1-1 By: Armbrister S.B. No. 292
1-2 (In the Senate - Filed January 18, 2001; January 22, 2001,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 17, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 17, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 292 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to programs and systems administered by the Employees
1-11 Retirement System of Texas.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivisions (12) and (14), Section 811.001,
1-14 Government Code, are amended to read as follows:
1-15 (12) "Occupational death or disability" means death or
1-16 disability from an injury or disease that directly results from a
1-17 specific act or occurrence determinable by a definite time and
1-18 place, and directly results from a [an inherent] risk or a hazard
1-19 peculiar to and inherent in a duty that arises from and in the
1-20 course of state employment.
1-21 (14) "Retiree" means a person who, except as provided
1-22 by Section 812.203 [or 814.209], receives an annuity based on
1-23 service that was credited to the person in a class of membership.
1-24 SECTION 2. Subsection (b), Section 813.201, Government Code,
1-25 is amended to read as follows:
1-26 (b) A member may not[, after August 31, 1997,] accrue or
1-27 establish service credit in the employee class of membership when
1-28 the total amount of service credit, multiplied by the percentage in
1-29 effect for computing annuities under Section 814.103, 814.105, or
1-30 814.107 would exceed the number 100. When the maximum amount of
1-31 service credit is accrued or established by a member in the
1-32 employee or elected class, member and state contributions cease,
1-33 although the member retains membership subject to Section 812.005.
1-34 SECTION 3. Subsection (a), Section 813.504, Government
1-35 Code, is amended to read as follows:
1-36 (a) A person [member of the employee class] may reestablish
1-37 service credit previously canceled in the retirement system if:
1-38 (1) the person is a member of the employee class and
1-39 at least six months have elapsed since the end of the month in
1-40 which the cancellation became effective; or
1-41 (2) the person is:
1-42 (A) a former member of the employee class; and
1-43 (B) a participant in the optional retirement
1-44 program under Chapter 830.
1-45 SECTION 4. Section 813.509, Government Code, is amended to
1-46 read as follows:
1-47 Sec. 813.509. CREDIT FOR ACCUMULATED SICK LEAVE. (a) A
1-48 member is entitled to service credit in the retirement system for
1-49 the member's sick leave that has accumulated and is unused on the
1-50 last day of employment if the member:
1-51 (1) [who] holds a position included in the employee
1-52 class of membership during the month that includes the effective
1-53 date of the member's retirement and [who] retires based on service
1-54 or a disability; or
1-55 (2) on or after September 1, 2000, has at least 10
1-56 years of membership service that has never been canceled and holds
1-57 a position included in the employee class of membership during the
1-58 month that includes the effective date of the member's termination
1-59 of employment [is entitled to service credit in the retirement
1-60 system for the member's sick leave that has accumulated and is
1-61 unused on the last day of employment].
1-62 (b) A death benefit designee under Section 814.301 or
1-63 814.302 of a member who holds a position included in the employee
1-64 class of membership during the month that includes the member's
2-1 date of death is entitled to service credit in the retirement
2-2 system for the member's sick leave that has accumulated and is
2-3 unused on the member's date of death.
2-4 (c) Sick leave is creditable in the retirement system at the
2-5 rate of one month of service credit for each 20 days, or 160 hours,
2-6 of accumulated sick leave and one month for each fraction of days
2-7 or hours remaining after division of the total hours of accumulated
2-8 sick leave by 160.
2-9 (d) [(b)] A member who holds a position included in the
2-10 employee class may use sick leave creditable under this section to
2-11 satisfy service requirements for retirement under Section 814.104
2-12 or 814.107 if the sick leave attributed to the eligibility
2-13 requirements remains otherwise unused on the last day of
2-14 employment.
2-15 (e) A death benefit designee under Section 814.302 may use
2-16 the deceased member's sick leave credit under this section to
2-17 qualify for making a death benefit plan selection under Section
2-18 814.302.
2-19 (f) [(c)] Except as provided by Subsection (g) [(d)], the
2-20 disbursing officer of each department or agency shall, before the
2-21 11th day after the effective date of retirement, the date of
2-22 another employment termination described by Subsection (a), or the
2-23 date of death of one or more employees of the department or agency,
2-24 certify to the retirement system:
2-25 (1) the name of each person:
2-26 (A) whose employment termination is described by
2-27 Subsection (a);
2-28 (B) whose retirement from the department or
2-29 agency, and from state service, became effective during the
2-30 preceding month; or
2-31 (C) who died during the preceding month; and
2-32 (2) the amount of the person's accumulated sick leave
2-33 on the last day of employment or date of death.
2-34 (g) [(d)] The disbursing officer of a department or agency
2-35 that employs a member who applies for retirement under Subsection
2-36 (d) [(b)] shall, not more than 90 or less than 30 days before the
2-37 effective date of the member's retirement, certify to the
2-38 retirement system the amount of the member's accumulated and unused
2-39 sick leave. The officer shall immediately notify the retirement
2-40 system if the member uses sick leave after the date of
2-41 certification.
2-42 (h) [(e)] On receipt of a certification under Subsection (f)
2-43 [(c)] or (g) [(d)], the retirement system shall grant any credit to
2-44 which the [a] retiring member, [or] retiree, or member whose
2-45 employment has terminated [who is a subject of the certification]
2-46 is entitled. An increase in the computation of an annuity because
2-47 of credit provided by this section after a certification under
2-48 Subsection (f) [(c)] begins with the first payment that becomes due
2-49 after certification.
2-50 (i) [(f)] The retirement system shall cancel the retirement
2-51 of a person who used sick leave creditable under this section to
2-52 qualify for service retirement if the sick leave is otherwise used
2-53 by the person before the effective date of retirement.
2-54 (j) [(g)] In this section, "sick leave" does not include
2-55 credit granted under an agency sick-leave pool or under the Family
2-56 and Medical Leave Act of 1993 (Pub. L. 103-3), and its subsequent
2-57 amendments.
2-58 (k) If a member returns to employment with the state before
2-59 the first anniversary of the date of the member's termination of
2-60 employment, the member is not entitled to service credit previously
2-61 credited under this section.
2-62 SECTION 5. Section 813.511, Government Code, as added by
2-63 Chapter 1541, Acts of the 76th Legislature, Regular Session, 1999,
2-64 is amended to read as follows:
2-65 Sec. 813.511. CREDIT FOR ACCUMULATED ANNUAL LEAVE. (a) A
2-66 member who holds a position included in the employee class of
2-67 membership during the month that includes the effective date of the
2-68 member's retirement and who retires based on service or a
2-69 disability is entitled to service credit in the retirement system
3-1 for the member's annual leave that has accumulated and is unused on
3-2 the last day of employment.
