By: Ritter (Senate Sponsor - Armbrister) H.B. No. 2359
(In the Senate - Received from the House April 28, 2003;
May 1, 2003, read first time and referred to Committee on State
Affairs; May 22, 2003, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
May 22, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2359 By: Armbrister
A BILL TO BE ENTITLED
AN ACT
relating to the programs and systems administered by the Employees
Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 609.008, Government Code, is amended to
read as follows:
Sec. 609.008. CREDITING TRUST FUND INTEREST. Interest
earned on an employee's deferred amounts and investment income
deposited in any of the deferred compensation trust funds [fund],
as defined by Section 609.101, or [in the TexaSaver trust fund or
the other deferred compensation trust fund] to which Section
609.512 applies is credited to the employee.
SECTION 2. Sections 609.011 and 609.012, Government Code,
are amended to read as follows:
Sec. 609.011. NOTIFICATION BY [457] PLAN ADMINISTRATOR.
(a) The plan administrator of a [457] plan established under this
chapter may notify an employee participating in the plan that the
administrator believes that:
(1) a qualified vendor is having significant financial
difficulties; or
(2) the amount of the employee's deferred amounts and
investment income invested with a qualified vendor exceeds an
insured or guaranteed level.
(b) A plan administrator is not liable to a participating
[an] employee for a loss resulting from the failure to notify the
employee under this section.
Sec. 609.012. TRANSFER FROM A [457] PLAN VENDOR. The plan
administrator of a [457] plan established under this chapter may
immediately transfer to the plan's deferred compensation trust fund
all deferred amounts and investment income from a vendor who at any
time fails to satisfy the requirements of this chapter or the plan
administrator. A vendor may not charge a fee or penalty as the
result of a plan administrator's transfer under this section.
Immediately after making the transfer, the plan administrator shall
give to each employee whose deferred amounts and investment income
were transferred a notice that states that:
(1) the vendor's investment products are ineligible to
receive additional deferred amounts;
(2) the amounts have been transferred from the vendor
to the deferred compensation trust fund; and
(3) the employee is required to promptly designate
another qualified investment product to receive the transferred
amount.
SECTION 3. Section 609.502, Government Code, is amended to
read as follows:
Sec. 609.502. CREATION OF PLAN; PARTICIPATION. (a) The
board of trustees of the Employees Retirement System of Texas is the
trustee and the plan administrator of a 401(k) plan and a 457 plan,
collectively known as the TexaSaver program, established under this
subchapter.
(b) [The board of trustees is the trustee and the plan
administrator of a 457 plan established under this subchapter.
[(c)] The board of trustees shall administer all aspects of
each plan.
(c) [(d)] The board of trustees may designate a person to
assist in the execution of the board's authority and
responsibilities as plan administrator.
(d) [(e)] A state agency may participate in either or both
plans.
SECTION 4. Section 609.505(a), Government Code, is amended
to read as follows:
(a) The board of trustees or a third party administrator
approved by the board, in accordance with rules adopted under this
subchapter, may contract with a vendor qualified to participate in
a deferred compensation plan.
SECTION 5. Section 609.508, Government Code, is amended to
read as follows:
Sec. 609.508. RULES. (a) The board of trustees may adopt
rules, including plans and procedures, and orders necessary to
carry out the purposes of this subchapter, including rules or
orders relating to:
(1) the selection and regulation of vendors for a
deferred compensation plan;
(2) the regulation of the practices of agents employed
by vendors and a participating employee's use and reimbursement of
investment advisors participating in the program;
(3) the disclosure of information concerning
investment products;
(4) the regulation of advertising materials to be used
by vendors;
(5) the submission of financial information by a
vendor; and
(6) the development of a system to facilitate
electronic authorization, distribution, transfer, and investment
of deferrals.
(b) The plan administrator of the TexaSaver 401(k) or the
TexaSaver 457 plan may adopt rules and procedures to allow a
participating employee, subject to applicable requirements of the
Internal Revenue Code of 1986, to obtain a loan from the employee's
account.
SECTION 6. Sections 609.512(a) and (b), Government Code,
are amended to read as follows:
(a) The TexaSaver 401(k) trust fund is in the state
treasury. The fund is for the benefit of the program described by
Section 609.001(10) [TexaSaver].
