1-1 By: Barrientos S.B. No. 1181
1-2 (In the Senate - Filed March 12, 1993; March 16, 1993, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 21, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; April 21, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Harris of Dallas x
1-10 Rosson x
1-11 Carriker x
1-12 Henderson x
1-13 Leedom x
1-14 Lucio x
1-15 Luna x
1-16 Nelson x
1-17 Patterson x
1-18 Shelley x
1-19 Sibley x
1-20 West x
1-21 Whitmire x
1-22 COMMITTEE SUBSTITUTE FOR S.B. No. 1181 By: Henderson
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to the powers and duties of and systems and programs under
1-26 the Employees Retirement System of Texas.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Section 803.202, Government Code, is amended to
1-29 read as follows:
1-30 Sec. 803.202. SERVICE IN CERTAIN RETIREMENT SYSTEMS.
1-31 (a) The board of trustees of the Employees Retirement System of
1-32 Texas by rule may:
1-33 (1) consider the classes of service in the Employees
1-34 Retirement System of Texas as if they were, for purposes of this
1-35 chapter, classes in separate statewide retirement systems; or
1-36 (2) permit a person who is retiring exclusively from
1-37 retirement systems administered by the board to use the shortest
1-38 length-of-service requirement provided for retirement in any class
1-39 in which the person has service credit.
1-40 (b) A member of a retirement system administered by the
1-41 board of trustees of the Employees Retirement System of Texas may
1-42 reestablish service credit previously canceled in another
1-43 retirement system administered by the board if the member holds a
1-44 position included in the system of which the person is a member and
1-45 has held the position for at least 12 months. The method of
1-46 reestablishment and the amount to be deposited are as provided by
1-47 the applicable law providing for reestablishment of service credit
1-48 generally in the particular retirement system.
1-49 SECTION 2. Subtitle A, Title 8, Government Code, is amended
1-50 by adding Chapter 805 to read as follows:
1-51 CHAPTER 805. CREDIT TRANSFER BETWEEN EMPLOYEES RETIREMENT
1-52 SYSTEM OF TEXAS AND TEACHER RETIREMENT SYSTEM OF TEXAS
1-53 Sec. 805.001. DEFINITIONS. In this chapter:
1-54 (1) "Employees retirement system" means the Employees
1-55 Retirement System of Texas.
1-56 (2) "Member" means a person having membership in the
1-57 employees retirement system or the teacher retirement system under
1-58 statutes and rules governing membership in the respective systems.
1-59 (3) "Service credit" has the meaning assigned, as
1-60 applicable, by Section 811.001 or Section 821.001.
1-61 (4) "System" means the employees retirement system or
1-62 the teacher retirement system.
1-63 (5) "Teacher retirement system" means the Teacher
1-64 Retirement System of Texas.
1-65 Sec. 805.002. ELIGIBILITY TO TRANSFER SERVICE CREDIT.
1-66 (a) A member of both the employees retirement system and the
1-67 teacher retirement system who applies for service or disability
1-68 retirement from either system may transfer to that system service
2-1 credit established in the other system if the member has at least
2-2 three years of service credit in the system from which the member
2-3 is retiring.
2-4 (b) A member of both the employees retirement system and the
2-5 teacher retirement system who has less than three years of service
2-6 credit in the system in which the person most recently received
2-7 service credit may, at the time the person applies for service or
2-8 disability retirement from the other system, transfer service
2-9 credit to that system from the system in which the person most
2-10 recently received service credit.
2-11 (c) Except as provided by Subsections (e) and (f), a member
2-12 of the employees retirement system or the teacher retirement system
2-13 who formerly was a member of the other system may reinstate or
2-14 purchase service credit in the other system for the purpose of
2-15 making a transfer under Subsection (a) if the member has at least
2-16 three years of service credit in the system in which the person
2-17 currently is a member.
2-18 (d) Except as provided by Subsections (e) and (f), the
2-19 designated beneficiary of a member of the employees retirement
2-20 system or the teacher retirement system who dies while holding a
2-21 position included in the membership of the system may make a
2-22 transfer under Subsection (a) and a reinstatement or purchase under
2-23 Subsection (c) if the deceased member had at least three years of
2-24 service credit in the system in which the member was performing
2-25 service at the time of death. The designated beneficiary may make
2-26 a transfer under Subsection (b) if the deceased member had less
2-27 than three years of service credit in the system in which the
2-28 member was performing service at the time of death. If a member is
2-29 not survived by a designated beneficiary, the personal
2-30 representative of the member's estate has the same right under this
2-31 subsection as a designated beneficiary.
2-32 (e) Service credit that is canceled by a termination of
2-33 membership that occurs after August 31, 1993, may be reinstated and
2-34 other service purchased only by a member of the system in which the
2-35 service is creditable who meets the general requirements for
2-36 reinstatement or purchase of service credit in that system.
2-37 (f) A person who is receiving retirement benefits based on
2-38 the person's service credited in one system and who applies for
2-39 service or disability retirement from the other system is not
2-40 eligible to transfer service credit under this chapter. The
2-41 designated beneficiary, or the personal representative of the
2-42 estate, of a person who at the time of death was receiving benefits
2-43 based on the person's service credited in one system and who held a
2-44 position included in the other system is not eligible to transfer
2-45 service credit under this chapter.
2-46 Sec. 805.003. PAYMENTS TO REINSTATE OR PURCHASE SERVICE
2-47 CREDIT. The cost of reinstating or purchasing service credit under
2-48 Section 805.002 is determined according to the statutes that govern
2-49 the reinstatement or purchase of the type of service credit in the
2-50 system in which it is to be reinstated or purchased. All payments
2-51 for service credit reinstated or purchased under Section 805.002
2-52 must be made before retirement or the first payment of a death
2-53 benefit annuity, as applicable.
2-54 Sec. 805.004. TRANSFER OF SERVICE CREDIT. (a) A person who
2-55 elects to transfer service credit under Section 805.002 shall
2-56 notify, in the manner required by the system to which the credit
2-57 will be transferred, the system of the election. The system shall
2-58 notify the other system of the election.
2-59 (b) The systems by rule or agreement shall determine the
2-60 manner in which the service credit is transferred.
2-61 (c) A transfer of service credit under this chapter cancels
2-62 service credit and, if applicable, membership in the system from
2-63 which it is transferred.
2-64 Sec. 805.005. APPLICABILITY OF PROPORTIONATE RETIREMENT
2-65 PROGRAM. An election to transfer service credit under Section
2-66 805.002 is an alternative to participation in the program provided
2-67 by Chapter 803, except that a person having service credit in the
2-68 employees retirement system, the teacher retirement system, and
2-69 another public retirement system participating in that program may
2-70 transfer service credit under this chapter, if eligible, and use
3-1 the combined service credit for purposes of the program provided by
3-2 Chapter 803.
3-3 Sec. 805.006. CREDITING OF TRANSFERRED SERVICE CREDIT;
3-4 REFUND. (a) Except as provided by Subsections (b) and (c),
3-5 service credit transferred under this chapter is credited in the
3-6 system to which it is transferred according to rules of the teacher
3-7 retirement system determining the amount of service creditable.
3-8 (b) Not more than one month of service credit may be granted
3-9 for service during that month.
3-10 (c) A person who transfers service credit under this chapter
3-11 may not receive service credit for all military service performed
3-12 in an amount that exceeds the maximum amount creditable in the
3-13 system to which credit is transferred. A person is eligible for a
3-14 refund from the system from which credit is transferred under this
3-15 section of contributions made for military service credit, other
3-16 than any amount that represents a fee, that exceeds the maximum
3-17 amount creditable.
3-18 Sec. 805.007. EFFECT OF TRANSFER OF SERVICE CREDIT. (a) A
3-19 person who transfers service credit under this chapter forfeits all
3-20 rights to benefits payable by the system from which it is
3-21 transferred and is not an annuitant of that system for any purpose,
3-22 including the payment of postretirement increases to annuitants of
3-23 that system.
3-24 (b) Service credit transferred under this chapter is
3-25 considered as if it had been granted for service performed under
3-26 the system to which it has been transferred and is used in
3-27 satisfying minimum service requirements for retirement and in
3-28 determining the amount of benefits that are based on the amount of
3-29 a person's service credit:
3-30 (1) except that a person's average salary for the
3-31 purpose of computing an annuity may be determined only from service
3-32 credit that was originally established in one system and that
3-33 results in the higher average salary; and
3-34 (2) except as provided by Section 805.006.
3-35 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS. (a) The
3-36 system from which a person's service credit is transferred under
3-37 this chapter shall transfer to the other system, at the time the
3-38 annuity based on the service credit becomes payable, an amount
3-39 equal to the portion of the actuarial value of the annuity that
3-40 represents the percentage of the total amount of the person's
3-41 service credited in both systems that was credited in the system
3-42 from which the credit is being transferred.
3-43 (b) The systems jointly by rule shall adopt actuarial tables
3-44 and investment assumptions to be used in computing actuarial values
3-45 under this section.
3-46 (c) For the purpose of computing an amount to be transferred
3-47 under this section, service credit in either system must be
3-48 considered as if it were credited under rules of the teacher
3-49 retirement system determining the amount of service creditable.
3-50 (d) An amount transferred under this section is payable from
3-51 amounts credited to the person's individual account and amounts
3-52 credited to the account in which the system places state
3-53 contributions. An amount received under this section shall be
3-54 deposited in the account from which the system receiving the amount
3-55 pays annuities.
3-56 (e) The system to which a transfer is made under this
3-57 section is responsible for paying the annuity for which the
3-58 transfer was made, including the entire amount of any increase in
3-59 the annuity granted after the transfer.
3-60 Sec. 805.009. RULES. In addition to the rules specifically
3-61 required by this chapter, a system may adopt other rules for the
3-62 administration of this chapter.