3-3 (b) A death benefit designee under Section 814.301 or
3-4 814.302 of a member who holds a position included in the employee
3-5 class of membership during the month that includes the member's
3-6 date of death is entitled to service credit in the retirement
3-7 system for the member's annual leave that has accumulated and is
3-8 unused on the member's date of death.
3-9 (c) Annual leave is creditable in the retirement system at
3-10 the rate of one month of service credit for each 20 days, or 160
3-11 hours, of accumulated annual leave and one month for each fraction
3-12 of days or hours remaining after division of the total hours of
3-13 accumulated annual leave by 160.
3-14 (d) [(b)] A member who holds a position included in the
3-15 employee class may use annual leave creditable under this section
3-16 to satisfy service requirements for retirement under Section
3-17 814.104 or 814.107 if the annual leave attributed to the
3-18 eligibility requirements remains otherwise unused on the last day
3-19 of employment.
3-20 (e) A death benefit designee under Section 814.302 may use
3-21 the deceased member's annual leave credit under this section to
3-22 qualify for making a death benefit plan selection under Section
3-23 814.302.
3-24 (f) [(c)] Except as provided by Subsection (g) [(d)], the
3-25 disbursing officer of each department or agency shall, before the
3-26 11th day after the effective date of retirement or date of death of
3-27 one or more employees of the department or agency, certify to the
3-28 retirement system:
3-29 (1) the name of each person:
3-30 (A) whose retirement from the department or
3-31 agency, and from state service, became effective during the
3-32 preceding month; or
3-33 (B) who died during the preceding month; and
3-34 (2) the amount of the person's accumulated annual
3-35 leave on the last day of employment or date of death.
3-36 (g) [(d)] The disbursing officer of a department or agency
3-37 that employs a member who applies for retirement under Subsection
3-38 (d) [(b)] shall, not more than 90 or less than 30 days before the
3-39 effective date of the member's retirement, certify to the
3-40 retirement system the amount of the member's accumulated and unused
3-41 annual leave. The officer shall immediately notify the retirement
3-42 system if the member uses annual leave after the date of
3-43 certification.
3-44 (h) [(e)] On receipt of a certification under Subsection (f)
3-45 [(c)] or (g) [(d)], the retirement system shall grant any credit to
3-46 which a retiring member or retiree who is a subject of the
3-47 certification is entitled. An increase in the computation of an
3-48 annuity because of credit provided by this section after a
3-49 certification under Subsection (f) [(d)] begins with the first
3-50 payment that becomes due after certification.
3-51 (i) [(f)] The retirement system shall cancel the retirement
3-52 of a person who used annual leave creditable under this section to
3-53 qualify for service retirement if the annual leave is otherwise
3-54 used by the person before the effective date of retirement.
3-55 SECTION 6. Subchapter F, Chapter 813, Government Code, is
3-56 amended by adding Section 813.513 to read as follows:
3-57 Sec. 813.513. CREDIT PURCHASE OPTION. (a) An eligible
3-58 member may establish not more than 60 months of equivalent
3-59 membership service credit, including law enforcement or custodial
3-60 officer service, in either the elected class or the employee class.
3-61 (b) A member is eligible to establish service credit under
3-62 this section if the member has at least 120 months of actual
3-63 membership service of the type of service that the member seeks to
3-64 establish.
3-65 (c) A member may establish service credit under this section
3-66 by depositing with the retirement system, for each month of service
3-67 credit, the actuarial present value, at the time of deposit, of the
3-68 additional standard retirement annuity benefits that would be
3-69 attributable to the purchase of the service credit under this
4-1 section, based on rates and tables recommended by the retirement
4-2 system's actuary and adopted by the board of trustees.
4-3 (d) After a member makes the deposits required by this
4-4 section, the retirement system shall grant the member one month of
4-5 equivalent membership service credit for each month of credit
4-6 approved.
4-7 (e) The retirement system shall deposit the amount of the
4-8 actuarial present value of the service credit purchased in the
4-9 member's individual account in the employees saving account.
4-10 (f) The board of trustees may adopt rules to administer this
4-11 section, including rules that impose restrictions on the
4-12 application of this section.
4-13 SECTION 7. Subsections (b) and (f), Section 814.107,
4-14 Government Code, are amended to read as follows:
4-15 (b) The standard service retirement annuity payable for at
4-16 least 20 years of service credit as a law enforcement or custodial
4-17 officer is an amount computed on the basis of the member's average
4-18 monthly compensation [for that service] for the 36 highest months
4-19 of compensation in the employee class, times the sum of the
4-20 percentage factor used in the computation of a standard service
4-21 retirement annuity under Section 814.105 plus .5 percent.
4-22 (f) The standard combined service retirement annuity payable
4-23 for at least 20 years of service credit as a law enforcement or
4-24 custodial officer may not exceed 100 percent of the [higher of the]
4-25 average compensation computed under [Section 814.105 or the average
4-26 compensation computed under] Subsection (b).
4-27 SECTION 8. Section 814.108, Government Code, is amended by
4-28 adding Subsection (h) to read as follows:
4-29 (h) A beneficiary designation that names a former spouse as
4-30 beneficiary for a guaranteed optional annuity is invalid unless the
4-31 designation is made after the date of the divorce.
4-32 SECTION 9. Subsection (b), Section 814.1081, Government
4-33 Code, is amended to read as follows:
4-34 (b) If a retiree files a request as provided by Subsection
4-35 (a), the retirement system shall recompute the annuity as a
4-36 standard service retirement annuity. The increase in the [right to
4-37 receive payment of an] annuity under [as adjusted as provided by]
4-38 this section begins with the monthly [first] payment made to the
4-39 retiree for the month following the month in which [that becomes
4-40 due after the date] a request is filed as provided by Subsection
4-41 (a).
4-42 SECTION 10. Section 814.201, Government Code, is amended by
4-43 amending Subsection (c) and adding Subsection (d) to read as
4-44 follows:
4-45 (c) An application for an occupational disability retirement
4-46 annuity may not be made after the second anniversary of the date
4-47 the injury or disease that causes the disability occurs unless the
4-48 executive director permits the application after that date because
4-49 of a showing of good cause for delay.
