By Cuellar of Webb                                    H.B. No. 1889
       74R2863 GCH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to purchase or reinstatement of membership service credit
    1-3  in the Teacher Retirement System of Texas.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter A, Chapter 823, Government Code, is
    1-6  amended by adding Section 823.004 to read as follows:
    1-7        Sec. 823.004.  ROLLOVER TO ESTABLISH SERVICE CREDIT.  (a)
    1-8  The distributee of an eligible rollover distribution under the
    1-9  Internal Revenue Code of 1986 (Title 26, United States Code) from
   1-10  an eligible retirement plan other than the retirement system who is
   1-11  also a member of the retirement system may elect to have the
   1-12  eligible rollover distribution paid to the retirement system in the
   1-13  form of a direct trustee-to-trustee transfer, for the purpose of
   1-14  establishing or reinstating membership service credit in the
   1-15  retirement system for which the member is eligible under other
   1-16  provisions of this subtitle.
   1-17        (b)  A member may not make an election under this section
   1-18  until the retirement system receives notification from the Internal
   1-19  Revenue Service that the transfer is an eligible rollover
   1-20  distribution to and from an eligible retirement plan.  The
   1-21  retirement system shall seek notification from the Internal Revenue
   1-22  Service about eligible transfers as soon as practicable and shall
   1-23  file any notice received from that agency with the secretary of
   1-24  state for publication in the Texas Register.
    2-1        (c)  Terms used in this section have the meanings assigned by
    2-2  the Internal Revenue Code of 1986.
    2-3        SECTION 2.  Section 823.202, Government Code, is amended by
    2-4  amending Subsection (a) and adding Subsection (d) to read as
    2-5  follows:
    2-6        (a)  An employee who has previously executed and filed a
    2-7  waiver of membership in the retirement system, including an
    2-8  election under Section 830.102, and who, after the waiver, becomes
    2-9  a member may establish membership service credit for service as an
   2-10  employee that would have been creditable as membership service when
   2-11  performed except for the waiver.
   2-12        (d)  Credit may not be established under this section for
   2-13  service for which contributions remain in the optional retirement
   2-14  program established by Chapter 830.
   2-15        SECTION 3.  The importance of this legislation and the
   2-16  crowded condition of the calendars in both houses create an
   2-17  emergency and an imperative public necessity that the
   2-18  constitutional rule requiring bills to be read on three several
   2-19  days in each house be suspended, and this rule is hereby suspended,
   2-20  and that this Act take effect and be in force from and after its
   2-21  passage, and it is so enacted.