Amend SB 1671 (senate committee printing) by striking all below the enacting clause and substituting the following:

SECTION 1.  Subsection (i), Section 411.081, Government Code, as amended by Chapters 183 (H.B. 1830), 780 (S.B. 1056), 816 (S.B. 1599), and 1027 (H.B. 4343), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows:

(i)  A criminal justice agency may disclose criminal history record information that is the subject of an order of nondisclosure under Subsection (d) to the following noncriminal justice agencies or entities only:

(1)  the State Board for Educator Certification;

(2)  a school district, charter school, private school, regional education service center, commercial transportation company, or education shared service arrangement;

(3)  the Texas Medical Board;

(4)  the Texas School for the Blind and Visually Impaired;

(5)  the Board of Law Examiners;

(6)  the State Bar of Texas;

(7)  a district court regarding a petition for name change under Subchapter B, Chapter 45, Family Code;

(8)  the Texas School for the Deaf;

(9)  the Department of Family and Protective Services;

(10)  the Texas Youth Commission;

(11)  the Department of Assistive and Rehabilitative Services;

(12)  the Department of State Health Services, a local mental health service, a local mental retardation authority, or a community center providing services to persons with mental illness or retardation;

(13)  the Texas Private Security Board;

(14)  a municipal or volunteer fire department;

(15)  the Texas Board of Nursing;

(16)  a safe house providing shelter to children in harmful situations;

(17)  a public or nonprofit hospital or hospital district;

(18)  the Texas Juvenile Probation Commission;

(19)  the securities commissioner, the banking commissioner, the savings and mortgage lending commissioner, or the credit union commissioner;

(20)  the Texas State Board of Public Accountancy;

(21)  the Texas Department of Licensing and Regulation;

(22)  the Health and Human Services Commission;

(23)  the Department of Aging and Disability Services;

(24)  the Texas Education Agency; [and]

(25)  the Guardianship Certification Board; [and]

(26)  a county clerk's office in relation to a proceeding for the appointment of a guardian under Chapter XIII, Texas Probate Code;

(27) [(25)]  the Department of Information Resources but only regarding an employee, applicant for employment, contractor, subcontractor, intern, or volunteer who provides network security services under Chapter 2059 to:

(A)  the Department of Information Resources; or

(B)  a contractor or subcontractor of the Department of Information Resources;

(28) [(25)]  the Court Reporters Certification Board; [and]

(29) [(25)]  the Texas Department of Insurance; and

(30)  the Teacher Retirement System of Texas.

SECTION 2.  Subchapter F, Chapter 411, Government Code, is amended by adding Section 411.0971 to read as follows:

SECTION 3.  Subchapter F, Chapter 551, Government Code, is amended by adding Section 551.130 to read as follows:

SECTION 4.  Subchapter C, Chapter 552, Government Code, is amended by adding Section 552.153 to read as follows:

SECTION 5.  Section 804.003, Government Code, is amended by amending Subsections (f) and (g) and adding Subsection (p) to read as follows:

(f)  A domestic relations order is a qualified domestic relations order only if such order:

(1)  clearly specifies the:

(A)  name[, social security number,] and last known mailing address[, if any,] of:

(i)  the member or retiree; and

(ii)  [the name, social security number, and mailing address of] each alternate payee covered by the order; and

(2)  clearly specifies the amount or percentage of the member's or retiree's benefits to be paid by a public retirement system to each such alternate payee or the manner in which such amount or percentage is to be determined;

(3)  clearly specifies the number of payments or the period to which such order applies;

(4)  clearly specifies that such order applies to a designated public retirement system;

(5)  does not require the public retirement system to provide any type or form of benefit or any option not otherwise provided under the plan;

(6)  does not require the public retirement system to provide increased benefits determined on the basis of actuarial value;

(7)  does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order; and

(8)  does not require the payment of benefits to an alternate payee before the retirement of a member, the distribution of a withdrawal of contributions to a member, or other distribution to a member required by law.