(b) The TexaSaver 457 [deferred compensation] trust fund is
in the state treasury. The fund is for the benefit of the program
described by Section 609.001(11) [deferred compensation plan
described by Section 609.502(b)].
SECTION 7. Section 615.023, Government Code, as amended by
Chapter 1231 and repealed by Chapter 1438, Acts of the 77th
Legislature, Regular Session, 2001, is reenacted to read as
follows:
Sec. 615.023. PAYMENT TO SURVIVING MINOR CHILD. (a) The
state shall pay to the duly appointed or qualified guardian or other
legal representative of an eligible surviving minor child:
(1) $200 each month, if there is one surviving child;
(2) $300 each month, if there are two surviving
children; or
(3) $400 each month, if there are three or more
surviving children.
(b) A child's entitlement to assistance payable under this
section ends on the child's 18th birthday. At that time, payments
to any other surviving minor children shall be adjusted, as
necessary, to conform to the amounts payable under Subsection (a).
(c) A payment under this section is in addition to any
payment made under Section 615.022.
SECTION 8. Section 615.045(a), Government Code, is amended
to read as follows:
(a) Records of individuals listed by Section 615.003 and of
survivors eligible for benefits under this chapter that are in the
custody of the Employees Retirement System of Texas or an [a
carrier,] administering firm as defined by Section 1551.003,
Insurance Code [the Texas Employees Uniform Group Insurance
Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code)], or
another [other] governmental agency acting with or on behalf of the
retirement system are confidential and [,] not subject to public
disclosure, and the retirement system is not required to accept or
comply with a request for a record or information about a record or
to seek an opinion from the attorney general, because the records
are exempt from the public information provisions of Chapter 552,
except as otherwise provided by this section.
SECTION 9. Section 659.102, Government Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) The supplemental optional benefits program may include
permanent life insurance, catastrophic illness insurance,
disability insurance, [or] prepaid legal services, or a qualified
transportation benefit.
(d) A qualified transportation benefit is a transportation
benefit meeting the requirements of Section 132(f), Internal
Revenue Code of 1986. The Employees Retirement System of Texas
shall determine a fee or charge that may be paid as a qualified
transportation benefit.
SECTION 10. Section 811.001(12), Government Code, is
amended to read as follows:
(12) "Occupational death or disability" means death or
disability from a sudden and unexpected [an] injury or disease that
[directly] results solely from a specific act or occurrence
determinable by a definite time and place[,] and solely [directly
results] from an extremely dangerous risk of severe physical or
mental trauma or disease that is not common to the public at large
and that is [a risk or a hazard] peculiar to and inherent in a
dangerous [a] duty that arises from the nature and in the course of
a person's state employment.
SECTION 11. Subchapter A, Chapter 811, Government Code, is
amended by adding Sections 811.007 and 811.008 to read as follows:
Sec. 811.007. IMMUNITY FROM LIABILITY. The board of
trustees, executive director, and employees of the retirement
system are not liable for any action taken or omission made or
suffered by them in good faith in the performance of any duty in
connection with any program or system administered by the
retirement system.
Sec. 811.008. INSURANCE. Notwithstanding any other law,
the board of trustees may self-insure or purchase any insurance in
amounts the board considers reasonable and prudent.
SECTION 12. Section 812.003(a), Government Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), membership in the
employee class of the retirement system includes all employees and
appointed officers of every department, commission, board, agency,
or institution of the state except:
(1) independent contractors and their employees
performing work for the state; and
(2) persons disqualified from membership under
Section 812.201[; and
[(3) persons disqualified from membership under
Section 812.004].
SECTION 13. Section 812.203, Government Code, is amended to
read as follows:
Sec. 812.203. BENEFITS AFFECTED. (a) [(c) Time during
which retirement benefit payments are suspended as provided by this
section does not reduce the number of months payments are to be made
under an optional benefit plan providing for a specific amount of
benefits for a guaranteed number of months after retirement.
[(d)] If a retiree takes the oath for a position included in
the elected class of membership, the retirement system shall
suspend annuity payments to the person for service that was
credited in that class, until the person no longer holds that
position.