4-50 (d) An applicant must submit to medical examination and
4-51 provide other pertinent information as required by the retirement
4-52 system.
4-53 SECTION 11. Section 814.202, Government Code, is amended by
4-54 adding Subsection (e) to read as follows:
4-55 (e) A member otherwise eligible may not apply for or receive
4-56 a nonoccupational disability annuity if the member is eligible for
4-57 a service retirement annuity under Section 814.102 or 814.104.
4-58 SECTION 12. Subchapter C, Chapter 814, Government Code, is
4-59 amended by adding Section 814.2055 to read as follows:
4-60 Sec. 814.2055. AVERAGE MONTHLY COMPENSATION. For purposes
4-61 of Sections 814.206 and 814.207, "average monthly compensation"
4-62 means:
4-63 (1) a member's average monthly compensation for
4-64 service in the employee class for the 36 highest months of
4-65 compensation; or
4-66 (2) a member's average monthly compensation for
4-67 service in the employee class if a member retires with less than 36
4-68 months of service.
4-69 SECTION 13. Subsections (a) and (b), Section 814.206,
5-1 Government Code, are amended to read as follows:
5-2 (a) Except as provided by Subsection (b) and Section
5-3 814.207, a standard disability retirement annuity for service
5-4 credited in the employee class of membership is an amount computed
5-5 at the rate of 2.25 [two] percent for each year of service credit
5-6 in that class, times[:]
5-7 [(1) the member's monthly compensation at the time of
5-8 the disabling injury or disease, if the disability is occupational;
5-9 or]
5-10 [(2)] the member's average monthly compensation [for
5-11 service in the employee class for the 36 highest months of
5-12 compensation, if the disability is nonoccupational].
5-13 (b) A standard disability retirement annuity under this
5-14 section may not be more than 100 percent of the average monthly
5-15 [applicable rate of] compensation or, if occupational, not less
5-16 than 35 percent of the average monthly compensation [applicable
5-17 rate,] or $150 a month, whichever is greater.
5-18 SECTION 14. Section 814.207, Government Code, is amended by
5-19 amending Subsections (b), (c), and (e) and adding Subsection (f) to
5-20 read as follows:
5-21 (b) Except as provided by Subsection (c), an occupational
5-22 disability retirement annuity under this section is an amount, but
5-23 not more than 100 percent, computed on the basis of the officer's
5-24 average monthly compensation [at the time of the disabling injury
5-25 or disease], times a percentage derived by application of Section
5-26 814.107(b).
5-27 (c) A disability retirement annuity under this section is
5-28 not reducible because of age and may not be less than 50 percent of
5-29 the officer's average monthly compensation regardless of the amount
5-30 of service credited to the officer in the employee class.
5-31 (e) If a retiring member or retiree under this section
5-32 presents evidence satisfactory to the retirement system that the
5-33 person's condition makes the person incapable of gainful occupation
5-34 and is considered a total disability under federal social security
5-35 law, the retirement system shall increase the person's occupational
5-36 disability retirement annuity to 100 percent of the officer's
5-37 average monthly compensation [at the time of the disabling injury
5-38 or disease].
5-39 (f) An annuity increase under Subsection (e) is not payable
5-40 before the first month following the month in which the
5-41 satisfactory evidence is received by the retirement system under
5-42 Subsection (e).
5-43 SECTION 15. Section 814.401, Government Code, is amended by
5-44 adding Subsection (e) to read as follows:
5-45 (e) A beneficiary designation that names a former spouse as
5-46 beneficiary is invalid unless the designation is made after the
5-47 date of the divorce.
5-48 SECTION 16. Section 814.505, Government Code, is amended by
5-49 adding Subsection (i) to read as follows:
5-50 (i) A beneficiary designation that names a former spouse as
5-51 beneficiary is invalid unless the designation is made after the
5-52 date of the divorce.
5-53 SECTION 17. Section 815.102, Government Code, is amended to
5-54 read as follows:
5-55 Sec. 815.102. RULEMAKING. (a) Subject to the limitations
5-56 of this subtitle, the board of trustees may adopt rules for:
5-57 (1) eligibility of membership;
5-58 (2) the administration of the funds of the retirement
5-59 system;
5-60 (3) the program of supplemental benefits for law
5-61 enforcement and custodial officers;
5-62 (4) hearings on contested cases or disputed claims;
5-63 and
5-64 (5) [(4)] the transaction of any other business of the
5-65 board.
5-66 (b) Rules adopted under this section related to a hearing on
5-67 a contested case or disputed claim control over rules adopted under
5-68 Section 2003.050.
5-69 SECTION 18. Section 815.103, Government Code, is amended by
6-1 adding Subsection (e) to read as follows:
6-2 (e) Subchapter C, Chapter 2260, does not apply to the
6-3 retirement system. The acceptance of benefits by the retirement
6-4 system under a contract does not waive immunity from suit or
6-5 immunity from liability.
6-6 SECTION 19. Section 815.318, Government Code, is amended to
6-7 read as follows:
6-8 Sec. 815.318. TRANSFER OF ASSETS FROM INTEREST ACCOUNT. (a)
6-9 The retirement system [board of trustees] shall transfer from the
6-10 interest account to the employees saving account amounts of
6-11 interest computed under Section 815.311 at the following times:
6-12 (1) as required during the fiscal year for a member's
6-13 account in the retirement system that is closed before the last day
6-14 of the fiscal year; and
6-15 (2) as of the last day of the fiscal year for a
6-16 member's account that is not closed before the last day of the
6-17 fiscal year.
6-18 (b) As required during the year, the retirement system
6-19 [board of trustees] shall transfer from the interest account to the
6-20 expense account amounts it determines necessary for the payment of
6-21 the retirement system's expenses that exceed the amount of money
6-22 available for those expenses.
6-23 (c) As of the last day of each fiscal year, the retirement
6-24 system [board of trustees] shall transfer from the interest account
6-25 to the retirement annuity reserve account an amount equal to:
6-26 (1) five percent of the mean amount in the retirement
6-27 annuity reserve account for that fiscal year; or
6-28 (2) an amount computed at a greater rate if the
6-29 actuary recommends the greater rate to finance adequately the
6-30 annuities payable from the retirement annuity reserve account.
6-31 (d) After making the transfers required by this section, the
6-32 retirement system [board of trustees], as of the last day of each
6-33 fiscal year, shall transfer the amount remaining in the interest
6-34 account to the state accumulation account.