(g)  A public retirement system may reject a domestic relations order as a qualified domestic relations order unless the order:

(1)  provides for a proportional reduction of the amount awarded to an alternate payee in the event of the retirement of the member before normal retirement age;

(2)  does not purport to require the designation of a particular person as the recipient of benefits in the event of a member's or annuitant's death;

(3)  does not purport to require the selection of a particular benefit payment plan or option;

(4)  provides clearly for each possible benefit distribution under plan provisions;

(5)  does not require any action on the part of the retirement system contrary to its governing statutes or plan provision other than the direct payment of the benefit awarded to an alternate payee;

(6)  does not make the award of an interest contingent on any condition other than those conditions resulting in the liability of a retirement system for payments under its plan provisions;

(7)  does not purport to award any future benefit increases that are provided or required by the legislature; [and]

(8)  provides for a proportional reduction of the amount awarded to an alternate payee in the event that benefits available to the retiree or member are reduced by law; and

(9)  if required by the retirement system, conforms to a model order adopted by the retirement system.

SECTION 6.  Subdivision (15), Section 821.001, Government Code, is amended to read as follows:

(15)  "School year" means[:

[(A)] a 12-month period beginning [approximately] September 1 and ending [approximately] August 31 of the next calendar year[; or

[(B) for a member whose contract or oral or written work agreement begins after June 30 and continues after August 31 of the same calendar year, a period not to include more than 12 months beginning on the date the contract or agreement begins].

SECTION 7.  Section 821.008, Government Code, is amended to read as follows:

Sec. 821.008.  PURPOSE OF RETIREMENT SYSTEM. (a)  The purpose of the retirement system is to invest and protect funds of the retirement system and to deliver the benefits provided by statute, not to advocate or influence legislative action or inaction or to advocate higher benefits.

SECTION 8.  Section 823.002, Government Code, is amended by adding Subsection (b) to read as follows:

SECTION 9.  The heading to Section 823.304, Government Code, is amended to read as follows:

Sec. 823.304.  USERRA [REEMPLOYED VETERAN'S] CREDIT.

SECTION 10.  Subsections (a), (c), and (d), Section 823.304, Government Code, are amended to read as follows:

(a)  A person eligible to establish USERRA [reemployed veteran's] credit is one who qualifies under the Uniformed Services Employment and [Veteran's] Reemployment Rights Act of 1994, 38 U.S.C. Section 4301 [2021] et seq., for the benefits of reemployment in a position included within the membership of the retirement system and who is entitled under that Act to additional credit and benefits from the retirement system because of the person's active duty in the armed forces of the United States.

(c)  A person may establish credit under this section by depositing with the retirement system for each year of service claimed an amount equal to[:

[(1)]  the member contributions to the retirement system, as determined by the retirement system, that the person would have made had the person continued to be employed in the person's former position covered by the retirement system during the entire period of active duty in the armed forces for which the person is to receive retirement credit[; and

[(2)     a fee of five percent, compounded annually, of the required contribution from the date of the person's first eligibility to establish the credit to the date of deposit].

(d)  To the extent required by the Uniformed Services Employment and [Veteran's] Reemployment Rights Act of 1994 and permitted by Sections 401(a) and 415 of the Internal Revenue Code of 1986 (26 U.S.C. Sections 401 and 415), the retirement system may:

(1)  grant the person service credit for the period of active duty in the armed forces as if the person had been employed in a position eligible for membership and credit with the retirement system if the person establishes credit by making the required deposits, or, if the person has not made the required deposits, consider the period of active duty for the purpose of determining whether the person meets the length-of-service eligibility requirements for retirement or other benefits administered by the retirement system as if the person had established the credit; and

(2)  include in relevant benefit computations under this subtitle the annual compensation, as determined by the retirement system, that would have been otherwise received by the person for service covered by the retirement system during any year in which the person had active duty in the armed forces.

