By Lucio S.B. No. 1010 77R3592 SMJ-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to loans for the purchase of certain service credit in the 1-3 Teacher Retirement System of Texas. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter F, Chapter 823, Government Code, is 1-6 amended by adding Section 823.5015 to read as follows: 1-7 Sec. 823.5015. LOAN TO REESTABLISH SERVICE CREDIT. (a) The 1-8 board of trustees may make a loan to a member for the purpose of 1-9 reinstating service credit canceled by membership termination if: 1-10 (1) the credit was canceled on or before December 31, 1-11 2000; 1-12 (2) the member is eligible to retire under Section 1-13 824.202; and 1-14 (3) the member purchases a credit life insurance 1-15 policy for the term of the loan in an amount sufficient to repay 1-16 the loan and designates the retirement system as the beneficiary of 1-17 the policy. 1-18 (b) The board of trustees shall set an annual rate of 1-19 interest for a loan made under this section at a rate not to exceed 1-20 eight percent. 1-21 (c) The maximum repayment term for a loan made under this 1-22 section is the fifth anniversary of the date on which the contract 1-23 for the loan is made. 1-24 (d) A loan made under this section may be used only to 2-1 reinstate the canceled service credit. 2-2 (e) The board of trustees shall adopt rules to implement 2-3 this section. 2-4 SECTION 2. This Act takes effect immediately if it receives 2-5 a vote of two-thirds of all the members elected to each house, as 2-6 provided by Section 39, Article III, Texas Constitution. If this 2-7 Act does not receive the vote necessary for immediate effect, this 2-8 Act takes effect September 1, 2001.