BILL ANALYSIS

Senate Research Center                                                                                                         H.B. 70

79R441 RCJ-D                                                                                    By: McClendon (Wentworth)

State Affairs

4/29/2005

Engrossed

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

When a person dies, the surviving family members not only have to deal with their grief but also funeral and travel arrangements, inheritance issues, and other financial concerns.  The cost of funerals is increasing and families often spend more money at these times than they expected or can afford to do.  Many people also may spend a significant amount of money on illness or hospital expenses and may not have much money remaining for funeral expenses.

The spouse or other beneficiary of a former state employee would benefit from an expedited death benefit to health cover funeral expenses.

H.B. 70 requires the board of trustees (board) of the Employee Retirement System to adopt procedures to provide payment of the death benefit within seven days of the date the board receives the required proof of death.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of trustees of the Employee Retirement System of Texas in SECTION 1 (Sec. 814.501, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 814.501(a), Government Code, by requiring the board of trustees (board) of the Employee Retirement System of Texas to adopt procedures, by rule, to provide for the payment of a certain lump-sum death benefit by a certain date.

SECTION 2.  Requires the board to adopt the rules required by Section 814.501(a), Government Code, as amended by this Act, not later than November 1, 2005.

SECTION 3.  Effective date: upon passage or September 1, 2005.