By Duncan                                              S.B. No. 459
         77R2317 SGA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to reestablishment of service credit in a public
 1-3     retirement system participating in the proportionate retirement
 1-4     program.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter C, Chapter 803, Government Code, is
 1-7     amended by adding Section 803.203 to read as follows:
 1-8           Sec. 803.203.  REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS
 1-9     EMPLOYMENT.  (a)  Except as provided by Subsections (d) and (e), an
1-10     eligible member of a retirement system to which this chapter
1-11     applies may reestablish service credit, including prior service
1-12     credit if applicable, previously canceled in another retirement
1-13     system to which this chapter applies.
1-14           (b)  A person eligible to reestablish service credit under
1-15     this section is one who terminated service covered by, and withdrew
1-16     contributions from, a retirement system to which this chapter
1-17     applies and began service in a position covered by another
1-18     retirement system to which this chapter applies and under which the
1-19     person currently holds a position.
1-20           (c)  A person may apply to reestablish service credit under
1-21     this section by filing an application with the retirement system in
1-22     which the service was originally credited.  The system shall grant
1-23     the service credit when the system receives from an eligible
1-24     applicant:
 2-1                 (1)  a contribution in the amount required to
 2-2     reestablish service credit in the retirement system generally,
 2-3     including any applicable interest and membership fees; and
 2-4                 (2)  a certification that the applicant currently holds
 2-5     a position included in the membership of the certifying system.
 2-6           (d)  If service is reestablished under this section in the
 2-7     Texas County and District Retirement System or the Texas Municipal
 2-8     Retirement System, the service is creditable pro rata to the
 2-9     account of each subdivision or municipality for which the service
2-10     was performed.  Service credit may not be reestablished under this
2-11     section for service performed for a subdivision or municipality not
2-12     participating in the proportionate retirement program.
2-13           (e)  Service credit to which Section 805.002(e) applies may
2-14     not be reestablished under this section.
2-15           SECTION 2.  This Act takes effect immediately if it receives
2-16     a vote of two-thirds of all the members elected to each house, as
2-17     provided by Section 39, Article III, Texas Constitution.  If this
2-18     Act does not receive the vote necessary for immediate effect, this
2-19     Act takes effect September 1, 2001.