By McClendon                                           H.B. No. 853
         77R1226 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to service credit in the Employees Retirement System of
 1-3     Texas for accumulated sick leave.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 813.509, Government Code, is amended by
 1-6     amending Subsections (a), (c), and (e) and by adding Subsection (h)
 1-7     to read as follows:
 1-8           (a)  A member who holds a position included in the employee
 1-9     class of membership during the month that includes the effective
1-10     date of the member's retirement and who retires based on service or
1-11     a disability or who has at least 10 years of membership service and
1-12     who holds a position included in the employee class of membership
1-13     during the month that includes the effective date of the member's
1-14     termination of employment is entitled to service credit in the
1-15     retirement system for the member's sick leave that has accumulated
1-16     and is unused on the last day of employment.  Sick leave is
1-17     creditable in the retirement system at the rate of one month of
1-18     service credit for each 20 days, or 160 hours, of accumulated sick
1-19     leave and one month for each fraction of days or hours remaining
1-20     after division of the total hours of accumulated sick leave by 160.
1-21           (c)  Except as provided by Subsection (d), the disbursing
1-22     officer of each department or agency shall, before the 11th day
1-23     after the effective date of retirement or other employment
1-24     termination described in Subsection (a) of one or more employees of
 2-1     the department or agency, certify to the retirement system:
 2-2                 (1)  the name of each person described in Subsection
 2-3     (a) whose retirement or other termination of employment from the
 2-4     department or agency, and from state service, became effective
 2-5     during the preceding month; and
 2-6                 (2)  the amount of the person's accumulated sick leave
 2-7     on the last day of employment.
 2-8           (e)  On receipt of a certification under Subsection (c) or
 2-9     (d), the retirement system shall grant any credit to which a
2-10     retiring member, [or] retiree, or member whose employment has
2-11     terminated who is a subject of the certification is entitled.  An
2-12     increase in the computation of an annuity because of credit
2-13     provided by this section after a certification under Subsection (c)
2-14     begins with the first payment that becomes due after certification.
2-15           (h)  If a member returns to employment with the state before
2-16     the first anniversary of the date of the member's termination of
2-17     employment, the member is not entitled to service credit previously
2-18     credited under this section.
2-19           SECTION 2.  This Act takes effect September 1, 2001, and
2-20     applies only to a termination of employment that occurs on or after
2-21     that date.