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                                                                  H.R. No. 1937



R E S O L U T I O N
	BE IT RESOLVED by the House of Representatives of the State of 
Texas, 78th Legislature, Regular Session, 2003, That House Rule 13, 
Section 9(a), be suspended in part as provided by House Rule 13, 
Section 9(f), to enable the conference committee appointed to 
resolve the differences on House Bill 2359, relating to the 
programs and systems administered by the Employees Retirement 
System of Texas, to consider and take action on the following 
matter:
	House Rule 13, Section 9(a)(4), is suspended to permit the 
committee to add the following new sections to the bill to read as 
follows:
	SECTION ___.  Section 812.003, Government Code, is amended by 
amending Subsection (d) and adding Subsections (e) through (h) to 
read as follows:
	(d)  For persons whose employment or office holding begins on 
or after September 1, 2005, membership [Membership] in the employee 
class begins on the first day the [a] person is employed or holds 
office.
	(e)  For persons whose employment or office holding begins 
before September 1, 2005, membership in the employee class begins 
on the 91st day after the first day a person is employed or holds 
office.
	(f)  A person who is reemployed or who again holds office 
after withdrawing contributions under Subchapter B for previous 
service credited in the employee class begins membership in the 
employee class on the 91st day after the first day the person is 
reemployed or again holds office.
	(g)  Notwithstanding any other provision of law, a member may 
establish service credit only as provided by Section 813.514 for 
service performed during the 90-day waiting period provided by 
Subsection (e) or (f).
	(h)  Subsections (e), (f), and (g) and this subsection expire 
September 1, 2005.
	SECTION ___.  Subchapter F, Chapter 813, Government Code, is 
amended by adding Section 813.514 to read as follows:
	Sec. 813.514.  CREDIT PURCHASE OPTION FOR CERTAIN SERVICE.  
(a)  A member may establish service credit under this section in the 
employee class only for service performed during a 90-day waiting 
period to become a member after beginning employment or holding 
office.
	(b)  A member may establish service credit under this section 
by depositing with the retirement system, for each month of service 
credit, the actuarial present value, at the time of deposit, of the 
additional standard retirement annuity benefits that would be 
attributable to the purchase of the service credit under this 
section based on rates and tables recommended by the retirement 
system's actuary and adopted by the board of trustees.
	(c)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one month of 
equivalent membership service credit for each month of credit 
approved.  A member may establish not more than three months of 
equivalent membership service credit under this section.
	(d)  The retirement system shall deposit the amount of the 
actuarial present value of the service credit purchased in the 
member's individual account in the employees saving account.
	(e)  The board of trustees may adopt rules to administer this 
section, including rules that impose restrictions on the 
application of this section as necessary to cost-effectively 
administer this section.
	SECTION ___.  Section 812.003, Government Code, as amended 
by this Act, and Section 813.514, Government Code, as added by this 
Act, apply only to a person who is first employed by or begins to 
hold an office of the state on or after the effective date of this 
Act and to a former employee or office holder who has withdrawn 
retirement contributions under Subchapter B, Chapter 812, 
Government Code, and is reemployed by or begins to again hold an 
office of the state on or after the effective date of this Act.
	Explanation:  The added text is needed to provide that a new 
state employee or a reemployed state employee who has withdrawn 
contributions for previous service does not begin to receive 
service credit until the 91st day of employment.  Such employees 
have the option to purchase service credit for the 90-day period at 
the actuarial value.  This is a temporary change that expires 
September 1, 2005.

                                                                          Ritter

                                                  ______________________________
                                                       Speaker of the House     

	I certify that H.R. No. 1937 was adopted by the House on June 
1, 2003, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House