By Armbrister                                          S.B. No. 292
         77R3522 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to programs and systems administered by the Employees
 1-3     Retirement System of Texas.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 813.509, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 813.509.  CREDIT FOR ACCUMULATED SICK LEAVE. (a)  A
 1-8     member who holds a position included in the employee class of
 1-9     membership during the month that includes the effective date of the
1-10     member's retirement and who retires based on service or a
1-11     disability is entitled to service credit in the retirement system
1-12     for the member's sick leave that has accumulated and is unused on
1-13     the last day of employment.
1-14           (b)  A death benefit designee under Section 814.301 or
1-15     814.302 of a member who holds a position included in the employee
1-16     class of membership during the month that includes the member's
1-17     date of death is entitled to service credit in the retirement
1-18     system for the member's sick leave that has accumulated and is
1-19     unused on the member's date of death.
1-20           (c)  Sick leave is creditable in the retirement system at the
1-21     rate of one month of service credit for each 20 days, or 160 hours,
1-22     of accumulated sick leave and one month for each fraction of days
1-23     or hours remaining after division of the total hours of accumulated
1-24     sick leave by 160.
 2-1           (d) [(b)]  A member who holds a position included in the
 2-2     employee class may use sick leave creditable under this section to
 2-3     satisfy service requirements for:
 2-4                 (1)  retirement under Section 814.104 or 814.107 if the
 2-5     sick leave attributed to the eligibility requirements remains
 2-6     otherwise unused on the last day of employment;
 2-7                 (2)  the selection of a death benefit plan under
 2-8     Section 814.301; and
 2-9                 (3)  the payment of a death benefit plan under Section
2-10     814.301 or 814.302 if the member satisfies the eligibility
2-11     requirements for the selection of a death benefit plan on the date
2-12     of the member's death.
2-13           (e) [(c)]  Except as provided by Subsection (f) [(d)], the
2-14     disbursing officer of each department or agency shall, before the
2-15     11th day after the effective date of retirement or date of death of
2-16     one or more employees of the department or agency, certify to the
2-17     retirement system:
2-18                 (1)  the name of each person:
2-19                       (A)  whose retirement from the department or
2-20     agency, and from state service, became effective during the
2-21     preceding month; and
2-22                       (B)  who died during the preceding month; and
2-23                 (2)  the amount of the person's accumulated sick leave
2-24     on the last day of employment or date of death.
2-25           (f) [(d)]  The disbursing officer of a department or agency
2-26     that employs a member who applies for retirement or selects a death
2-27     benefit plan under Subsection (d) [(b)] shall, not more than 90 or
 3-1     less than 30 days before the effective date of the member's
 3-2     retirement or death benefit selection, certify to the retirement
 3-3     system the amount of the member's accumulated and unused sick
 3-4     leave.  The officer shall immediately notify the retirement system
 3-5     if a [the] member who applied for retirement uses sick leave after
 3-6     the date of certification.
 3-7           (g) [(e)]  On receipt of a certification under Subsection (e)
 3-8     [(c)] or (f) [(d)], the retirement system shall grant any credit to
 3-9     which a retiring member or retiree who is a subject of the
3-10     certification is entitled.  An increase in the computation of an
3-11     annuity because of credit provided by this section after a
3-12     certification under Subsection (e) [(c)] begins with the first
3-13     payment that becomes due after certification.
3-14           (h) [(f)]  The retirement system shall cancel the retirement
3-15     of a person who used sick leave creditable under this section to
3-16     qualify for service retirement if the sick leave is otherwise used
3-17     by the person before the effective date of retirement.
3-18           (i) [(g)]  In this section, "sick leave" does not include
3-19     credit granted under an agency sick-leave pool or under the Family
3-20     and Medical Leave Act of 1993 (Pub. L. 103-3).
