immediately. Sections 22 and 23 of this Act take effect
54-13 September 1, 1995.
54-14 SECTION 59. The importance of this legislation and the
54-15 crowded condition of the calendars in both houses create an
54-16 emergency and an imperative public necessity that the
54-17 constitutional rule requiring bills to be read on three several
54-18 days in each house be suspended, and this rule is hereby suspended,
54-19 and that this Act take effect and be in force according to its
54-20 terms, and it is so enacted.