6-35 SECTION 20. Subsection (a), Section 815.402, Government
6-36 Code, is amended to read as follows:
6-37 (a) Except as provided by Section 813.201, each [Each]
6-38 payroll period, each department or agency of the state shall cause
6-39 to be deducted from each member's compensation a contribution of:
6-40 (1) six percent of the compensation if the member is
6-41 not a member of the legislature; or
6-42 (2) eight percent of the compensation if the member is
6-43 a member of the legislature.
6-44 SECTION 21. Section 815.503, Government Code, is amended to
6-45 read as follows:
6-46 Sec. 815.503. RECORDS. (a) Records of members, [and]
6-47 annuitants, retirees, beneficiaries, and alternate payees under
6-48 retirement plans administered by the retirement system that are in
6-49 the custody of the system or of an administrator, carrier, or other
6-50 governmental agency acting in cooperation with or on behalf of the
6-51 retirement system are confidential and not subject to public
6-52 disclosure and are exempt from the public access provisions of
6-53 Chapter 552, except as otherwise provided by this section.
6-54 (b) Records may be released to a member, [or] annuitant,
6-55 retiree, beneficiary, or alternate payee or to an authorized
6-56 attorney, family member, or representative acting on behalf of the
6-57 member, [or] annuitant, retiree, beneficiary, or alternate payee.
6-58 The retirement system may release the records to an administrator,
6-59 carrier, or agent or attorney acting on behalf of the retirement
6-60 system, to another governmental entity having a legitimate need for
6-61 the information to perform the purposes of the retirement system,
6-62 or to a party in response to a subpoena issued under applicable
6-63 law.
6-64 (c) The records of a member, [or] annuitant, retiree,
6-65 beneficiary, or alternate payee remain confidential after release
6-66 to a person as authorized by this section. The records of a
6-67 member, [or] annuitant, retiree, beneficiary, or alternate payee
6-68 may become part of the public record of an administrative or
6-69 judicial proceeding related to a contested case under Subtitle D or
7-1 E or this subtitle, and the member, annuitant, retiree,
7-2 beneficiary, or alternate payee waives the confidentiality of the
7-3 records, including medical records unless the records are closed to
7-4 public access by a protective order issued under applicable law.
7-5 (d) The retirement system may require a person to provide
7-6 the person's social security number as the system considers
7-7 necessary to ensure the proper administration of all services,
7-8 benefits, plans, and programs under the retirement system's
7-9 administration, oversight, or participation, or as otherwise
7-10 required by state or federal law.
7-11 SECTION 22. Section 840.402, Government Code, is amended to
7-12 read as follows:
7-13 Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of
7-14 members, [and] annuitants, retirees, beneficiaries, and alternate
7-15 payees of the retirement system are confidential under [within the
7-16 terms of] Section 815.503.
7-17 SECTION 23. Subdivisions (2) and (8), Subsection (a),
7-18 Section 3, Texas Employees Uniform Group Insurance Benefits Act
7-19 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
7-20 read as follows:
7-21 (2) "Annuitant" shall mean an officer or employee who
7-22 has at least 10 [three] years of service as an eligible employee
7-23 with a department whose employees are authorized to participate in
7-24 the Texas employees uniform group insurance benefits program or who
7-25 has at least five years of membership and five years of military
7-26 service credited in the Employees Retirement System of Texas and
7-27 who retires under:
7-28 (A) the jurisdiction of the Employees Retirement
7-29 System of Texas and either receives an annuity or is eligible to
7-30 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
7-31 Government Code, or Chapter 803, Government Code, that is based on
7-32 at least 10 years of service credit or eligibility under Section
7-33 814.002 or 814.102, Government Code;
7-34 (B) the jurisdiction of the Teacher Retirement
7-35 System of Texas and either receives an annuity or is eligible to
7-36 receive an annuity, pursuant to Subtitle C, Title 8, Government
7-37 Code, or Chapter 803, Government Code, that is based on at least 10
7-38 years of service credit, whose last state employment prior to
7-39 retirement, including employment by a public community/junior
7-40 college, was as an employee of a department whose employees are
7-41 authorized to participate in the Texas employees uniform group
7-42 insurance program;
7-43 (C) the optional retirement program established
7-44 by Chapter 830, Government Code, and either receives an annuity or
7-45 is eligible to receive an annuity under that program, if the person
7-46 either:
7-47 (i) would have been eligible to retire and
7-48 receive a service retirement annuity from the Teacher Retirement
7-49 System of Texas or the Employees Retirement System of Texas based
7-50 on at least 10 years of service credit had the person not elected
7-51 to participate in the optional retirement program; or
7-52 (ii) is disabled as determined by the
7-53 Employees Retirement System of Texas; or
7-54 (D) any other federal or state statutory
7-55 retirement program to which an institution of higher education has
7-56 made employer contributions, if the employee has met service
7-57 requirements, age requirements, and other applicable requirements
7-58 comparable to the requirements for retirement under the Teacher
7-59 Retirement System of Texas, based on at least 10 years of service
7-60 credit.
7-61 (8) "Dependent" shall mean the spouse of an employee
7-62 or retired employee and:
7-63 (A) an unmarried child under 25 years of age,
7-64 including an adopted child and a stepchild, foster child, or other
7-65 child who is in a regular parent-child relationship;
7-66 (B) any such child, regardless of age, who the
7-67 trustee determines lives with or whose care is provided by an
7-68 employee or annuitant on a regular basis if:
7-69 (i) such child is mentally retarded or
8-1 physically incapacitated to such an extent as to be dependent upon
8-2 the employee or retired employee for care or support, as the
8-3 trustee shall determine;
8-4 (ii) such child's coverage under this Act
8-5 has not lapsed; and
8-6 (iii) such child is at least 25 years old
8-7 and was enrolled as a participant in the health benefits coverage
8-8 under the Texas employees uniform group insurance program on the
8-9 date of the child's 25th birthday; and
8-10 (C) any such child who is unmarried, regardless
8-11 of age, for purposes of health benefits coverage under this Act, on
8-12 expiration of the child's continuation coverage under the
8-13 Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L.
8-14 99-272), and its subsequent amendments.
