By:  Armbrister, et al.                                  S.B. No. 9
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the functions and systems and programs administered by
    1-2  the Teacher Retirement System of Texas.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter A, Chapter 821, Government Code, is
    1-5  amended by adding Section 821.007 to read as follows:
    1-6        Sec. 821.007.  CONTROL OF HOME OFFICE FACILITIES.  The
    1-7  buildings comprising the home office of the retirement system are
    1-8  under the control and custodianship of the retirement system, but
    1-9  the retirement system shall:
   1-10              (1)  comply with space use regulations provided by
   1-11  Section 6.021, State Purchasing and General Services Act (Article
   1-12  601b, Vernon's Texas Civil Statutes); the General Appropriations
   1-13  Act; or other state law; and
   1-14              (2)  lease to other persons at fair market value all
   1-15  significant unused space in the buildings.
   1-16        SECTION 2.  Subchapter A, Chapter 821, Government Code, is
   1-17  amended by adding Section 821.008 to read as follows:
   1-18        Sec. 821.008.  PURPOSE OF RETIREMENT SYSTEM.  The purpose of
   1-19  the retirement system is to invest and protect funds of the
   1-20  retirement system and to deliver the benefits provided by statute,
   1-21  not to advocate or influence legislative action or inaction or to
   1-22  advocate higher benefits.
   1-23        SECTION 3.  Section 824.203, Government Code, is amended by
   1-24  amending Subsection (a) and adding Subsection (e) to read as
    2-1  follows:
    2-2        (a)  Except as provided by Subsections (c), <and> (d), and
    2-3  (e), the standard service retirement annuity is an amount computed
    2-4  on the basis of the member's average annual compensation for the
    2-5  three years of service, whether or not consecutive, in which the
    2-6  member received the highest annual compensation, times two percent
    2-7  for each year of service credit in the retirement system.
    2-8        (e)  The annual standard service retirement annuity for a
    2-9  person who immediately before retirement holds a position as a
   2-10  classroom teacher or full-time librarian, or the annual death
   2-11  benefit annuity based on the service of a member who at the time of
   2-12  death held a position as a classroom teacher or full-time
   2-13  librarian, may not be less than an amount computed on the basis of
   2-14  the minimum annual salary provided by the Education Code for a
   2-15  classroom teacher or full-time librarian, multiplied by two percent
   2-16  for each year of service credit in the retirement system.
   2-17        SECTION 4.  Subchapter C, Chapter 824, Government Code, is
   2-18  amended by adding Section 824.2031 to read as follows:
   2-19        Sec. 824.2031.  BENEFIT IMPROVEMENTS.  (a)  Each regular
   2-20  legislative session, the legislature shall determine whether the
   2-21  performance of the retirement system trust fund makes the fund
   2-22  capable of supporting improvements in the plan of benefits.
   2-23        (b)  A determination under this section shall be founded on
   2-24  the information in the most recent report of an investment
   2-25  performance audit conducted under Section 825.512 and the
   2-26  application of that information to:
   2-27              (1)  the present amortization period for liabilities of
    3-1  the retirement system;
    3-2              (2)  the rate of return on retirement system
    3-3  investments over and above the rate of inflation of the investment
    3-4  portfolio as a whole, of the portion of the investment portfolio
    3-5  entrusted to private investment entities, and of the portion of the
    3-6  investment portfolio entrusted to investment officers who are
    3-7  employees of the retirement system;
    3-8              (3)  economic projections of market conditions and
    3-9  future investment rates of return as reflected in the comptroller's
   3-10  most recent economic forecast and revenue estimate;
   3-11              (4)  the costs, including changes in the amortization
   3-12  period for liabilities of the retirement system, of providing
   3-13  cost-of-living or other increases in benefits to current
   3-14  annuitants; and
   3-15              (5)  an evaluation of the diversity of retirement
   3-16  system investments and whether the portfolio provides low-risk,
   3-17  long-term growth.
   3-18        SECTION 5.  Subsection (e), Section 824.204, Government Code,
   3-19  is amended to read as follows:
   3-20        (e)  The increase in the annuity under Subsection (d)<:>
   3-21              <(1)>  begins with the payment due at the end of
   3-22  September, 1995, or the first monthly payment made to the retiree
   3-23  following the date of death of the person nominated, whichever is
   3-24  later, and is payable to the retiree for the remainder of the
   3-25  retiree's life<; and>
   3-26              <(2)  applies only to a member who retires after August
   3-27  31, 1989>.
    4-1        SECTION 6.  Subsection (b), Section 824.304, Government Code,
    4-2  is amended to read as follows:
    4-3        (b)  If a member has a total of at least 10 years of service
    4-4  credit in the retirement system on the date of disability
    4-5  retirement, the retirement system shall pay the person for the
    4-6  duration of the disability a disability retirement annuity in an
    4-7  amount equal to the greater of:
    4-8              (1)  a standard service retirement annuity computed
    4-9  under Section 824.203 <824.203(a)>; or
   4-10              (2)  $6.50 a month for each year of service credit on
   4-11  the date of retirement.
   4-12        SECTION 7.  Subsection (a), Section 824.402, Government Code,
   4-13  is amended to read as follows:
   4-14        (a)  Except as provided by Section 824.401, the designated
   4-15  beneficiary of a member who dies during a school year in which the
   4-16  member has performed service is eligible to receive at the
   4-17  beneficiary's election the greatest of the following amounts:
   4-18              (1)  an amount equal to twice the member's annual
   4-19  compensation for the school year immediately preceding the school
   4-20  year in which the member dies, or $60,000, whichever is less;
   4-21              (2)  an amount equal to twice the member's rate of
   4-22  annual compensation for the school year in which the member dies,
   4-23  or $60,000, whichever is less;
   4-24              (3)  60 monthly payments of a standard service
   4-25  retirement annuity, computed as provided by Section 824.203
   4-26  <824.203(a)>;
   4-27              (4)  an optional retirement annuity for the designated
    5-1  beneficiary's life in an amount computed as provided by Section
    5-2  824.204(c)(1) as if the member had retired on the last day of the
    5-3  month immediately preceding the month in which the member dies; or
    5-4              (5)  an amount equal to the amount of accumulated
    5-5  contributions in the member's individual account in the member
    5-6  savings account.
