BILL ANALYSIS H.B. 1793 By: Johnson May 4, 1995 Committee Report (Unamended) BACKGROUND Currently, the state of Texas allows out-of-state teachers the option of buying time in the Teacher Retirement System (TRS). After they have worked 10 years in Texas, out-of-state teachers can buy up to 10 years of out-of-state teaching time. Vocational teachers who obtained work experience in Texas and have taught in Texas are not allowed to buy time into TRS for their work experience. PURPOSE To allow vocational teachers the option of buying time in TRS for their vocational work experience. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Subchapter E, Chapter 823, Government Code by adding Section 823.404, subsections (a) - (h), as follows: (a) permits establishing membership service credit for vocational work experience. (b) must have work experience other than that which is required by the State Board of Education for certification. (c) requires members who are eligible to be employed by a public school, have a degree from a higher education institution with academic credit for at least 14 semester hours of vocational education courses, and have at least five years of service credit in the retirement system for actual service in public schools. (d) must deposit 12 percent of the member's annual rate of compensation during the beginning year of employment as a vocational teacher for each year of vocational work experience claimed. (e) in addition to (d), a member must pay 8 percent of the required contribution compounded annually from the date of first eligibility to the date of deposit. (f) a member may not establish more than two years of service credit. (g) after deposits, the retirement system shall grant the member one year of service credit for each year of vocational experience approved. Service credit for vocational work experience may not be used in computing a member's annual average compensation. (h) service credit may not be used in determining eligibility for coverage in an insurance program provided by the state. SECTION 2: Makes conforming change SECTION 3: Makes conforming change SECTION 4: Emergency clause Committee on Pensions & Investments SUMMARY OF COMMITTEE ACTION HB 1793 was considered by the committee in a public hearing on April 10, 1995. The following persons testified for the bill: Doyle Chandler representing himself Bobby Ray Hensley, II representing himself. Mike Lehr representing the Retired Teachers Assoc. testified against the bill. Randy Mercer representing the Teacher Retirement System testified neutrally on the bill. The bill was left pending. The bill was again considered by the committee in a public hearing on May 3, 1995. The bill was reported favorably without amendment with the recommendation that it do pass and be printed, by a record vote of 5 ayes, 0 nays, 0 pnv & 4 absent.