1-1     By:  Greenberg (Senate Sponsor - Barrientos)          H.B. No. 3008
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on State
 1-4     Affairs; May 7, 1999, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 7, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to credit in the Employees Retirement System of Texas for
 1-9     certain  out-of-state service.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter F, Chapter 813, Government Code, is
1-12     amended by adding Section 813.511 to read as follows:
1-13           Sec. 813.511.  CERTAIN OUT-OF-STATE SERVICE.  (a)  Except as
1-14     provided by Subsection (b), an eligible member may establish
1-15     service credit in the  retirement system for employment with a
1-16     public school system maintained wholly or partly by another state
1-17     or territory of the United States or by the United States for
1-18     children of its citizens.  A school receiving funds under 22 U.S.C.
1-19     Section 2701 is considered a public school for the purposes of this
1-20     section.
1-21           (b)  A member may not establish credit under this section for
1-22     service performed for a public school while a member of the armed
1-23     forces and for which the member was compensated by the United
1-24     States or for service credited in the Teacher Retirement System of
1-25     Texas.
1-26           (c)  A member eligible to establish credit under this section
1-27     is one who has at least five years of service credit in the
1-28     retirement system and is an employee of the Texas School for the
1-29     Deaf or the Texas School for the Blind and Visually Impaired.
1-30           (d)  A member may establish credit under this section by
1-31     depositing with the retirement system:
1-32                 (1)  a contribution based on the member's monthly
1-33     compensation at the time credit is sought and computed for the
1-34     number of months for which credit is sought at the combined
1-35     contribution rates required for the state and employee members of
1-36     the system  for new service;
1-37                 (2)  interest computed on the basis of the state fiscal
1-38     year at an annual rate of 10 percent from the date the service was
1-39     performed to the date of deposit; and
1-40                 (3)  any membership fees required of members of the
1-41     system during the period of the service.
1-42           (e)  The amount of service credit a member may establish
1-43     under this section may not exceed the lesser of the number of
1-44     months of  service credit the member has in the retirement system
1-45     or 120 months.
1-46           (f)  The retirement system shall deposit the compensation
1-47     contribution in the member's individual account in the employees
1-48     saving account, interest in the state accumulation account, and
1-49     membership fees in the expense account.
1-50           (g)  The retirement system shall determine the amount to be
1-51     deposited in each case and may not grant service credit under this
1-52     section until the member provides proof of eligibility for the
1-53     credit that is satisfactory to the retirement system.
1-54           (h)  The retirement system may not use service credit granted
1-55     under this section in computing a member's average monthly
1-56     compensation.
1-57           SECTION 2.  This Act takes effect September 1, 1999.
1-58           SECTION 3.  The importance of this legislation and the
1-59     crowded condition of the calendars in both houses create an
1-60     emergency and an imperative public necessity that the
1-61     constitutional rule requiring bills to be read on three several
1-62     days in each house be suspended, and this rule is hereby suspended.
1-63                                  * * * * *