SECTION 11.  Subsection (c), Section 823.401, Government Code, is amended to read as follows:

(c)  A member eligible to establish credit under this section is one who has at least five years of service credit in the retirement system for actual service in public schools, including at least one year completed after the relevant out-of-state service.

SECTION 12.  Subsections (c), (d), and (e), Section 823.402, Government Code, are amended to read as follows:

(c)  A member eligible to establish credit under this section is one who:

(1)  has at least five years of service credited [credit] in the retirement system before the developmental leave occurs; [and]

(2)  has, [is an employee of a public school] at the time the required deposits for the credit are paid, at least one year of membership service credit in the retirement system following the developmental leave; and

(3)  has at least five years of service credited in the retirement system at the time the required deposits for the credit are paid [is sought].

(d)  On or before the date a member takes developmental leave, the member must [shall] file with the retirement system a notice of intent to take developmental leave, and the member's employer must [shall] file with the retirement system a certification that the leave meets the requirements of Subsection (b). The notice of intent and the certification must be in the form required by the retirement system. Leave is not creditable in the retirement system if the member does not submit notice of intent and obtain the certification required by this subsection.

(e)  A member may establish credit under this section by depositing with the retirement system for each year of developmental leave certified 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 [claimed an amount equal to the sum of:

[(1)     the rate of member contributions required during the year of leave, times the member's annual rate of compensation during the member's most recent year of creditable service that preceded the year of leave; plus

[(2)     the amount that the state would have contributed had the member performed membership service during the year of leave at the member's annual rate of compensation during the most recent year of service that preceded the leave].

SECTION 13.  Subsection (c), Section 823.501, Government Code, is amended to read as follows:

(c)  A member may reinstate canceled credit under this section by depositing with the retirement system:

(1)  the amount withdrawn or refunded; plus

(2)  a reinstatement fee of eight [six] percent, compounded annually, of the amount withdrawn or refunded from the date of withdrawal or refund to the date of redeposit.

SECTION 14.  Subchapter A, Chapter 824, Government Code, is amended by adding Section 824.008 to read as follows:

SECTION 15.  Section 824.1013, Government Code, is amended by adding Subsection (c-1) to read as follows:

SECTION 16.  Subsection (a), Section 824.103, Government Code, is amended to read as follows:

(a)  Benefits payable on the death of a member or annuitant, except an optional retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5), are payable, and rights to elect survivor benefits, if applicable, are available, to one of the classes of persons described in Subsection (b), if:

(1)  the member or annuitant fails to designate a beneficiary before death;

(2)  a designated beneficiary does not survive the member or annuitant; [or]

(3)  a designated beneficiary, under Section 824.004, waives claims to benefits payable on the death of the member or annuitant;

(5)  a person is not eligible to receive a benefit under Section 824.105.

SECTION 17.  Section 824.105, Government Code, is amended by amending Subsections (a), (c), and (d) and adding Subsection (f) to read as follows:

(a)  A benefit payable on the death of a member or annuitant may not be paid to a person who has been convicted of causing that death or who is otherwise ineligible under Subsection (f) but instead is payable to a person who would be entitled to the benefit had the convicted or otherwise ineligible person predeceased the decedent.

(c)  The retirement system shall reduce any annuity computed in part on the age of the convicted or otherwise ineligible person to a lump sum equal to the present value of the remainder of the annuity. The reduced amount is payable to a person entitled as provided by this section to receive the benefit.

(d)  The retirement system is not required to pay benefits under this section unless it receives actual notice of the conviction or other ground of ineligibility of a beneficiary. However, the retirement system may delay payment of a benefit payable on the death of a member or annuitant pending the results of a criminal investigation and of legal proceedings relating to the cause of death.

SECTION 18.  Subsections (a-1) and (b-1), Section 824.202, Government Code, are amended to read as follows:

(a-1)  This subsection applies only to a person who becomes a member of the retirement system on or after September 1, 2007 [2006]. A member subject to this subsection is eligible to retire and receive a standard service retirement annuity if:

(1)  the member is at least 65 years old and has at least five years of service credit in the retirement system; or

(2)  the member is at least 60 years old and has at least five years of service credit in the retirement system and the sum of the member's age and amount of service credit in the retirement system equals the number 80.