    5-7        SECTION 8.  Subsection (b), Section 825.002, Government Code,
    5-8  is amended to read as follows:
    5-9        (b)  The governor shall appoint three members of the board to
   5-10  hold office for staggered terms, with the term of one trustee
   5-11  expiring on August 31 of each odd-numbered year.  These <Two of
   5-12  those three> members must be persons who have demonstrated
   5-13  financial expertise, who have worked in private business or
   5-14  industry, and who have broad investment experience, preferably in
   5-15  investment of pension funds.  One of these members must be
   5-16  appointed from a list of nominees submitted by the speaker of the
   5-17  house of representatives.  None of the members appointed under this
   5-18  subsection may be a member or annuitant of the retirement system.
   5-19        SECTION 9.  Section 825.003, Government Code, is amended to
   5-20  read as follows:
   5-21        Sec. 825.003.  TRUSTEES APPOINTED BY LIEUTENANT GOVERNOR
   5-22  <BOARD OF EDUCATION>.  The lieutenant governor <State Board of
   5-23  Education> shall appoint two members of the board of trustees
   5-24  <subject to confirmation by two-thirds of the senate>.  These
   5-25  members must be persons who have demonstrated financial expertise,
   5-26  have worked in private business or industry, and have broad
   5-27  investment experience, preferably in investment of pension funds.
    6-1  One of these members must be appointed from a list of nominees
    6-2  submitted by the speaker of the house of representatives.
    6-3        SECTION 10.  Subsections (a), (b), and (f), Section 825.0032,
    6-4  Government Code, are amended to read as follows:
    6-5        (a)  Except as provided by Subsection (b), a person is not
    6-6  eligible for appointment to the board if the person or the person's
    6-7  spouse:
    6-8              (1)  is employed by or participates in the management
    6-9  of a business entity or other organization receiving funds from the
   6-10  retirement system; <or>
   6-11              (2)  owns or controls, directly or indirectly, more
   6-12  than a 10 percent interest in a business entity or other
   6-13  organization receiving funds from the retirement system; or
   6-14              (3)  uses or receives a substantial amount of tangible
   6-15  goods, services, or funds from the retirement system, other than
   6-16  compensation or reimbursement authorized by law for board
   6-17  membership, attendance, or expenses.
   6-18        (b)  Subsection (a) does not apply to employment by,
   6-19  participation in the management of, or ownership or control of an
   6-20  interest in a business entity or other organization on behalf of
   6-21  the retirement system.  Subsection (a)(3) does not apply to a
   6-22  person who is nominated for appointment under Section 825.002(c),
   6-23  (d), or (e).
   6-24        (f)  A person may not serve as a trustee or act as the
   6-25  general counsel to the board or the retirement system if the person
   6-26  is required to register as a lobbyist under Chapter 305 because of
   6-27  the person's activities for compensation on behalf of a business or
    7-1  an association related to the operation of the board.
    7-2        SECTION 11.  Subchapter A, Chapter 825, Government Code, is
    7-3  amended by adding Section 825.0041 to read as follows:
    7-4        Sec. 825.0041.  BOARD MEMBER TRAINING.  (a)  Before a member
    7-5  of the board may assume the member's duties and, if applicable,
    7-6  before the member may be confirmed by the senate the member must
    7-7  complete at least one course of the training program established
    7-8  under this section.
    7-9        (b)  A training program established under this section shall
   7-10  provide information to the member regarding:
   7-11              (1)  the enabling legislation that created the
   7-12  retirement system and its policy-making body to which the member is
   7-13  appointed to serve;
   7-14              (2)  the programs operated by the system;
   7-15              (3)  the role and functions of the system;
   7-16              (4)  the rules of the system with an emphasis on the
   7-17  rules that relate to disciplinary and investigatory authority;
   7-18              (5)  the current budget for the system;
   7-19              (6)  the results of the most recent formal audit of the
   7-20  system;
   7-21              (7)  the requirements of the:
   7-22                    (A)  open meetings law, Chapter 551;
   7-23                    (B)  open records law, Chapter 552; and
   7-24                    (C)  administrative procedure law, Chapter 2001;
   7-25              (8)  the requirements of the conflict of interest laws
   7-26  and other laws relating to public officials; and
   7-27              (9)  any applicable ethics policies adopted by the
    8-1  system or the Texas Ethics Commission.
    8-2        SECTION 12.  Section 825.006, Government Code, is amended to
    8-3  read as follows:
    8-4        Sec. 825.006.  Sunset Provision.  The board of trustees of
    8-5  the Teacher Retirement System of Texas is subject to review under
    8-6  Chapter 325 (Texas Sunset Act), but is not abolished under that
    8-7  chapter.  The board shall be reviewed during the period in which
    8-8  state agencies abolished in 2007 <1995> are reviewed or, if the
    8-9  retirement system's operating expenses are not subject to the
   8-10  appropriations process on September 1, 1995, the board shall be
   8-11  reviewed during the period in which state agencies abolished in
   8-12  1997 are reviewed.  This section expires September 1, 2007 <1995>.
   8-13        SECTION 13.  Subsections (a) and (c), Section 825.010,
   8-14  Government Code, are amended to read as follows:
   8-15        (a)  It is a ground for removal from the board if a trustee:
   8-16              (1)  does not have at the time of appointment the
   8-17  qualifications required for the trustee's position;
   8-18              (2)  does not maintain during service on the board the
   8-19  qualifications required for the trustee's position;
   8-20              (3)  violates a prohibition established by Section
   8-21  825.002(b) or 825.0032;
   8-22              (4) <(2)>  cannot because of illness or disability
   8-23  discharge the trustee's <person's> duties for a substantial part of
   8-24  the term for which the trustee <person> is appointed <because of
   8-25  illness or disability>; or
   8-26              (5) <(3)>  is absent from more than half of the
   8-27  regularly scheduled board meetings that the person is eligible to
    9-1  attend during a calendar year unless the absence is excused by
    9-2  majority vote of the board.
    9-3        (c)  If the executive director has knowledge that a potential
    9-4  ground for removal exists, the executive director shall notify the
    9-5  presiding officer <chairman> of the board of the ground.  The
    9-6  presiding officer <chairman> shall then notify the appropriate
    9-7  appointing officer and the attorney general <or body> that a
    9-8  potential ground for removal exists.  If the potential ground for
    9-9  removal involves the presiding officer, the executive director
   9-10  shall notify the next highest officer of the board, who shall
   9-11  notify the appropriate appointing officer and the attorney general
   9-12  that a potential ground for removal exists.