8-15 SECTION 24. Section 4, Texas Employees Uniform Group
8-16 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
8-17 Code), is amended to read as follows:
8-18 Sec. 4. ADMINISTRATION. The administration and
8-19 implementation of this Act are vested solely in the trustee. As it
8-20 shall deem necessary to insure the proper administration of this
8-21 Act and the insurance coverages, services, and benefits provided
8-22 for or authorized by this Act, the trustee, as an agency of the
8-23 State of Texas, shall have full power and authority to hire
8-24 employees. The duties of such employees and their compensation
8-25 shall be determined and assigned by the trustee. The trustee may,
8-26 on a competitive bid basis, contract with a qualified, experienced
8-27 firm of group insurance specialists or an administering firm who
8-28 shall act for the trustee in a capacity as independent
8-29 administrators and managers of the programs authorized under this
8-30 Act. The independent administrator so selected by the trustee shall
8-31 assist the trustee to insure the proper administration of the Act
8-32 and the coverages, services, and benefits provided for or
8-33 authorized by the Act and shall be paid by the trustee.
8-34 Compensation of all persons employed by the trustee and their
8-35 expenses shall be paid at such rates and in such amounts as the
8-36 trustee shall approve, providing that in no case shall they be
8-37 greater than those expenses paid for like or similar services.
8-38 Also, as an agency of the State of Texas, the trustee shall have
8-39 full power and authority to enter into interagency contracts with
8-40 any department of the State of Texas. The interagency contracts
8-41 shall provide for reimbursement to the state departments and shall
8-42 define the services to be performed by the departments for the
8-43 trustee. The trustee shall have full power and authority to
8-44 promulgate all rules, regulations, plans, procedures, and orders
8-45 reasonably necessary to implement and carry out the purposes and
8-46 provisions of this Act in all its particulars, including but not
8-47 limited to the following:
8-48 (a) preparation of specifications for coverages
8-49 provided by authority of this Act;
8-50 (b) prescribing the time at which and the conditions
8-51 under which an employee, annuitant, or dependent is eligible for
8-52 all coverages provided under this Act;
8-53 (c) determination of the methods and procedures of
8-54 claims administration;
8-55 (d) determination of the amount of employee payroll
8-56 deductions and reductions and the responsibility of establishing
8-57 procedures by which such deductions and reductions shall be made;
8-58 (e) establishment of procedures by which the trustee
8-59 shall decide contested cases arising from programs or coverages
8-60 provided under authority of this Act;
8-61 (f) continuing study of the operation of all coverages
8-62 provided under this Act, including such matters as gross and net
8-63 cost, administration costs, benefits, utilization of benefits, and
8-64 claims administration;
8-65 (g) administration of the Employees Life, Accident,
8-66 and Health Insurance and Benefits Fund, providing for the beginning
8-67 and ending dates of coverages of employees and annuitants and their
8-68 dependents under all benefit plans;
8-69 (h) adoption of all rules and regulations consistent
9-1 with the provisions of this Act and its purpose as it deems
9-2 necessary to carry out its statutory duties and responsibilities;
9-3 (i) development of basic plans of group coverages and
9-4 benefits applicable to all employees. The trustee also may provide
9-5 for optional group coverages and benefits in addition to the basic
9-6 plan;
9-7 (j) to provide either additional statewide optional
9-8 programs or individual agency optional programs as the trustee may
9-9 determine is appropriate;
9-10 (k) design, development, adoption, implementation, and
9-11 administration of a cafeteria plan;
9-12 (l) purchase of liability insurance for the coverage
9-13 of the trustees, employees, and agents of the board of trustees in
9-14 such amounts as the board of trustees, in its sole discretion,
9-15 considers reasonable and necessary;
9-16 (m) development of health benefits plans that permit
9-17 access to high quality, cost-effective health care;
9-18 (n) designing, implementing, and monitoring health
9-19 benefits plan features intended to discourage excessive
9-20 utilization, promote efficiency, and contain costs;
9-21 (o) development and continuing refinement of a health
9-22 care benefit strategy consistent with evolving benefit delivery
9-23 systems; [and]
9-24 (p) development of a funding strategy to efficiently
9-25 utilize employer contributions to achieve the purposes of this Act
9-26 and which is reasonable and assures employees and retired employee
9-27 annuitants a fair choice among health benefit plans as set out in
9-28 Section 14 of this Act; and
9-29 (q) appointment of an advisory committee for the
9-30 program provided by this Act under the terms provided by Section
9-31 815.509, Government Code.
9-32 SECTION 25. Subsection (c), Section 4B, Texas Employees
9-33 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
9-34 Texas Insurance Code), is amended to read as follows:
9-35 (c) A decision by the executive director under Subsection
9-36 (a) [or (a-1)] of this section may be appealed only to the trustee.
9-37 An appeal to the trustee is a contested case under the
9-38 administrative procedure law, Chapter 2001, Government Code.
9-39 Standing to pursue an administrative appeal under this section is
9-40 limited to employees, participants, annuitants, and covered
9-41 dependents participating in the Texas employees uniform group
9-42 insurance program or, after the death of an employee, [a]
9-43 participant, annuitant, or covered dependent, to the person's
9-44 [participant's] estate, personal representative, heirs at law, or
9-45 designated beneficiary.
9-46 SECTION 26. Subsection (j), Section 5, Texas Employees
9-47 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
9-48 Texas Insurance Code), is amended to read as follows:
9-49 (j) The trustee may not contract for or provide a plan of
9-50 coverage that:
9-51 (1) excludes or limits coverage or services for
9-52 acquired immune deficiency syndrome, as defined by the Centers for
9-53 Disease Control of the United States Public Health Service, or
9-54 human immunodeficiency virus infection; or
9-55 (2) provides coverage for serious mental illness that
9-56 is less extensive than the minimum coverage [provided] for serious
9-57 mental illness required by Section 3, Article 3.51-14, Insurance
9-58 Code [any physical illness].
9-59 SECTION 27. Section 10, Texas Employees Uniform Group
9-60 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
9-61 Code), is amended by amending Subsection (c) and adding Subsection
9-62 (d) to read as follows:
9-63 (c) The records of a participant in the Texas Employees
9-64 Uniform Group Insurance Program in the custody of the trustee, or
9-65 of an administrator or carrier acting on behalf of the trustee, are
9-66 confidential and not subject to disclosure and are exempt from the
9-67 public access provisions of Chapter 552, Government Code, except as
9-68 provided by this subsection. Records may be released to a
9-69 participant or to an authorized attorney, family member, or
10-1 representative acting on behalf of the participant. The trustee
10-2 may release the records to an administrator, carrier, or agent or
10-3 attorney acting on behalf of the trustee, to another governmental
10-4 entity, to a medical provider of the participant for the purpose of
10-5 carrying out the purposes of this Act, or to a party in response to
10-6 a subpoena issued under applicable law. The records of a
10-7 participant remain confidential after release to a person as
10-8 authorized by this subsection. The records of a participant may
10-9 become part of the public record of an administrative or judicial
10-10 proceeding related to a contested case under this Act, unless the
10-11 records are closed to public access by a protective order issued
10-12 under applicable law. If a participant's records have become part
10-13 of the public record of a proceeding and the records are not the
10-14 subject of a protective order, the participant is considered to
10-15 have waived the privacy of the participant's records.
