1-1 AN ACT
1-2 relating to systems and programs administered by the Teacher
1-3 Retirement System of Texas; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 803.402, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 803.402. RECORDS. Except as provided by other law
1-8 [Section 825.507], records of members and beneficiaries of a
1-9 retirement system to which this chapter applies that are in the
1-10 custody of any retirement system to which this chapter applies are
1-11 confidential and not subject to disclosure and are exempt from the
1-12 public access provisions of Chapter 552. The records or
1-13 information in the records may be transferred between retirement
1-14 systems to which this chapter applies to the extent necessary to
1-15 administer the proportionate retirement program provided by this
1-16 chapter.
1-17 SECTION 2. Section 821.103, Government Code, is amended to
1-18 read as follows:
1-19 Sec. 821.103. CANCELLATION OF TEACHER CERTIFICATE.
1-20 (a) After receiving notice from the board of trustees of an
1-21 offense under Section 821.101 and after complying with Chapter 2001
1-22 and rules adopted by the State Board for Educator Certification [a
1-23 hearing], the State Board for Educator Certification [state
1-24 commissioner of education] may cancel the teacher certificate of a
1-25 person if the State Board for Educator Certification [commissioner]
2-1 determines that the person committed the offense.
2-2 (b) The executive director of the State Board for Educator
2-3 Certification may enter into an agreed sanction [A person whose
2-4 teacher certificate is canceled under this section may appeal the
2-5 commissioner's decision to the State Board of Education].
2-6 (c) A criminal prosecution of an offender under Section
2-7 821.101 is not a prerequisite to action by the State Board for
2-8 Educator Certification or its executive director [commissioner
2-9 under this section].
2-10 SECTION 3. Section 822.002, Government Code, is amended to
2-11 read as follows:
2-12 Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT.
2-13 [(a)] An employee of the public school system is not permitted to
2-14 be a member of the retirement system if the employee:
2-15 (1) [executed and filed a waiver of membership prior
2-16 to the effective date of this subtitle and has not elected
2-17 membership pursuant to Subsection (b);]
2-18 [(2)] is eligible and elects to participate in the
2-19 optional retirement program under Chapter 830;
2-20 (2) [(3)] is solely employed by a public institution
2-21 of higher education that as a condition of employment requires the
2-22 employee to be enrolled as a student in the institution; or
2-23 (3) [(4)] has retired under the retirement system and
2-24 has not been reinstated to membership pursuant to Section
2-25 [823.502,] 824.005[,] or 824.307.
2-26 [(b) An employee under Subsection (a)(1) may become a member
3-1 of the retirement system at the beginning of a school year, but the
3-2 employee will not be entitled to credit for waived service unless
3-3 payment for the waived service is made under Section 823.202.]
3-4 SECTION 4. Section 822.006, Government Code, is amended to
3-5 read as follows:
3-6 Sec. 822.006. RESUMPTION OF MEMBERSHIP AFTER TERMINATION. A
3-7 person whose membership in the retirement system has been
3-8 terminated and who resumes membership must enter the retirement
3-9 system on the same terms as a person entering service for the first
3-10 time and is not entitled to credit for previous or other terminated
3-11 service unless it is reinstated under Section 823.501 [or 823.502].
3-12 SECTION 5. Subsection (a), Section 823.004, Government Code,
3-13 is amended to read as follows:
3-14 (a) All credit for military service, out-of-state service,
3-15 developmental leave, [service previously waived,] work experience
3-16 in a career or technological field, and service transferred to the
3-17 retirement system under Chapter 805 shall be computed on a
3-18 September 1 through August 31 school year. Payments for service
3-19 described by this section must be completed not later than the
3-20 later of the member's retirement date or the last day of the month
3-21 in which the member submits a retirement application.
3-22 SECTION 6. Subchapter E, Chapter 823, Government Code, is
3-23 amended by adding Section 823.405 to read as follows:
3-24 Sec. 823.405. CREDIT PURCHASE OPTION. (a) A member may
3-25 establish not more than three years of equivalent membership
3-26 service credit under this section if the member has at least seven
4-1 years of actual membership service.
4-2 (b) A member may establish service credit under this section
4-3 by depositing with the retirement system, for each year of service
4-4 credit, the actuarial present value, at the time of deposit, of the
4-5 additional standard retirement annuity benefits that would be
4-6 attributable to the purchase of the service credit under this
4-7 section, based on rates and tables recommended by the retirement
4-8 system's actuary and adopted by the board of trustees.
4-9 (c) After a member makes the deposits required by this
4-10 section, the retirement system shall grant the member one year of
4-11 equivalent membership service credit for each year of credit
4-12 approved.
4-13 (d) The retirement system shall deposit the amount of the
4-14 actuarial present value of the service credit purchased in the
4-15 member's individual account in the employees saving account.
4-16 (e) The board of trustees may adopt rules to administer this
4-17 section.
4-18 SECTION 7. Subsection (e), Section 824.002, Government Code,
4-19 is amended to read as follows:
4-20 (e) Not later than the later of a member's retirement date
4-21 or the last day of the month in which the member's application for
4-22 retirement is submitted, a member applying for service retirement
4-23 may reinstate withdrawn contributions,[;] make deposits for
4-24 [service previously waived,] military service[,] and equivalent
4-25 membership service,[;] and receive service credit as provided by
4-26 this subtitle.
5-1 SECTION 8. Subsection (a), Section 824.1012, Government
5-2 Code, is amended to read as follows:
5-3 (a) As an exception to Section 824.101(c), a retiree who
5-4 selected an optional service retirement annuity under Section
5-5 824.204(c)(1), (c)(2), or (c)(5) or an optional disability
5-6 retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5)
5-7 may revoke the designation of the beneficiary to receive the
5-8 annuity on the death of the retiree, if a court in a divorce
5-9 proceeding involving the retiree and beneficiary approves or orders
5-10 the revocation in the divorce decree or acceptance of a property
5-11 settlement or if the beneficiary is the spouse, a former spouse, or
5-12 an adult child of the retiree and signs a notarized consent to the
5-13 revocation. The revocation takes effect when the retirement system
5-14 receives it.
5-15 SECTION 9. Subsection (a), Section 824.203, Government Code,
5-16 is amended to read as follows:
5-17 (a) Except as provided by Subsections (c), (d), and (e), the
5-18 standard service retirement annuity is an amount computed on the
5-19 basis of the member's average annual compensation for the three
5-20 years of service, whether or not consecutive, in which the member
5-21 received the highest annual compensation, times 2.3 [2.2] percent
5-22 for each year of service credit in the retirement system.