(b) Time during which annuity payments are suspended as
provided by this section does not reduce the number of months
payments are to be made under an optional benefit selection
providing for a specific amount of benefits for a guaranteed number
of months after retirement.
(c) [(e)] If a member who originally retired with service
credited at the time of that retirement only in the elected class of
membership again retires, the person at the time of subsequent
retirement may select an annuity based on service in the elected
class as if the person were retiring for the first time. If the
person selects an annuity under Section 814.108(c)(3) or (c)(4),
the retirement system shall reduce the number of months of
guaranteed payment by the number of months for which an annuity was
paid under the person's original retirement.
SECTION 14. The heading of Section 813.104, Government
Code, is amended to read as follows:
Sec. 813.104. ALTERNATIVE PAYMENTS AND METHODS TO ESTABLISH
OR REESTABLISH SERVICE CREDIT.
SECTION 15. Section 813.104, Government Code, is amended by
adding Subsection (e) to read as follows:
(e) The retirement system may provide for the electronic
filing of agreements to establish or reestablish service credit.
In this subsection "electronic filing" has the meaning assigned by
Section 814.010(a).
SECTION 16. Subchapter A, Chapter 814, Government Code, is
amended by adding Section 814.010 to read as follows:
Sec. 814.010. ELECTRONIC FILING OF BENEFICIARY
DESIGNATION. (a) In this section, "electronic filing" means the
filing of data in the form of digital electronic signals
transformed by computer and stored on magnetic tape, optical disks,
or any other medium.
(b) A person entitled to designate a beneficiary under any
system or program administered by the retirement system may make
the designation by electronic filing under procedures adopted by
the retirement system.
SECTION 17. Section 814.104(b), Government Code, is amended
to read as follows:
(b) A member who is at least 55 years old and who has at
least 10 years of service credit as a commissioned peace officer
engaged in criminal law enforcement activities of the Department of
Public Safety, the Texas Alcoholic Beverage Commission, the State
Board of Pharmacy, or the Parks and Wildlife Department, [as an
employee of the Railroad Commission of Texas who is licensed by the
Commission on Law Enforcement Officer Standards and Education and
has served at least five years as an investigator for the oil field
theft detection division,] or as a custodial officer, is eligible
to retire and receive a service retirement annuity.
SECTION 18. Section 814.108(f), Government Code, is amended
to read as follows:
(f) The computation of an optional annuity must be made
without regard to the gender [sex] of the annuitant or designee
involved.
SECTION 19. Section 814.203, Government Code, is amended to
read as follows:
Sec. 814.203. CERTIFICATION OF DISABILITY. As soon as
practicable after an application for disability retirement is
filed, the medical board shall evaluate the medical and other
pertinent information regarding the member's application. If the
medical board finds that the member is mentally or physically
incapacitated for the further performance of duty and[,] that the
incapacity is likely to be permanent, [and that the member should be
retired,] the medical board shall issue a certification of
disability and submit it to the executive director.
SECTION 20. Sections 814.207(a) and (e), Government Code,
are amended to read as follows:
(a) An annuity payable for [because of] an occupational
disability resulting [that directly results] from a risk [or
hazard] to which law enforcement or custodial officers are exposed
because of the nature of law enforcement or custodial duties is
payable under the same terms and conditions that apply to other
occupational disability retirement annuities under this subtitle,
except that the source and amount of the annuity are as provided by
this section.
(e) If a retiring member or retiree under this section
presents evidence satisfactory to the retirement system that the
person's occupational disability [condition] makes the person
incapable of substantial gainful activity solely because of the
disability [occupation] and is considered a total disability under
federal social security law, the retirement system shall increase
the person's occupational disability retirement annuity to 100
percent of the officer's average monthly compensation.
SECTION 21. Section 814.603, Government Code, is amended to
read as follows:
Sec. 814.603. SUPPLEMENTAL PAYMENTS [ONE-TIME PAYMENT].
(a) The retirement system may [shall] make a supplemental payment
as provided by this section [Subsection (d)] to persons whose
annuities are described by Section 814.107, 814.207, 814.305, or
814.601(a) and that are based on service retirements, disability
retirements, or deaths. A [This] supplemental payment made under
this section is in addition to the regular monthly annuity payment.
[Each person who receives an annuity described by this subsection
is entitled to receive one payment equal to 10 percent of one
month's annuity payment for each fiscal year that preceded or
includes the effective date of the requirement or authorization
under Subsection (d) and in which the annuity has been paid. A
supplemental payment may not exceed 350 percent of a monthly
annuity.] Supplemental payments under this section [subsection]
must comply with Section 811.006.
(b) The board of trustees shall determine the amount and
timing of a supplemental payment and the manner in which the payment
is made.
(c) The retirement system shall pay any [the] supplemental
payment made under this section [provided by Subsection (a)] from
the retirement annuity reserve account and may transfer to that
account from the state accumulation account any portion of the
amount that exceeds the amount in the retirement annuity reserve
account available to finance this supplemental payment and that is
actuarially determined to be necessary to finance the supplemental
payment.
[(c) The board of trustees may adopt rules to implement the
payment, including rules that govern the timing of the supplemental
payment described by Subsection (a).
[(d) The retirement system shall make a supplemental
payment under this section in the fiscal year ending August 31,
1997. The board of trustees may by rule authorize similar
supplemental payments in succeeding fiscal years, if the payments
are in compliance with Section 811.006.]
SECTION 22. Section 815.008(c), Government Code, is amended
to read as follows:
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
presiding officer [chairman] of the board of the ground. The
presiding officer [chairman] shall then notify the appropriate
appointing officer, if any, that a potential ground for removal
exists.
SECTION 23. Section 815.103, Government Code, is amended by
adding Subsection (f) to read as follows:
(f) Chapter 412, Labor Code, does not apply to the
retirement system. The board of trustees may acquire services
described by that chapter in any manner or amount the board
considers reasonable.
SECTION 24. Section 815.201, Government Code, is amended to
read as follows:
Sec. 815.201. PRESIDING OFFICER [CHAIRMAN]. The board of
trustees shall elect a presiding officer from the membership
[chairman. The chairman must be a member] of the board.
SECTION 25. Section 815.202(c), Government Code, is amended
to read as follows:
(c) To be eligible to serve as the executive director, a
person must:
(1) be a citizen of the United States and have been a
resident [citizen] of the state for the three years immediately
preceding the person's appointment; and
(2) have executive ability and experience to carry out
the duties of the office.
SECTION 26. Section 815.207(b), Government Code, is amended
to read as follows:
(b) The comptroller shall pay money from the funds of the
retirement system on warrants drawn by the comptroller supported
only on vouchers signed by the executive director and the presiding
officer [chairman] of the board of trustees or their authorized
representatives.
SECTION 27. Section 815.307, Government Code, is amended to
read as follows:
Sec. 815.307. DUTY OF CARE. The assets of the retirement
system shall be invested and reinvested without distinction as to
their source in accordance with Section 67, Article XVI, Texas
Constitution. A determination of whether the board of trustees has
exercised prudence with respect to an investment decision must be
made taking into consideration the investment of all assets of the
trust or all assets of the collective investment vehicle, as
applicable, over which the board has management and control, rather
than considering the prudence of a single investment of the trust or
the collective investment vehicle, as applicable. [Investment
decisions are subject to the standard provided in the Texas Trust
Code by Section 113.056(a), Property Code.]
SECTION 28. Section 815.503(a), Government Code, is amended
to read as follows:
(a) Records of members, annuitants, retirees,
beneficiaries, and alternate payees under retirement plans
administered by the retirement system that are in the custody of the
system or of an administrator, carrier, or other governmental
agency acting in cooperation with or on behalf of the retirement
system are confidential and not subject to public disclosure, and
the retirement system is not required to accept or comply with a
request for a record or information about a record or to seek an
opinion from the attorney general, because the records are exempt
from the public access provisions of Chapter 552, except as
otherwise provided by this section.