   9-13        SECTION 14.  Section 825.108, Government Code, is amended by
   9-14  adding Subsections (e) and (f) to read as follows:
   9-15        (e)  The board shall prepare annually a complete and detailed
   9-16  written report accounting for all funds received and disbursed by
   9-17  the retirement system during the preceding fiscal year.  The annual
   9-18  report must meet the reporting requirements applicable to financial
   9-19  reporting provided in the General Appropriations Act.
   9-20        (f)  The board shall prepare biennially a complete and
   9-21  detailed written report describing and explaining any use of
   9-22  appropriated amounts, retirement system assets, or other resources
   9-23  for governmental relations, member counseling, or official
   9-24  publications.  The report must be filed with the committees of the
   9-25  senate and the house of representatives having jurisdiction over
   9-26  appropriations, with the committees of the senate and the house of
   9-27  representatives having principal jurisdiction over legislation
   10-1  governing the retirement system, and with the Legislative Budget
   10-2  Board at the time the retirement system submits its budget request
   10-3  for the next state fiscal biennium.
   10-4        SECTION 15.  Subsections (a), (b), and (f), Section 825.113,
   10-5  Government Code, are amended to read as follows:
   10-6        (a)  The executive director or the executive director's
   10-7  designee <board> shall provide to its trustees and employees, as
   10-8  often as necessary, information regarding their qualification for
   10-9  office or employment under this chapter and their responsibilities
  10-10  under applicable laws relating to standards of conduct for state
  10-11  officers or employees.
  10-12        (b)  The board shall develop and implement policies that
  10-13  clearly separate the policy-making <define the respective>
  10-14  responsibilities of the board and the management responsibilities
  10-15  of the executive director and the staff of the retirement system.
  10-16        (f)  The retirement system shall comply with federal and
  10-17  state laws related to program and facility accessibility.  The
  10-18  executive director <board> shall prepare and maintain a written
  10-19  plan that describes how a person who does not speak English can be
  10-20  provided reasonable access to the board's programs.  The board
  10-21  shall also comply with federal and state laws for program and
  10-22  facility accessibility.
  10-23        SECTION 16.  Subchapter B, Chapter 825, Government Code, is
  10-24  amended by adding Section 825.115 to read as follows:
  10-25        Sec. 825.115.  APPLICABILITY OF CERTAIN LAWS.  The board is
  10-26  subject to the open meetings law, Chapter 551, and the
  10-27  administrative procedure law, Chapter 2001.
   11-1        SECTION 17.  Section 825.201, Government Code, is amended to
   11-2  read as follows:
   11-3        Sec. 825.201.  PRESIDING OFFICER <Chairman>.  The governor
   11-4  shall designate a member of the board as the presiding officer of
   11-5  the board to serve in that capacity at the pleasure of the
   11-6  governor.  <The board of trustees shall elect a chairman.  The
   11-7  chairman must be a member of the board.>
   11-8        SECTION 18.  Section 825.206, Government Code, is amended by
   11-9  adding Subsections (d) and (e) to read as follows:
  11-10        (d)  Each actuarial experience study must include a review of
  11-11  all actuarial assumptions in light of relevant experience,
  11-12  important trends, and economic projections.  Interrelated actuarial
  11-13  assumptions shall be reviewed carefully to ensure that adjustments
  11-14  in one assumption are reflected appropriately in related
  11-15  assumptions.
  11-16        (e)  Each actuarial valuation must include a detailed
  11-17  analysis comparing experience factors to their actuarial
  11-18  assumptions.  The analysis shall be developed and reported to
  11-19  identify significant variations in actual experience from what was
  11-20  assumed.  A material variation should be the focus of an actuarial
  11-21  experience study.
  11-22        SECTION 19.  Subsections (a), (b), and (c), Section 825.213,
  11-23  Government Code, are amended to read as follows:
  11-24        (a)  The executive director or the executive director's
  11-25  designee shall develop an intra-agency career ladder program that
  11-26  addresses opportunities for mobility and advancement for employees
  11-27  within the retirement system.  The program shall require
   12-1  intra-agency posting of all <nonentry level> positions concurrently
   12-2  with any public posting.
   12-3        (b)  The executive director or the executive director's
   12-4  designee shall develop a system of annual performance evaluations
   12-5  that are based on documented employee performance.  All merit pay
   12-6  for system employees must be based on the system established under
   12-7  this subsection.
   12-8        (c)  The executive director or the executive director's
   12-9  designee shall prepare and maintain a written policy statement to
  12-10  assure implementation of a program of equal employment opportunity
  12-11  under which all personnel transactions are made without regard to
  12-12  race, color, disability, sex, religion, age, or national origin.
  12-13  The policy statement must include:
  12-14              (1)  personnel policies, including policies relating to
  12-15  recruitment, evaluation, selection, appointment, training, and
  12-16  promotion of personnel that are in compliance with requirements of
  12-17  Chapter 21, Labor Code <the Commission on Human Rights Act (Article
  12-18  5221k, Vernon's Texas Civil Statutes)>;
  12-19              (2)  a comprehensive analysis of the retirement
  12-20  system's work force that meets federal and state guidelines;
  12-21              (3)  procedures by which a determination can be made
  12-22  about the extent of <significant> underuse in the retirement
  12-23  system's work force of all persons for whom federal or state
  12-24  guidelines encourage a more equitable balance; and
  12-25              (4)  reasonable methods to appropriately address those
  12-26  areas of <significant> underuse.
  12-27        SECTION 20.  Subchapter C, Chapter 825, Government Code, is
   13-1  amended by adding Section 825.215 to read as follows:
   13-2        Sec. 825.215.  ADVOCACY PROHIBITED.  An employee of the
   13-3  retirement system may not advocate increased benefits or engage in
   13-4  activities to advocate or influence legislative action or inaction.
   13-5  Advocacy or activity of this nature is grounds for dismissal of an
   13-6  employee.
   13-7        SECTION 21.  Section 825.301, Government Code, is amended by
   13-8  adding Subsection (f) to read as follows:
   13-9        (f)  The legislature finds that economically targeted
  13-10  investments assist in the improvement of the economic well-being of
  13-11  the State of Texas and its communities and residents.  Economic
  13-12  stimulation includes job creation, development and savings,
  13-13  business creation, increases or improvements in the stock of
  13-14  affordable housing, and improvements in infrastructure.  Therefore,
  13-15  the board of trustees may invest assets of the retirement system in
  13-16  prudent investments to finance projects or businesses in areas
  13-17  designated as distressed communities as provided by Section
  13-18  481.195.