5-23 SECTION 10. Subsection (c), Section 824.304, Government
5-24 Code, is amended to read as follows:
5-25 (c) Before the 31st day after the date on which the medical
5-26 board certifies a member's disability, the member may reinstate
6-1 withdrawn contributions and make deposits for [service previously
6-2 waived,] military service[,] and equivalent membership service and
6-3 receive service credit as provided by this subtitle.
6-4 SECTION 11. Subsections (b), (c), and (d), Section 824.404,
6-5 Government Code, are amended to read as follows:
6-6 (b) If the designated beneficiary is the spouse or a
6-7 dependent parent of the decedent, the beneficiary may elect to
6-8 receive for life a monthly benefit of $250 [$200], beginning
6-9 immediately or on the date the beneficiary becomes 65 years old,
6-10 whichever is later.
6-11 (c) If the designated beneficiary is the spouse of the
6-12 decedent and has one or more children less than 18 years old or has
6-13 custody of one or more children of the decedent who are less than
6-14 18 years old, the designated beneficiary may elect to receive:
6-15 (1) a monthly benefit of $350 [$300] payable until the
6-16 youngest child becomes 18 years old; and
6-17 (2) when the youngest child has attained the age of
6-18 18, a monthly benefit for life of $250 [$200], beginning on the
6-19 date the beneficiary becomes 65 years old.
6-20 (d) If the designated beneficiary or beneficiaries are the
6-21 decedent's dependent children who are less than 18 years old, their
6-22 guardian may elect to receive for them:
6-23 (1) a monthly benefit of $350 [$300], payable as long
6-24 as two or more children are less than 18 years old; and
6-25 (2) a monthly benefit of $250 [$200], payable as long
6-26 as only one child is less than 18 years old.
7-1 SECTION 12. Section 824.602, Government Code, is amended by
7-2 amending Subsection (a) and adding Subsection (m) to read as
7-3 follows:
7-4 (a) Subject to Section 825.506, the retirement system may
7-5 not, under Section 824.601, withhold a monthly benefit payment if
7-6 the retiree is employed in a Texas public educational institution:
7-7 (1) as a substitute only with pay not more than the
7-8 daily rate of substitute pay established by the employer and, if
7-9 the retiree is a disability retiree, the employment has not
7-10 exceeded a total of 90 days in the school year;
7-11 (2) in a position, other than as a substitute, on no
7-12 more than a one-half time basis for the month;
7-13 (3) in one or more positions on as much as a full-time
7-14 basis, if the work occurs in not more than six months of a school
7-15 year that begins after the retiree's effective date of retirement;
7-16 (4) in a position, other than as a substitute, on no
7-17 more than a one-half time basis for no more than 90 days in the
7-18 school year, if the retiree is a disability retiree; [or]
7-19 (5) in a position as a classroom teacher on as much as
7-20 a full-time basis, if the retiree has retired under Section
7-21 824.202(a) [without reduction for retirement at an early age], is
7-22 certified under Subchapter B, Chapter 21, Education Code, to teach
7-23 the subjects assigned, is teaching in an acute shortage area as
7-24 determined [defined] by the board of trustees of a school district
7-25 as provided by Subsection (m) [commissioner of education], and has
7-26 been separated from service with all public schools for at least 12
8-1 months; or
8-2 (6) as a bus driver for a school district on as much
8-3 as a full-time basis, if the retiree has retired under Section
8-4 824.202(a).
8-5 (m) The board of trustees of a school district by rule shall
8-6 determine, for purposes of Subsection (a), whether there are acute
8-7 shortage areas in the district. A determination must be based on
8-8 acute shortage area guidelines that are adopted by the commissioner
8-9 of education. The guidelines adopted by the commissioner of
8-10 education must include:
8-11 (1) a list of acute shortage areas;
8-12 (2) suggested criteria for identifying local acute
8-13 shortage areas; and
8-14 (3) a requirement that a certified applicant for a
8-15 position as a classroom teacher who is not a retiree be given
8-16 preference in hiring.
8-17 SECTION 13. Section 824.603, Government Code, is amended to
8-18 read as follows:
8-19 Sec. 824.603. EXCLUSION FROM CREDIT. Employment of a
8-20 retiree described by Section 824.602(a) does not entitle a retiree
8-21 to additional service credit, and the retiree so employed is not
8-22 required to make contributions to the system from compensation for
8-23 that employment. [Such employment may not be considered in
8-24 applying the provisions of Section 823.502.]
8-25 SECTION 14. Subsection (b), Section 824.805, Government
8-26 Code, is amended to read as follows:
9-1 (b) A member participating in the plan on September 1, 2001
9-2 [1999], may, before December 31, 2001 [September 1, 2000], elect to
9-3 discontinue participation in the plan on a form prescribed by and
9-4 filed with the retirement system. The retirement system shall make
9-5 account transfers and change records for a member who elects under
9-6 this subsection to discontinue participation in the plan as if the
9-7 member had never participated in the plan.
9-8 SECTION 15. Subsection (a), Section 825.307, Government
9-9 Code, is amended to read as follows:
9-10 (a) The retirement system shall deposit in a member's
9-11 individual account in the member savings account:
9-12 (1) the amount of contributions to the retirement
9-13 system that is deducted from the member's compensation;
9-14 (2) the portion of a deposit made on or after
9-15 resumption of membership that represents the amount of retirement
9-16 benefits received;
9-17 (3) the portion of a deposit to reinstate service
9-18 credit previously canceled that represents the amount withdrawn or
9-19 refunded;
9-20 (4) [the portion of a deposit to establish membership
9-21 service credit previously waived that is required by Section
9-22 823.202(b)(1);]
9-23 [(5) the portion of a deposit to establish membership
9-24 service credit for service performed after retirement that is
9-25 required by Section 823.502(c)(3);]
9-26 [(6)] the portion of a deposit to establish military
10-1 service credit required by Section 823.302(c);
10-2 (5) [(7)] the portion of a deposit to establish
10-3 equivalent membership service credit required by Section
10-4 823.401(d), 823.402(e)(1) or (e)(2), 823.404(c), 823.405, or
10-5 823.3021(f)(1); and
10-6 (6) [(8)] interest earned on money in the account as
10-7 provided by Subsections (b) and (c) and Section 825.313(c).