3-63 SECTION 3. Subchapter B, Chapter 813, Government Code, is
3-64 amended by adding Section 813.104 to read as follows:
3-65 Sec. 813.104. Alternative Payments to Establish or
3-66 Reestablish Service Credit. (a) A member who is otherwise
3-67 eligible may establish or reestablish service creditable in the
3-68 retirement system by making payments as provided by this section in
3-69 lieu of lump-sum payments otherwise authorized or required by this
3-70 subtitle.
4-1 (b) A payment authorized by this section consists of the
4-2 contribution required to establish or reestablish at least one year
4-3 of service credit, including any required interest and membership
4-4 fees, except that a person's last in a series of payments under
4-5 this section may be for a period of remaining service that is less
4-6 than one year.
4-7 (c) The retirement system shall grant the applicable amount
4-8 of service credit after each payment is made under this section.
4-9 (d) Payments may not be made under this section:
4-10 (1) to establish or reestablish service credit of a
4-11 person who has retired or died; or
4-12 (2) to establish current service under Section
4-13 813.201.
4-14 (e) The retirement system may adopt rules to administer this
4-15 section.
4-16 SECTION 4. Subchapter B, Chapter 813, Government Code, is
4-17 amended by adding Section 813.105 to read as follows:
4-18 Sec. 813.105. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
4-19 SERVICE CREDIT. (a) A contributing member who is otherwise
4-20 eligible may establish or reestablish service creditable in the
4-21 retirement system by making payments as provided by this section in
4-22 lieu of lump-sum payments otherwise authorized or required by this
4-23 subtitle.
4-24 (b) A payment authorized by this section consists of a
4-25 monthly payroll deduction in an amount not less than one-twelfth of
4-26 the contribution required to establish or reestablish at least one
4-27 year of service credit, including any required interest and
4-28 membership fee, except as provided by Subsection (c).
4-29 (c) Payments to establish or reestablish service credit of
4-30 less than one year or to establish or reestablish service credit by
4-31 a member who plans to retire in less than a year may be made by
4-32 payroll deduction for a period determined by the retirement system.
4-33 (d) Payroll deductions for payments under this section shall
4-34 be made and submitted to the retirement system at the times and in
4-35 the manner provided for member contributions under Section 815.402.
4-36 (e) The retirement system shall credit a member's payments
4-37 made under this section to a suspense account in the trust fund
4-38 until the sum of the payments equals the amount required for one
4-39 year of service credit or the amount required for credit under
4-40 Subsection (c), at which time the retirement system shall deposit
4-41 the payments in the appropriate accounts in the trust fund and
4-42 grant the applicable amount of service credit.
4-43 (f) A member who, while making payments under this section,
4-44 ceases to hold a position or withdraws the authority for payroll
4-45 deductions may contract with the retirement system for an
4-46 alternative method of continuing the payments. The retirement
4-47 system may refund payments credited to the suspense account and not
4-48 transferred to trust fund accounts if a remaining payment becomes
4-49 delinquent by more than 60 days.
4-50 (g) Payments may not be made under this section to establish
4-51 or reestablish service credit of a person who has retired or died,
4-52 except that a beneficiary may make payment in a lump sum for the
4-53 remainder of service credit for which payments were begun before
4-54 the member's death.
4-55 (h) The retirement system may adopt rules to administer this
4-56 section.
4-57 SECTION 5. Subchapter B, Chapter 813, Government Code, is
4-58 amended by adding Section 813.106 to read as follows:
4-59 Sec. 813.106. SERVICE NOT PREVIOUSLY ESTABLISHED. The state
4-60 shall make contributions for service not previously established
4-61 that is established under Section 813.104 or 813.105 in the amount
4-62 provided by Section 813.202(e) for membership service or the amount
4-63 provided by Section 813.302(d) for military service, as applicable.
4-64 The state contributions will be made at the time the service credit
4-65 is granted.
4-66 SECTION 6. Subsection (b), Section 813.304, Government Code,
4-67 is amended to read as follows:
4-68 (b) The retirement system shall use military service credit
4-69 in computing service retirement or nonoccupational disability
4-70 retirement benefits of a member of the employee class only if the
5-1 member has, without military service credit, at least five <10>
5-2 years of service credit in that class.
5-3 SECTION 7. Section 813.504, Government Code, is amended to
5-4 read as follows:
5-5 Sec. 813.504. Eligibility for Service Credit Previously
5-6 Canceled. A member may reestablish service credit previously
5-7 canceled in the retirement system if the member, after cancellation
5-8 of the credit, holds a position for six <24> months that is
5-9 included in the employee class.
5-10 SECTION 8. Subsection (a), Section 813.509, Government Code,
5-11 is amended to read as follows:
5-12 (a) A member who retires based on service or a disability is
5-13 entitled to service credit in the retirement system for the
5-14 member's sick leave that has accumulated and is unused on the last
5-15 day of employment. Sick leave is creditable in the retirement
5-16 system at the rate of one month of service credit for each 20 <40>
5-17 days, or 160 <320> hours, of accumulated sick leave. An increment
5-18 of less than 20 <40> days is not creditable.
5-19 SECTION 9. Subchapter F, Chapter 813, Government Code, is
5-20 amended by adding Section 813.510 to read as follows:
5-21 Sec. 813.510. CREDIT FOR COUNTY CHILD WELFARE BOARD SERVICE.
5-22 (a) An eligible member may, before September 1, 1994, claim
5-23 service credit not otherwise creditable in the retirement system
5-24 for service performed before September 1, 1980, for a county child
5-25 welfare board.
5-26 (b) A member eligible to claim credit under this section is
5-27 one who:
5-28 (1) was a contributing member on August 31, 1993,
5-29 having performed at least 24 months of continuous state service as
5-30 of that date; and
5-31 (2) was subject during the period of welfare board
5-32 service to personnel rules of and direct supervision by the Texas
5-33 Department of Human Services or its predecessor.
5-34 (c) A member may claim credit under this section by
5-35 depositing with the retirement system in a lump sum:
5-36 (1) a contribution based on the member's monthly
5-37 salary during the period of service for a county child welfare
5-38 board and computed for the number of months for which credit is
5-39 sought at the combined rates currently required of the state and
5-40 employee members of the system for new service;
5-41 (2) interest computed on the basis of the state fiscal
5-42 year at an annual rate of 10 percent from the date the service was
5-43 performed to the date of deposit; and
5-44 (3) any membership fees required of members of the
5-45 system during the period beginning on the date the service began
5-46 and ending on the date of deposit.
5-47 (d) The retirement system shall deposit the salary
5-48 contribution in the member's individual account in the employees
5-49 saving account, interest in the state accumulation account, and
5-50 membership fees in the expense account.
5-51 (e) The retirement system shall determine the amount to be
5-52 deposited in each case and may not grant service credit under this
5-53 section until the required amount has been paid in full.
5-54 (f) Service credit may not be established under this section
5-55 if the service is currently credited in another public retirement
5-56 system.
5-57 (g) This section expires October 1, 1994.
5-58 SECTION 10. Subchapter G, Chapter 814, Government Code, is
5-59 amended by adding Section 814.603 to read as follows:
5-60 Sec. 814.603. SUPPLEMENTAL ONE-TIME PAYMENT. (a) The
5-61 retirement system shall make a supplemental payment to persons
5-62 whose annuities are described by Section 814.107, 814.207, 814.305,
5-63 or 814.601(a) and that are based on service retirements, disability
5-64 retirements, or deaths. This supplemental payment is in addition
5-65 to the regular monthly annuity payment. Each person who receives
5-66 an annuity described by this subsection is entitled to receive one
5-67 payment equal to 10 percent of one month's annuity payment for each
5-68 fiscal year before the fiscal year beginning September 1, 1993, in
5-69 which the annuity has been paid. A supplemental payment may not
5-70 exceed 350 percent of a monthly annuity. Only a person whose
6-1 annuity began in the fiscal year ending August 31, 1993, or earlier
6-2 is eligible for the supplemental payment. Supplemental payments
6-3 under this subsection must comply with Section 811.006.
6-4 (b) The retirement system shall pay the supplemental payment
6-5 provided by Subsection (a) from the retirement annuity reserve
6-6 account and may transfer to that account from the state
6-7 accumulation account any portion of the amount that exceeds the
6-8 amount in the retirement annuity reserve account available to
6-9 finance this supplemental payment and that is actuarially
6-10 determined to be necessary to finance the supplemental payment.
6-11 (c) The board of trustees may adopt rules to implement the
6-12 payment, including rules that govern the timing of the supplemental
6-13 payment described by Subsection (a).
6-14 (d) The board of trustees may by rule authorize similar
6-15 supplemental payments in the fiscal year ending August 31, 1995, if
6-16 the payments are in compliance with Section 811.006.
6-17 SECTION 11. Section 815.002, Government Code, is amended by
6-18 adding Subsection (d) to read as follows:
6-19 (d) Appointments to the board shall be made without regard
6-20 to the race, color, disability, sex, religion, age, or national
6-21 origin of the appointees.
6-22 SECTION 12. Subchapter A, Chapter 815, Government Code, is
6-23 amended by adding Section 815.0031 to read as follows:
6-24 Sec. 815.0031. INELIGIBILITY FOR BOARD AND OF CERTAIN
6-25 EMPLOYEES. (a) A person is not eligible for appointment or
6-26 election to the board if the person or the person's spouse:
6-27 (1) is employed by or participates in the management
6-28 of a business entity or other organization receiving funds from the
6-29 retirement system; or
6-30 (2) owns or controls, directly or indirectly, more
6-31 than a 10 percent interest in a business entity or other
6-32 organization receiving funds from the retirement system.
6-33 (b) A paid officer, employee, or consultant of a Texas trade
6-34 association in the field of insurance or investment may not be a
6-35 trustee or an employee of the retirement system who is exempt from
6-36 the state's position classification plan or is compensated at or
6-37 above the amount prescribed by the General Appropriations Act for
6-38 step 1, salary group 17, of the position classification salary
6-39 schedule.
6-40 (c) A person who is the spouse of a paid officer, manager,
6-41 or consultant of a Texas trade association in the field of
6-42 insurance or investment may not be a trustee and may not be an
6-43 employee of the retirement system who is exempt from the state's
6-44 position classification plan or is compensated at or above the
6-45 amount prescribed by the General Appropriations Act for step 1,
6-46 salary group 17, of the position classification salary schedule.