10-16 (d) The trustee may require an individual to disclose the
10-17 individual's social security number as the trustee considers
10-18 necessary to properly administer this Act and any coverage,
10-19 service, or benefit authorized by this Act or as otherwise required
10-20 by state or federal law.
10-21 SECTION 28. The Texas Employees Uniform Group Insurance
10-22 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
10-23 amended by adding Section 10A to read as follows:
10-24 Sec. 10A. EXCLUSIVE REMEDY. The remedies provided under
10-25 this Act are the exclusive remedies available to an employee,
10-26 participant, annuitant, or dependent.
10-27 SECTION 29. Section 13A, Texas Employees Uniform Group
10-28 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
10-29 Code), is amended to read as follows:
10-30 Sec. 13A. ADMINISTRATIVE PROCESS AND SANCTIONS FOR INSURANCE
10-31 PROGRAM VIOLATIONS [EXPULSION FROM GROUP INSURANCE PROGRAM].
10-32 (a) The Employees Retirement System of Texas [After notice and
10-33 hearing as provided by this section, the trustee] may impose one or
10-34 more sanctions described by this section against [expel from
10-35 participation in the Texas employees uniform group insurance
10-36 program] any employee, participant, annuitant, or dependent who:
10-37 (1) submits a materially false [fraudulent] claim or
10-38 application for coverage under [or has defrauded or attempted to
10-39 defraud] any health maintenance organization or insurance or
10-40 benefits plan offered under the program;
10-41 (2) defrauds or attempts to defraud any health
10-42 maintenance organization or insurance or benefits plan offered
10-43 under the program;
10-44 (3) obtains or induces the extension of coverage under
10-45 any program provided under this Act by a materially negligent or
10-46 intentional misrepresentation, a failure to disclose material
10-47 information, or fraud; or
10-48 (4) induces the extension of coverage under any
10-49 program provided under this Act by supplying false information on
10-50 an application for coverage or in related documentation or in any
10-51 communication.
10-52 (b) On receipt of a complaint or on its own motion, if the
10-53 Employees Retirement System of Texas determines that an employee,
10-54 participant, annuitant, or dependent has engaged in conduct
10-55 described by Subsection (a) of this section, the retirement system
10-56 [trustee] may:
10-57 (1) expel from the program the [call and hold a
10-58 hearing to determine whether an] employee, participant, annuitant,
10-59 or dependent;
10-60 (2) impose limitations on the person's participation
10-61 in the program;
10-62 (3) rescind any coverage obtained or extended as a
10-63 result of the conduct under Subsection (a) of this section;
10-64 (4) deny a claim arising from coverage; or
10-65 (5) require the person to reimburse the Employees
10-66 Life, Accident, and Health Insurance and Benefits Trust Account for
10-67 any benefit obtained as a result of the conduct.
10-68 (c) An expulsion under Subsection (b) of this section may be
10-69 permanent or for a specified period. A rescission of coverage
11-1 under Subsection (b) of this section may be from the date of
11-2 inception of the coverage or from the date of the prohibited
11-3 conduct [has submitted a fraudulent claim or application for
11-4 coverage under or has defrauded or attempted to defraud any health
11-5 maintenance organization or insurance or benefits plan offered
11-6 under the Texas employees uniform group insurance program].
11-7 (d) A person may appeal a determination made under
11-8 Subsection (a) or (b) of this section only to the board of
11-9 trustees.
11-10 [(c)] A proceeding under this subsection [section] is a
11-11 contested case under the administrative procedure law, Chapter
11-12 2001, Government Code. Section 4B of this Act applies to an appeal
11-13 to the board of trustees under this subsection. The appellant has
11-14 the burden of proof and any sanction imposed is stayed during an
11-15 appeal under this subsection. If a person fails to make a timely
11-16 appeal, any sanction relates back to the date of the determination
11-17 of the Employees Retirement System of Texas.
11-18 [(d) At the conclusion of the hearing, if the trustee issues
11-19 a decision that finds that the accused employee, annuitant, or
11-20 dependent submitted a fraudulent claim or application for coverage
11-21 or has defrauded or attempted to defraud any health maintenance
11-22 organization or insurance or benefits plan offered under the Texas
11-23 employees uniform group insurance program, the trustee shall expel
11-24 the employee, annuitant, or dependent from participation in the
11-25 program.]
11-26 [(e)] An appeal of a decision of the trustee under this
11-27 subsection [section] is under the substantial evidence rule.
11-28 (e) [(f)] An employee, participant, annuitant, or dependent
11-29 expelled from the Texas employees uniform group insurance program
11-30 may not participate in any plan of coverage offered by the program
11-31 for the [a] period determined by the Employees Retirement System of
11-32 Texas [trustee of not more than five years from the date the
11-33 expulsion from the program takes effect].
11-34 SECTION 30. The Texas Employees Uniform Group Insurance
11-35 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
11-36 amended by adding Section 13A-1 to read as follows:
11-37 Sec. 13A-1. MISCONDUCT INFORMATION. (a) This section
11-38 applies to:
11-39 (1) the Employees Retirement System of Texas;
11-40 (2) a carrier or other insurance company or health
11-41 maintenance organization;
11-42 (3) an administering firm or other insurance support
11-43 organization that provides information or services to the Texas
11-44 employees uniform group insurance program or the Employees
11-45 Retirement System of Texas;
11-46 (4) an agent or third-party administrator authorized
11-47 under this Act or licensed under the insurance laws of this state;
11-48 (5) a regulatory authority or department; and
11-49 (6) a board member, executive director, employee,
11-50 auditor, or actuary of an entity described by this section.
11-51 (b) A person may collect from, furnish to, or exchange with
11-52 another person information, including medical records or other
11-53 confidential information, to the extent the person considers
11-54 necessary to detect or to impose a sanction for a criminal act, a
11-55 misrepresentation, or nondisclosure that is related to an attempt
11-56 to obtain coverage, payment, reimbursement, or a benefit under this
11-57 Act.