SECTION 29. Section 815.511, Government Code, is amended to
read as follows:
Sec. 815.511. ADMINISTRATIVE DECISION; APPEAL AND
NEGOTIATION. (a) A person aggrieved by a decision of the
retirement system relating to any program or system administered by
the system under this code denying or limiting membership, service
credit, or eligibility for or the amount of benefits payable under
the program or system may appeal the decision to the board of
trustees.
(b) The executive director or the executive director's
designee may refer an appeal made under Subsection (a) to the State
Office of Administrative Hearings for a hearing or employ, select,
or contract for the services of an administrative law judge or
hearing examiner not affiliated with the State Office of
Administrative Hearings to conduct a hearing. This subsection
prevails over any other law to the extent of any conflict.
(c) An appeal under this section is considered to be a
contested case under Chapter 2001. The appellant in a contested
case under this section has the burden of proof on all issues,
including issues in the nature of an affirmative defense.
(d) The board of trustees may in its sole discretion make a
final decision on a contested case under this section.
Notwithstanding any other law, the [The] board of trustees may in
its sole discretion modify, refuse to accept, or delete any [a]
proposed finding of fact or conclusion of law contained in a
proposal for decision submitted by an administrative law judge or
other hearing examiner, or make alternative findings of fact and
conclusions of law, in a proceeding considered to be a contested
case under Chapter 2001. The board of trustees shall state in
writing the specific reason for its determination and may adopt
rules for the implementation of this subsection. The board of
trustees may delegate its authority under this subsection to the
executive director, and the executive director may delegate the
authority to another employee of the retirement system.
(e) Notwithstanding Subsections (c) and (d), the retirement
system and a person aggrieved by a decision of the system may at any
time informally negotiate an award of benefits. Negotiated
benefits may not exceed the maximum benefits otherwise available or
required by law.
(f) A person aggrieved by a final decision of the retirement
system in a contested case under this section is entitled to
judicial review under Chapter 2001. Venue of the appeal is only in
a district court in Travis County. [(b) A person aggrieved by a
decision of any retirement system administered by the board of
trustees denying or limiting membership, service credit, or
eligibility for or the amount of benefits payable by a system may
appeal the decision to the board. The appeal is considered to be an
appeal of a contested case under the administrative procedure law,
Chapter 2001.] On judicial appeal the standard of review is by
substantial evidence.
[(c) Notwithstanding Subsection (b), the retirement system
and a person aggrieved by a decision of the system may at any time
informally negotiate an award of benefits. Negotiated benefits may
not exceed the maximum benefits otherwise available or required by
law.
[(d) On behalf of the retirement system, the executive
director may refer an appeal made under Subsection (b) to the State
Office of Administrative Hearings for a hearing or, notwithstanding
Section 2003.021 or other law, employ or contract for the services
of an administrative law judge or hearing examiner not affiliated
with the State Office of Administrative Hearings to conduct the
hearing.]
SECTION 30. Section 838.103(b), Government Code, is amended
to read as follows:
(b) A member eligible to establish military service credit
is one who:
(1) [currently contributes to the retirement system;
[(2)] has at least eight years of service credit in the
retirement system;
(2) [(3)] does not receive and is not eligible to
receive federal retirement payments based on 20 years or more of
active federal military duty or its equivalent; and
(3) [(4)] has been released from military duty under
conditions not dishonorable.
SECTION 31. Section 838.106(a), Government Code, is amended
to read as follows:
(a) A [contributing] member may establish service credit in
the retirement system for any calendar year during which the
member:
(1) held an office included in the membership of the
retirement system; or
(2) was eligible to take the oath for an office
included in the membership of the retirement system.
SECTION 32. Section 840.303, Government Code, is amended to
read as follows:
Sec. 840.303. DUTY OF CARE. The assets of the retirement
system shall be invested and reinvested without distinction as to
their source in accordance with Section 67, Article XVI, Texas
Constitution. A determination of whether the board of trustees has
exercised prudence with respect to an investment decision must be
made taking into consideration the investment of all assets of the
trust or all assets of the collective investment vehicle, as
applicable, over which the board has management and control, rather
than considering the prudence of a single investment of the trust or
the collective investment vehicle, as applicable. [Investment
decisions are subject to the standard provided in the Texas Trust
Code by Section 113.056(a), Property Code.]