  13-19        SECTION 22.  Section 825.308, Government Code, is amended to
  13-20  read as follows:
  13-21        Sec. 825.308.  State Contribution Account.  The retirement
  13-22  system shall deposit in the state contribution account:
  13-23              (1)  all state contributions to the retirement system
  13-24  required by Section 825.404;
  13-25              (2)  amounts from the interest account as provided by
  13-26  Section 825.313(b)(5);
  13-27              (3)  retirement annuities waived or forfeited in
   14-1  accordance with Section 824.601 or 824.004;
   14-2              (4)  fees collected under Section 825.403(h);
   14-3              (5)  fees and interest for reinstatement of service
   14-4  credit or establishment of membership service credit as provided by
   14-5  Section 823.202, 823.501, or 823.502;
   14-6              (6)  the portion of a deposit required by Section
   14-7  823.302 to establish military service credit that represents a fee;
   14-8  <and>
   14-9              (7)  the portion of a deposit required by Section
  14-10  823.401(e) to establish out-of-state service credit that represents
  14-11  a fee; and
  14-12              (8)  all membership fees required by this subtitle,
  14-13  including the fees under Section 823.3021(f)(2).
  14-14        SECTION 23.  Sections 825.312, 825.313, and 825.314,
  14-15  Government Code, are amended to read as follows:
  14-16        Sec. 825.312.  Expense Account.  (a)  The retirement system
  14-17  shall deposit in the expense account:
  14-18              (1)  money transferred from the interest account or the
  14-19  state contribution account under Section 825.313(c) <all membership
  14-20  fees required by this subtitle, including the fees under Section
  14-21  823.3021(f)(2);>
  14-22              <(2)  money required to be deposited in the account by
  14-23  Section 825.313(b)(3) or 825.313(c)>; and
  14-24              (2) <(3)>  money received from the Texas Public School
  14-25  <Retired> Employees Group Insurance Program for service performed
  14-26  for the program by the retirement system.
  14-27        (b)  The retirement system shall pay from the account all
   15-1  administrative expenses of <administration and maintenance of> the
   15-2  retirement system that exceed the amounts appropriated under
   15-3  Section 825.404(d) and that are required to perform the fiduciary
   15-4  duties of the board.
   15-5        Sec. 825.313.  Transfers From Interest or State Contribution
   15-6  Account.  (a)  Annually, the retirement system shall transfer from
   15-7  the interest account to the state contribution account amounts
   15-8  accumulated under Section 825.311(2).
   15-9        (b)  On August 31 of each year, the retirement system shall
  15-10  make the following transfers from the interest account:
  15-11              (1)  to the member savings account, an amount computed
  15-12  using the rate prescribed by Section 825.307(b);
  15-13              (2)  to the retired reserve account, an amount equal to
  15-14  4 3/4  percent of the average balance of the retired reserve
  15-15  account for that fiscal year or, if the transfer is authorized by
  15-16  resolution of the board, an amount computed at a greater rate if
  15-17  the actuary recommends the greater rate to adequately fund the
  15-18  retired reserve account;
  15-19              (3)  <to the expense account, an amount designated by
  15-20  the board of trustees in accordance with Subsection (c);>
  15-21              <(4)>  to the benefit increase reserve account, an
  15-22  amount representing interest on the average annual balance of the
  15-23  benefit increase reserve account at a rate set by the board of
  15-24  trustees in accordance with Section 825.106; and
  15-25              (4) <(5)>  to the state contribution account, the
  15-26  amount remaining in the interest account after the other transfers
  15-27  required or authorized by this section are made.
   16-1        (c)  The board of trustees, by resolution recorded in its
   16-2  minutes, may <shall> transfer from the interest account, or from
   16-3  the state contribution account in an amount that does not exceed
   16-4  the sum of membership fees deposited in the account the preceding
   16-5  fiscal year, to the expense account an amount necessary to cover
   16-6  the expenses of the retirement system for the fiscal year that
   16-7  exceed the amount of operating expenses appropriated under Section
   16-8  825.404(d) and that are required to perform the fiduciary duties of
   16-9  the board, including the expense of servicing mortgages insured by
  16-10  the Federal Housing Administration under the National Housing Act
  16-11  (12 U.S.C. Section 1701 et seq.).
  16-12        Sec. 825.314.  Use And Reporting of State Contributions and
  16-13  Other Appropriations and Assets.  (a)  The retirement system shall
  16-14  use all assets contributed by the state, other than operating
  16-15  expenses appropriated under Section 825.404(d), to pay benefits
  16-16  authorized by this subtitle.
  16-17        (b)  The staff of the retirement system shall report to the
  16-18  board at each board meeting the amounts and uses since the
  16-19  preceding board meeting of any money expended by the system from
  16-20  amounts transferred under Section 825.313(c) and include an
  16-21  explanation of why the amounts were needed to perform the fiduciary
  16-22  duties of the board.  The retirement system annually shall prepare
  16-23  and issue to each contributing member and annuitant and to the
  16-24  governor, lieutenant governor, and speaker of the house of
  16-25  representatives a summary of the reports presented during the
  16-26  preceding year to the board.
  16-27        SECTION 24.  Subchapter D, Chapter 825, Government Code, is
   17-1  amended by adding Section 825.315 to read as follows:
   17-2        Sec. 825.315.  PROHIBITED USE OF ASSETS AND APPROPRIATIONS.
   17-3  A trustee or employee of the retirement system may not use an asset
   17-4  of the retirement system, including facilities or utilities, or
   17-5  amounts appropriated for operating expenses under Section
   17-6  825.404(d), to advocate or influence legislative action or
   17-7  inaction.
   17-8        SECTION 25.  Subsection (d), Section 825.401, Government
   17-9  Code, is amended to read as follows:
  17-10        (d)  The retirement system shall deposit all membership fees
  17-11  in the state contribution <expense> account.
  17-12        SECTION 26.  The heading of Section 825.404, Government Code,
  17-13  is amended to read as follows:
  17-14        Sec. 825.404.  COLLECTION OF STATE CONTRIBUTIONS AND
  17-15  APPROPRIATED OPERATING EXPENSES.
  17-16        SECTION 27.  Section 825.404, Government Code, is amended by
  17-17  redesignating and amending Subsection (d) as Subsection (e) and
  17-18  adding a new Subsection (d) to read as follows:
  17-19        (d)  The legislature shall appropriate from the general
  17-20  revenue fund a specified amount of money to be used to pay
  17-21  operating expenses of the retirement system for each fiscal year.
  17-22        (e) <(d)>  All money appropriated by the state to the
  17-23  retirement system shall be paid to the state contribution account
  17-24  in equal monthly installments as provided by Section 403.093(c),
  17-25  Government Code, except money appropriated under Subsection (d),
  17-26  which remains in the general revenue fund until expenses are
  17-27  approved under Chapter 2103.
   18-1        SECTION 28.  Section 825.511, Government Code, is amended to
   18-2  read as follows:
   18-3        Sec. 825.511.  Complaint Files.  (a)  The retirement system
   18-4  shall keep an information file about each complaint filed with the
   18-5  system that the system has authority to resolve.  The system shall
   18-6  provide to the person filing the complaint and the persons or
   18-7  entities complained about the system's policies and procedures
   18-8  pertaining to complaint investigation and resolution.  The system,
   18-9  at least quarterly and until final disposition of the complaint,
  18-10  shall notify the person filing the complaint and the persons or
  18-11  entities complained about of the status of the complaint unless the
  18-12  notice would jeopardize an undercover investigation.
  18-13        (b)  The retirement system shall keep information about each
  18-14  complaint filed with the system.  The information shall include:
  18-15              (1)  the date the complaint is received;
  18-16              (2)  the name of the complainant;
  18-17              (3)  the subject matter of the complaint;
  18-18              (4)  a record of all persons contacted in relation to
  18-19  the complaint;
  18-20              (5)  a summary of the results of the review or
  18-21  investigation of the complaint; and
  18-22              (6)  for complaints for which the system took no
  18-23  action, an explanation of the reason the complaint was closed
  18-24  without action.  <If a written complaint is filed with the
  18-25  retirement system that the system has authority to resolve, the
  18-26  system, at least quarterly and until final disposition of the
  18-27  complaint, shall notify the parties to the complaint of the status
   19-1  of the complaint unless the notice would jeopardize an undercover
   19-2  investigation.>
   19-3        SECTION 29.  Subchapter F, Chapter 825, Government Code, is
   19-4  amended by adding Sections 825.512, 825.513, 825.514, and 825.515
   19-5  to read as follows:
   19-6        Sec. 825.512.  INVESTMENT PERFORMANCE AUDIT.  (a)  The
   19-7  legislative audit committee biennially shall select an independent
   19-8  firm with substantial experience in evaluating institutional
   19-9  investment practices and performance to evaluate the retirement
  19-10  system's investment practices and performance.
  19-11        (b)  The legislative audit committee shall determine specific
  19-12  areas to be evaluated, but the first evaluation must be a
  19-13  comprehensive analysis of the retirement system's investment
  19-14  program.
  19-15        (c)  A report of an evaluation under this section shall be
  19-16  filed with the legislative audit committee not later than December
  19-17  1 of each even-numbered year.
  19-18        (d)  The retirement system shall pay the costs of each
  19-19  evaluation under this section.
  19-20        (e)  The retirement system shall submit an annual investment
  19-21  performance report not later than the 25th day of the month
  19-22  following each fiscal year to the governor, the lieutenant
  19-23  governor, the speaker of the house of representatives, the
  19-24  executive director of the State Pension Review Board, the
  19-25  legislative audit committee, the committees of the senate and the
  19-26  house of representatives having jurisdiction over appropriations,
  19-27  the committees of the senate and the house of representatives
   20-1  having principal jurisdiction over legislation governing the
   20-2  retirement system, and the Legislative Budget Board.  The report
   20-3  shall include a listing of all commissions and fees paid by the
   20-4  system during the reporting period for the sale, purchase, or
   20-5  management of system assets.  The report shall be in a form
   20-6  recommended by the evaluating firm.
   20-7        Sec. 825.513.  INFORMATION FOR PUBLICATION.  The retirement
   20-8  system shall verify with the State Pension Review Board the
   20-9  accuracy of information about the effects of proposed legislation
  20-10  on benefits and the trust fund before including the information in
  20-11  an official publication of the retirement system.
  20-12        Sec. 825.514.  HISTORICALLY UNDERUTILIZED BUSINESSES.  The
  20-13  retirement system is subject to the provisions, including Sections
  20-14  1.03 and 3.10, of the State Purchasing and General Services Act
  20-15  (Article 601b, Vernon's Texas Civil Statutes), that relate to
  20-16  historically underutilized businesses.
  20-17        Sec. 825.515.  INFORMATION ABOUT MEMBER POSITIONS.  (a)  The
  20-18  retirement system shall compile and maintain records identifying
  20-19  members and the types of positions they have held as members, the
  20-20  length of service in each type of position, and whether service in
  20-21  each type of position is or was as a full-time employee.  The
  20-22  retirement system by rule may require employers to certify
  20-23  information compiled under this section.
  20-24        (b)  Information contained in records compiled and maintained
  20-25  under this section is confidential within the limits prescribed by
  20-26  Section 825.507.
  20-27        SECTION 30.  Section 1, Article 3.50-4, Insurance Code, is
   21-1  amended to read as follows:
   21-2        Sec. 1.  Short Title.  This article may be cited as the Texas
   21-3  Public School <Retired> Employees Group Insurance Act.
   21-4        SECTION 31.  Subdivisions (3) and (4), Section 2, Article
   21-5  3.50-4, Insurance Code, are amended to read as follows:
   21-6              (3)  "Dependent" means:
   21-7                    (A)  a spouse of a retiree or active member;
   21-8                    (B)  a retiree's, an active member's, or a
   21-9  deceased active member's unmarried child who is younger than 25
  21-10  years of age including:
  21-11                          (i)  an adopted child;
  21-12                          (ii)  a foster child, a stepchild, or other
  21-13  child who is in a regular parent-child relationship; and
  21-14                          (iii)  a recognized natural child; and
  21-15                    (C)  a retiree's or active member's recognized
  21-16  natural child, adopted child, foster child, stepchild, or other
  21-17  child who is in a regular parent-child relationship and who lives
  21-18  with or whose care is provided by the retiree, active member, or
  21-19  surviving spouse on a regular basis, regardless of the child's age,
  21-20  if the child is mentally retarded or physically incapacitated to
  21-21  such an extent as to be dependent on the retiree, active member, or
  21-22  surviving spouse for care or support, as determined by the trustee,
  21-23  or in the case of a deceased active member, a recognized natural
  21-24  child, adopted child, foster child, stepchild, or other child who
  21-25  was in a regular parent-child relationship and who lived with or
  21-26  whose care was provided by the deceased active member on a regular
  21-27  basis, regardless of the child's age, if the child is mentally
   22-1  retarded or physically incapacitated to such an extent as to have
   22-2  been dependent on the deceased active member or surviving spouse
   22-3  for care or support, as determined by the trustee.
   22-4              (4)  "Fund" means the Texas public school <retired>
   22-5  employees group insurance fund.
   22-6        SECTION 32.  Subsection (a), Section 3, Article 3.50-4,
   22-7  Insurance Code, is amended to read as follows:
   22-8        (a)  The Texas Public School <Retired> Employees Group
   22-9  Insurance Program is established to provide for an insurance plan
  22-10  or plans under this article.
  22-11        SECTION 33.  Subsection (a), Section 5, Article 3.50-4,
  22-12  Insurance Code, is amended to read as follows:
  22-13        (a)  The trustee may adopt rules, plans, procedures, and
  22-14  orders reasonably necessary to implement this article, including:
  22-15              (1)  establishment of minimum benefit and financing
  22-16  standards for group insurance coverage to be provided to all
  22-17  retirees, active employees, dependents, surviving spouses, and
  22-18  surviving dependent children;
  22-19              (2)  establishment of basic and optional group coverage
  22-20  to be provided to retirees, active employees, dependents, surviving
  22-21  spouses, and surviving dependent children;
  22-22              (3)  establishment of the procedures for contributions
  22-23  and deductions;
  22-24              (4)  establishment of periods for enrollment and
  22-25  selection of optional coverage and procedures for enrolling and
  22-26  exercising options under the plan;
  22-27              (5)  determination of methods and procedures for claims
   23-1  administration;
   23-2              (6)  study of the operation of all insurance coverage
   23-3  provided under this article;
   23-4              (7)  administration of the fund;
   23-5              (8)  adoption of a timetable for the development of
   23-6  minimum benefit and financial standards for group insurance
   23-7  coverage, establishment of group insurance plans, and the taking of
   23-8  bids for and awarding of contracts for insurance plans; and
   23-9              (9)  contracting with an independent and experienced
  23-10  group insurance consultant or actuary, who does not receive
  23-11  insurance commissions from any insurance company, for advice and
  23-12  counsel in implementing and administering this program.
  23-13        SECTION 34.  Article 3.50-4, Insurance Code, is amended by
  23-14  adding Section 7A to read as follows:
  23-15        Sec. 7A.  PARTICIPATION BY ACTIVE EMPLOYEES.  (a)  A public
  23-16  school district may elect to participate in the program provided
  23-17  under this article.  A district that elects to participate must
  23-18  accept the schedule of costs adopted by the trustee and may not
  23-19  offer an alternative health benefit plan to its active employees
  23-20  during the period of its participation in the program.
  23-21        (b)  The trustee by rule shall provide:
  23-22              (1)  eligibility requirements for participation by a
  23-23  school district, which may include criteria based on size;
  23-24              (2)  restrictions on the ability of a school district
  23-25  to begin or discontinue participation, which may include a minimum
  23-26  period of participation and limited periods for elections to begin
  23-27  or discontinue participation;
   24-1              (3)  administrative fees to be paid by participating
   24-2  school districts to cover the trustee's administrative costs in
   24-3  extending the program to active employees; and
   24-4              (4)  requirements to minimize the effects of adverse
   24-5  selection on the program.
   24-6        (c)  The trustee shall provide optional group coverages for
   24-7  active employees participating in the program.  The coverages may
   24-8  be combined with or similar to, but separate from, coverages
   24-9  provided to retirees.  The sum of premiums and administrative fees
  24-10  received from participating school districts and active employees
  24-11  must cover all expenses of school district employee participation
  24-12  in the program.
  24-13        (d)  Participation by an active employee of a participating
  24-14  school district is optional with the employee.  A school district
  24-15  may not offer a financial incentive to an active employee for
  24-16  declining to participate in the program.  An active employee is
  24-17  entitled to obtain coverage for dependents in the same manner as a
  24-18  participating retiree.
  24-19        (e)  Each participating school district shall contribute for
  24-20  each district employee covered by the program an amount equal to
  24-21  the cost for the employee only of the plans of group coverages
  24-22  authorized by the trustee for active employees, except that the
  24-23  school district's contribution may not exceed the amount
  24-24  contributed for each state employee by the state under the Texas
  24-25  Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
  24-26  Vernon's Texas Insurance Code).
  24-27        (f)  Each employee covered by the program shall pay that
   25-1  portion of the cost of coverage selected by the employee that
   25-2  exceeds the amount of employer contributions.
   25-3        (g)  The trustee shall deposit in the fund all fees collected
   25-4  under Section 44(d), Chapter 812, Acts of the 73rd Legislature,
   25-5  1993, except that portion used to conduct the survey required by
   25-6  Section 44.  The trustee shall continue to collect the fee through
   25-7  the 1996-97 school year, after which time the fee expires.
   25-8        (h)  The state may make contributions to the fund in addition
   25-9  to those required by Section 16(b) of this article for the purpose
  25-10  of assisting in the expansion of the program to active employees.
  25-11        (i)  The trustee shall begin enrollment in the program for
  25-12  active employees to be effective beginning with the 1996-97 school
  25-13  year.
  25-14        SECTION 35.  Section 9, Article 3.50-4, Insurance Code, is
  25-15  amended to read as follows:
  25-16        Sec. 9.  Benefit Certificates.  At such times, or upon such
  25-17  events, as designated by the trustee, each insurance carrier shall
  25-18  issue to each retiree, active employee, surviving spouse, or
  25-19  surviving dependent child insured under this article a certificate
  25-20  of insurance that:
  25-21              (1)  states the benefits to which the person <retiree,
  25-22  surviving spouse, or surviving dependent child> is entitled;
  25-23              (2)  states to whom the benefits are payable;
  25-24              (3)  states to whom the claims must be submitted; and
  25-25              (4)  summarizes the provisions of the policy
  25-26  principally affecting the person <retiree, surviving spouse, or
  25-27  surviving dependent child>.
   26-1        SECTION 36.  Subsection (a), Section 10, Article 3.50-4,
   26-2  Insurance Code, is amended to read as follows:
   26-3        (a)  Not later than the 180th day after the end of each state
   26-4  fiscal year, the trustee shall make a written report to the State
   26-5  Board of Insurance concerning the insurance coverages provided and
   26-6  the benefits and services being received by persons <retirees,
   26-7  surviving spouses, dependents, and surviving dependent children>
   26-8  insured under this article.
   26-9        SECTION 37.  Sections 12 and 13, Article 3.50-4, Insurance
  26-10  Code, are amended to read as follows:
  26-11        Sec. 12.  Death Claims:  Beneficiaries.  The amount of group
  26-12  life insurance and group accidental death and dismemberment
  26-13  insurance covering a retiree, active employee, surviving spouse,
  26-14  dependent, or surviving dependent child at the date of death shall
  26-15  be paid, on the establishment of a valid claim, only:
  26-16              (1)  to the beneficiary or beneficiaries designated by
  26-17  the person <retiree, surviving spouse, dependent, or surviving
  26-18  dependent child> in a signed and witnessed written document
  26-19  received before death in the trustee's office; or
  26-20              (2)  if no beneficiary is properly designated or in
  26-21  existence, to persons in accordance with the trustee's death
  26-22  benefit provisions in Subsection (b), Section 824.103, Government
  26-23  Code.
  26-24        Sec. 13.  Automatic Coverage.  A retiree or active employee
  26-25  who applies during an enrollment period may not be denied any of
  26-26  the group insurance basic coverage provided under this article
  26-27  unless the person <retiree> has been found under Section 18A of
   27-1  this article to have defrauded or attempted to defraud the Texas
   27-2  Public School <Retired> Employees Group Insurance Program.
   27-3        SECTION 38.  The heading of Section 15, Article 3.50-4,
   27-4  Insurance Code, is amended to read as follows:
   27-5        Sec. 15.  <RETIRED> SCHOOL EMPLOYEES GROUP INSURANCE FUND.
   27-6        SECTION 39.  Subsection (a), Section 15, Article 3.50-4,
   27-7  Insurance Code, is amended to read as follows:
   27-8        (a)  The <retired> school employees group insurance fund is
   27-9  created.  The State Treasurer is the custodian of the fund, and the
  27-10  trustee shall administer the fund.  All contributions from active
  27-11  employees, retirees, and the state, contributions for optional
  27-12  coverages, investment income, appropriations for implementation of
  27-13  this program, and other money required or authorized to be paid
  27-14  into the fund shall be paid into the fund.  From the fund shall be
  27-15  paid, without state fiscal year limitation, the appropriate
  27-16  premiums to the carrier or carriers providing group coverage under
  27-17  the plan or plans under this article, claims for benefits under the
  27-18  group coverage, and the amounts expended by the trustee for
  27-19  administration of the program.  The appropriate portion of the
  27-20  contributions to the fund to provide for incurred but unreported
  27-21  claim reserves and contingency reserves, as determined by the
  27-22  trustee, shall be retained in the fund.
  27-23        SECTION 40.  Article 3.50-4, Insurance Code, is amended by
  27-24  adding Section 15A to read as follows:
  27-25        Sec. 15A.  FUNDING STUDY.  (a)  The legislative audit
  27-26  committee shall select an independent firm with substantial
  27-27  experience in evaluating group insurance plans to conduct a study
   28-1  and make recommendations to the legislature and the trustee
   28-2  concerning the funding of the plan provided by this article for the
   28-3  benefit of and participation by active employees and retirees of
   28-4  public school districts.  In its study of funding alternatives, the
   28-5  evaluating firm may consider and recommend procedures having an
   28-6  effect on funding, including procedures to control costs and
   28-7  minimize adverse selection.
   28-8        (b)  A report of the study under this section, including
   28-9  recommendations resulting from the study, shall be filed not later
  28-10  than December 1, 1996, with the legislative audit committee, the
  28-11  lieutenant governor, the speaker of the house of representatives,
  28-12  and the trustee.
  28-13        (c)  The trustee shall pay the costs of the study from the
  28-14  fund.
  28-15        (d)  This section expires January 1, 1997.
  28-16        SECTION 41.  Subsections (a), (b), (d), and (f), Section 18A,
  28-17  Article 3.50-4, Insurance Code, are amended to read as follows:
  28-18        (a)  After notice and hearing as provided by this section,
  28-19  the trustee may expel from participation in the Texas Public School
  28-20  <Retired> Employees Group Insurance Program any retiree, active
  28-21  employee, surviving spouse, dependent, or surviving dependent child
  28-22  who submits a fraudulent claim under, or has defrauded or attempted
  28-23  to defraud, any health benefits plan offered under the program.
  28-24        (b)  On its motion or on the receipt of a complaint, the
  28-25  trustee may call and hold a hearing to determine whether a person
  28-26  <retiree, surviving spouse, dependent, or surviving dependent
  28-27  child> has submitted a fraudulent claim under, or has defrauded or
   29-1  attempted to defraud, any health benefits plan offered under the
   29-2  Texas Public School <Retired> Employees Group Insurance Program.
   29-3        (d)  If the trustee, at the conclusion of the hearing, issues
   29-4  a decision that finds that the accused <retiree, surviving spouse,
   29-5  dependent, or surviving dependent child> submitted a fraudulent
   29-6  claim or has defrauded or attempted to defraud any health benefits
   29-7  plan offered under the Texas Public School <Retired> Employees
   29-8  Group Insurance Program, the trustee shall expel the person
   29-9  <retiree, surviving spouse, dependent, or surviving dependent
  29-10  child> from participation in the program.
  29-11        (f)  A person <retiree, surviving spouse, dependent, or
  29-12  surviving dependent child> expelled from the Texas Public School
  29-13  <Retired> Employees Group Insurance Program may not be insured by
  29-14  any health insurance plan offered by the program for a period, to
  29-15  be determined by the trustee, of up to five years from the date the
  29-16  expulsion takes effect.
  29-17        SECTION 42.  Subsection (a), Section 18B, Article 3.50-4,
  29-18  Insurance Code, is amended to read as follows:
  29-19        (a)  Section 825.507, Government Code <35.507, Title 110B,
  29-20  Revised Statutes>, concerning the confidentiality of information in
  29-21  records that are in the custody of the Teacher Retirement System of
  29-22  Texas, applies to information in records that are in the custody of
  29-23  the retirement system regarding retirees, active employees,
  29-24  annuitants, or beneficiaries under the Texas Public School
  29-25  <Retired> Employees Group Insurance Program.
  29-26        SECTION 43.  Subsections (c), (d), and (i), Section 18C,
  29-27  Article 3.50-4, Insurance Code, are amended to read as follows:
   30-1        (c)  The trustee, the Texas public school <retired> employees
   30-2  group insurance program, the <retired> school employees group
   30-3  insurance fund, and the board of trustees, officers, advisory
   30-4  committee members, and employees of the trustee are not liable for
   30-5  damages arising from the acts or omissions of health care providers
   30-6  who are participating health care providers in the coordinated care
   30-7  network established by the trustee.  Those health care providers
   30-8  are independent contractors and are responsible for their own acts
   30-9  and omissions.
  30-10        (d)  The trustee, the Texas public school <retired> employees
  30-11  group insurance program, the <retired> school employees group
  30-12  insurance fund, or a member of a credentialing committee, or the
  30-13  board of trustees, officers, advisory committee members, or
  30-14  employees of the trustee are not liable for damages arising from
  30-15  any act, statement, determination, recommendation made, or act
  30-16  reported, without malice, in the course of the evaluation of the
  30-17  qualifications of health care providers or of the patient care
  30-18  rendered by those providers.
  30-19        (i)  A credentialing committee, a person participating in a
  30-20  credentialing review, a health care provider, the trustee, the
  30-21  Texas public school <retired> employees group insurance program, or
  30-22  the board of trustees, officers, advisory committee members, or
  30-23  employees of the trustee that are named as defendants in any civil
  30-24  action filed as a result of participation in the credentialing
  30-25  process may use otherwise confidential information obtained for
  30-26  legitimate internal business and professional purposes, including
  30-27  use in their own defense.  Use of information under this subsection
   31-1  does not constitute a waiver of the confidential and privileged
   31-2  nature of the information.
   31-3        SECTION 44.  (a)  Monthly payments of a death or retirement
   31-4  benefit annuity by the Teacher Retirement System of Texas are
   31-5  increased beginning with the payment due at the end of September,
   31-6  1995.
   31-7        (b)  Except as provided by Subsection (c) of this section,
   31-8  the amount of the monthly increase is computed by multiplying the
   31-9  previous monthly benefit by a percentage determined in accordance
  31-10  with the following table:
  31-11  LATEST RETIREMENT DATE OR, IF APPLICABLE, DATE OF DEATH    INCREASE
  31-12  Before September 1, 1972                                      14%
  31-13  On or after September 1, 1972, but before September 1, 1973   15%
  31-14  On or after September 1, 1973, but before September 1, 1974   17%
  31-15  On or after September 1, 1974, but before September 1, 1975   14%
  31-16  On or after September 1, 1975, but before September 1, 1976   13%
  31-17  On or after September 1, 1976, but before September 1, 1977   16%
  31-18  On or after September 1, 1977, but before September 1, 1978   14%
  31-19  On or after September 1, 1978, but before September 1, 1979   13%
  31-20  On or after September 1, 1979, but before September 1, 1980   12%
  31-21  On or after September 1, 1980, but before September 1, 1981    9%
  31-22  On or after September 1, 1981, but before September 1, 1982    8%
  31-23  On or after September 1, 1982, but before September 1, 1983    7%
  31-24  On or after September 1, 1983, but before September 1, 1985    8%
  31-25  On or after September 1, 1985, but before September 1, 1986    7%
  31-26  On or after September 1, 1986, but before September 1, 1987    8%
  31-27  On or after September 1, 1987, but before September 1, 1989    7%
   32-1  On or after September 1, 1989, but before September 1, 1990    5%
   32-2  On or after September 1, 1990, but before September 1, 1992    3%
   32-3  On or after September 1, 1992, but before September 1, 1993    2%
   32-4        (c)  An annuitant is entitled to the greater of:
   32-5              (1)  a monthly benefit annuity computed as if:
   32-6                    (A)  Subtitle C, Title 8, Government Code, as it
   32-7  existed on January 1, 1995, had been in effect on the date of
   32-8  retirement or on the date of death, as applicable; and
   32-9                    (B)  all benefits increases, including that
  32-10  provided by Subsection (b) of this section, were included that are
  32-11  applicable to the annuity and were provided after the date the
  32-12  annuity began; or
  32-13              (2)  the monthly benefit annuity option selected at the
  32-14  time of retirement or death:
  32-15                    (A)  recomputed on the basis of one-twelfth of
  32-16  the minimum annual salary provided by the Education Code for a
  32-17  classroom teacher or full-time librarian, multiplied by two percent
  32-18  for each year of service credit in the retirement system;
  32-19                    (B)  actuarially reduced, if applicable, for
  32-20  early retirement; and
  32-21                    (C)  excluding the increase provided by
  32-22  Subsection (b) of this section.
  32-23        SECTION 45.  The terms of members of the Board of Trustees of
  32-24  the Teacher Retirement System of Texas appointed under Section
  32-25  825.003, Government Code, as it existed before the effective date
  32-26  of this section, expire on the effective date of this section.  The
  32-27  changes in the qualifications and methods of appointment of other
   33-1  members of the board of trustees made by this Act apply only to
   33-2  members appointed for terms that begin on or after the effective
   33-3  date of this section.  In implementing the changes, the governor
   33-4  shall appoint a member of the board of trustees from a list of
   33-5  nominees submitted by the speaker of the house of representatives
   33-6  to a term expiring August 31, 2001, and the lieutenant governor
   33-7  shall appoint a member of the board from a list of nominees
   33-8  submitted by the speaker to a term expiring August 31, 1997, and
   33-9  another member of the board without the necessity of consultation
  33-10  with the speaker to a term expiring August 31, 2001.
  33-11        SECTION 46.  The Teacher Retirement System of Texas shall
  33-12  develop an initial space allocation plan as defined in rules of the
  33-13  General Services Commission and submit the plan to the commission
  33-14  for approval not later than March 1, 1996.  The retirement system
  33-15  shall implement an approved plan not later than September 1, 1996.
  33-16        SECTION 47.  This Act takes effect September 1, 1995, except
  33-17  Section 45 and this section, which take effect August 31, 1995.
  33-18        SECTION 48.  The importance of this legislation and the
  33-19  crowded condition of the calendars in both houses create an
  33-20  emergency and an imperative public necessity that the
  33-21  constitutional rule requiring bills to be read on three several
  33-22  days in each house be suspended, and this rule is hereby suspended.