10-8 SECTION 16. Section 825.308, Government Code, is amended to
10-9 read as follows:
10-10 Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement
10-11 system shall deposit in the state contribution account:
10-12 (1) all state contributions to the retirement system
10-13 required by Section 825.404;
10-14 (2) amounts from the interest account as provided by
10-15 Section 825.313(b)(2) [825.313(b)(5)];
10-16 (3) retirement annuities waived or forfeited in
10-17 accordance with Section 824.601 or 824.004;
10-18 (4) fees collected under Section 825.403(h);
10-19 (5) fees and interest for reinstatement of service
10-20 credit or establishment of membership service credit as provided by
10-21 Section [823.202,] 823.501[, or 823.502];
10-22 (6) the portion of a deposit required by Section
10-23 823.302 to establish military service credit that represents a fee;
10-24 and
10-25 (7) the portion of a deposit required by Section
10-26 823.401(e) to establish out-of-state service credit that represents
11-1 a fee.
11-2 SECTION 17. Subsection (a), Section 825.408, Government
11-3 Code, is amended to read as follows:
11-4 (a) An employing district that fails to remit, before the
11-5 seventh [11th] day after the last day of a month, all member and
11-6 employer deposits and documentation of the deposits required by
11-7 this subchapter to be remitted by the district for the month shall
11-8 pay to the retirement system, in addition to the deposits, interest
11-9 on the unpaid or undocumented amounts at an annual rate compounded
11-10 monthly. The rate of interest is the rate established under
11-11 Section 825.313(b)(1), plus two percent. Interest required under
11-12 this section is creditable to the interest account. On request,
11-13 the retirement system may grant a waiver of the deadline imposed by
11-14 this subsection based on a district's financial or technological
11-15 resources.
11-16 SECTION 18. The heading of Section 825.507, Government Code,
11-17 is amended to read as follows:
11-18 Sec. 825.507. RECORD CONFIDENTIALITY [OF INFORMATION ABOUT
11-19 MEMBERS, RETIREES, ANNUITANTS, BENEFICIARIES, OR ALTERNATE PAYEES].
11-20 SECTION 19. Section 825.507, Government Code, is amended by
11-21 amending Subsections (a) through (d) and adding Subsections (f) and
11-22 (g) to read as follows:
11-23 (a) Records of a participant [Information contained in
11-24 records] that are in the custody of the retirement system or of an
11-25 administrator, carrier, attorney, consultant, or governmental
11-26 agency acting in cooperation with or on behalf of the retirement
12-1 system are [concerning an individual member, retiree, annuitant,
12-2 beneficiary, or alternate payee is] confidential and not subject to
12-3 public disclosure in a form that would identify an individual and
12-4 are exempt from the public access provisions of Chapter 552, except
12-5 as otherwise provided by this section.
12-6 (b) The retirement system may release records of a
12-7 participant, including a participant to which Chapter 803 applies,
12-8 to [under Section 552.101, and may not be disclosed in a form
12-9 identifiable with a specific individual unless]:
12-10 (1) the participant or the participant's attorney or
12-11 guardian or another person who the executive director determines is
12-12 acting on behalf of the participant;
12-13 (2) [the information is disclosed to:]
12-14 [(A)] the [individual or the individual's
12-15 attorney, guardian,] executor or[,] administrator of[, conservator,
12-16 or other person who the executive director determines is acting in
12-17 the interest of the individual or] the deceased participant's
12-18 [individual's] estate, including information relating to the
12-19 deceased participant's beneficiary;
12-20 (3) [(B)] a spouse or former spouse of the participant
12-21 [individual] if the executive director determines that the
12-22 information is relevant to the spouse's or former spouse's interest
12-23 in member accounts, benefits, or other amounts payable by the
12-24 retirement system;
12-25 (4) an administrator, carrier, consultant, attorney,
12-26 or agent acting on behalf of the retirement system;
13-1 (5) a governmental entity, an employer, or the
13-2 designated agent of an employer, only to the extent the retirement
13-3 system needs to share the information to perform the purposes of
13-4 the retirement system, as determined by the executive director;
13-5 (6) [(C) a governmental official or employee if the
13-6 executive director determines that disclosure of the information
13-7 requested is reasonably necessary to the performance of the duties
13-8 of the official or employee; or]
13-9 [(D)] a person authorized by the participant
13-10 [individual] in writing to receive the information;
13-11 (7) a federal or state criminal law enforcement agency
13-12 that requests a record for a law enforcement purpose;
13-13 (8) the attorney general to the extent necessary to
13-14 enforce child support; or
13-15 (9) a party in response [(2) the information is
13-16 disclosed pursuant] to a subpoena issued under applicable law if
13-17 [and] the executive director determines that the participant
13-18 [individual] will have a reasonable opportunity to contest the
13-19 subpoena.
13-20 (c) The records of a participant remain confidential after
13-21 release to a person as authorized by this section.
13-22 [(b)] This section does not prevent the disclosure or
13-23 confirmation, on an individual basis, of the status or identity of
13-24 a participant [an individual] as a member, former member, retiree,
13-25 deceased member or retiree, beneficiary, or alternate payee of the
13-26 retirement system.
14-1 (d) [(c)] The executive director may designate other
14-2 employees of the retirement system to make the necessary
14-3 determinations under this section [Subsection (a)].
14-4 [(d)] A determination and disclosure under this section
14-5 [Subsection (a)] may be made without notice to the participant
14-6 [individual member, retiree, annuitant, beneficiary, or alternate
14-7 payee].
14-8 (f) This section does not authorize the retirement system to
14-9 compile or disclose a list of participants' names, addresses, or
14-10 social security numbers unless the executive director determines
14-11 that a compilation or disclosure is necessary to administer the
14-12 retirement system.
14-13 (g) In this section, "participant" means a member, former
14-14 member, retiree, annuitant, beneficiary, or alternate payee of the
14-15 retirement system.
14-16 SECTION 20. Notwithstanding Section 824.601, Government
14-17 Code, the Teacher Retirement System of Texas may not withhold a
14-18 monthly benefit payment from a retiree who:
14-19 (1) before January 1, 2001, retired under Section
14-20 824.202, Government Code; and
14-21 (2) is employed by a school district or an
14-22 open-enrollment charter school.
