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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of and benefits available under |
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the Employees Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 609, Government Code, is |
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amended by adding Section 609.015 to read as follows: |
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Sec. 609.015. BENEFICIARY CAUSING DEATH OF PARTICIPATING |
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EMPLOYEE. (a) Any benefits, funds, or account balances payable on |
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the death of a participating employee may not be paid to a person |
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convicted or adjudged of causing that death but instead is payable |
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as if the convicted person had predeceased the decedent. |
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(b) The plan is not required to change the recipient of |
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benefits under this section unless is receives actual notice of the |
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conviction or adjudication of a beneficiary. However, the plan may |
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delay payment of a benefit payable on the death of a member or |
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annuitant pending the results of a criminal investigation or civil |
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proceeding and of legal proceedings relating to the cause of death. |
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(c) For the purposes of this section, a person has been |
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convicted or adjudicated of causing the death of a participating |
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employee if the person: |
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(1) pleads guilty or nolo contendere to, or is found |
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guilty by a court or jury in a criminal proceeding of, causing the |
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death of the participating employee, regardless of whether sentence |
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is imposed or probated, and has no appeal of the conviction pending |
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and the time provided for appeal has expired; or |
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(2) is found liable by a court or jury in a civil |
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proceeding of causing the death of the participating employee, and |
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has no appeal of the judgement pending and the time provided for |
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appeal has expired. |
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SECTION 2. Section 813.404, Government Code, is amended to |
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read as follows: |
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Sec. 813.404. CONTRIBUTIONS FOR SERVICE NOT PREVIOUSLY |
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ESTABLISHED. For each month of membership, military, or equivalent |
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membership service not previously credited in the retirement |
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system, a member claiming credit in the elected class shall pay a |
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contribution in an amount equal to the greater of: |
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(1) eight percent of the monthly salary paid to |
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members of the legislature at the time the credit is established; or |
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(2) the appropriate member contribution set by Section |
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815.402 for [six percent of the monthly state salary paid to] a |
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person who holds, at the time the credit is established, the office |
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for which credit is sought. |
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SECTION 3. Section 813.505(a), Government Code, is amended |
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to read as follows: |
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(a) A member claiming credit in the employee class for |
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membership service not previously established shall, for each month |
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of the service, pay a contribution in an amount equal to the greater |
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of: |
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(1) the appropriate member contribution set by Section |
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815.402 [six percent of the member's monthly state compensation] |
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for the service during the time for which credit is sought; or |
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(2) $18. |
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SECTION 4. Section 814.104(d), Government Code, is amended |
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to read as follows: |
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(d) Except as provided by Section 814.102 or by rule adopted |
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under Section 813.304(d) or 803.202(a)(2), a member who was not a |
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member on the date hired, was hired on or after September 1, 2009, |
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and has service credit in the retirement system is eligible to |
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retire and receive a service retirement annuity if the member: |
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(1) is at least 65 years old and has at least 10 years |
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of service credit in the employee class; or |
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(2) has at least 10 [5] years of service credit in the |
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employee class and the sum of the member's age and amount of service |
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credit in the employee class, including months of age and credit, |
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equals or exceeds the number 80. |
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SECTION 5. Section 814.1075(d), Government Code, is amended |
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to read as follows: |
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(d) The standard combined service retirement annuity that |
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is payable under this section is based on retirement at either the |
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age of 55 or the age at which the sum of the member's age and amount |
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of service credit in the employee class equals or exceeds the number |
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80. The annuity of a law enforcement or custodial officer who |
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retires before reaching the age of 55 under any eligibility |
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criteria is actuarially reduced by five percent for each year the |
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member retires before the member reaches age 55, with a maximum |
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possible reduction of 25 percent. The actuarial reduction |
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described by this section is in addition to any other actuarial |
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reduction required by law. |
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SECTION 6. Section 815.303, Government Code, is amended to |
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read as follows: |
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Sec. 815.303. SECURITIES LENDING. (a) The retirement |
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system may, in the exercise of its constitutional discretion to |
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manage the assets of the retirement system, select one or more |
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commercial banks, depository trust companies, or other entities to |
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serve as custodian or custodians of the system's securities and to |
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lend the securities under rules or policies adopted by the board of |
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trustees and as required by this section. |
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(b) To be eligible to lend securities under this section, a |
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bank or brokerage firm must: |
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(1) be experienced in the operation of a fully secured |
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securities loan program; |
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(2) maintain adequate capital in the prudent judgment |
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of the retirement system to assure the safety of the securities; |
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(3) execute an indemnification agreement satisfactory |
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in form and content to the retirement system fully indemnifying the |
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retirement system against loss resulting from borrower default in |
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its operation of a securities loan program for the system's |
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securities; and |
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(4) require any securities broker or dealer to whom it |
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lends securities belonging to the retirement system to deliver to |
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and maintain with the securities lending agent or custodian |
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collateral in the form of cash, [or] United States government |
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securities, or United States government agency securities in an |
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amount equal to but not less than 100 percent of the market value, |
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from time to time, as determined by the retirement system, of the |
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loaned securities. |
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SECTION 7. Subchapter D, Chapter 834, Government Code, is |
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amended by adding Section 834.305 to read as follows: |
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Sec. 834.305. BENEFICIARY CAUSING DEATH OF MEMBER OR |
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ANNUITANT. (a) Any benefits, funds, or account balances payable |
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on the death of a member or annuitant may not be paid to a person |
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convicted or adjudged of causing that death but instead is payable |
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as if the convicted person had predeceased the decedent. |
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(b) A person who becomes eligible under this section to |
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select death or survivor benefits may select benefits as if the |
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person were the designated beneficiary. |