6-47 (d) For the purposes of this section, a Texas trade
6-48 association is a nonprofit, cooperative, and voluntarily joined
6-49 association of business or professional competitors in this state
6-50 designed to assist its members and its industry or profession in
6-51 dealing with mutual business or professional problems and in
6-52 promoting their common interest.
6-53 (e) A person may not serve as a trustee or act as the
6-54 general counsel to the board if the person is required to register
6-55 as a lobbyist under Chapter 305 because of the person's activities
6-56 for compensation on behalf of a business or an association related
6-57 to the operation of the board.
6-58 SECTION 13. Subchapter A, Chapter 815, Government Code, is
6-59 amended by adding Section 815.008 to read as follows:
6-60 Sec. 815.008. GROUNDS FOR REMOVAL OF TRUSTEE. (a) It is a
6-61 ground for removal from the board if a trustee:
6-62 (1) violates a prohibition established by Section
6-63 815.0031;
6-64 (2) cannot discharge the person's duties for a
6-65 substantial part of the term for which the person is appointed or
6-66 elected because of illness or disability; or
6-67 (3) is absent from more than half of the regularly
6-68 scheduled board meetings that the person is eligible to attend
6-69 during a calendar year unless the absence is excused by majority
6-70 vote of the board.
7-1 (b) The validity of an action of the board is not affected
7-2 by the fact that it is taken when a ground for removal of a trustee
7-3 exists.
7-4 (c) If the executive director has knowledge that a potential
7-5 ground for removal exists, the executive director shall notify the
7-6 chairman of the board of the ground. The chairman shall then
7-7 notify the appropriate appointing officer, if any, that a potential
7-8 ground for removal exists.
7-9 SECTION 14. Subchapter B, Chapter 815, Government Code, is
7-10 amended by adding Section 815.111 to read as follows:
7-11 Sec. 815.111. MISCELLANEOUS BOARD DUTIES. (a) The board
7-12 shall provide to its trustees and employees, as often as necessary,
7-13 information regarding their qualification for office or employment
7-14 under this chapter and their responsibilities under applicable laws
7-15 relating to standards of conduct for state officers or employees.
7-16 (b) The board shall develop and implement policies that
7-17 clearly define the respective responsibilities of the board and the
7-18 staff of the retirement system.
7-19 (c) The board shall prepare information of interest to the
7-20 retirement system's members describing the functions of the system
7-21 and the system's procedures by which complaints are filed with and
7-22 resolved by the system. The system shall make the information
7-23 available to the system's members and appropriate state agencies.
7-24 (d) The board by rule shall establish methods by which
7-25 members are notified of the name, mailing address, and telephone
7-26 number of the retirement system for the purpose of directing
7-27 complaints to the system.
7-28 (e) The board shall develop and implement policies that
7-29 provide the public with a reasonable opportunity to appear before
7-30 the board and to speak on any issue under the jurisdiction of the
7-31 board.
7-32 (f) The board shall prepare and maintain a written plan that
7-33 describes how a person who does not speak English can be provided
7-34 reasonable access to the board's programs. The board shall also
7-35 comply with federal and state laws for program and facility
7-36 accessibility.
7-37 SECTION 15. Subchapter C, Chapter 815, Government Code, is
7-38 amended by adding Section 815.212 to read as follows:
7-39 Sec. 815.212. EMPLOYMENT PRACTICES. (a) The executive
7-40 director or the executive director's designee shall develop an
7-41 intra-agency career ladder program. The program shall require
7-42 intra-agency posting of all non-entry-level positions concurrently
7-43 with any public posting.
7-44 (b) The executive director or the executive director's
7-45 designee shall develop a system of annual performance evaluations.
7-46 All merit pay for retirement system employees must be based on the
7-47 system established under this subsection.
7-48 (c) The executive director or the executive director's
7-49 designee shall prepare and maintain a written policy statement to
7-50 assure implementation of a program of equal employment opportunity
7-51 under which all personnel transactions are made without regard to
7-52 race, color, disability, sex, religion, age, or national origin.
7-53 The policy statement must include:
7-54 (1) personnel policies, including policies relating to
7-55 recruitment, evaluation, selection, appointment, training, and
7-56 promotion of personnel;
7-57 (2) a comprehensive analysis of the retirement
7-58 system's work force that meets federal and state guidelines;
7-59 (3) procedures by which a determination can be made of
7-60 significant underuse in the retirement system's work force of all
7-61 persons for whom federal or state guidelines encourage a more
7-62 equitable balance; and
7-63 (4) reasonable methods to appropriately address those
7-64 areas of significant underuse.
7-65 (d) A policy statement prepared under Subsection (c) must
7-66 cover an annual period, be updated at least annually, and be filed
7-67 with the governor's office.
7-68 (e) The governor's office shall deliver a biennial report to
7-69 the legislature based on the information received under Subsection
7-70 (d). The report may be made separately or as a part of other
8-1 biennial reports made to the legislature.
8-2 SECTION 16. Subsections (a) and (b), Section 815.301,
8-3 Government Code, are amended to read as follows:
8-4 (a) The board of trustees shall:
8-5 (1) invest the assets of the retirement system<, other
8-6 than assets of the law enforcement and custodial officer
8-7 supplemental retirement fund,> as a single fund without distinction
8-8 as to their source; and
8-9 (2) hold securities purchased with the assets
8-10 described by Subsection (a)(1) collectively for the proportionate
8-11 benefit of:
8-12 (A) all accounts in the trust fund that are
8-13 listed in Section 815.310(b); and
8-14 (B) the law enforcement and custodial officer
8-15 supplemental retirement fund.
8-16 (b) The <Except for assets of the law enforcement and
8-17 custodial officer supplemental retirement fund, the> board of
8-18 trustees may, under the standard of care provided by Section
8-19 815.307, invest and reinvest any of the retirement system's assets
8-20 and may commingle assets of the trust fund and the law enforcement
8-21 and custodial officer supplemental retirement fund with the assets
8-22 of the Judicial Retirement System of Texas Plan Two for investment
8-23 purposes, as long as proportionate ownership records are maintained
8-24 and credited. Investments may include home office facilities,
8-25 including land, equipment, and office building, used in
8-26 administering the retirement system.
8-27 SECTION 17. Subsection (b), Section 815.310, Government
8-28 Code, is amended to read as follows:
8-29 (b) All assets of the trust fund shall be credited,
8-30 according to the purpose for which they are held, to one of the
8-31 following accounts:
8-32 (1) employees saving account;
8-33 (2) state accumulation account;
8-34 (3) retirement annuity reserve account;
8-35 (4) interest account; or
8-36 (5) expense account<; or>
8-37 <(6) benefit increase reserve account>.
8-38 SECTION 18. Subsection (a), Section 815.313, Government
8-39 Code, is amended to read as follows:
8-40 (a) The retirement system shall transfer to the retirement
8-41 annuity reserve account money as required by Section 815.318,
8-42 815.319, <815.320,> or 815.321.
8-43 SECTION 19. Subsection (a), Section 815.317, Government
8-44 Code, is amended to read as follows:
8-45 (a) The retirement system shall deposit in the law
8-46 enforcement and custodial officer supplemental retirement fund
8-47 state contributions and other <payments made as provided by Section
8-48 815.405, any> appropriations made by the legislature to the fund<,
8-49 money collected under Section 2(l), Chapter 88, General Laws, Acts
8-50 of the 41st Legislature, 2nd Called Session, 1929 (Article 6675a 2,
8-51 Vernon's Texas Civil Statutes),> and proceeds from investment of
8-52 the fund.
8-53 SECTION 20. Section 815.318, Government Code, is amended to
8-54 read as follows:
8-55 Sec. 815.318. Transfer of Assets From Interest Account.
8-56 (a) The board of trustees shall transfer from the interest account
8-57 to the employees saving account amounts of interest computed under
8-58 Section 815.311 at the following times:
8-59 (1) as required during the fiscal year for a member's
8-60 account in the retirement system that is closed before the last day
8-61 of the fiscal year; and
8-62 (2) as of the last day of the fiscal year for a
8-63 member's account that is not closed before the last day of the
8-64 fiscal year.
8-65 (b) As required during the year, the board of trustees shall
8-66 transfer from the interest account to the expense account amounts
8-67 it determines necessary for the payment of the retirement system's
8-68 expenses that exceed the amount of money available for those
8-69 expenses.
8-70 (c) As of the last day of each fiscal year, the board of
9-1 trustees shall transfer from the interest account to the retirement
9-2 annuity reserve account an amount equal to:
9-3 (1) five percent of the mean amount in the retirement
9-4 annuity reserve account for that fiscal year; or
9-5 (2) an amount computed at a greater rate if the
9-6 actuary recommends the greater rate to finance adequately the
9-7 annuities payable from the retirement annuity reserve account.
9-8 (d) <As of the last day of each fiscal year, the board of
9-9 trustees shall transfer from the interest account to the benefit
9-10 increase account an amount computed at the rate set by the board
9-11 under Section 815.106.>
9-12 <(e)> After making the transfers required by this section,
9-13 the board of trustees, as of the last day of each fiscal year,
9-14 shall transfer the amount remaining in the interest account to the
9-15 state accumulation account.
9-16 SECTION 21. Subsection (c), Section 815.401, Government
9-17 Code, is amended to read as follows:
9-18 (c) If the legislature appropriates, on behalf of each
9-19 contributing member for any fiscal year, a membership fee to be
9-20 deposited in the expense account in an amount equal to or greater
9-21 than the membership fee required by Subsection (a), the members are
9-22 not required to pay the membership fee for that year. The
9-23 retirement system may apply the membership fee to the
9-24 administration of any program administered by the board of
9-25 trustees.