14-23 SECTION 21. Section 1, Chapter 22, Acts of the 57th
14-24 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
14-25 Texas Civil Statutes), as amended by Chapters 1340 and 1341, Acts
14-26 of the 75th Legislature, Regular Session, 1997, is amended to read
15-1 as follows:
15-2 Sec. 1. (a) This section and Section 2 of this Act apply
15-3 to:
15-4 (1) the governing boards [Local Boards of Education of
15-5 the Public Schools of this State, the Governing Boards] of [the]
15-6 state-supported institutions of higher education;
15-7 (2) [,] the Texas Higher Education Coordinating Board;
15-8 (3) [,] the Texas Education Agency;
15-9 (4) [,] the Texas School for the Deaf;
15-10 (5) [,] the Texas School for the Blind and Visually
15-11 Impaired;
15-12 (6) [,] the Texas Department of Mental Health and
15-13 Mental Retardation and the state schools, state hospitals, and
15-14 other facilities and institutions under its jurisdiction;
15-15 (7) [,] the Texas Department of Health and facilities
15-16 and institutions under its jurisdiction;
15-17 (8) [,] the Texas Youth Commission and facilities and
15-18 institutions under its jurisdiction;[,] and
15-19 (9) the governing boards of Centers for Community
15-20 Mental Health and Mental Retardation Services, county hospitals,
15-21 city hospitals, city-county hospitals, hospital authorities,
15-22 hospital districts, affiliated state agencies, and each of their
15-23 political subdivisions.
15-24 (b) An entity described by Subsection (a) of this section
15-25 [of each of them,] may enter into agreements with the entity's
15-26 [their] employees for the purchase of annuities or for
16-1 contributions to any type of investment for the entity's [their]
16-2 employees as authorized in Section 403(b), [of the] Internal
16-3 Revenue Code of 1986 [1954], and its subsequent amendments [as it
16-4 existed on January 1, 1981].
16-5 SECTION 22. Section 2, Chapter 22, Acts of the 57th
16-6 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
16-7 Texas Civil Statutes), is amended to read as follows:
16-8 Sec. 2. (a) If an employee of an [a governmental] entity
16-9 covered by Section 1 of this Act is paid by the Comptroller of
16-10 Public Accounts, the comptroller may take the action, in regard to
16-11 that employee, that is authorized by Subsection (b) of this
16-12 section. If an employee of an [a governmental] entity covered by
16-13 Section 1 is not paid by the comptroller, the governing board of
16-14 the [governmental] entity may take the action in regard to that
16-15 employee.
16-16 (b) The comptroller or the governing board, as appropriate
16-17 [the case may be], may:
16-18 (1) reduce the salary of participants when authorized
16-19 by the participants and shall apply the amount of the reduction to
16-20 the purchase of annuity contracts or to contributions to any type
16-21 of investment authorized in Section 403(b), [of the] Internal
16-22 Revenue Code of 1986 [1954], and its subsequent amendments [as it
16-23 existed on January 1, 1981], the exclusive control of which will
16-24 vest in the participants; and
16-25 (2) develop a system to allow or require participants
16-26 to electronically authorize:
17-1 (A) participation under this Act;
17-2 (B) purchases of annuity contracts; and
17-3 (C) contributions to investments.
17-4 [(c) The employee is entitled to designate any agent,
17-5 broker, or company through which the annuity or investment is to be
17-6 purchased.]
17-7 SECTION 23. Chapter 22, Acts of the 57th Legislature, 3rd
17-8 Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
17-9 Statutes), is amended by adding Sections 4, 5, 6, 7, 8, 9, 10, 11,
17-10 and 12 to read as follows:
17-11 Sec. 4. In this section and in Sections 5, 6, 7, 8, 9, 10,
17-12 and 11 of this Act:
17-13 (1) "Board of trustees" means the board of trustees of
17-14 the Teacher Retirement System of Texas.
17-15 (2) "Educational institution" means a school district
17-16 or an open-enrollment charter school.
17-17 (3) "Eligible qualified investment" means a qualified
17-18 investment product offered by a company that:
17-19 (A) is certified to the board of trustees under
17-20 Section 5 of this Act; or
17-21 (B) is eligible to certify to the board of
17-22 trustees under Section 8 of this Act.
17-23 (4) "Employee" means an employee of an educational
17-24 institution.
17-25 (5) "Qualified investment product" means an annuity or
17-26 investment that:
18-1 (A) meets the requirements of Section 403(b),
18-2 Internal Revenue Code of 1986, and its subsequent amendments;
18-3 (B) complies with applicable federal insurance
18-4 and securities laws and regulations; and
18-5 (C) complies with applicable state insurance and
18-6 securities laws and rules.
18-7 (6) "Retirement system" means the Teacher Retirement
18-8 System of Texas.
18-9 (7) "Salary reduction agreement" means an agreement
18-10 between an educational institution and an employee to reduce the
18-11 employee's salary for the purpose of making direct contributions to
18-12 or purchases of a qualified investment product.
18-13 Sec. 5. (a) An educational institution may enter into a
18-14 salary reduction agreement with an employee of the institution only
18-15 if the qualified investment product is an eligible qualified
18-16 investment.
18-17 (b) A company may certify to the retirement system that the
18-18 company offers a qualified investment product that is an annuity
18-19 contract under this section if the company:
18-20 (1) is authorized to issue annuity contracts in this
18-21 state at the time the application is filed;
18-22 (2) does not assess fees, costs, or penalties on an
18-23 annuity contract that exceed the maximum amounts established by
18-24 rules adopted by the retirement system; and
18-25 (3) complies with the standards adopted under Section
18-26 6 of this Act.
19-1 (c) A company that certifies under this section shall notify
19-2 the retirement system if, at any time, the company is not in
19-3 compliance with Subsection (b) of this section or if an investment
19-4 product that the company offers under this Act is the subject of a
19-5 salary reduction agreement and the investment product is not a
19-6 qualified investment product.
19-7 (d) The retirement system shall establish and maintain a
19-8 list of companies that have certified under this section. The list
19-9 must be available on the retirement system's Internet website.
19-10 (e) An employee is entitled to designate any agent, broker,
19-11 or company through which a qualified investment product may be
19-12 purchased or contributions may be made.
19-13 (f) To the greatest degree possible, employers of employees
19-14 who participate in the program offered under this section shall
19-15 require that contributions to eligible qualified investments be
19-16 made by automatic payroll deduction and deposited directly in the
19-17 investment accounts.
