HBA-GUM H.B. 3536 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3536 By: Longoria Pensions & Investments 4/12/1999 Introduced BACKGROUND AND PURPOSE Currently, the seven statewide retirement systems, which offer proportionate retirement, have different and varying rules and regulations as to who is eligible to buy back service credit. Because these rules and regulations lack uniformity, some member employees have mistakenly terminated membership in a retirement system. H.B. 3635 provides uniformity in policy of eligibility for members of each of the retirement systems to which Chapter 803, Government Code (Proportionate Retirement Program), applies. This bill also authorizes a member to reestablish service credit, previously canceled in another retirement system to which Chapter 803 applies and provides that the regulations do not apply to service credit to which Section 805.002(e) (relating to the reinstatement of service credit canceled by a termination of membership that occurred after August 31, 1993) applies. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 803, Government Code, by adding Section 803.203, as follows: Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS EMPLOYMENT. (a) Authorizes an eligible member of a retirement system to which this chapter (Credit Transfer Between Employees Retirement) applies to reestablish service credit, including prior service credit if applicable, previously canceled in another retirement system to which this chapter applies. Provides that Subsections (d) and (e) are exceptions to this section. (b) Establishes the conditions for which a person becomes eligible to reestablish service credit under this section. (c) Provides that a person becomes authorized to reestablish service credit under this section by filing an application with the retirement system in which the service was originally credited. Requires the system to grant the service credit upon receipt of a specified contribution generally required to reestablish service credit in the retirement system and a certification that the applicant currently holds a position included in the membership of the certifying system. (d) Provides that if the service is reestablished under this section in the Texas County and District Retirement System, or the Texas Municipal Retirement System, the service is creditable pro rata to the account of each subdivision or municipality for which the service was performed. Prohibits reestablishment of service credit under this section for service performed for a subdivision or municipality not participating in the proportionate retirement program. (e) Provides that this section does not apply to service credit to which Section 805.002(e) (relating to the reinstatement of service credit canceled by a termination of membership that occurred after August 31, 1993) applies. SECTION 2.Emergency clause. Effective date: upon passage.