9-26 SECTION 22. Section 815.403, Government Code, is amended by
9-27 amending Subsections (a) and (b) and by adding Subsection (g) to
9-28 read as follows:
9-29 (a) During each fiscal year, the state shall contribute to
9-30 the retirement system:
9-31 (1) an amount equal to 7.4 percent of the total
9-32 compensation of all members of the retirement system for that year;
9-33 (2) money to pay lump-sum death benefits for retirees
9-34 under Section 814.501;
9-35 (3) an amount for the law enforcement and custodial
9-36 officer supplemental retirement fund equal to 2.13 percent of the
9-37 aggregate state compensation of all custodial and law enforcement
9-38 officers for that year;
9-39 (4) money necessary for the administration <and
9-40 payment> of <benefits from> the law enforcement and custodial
9-41 officer supplemental retirement fund; and
9-42 (5) <(4)> money for service credit not previously
9-43 established, as provided by Section 813.202(e) or 813.302(d).
9-44 (b) Before November 2 of each even-numbered year, the
9-45 retirement system shall certify to the Legislative Budget Board and
9-46 to the budget division of the governor's office for review:
9-47 (1) an estimate of the amount necessary to pay the
9-48 state's contribution under Subsections (a)(1), (a)(2), (a)(3), and
9-49 (a)(5) <(a)(4)> for the following biennium;
9-50 <(2) the estimated amount, based on actuarial
9-51 valuations, of appropriated funds required in addition to other
9-52 available money to finance all benefits provided from the law
9-53 enforcement and custodial officer supplemental retirement fund for
9-54 the following biennium;>
9-55 <(3) the estimated amount, based on actuarial
9-56 valuations, of appropriated funds required for the following
9-57 biennium to fully finance, within a period of not more than 36
9-58 years after September 1, 1979, liabilities of the law enforcement
9-59 and custodial officer supplemental retirement fund accrued because
9-60 of service performed before September 1, 1979;> and
9-61 (2) <(4)> as a separate item, an estimate of the
9-62 amount required to administer the law enforcement and custodial
9-63 officer supplemental retirement fund for the following biennium.
9-64 (g) The contributions from the state to the law enforcement
9-65 and custodial officer supplemental retirement fund may be made only
9-66 from the general revenue fund.
9-67 SECTION 23. Section 815.505, Government Code, is amended to
9-68 read as follows:
9-69 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
9-70 CUSTODIAL OFFICERS. Not later than the 12th day of the month
10-1 following the month in which a person begins or ceases employment
10-2 as a law enforcement officer or custodial officer <As of the last
10-3 day of each fiscal year>, the <Department of> Public Safety
10-4 Commission, the Texas Alcoholic Beverage Commission, the Parks and
10-5 Wildlife Commission <Department>, or <the State Purchasing and
10-6 General Services Commission, and> the Texas Board <Department> of
10-7 Criminal Justice, as applicable, <Corrections> shall certify to the
10-8 retirement system, in the manner prescribed by the system, the name
10-9 of the employee and such other information as the system determines
10-10 is necessary for the crediting of service and financing of benefits
10-11 under this subtitle <the names of employees and the amount of
10-12 service each employee performed as a law enforcement officer or
10-13 custodial officer during that fiscal year>.
10-14 SECTION 24. Subchapter F, Chapter 815, Government Code, is
10-15 amended by adding Section 815.5071 to read as follows:
10-16 Sec. 815.5071. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
10-17 Section 811.005 and to the extent required as a condition of plan
10-18 qualification under Section 401(a) of the Internal Revenue Code of
10-19 1986 (26 U.S.C. Section 401), the retirement system shall, in
10-20 accordance with Section 401(a)(31) of the Internal Revenue Code of
10-21 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
10-22 the distributee of an eligible rollover distribution to elect to
10-23 have the distribution paid directly to an eligible retirement plan
10-24 specified by the distributee in the form of a direct
10-25 trustee-to-trustee transfer. The board of trustees may adopt rules
10-26 to carry out this section. Terms used in this section have the
10-27 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
10-28 United States Code).
10-29 SECTION 25. Subchapter F, Chapter 815, Government Code, is
10-30 amended by adding Section 815.508 to read as follows:
10-31 Sec. 815.508. COMPLAINT FILES. (a) The retirement system
10-32 shall keep an information file about each complaint filed with the
10-33 system that the system has authority to resolve.
10-34 (b) If a written complaint is filed with the retirement
10-35 system that the system has authority to resolve, the system, at
10-36 least quarterly and until final disposition of the complaint, shall
10-37 notify the parties to the complaint of the status of the complaint
10-38 unless the notice would jeopardize an undercover investigation.
10-39 SECTION 26. Subchapter F, Chapter 815, Government Code, is
10-40 amended by adding Section 815.509 to read as follows:
10-41 Sec. 815.509. ADVISORY COMMITTEES. (a) The board of
10-42 trustees may establish advisory committees as it considers
10-43 necessary to assist it in performing its duties. Members of
10-44 advisory committees established under this section serve at the
10-45 pleasure of the board.
10-46 (b) Notwithstanding any other law to the contrary, the board
10-47 of trustees by rule shall determine the amount and manner of any
10-48 compensation or expense reimbursement to be paid members of an
10-49 advisory committee performing service for the retirement system for
10-50 performing the work of the advisory committee. All compensation
10-51 and expense reimbursements for an advisory committee established
10-52 under this section are payable from the expense account.
10-53 SECTION 27. Before October 1, 1995, the Public Safety
10-54 Commission, the Texas Alcoholic Beverage Commission, the Parks and
10-55 Wildlife Commission, and the Texas Board of Criminal Justice shall
10-56 certify to the Employees Retirement System of Texas, in the manner
10-57 prescribed by the retirement system, the name of each person
10-58 employed on September 1, 1995, by the particular agency as a law
10-59 enforcement officer, as defined by Section 811.001, Government
10-60 Code, or a custodial officer, as defined by that section, and such
10-61 other information as the system determines is necessary for the
10-62 crediting of service and financing of benefits under Subtitle B,
10-63 Title 8, Government Code.
10-64 SECTION 28. (a) All persons who were employed by the Texas
10-65 Rehabilitation Commission on August 31, 1993, who were contributing
10-66 members of the Teacher Retirement System of Texas on that date, and
10-67 who remain employees of the Texas Rehabilitation Commission on
10-68 September 1, 1993, become members of the Employees Retirement
10-69 System of Texas on the latter date.
10-70 (b) At the time of the retirement or death of a person
11-1 described by Subsection (a) of this section, the Teacher Retirement
11-2 System of Texas and the Employees Retirement System of Texas shall
11-3 make a computation and transfer of money in the manner provided by
11-4 Section 805.008, Government Code, as added by this Act, and the
11-5 person's service credit in the Teacher Retirement System of Texas
11-6 will be transferred to the Employees Retirement System of Texas.
11-7 The Employees Retirement System of Texas has the same
11-8 responsibility for payments after retirement or death as is
11-9 provided by Section 805.008, Government Code, as added by this Act.
11-10 (c) Notwithstanding Chapter 805, Government Code, as added
11-11 by this Act, a person who becomes a member of the Employees
11-12 Retirement System of Texas under this section is not eligible to
11-13 transfer service credit from the Employees Retirement System of
11-14 Texas to the Teacher Retirement System of Texas.
11-15 SECTION 29. (a) A retiree of the Employees Retirement
11-16 System of Texas who at the time of retirement had at least 25 years
11-17 of service credit in the retirement system and has served as the
11-18 executive head of a legislative service agency is eligible to make
11-19 an election under this section.
11-20 (b) A member of the Employees Retirement System of Texas who
11-21 was an elected officer of the 73rd Senate of the State of Texas, as
11-22 determined by the senate journal, and who has at least 28 years of
11-23 service credit in the retirement system and has attained the age of
11-24 50 is eligible to make an election under this section.
11-25 (c) An election under this section must be made in writing
11-26 and filed with the Employees Retirement System of Texas and is
11-27 irrevocable after filing. An election under Subsection (a) of this
11-28 section must be filed before January 1, 1994. After the filing of
11-29 an election under this section, the retirement system shall
11-30 consider all the service credit established by the person who makes
11-31 the election, including service credit established after the date
11-32 the election is filed, as if it were performed as a member of the
11-33 elected class of membership.
11-34 SECTION 30. Chapter 805, Government Code, as added by this
11-35 Act, applies only to retirements and deaths that occur on or after
11-36 August 31, 1993.
11-37 SECTION 31. Subchapter B, Chapter 833, Government Code, is
11-38 amended by adding Section 833.105 to read as follows:
11-39 Sec. 833.105. Alternative Payments to Establish or
11-40 Reestablish Service Credit. (a) A member who is otherwise
11-41 eligible may establish or reestablish service creditable in the
11-42 retirement system by making payments as provided by this section in
11-43 lieu of lump-sum payments otherwise authorized or required by this
11-44 subtitle.
11-45 (b) A payment authorized by this section consists of the
11-46 contribution required to establish or reestablish at least one year
11-47 of service credit, including any required interest and membership
11-48 fees, except that a person's last in a series of payments under
11-49 this section may be for a period of remaining service that is less
11-50 than one year.
11-51 (c) The retirement system shall grant the applicable amount
11-52 of service credit after each payment is made under this section.
11-53 (d) Payments may not be made under this section:
11-54 (1) to establish or reestablish service credit of a
11-55 person who has retired or died; or
11-56 (2) to establish current service under Section
11-57 833.101.
11-58 (e) The retirement system may adopt rules to administer this
11-59 section.
11-60 SECTION 32. Subchapter B, Chapter 833, Government Code, is
11-61 amended by adding Section 833.106 to read as follows:
11-62 Sec. 833.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
11-63 SERVICE CREDIT. (a) A contributing member who is otherwise
11-64 eligible may establish or reestablish service creditable in the
11-65 retirement system by making payments as provided by this section in
11-66 lieu of lump-sum payments otherwise authorized or required by this
11-67 subtitle.
11-68 (b) A payment authorized by this section consists of a
11-69 monthly payroll deduction in an amount not less than one-twelfth of
11-70 the contribution required to establish or reestablish at least one
12-1 year of service credit, including any required interest and
12-2 membership fee, except as provided by Subsection (c).