19-18 Sec. 6. (a) A company is eligible to certify to the
19-19 retirement system under Section 5 of this Act if the company
19-20 satisfies the following financial strength criteria:
19-21 (1) the company's actuarial opinions required under
19-22 Articles 1.11 and 3.28, Insurance Code, have not been adverse or
19-23 qualified in the five years preceding the date the application is
19-24 filed;
19-25 (2) the company is subject to the annual audit
19-26 requirements of Article 1.15A, Insurance Code, and its most recent
20-1 audit of financial strength conducted by an independent certified
20-2 public accountant is timely filed and does not indicate the
20-3 existence of any material adverse financial conditions in the
20-4 company for the five years preceding the filing deadline for the
20-5 audit;
20-6 (3) the company has not been the subject of an
20-7 administrative or regulatory action by the Texas Department of
20-8 Insurance under Article 1.32 or 21.28-A or Section 83.051,
20-9 Insurance Code, in the five years preceding the date the
20-10 application is filed;
20-11 (4) the company has maintained during the five years
20-12 preceding the date the application is filed an average of at least
20-13 400 percent of the authorized control level, as calculated in
20-14 accordance with the risk-based capital and surplus requirements
20-15 established in rules adopted by the Texas Department of Insurance;
20-16 (5) the company has not fallen below 300 percent of
20-17 the authorized control level, as calculated in accordance with the
20-18 risk-based capital and surplus established in rules adopted by the
20-19 Texas Department of Insurance, at any time in the five years
20-20 preceding the date the application is filed; and
20-21 (6) the company has at least five years' experience in
20-22 qualified investment products and has a specialized department
20-23 dedicated to the service of qualified investment products.
20-24 (b) For purposes of Subsection (a)(4) of this section, the
20-25 company must calculate the five-year average on the same date each
20-26 year.
21-1 (c) After consultation with the Texas Department of
21-2 Insurance and the State Securities Board, the retirement system may
21-3 adopt rules only to administer this section and Sections 5, 7, 8,
21-4 and 11 of this Act.
21-5 (d) The retirement system shall refer all complaints about
21-6 qualified investment products to the appropriate division of the
21-7 Texas Department of Insurance or the State Securities Board.
21-8 (e) The Texas Department of Insurance and the State
21-9 Securities Board shall cooperate with the retirement system in the
21-10 administration of this Act and shall notify the retirement system
21-11 of any action or determination regarding a product or a company
21-12 that violates Section 5 of this Act.
21-13 (f) The retirement system shall reject or revoke the
21-14 certification of a company if the retirement system receives notice
21-15 under Subsection (e) of this section or Section 5(c) of this Act of
21-16 a violation regarding the company or the company's product. The
21-17 company may recertify to the board of trustees.
21-18 (g) The retirement system shall prescribe the uniform notice
21-19 required by Section 11 of this Act.
21-20 (h) A certification or recertification remains in effect for
21-21 five years unless rejected or revoked.
21-22 (i) A company offering eligible qualified investments that
21-23 are subject to salary reduction agreements must provide toll-free
21-24 telephone transferring privileges each business day from 8 a.m. to
21-25 6 p.m. central standard time.
21-26 Sec. 7. (a) The retirement system may collect a fee, not to
22-1 exceed the administrative cost to the retirement system, from a
22-2 company that certifies or recertifies under Section 6 or 8 of this
22-3 Act. The fee for certification or recertification may not exceed
22-4 $5,000.
22-5 (b) Fees collected under this section shall be deposited to
22-6 the credit of the 403(b) administrative trust fund. The 403(b)
22-7 administrative trust fund is created as a trust fund with the
22-8 comptroller and shall be administered by the retirement system as a
22-9 trustee on behalf of the participants in qualified investment
22-10 products offered under this Act.
22-11 Sec. 8. (a) A company that offers qualified investment
22-12 products other than annuity contracts may certify to the retirement
22-13 system based on rules adopted by the board of trustees. The rules
22-14 shall be based on reasonable factors, including:
22-15 (1) the financial strength of the companies offering
22-16 products; and
22-17 (2) the administrative cost to employees.
22-18 (b) The retirement system shall establish and maintain a
22-19 list of companies that provide certification under this section.
22-20 The list must be available on the retirement system's Internet
22-21 website.
22-22 Sec. 9. An educational institution may not:
22-23 (1) refuse to enter into a salary reduction agreement
22-24 with an employee if the qualified investment product that is the
22-25 subject of the salary reduction is an eligible qualified
22-26 investment;
23-1 (2) require or coerce an employee's attendance at any
23-2 meeting at which qualified investment products are marketed;
23-3 (3) limit the ability of an employee to initiate,
23-4 change, or terminate a qualified investment product at any time the
23-5 employee chooses;
23-6 (4) grant exclusive access to an employee by
23-7 discriminating against or imposing barriers to any agent, broker,
23-8 or company that provides qualified investment products under this
23-9 Act;
23-10 (5) grant exclusive access to information about an
23-11 employee's financial information, including information about an
23-12 employee's qualified investment products, to a company or agent
23-13 offering qualified investment products unless the employee consents
23-14 in writing to the access;
23-15 (6) accept any benefit from a company or from an agent
23-16 or affiliate of a company that offers qualified investment
23-17 products; or
23-18 (7) use public funds to recommend a qualified
23-19 investment product offered by a company or an agent of a company
23-20 that offers a qualified investment product.
23-21 Sec. 10. (a) A person commits an offense if the person:
23-22 (1) sells or offers for sale a qualified investment
23-23 product that is not an eligible qualified investment and that the
23-24 person knows will be the subject of a salary reduction agreement;
23-25 (2) violates the licensing requirements of Subchapter
23-26 A, Chapter 21, Insurance Code, with regard to a qualified
24-1 investment product that the person knows will be the subject of a
24-2 salary reduction agreement; or
24-3 (3) engages in activity described by Section 4,
24-4 Article 21.21, Insurance Code, with regard to a qualified
24-5 investment product that the person knows will be the subject of a
24-6 salary reduction agreement.
24-7 (b) An offense under this section is a Class A misdemeanor.
24-8 (c) If conduct that constitutes an offense under this
24-9 section also constitutes a criminal offense under the Insurance
24-10 Code, the actor may be prosecuted under this section or under the
24-11 Insurance Code, but not under both this section and the Insurance
24-12 Code.
24-13 Sec. 11. (a) A person who offers to sell an annuity
24-14 contract that is or will likely be the subject of a salary
24-15 reduction agreement shall provide notice to a potential purchaser
24-16 as provided by this section.
24-17 (b) The retirement system shall make the notice available on
24-18 request and post the form of the notice on the retirement system's
24-19 Internet website.
