By Johnson                                            H.B. No. 1793
       74R4766 GCH-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to purchase of service credit in the Teacher Retirement
    1-3  System of Texas for vocational work experience.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter E, Chapter 823, Government Code, is
    1-6  amended by adding Section 823.404 to read as follows:
    1-7        Sec. 823.404.  VOCATIONAL WORK EXPERIENCE.  (a)  An eligible
    1-8  member may establish equivalent membership service credit for
    1-9  vocational work experience that is creditable in the retirement
   1-10  system.
   1-11        (b)  Vocational work experience creditable in the retirement
   1-12  system is work, other than work for which an individual receives
   1-13  academic credit from an institution of higher education, that is
   1-14  required under rules of the State Board of Education for
   1-15  certification as a vocational teacher.
   1-16        (c)  A member eligible to establish credit under this section
   1-17  is one who:
   1-18              (1)  is or has been employed by a public school as a
   1-19  vocational teacher;
   1-20              (2)  has from an institution of higher education a
   1-21  degree that includes academic credit for at least 14 semester hours
   1-22  of vocational education courses; and
   1-23              (3)  has at least five years of service credit in the
   1-24  retirement system for actual service in public schools.
    2-1        (d)  A member may establish credit under this section by
    2-2  depositing with the retirement system for each year of vocational
    2-3  work experience claimed a contribution computed at the rate of 12
    2-4  percent of the member's annual rate of compensation during the
    2-5  beginning year of employment as a vocational teacher.
    2-6        (e)  In addition to the contribution required by Subsection
    2-7  (d), a member claiming credit under this section must pay a fee of
    2-8  eight percent of the required contribution compounded annually from
    2-9  the date of first eligibility to the date of deposit.  A deposit
   2-10  for at least one year of credit, including the fee, must be made
   2-11  with an initial application for credit, and all payments for
   2-12  service claimed under this section must be made before retirement.
   2-13        (f)  A member may not establish more than two years of
   2-14  service credit under this section.
   2-15        (g)  After a member makes the deposits required by this
   2-16  section, the retirement system shall grant the member one year of
   2-17  equivalent membership service credit for each year of vocational
   2-18  work experience approved.  The retirement system may not use
   2-19  service credit granted under this section in computing a member's
   2-20  annual average compensation.
   2-21        (h)  Service credit granted under this section may not be
   2-22  used in determining eligibility for coverage in an insurance
   2-23  program provided by the state.
   2-24        SECTION 2.  Section 825.307(a), Government Code, is amended
   2-25  to read as follows:
   2-26        (a)  The retirement system shall deposit in a member's
   2-27  individual account in the member savings account:
    3-1              (1)  the amount of contributions to the retirement
    3-2  system that is deducted from the member's compensation;
    3-3              (2)  the portion of a deposit made on or after
    3-4  resumption of membership that represents the amount of retirement
    3-5  benefits received;
    3-6              (3)  the portion of a deposit to reinstate service
    3-7  credit previously canceled that represents the amount withdrawn or
    3-8  refunded;
    3-9              (4)  the portion of a deposit to establish membership
   3-10  service credit previously waived that is required by Section
   3-11  823.202(b)(1);
   3-12              (5)  the portion of a deposit to establish membership
   3-13  service credit for service performed after retirement that is
   3-14  required by Section 823.502(c)(3) or (c)(5);
   3-15              (6)  the portion of a deposit to establish military
   3-16  service credit required by Section 823.302(c);
   3-17              (7)  the portion of a deposit to establish equivalent
   3-18  membership service credit required by Section 823.401(d),
   3-19  823.402(e)(1) or (e)(2), <or> 823.3021(f)(1), or 823.404(d); and
   3-20              (8)  interest earned on money in the account as
   3-21  provided by Subsections (b) and (c) and Section 825.313(b)(1).
   3-22        SECTION 3.  Section 825.308, Government Code, is amended to
   3-23  read as follows:
   3-24        Sec. 825.308.  State Contribution Account.  The retirement
   3-25  system shall deposit in the state contribution account:
   3-26              (1)  all state contributions to the retirement system
   3-27  required by Section 825.404;
    4-1              (2)  amounts from the interest account as provided by
    4-2  Section 825.313(b)(5);
    4-3              (3)  retirement annuities waived or forfeited in
    4-4  accordance with Section 824.601 or 824.004;
    4-5              (4)  fees collected under Section 825.403(h);
    4-6              (5)  fees and interest for reinstatement of service
    4-7  credit or establishment of membership service credit as provided by
    4-8  Section 823.202, 823.501, or 823.502;
    4-9              (6)  the portion of a deposit required by Section
   4-10  823.302 to establish military service credit that represents a fee;
   4-11  <and>
   4-12              (7)  the portion of a deposit required by Section
   4-13  823.401(e) to establish out-of-state service credit that represents
   4-14  a fee; and
   4-15              (8)  the portion of a deposit required by Section
   4-16  823.404 to establish vocational work experience service credit that
   4-17  represents a fee.
   4-18        SECTION 4.  The importance of this legislation and the
   4-19  crowded condition of the calendars in both houses create an
   4-20  emergency and an imperative public necessity that the
   4-21  constitutional rule requiring bills to be read on three several
   4-22  days in each house be suspended, and this rule is hereby suspended,
   4-23  and that this Act take effect and be in force from and after its
   4-24  passage, and it is so enacted.