(b-1)  This subsection applies only to a person who becomes a member of the retirement system on or after September 1, 2007 [2006]. If a member subject to this subsection is at least 55 years old and has at least five years of service credit in the retirement system, but does not meet the requirements under Subsection (d-1), the member is eligible to retire and receive a service retirement annuity reduced from the standard service retirement annuity available under Subsection (a-1)(1), to a percentage derived from the following table:

SECTION 19.  Section 824.405, Government Code, is amended to read as follows:

Sec. 824.405.  TABLES FOR DETERMINATION OF DEATH BENEFIT ANNUITY. For the purpose of computing a death benefit annuity under Section 824.402(a)(4) or Section 824.403, the board of trustees shall extend the tables[:

[(1)]  in Section 824.202 [824.202(b) or (b-1), as applicable,] to ages earlier than indicated in the tables [55 years] by actuarially reducing the benefit available under the applicable table [at the age of 55 years] to the actuarial equivalent at the attained age of the member [beneficiary; and

[(2)     in Section 824.202(b) or (d-1), as applicable, to ages earlier than the earliest retirement age by actuarially reducing the benefit available at the earliest retirement age to the actuarial equivalent at the attained age of the beneficiary].

SECTION 20.  Section 824.601, Government Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b)  Except as provided by Subsection (b-1) or 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.

SECTION 21.  Subsection (a), Section 824.602, Government Code, as amended by Chapters 674 (S.B. 132) and 1359 (S.B. 1691), Acts of the 79th Legislature, Regular Session, 2005, is reenacted and amended to read as follows:

(a)  Subject to Section 825.506, the retirement system may not, under Section 824.601, withhold a monthly benefit payment if the retiree is employed in a Texas public educational institution:

(1)  as a substitute only with pay not more than the daily rate of substitute pay established by the employer and, if the retiree is a disability retiree, the employment has not exceeded a total of 90 days in the school year;

(2)  in a position, other than as a substitute, on no more than a one-half time basis for the month;

(3)  in one or more positions on as much as a full-time basis, if the retiree has been separated from service with all Texas public educational institutions for at least 12 full consecutive months [work occurs in not more than six months of a school year that begins] after the retiree's effective date of retirement; or

(4)  in a position, other than as a substitute, on no more than a one-half time basis for no more than 90 days in the school year, if the retiree is a disability retiree[;

[(5)     in a position as a classroom teacher on as much as a full-time basis, if the retiree has retired under Section 824.202(a) or (a-1), is certified under Subchapter B, Chapter 21, Education Code, to teach the subjects assigned, is teaching in an acute shortage area as determined by the board of trustees of a school district as provided by Subsection (m), and has been separated from service with all public schools for at least 12 months;

[(6)     in a position as a principal, including as an assistant principal, on as much as a full-time basis, if the retiree has retired under Section 824.202(a) or (a-1) without reduction for retirement at an early age, is certified under Subchapter B, Chapter 21, Education Code, to serve as a principal, and has been separated from service with all public schools for at least 12 months;

[(7)     as a bus driver for a school district on as much as a full-time basis, if the retiree has retired under Section 824.202(a) or (a-1), and the retiree's primary employment is as a bus driver; or

[(8)     as a faculty member, during the period beginning with the 2005 fall semester and ending on the last day of the 2015 spring semester, in an undergraduate professional nursing program or graduate professional nursing program, as defined by Section 54.221, Education Code, and if the retiree has been separated from service with all public schools for at least 12 months].

