By: Duncan	S.B. No. 1671

	A BILL TO BE ENTITLED
	AN ACT
	relating to the Teacher Retirement System of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	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:
	Sec. 411.0971.  ACCESS TO CRIMINAL HISTORY RECORD
	INFORMATION: TEACHER RETIREMENT SYSTEM OF TEXAS.  (a)  The Teacher
	Retirement System of Texas is entitled to obtain from the
	department, the Federal Bureau of Investigation Criminal Justice
	Information Services Division, or another law enforcement agency
	criminal history record information maintained by the department,
	division, or agency that relates to a person who:
	(1)  is an employee or an applicant for employment with
	the retirement system;
	(2)  is a consultant, contract employee, independent
	contractor, intern, or volunteer for the retirement system or an
	applicant to serve in one of those positions;
	(3)  proposes to enter into a contract with or has a
	contract with the retirement system to perform services for or
	supply goods to the retirement system; or
	(4)  is an employee or subcontractor, or an applicant
	to be an employee or subcontractor, of a contractor that provides
	services to the retirement system.
	(b)  Criminal history record information obtained by the
	Teacher Retirement System of Texas under Subsection (a) may not be
	released or disclosed to any person except:
	(1)  on court order;
	(2)  with the consent of the person who is the subject
	of the criminal history record information; or
	(3)  to a federal agency as required by federal law or
	executive order.
	(c)  The Teacher Retirement System of Texas shall destroy
	criminal history record information obtained under this section
	after the information is used for the purposes authorized by this
	section.
	(d)  The Teacher Retirement System of Texas may provide a
	copy of the criminal history record information obtained from the
	department, the Federal Bureau of Investigation Criminal Justice
	Information Services Division, or other law enforcement agency to
	the individual who is the subject of the information.
	(e)  The failure or refusal of an employee or applicant to
	provide the following on request constitutes good cause for
	dismissal or refusal to hire:
	(1)  a complete set of fingerprints;
	(2)  a true and complete name; or
	(3)  other information necessary for a law enforcement
	entity to obtain criminal history record information.
	SECTION 3.  Subchapter F, Chapter 551, Government Code, is
	amended by adding Section 551.130 to read as follows:
	Sec. 551.130.  BOARD OF TRUSTEES OF TEACHER RETIREMENT
	SYSTEM OF TEXAS:  QUORUM PRESENT AT ONE LOCATION. (a)  In this
	section, "board" means the board of trustees of the Teacher
	Retirement System of Texas.
	(b)  This chapter does not prohibit the board or a board
	committee from holding an open or closed meeting by telephone
	conference call.
	(c)  The board or a board committee may hold a meeting by
	telephone conference call only if a quorum of the applicable board
	or board committee is physically present at one location of the
	meeting.
	(d)  A telephone conference call meeting is subject to the
	notice requirements applicable to other meetings.  The notice must
	also specify:
	(1)  the location of the meeting where a quorum of the
	board or board committee, as applicable, will be physically
	present; and
	(2)  the intent to have a quorum present at that
	location.
	(e)  The location where a quorum is physically present must
	be open to the public during the open portions of a telephone
	conference call meeting. The open portions of the meeting must be
	audible to the public at the location where the quorum is present
	and be tape-recorded at that location. The tape recording shall be
	made available to the public.
	(f)  The location of the meeting shall provide two-way
	communication during the entire telephone conference call meeting,
	and the identification of each party to the telephone conference
	call must be clearly stated before the party speaks.
	(g)  The authority provided by this section is in addition to
	the authority provided by Section 551.125.
	(h)  A member of the board who participates in a board or
	board committee meeting by telephone conference call but is not
	physically present at the location of the meeting is not considered
	to be absent from the meeting for any purpose. The vote of a member
	of the board who participates in a board or board committee meeting
	by telephone conference call is counted for the purpose of
	determining the number of votes cast on a motion or other
	proposition before the board or board committee.