24-20 (c) The notice required under this section must be uniform
24-21 and:
24-22 (1) be in at least 14-point type;
24-23 (2) contain spaces for:
24-24 (A) the name, address, and telephone number of
24-25 the agent and company offering the annuity contract for sale;
24-26 (B) the name, address, and telephone number of
25-1 the company underwriting the annuity;
25-2 (C) the license number of the person offering to
25-3 sell the product;
25-4 (D) the name of the state agency that issued the
25-5 person's license;
25-6 (E) the name of the company account
25-7 representative who has the authority to respond to inquiries or
25-8 complaints; and
25-9 (F) with respect to fixed annuity products:
25-10 (i) the current interest rate or the
25-11 formula used to calculate the current rate of interest;
25-12 (ii) the guaranteed rate of interest and
25-13 the percentage of the premium to which the interest rate applies;
25-14 (iii) how interest is compounded;
25-15 (iv) the amount of any up-front,
25-16 surrender, withdrawal, deferred sales, and market value adjustment
25-17 charges or any other contract restriction that exceeds 10 years;
25-18 (v) the time, if any, the annuity is
25-19 required to be in force before the purchaser is entitled to the
25-20 full bonus accumulation value;
25-21 (vi) the manner in which the amount of the
25-22 guaranteed benefit under the annuity is computed;
25-23 (vii) whether loans are guaranteed to be
25-24 available under the annuity;
25-25 (viii) what restrictions, if any, apply to
25-26 the availability of money attributable to the value of the annuity
26-1 once the purchaser is retired or separated from the employment of
26-2 the employer;
26-3 (ix) the amount of any other fees, costs,
26-4 or penalties;
26-5 (x) whether the annuity guarantees the
26-6 participant the right to surrender a percentage of the surrender
26-7 value each year, and the percentage, if any; and
26-8 (xi) whether the annuity guarantees the
26-9 interest rate associated with any settlement option; and
26-10 (3) state, in plain language:
26-11 (A) that the company offering the annuity must
26-12 comply with Section 5 of this Act;
26-13 (B) that the potential purchaser may contact the
26-14 retirement system or access its Internet website to determine which
26-15 companies are in compliance with Section 5 of this Act;
26-16 (C) the civil remedies available to the
26-17 employee;
26-18 (D) that the employee may purchase any eligible
26-19 qualified investment through a salary reduction agreement;
26-20 (E) the name and telephone number of the Texas
26-21 Department of Insurance division that specializes in consumer
26-22 protection; and
26-23 (F) the name and telephone number of the
26-24 attorney general's division that specializes in consumer
26-25 protection.
26-26 (d) A variable annuity must be accompanied by:
27-1 (1) a notice that includes any item listed in
27-2 Subsection (c) of this section that is applicable to variable
27-3 annuities;
27-4 (2) the prospectus; and
27-5 (3) any other purchasing information required by law.
27-6 (e) An equity-based index contract must state in plain
27-7 language how the annuity contract will be credited with growth.
27-8 (f) If a notice and other information required under this
27-9 section is not provided, any annuity contract for which the notice
27-10 is required is voidable at the discretion of the purchaser. Not
27-11 later than the 30th day after the date an employee notifies the
27-12 seller in writing of the employee's election to void the contract,
27-13 the seller shall refund to the employee:
27-14 (1) the amount of all consideration paid to the
27-15 purchaser; and
27-16 (2) 10 percent interest up to the date the employee
27-17 provides the notice to the seller.
27-18 (g) A seller who receives a refund request under this
27-19 section is not required to make a refund otherwise required by this
27-20 section if, not later than the 30th day after the date the seller
27-21 receives a request for a refund from the employee, the seller
27-22 provides a copy of the notice signed by the employee.
27-23 Sec. 12. A company that offers an eligible qualified
27-24 investment that is subject to a salary reduction agreement shall
27-25 demonstrate annually to the retirement system that each of its
27-26 representatives are properly licensed and qualified, by training
28-1 and continuing education, to sell and service the company's
28-2 eligible qualified investments.
28-3 SECTION 24. Subsection (h), Section 16, Article 3.50-4,
28-4 Insurance Code, is amended to read as follows:
28-5 (h) An employing district that fails to remit, before the
28-6 seventh [11th] day after the last day of the month, all member
28-7 deposits required by this section to be remitted by the district
28-8 for the month shall pay to the Texas public school retired
28-9 employees group insurance fund, in addition to the deposits,
28-10 interest on the unpaid amounts at the annual rate of six percent
28-11 compounded monthly. On request, the trustee may grant a waiver of
28-12 the deadline imposed by this subsection based on a district's
28-13 financial or technological resources.
28-14 SECTION 25. Article 3.50-4A, Insurance Code, as added by
28-15 Chapter 372, Acts of the 76th Legislature, Regular Session, 1999,
28-16 is amended by adding Subsection (f) to read as follows:
28-17 (f) A premium or contribution on a policy, insurance
28-18 contract, or agreement authorized as provided by this article is
28-19 not subject to any state tax, regulatory fee, or surcharge,
28-20 including a premium or maintenance tax or fee.
28-21 SECTION 26. Article 3.50-4A, Insurance Code, as added by
28-22 Chapter 1540, Acts of the 76th Legislature, Regular Session, 1999,
28-23 is amended by adding Section 6 to read as follows:
28-24 Sec. 6. EXEMPTION FROM STATE TAXES AND FEES. A premium or
28-25 contribution on a policy, insurance contract, or agreement
28-26 authorized as provided by this article is not subject to any state
29-1 tax, regulatory fee, or surcharge, including a premium or
29-2 maintenance tax or fee.