SECTION 22.  Subsection (g), Section 824.602, Government Code, is amended to read as follows:

(g)  The exceptions provided by Subsections (a)(2) and (a)(3) do not apply to disability retirees. The retirement system nevertheless may not withhold a monthly benefit payment under Section 824.601 if:

(1)  a disability retiree is employed in a Texas public educational institution in a position, other than as a substitute, for a period not to exceed three consecutive months [of the school year];

(2)  the work occurs in a period, designated by the disability retiree, of no more than three consecutive months [of a school year];

(3)  the disability retiree executes on a form and at a time prescribed by the retirement system a written election to have this exception apply on a one-time trial basis in determining whether benefits are to be suspended for the months of employment after retirement and in determining whether a disability retiree is no longer mentally or physically incapacitated for the performance of duty; and

(4)  the disability retiree has not previously elected to avoid loss of monthly benefits [in a school year] under this subsection.

SECTION 23.  Section 824.603, Government Code, is amended to read as follows:

Sec. 824.603.  EXCLUSION FROM CREDIT. Employment of a retiree described by Section 824.601(b-1) or 824.602(a) does not entitle the [a] retiree to additional service credit, and the retiree so employed is not required to make contributions to the system from compensation for that employment.

SECTION 24.  Section 825.002, Government Code, is amended by amending Subsections (f) and (g) and adding Subsection (h) to read as follows:

(f)  Persons considered for nomination under Subsection (c), (d), or (e) must have been nominated [by written ballot] at an election conducted under rules adopted by the board of trustees.

(g)  To provide for the nomination of persons for appointment under Subsection (d), the board shall send to each retiree of the retirement system:

(1)  notice of the deadline for filing as a candidate for nomination;

(2)  information on procedures to follow in filing as a candidate; and

(3)  instructions on how to request a paper ballot or vote in another manner established by the board, including by telephone or other electronic means [a written ballot].

SECTION 25.  Subsection (c), Section 825.206, Government Code, is amended to read as follows:

(c)  The board of trustees annually shall evaluate the performance of the actuary during the previous year. At least once every four [three] years, the board shall redesignate its actuary after advertising for and reviewing proposals from providers of actuarial services.

SECTION 26.  Section 825.215, Government Code, is amended to read as follows:

Sec. 825.215.  ADVOCACY PROHIBITED. (a)  An employee of the retirement system may not advocate increased benefits or engage in activities to advocate or influence legislative action or inaction. Advocacy or activity of this nature is grounds for dismissal of an employee.

SECTION 27.  Section 825.315, Government Code, is amended to read as follows:

Sec. 825.315.  PROHIBITED USE OF ASSETS. (a)  Assets of the retirement system may not be used to advocate or influence the outcome of an election or the passage or defeat of any legislative measure. This prohibition may not be construed to prevent any trustee or employee from furnishing information in the hands of the trustee or employee that is not considered confidential under law to a member or committee of the legislature, to any other state officer or employee, or to any private citizen, at the request of the person or entity to whom the information is furnished. This prohibition does not apply to the incidental use of retirement system facilities by groups of members or retirees or by officers or employees of state agencies.

SECTION 28.  Subsections (h) and (j), Section 825.403, Government Code, are amended to read as follows:

(h)  If deductions were previously required but not paid, the retirement system may not provide benefits based on the service or compensation unless the deposits required by this section have been fully paid. The person's employer at the time the unreported service was rendered or compensation was paid must verify the service or compensation as required by Subsection (j) and the person must submit the verification to the retirement system not later than five years after [member shall pay the amount of those deductions plus a fee computed at a rate of five percent a year on the unpaid amount from] the end of the school year in which the service was rendered or compensation was paid. To establish the service or compensation credit, the person must deposit with the retirement system the actuarial present value, at the time of deposit, of the additional standard retirement annuity benefits that would be attributable to the purchase of service or compensation credit under this section, based on rates and tables recommended by the retirement system's actuary and adopted by the board of trustees [deductions first became due or the end of the 1974-75 school year, whichever is later, to the date of payment]. The board of trustees shall:

(1)  prescribe terms for payments under this subsection; and

(2)  credit the person [member] for prior service to which the person [member] is entitled under this subtitle[; and

[(3)     deposit the fee required by this subsection in the state contribution account].

