BILL ANALYSIS
By: McClendon
BACKGROUND AND PURPOSE
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 always increasing and families often end up spending more money at these times than they expected or can afford. Many people may also have spent a large amount of money during a protracted sickness or on hospital bills. They may not have much money remaining for funeral expenses and either do not have a sufficient amount of money on hand or easy access to money. The spouse or other beneficiary of a former state employee would benefit from an expedited death benefit to help cover the expenses of a funeral. House Bill 70 provides for the payment of a $5,000 lump-sum death benefit within seven days of a death.
RULEMAKING AUTHORITY
It is the opinion of the committee that this bill grants rulemaking authority to the board of trustees of the Employees Retirement System of Texas in Section 1 and 2 of the bill.
ANALYSIS
House Bill 70 amends the Government Code to require the board of trustees of the Employees Retirement System of Texas by rule to adopt procedures to provide for the payment of a $5,000 lump-sum death benefit not later than the seventh day after the date the board receives the required proof of death. Section 2 of the bill serves as transition language for the adoption of the rules set forth in section 1.
EFFECTIVE DATE
On passage or, if the Act does not receive the necessary vote, September 1, 2005.