BILL ANALYSIS


                                                         H.B. 603
                                             By: Gray (Zaffirini)
                                                    Jurisprudence
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

There are a number of people who divorced and had pension plans
divided prior to the enactment of the Employee Retirement Income
Security Act of 1974.  Attorneys generally believe that it is
permissible to ask the court to clarify and modify the original
order for the division of the retirement plan to be a qualified
domestic relations order.  However, only the Government Code
expressly authorizes the trial court to amend orders related to
state pensions.  In addition, the usual delays in getting the
qualified orders approved by companies may compound the problems. 
The court needs authority to resolve issues when plans are merged
after an order is entered.

PURPOSE

As proposed, H.B. 603 authorizes the court to clarify an existing
final divorce, annulment or other order dividing property by
rendering a qualified domestic relations order that provides for
the division of certain pension or retirement benefits.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 3D, Family Code, by adding Section 3.711,
as follows:

     Sec. 3.711.  CONTINUING JURISDICTION FOR QUALIFIED DOMESTIC
     RELATIONS ORDERS.  (a) Authorizes a party to petition a court
     to render a qualified domestic relations order or similar
     order (order) if a court in rendering a final decree of
     divorce, annulment, or another final order dividing property
     (final order) did not provide a qualified domestic relations
     order or similar order permitting payment of benefits to an
     alternate payee.  Applies an action seeking a qualified order
     to any previously divided pension, retirement plan, or other
     divisible employee benefit, whether private, state, or
     federal, unless prohibited by federal law.
     
     (b) Requires an action seeking a qualified order to be filed
       with the court that rendered the final order.  Provides that
       the court that rendered the final order has continuing,
       exclusive jurisdiction over the parties and property for
       purposes of rendering a qualified order as if the court were
       required to presently divide the plan or benefit in a manner
       substantially similar to the original division.
       
       (c) Provides that a court that rendered an order that a plan
       administrator does not satisfy the requirements of a
       qualified order retains continuing, exclusive jurisdiction
       over the parties and property to the extent necessary to
       render an amended or corrected order that satisfies the
       requirements of a qualified order for payment of benefits to
       the alternate payee.
       
       (d) Provides that a petition is governed by the Texas Rules
       of Civil Procedure that apply to the filing of an original
       lawsuit, except as otherwise provided by this code. 
       Entitles each party whose rights may be affected by the
       petition to receive notice by citation, and requires each
       party to be commanded to appear by filing a written answer. 
       Requires the proceedings to be conducted in the same manner
       as civil cases.
       
       (e) Requires the court to liberally construe this section to
       effectuate payment of retirement benefits that were divided
       by a previous decree that failed to contain a qualified
       order or that contained an order that failed to meet the
       requirements of a qualified order.
SECTION 2. Effective date: September 1, 1995.
           Makes application of this Act retroactive.

SECTION 3. Emergency clause.