(j)  If deductions were previously required [of a member] but not paid, proof of service satisfactory to the retirement system must be made before service credit is granted or payment for the credit is required. Proof of service is sufficient if the person's [member's] employer documents that the employer has records made at or near the time of service that establish the amount of time worked and salary earned. [A member may submit in lieu of employer documentation internal revenue, social security, bank, or other written records that were made at or near the time of service and that establish the amount of time worked and salary earned.] An affidavit based on memory without written records made at or near the time of service is not sufficient documentation for the establishment of service credit. The retirement system may audit records used for documentation under this subsection. A person who does not obtain proof of service as required by this section may not establish the service or compensation credit.

SECTION 29.  Section 825.408, Government Code, is amended to read as follows:

Sec. 825.408.  INTEREST ON CONTRIBUTIONS AND FEES; DEPOSITS IN TRUST. (a)  An employer [employing district] that fails to remit, before the seventh day after the last day of a month, all member and employer deposits and documentation of the deposits required by this subchapter to be remitted by the employer [district] for the month shall pay to the retirement system, in addition to the deposits, interest on the unpaid or undocumented amounts at an annual rate compounded monthly. The rate of interest is the rate established under Section 825.313(b)(1), plus two percent. Interest required under this section is creditable to the interest account. On request, the retirement system may grant a waiver of the deadline imposed by this subsection based on an employer's [a district's] financial or technological resources.

(b)  An employer [employing district] and its trustees or other governing body hold amounts due to the retirement system under this subtitle in trust for the retirement system and its members and may not divert the amounts to any other purpose.

SECTION 30.  Subsection (b), Section 825.507, Government Code, is amended to read as follows:

(b)  The retirement system may release records of a participant, including a participant to which Chapter 803 applies, to:

(1)  the participant or the participant's attorney or guardian or another person who the executive director determines is acting on behalf of the participant;

(2)  the executor or administrator of the deceased participant's estate, including information relating to the deceased participant's beneficiary, or if an executor or administrator of the deceased participant's estate has not been named, a person or entity who the executive director determines is acting in the interest of the deceased participant's estate, or an heir, legatee, or devisee of the deceased participant;

(3)  a spouse or former spouse of the participant if the executive director determines that the information is relevant to the spouse's or former spouse's interest in member accounts, benefits, or other amounts payable by the retirement system;

(4)  an administrator, carrier, consultant, attorney, or agent acting on behalf of the retirement system;

(5)  a governmental entity, an employer, or the designated agent of an employer, only to the extent the retirement system needs to share the information to perform the purposes of the retirement system, as determined by the executive director;

(6)  a person authorized by the participant in writing to receive the information;

(7)  a federal, state, or local criminal law enforcement agency that requests a record for a law enforcement purpose;

(8)  the attorney general to the extent necessary to enforce child support; or

(9)  a party in response to a subpoena issued under applicable law if the executive director determines that the participant will have a reasonable opportunity to contest the subpoena.

SECTION 31.  Subsection (a), Section 825.515, Government Code, is amended to read as follows:

(a)  At least annually, the retirement system shall acquire and maintain records identifying members and the types of positions they hold as members. The type of position shall be identified as Administrative/Professional, Teacher/Full-Time Librarian, Support, [or] Bus Driver, or Peace Officer. For each member identified as a Peace Officer, the records must specify whether the member is an employee of an institution of higher education or of a public school that is not an institution of higher education. An employer shall provide the information required by this section in the form and manner specified by the retirement system.