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(c) The retirement system shall reduce any annuity computed |
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in the part on the age of the convicted or adjudicated person to a |
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lump sum equal to the present value of the remainder of the annuity. |
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The reduced amount is payable to a person entitled as provided by |
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this section to receive the benefit. |
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(d) The retirement system is not required to change the |
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recipient of benefits under this section unless it receives actual |
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notice of the conviction or adjudication of a beneficiary. |
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However, the retirement system may delay payment of a benefit |
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payable on the death of a member or annuitant pending the results of |
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a criminal investigation or civil proceeding and of legal |
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proceedings relating to the cause of death. |
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(e) For the purposes of this section, a person has been |
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convicted or adjudicated of causing the death of a member or |
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annuitant if the person: |
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(1) pleads guilty or nolo contendere to, or is found |
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guilty by a court or jury in a criminal proceeding of, causing the |
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death of the member or annuitant, regardless of whether sentence is |
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imposed or probated, and has no appeal of the conviction pending and |
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the time provided for appeal has expired; or |
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(2) is found liable by a court or jury in a civil |
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proceeding of causing the death of the member or annuitant, and has |
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no appeal of the judgment pending and the time provided for appeal |
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has expired. |
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SECTION 8. Subchapter D, Chapter 839, Government Code, is |
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amended by adding Section 839.306 to read as follows: |
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Sec. 839.306. BENEFICIARY CAUSING DEATH OF MEMBER OR |
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ANNUITANT. (a) Any benefits, funds, or account balances payable |
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on the death of a member or annuitant may not be paid to a person |
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convicted or adjudged of causing that death but instead is payable |
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as if the convicted person had predeceased the decendent. |
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(b) A person who becomes eligible under this section to |
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select death or survivor benefits may select benefits as if the |
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person were the designated beneficiary. |
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(c) The retirement system shall reduce any annuity computed |
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in part on the age of the convicted or adjudicated person to a lump |
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sum equal to the present value of the remainder of the annuity. The |
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reduced amount is payable to a person entitled as provided by this |
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section to receive the benefit. |
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(d) The retirement system is not required to change the |
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recipient of benefits under this section unless it receives actual |
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notice of the conviction or adjudication of a beneficiary. |
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However, the retirement system may delay payment of a benefit |
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payable on the death of a member or annuitant pending the results of |
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a criminal investigation or civil proceeding and of legal |
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proceedings relating to the cause of death. |
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(e) For the purposes of this section, a person has been |
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convicted or adjudicated of causing the death of a member or |
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annuitant if the person: |
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(1) pleads guilty or nolo contendere to, or is found |
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guilty by a court or jury in a criminal proceeding of, causing the |
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death of the member or annuitant, regardless of whether sentence is |
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imposed or probated, and has no appeal of the conviction pending and |
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the time provided for appeal has expired; or |
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(2) is found liable by a court or jury in a civil |
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proceeding of causing the death of the member or annuitant, and has |
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no appeal of the judgment pending and the time provided for appeal |
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has expired. |
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SECTION 9. Section 1551.004(a), Insurance Code, is amended |
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to read as follows: |
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(a) In this chapter, "dependent" with respect to an |
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individual eligible to participate in the group benefits program |
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[under Section 1551.101 or 1551.102] means the individual's: |
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(1) spouse; |
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(2) unmarried child younger than 25 years of age; |
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(3) child of any age who the board of trustees |
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determines lives with or has the child's care provided by the |
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individual on a regular basis if: |
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(A) the child is mentally [retarded] or |
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physically incapacitated to the extent that the child is dependent |
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on the individual for care or support, as determined by the board of |
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trustees; |
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(B) the child's coverage under this chapter has |
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not lapsed; and |
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(C) the child is at least 25 years old and was |
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enrolled as a participant in the health benefits coverage under the |
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group benefits program on the date of the child's 25th birthday; |
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(4) child of any age who is unmarried, for purposes of |
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health benefit coverage under this chapter, on expiration of the |
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child's continuation coverage under the Consolidated Omnibus |
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Budget Reconciliation Act of 1985 (Pub. L. No. 99-272) and its |
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subsequent amendments; and |
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(5) ward, as that term is defined by Section 601, Texas |
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Probate Code, younger than 25 years of age. |
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SECTION 10. Subchapter B, Chapter 1551, Insurance Code, is |
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amended by adding Section 1551.068 to read as follows: |
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Sec. 1551.068. QUALIFICATION OF GROUP BENEFITS PROGRAM. |
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Notwithstanding any other law, it is intended that the provisions |
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of this chapter be construed and administered in a manner that |
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coverages under the group benefits program will be considered in |
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compliance with applicable federal laws and regulations. The board |
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of trustees may adopt rules that modify provisions of the this |
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chapter by adding, deleting, or changing a provision, including |
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rules that modify eligibility or enrollment requirements and |
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benefits available under any group benefits program coverages. |
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SECTION 11. Section 1551.314, Insurance Code, is amended to |
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read as follows: |
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Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS PROHIBITED. A |
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state contribution may not be made for coverages under this chapter |
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selected by an individual who receives a state contribution[, other
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than as a spouse, dependent, or beneficiary,] for coverages under a |
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group benefits program provided by another state plan or by an |
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institution of higher education, as defined by Section 61.003, |
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Education Code. |
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SECTION 12. The change in law made by Sections 609.015, |
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834.305, and 839.306, Government Code, as added by this Act, apply |
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only to an offense committed on or after the effective date of this |
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Act. An offensive comitted before the effective date of this Act is |
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governed by the law in effect on the date the offense was committed, |
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and the former law is continued in effect for that purpose. For |
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purposes of this section, an offense was committed before the |
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effective date of this Act if any element of the offense occurred |
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before that date. |
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SECTION 13. This Act takes effect September 1, 2011. |