12-3 (c) Payments to establish or reestablish service credit of
12-4 less than one year or to establish or reestablish service credit by
12-5 a member who plans to retire in less than a year may be made by
12-6 payroll deduction for a period determined by the retirement system.
12-7 (d) Payroll deductions for payments under this section shall
12-8 be made and submitted to the retirement system at the times and in
12-9 the manner provided for member contributions under Section 835.101.
12-10 (e) The retirement system shall credit a member's payments
12-11 made under this section to a suspense account until the sum of the
12-12 payments equals the amount required for one year of service credit
12-13 or the amount required for credit under Subsection (c), at which
12-14 time the retirement system shall deposit the payments in the
12-15 general revenue fund and grant the applicable amount of service
12-16 credit.
12-17 (f) A member who, while making payments under this section,
12-18 ceases to be a judicial officer or withdraws the authority for
12-19 payroll deductions may contract with the retirement system for an
12-20 alternative method of continuing the payments. The retirement
12-21 system may refund payments credited to the suspense account and not
12-22 transferred to the general revenue fund if a remaining payment
12-23 becomes delinquent by more than 60 days.
12-24 (g) Payments may not be made under this section to establish
12-25 or reestablish service credit of a person who has retired or died,
12-26 except that a beneficiary may make payment in a lump sum for the
12-27 remainder of service credit for which payments were begun before
12-28 the member's death.
12-29 (h) The retirement system may adopt rules to administer this
12-30 section.
12-31 SECTION 33. Subchapter B, Chapter 838, Government Code, is
12-32 amended by adding Section 838.105 to read as follows:
12-33 Sec. 838.105. Alternative Payments to Establish or
12-34 Reestablish Service Credit. (a) A member who is otherwise
12-35 eligible may establish or reestablish service creditable in the
12-36 retirement system by making payments as provided by this section in
12-37 lieu of lump-sum payments otherwise authorized or required by this
12-38 subtitle.
12-39 (b) A payment authorized by this section consists of the
12-40 contribution required to establish or reestablish at least one year
12-41 of service credit, including any required interest and membership
12-42 fees, except that a person's last in a series of payments under
12-43 this section may be for a period of remaining service that is less
12-44 than one year.
12-45 (c) The retirement system shall grant the applicable amount
12-46 of service credit after each payment is made under this section.
12-47 (d) Payments may not be made under this section:
12-48 (1) to establish or reestablish service credit of a
12-49 person who has retired or died; or
12-50 (2) to establish current service under Section
12-51 838.101.
12-52 (e) The retirement system may adopt rules to administer this
12-53 section.
12-54 SECTION 34. Subchapter B, Chapter 838, Government Code, is
12-55 amended by adding Section 838.106 to read as follows:
12-56 Sec. 838.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
12-57 SERVICE CREDIT. (a) A contributing member who is otherwise
12-58 eligible may establish or reestablish service creditable in the
12-59 retirement system by making payments as provided by this section in
12-60 lieu of lump-sum payments otherwise authorized or required by this
12-61 subtitle.
12-62 (b) A payment authorized by this section consists of a
12-63 monthly payroll deduction in an amount not less than one-twelfth of
12-64 the contribution required to establish or reestablish at least one
12-65 year of service credit, including any required interest and
12-66 membership fee, except as provided by Subsection (c).
12-67 (c) Payments to establish or reestablish service credit of
12-68 less than one year or to establish or reestablish service credit by
12-69 a member who plans to retire in less than a year may be made by
12-70 payroll deduction for a period determined by the retirement system.
13-1 (d) Payroll deductions for payments under this section shall
13-2 be made and submitted to the retirement system at the times and in
13-3 the manner provided for member contributions under Section 840.102.
13-4 (e) The retirement system shall credit a member's payments
13-5 made under this section to a suspense account in the trust fund
13-6 until the sum of the payments equals the amount required for one
13-7 year of service credit or the amount required for credit under
13-8 Subsection (c), at which time the retirement system shall deposit
13-9 the payments in the appropriate accounts in the trust fund and
13-10 grant the applicable amount of service credit.
13-11 (f) A member who, while making payments under this section,
13-12 ceases to be a judicial officer or withdraws the authority for
13-13 payroll deductions may contract with the retirement system for an
13-14 alternative method of continuing the payments. The retirement
13-15 system may refund payments credited to the suspense account and not
13-16 transferred to trust fund accounts if a remaining payment becomes
13-17 delinquent by more than 60 days.
13-18 (g) Payments may not be made under this section to establish
13-19 or reestablish service credit of a person who has retired or died,
13-20 except that a beneficiary may make payment in a lump sum for the
13-21 remainder of service credit for which payments were begun before
13-22 the member's death.
13-23 (h) The retirement system may adopt rules to administer this
13-24 section.
13-25 SECTION 35. Subchapter B, Chapter 838, Government Code, is
13-26 amended by adding Section 838.107 to read as follows:
13-27 Sec. 838.107. SERVICE NOT PREVIOUSLY ESTABLISHED. The state
13-28 shall make contributions for service not previously established
13-29 that is established under Section 838.105 or 838.106 in the amount
13-30 provided by Section 838.103(f) for military service. The state
13-31 contributions will be made at the time the service credit is
13-32 granted.
13-33 SECTION 36. Section 839.101, Government Code, is amended to
13-34 read as follows:
13-35 Sec. 839.101. Eligibility for Service Retirement Annuity.
13-36 (a) A member is eligible to retire and receive a service
13-37 retirement annuity if the member:
13-38 (1) <is at least 65 years old, currently holds a
13-39 judicial office, and has at least 10 years of service credited in
13-40 the retirement system, the most recently performed of which was for
13-41 a continuous period of at least one year;>
13-42 <(2)> is at least 65 years old and has at least 10
13-43 <12> years of service<, continuous or otherwise,> credited in the
13-44 retirement system, regardless of whether the member currently holds
13-45 a judicial office; or
13-46 (2) <(3)> has at least 25 years of service credited in
13-47 the retirement system, <the most recently performed of which was
13-48 for a continuous period of at least 10 years,> regardless of
13-49 whether the member currently holds a judicial office.
13-50 (b) A member who meets service requirements provided by
13-51 Subsection (a)(1) <or (a)(2)> is eligible to retire and receive a
13-52 service retirement annuity actuarially reduced as provided by
13-53 Section 839.102(c) from the standard service retirement annuity, if
13-54 the member is at least 60 years old.
13-55 (c) A member's resignation from a judicial office before
13-56 applying for an annuity does not make the member ineligible for the
13-57 annuity <unless the member applies for an annuity under Subsection
13-58 (a)(1)>.
13-59 SECTION 37. Subsection (a), Section 839.102, Government
13-60 Code, is amended to read as follows:
13-61 (a) Except as provided by Subsections (b) and (c), the
13-62 standard service retirement annuity is an amount computed on the
13-63 basis of the monthly state salary being paid at the time the member
13-64 retires to a judge of a court of the same classification as the
13-65 last court to which the retiring member was elected or appointed
13-66 <member's average monthly compensation for the 36 highest months of
13-67 compensation during the last 60 months of service>, multiplied by
13-68 one-twelfth of three percent for each month of service that is
13-69 credited in the retirement system.
13-70 SECTION 38. Subsection (b), Section 840.103, Government
14-1 Code, is amended to read as follows:
14-2 (b) Before November 2 of each even-numbered year, the
14-3 retirement system shall certify to the Legislative Budget Board and
14-4 to the budget division of the governor's office for review:
14-5 (1) an actuarial valuation of the retirement system to
14-6 determine the percentage of annual payroll required from the state
14-7 to finance fully the retirement system as provided by Section
14-8 840.106 <without any unfunded liability>;
14-9 (2) an estimate of the amount necessary to pay the
14-10 state's contribution under Subdivision (1) for the following
14-11 biennium; and
14-12 (3) as a separate item, an estimate of the amount, in
14-13 addition to anticipated receipts from membership fees, required to
14-14 administer the retirement system for the following biennium.
14-15 SECTION 39. Subchapter B, Chapter 840, Government Code, is
14-16 amended by adding Section 840.106 to read as follows:
14-17 Sec. 840.106. ACTION INCREASING AMORTIZATION PERIOD. (a) A
14-18 rate of member or state contributions to or a rate of interest
14-19 required for the establishment of credit in the retirement system
14-20 may not be reduced or eliminated, a type of service may not be made
14-21 creditable in the retirement system, a limit on the maximum
14-22 permissible amount of a type of creditable service may not be
14-23 removed or raised, a new monetary benefit payable by the retirement
14-24 system may not be established, and the determination of the amount
14-25 of a monetary benefit from the system may not be increased, if, as
14-26 a result of the particular action, the time, as determined by an
14-27 actuarial valuation, required to amortize the unfunded actuarial
14-28 liabilities of the retirement system would be increased to a period
14-29 that exceeds 30 years by one or more years.
14-30 (b) If the amortization period for the unfunded actuarial
14-31 liabilities of the retirement system exceeds 30 years by one or
14-32 more years at the time an action described by Subsection (a) is
14-33 proposed, the proposal may not be adopted if, as a result of the
14-34 adoption, the amortization period would be increased, as determined
14-35 by an actuarial valuation.
14-36 SECTION 40. Subsection (a), Section 840.301, Government
14-37 Code, is amended to read as follows:
14-38 (a) The board of trustees may, under the standard of care
14-39 provided by Section 840.303, invest and reinvest the retirement
14-40 system's assets and may commingle assets of the trust fund with the
14-41 assets of the Employees Retirement System of Texas, including its
14-42 trust fund and the law enforcement and custodial officer
14-43 supplemental retirement fund, for investment purposes, as long as
14-44 proportionate ownership records are maintained and credited.