11-58 (c) A person who acts under Subsection (b) of this section
11-59 is immune from suit and criminal or civil liability unless the
11-60 person acts with malice or intent to defraud.
11-61 SECTION 31. Section 13B, Texas Employees Uniform Group
11-62 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
11-63 Code), is amended by adding Subsection (e) to read as follows:
11-64 (e) The trustee may adopt rules for the use of a debit card
11-65 or other similar technology for claims administration under this
11-66 section.
11-67 SECTION 32. Section 615.001, Government Code, is amended to
11-68 read as follows:
11-69 Sec. 615.001. DEFINITION. In this chapter, "minor child"
12-1 means a child who:
12-2 (1) [,] on the date of the death of an individual
12-3 listed under Section 615.003, is younger than 18 years of age; and
12-4 (2) if the child is not a biological or adopted child,
12-5 was claimed as a dependent on the federal income tax return of an
12-6 individual listed under Section 615.003 for the year preceding the
12-7 year of the individual's death.
12-8 SECTION 33. Subsection (b), Section 615.023, Government
12-9 Code, is amended to read as follows:
12-10 (b) A child's entitlement to assistance payable under this
12-11 section ends on the child's 18th [21st] birthday. At that time,
12-12 payments to any other surviving minor children shall be adjusted,
12-13 as necessary, to conform to the amounts payable under Subsection
12-14 (a).
12-15 SECTION 34. Subsection (a), Section 615.042, Government
12-16 Code, is amended to read as follows:
12-17 (a) The [board of trustees of the] Employees Retirement
12-18 System of Texas shall notify the comptroller of the retirement
12-19 system's [board's] determination that a claim under this chapter is
12-20 valid and justifies payment.
12-21 SECTION 35. Section 615.043, Government Code, is amended to
12-22 read as follows:
12-23 Sec. 615.043. DENIAL OF CLAIM. If the [board of trustees of
12-24 the] Employees Retirement System of Texas denies a claim, the
12-25 retirement system [board] shall send a notice of the denial to:
12-26 (1) the person making the claim; or
12-27 (2) the duly qualified guardian or legal
12-28 representative of a surviving minor child or dependent sibling, if
12-29 a claim is being made on behalf of the child or sibling.
12-30 SECTION 36. Section 615.044, Government Code, is amended to
12-31 read as follows:
12-32 Sec. 615.044. APPEALS. (a) An eligible survivor or the
12-33 eligible survivor's legal representative [A person] whose claim for
12-34 payment [to a surviving spouse, minor child, or dependent parent or
12-35 sibling] is denied [or the person's legal representative] may
12-36 appeal the denial to the board of trustees of the Employees
12-37 Retirement System of Texas [a district court of the residence of
12-38 the surviving spouse, minor child, or dependent parent or sibling
12-39 or to a district court in Travis County].
12-40 (b) An appeal under this section is considered to be an
12-41 appeal of a contested case under Chapter 2001 and shall be
12-42 conducted as provided by Section 815.511 [must be made not later
12-43 than the 20th day after the date the claimant or legal
12-44 representative receives notice of the denial].
12-45 (c) Judicial review of a decision under this section is
12-46 under the substantial evidence rule as provided by Chapter 2001
12-47 [Proceedings on the appeal are by trial de novo, as that term is
12-48 used in an appeal from a justice court to the county court].
12-49 SECTION 37. Subchapter C, Chapter 615, Government Code, is
12-50 amended by adding Section 615.045 to read as follows:
12-51 Sec. 615.045. RECORDS. (a) Records of individuals listed
12-52 by Section 615.003 and of survivors eligible for benefits under
12-53 this chapter that are in the custody of the Employees Retirement
12-54 System of Texas or a carrier, administering firm as defined by the
12-55 Texas Employees Uniform Group Insurance Benefits Act (Article
12-56 3.50-2, Vernon's Texas Insurance Code), or other governmental
12-57 agency acting with or on behalf of the retirement system are
12-58 confidential, not subject to public disclosure, and exempt from the
12-59 public information provisions of Chapter 552, except as otherwise
12-60 provided by this section.
12-61 (b) Records may be released to an eligible survivor or to an
12-62 authorized attorney, family member, or representative acting on
12-63 behalf of the eligible survivor. The Employees Retirement System
12-64 of Texas may release the records to an administering firm, carrier,
12-65 agent, or attorney acting on behalf of the retirement system, to
12-66 another governmental entity having a legitimate need for the
12-67 information to perform the purposes of the retirement system, or to
12-68 a party in response to a subpoena issued under applicable law.
12-69 (c) The records of individuals listed by Section 615.003 and
13-1 of eligible survivors remain confidential after release to a person
13-2 as authorized by this section. The records of individuals listed
13-3 by Section 615.003 and of eligible survivors may become part of the
13-4 public record of an administrative or judicial proceeding related
13-5 to an appeal filed under this chapter unless the records are closed
13-6 to public access by a protective order issued under applicable law.
13-7 SECTION 38. Subsection (a), Section 615.074, Government
13-8 Code, is amended to read as follows:
13-9 (a) An eligible surviving dependent who is a minor child is
13-10 entitled to continue health insurance coverage until the earlier of
13-11 [the dependent]:
13-12 (1) the date the dependent reaches the age of 18 [21]
13-13 years; or
13-14 (2) the date the dependent becomes eligible for group
13-15 health insurance through another employer.
13-16 SECTION 39. Section 814.1041, Government Code, as amended by
13-17 Chapters 1013 and 1541, Acts of the 76th Legislature, Regular
13-18 Session, 1999, is reenacted to read as follows:
13-19 Sec. 814.1041. TEMPORARY SERVICE RETIREMENT OPTION FOR
13-20 MEMBERS AFFECTED BY PRIVATIZATION OR OTHER REDUCTION IN WORKFORCE.
13-21 (a) This section applies only to members of the employee class who
13-22 are not otherwise eligible to retire and whose positions with the
13-23 Texas Workforce Commission, the Texas Department of Human Services,
13-24 the Texas Department of Mental Health and Mental Retardation, or
13-25 the Texas Department of Health are eliminated as a result of
13-26 contracts with private service providers or other reductions in
13-27 services provided by those agencies and who separate from state
13-28 service at that time.
