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.