14-45 SECTION 41. Subchapter E, Chapter 840, Government Code, is
14-46 amended by adding Section 840.405 to read as follows:
14-47 Sec. 840.405. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
14-48 Section 836.004 and to the extent required as a condition of plan
14-49 qualification under Section 401(a) of the Internal Revenue Code of
14-50 1986 (26 U.S.C. Section 401), the retirement system shall, in
14-51 accordance with Section 401(a)(31) of the Internal Revenue Code of
14-52 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
14-53 the distributee of an eligible rollover distribution to elect to
14-54 have the distribution paid directly to an eligible retirement plan
14-55 specified by the distributee in the form of a direct
14-56 trustee-to-trustee transfer. The board of trustees may adopt rules
14-57 to carry out this section. Terms used in this section have the
14-58 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
14-59 United States Code).
14-60 SECTION 42. Subchapter E, Chapter 840, Government Code, is
14-61 amended by adding Section 840.406 to read as follows:
14-62 Sec. 840.406. PLAN QUALIFICATION. (a) The provisions of
14-63 this subtitle shall be interpreted and administered in a manner
14-64 that permits the retirement system's benefit plan to be considered
14-65 a qualified plan under Section 401, Internal Revenue Code of 1986
14-66 (26 U.S.C. Section 401). The board of trustees may adopt rules
14-67 necessary to accomplish that purpose, and those rules are
14-68 considered a part of the plan.
14-69 (b) The retirement system's benefit plan shall be considered
14-70 the primary retirement plan for members of the retirement system in
15-1 determining qualification status under Section 401(a), Internal
15-2 Revenue Code of 1986 (26 U.S.C. Section 401(a)).
15-3 SECTION 43. Subparagraph (A), Paragraph (5), Subsection (a),
15-4 Section 3, Texas Employees Uniform Group Insurance Benefits Act
15-5 (Article 3.50-2, Vernon's Texas Insurance Code), as amended by
15-6 Chapters 242 and 391, Acts of the 72nd Legislature, Regular
15-7 Session, 1991, is amended to read as follows:
15-8 (A) "Employee" <"State-employee"> shall mean any
15-9 appointive or elective state officer or employee in the service of
15-10 the State of Texas, including an employee of an institution of
15-11 higher education:
15-12 (i) who is retired or retires and is an
15-13 annuitant under the jurisdiction of the Employees Retirement System
15-14 of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
15-15 Government Code, who is retired or retires and is an annuitant
15-16 under the jurisdiction of the Teacher Retirement System of Texas,
15-17 pursuant to Subtitle C, Title 8, Government Code, whose last
15-18 employment with the state prior to retirement was as an employee of
15-19 the Teacher Retirement System of Texas, school districts
15-20 established within state eleemosynary institutions, the Texas
15-21 Rehabilitation Commission, the Central Education Agency, the Texas
15-22 Higher Education Coordinating Board, or an institution of higher
15-23 education, or who is retired or retires and is an annuitant under
15-24 the optional retirement program established by Chapter 830,
15-25 Government Code, if the person's last state employment before
15-26 retirement, including employment by a public community/junior
15-27 college, was as an officer or employee of the Texas Higher
15-28 Education Coordinating Board, or an institution of higher
15-29 education, and if the person either:
15-30 (a) would have been eligible to
15-31 retire and receive a service retirement annuity from the Teacher
15-32 Retirement System of Texas had the person not elected to
15-33 participate in the optional retirement program; or
15-34 (b) is disabled;
15-35 (ii) who receives his compensation for
15-36 services rendered to the State of Texas on a warrant issued
15-37 pursuant to a payroll certified by a department or by an elected or
15-38 duly appointed officer of this state;
15-39 (iii) who receives payment for the
15-40 performance of personal services on a warrant issued pursuant to a
15-41 payroll certified by a department and drawn by the State
15-42 Comptroller of Public Accounts upon the State Treasurer against
15-43 appropriations made by the Texas Legislature from any state funds
15-44 or against any trust funds held by the State Treasurer or who is
15-45 paid from funds of an official budget of a state department, rather
15-46 than from funds of the General Appropriations Act;
15-47 (iv) who is appointed, subject to
15-48 confirmation of the senate, as a member of a board or commission
15-49 with administrative responsibility over a statutory agency having
15-50 statewide jurisdiction whose employees are covered by this Act;
15-51 (v) who is a member of the governing body
15-52 of an institution of higher education, as that term is defined by
15-53 Section 61.003, Education Code, including subsequent amendments to
15-54 that section;
15-55 (vi) who is a member of the State Board of
15-56 Education;
15-57 (vii) who receives compensation for
15-58 services rendered to an institution of higher education on a
15-59 warrant or check issued pursuant to a payroll certified by an
15-60 institution of higher education or by an elected or duly appointed
15-61 officer of this state, and who is eligible for participation in the
15-62 Teacher Retirement System of Texas; or
15-63 (viii) <(vi)> who receives compensation
15-64 for services rendered to an institution of higher education as
15-65 provided by this subdivision but is not permitted to be a member of
15-66 the Teacher Retirement System of Texas because the person is solely
15-67 employed by an institution of higher education that as a condition
15-68 of employment requires the person to be enrolled as a student in an
15-69 institution of higher education in graduate-level courses and who
15-70 is employed by the institution at least 20 hours a week.
16-1 SECTION 44. Paragraphs (6), (14), and (15), Subsection (a),
16-2 Section 3, Texas Employees Uniform Group Insurance Benefits Act
16-3 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
16-4 read as follows:
16-5 (6) "Employer" shall mean the State of Texas and<,>
16-6 all its departments<, and any participating school district>.
16-7 (14) "Part-time employee" shall mean, for purposes of
16-8 this Act, an employee designated by his employing agency as working
16-9 less than 20 hours per week. A part-time <state> employee shall
16-10 receive the benefits of one-half the amount of the state's
16-11 contribution received by full-time employees.
16-12 (15) "Full-time employee" shall mean, for purposes of
16-13 this Act, an employee designated by his employing agency as working
16-14 20 or more hours per week. A full-time <state> employee shall
16-15 receive the benefits of a full state contribution for coverage
16-16 under this Act.
16-17 SECTION 45. Subsection (e), Section 5, Texas Employees
16-18 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
16-19 Texas Insurance Code), as amended by Chapters 391 and 850, Acts of
16-20 the 72nd Legislature, Regular Session, 1991, is amended to read as
16-21 follows:
16-22 (e) The trustee is authorized to select, contract for, and
16-23 make available to eligible employees and annuitants in a specific
16-24 area of the state, services performed by health maintenance
16-25 organizations which are approved by the federal government or the
16-26 State of Texas to offer health care services in that area.
16-27 Eligible employees and annuitants may participate in a selected
16-28 health maintenance organization in lieu of participation in the
16-29 health insurance benefits in the Employees Uniform Group Insurance
16-30 Program<, and the employer contributions provided by Section 14(a)
16-31 or (b) of this Act for health care coverage shall be paid to the
16-32 selected health maintenance organizations on behalf of the
16-33 participants>.
16-34 SECTION 46. Subsection (a), Section 13B, Texas Employees
16-35 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
16-36 Texas Insurance Code), is amended to read as follows:
16-37 (a) The trustee may study the feasibility of establishing a
16-38 cafeteria plan and may design, develop, adopt, implement, and
16-39 administer a cafeteria plan if the trustee determines that the
16-40 establishment of a cafeteria plan is feasible, would be beneficial
16-41 to the state and to the <state> employees who would be eligible to
16-42 participate in the cafeteria plan, and would not adversely affect
16-43 the insurance program established under this Act. The trustee may
16-44 include in the cafeteria plan any benefit that may be included in a
16-45 cafeteria plan under federal law.
16-46 SECTION 47. Section 14, Texas Employees Uniform Group
16-47 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
16-48 Code), as amended by Chapters 391 and 850, Acts of the 72nd
16-49 Legislature, Regular Session, 1991, is amended to read as follows:
16-50 Sec. 14. Payment of Contributions. (a) The trustee shall
16-51 use the amount appropriated for employer contributions in
16-52 accordance with Section 15 of this Act to fund the basic coverage.
16-53 The trustee may equitably allocate to each health benefits plan the
16-54 employer contributions that would be required to fund basic health
16-55 coverage for participants in the plans to the extent funds are
16-56 available. In allocating the employer contributions among plans,
16-57 the trustee shall consider the relevant risk characteristics of
16-58 each plan's enrollment, including demographic variations in the use
16-59 and cost of health care and the prevailing cost patterns in the
16-60 area in which the plan operates. The allocation must be reasonable
16-61 and set in a manner which assures employees a fair choice among
16-62 health benefit plans providing a basic plan. The contribution set
16-63 for each employee shall be within the total amount appropriated in
16-64 the General Appropriations Act.
16-65 (b) Any employer contributions remaining after the basic
16-66 coverage has been funded may be allocated by the trustee to fund
16-67 optional coverages in any manner the trustee determines is
16-68 appropriate. <Each participating school district shall contribute,
16-69 for each school district employee covered by the program, an amount
16-70 equal to the employee only cost of the plans of group coverages
17-1 authorized by the trustee for school district employees, provided
17-2 that the school district's contribution may not exceed the amount
17-3 contributed for each state employee in accordance with Subsection
17-4 (a) of this section. If the cost of the plan authorized by the
17-5 trustee for school district employees exceeds the amount of the
17-6 district's contribution, the district shall deduct from the monthly
17-7 compensation of the employee an amount sufficient to pay the amount
17-8 of the premiums not covered by the district's contribution.>
17-9 (c) The trustee may not allocate any employer contributions
17-10 to fund voluntary coverages. Voluntary coverages must be funded
17-11 solely by employee contributions. <If an employee or annuitant
17-12 refuses in writing the coverages, benefits, or services provided by
17-13 this Act by a statement in writing satisfactory to the trustee,
17-14 then in no event shall the State of Texas, the employee's
17-15 department, or the participating school district make any
17-16 contribution to the cost of any other coverages, services, or
17-17 benefits on such employee or annuitant.>
17-18 (d) If the cost of the basic coverage exceeds the amount of
17-19 employer contributions allocated to fund the basic coverage, the
17-20 state shall deduct from or reduce the monthly compensation of the
17-21 employee and shall deduct from the retirement benefits of the
17-22 annuitant an amount sufficient to pay the cost of the basic
17-23 coverage. <Except as provided by Subsection (e) of this section,
17-24 if any employee or annuitant applies for coverages for which the
17-25 cost exceeds the state's, the employing department's, or the
17-26 participating school district's contribution under this Act, he
17-27 shall authorize in writing and in a form satisfactory to the
17-28 trustee a deduction from his monthly compensation or annuity the
17-29 difference between the cost of coverages under the said group
17-30 programs and the amount contributed therefor by the State of Texas
17-31 or the employing department.>
17-32 (e) The trustee shall apply the amount of any employer
17-33 contribution allocated to fund optional coverages to the excess of
17-34 the cost of the basic and optional coverages for which the employee
17-35 or annuitant has applied over the basic coverage contribution.