SECTION 32.  Subdivision (1), Section 1575.003, Insurance Code, is amended to read as follows:

(1)  "Dependent" means:

(A)  the spouse of a retiree;

(B)  an unmarried child of a retiree or deceased active member if the child is younger than 25 years of age, including:

(i)  an adopted child;

(ii)  a foster child, stepchild, or other child who is in a regular parent-child relationship; or

(iii)  a recognized natural child;

(C)  a retiree's recognized natural child, adopted child, foster child, stepchild, or other child who is in a regular parent-child relationship and who lives with or has his or her care provided by the retiree or surviving spouse on a regular basis regardless of the child's age, if the child has a mental disability [is mentally retarded] or is physically incapacitated to an extent that the child is dependent on the retiree or surviving spouse for care or support, as determined by the trustee; or

(D)  a deceased active member's recognized natural child, adopted child, foster child, stepchild, or other child who is in a regular parent-child relationship, without regard to the age of the child, if, while the active member was alive, the child:

(i)  lived with or had the child's care provided by the active member on a regular basis; and

(ii)  had a mental disability [was mentally retarded] or was physically incapacitated to an extent that the child was dependent on the active member or surviving spouse for care or support, as determined by the trustee.

SECTION 33.  Section 1575.206, Insurance Code, is amended to read as follows:

Sec. 1575.206.  CONTRIBUTIONS HELD IN TRUST FOR FUND. An employing public school [district] and its governing body [trustees]:

(1)  hold contributions required by this subchapter in trust for the fund and its participants; and

(2)  may not divert the contributions for any other purpose.

SECTION 34.  Section 1575.207, Insurance Code, is amended to read as follows:

Sec. 1575.207.  INTEREST ASSESSED ON LATE PAYMENT OF DEPOSITS BY EMPLOYING PUBLIC SCHOOLS [SCHOOL DISTRICTS]. (a)  An employing public school [district] that does not remit to the trustee all contributions required by this subchapter before the seventh day after the last day of the month shall pay to the fund:

(1)  the contributions; and

(2)  interest on the unpaid amounts at the annual rate of six percent compounded monthly.

(b)  On request, the trustee may grant a waiver of the deadline imposed by this section based on an employing public school's [district's] financial or technological resources.

SECTION 35.  Section 1579.004, Insurance Code, is amended to read as follows:

Sec. 1579.004.  DEFINITION OF DEPENDENT. In this chapter, "dependent" means:

(1)  a spouse of a full-time employee or part-time employee;

(2)  an unmarried child of a full-time or part-time employee if the child is younger than 25 years of age, including:

(A)  an adopted child;

(B)  a foster child, stepchild, or other child who is in a regular parent-child relationship; and

(C)  a recognized natural child;

(3)  a full-time or part-time employee's recognized natural child, adopted child, foster child, stepchild, or other child who is in a regular parent-child relationship and who lives with or has his or her care provided by the employee or the surviving spouse on a regular basis, regardless of the child's age, if the child has a mental disability [is mentally retarded] or is physically incapacitated to an extent that the child is dependent on the employee or surviving spouse for care or support, as determined by the board of trustees; and

(4)  notwithstanding any other provision of this code, any other dependent of a full-time or part-time employee specified by rules adopted by the board of trustees.

SECTION 36.  (a) The following sections of the Government Code are repealed:

(1)  Subsection (i), Section 823.401;

(2)  Subsections (g) and (h), Section 823.402;

(3)  Subsection (e), Section 823.501;

(4)  Subsections (c), (d), (m), (p), and (q), Section 824.602; and

(5)  Section 825.3021.

(b)  Section 57, Chapter 1359 (S.B. 1691), Acts of the 79th Legislature, Regular Session, 2005, is repealed.

SECTION 37.  The change in law made by this Act to Section 804.003, Government Code, applies only to a qualified domestic relations order entered on or after the effective date of this Act. A qualified domestic relations order entered before the effective date of this Act is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

SECTION 38.  Subdivision (15), Section 821.001, Government Code, as amended by this Act, applies beginning with the 2012-2013 school year.

SECTION 39.  A member of the Teacher Retirement System of Texas who seeks credit under Subsection (b), Section 823.002, Government Code, as added by this Act, for service rendered before September 1, 2011, but not properly credited to a member's annual statement, must notify the retirement system not later than the date specified in Subsection (b), Section 823.002, Government Code, as added by this Act, or August 31, 2016, whichever is later.