13-29 (b) A member described by Subsection (a) is eligible to
13-30 retire and receive a service retirement annuity if the member's age
13-31 and service credit, each equally increased only as needed to meet
13-32 minimum age and service requirements, but not by more than three
13-33 years, would meet the minimum age and service requirements for
13-34 service retirement under Section 814.104(a) at the time the member
13-35 separates from state service as described by Subsection (a). The
13-36 annuity of a person who retires under this subsection is computed
13-37 on the person's accrued service credit increased by the minimum
13-38 amount of service credit necessary to meet the service credit
13-39 requirement for retirement, but not by more than three years.
13-40 (c) A member who applies to retire under this section and
13-41 the state agency from which the member separated from service shall
13-42 provide documentation required by the retirement system to
13-43 establish eligibility to retire under this section.
13-44 (d) This section applies only to positions eliminated by
13-45 privatization or other reductions in workforce before September 1,
13-46 2001.
13-47 SECTION 40. The following sections are repealed:
13-48 (1) Section 813.511, Government Code, as added by
13-49 Chapter 226, Acts of the 76th Legislature, Regular Session, 1999;
13-50 (2) Section 814.1042, Government Code, as added by
13-51 Chapter 264, Acts of the 76th Legislature, Regular Session, 1999;
13-52 (3) Section 814.1043, Government Code;
13-53 (4) Section 815.401, Government Code;
13-54 (5) Section 840.101, Government Code;
13-55 (6) Subsection (a-1), Section 4B, Texas Employees
13-56 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
13-57 Texas Insurance Code); and
13-58 (7) Section 18, Texas Employees Uniform Group
13-59 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
13-60 Code).
13-61 SECTION 41. (a) This section applies only to annuities
13-62 under Sections 814.104, 814.1041, 814.107, 814.206, 814.207,
13-63 814.301, 814.302, and 814.305, Government Code, that first became
13-64 payable before September 1, 2001.
13-65 (b) Payments of an annuity adjusted under this section shall
13-66 begin with the first payment that becomes due after December 31,
13-67 2001.
13-68 (c) The amount of an annuity payable on the first day the
13-69 annuity became payable shall be adjusted for plan changes to
14-1 reflect:
14-2 (1) current multiplier values and, if applicable, the
14-3 amount of service credited at the time of retirement or death, as
14-4 specified by Section 814.105, 814.107, 814.206, 814.207, 814.301,
14-5 or 814.302, Government Code;
14-6 (2) current applicable actuarial reduction factors for
14-7 benefits elected under Section 814.108, 814.1081, or 814.1082 or
14-8 Subsection (d), Section 814.206, Subsection (a), Section 814.301,
14-9 or Subsection (a), Section 814.302, Government Code; and
14-10 (3) current minimum standard annuity and maximum
14-11 service percentage values specified by Subsection (b), Section
14-12 814.105, Government Code.
14-13 (d) Annuities shall be adjusted for changes described by
14-14 Section 814.008, Subsection (d), Section 814.108, and Section
14-15 814.1081, Government Code, that occurred after the date the annuity
14-16 first became payable and before January 1, 2002.
14-17 (e) After any adjustment under Subsection (c) or (d) of this
14-18 section is made, the amount of the annuities shall be adjusted
14-19 under this section by multiplying the amount of each annuity by a
14-20 fraction, not less than one, the numerator of which is the Consumer
14-21 Price Index for all urban consumers as reported by the United
14-22 States Bureau of Labor Statistics (CPI-U) for December 2001, and
14-23 the denominator of which is the CPI-U for August of the fiscal year
14-24 in which the annuity first became payable. If the CPI-U for
14-25 December 2001 is not available for a computation under this
14-26 subsection, the numerator is the most recent month's CPI-U
14-27 available at the time of the computation, increased for each month
14-28 from that month until December 2001 by a factor equal to the
14-29 average of the monthly percentage increases in the CPI-U for the
14-30 12-month period ending with that month.
14-31 (f) The board of trustees of the Employees Retirement System
14-32 of Texas may adopt rules to implement this section.
14-33 (g) An adjustment under this section may not cause a
14-34 reduction in the amount of an annuity payable immediately before
14-35 December 31, 2001.
14-36 (h) Adjustments made under this section and rules adopted by
14-37 the board of trustees of the Employees Retirement System of Texas
14-38 under this section must comply with Section 401(a), Internal
14-39 Revenue Code of 1986, as amended, and rules adopted under that
14-40 section and Section 811.006, Government Code.
14-41 SECTION 42. Notwithstanding Subsection (a), Section 813.509,
14-42 Government Code, as amended by this Act, a member of the Employees
14-43 Retirement System of Texas who is otherwise entitled to use sick
14-44 leave for service credit may use service credit in that system that
14-45 was canceled and reestablished before September 1, 2001, to qualify
14-46 for the 10 years of membership service required under Subsection
14-47 (a), Section 813.509, Government Code, as amended by this Act.
14-48 SECTION 43. (a) The change in law made by this Act to
14-49 Subdivision (2), Subsection (a), Section 3, Texas Employees Uniform
14-50 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
14-51 Insurance Code), does not apply to a person who, on August 31,
14-52 2001:
14-53 (1) was an eligible employee with an employer whose
14-54 employees were eligible to participate in the Texas employees
14-55 uniform group insurance program;
14-56 (2) was eligible to participate as a retiree in the
14-57 Texas employees uniform group insurance program; or
14-58 (3) had satisfied any service requirements under the
14-59 Texas Employees Uniform Group Insurance Benefits Act for
14-60 participation as a retiree in the Texas employees uniform group
14-61 insurance program.
14-62 (b) The participation in the Texas employees uniform group
14-63 insurance program of a person described in Subsection (a) of this
14-64 section is governed by the law in effect immediately before the
14-65 effective date of this Act, and the former law is continued in
14-66 effect for that purpose.
14-67 SECTION 44. The change in law made by this Act to Paragraph
14-68 (B), Subdivision (8), Subsection (a), Section 3, Texas Employees
14-69 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
15-1 Texas Insurance Code), applies only to a dependent who was not
15-2 covered by the basic coverage of a health benefits plan under the
15-3 Texas Employees Uniform Group Insurance Benefits Act (Article
15-4 3.50-2, Vernon's Texas Insurance Code), on August 31, 2001.
15-5 SECTION 45. (a) Except as provided by this section, this
15-6 Act takes effect September 1, 2001.
15-7 (b) Section 813.513, Government Code, as added by this Act,
15-8 takes effect January 1, 2002.
15-9 * * * * *