3-21           SECTION 2. Section 813.511, Government Code, as added by
3-22     Chapter 1541, Acts of the 76th Legislature, Regular Session, 1999,
3-23     is amended to read as follows:
3-24           Sec. 813.511.  CREDIT FOR ACCUMULATED ANNUAL LEAVE. (a)  A
3-25     member who holds a position included in the employee class of
3-26     membership during the month that includes the effective date of the
3-27     member's retirement and who retires based on service or a
 4-1     disability is entitled to service credit in the retirement system
 4-2     for the member's annual leave that has accumulated and is unused on
 4-3     the last day of employment.
 4-4           (b)  A death benefit designee under Section 814.301 or
 4-5     814.302 of a member who holds a position included in the employee
 4-6     class of membership during the month that includes the member's
 4-7     date of death is entitled to service credit in the retirement
 4-8     system for the member's annual leave that has accumulated and is
 4-9     unused on the member's date of death.
4-10           (c)  Annual leave is creditable in the retirement system at
4-11     the rate of one month of service credit for each 20 days, or 160
4-12     hours, of accumulated annual leave and one month for each fraction
4-13     of days or hours remaining after division of the total hours of
4-14     accumulated annual leave by 160.
4-15           (d) [(b)]  A member who holds a position included in the
4-16     employee class may use annual leave creditable under this section
4-17     to satisfy service requirements for:
4-18                 (1)  retirement under Section 814.104 or 814.107 if the
4-19     annual leave attributed to the eligibility requirements remains
4-20     otherwise unused on the last day of employment;
4-21                 (2)  the selection of a death benefit plan under
4-22     Section 814.301; and
4-23                 (3)  the payment of a death benefit plan under Section
4-24     814.301 or 814.302 if the member satisfies the eligibility
4-25     requirements for the selection of a death benefit plan on the date
4-26     of the member's death.
4-27           (e) [(c)]  Except as provided by Subsection (f) [(d)], the
 5-1     disbursing officer of each department or agency shall, before the
 5-2     11th day after the effective date of retirement or date of death of
 5-3     one or more employees of the department or agency, certify to the
 5-4     retirement system:
 5-5                 (1)  the name of each person:
 5-6                       (A)  whose retirement from the department or
 5-7     agency, and from state service, became effective during the
 5-8     preceding month; and
 5-9                       (B)  who died during the preceding month; and
5-10                 (2)  the amount of the person's accumulated annual
5-11     leave on the last day of employment or date of death.
5-12           (f) [(d)]  The disbursing officer of a department or agency
5-13     that employs a member who applies for retirement or selects a death
5-14     benefit plan under Subsection (d) [(b)] shall, not more than 90 or
5-15     less than 30 days before the effective date of the member's
5-16     retirement or death benefit selection, certify to the retirement
5-17     system the amount of the member's accumulated and unused annual
5-18     leave.  The officer shall immediately notify the retirement system
5-19     if a [the] member who applied for retirement uses annual leave
5-20     after the date of certification.
5-21           (g) [(e)]  On receipt of a certification under Subsection (e)
5-22     [(c)] or (f) [(d)], the retirement system shall grant any credit to
5-23     which a retiring member or retiree who is a subject of the
5-24     certification is entitled.  An increase in the computation of an
5-25     annuity because of credit provided by this section after a
5-26     certification under Subsection (e) [(d)] begins with the first
5-27     payment that becomes due after certification.
 6-1           (h) [(f)]  The retirement system shall cancel the retirement
 6-2     of a person who used annual leave creditable under this section to
 6-3     qualify for service retirement if the annual leave is otherwise
 6-4     used by the person before the effective date of retirement.
 6-5           SECTION 3. Section 814.202, Government Code, is amended by
 6-6     adding Subsection (e) to read as follows:
 6-7           (e)  A member otherwise eligible may not receive a
 6-8     nonoccupational disability annuity if the member is eligible for a
 6-9     service retirement annuity under Section 814.102 or 814.104.
6-10           SECTION 4. Section 814.207, Government Code, is amended by
6-11     adding Subsection (f) to read as follows:
6-12           (f)  An annuity increase under Subsection (e) is not payable
6-13     before the first month following the month in which the
6-14     satisfactory evidence is received by the retirement system under
6-15     Subsection (e).
6-16           SECTION 5. Section 3(a)(8), Texas Employees Uniform Group
6-17     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
6-18     Code), is amended to read as follows:
6-19                 (8)  "Dependent" shall mean the spouse of an employee
6-20     or retired employee and:
6-21                       (A)  an unmarried child under 25 years of age,
6-22     including an adopted child and a stepchild, foster child, or other
6-23     child who is in a regular parent-child relationship;
6-24                       (B)  any such child, regardless of age, who lives
6-25     with or whose care is provided by an employee or annuitant on a
6-26     regular basis if:
6-27                             (i)  such child is mentally retarded or
 7-1     physically incapacitated to such an extent as to be dependent upon
 7-2     the employee or retired employee for care or support, as the
 7-3     trustee shall determine;
 7-4                             (ii)  such child's coverage under this Act
 7-5     has not lapsed; and
 7-6                             (iii)  if such child is 25 years old or
 7-7     older, such child was enrolled as a participant in the health
 7-8     benefits coverage under the uniform program on the date of the
 7-9     child's 25th birthday; and
7-10                       (C)  any such child who is unmarried, regardless
7-11     of age, for purposes of health benefits coverage under this Act, on
7-12     expiration of the child's continuation coverage under the
7-13     Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L.
7-14     99-272).
7-15           SECTION 6. Section 13B, Texas Employees Uniform Group
7-16     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
7-17     Code), is amended by adding Subsection (e) to read as follows:
7-18           (e)  The trustee may adopt rules for the use of a debit card
7-19     or other similar technology for claims administration under this
7-20     section.
7-21           SECTION 7. Subchapter C, Chapter 615, Government Code, is
7-22     amended by adding Section 615.045 to read as follows:
7-23           Sec. 615.045.  RECORDS. (a)  Records of individuals listed by
7-24     Section 615.003 and of survivors eligible for benefits under this
7-25     chapter that are in the custody of the retirement system or a
7-26     carrier, administering firm as defined by the Texas Employees
7-27     Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
 8-1     Texas Insurance Code), or other governmental agency acting with or
 8-2     on behalf of the retirement system are confidential, not subject to
 8-3     public disclosure, and exempt from the public information
 8-4     provisions of Chapter 552, except as otherwise provided by this
 8-5     section.
 8-6           (b)  Records may be released to an eligible survivor or to an
 8-7     authorized attorney, family member, or representative acting on
 8-8     behalf of the eligible survivor.  The retirement system may release
 8-9     the records to an administering firm, carrier, agent, or attorney
8-10     acting on behalf of the retirement system, to another governmental
8-11     entity having a legitimate need for the information to perform the
8-12     purposes of the retirement system, or to a party in response to a
8-13     subpoena issued under applicable law.
8-14           (c)  The records of individuals listed by Section 615.003,
8-15     and of eligible survivors, remain confidential after release to a
8-16     person as authorized by this section.  The records of individuals
8-17     listed by Section 615.003, and of eligible survivors, may become
8-18     part of the public record of an administrative or judicial
8-19     proceeding related to an appeal filed under this chapter, unless
8-20     the records are closed to public access by a protective order
8-21     issued under applicable law.
8-22           SECTION 8. Section 615.074(a), Government Code, is  amended
8-23     to read as follows:
8-24           (a)  An eligible surviving dependent who is a minor child is
8-25     entitled to continue health insurance coverage until the earlier of
8-26     [the dependent]:
8-27                 (1)  the date the dependent reaches the age of 18 [21]
 9-1     years; or
 9-2                 (2)  the date the dependent becomes eligible for group
 9-3     health insurance through another employer.
 9-4           SECTION 9. (a)  This Act takes effect September 1, 2001.
 9-5           (b)  The change in law made by this Act to Section
 9-6     3(a)(8)(B), Texas Employees Uniform Group Insurance Benefits Act
 9-7     (Article 3.50-2, Vernon's Texas Insurance Code), applies only to a
 9-8     dependent who is not covered by the basic coverage of a health
 9-9     benefits plan under Article 3.50-2, Insurance Code, on August 31,
9-10     2001.