1-1 By: Ellis S.B. No. 535
1-2 (In the Senate - Filed February 11, 1997; February 17, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 25, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 13, Nays 0; April 25, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 535 By: Ellis
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the optional retirement program for certain employees
1-11 of public institutions of higher education.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 830.002, Government Code, is amended by
1-14 amending Subsection (c) and adding Subsection (d) to read as
1-15 follows:
1-16 (c) The Employees Retirement System of Texas [Higher
1-17 Education Coordinating Board] shall develop policies, practices,
1-18 and procedures as necessary in accordance with applicable statutes
1-19 to provide greater uniformity in the administration of the
1-20 retirement annuity insurance program available to employees of
1-21 Texas state colleges and universities through the optional
1-22 retirement program.
1-23 (d) The Employees Retirement System of Texas shall establish
1-24 minimum standards comporting with the purpose of Section 830.001
1-25 that a company, or the investments it offers, must meet to be
1-26 eligible to offer a participant in the optional retirement program
1-27 an investment authorized under Subsection (a) or Section 830.004
1-28 but may not otherwise limit the investment that a participant may
1-29 purchase under the program. Standards adopted under this
1-30 subsection apply to an institution of higher education only if
1-31 standards are not in effect under Section 830.004(a).
1-32 SECTION 2. Section 830.004, Government Code, is amended by
1-33 amending Subsection (a) and adding Subsection (c) to read as
1-34 follows:
1-35 (a) A governing board may provide for contributions to any
1-36 type of investment authorized by Section 403(b) of the Internal
1-37 Revenue Code of 1986 (26 U.S.C. Section 403), as it existed on
1-38 January 1, 1981, and may arrange the purchase of investments from
1-39 any company that is qualified in this state to offer investments
1-40 that qualify under this subsection or Section 830.002(a). A
1-41 governing board may establish minimum standards, including minimum
1-42 participation requirements, that a company, or the investments it
1-43 offers, must meet to be eligible to offer a participant in the
1-44 optional retirement program an investment authorized by this
1-45 subsection or Section 830.002(a) but may not otherwise limit the
1-46 investment that a participant may purchase under the program if the
1-47 investment is authorized by this subsection or Section 830.002(a)
1-48 and qualifies under the applicable standards established under this
1-49 subsection or Section 830.002(d) [annuity contracts from any
1-50 insurance or annuity company that is qualified to do business in
1-51 this state].
1-52 (c) A governing board shall accept applications from
1-53 companies wanting to offer investments for purchase under the
1-54 optional retirement program and deny or approve the applications
1-55 based on the applicable standards at least once each year.
1-56 SECTION 3. Section 830.006, Government Code, is amended to
1-57 read as follows:
1-58 Sec. 830.006. REPORTS FROM INSTITUTIONS. (a) The governing
1-59 board of each institution of higher education[, other than the
1-60 Texas Higher Education Coordinating Board,] shall annually submit a
1-61 report to the Employees Retirement System of Texas [coordinating
1-62 board] that includes information concerning the number of
1-63 participants and eligible positions and the amount of
1-64 contributions.
2-1 (b) The governing board of each institution required to file
2-2 a report under Subsection (a) shall keep records, make
2-3 certifications, and furnish to the Employees Retirement System of
2-4 Texas [Higher Education Coordinating Board] information and reports
2-5 as required by the retirement system [coordinating board] to enable
2-6 it to carry out its functions under this subtitle.
2-7 [(c) The Texas Higher Education Coordinating Board shall
2-8 prepare the report required by Subsection (a) and shall maintain
2-9 the information required by Subsection (b) with respect to its own
2-10 employees.]
2-11 SECTION 4. Subsection (b), Section 830.101, Government Code,
2-12 is amended to read as follows:
2-13 (b) Eligibility to participate in the optional retirement
2-14 program is subject to rules adopted by the Employees Retirement
2-15 System of Texas [Higher Education Coordinating Board].
2-16 SECTION 5. The Texas Higher Education Coordinating Board
2-17 shall transfer all property relating to its duties as general
2-18 supervisor of institutions of higher education under the optional
2-19 retirement program established by Chapter 830, Government Code, to
2-20 the Employees Retirement System of Texas on the effective date of
2-21 this Act. A rule adopted by the Texas Higher Education
2-22 Coordinating Board under Chapter 830, Government Code, in effect on
2-23 the effective date of this Act remains in effect until amended or
2-24 repealed by a rule adopted by the Employees Retirement System of
2-25 Texas.
2-26 SECTION 6. This Act takes effect September 1, 1997.
2-27 SECTION 7. The importance of this legislation and the
2-28 crowded condition of the calendars in both houses create an
2-29 emergency and an imperative public necessity that the
2-30 constitutional rule requiring bills to be read on three several
2-31 days in each house be suspended, and this rule is hereby suspended.
2-32 * * * * *