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By:  Telford, Ritter, Menendez, Flores,                           H.B. No. 2169
 
    et al.                                                                   

A BILL TO BE ENTITLED
AN ACT
relating to the payment of retirement benefits to retirees who are employed by certain public educational institutions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 824.601, Government Code, is amended to read as follows: Sec. 824.601. LOSS OF MONTHLY BENEFITS. (a) In this section, "third-party entity" means an entity retained by a Texas public educational institution to provide personnel to the institution that perform duties or provide services that employees of the institution would otherwise perform or provide. (b) Except as provided by Section 824.602, a retiree is not entitled to service or disability retirement benefit payments, as applicable, for any month in which the retiree is employed in any position by a Texas public educational institution. (c) A Texas public educational institution, for the purposes of this subchapter, is any entity included in the definition of "employer" or "public school" in Section 821.001 or any entity in whose employment the retiree has earned credit as a member of the retirement system. (d) A retiree who is an employee of a third-party entity is considered to be employed by a Texas public educational institution for purposes of this subchapter unless the retiree does not perform duties or provide services on behalf of or for the benefit of the institution. (e) Loss of benefits under this section does not extend any period of guaranteed benefits elected pursuant to Section 824.204. (f) The system may adopt rules necessary for administering this subchapter. SECTION 2. The change in law made by Section 824.601, Government Code, as amended by this Act, applies only to the payment of retirement benefits to a retiree who is first employed by a third-party entity on or after April 22, 2003. The payment of retirement benefits to a retiree who was first employed by a third-party entity before April 22, 2003, is governed by the law in effect before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.