1-1                                   AN ACT
 1-2     relating to credit in the Employees Retirement System of Texas for
 1-3     certain  out-of-state service.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter F, Chapter 813, Government Code, is
 1-6     amended by adding Section 813.511 to read as follows:
 1-7           Sec. 813.511.  CERTAIN OUT-OF-STATE SERVICE.  (a)  Except as
 1-8     provided by Subsection (b), an eligible member may establish
 1-9     service credit in the  retirement system for employment with a
1-10     public school system maintained wholly or partly by another state
1-11     or territory of the United States or by the United States for
1-12     children of its citizens.  A school receiving funds under 22 U.S.C.
1-13     Section 2701 is considered a public school for the purposes of this
1-14     section.
1-15           (b)  A member may not establish credit under this section for
1-16     service performed for a public school while a member of the armed
1-17     forces and for which the member was compensated by the United
1-18     States or for service credited in the Teacher Retirement System of
1-19     Texas.
1-20           (c)  A member eligible to establish credit under this section
1-21     is one who has at least five years of service credit in the
1-22     retirement system and is an employee of the Texas School for the
1-23     Deaf or the Texas School for the Blind and Visually Impaired.
1-24           (d)  A member may establish credit under this section by
 2-1     depositing with the retirement system:
 2-2                 (1)  a contribution based on the member's monthly
 2-3     compensation at the time credit is sought and computed for the
 2-4     number of months for which credit is sought at the combined
 2-5     contribution rates required for the state and employee members of
 2-6     the system  for new service;
 2-7                 (2)  interest computed on the basis of the state fiscal
 2-8     year at an annual rate of 10 percent from the date the service was
 2-9     performed to the date of deposit; and
2-10                 (3)  any membership fees required of members of the
2-11     system during the period of the service.
2-12           (e)  The amount of service credit a member may establish
2-13     under this section may not exceed the lesser of the number of
2-14     months of  service credit the member has in the retirement system
2-15     or 120 months.
2-16           (f)  The retirement system shall deposit the compensation
2-17     contribution in the member's individual account in the employees
2-18     saving account, interest in the state accumulation account, and
2-19     membership fees in the expense account.
2-20           (g)  The retirement system shall determine the amount to be
2-21     deposited in each case and may not grant service credit under this
2-22     section until the member provides proof of eligibility for the
2-23     credit that is satisfactory to the retirement system.
2-24           (h)  The retirement system may not use service credit granted
2-25     under this section in computing a member's average monthly
2-26     compensation.
2-27           SECTION 2.  This Act takes effect September 1, 1999.
 3-1           SECTION 3.  The importance of this legislation and the
 3-2     crowded condition of the calendars in both houses create an
 3-3     emergency and an imperative public necessity that the
 3-4     constitutional rule requiring bills to be read on three several
 3-5     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3008 was passed by the House on April
         16, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3008 was passed by the Senate on May
         12, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor