1-1     By:  Barrientos                                        S.B. No. 256
 1-2           (In the Senate - Filed January 25, 1999; January 28, 1999,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     April 26, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; April 26, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 256                By:  Shapleigh
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to reestablishment of service credit in a public
1-11     retirement system participating in the proportionate retirement
1-12     program.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subchapter C, Chapter 803, Government Code, is
1-15     amended by adding Section 803.203 to read as follows:
1-16           Sec. 803.203.  REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS
1-17     EMPLOYMENT.  (a)  Except as provided by Subsections (d) and (e), an
1-18     eligible member of a retirement system to which this chapter
1-19     applies may reestablish service credit, including prior service
1-20     credit if applicable, previously canceled in another retirement
1-21     system to which this chapter applies.
1-22           (b)  A person eligible to reestablish service credit under
1-23     this section is one who terminated service covered by, and withdrew
1-24     contributions from, a retirement system to which this chapter
1-25     applies and began service in a position covered by another
1-26     retirement system to which this chapter applies and under which the
1-27     person currently holds a position.
1-28           (c)  A person may apply to reestablish service credit under
1-29     this section by filing an application with the retirement system in
1-30     which the service was originally credited.  The system shall grant
1-31     the service credit when the system receives from an eligible
1-32     applicant:
1-33                 (1)  a contribution in the amount required to
1-34     reestablish service credit in the retirement system generally,
1-35     including any applicable interest and membership fees; and
1-36                 (2)  a certification that the applicant currently holds
1-37     a position included in the membership of the certifying system.
1-38           (d)  If service is reestablished under this section in the
1-39     Texas County and District Retirement System or the Texas Municipal
1-40     Retirement System, the service is creditable pro rata to the
1-41     account of each subdivision or municipality for which the service
1-42     was performed.  Service credit may not be reestablished under this
1-43     section for service performed for a subdivision or municipality not
1-44     participating in the proportionate retirement program.
1-45           (e)  Service credit to which Section 805.002(e) applies may
1-46     not be reestablished under this section.
1-47           SECTION 2.  Subsections (a) and (b), Section 803.103,
1-48     Government Code, are amended to read as follows:
1-49           (a)  Participation in the proportionate retirement program by
1-50     a subdivision participating in the Texas County and District
1-51     Retirement System or a municipality participating in the Texas
1-52     Municipal Retirement System does not include:
1-53                 (1)  participation with a retirement system described
1-54     by Section 803.0021(1) if the subdivision or municipality has
1-55     elected to so limit its participation and has not revoked the
1-56     election under Subsection (b); [or]
1-57                 (2)  participation with a retirement system described
1-58     by Section 803.0021(3); or
1-59                 (3)  participation with regard to reestablishment of
1-60     service credit under Section 803.203 unless the subdivision or
1-61     municipality has elected to be covered by that section.
1-62           (b)  A subdivision or municipality that has elected to limit
1-63     its participation in the proportionate retirement program may
1-64     revoke the election and remove the limitation on participation.  A
 2-1     subdivision or municipality also may elect to be covered by Section
 2-2     803.203.  An election under this subsection may be made by vote of
 2-3     the governing body of the subdivision or municipality in the manner
 2-4     required for official actions of the governing body.  The governing
 2-5     body shall send notice of an election under this subsection to the
 2-6     board of trustees of the retirement system in which the subdivision
 2-7     or municipality participates.
 2-8           SECTION 3.  The importance of this legislation and the
 2-9     crowded condition of the calendars in both houses create an
2-10     emergency and an imperative public necessity that the
2-11     constitutional rule requiring bills to be read on three several
2-12     days in each house be suspended, and this rule is hereby suspended,
2-13     and that this Act take effect and be in force from and after its
2-14     passage, and it is so enacted.
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