SECTION 33. Section 1551.063(a), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(a) The records of a participant in the group benefits
program in the custody of the board of trustees, or of an
administrator or carrier acting on behalf of the board, are
confidential and not subject to disclosure, and the board is not
required to accept or comply with a request for a record or
information about a record or to seek an opinion from the attorney
general, because the records [and] are exempt from the public
access provisions of Chapter 552, Government Code, except as
provided by this section.
SECTION 34. Section 1551.102(d), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(d) An individual is eligible to participate in the group
benefits program as provided by Subsection (a) if the individual:
(1) retires under the optional retirement program
established by Chapter 830, Government Code, with at least 10 years
of eligible service; and
(2) receives or is eligible to receive an annuity
under that program and the individual:
(A) would have been eligible to retire and
receive a service or disability retirement annuity from the Teacher
Retirement System of Texas or the Employees Retirement System of
Texas based on at least 10 years of service credit if the individual
had not elected to participate in the optional retirement program;
or
(B) is disabled as determined by the Employees
Retirement System of Texas.
SECTION 35. (a) Section 1551.205, Insurance Code, as
effective June 1, 2003, is amended to conform to Section 30, Chapter
1231, Acts of the 77th Legislature, Regular Session, 2001, and
further amended to read as follows:
Sec. 1551.205. LIMITATIONS. (a) The board of trustees may
not contract for or provide a coverage plan that:
(1) excludes or limits coverage or services for
acquired immune deficiency syndrome, as defined by the Centers for
Disease Control and Prevention of the United States Public Health
Service, or human immunodeficiency virus infection; or
(2) provides coverage for serious mental illness that
is less extensive than the minimum coverage [provided] for serious
mental [any physical] illness required by Section 3, Article
3.51-14.
(b) The board of trustees may not contract for or provide a
coverage plan that excludes from participation in the network a
general hospital that:
(1) is located in a county, all or part of which is
located within the geographical service area of the health coverage
plan, in which at least two, but not more than four, general
hospitals are located; and
(2) agrees to provide medical and health care services
under the plan subject to the same terms and conditions as other
hospital providers under the plan.
(b) Section 30, Chapter 1231, Acts of the 77th Legislature,
Regular Session, 2001, is repealed.
SECTION 36. Section 1551.209, Insurance Code, as effective
June 1, 2003, is amended to read as follows:
Sec. 1551.209. [SELF-FUNDED] COVERAGE EXEMPT FROM
INSURANCE LAW. A coverage plan provided [for which the board of
trustees does not purchase coverage but provides] under this
chapter [on a self-funded basis] is exempt from any other insurance
law, including common law, that does not expressly apply to the plan
or this chapter.
SECTION 37. Section 1551.351(d), Insurance Code, as
effective June 1, 2003, is amended to conform to Section 33, Chapter
1231, Acts of the 77th Legislature, Regular Session, 2001, and
further amended to read as follows:
(d) A person may appeal a determination made under
Subsection (a) or (b) or Section 1551.352 only to the board of
trustees. A proceeding under this subsection is a contested case
under Chapter 2001, Government Code. This subchapter applies to an
appeal to the board of trustees under this subsection. The
appellant has the burden of proof on all issues, including issues in
the nature of an affirmative defense, and any sanction imposed is
stayed during an appeal under this subsection. If a person fails to
make a timely appeal, any sanction relates back to the date of the
Employees Retirement System of Texas' determination. An appeal of
a decision of the board of trustees under this subsection is under
the substantial evidence rule.
SECTION 38. Section 1551.355(b), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(b) On behalf of the board of trustees and notwithstanding
any other law, including Section 2003.021, Government Code, the
executive director may:
(1) refer an appeal to the State Office of
Administrative Hearings for a hearing; or
(2) [notwithstanding any other law, including Section
2003.021, Government Code,] employ, select, or contract for the
services of an administrative law judge or other hearing examiner
not affiliated with the State Office of Administrative Hearings to
conduct the hearing of an appeal.