SECTION 40.  Subsections (d) and (e), Section 823.401, Government Code, as amended by Section 10, Chapter 1359 (S.B. 1691), Acts of the 79th Legislature, Regular Session, effective September 1, 2005, apply to a person who was a member of the Teacher Retirement System of Texas on December 31, 2005, and to out-of-state service performed before January 1, 2006, notwithstanding Section 57 of that Act.

SECTION 41.  The changes in law made by this Act to Section 824.105, Government Code, apply only to the death of a member or annuitant of the Teacher Retirement System of Texas that is caused by conduct that occurs on or after the effective date of this Act. The death of a member or annuitant that is caused by conduct that occurs before the effective date of this Act is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

SECTION 42.  (a)  A person who resumed employment after retirement and whose benefit payments were suspended under Section 824.601, Government Code, as that section existed before amendment by this Act, is entitled to the resumption of monthly benefit payments if the person meets the requirements of Section 824.601(b-1), Government Code, as added by this Act, or Section 824.602, Government Code, as amended by this Act.

(b)  The Teacher Retirement System of Texas shall resume making monthly benefit payments to a person described by Subsection (a) of this section on the first payment date occurring on or after the effective date of this Act.

(c)  A person who is entitled to the resumption of monthly benefit payments under this section is not entitled to recover benefit payments not made during the period the person's benefit was suspended under Section 824.601, Government Code, as that section existed before amendment by this Act.

SECTION 43.  The change in law made by this Act to Section 825.002, Government Code, applies only to a vacancy on the board of trustees of the Teacher Retirement System of Texas for a term that expires on or after the effective date of this Act. A vacancy for a term that expires before the effective date of this Act is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

SECTION 44.  For unreported service rendered or unreported compensation paid before the effective date of this Act, the verification required under Subsection (h), Section 825.403, Government Code, as amended by this Act, must be received by the Teacher Retirement System of Texas not later than August 31, 2016.

SECTION 45.  (a)  Notwithstanding the service credit cost provisions of Section 40 of this Act and Subsection (e), Section 823.402, Subdivision (2), Subsection (c), Section 823.501, and Subsection (h), Section 825.403, Government Code, as amended by this Act, a person may establish service credit by paying the deposits and fees required under Sections 823.402, 823.501, and 825.403, Government Code, and by Section 57, Chapter 1359 (S.B. 1691), Acts of the 79th Legislature, Regular Session, 2005, as those sections existed before amendment or repeal by this Act, if:

(1)  the person otherwise meets all eligibility requirements under those sections as amended by this Act;

(2)  the service for which credit is sought to be established was rendered, or the compensation for which credit is sought was paid, before the effective date of this Act; and

(3)  the person makes payment for the service credit, or enters into an installment agreement for payment, not later than August 31, 2013.

(b)  If a person has an installment agreement under Subsection (a) of this section that is terminated after August 31, 2013, before the person has made all of the payments, the person may establish credit only as provided by Sections 823.402, 823.501, and 825.403, Government Code, as amended by this Act, and by Section 40 of this Act.

SECTION 46.  The change in law made by this Act to Subsection (b), Section 825.507, Government Code, applies only to the release of records by the Teacher Retirement System of Texas on or after the effective date of this Act. The release of records before the effective date of this Act is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

SECTION 47.  (a)  Notwithstanding Subsection (a), Section 825.404, Government Code, for the state fiscal year ending August 31, 2012, the amount of the state contribution to the Teacher Retirement System of Texas under that section may be less than the amount contributed by members during that fiscal year.

(b)  Notwithstanding Subsection (a), Section 1575.202, Insurance Code, for the state fiscal year ending August 31, 2013, the state may contribute an amount to the retired school employees group insurance fund that is less than one percent of the salary of each active employee.

SECTION 48.  To the extent of any conflict, this Act prevails over another Act of the 82nd Legislature, Regular Session, 2011, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 49.  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, 2011.