29-3 SECTION 27. Subsection (b), Section 17.46, Business &
29-4 Commerce Code, is amended to read as follows:
29-5 (b) Except as provided in Subsection (d) of this section,
29-6 the term "false, misleading, or deceptive acts or practices"
29-7 includes, but is not limited to, the following acts:
29-8 (1) passing off goods or services as those of another;
29-9 (2) causing confusion or misunderstanding as to the
29-10 source, sponsorship, approval, or certification of goods or
29-11 services;
29-12 (3) causing confusion or misunderstanding as to
29-13 affiliation, connection, or association with, or certification by,
29-14 another;
29-15 (4) using deceptive representations or designations of
29-16 geographic origin in connection with goods or services;
29-17 (5) representing that goods or services have
29-18 sponsorship, approval, characteristics, ingredients, uses,
29-19 benefits, or quantities which they do not have or that a person has
29-20 a sponsorship, approval, status, affiliation, or connection which
29-21 he does not;
29-22 (6) representing that goods are original or new if
29-23 they are deteriorated, reconditioned, reclaimed, used, or
29-24 secondhand;
29-25 (7) representing that goods or services are of a
29-26 particular standard, quality, or grade, or that goods are of a
30-1 particular style or model, if they are of another;
30-2 (8) disparaging the goods, services, or business of
30-3 another by false or misleading representation of facts;
30-4 (9) advertising goods or services with intent not to
30-5 sell them as advertised;
30-6 (10) advertising goods or services with intent not to
30-7 supply a reasonable expectable public demand, unless the
30-8 advertisements disclosed a limitation of quantity;
30-9 (11) making false or misleading statements of fact
30-10 concerning the reasons for, existence of, or amount of price
30-11 reductions;
30-12 (12) representing that an agreement confers or
30-13 involves rights, remedies, or obligations which it does not have or
30-14 involve, or which are prohibited by law;
30-15 (13) knowingly making false or misleading statements
30-16 of fact concerning the need for parts, replacement, or repair
30-17 service;
30-18 (14) misrepresenting the authority of a salesman,
30-19 representative or agent to negotiate the final terms of a consumer
30-20 transaction;
30-21 (15) basing a charge for the repair of any item in
30-22 whole or in part on a guaranty or warranty instead of on the value
30-23 of the actual repairs made or work to be performed on the item
30-24 without stating separately the charges for the work and the charge
30-25 for the warranty or guaranty, if any;
30-26 (16) disconnecting, turning back, or resetting the
31-1 odometer of any motor vehicle so as to reduce the number of miles
31-2 indicated on the odometer gauge;
31-3 (17) advertising of any sale by fraudulently
31-4 representing that a person is going out of business;
31-5 (18) using or employing a chain referral sales plan in
31-6 connection with the sale or offer to sell of goods, merchandise, or
31-7 anything of value, which uses the sales technique, plan,
31-8 arrangement, or agreement in which the buyer or prospective buyer
31-9 is offered the opportunity to purchase merchandise or goods and in
31-10 connection with the purchase receives the seller's promise or
31-11 representation that the buyer shall have the right to receive
31-12 compensation or consideration in any form for furnishing to the
31-13 seller the names of other prospective buyers if receipt of the
31-14 compensation or consideration is contingent upon the occurrence of
31-15 an event subsequent to the time the buyer purchases the merchandise
31-16 or goods;
31-17 (19) representing that a guarantee or warranty confers
31-18 or involves rights or remedies which it does not have or involve,
31-19 provided, however, that nothing in this subchapter shall be
31-20 construed to expand the implied warranty of merchantability as
31-21 defined in Sections 2.314 through 2.318 and Sections 2A.212 through
31-22 2A.216 of the Business & Commerce Code to involve obligations in
31-23 excess of those which are appropriate to the goods;
31-24 (20) promoting a pyramid promotional scheme, as
31-25 defined by Section 17.461;
31-26 (21) representing that work or services have been
32-1 performed on, or parts replaced in, goods when the work or services
32-2 were not performed or the parts replaced;
32-3 (22) filing suit founded upon a written contractual
32-4 obligation of and signed by the defendant to pay money arising out
32-5 of or based on a consumer transaction for goods, services, loans,
32-6 or extensions of credit intended primarily for personal, family,
32-7 household, or agricultural use in any county other than in the
32-8 county in which the defendant resides at the time of the
32-9 commencement of the action or in the county in which the defendant
32-10 in fact signed the contract; provided, however, that a violation of
32-11 this subsection shall not occur where it is shown by the person
32-12 filing such suit he neither knew or had reason to know that the
32-13 county in which such suit was filed was neither the county in which
32-14 the defendant resides at the commencement of the suit nor the
32-15 county in which the defendant in fact signed the contract;
32-16 (23) the failure to disclose information concerning
32-17 goods or services which was known at the time of the transaction if
32-18 such failure to disclose such information was intended to induce
32-19 the consumer into a transaction into which the consumer would not
32-20 have entered had the information been disclosed;
32-21 (24) using the term "corporation," "incorporated," or
32-22 an abbreviation of either of those terms in the name of a business
32-23 entity that is not incorporated under the laws of this state or
32-24 another jurisdiction; [or]
32-25 (25) taking advantage of a disaster declared by the
32-26 governor under Chapter 418, Government Code, by:
33-1 (A) selling or leasing fuel, food, medicine, or
33-2 another necessity at an exorbitant or excessive price; or
33-3 (B) demanding an exorbitant or excessive price
33-4 in connection with the sale or lease of fuel, food, medicine, or
33-5 another necessity; or
33-6 (26) selling, offering to sell, or illegally promoting
33-7 an annuity contract under Chapter 22, Acts of the 57th Legislature,
33-8 3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
33-9 Statutes), with the intent that the annuity contract will be the
33-10 subject of a salary reduction agreement, as defined by that Act, if
33-11 the annuity contract is not an eligible qualified investment under
33-12 that Act.
33-13 SECTION 28. Section 17.49, Business & Commerce Code, is
33-14 amended by amending Subsection (c) and adding Subsection (h) to
33-15 read as follows:
33-16 (c) Nothing in this subchapter shall apply to a claim for
33-17 damages based on the rendering of a professional service, the
33-18 essence of which is the providing of advice, judgment, opinion, or
33-19 similar professional skill. This exemption does not apply to:
33-20 (1) an express misrepresentation of a material fact
33-21 that cannot be characterized as advice, judgment, or opinion;
33-22 (2) a failure to disclose information in violation of
33-23 Section 17.46(b)(23);
33-24 (3) an unconscionable action or course of action that
33-25 cannot be characterized as advice, judgment, or opinion; [or]
33-26 (4) breach of an express warranty that cannot be
34-1 characterized as advice, judgment, or opinion; or
34-2 (5) a violation of Section 17.46(b)(26).
34-3 (h) A person who violates Section 17.46(b)(26) is jointly
34-4 and severally liable under that subdivision for actual damages,
34-5 court costs, and attorney's fees. Subject to Chapter 41, Civil
34-6 Practice and Remedies Code, exemplary damages may be awarded in the
34-7 event of fraud or malice.
34-8 SECTION 29. The following sections of the Government Code
34-9 are repealed:
34-10 (1) Subchapter B, Chapter 823;
34-11 (2) Section 823.202;
34-12 (3) Section 823.502;
34-13 (4) Subsection (e), Section 824.203; and
34-14 (5) Section 824.306.
34-15 SECTION 30. (a) Monthly payments of a death or retirement
34-16 benefit annuity by the Teacher Retirement System of Texas are
34-17 increased in accordance with this section beginning with the
34-18 payment due at the end of September 2001.