17-36 Except as provided by Subsection (h) of this section, if an
17-37 employee or annuitant applies for basic and optional coverages for
17-38 which the cost exceeds the contributions for those coverages under
17-39 this Act, the employee or annuitant shall authorize in writing in a
17-40 form satisfactory to the trustee a deduction from the employee's or
17-41 annuitant's monthly compensation or annuity equal to the difference
17-42 between the cost of basic and optional coverages for which the
17-43 employee or annuitant has applied and the employer contributions
17-44 for basic and optional coverage. <If an employee elects to
17-45 participate in the cafeteria plan, he shall execute a salary
17-46 reduction agreement under which his monthly compensation will be
17-47 reduced in an amount that is equal to the difference between the
17-48 amount contributed for the coverages by the State of Texas, the
17-49 employing department, or the participating school district and the
17-50 cost of the coverages for which the employee is eligible to pay
17-51 under the cafeteria plan. An employee who executes a salary
17-52 reduction agreement for insurance coverages included in the
17-53 cafeteria plan is considered to have elected to participate in the
17-54 cafeteria plan and agreed to a salary reduction for the insurance
17-55 coverages for subsequent plan years unless the participant, during
17-56 an annual enrollment period specified by the trustee, explicitly
17-57 elects not to participate for the next plan year in the insurance
17-58 coverages. After electing not to participate in insurance
17-59 coverages included in the cafeteria plan, an employee must, to
17-60 reestablish participation for subsequent plan years in insurance
17-61 coverages included in the cafeteria plan, execute a new salary
17-62 reduction agreement. A salary reduction agreement for other
17-63 benefits of the cafeteria plan must be executed annually, during
17-64 the annual enrollment period specified by the trustee, for each
17-65 plan year. The employee shall pay any remaining portion of the
17-66 cost of benefits that is not covered by the state's, department's,
17-67 or district's contributions and the salary reductions under the
17-68 cafeteria plan by executing a payroll deduction agreement.>
17-69 (f) Except as provided by Subsection (h) of this section, if
17-70 an employee or annuitant applies for voluntary coverages, the
18-1 employee shall authorize in writing in a form satisfactory to the
18-2 trustee a deduction from the employee's monthly compensation or
18-3 annuity equal to the cost of the voluntary coverages.
18-4 (g) If an employee or annuitant refuses the coverages or
18-5 benefits provided under this Act in writing in a form satisfactory
18-6 to the trustee, the state and the employee's department may not
18-7 make any contribution to the cost of any coverages or benefits for
18-8 the employee or annuitant.
18-9 (h) If an employee elects to participate in the cafeteria
18-10 plan, the employee must execute a salary reduction agreement under
18-11 which the employee's monthly compensation will be reduced in an
18-12 amount that is equal to the difference between the employer
18-13 contributions for basic and optional coverages and the cost of the
18-14 cafeteria plan coverages identified by the trustee as comparable to
18-15 the basic and optional coverages for which the employee is
18-16 eligible. The salary reduction agreement must also provide for an
18-17 additional reduction in the employee's compensation equal to the
18-18 cost of voluntary coverages for which the employee has applied. An
18-19 employee who executes a salary reduction agreement for insurance
18-20 coverage included in the cafeteria plan has elected to participate
18-21 in the cafeteria plan and agreed to a salary reduction for the
18-22 insurance coverages for subsequent plan years unless the
18-23 participant, during an annual enrollment period specified by the
18-24 trustee, elects in writing not to participate for the next plan
18-25 year in the insurance coverages. An employee who has elected not
18-26 to participate in the cafeteria plan insurance coverages may
18-27 re-enroll by executing a new salary reduction agreement during a
18-28 subsequent annual enrollment period. A salary reduction agreement
18-29 for cafeteria plan benefits other than insurance coverages must be
18-30 executed annually, during the annual enrollment period. The
18-31 employee shall pay any remaining portion of the cost of benefits
18-32 that is not covered by the contributions for basic and optional
18-33 coverages and the salary reduction under the cafeteria plan by
18-34 executing a payroll deduction agreement.
18-35 SECTION 48. Subsection (a), Section 15, Texas Employees
18-36 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
18-37 Texas Insurance Code), is amended to read as follows:
18-38 (a) On or before the first day of November next preceding
18-39 each regular session of the legislature, the trustee shall certify
18-40 to the Legislative Budget Board and budget division of the
18-41 governor's office for information and review the amount necessary
18-42 to pay the contributions of the State of Texas to the trustee for
18-43 the coverages provided under this Act during the ensuing biennium.
18-44 A state contribution may not be made for coverages under this Act
18-45 selected by a person who receives a state contribution, other than
18-46 as a spouse, dependent, or beneficiary, for coverages under a group
18-47 benefits program provided by an institution of higher education, as
18-48 that term is defined by Section 61.003, Education Code. This
18-49 amount shall be included in the budget of the state which the
18-50 governor submits to the legislature.
18-51 SECTION 49. Subsections (a) and (b), Section 16, Texas
18-52 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
18-53 Vernon's Texas Insurance Code), are amended to read as follows:
18-54 (a) There is hereby created with the treasury of the State
18-55 of Texas an Employees Life, Accident, and Health Insurance and
18-56 Benefits Fund which shall be administered by the trustee. The
18-57 <Except as provided by Subsection (d) of this section, the>
18-58 contributions of employees, annuitants, <participating school
18-59 districts,> and the state provided for under this Act shall be paid
18-60 into the fund. The fund is available:
18-61 (1) without fiscal year limitation for all payments
18-62 for any coverages provided for under this Act; and
18-63 (2) to pay expenses for administering this Act within
18-64 the limitations that may be specified annually by the legislature.
18-65 (b) Portions <Except as provided by Subsection (d) of this
18-66 section, portions> of the contributions made by employees,
18-67 annuitants, <participating school districts,> and the state shall
18-68 be regularly set aside in the fund as follows: a percentage
18-69 determined by the trustee to be reasonably adequate to pay the
18-70 administrative expenses made available by Subsection (a) of this
19-1 section. The trustee, from time to time and in amounts it
19-2 considers appropriate, may transfer unused funds for administrative
19-3 expenses to the contingency reserves to be used by the trustee only
19-4 for charges, claims, costs, and expenses under the program.
19-5 SECTION 50. Subsection (c), Section 17, Texas Employees
19-6 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
19-7 Texas Insurance Code), is amended to read as follows:
19-8 (c) Each state department <and each participating school
19-9 district> shall keep such records, make such certifications, and
19-10 furnish the trustee with such information and reports as may be
19-11 necessary to enable the trustee to carry out its functions under
19-12 this Act.
19-13 SECTION 51. Subsection (a), Section 18, Texas Employees
19-14 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
19-15 Texas Insurance Code), as amended by Chapters 242 and 391, Acts of
19-16 the 72nd Legislature, Regular Session, 1991, is amended to read as
19-17 follows:
19-18 (a) The group benefits advisory committee is composed of 27
19-19 <25> voting members as provided by this section. The office of the
19-20 attorney general, the office of the state treasurer, the office of
19-21 the comptroller, the Railroad Commission of Texas, the General Land
19-22 Office, and the Department of Agriculture are entitled to be
19-23 represented by one member each on the committee, who may be
19-24 appointed by the governing body of the state agency or elected by
19-25 and from the employees of the agency, as determined by rule by the
19-26 governing body of the agency. One employee shall be elected from
19-27 each of the remaining eight <seven> largest state agencies that are
19-28 governed by appointed officers by and from the employees of those
19-29 agencies. One nonvoting member shall be the executive director of
19-30 the Employees Retirement System of Texas. One member shall be an
19-31 expert in employee benefit issues from the private sector,
19-32 appointed by the governor. One member shall be an expert in
19-33 employee benefits issues from the private sector, appointed by the
19-34 lieutenant governor. One member shall be a retired state employee
19-35 appointed by the trustee. One member shall be a state employee of
19-36 a state agency other than one of the eight <seven> largest state
19-37 agencies, appointed by the trustee. Not more than one employee
19-38 from a particular state agency may serve on the committee. Each of
19-39 the seven largest institutions of higher education, as determined
19-40 by the number of employees on the payroll of an institution, shall
19-41 elect one member of the committee from among persons who have each
19-42 been nominated by a petition signed by at least 300 employees. Two
19-43 <members shall be employees of institutions of higher education
19-44 appointed by the Texas Higher Education Coordinating Board. Five>
19-45 members shall be employees of institutions of higher education,
19-46 other than the seven largest institutions of higher education, who
19-47 are appointed by the Texas Higher Education Coordinating Board
19-48 <elected by and from the institutions of higher education>, but not
19-49 more than one employee shall be from any one institution. <The
19-50 remaining members shall be elected by and from the employees of the
19-51 other state agencies, excluding institutions of higher education,
19-52 and from the employees of participating school districts in a
19-53 manner consonant with the election for membership to the board of
19-54 the Employees Retirement System of Texas, but not more than one
19-55 employee shall be from any one agency or district.> The members
19-56 shall elect a presiding officer from their membership to serve a
19-57 one-year term.