SECTION 39. Section 1551.356, Insurance Code, as effective
June 1, 2003, is amended to conform to Section 29, Chapter 1231,
Acts of the 77th Legislature, Regular Session, 2001, and further
amended to read as follows:
Sec. 1551.356. STANDING. (a) A person has standing to
appeal a determination of the executive director under this
subchapter only if the person is:
(1) an employee, participant, annuitant, or covered
dependent participating in the group benefits program; or
(2) after the death of an employee, participant,
annuitant, or covered dependent, the person's estate, personal
representative, heir at law, or designated beneficiary.
(b) A person has no standing to appeal a determination of
the executive director under this subchapter or to pursue a private
cause of action against the state, the board of trustees, the
retirement system, the executive director, an administering firm,
or an employee of any of those persons based on a determination or
the implementation by the board or executive director of the type or
scope of plan design features under the group benefits program.
SECTION 40. Section 1551.357, Insurance Code, as effective
June 1, 2003, is amended by amending Subsection (a) and adding
Subsection (d) to read as follows:
(a) Notwithstanding any other law, in [In] a proceeding
considered to be a contested case under Chapter 2001, Government
Code, the board of trustees in its sole discretion may modify,
refuse to accept, or delete any [a] proposed finding of fact or
conclusion of law contained in a proposal for decision submitted by
an administrative law judge or other hearing examiner, or make
alternative findings of fact and conclusions of law.
(d) The appellant in a contested case under this subchapter
has the burden of proof on all issues, including issues in the
nature of an affirmative defense.
SECTION 41. Section 1551.359, Insurance Code, as effective
June 1, 2003, is amended to read as follows:
Sec. 1551.359. JUDICIAL REVIEW [STANDARD OF REVIEW OF
DETERMINATION OF BOARD OF TRUSTEES]. A person aggrieved by a final
decision of the Employees Retirement System of Texas in a contested
case under this subchapter is entitled to judicial review of the
decision. Venue of an appeal under this subchapter is only in a
district court in Travis County. The standard of review for the
appeal of a determination made by the board of trustees under this
subchapter is by substantial evidence.
SECTION 42. (a) The change in law made by this Act to
Section 1551.102(d), Insurance Code, applies only to a person who
was not participating in the program provided by Chapter 1551,
Insurance Code, as an annuitant on the effective date of this Act.
(b) The changes in law made by this Act to Section 815.511,
Government Code, and Sections 1551.355 and 1551.357, Insurance
Code, as effective June 1, 2003, prevail over any other Act of the
78th Legislature, Regular Session, 2003, regardless of the relative
dates of enactment, that purports to deprive the Employees
Retirement System of Texas of the powers described by Section
815.511, Government Code, or Section 1551.355 or 1551.357,
Insurance Code, and to that extent that other Act has no effect.
(c) The changes in law made by this Act to Section 815.511,
Government Code, and Section 1551.359, Insurance Code, prevail over
any other Act of the 78th Legislature, Regular Session, 2003,
regardless of the relative dates of enactment, that purports to
establish venue for judicial review of a final decision in a
contested case by the Board of Trustees of the Employees Retirement
System of Texas, and to that extent that other Act has no effect.
(d) The change in law made by this Act to Section
811.001(12), Government Code, applies only to an application for
occupational disability retirement filed with the Employees
Retirement System of Texas on or after the effective date of this
Act. A person who filed an application for occupational disability
retirement before the effective date of this Act is subject to the
law as it existed immediately before the effective date of this Act,
and the former law is continued in effect for this purpose.
SECTION 43. The following laws are repealed:
(1) Section 609.515, Government Code;
(2) Section 805.002(e), Government Code;
(3) Section 812.004, Government Code;
(4) Section 813.504(b), Government Code;
(5) Section 814.1041, Government Code;
(6) Section 815.211, Government Code;
(7) Section 815.502, Government Code;
(8) Section 840.210, Government Code;
(9) Section 1551.054, Insurance Code, as effective
June 1, 2003; and
(10) Section 3(b), Chapter 22, Acts of the 57th
Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
Texas Civil Statutes).
SECTION 44. To the extent of any conflict, this Act prevails
over another Act of the 78th Legislature, Regular Session, 2003,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 45. This Act takes effect September 1, 2003.
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