34-19 (b) The increase does not apply to payments under Subsection
34-20 (a), Section 824.304, Section 824.404, or Section 824.501,
34-21 Government Code.
34-22 (c) For the purpose of computing the monthly payments of
34-23 annuities for retirees who retired on or before August 31, 2000,
34-24 the amount of the monthly payment is equal to the amount of the
34-25 last monthly payment made before the effective date of this Act
34-26 multiplied by 1.06.
35-1 (d) After making the computations required by Subsection (c)
35-2 of this section, the Teacher Retirement System of Texas shall
35-3 increase each annuity payable by the system beginning on September
35-4 1, 2001, other than an annuity under Subsection (a), Section
35-5 824.304, Section 824.404, or Section 824.501, Government Code, by
35-6 4.5 percent, which is a benefit equivalent to the benefit provided
35-7 by using a 2.3-percent multiplier for computing annuities.
35-8 SECTION 31. (a) The changes in law made to Chapter 22, Acts
35-9 of the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
35-10 Vernon's Texas Civil Statutes), by this Act do not apply to a
35-11 contract between an employee of a school district or
35-12 open-enrollment charter school and a company offering investments
35-13 or annuities that was entered into or is entered into under Chapter
35-14 22, Acts of the 57th Legislature, 3rd Called Session, 1962 (Article
35-15 6228a-5, Vernon's Texas Civil Statutes), before June 1, 2002.
35-16 (b) A contract described by Subsection (a) of this section
35-17 is governed by the law in effect immediately before the effective
35-18 date of this Act, and the former law is continued in effect for
35-19 that purpose.
35-20 SECTION 32. The Teacher Retirement System of Texas shall
35-21 adopt rules required by Section 6, Chapter 22, Acts of the 57th
35-22 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
35-23 Texas Civil Statutes), and prescribe the notice required by
35-24 Subsection (g), Section 6, Chapter 22, Acts of the 57th
35-25 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
35-26 Texas Civil Statutes), not later than January 1, 2002.
36-1 SECTION 33. (a) A member of the Teacher Retirement System
36-2 of Texas who was an employee of a public institution of higher
36-3 education between March 31, 1969, and August 31, 1977, and, as a
36-4 condition of that employment, was required to be enrolled as a
36-5 student in the institution, may establish service credit for
36-6 employment by the institution during that period if:
36-7 (1) the member made deposits to establish that service
36-8 credit before September 1, 1978, and those deposits were
36-9 subsequently withdrawn; and
36-10 (2) the member deposits, not later than September 1,
36-11 2002, with the Teacher Retirement System of Texas an amount
36-12 computed under Section 823.501, Government Code.
36-13 (b) Section 825.410, Government Code, applies to the payment
36-14 of deposits under Subsection (a) of this section, but all payments
36-15 must be completed not later than September 1, 2002.
36-16 (c) Notwithstanding Subsection (e), Section 805.002,
36-17 Government Code, service credit that is or was canceled by a
36-18 termination of membership in the Teacher Retirement System of Texas
36-19 may be reinstated by a member of the Employees Retirement System of
36-20 Texas if the person reinstating the service purchases the service
36-21 under Chapter 805, Government Code, not later than September 1,
36-22 2002.
36-23 (d) A member of the Employees Retirement System of Texas who
36-24 has at least 20 years of service credit in that system and who was
36-25 an employee of a public institution of higher education between
36-26 September 1, 1969, and May 31, 1972, may establish not more than
37-1 three years of service credit for employment by the institution
37-2 during that period if:
37-3 (1) the person's part-time employment by the
37-4 institution averaged at least 20 hours a week for any 20 weeks
37-5 during each school year for which service credit may be established
37-6 under this subsection;
37-7 (2) the person was not participating in the program
37-8 provided by Chapter 830, Government Code, during that period, and
37-9 the service is not credited in any other public retirement system
37-10 provided by this or another state or a political subdivision of a
37-11 state;
37-12 (3) the employment was not in a position that required
37-13 the person to be enrolled as a student; and
37-14 (4) the person deposits, not later than September 1,
37-15 2002, with the Teacher Retirement System of Texas the amount
37-16 required by the retirement system on May 1, 2001, to establish
37-17 credit for unreported service.
37-18 (e) Service credit established under Subsection (d) of this
37-19 section must be computed under 26 U.S.C. Section 415(n)(1)(A),
37-20 Internal Revenue Code of 1986, and its subsequent amendments, and
37-21 is not subject to Section 823.006, Government Code.
37-22 SECTION 34. (a) Except as otherwise provided by this
37-23 section, this Act takes effect September 1, 2001.
37-24 (b) The changes in law made by this Act to the following
37-25 laws take effect June 1, 2002:
37-26 (1) Sections 9, 10, 11, and 12, Chapter 22, Acts of
38-1 the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
38-2 Vernon's Texas Civil Statutes);
38-3 (2) Section 17.46, Business & Commerce Code; and
38-4 (3) Section 17.49, Business & Commerce Code.
38-5 (c) The changes in law made by this Act to the following
38-6 laws take effect September 1, 2002:
38-7 (1) Subsection (a), Section 825.408, Government Code;
38-8 and
38-9 (2) Subsection (h), Section 16, Article 3.50-4,
38-10 Insurance Code.
38-11 (d) The changes in law made by this Act to Section 824.602,
38-12 Government Code, apply beginning with the 2001-2002 school year.
38-13 Section 824.602, Government Code, as amended by this Act, takes
38-14 effect immediately if this Act receives a vote of two-thirds of all
38-15 the members elected to each house, as provided by Section 39,
38-16 Article III, Texas Constitution. If this Act does not receive the
38-17 vote necessary for immediate effect, Section 824.602, Government
38-18 Code, as amended by this Act, takes effect September 1, 2001.
S.B. No. 273
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 273 passed the Senate on
May 3, 2001, by a viva-voce vote; May 24, 2001, Senate refused to
concur in House amendments and requested appointment of Conference
Committee; May 25, 2001, House granted request of the Senate;
May 27, 2001, Senate adopted Conference Committee Report by the
following vote: Yeas 29, Nays 1, one present not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 273 passed the House, with
amendments, on May 23, 2001, by the following vote: Yeas 140,
Nays 0, one present not voting; May 25, 2001, House granted request
of the Senate for appointment of Conference Committee;
May 27, 2001, House adopted Conference Committee Report by the
following vote: Yeas 145, Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor