BILL ANALYSIS



C.S.H.B. 795
By: Hightower
March 7, 1995
Committee Report (Substituted)


BACKGROUND

In 1993, the Legislature authorized the transfer of service credit
between the Employees Retirement System and the Teacher Retirement
System.  Due to the date the bill was signed by the Governor, the
terms of the bill only applied to those who died or retired on or
after August 31, 1993.  Because this bill did not take immediate
effect, it cut out those who died during this window of time (June
18 to August 31, 1993).

PURPOSE

HB 795 takes into consideration the case of those individuals who
died and their spouses were left out of the ability to transfer,
purchase or reinstate service between ERS and TRS.  The effective
date is changed to allow those specific individuals, who died after
the bill was passed, but before it was signed by the Governor, to
participate.

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:  (a)  Specifies the provision that this bill applies to
deaths occurring on or after       June 18, 1993, regardless of
Section 30, Chapter 791, Acts of the 73rd         Legislature,
1993, and allows a surviving spouse to purchase, reinstate or
transfer       service credit of a retirement under Chapter 805,
Government Code.

         (b)   Requires the Employees Retirement System or the
Teacher Retirement       System to recompute the annuity benefit
for those individuals as outlined in         Subsection (b);  and
the recomputed annuity payment shall be made by the first        payment after the new benefit payment is calculated; and
requires any necessary        money transfers to be made in
accordance with Chapter 805, Government Code.

         (c)  Requires that if a lump sum death benefit has been
made, the lump sum must be         returned for this section to
apply.

SECTION 2:  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute limits the applicability of this bill to only those
who died during the time of June 18, 1993 and August 31, 1993.  The
substitute also states that if a lump sum death benefit has already
been paid, then the lump sum must be returned for this bill to
apply.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on February 27, 1995.

Rep. Allen Hightower testified for the bill as the bill's author.

The following persons testified neutrally on the bill:
     Charles D. Travis representing the Employees Retirement System
     Randy Mercer representing the Teacher Retirement System

The bill was referred to a subcommittee consisting of the following
members:  Rangel, Telford & Johnson.  On March 1, 1995, the
subcommittee met in a formal meeting and voted to report the
measure as substituted.

On March 6, 1995, the full committee voted to report HB 795 as
substituted with the recommendation that it do pass by a record
vote of 5 ayes, 0 nays, 0 pnv & 4 absent.