19-58 SECTION 52. Subsections (b) and (c), Section 19, Texas
19-59 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
19-60 Vernon's Texas Insurance Code), are amended to read as follows:
19-61 (b) A surviving spouse of an employee or a retiree who is
19-62 entitled to monthly benefits paid by a retirement system named in
19-63 this Act may, following the death of the employee or retiree, elect
19-64 to retain the spouse's authorized coverages and also retain
19-65 authorized coverages for any dependent of the spouse, at the group
19-66 rate for employees, provided such coverage was previously secured
19-67 by the employee or retiree for the spouse or dependent, and the
19-68 spouse directs the applicable retirement system to deduct required
19-69 contributions from the monthly benefits paid the surviving spouse
19-70 by the retirement system. A surviving dependent of a retiree who
20-1 was receiving monthly benefits paid by a retirement system named in
20-2 this Act may, after the death of the retiree and if the retiree
20-3 leaves no surviving spouse, elect to retain any coverage previously
20-4 secured by the retiree, at the group rate for employees, until the
20-5 dependent becomes ineligible for coverage for a reason other than
20-6 the death of the member of the group. A dependent who makes an
20-7 election under this subsection and who is entitled to monthly
20-8 benefits from a retirement system named in this Act based on the
20-9 service of the deceased retiree must direct the applicable
20-10 retirement system to deduct required contributions for the coverage
20-11 from the monthly benefits paid the surviving dependent by the
20-12 retirement system.
20-13 (c) The surviving spouse of an employee or a retiree who
20-14 designated or selected a time certain annuity option or a surviving
20-15 dependent of a retiree who designated or selected a time certain
20-16 annuity option, upon expiration of the annuity option may retain
20-17 authorized coverages by advance payment of contributions to the
20-18 Employees Retirement System of Texas under rules and regulations
20-19 adopted by the trustee.
20-20 SECTION 53. Chapter 22, Acts of the 57th Legislature, 3rd
20-21 Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
20-22 Statutes), is amended by adding Section 3 to read as follows:
20-23 Sec. 3. (a) A state agency may permit some or all of the
20-24 employees of the agency to participate in an employer-sponsored
20-25 program described by Section 457(f) of the Internal Revenue Code of
20-26 1986, including subsequent amendments of that law.
20-27 (b) Before a state agency begins sponsorship of a program
20-28 under Subsection (a) of this section, the agency shall submit a
20-29 proposal for the program to the Employees Retirement System of
20-30 Texas for its review and comment.
20-31 (c) In this section, "state agency" means a board, office,
20-32 commission, department, institution, court, or other agency in any
20-33 branch of state government.
20-34 SECTION 54. Subsection (c), Section 141, Uniform Act
20-35 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
20-36 Statutes), is amended to read as follows:
20-37 (c) The fee for compulsory inspection of a motor vehicle
20-38 other than a moped, to be made under this Section, shall be Ten
20-39 Dollars and Fifty Cents ($10.50). The fee for compulsory
20-40 inspection of a moped, to be made under this Section, shall be Five
20-41 Dollars and Seventy-five Cents ($5.75). Five Dollars and Fifty
20-42 Cents ($5.50) of each fee shall be paid to the Department and
20-43 shall, except as provided by <Section 815.405, Government Code, or>
20-44 Section 382.0622, Health and Safety Code, be deposited <placed> in
20-45 the Motor Vehicle Inspection Fund for the purpose of paying the
20-46 expense of the administration of this law, after the deduction of
20-47 Two Dollars and Twenty-five Cents ($2.25) of each fee, which shall
20-48 be deposited by the Department in the general revenue fund. The
20-49 Department may require each official inspection station to make an
20-50 advance payment of Five Dollars and Fifty Cents ($5.50) for each
20-51 inspection certificate furnished to it. No<, and the money so
20-52 received shall, except as provided by Section 815.405, Government
20-53 Code, be placed in the Motor Vehicle Inspection Fund, and no>
20-54 further payment to the Department shall be required upon issuance
20-55 of the certificate. If such advance payment has been made, the
20-56 Department shall refund to the inspection station the amount of
20-57 Five Dollars and Fifty Cents ($5.50) for each unissued certificate
20-58 which the inspection station returns to the Department in
20-59 accordance with rules and regulations promulgated by the
20-60 Department. The Texas Natural Resource Conservation Commission
20-61 shall refund to the Department Two Dollars ($2.00) for each unused
20-62 certificate returned to the Department by inspection stations
20-63 licensed by the Department. An inspection station may waive the
20-64 fee otherwise due from the owner of a vehicle inspected under this
20-65 Section if the inspection station has rendered in advance to the
20-66 Department the payment of Five Dollars and Fifty Cents ($5.50) for
20-67 the certificate applied to a vehicle with respect to which the
20-68 owner's fee has been so waived.
20-69 SECTION 55. Subsection (c-4), Section 10, Chapter 88,
20-70 General Laws, Acts of the 41st Legislature, 2nd Called Session,
21-1 1929 (Article 6675a-10, Vernon's Texas Civil Statutes), is amended
21-2 to read as follows:
21-3 (c-4) On Monday of each week each County Tax Collector shall
21-4 submit to the State Department of Highways and Public
21-5 Transportation a carbon copy of the receipt issued for payment of
21-6 each fee received in the preceding week for registration of a log
21-7 loader vehicle under Section 2(l) of this Act and all<. On Monday
21-8 of each week the County Tax Collector shall send to the Employees
21-9 Retirement System of Texas an amount equal to four percent (4%)> of
21-10 the registration fees collected under Section 2(l) of this Act <and
21-11 shall remit the remaining ninety-six percent (96%) to the
21-12 Department. Money sent to the retirement system under this
21-13 subsection shall be deposited in the law enforcement and custodial
21-14 officer supplemental retirement fund>.
21-15 SECTION 56. The following provisions are repealed:
21-16 (1) Subsection (d), Section 813.509, and Sections
21-17 815.005, 815.106, 815.305, 815.316, 815.320, 815.405, 839.104, and
21-18 840.009, Government Code;
21-19 (2) Paragraphs (19), (20), (21), and (22), Subsection
21-20 (a), Section 3, Texas Employees Uniform Group Insurance Benefits
21-21 Act (Article 3.50-2, Vernon's Texas Insurance Code), as added by
21-22 Chapter 391, Acts of the 72nd Legislature, Regular Session, 1991;
21-23 (3) Section 3A, Texas Employees Uniform Group
21-24 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
21-25 Code), as added by Chapter 391, Acts of the 72nd Legislature,
21-26 Regular Session, 1991;
21-27 (4) Section 13C, Texas Employees Uniform Group
21-28 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
21-29 Code);
21-30 (5) Subsection (e), Section 15, Texas Employees
21-31 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
21-32 Texas Insurance Code);
21-33 (6) Subsection (d), Section 16, Texas Employees
21-34 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
21-35 Texas Insurance Code); and
21-36 (7) effective September 1, 1995, Subsection (d),
21-37 Section 813.506, Government Code.
21-38 SECTION 57. The Employees Retirement System of Texas may
21-39 adopt rules to implement the changes in law made by this Act in the
21-40 composition of the group benefits advisory committee under the
21-41 Texas Employees Uniform Group Insurance Benefits Act (Article
21-42 3.50-2, Vernon's Texas Insurance Code).
21-43 SECTION 58. The Legislative Budget Board shall perform a
21-44 study of the law enforcement and custodial officer supplemental
21-45 retirement fund and the program supported by that fund. The study
21-46 shall include an examination of the membership in the program,
21-47 including its potential for growth, and an examination of
21-48 appropriate methods of financing the program. The board shall
21-49 include its findings and recommendations as a result of the study
21-50 in a report to the 74th Legislature.
21-51 SECTION 59. (a) Except as provided by Subsection (b) of
21-52 this section, this Act takes effect September 1, 1993.
21-53 (b) This section and Sections 2 and 30 of this Act take
21-54 effect immediately. Sections 22 and 23 of this Act take effect
21-55 September 1, 1995.
21-56 SECTION 60. The importance of this legislation and the
21-57 crowded condition of the calendars in both houses create an
21-58 emergency and an imperative public necessity that the
21-59 constitutional rule requiring bills to be read on three several
21-60 days in each house be suspended, and this rule is hereby suspended,
21-61 and that this Act take effect and be in force according to its
21-62 terms, and it is so enacted.
21-63 * * * * *
21-64 Austin,
21-65 Texas
21-66 April 21, 1993
21-67 Hon. Bob Bullock
21-68 President of the Senate
21-69 Sir:
21-70 We, your Committee on State Affairs to which was referred S.B. No.
22-1 1181, have had the same under consideration, and I am instructed to
22-2 report it back to the Senate with the recommendation that it do not
22-3 pass, but that the Committee Substitute adopted in lieu thereof do
22-4 pass and be printed.
22-5 Harris of
22-6 Dallas, Chairman
22-7 * * * * *
22-8 WITNESSES
22-9 FOR AGAINST ON
22-10 ___________________________________________________________________
22-11 Name: Ken Levine x
22-12 Representing: Sunset Commission
22-13 City: Austin
22-14 -------------------------------------------------------------------
22-15 Name: Billy Don Ivey x
22-16 Representing: DPS
22-17 City: Austin
22-18 -------------------------------------------------------------------
22-19 Name: Lane A. Zivley x
22-20 Representing: Tx Public Employees Assn
22-21 City: Austin
22-22 -------------------------------------------------------------------
22-23 Name: Travis Donoho x
22-24 Representing: Tx State Employees Union
22-25 City: Austin
22-26 -------------------------------------------------------------------
22-27 Name: Walter O'Dell x
22-28 Representing: Retired State Employees Assn
22-29 City: Austin
22-30 -------------------------------------------------------------------
22-31 Name: Farland Bundy x
22-32 Representing: Retired State Employees Assn
22-33 City: Austin
22-34 -------------------------------------------------------------------
22-35 FOR AGAINST ON
22-36 ___________________________________________________________________
22-37 Name: Charles Travis x
22-38 Representing: Employees Retirement System
22-39 City: Austin
22-40 -------------------------------------------------------------------