	(i)  A member of the board may participate remotely by
	telephone conference call instead of by being physically present at
	the location of a board meeting for not more than one board meeting
	per calendar year. A board member who participates remotely in any
	portion of a board meeting by telephone conference call is
	considered to have participated in the entire board meeting by
	telephone conference call. For purposes of the limit provided by
	this subsection, remote participation by telephone conference call
	in a meeting of a board committee does not count as remote
	participation by telephone conference call in a meeting of the
	board, even if:
	(1)  a quorum of the full board attends the board
	committee meeting; or
	(2)  notice of the board committee meeting is also
	posted as notice of a board meeting.
	(j)  A person who is not a member of the board may not speak
	at the meeting from a remote location by telephone conference call,
	except as provided by Section 551.129.
	SECTION 4.  Subchapter C, Chapter 552, Government Code, is
	amended by adding Section 552.153 to read as follows:
	Sec. 552.153.  EXCEPTION: NAME OF APPLICANT FOR EXECUTIVE
	DIRECTOR, CHIEF INVESTMENT OFFICER, OR CHIEF AUDIT EXECUTIVE OF
	TEACHER RETIREMENT SYSTEM OF TEXAS. The name of an applicant for
	the position of executive director, chief investment officer, or
	chief audit executive of the Teacher Retirement System of Texas is
	excepted from the requirements of Section 552.021, except that the
	board of trustees of the Teacher Retirement System of Texas must
	give public notice of the names of three finalists being considered
	for one of those positions at least 21 days before the date of the
	meeting at which the final action or vote is to be taken on choosing
	a finalist for employment.
	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
	(B)  social security number, or an express
	authorization for the parties to use an alternate method acceptable
	to the public retirement system to verify the social security
	number, of the member or retiree and each alternate payee covered by
	the order;
	(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.
	(p)  A public retirement system may assess administrative
	fees on a party who is subject to a domestic relations order for the
	review of the order under this subchapter and, as applicable, for
	the administration of payments under an order that is determined to
	be qualified.  In addition to other methods of collecting fees that
	a retirement system may establish, the retirement system may deduct
	fees from payments made under the order.
	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.
	(b)  This section does not prohibit comments by an employee
	of the retirement system on federal laws, regulations, or other
	official actions or proposed actions affecting or potentially
	affecting the retirement system that are made in accordance with
	policies adopted by the board.
	SECTION 8.  Section 823.002, Government Code, is amended by
	adding Subsection (b) to read as follows:
	(b)  A member shall notify the retirement system in writing
	of membership service that has not been properly credited by the
	retirement system on an annual statement.  The member must provide
	verification and make deposits as required by the retirement system
	before the service may be credited.  A member must notify the
	retirement system of the service in writing on or before the last
	day of the fifth school year after the end of the school year in
	which the service was rendered for the service to be credited.
	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:
	Sec. 824.008.  DEDUCTIONS FROM AMOUNTS PAYABLE BY THE
	RETIREMENT SYSTEM. (a)  Notwithstanding Section 821.005, the
	retirement system may deduct the amount of a person's indebtedness
	to the retirement system from an amount payable by the retirement
	system to the person or the person's estate and the distributees of
	the estate.
	(b)  If the retirement system makes a payment to a
	participant who is deceased and the payment is not payable, the
	retirement system may deduct the amount of the payment from any
	amount payable by the retirement system to a person who received the
	payment or to that person's estate and distributees of the estate.
	SECTION 15.  Section 824.1013, Government Code, is amended
	by adding Subsection (c-1) to read as follows:
	(c-1)  Notwithstanding Subsection (c), a beneficiary
	designated under this section is entitled on the retiree's death to
	receive monthly payments of the survivor's portion of the retiree's
	optional retirement annuity for the remainder of the beneficiary's
	life if the beneficiary designated at the time of the retiree's
	retirement is a trust and the beneficiary designated under this
	section is the sole beneficiary of that trust.
	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;
	(4)  a beneficiary designation is revoked under Section
	824.101(g); or
	(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.
	(f)  A person is ineligible to receive a benefit payable on
	the death of a member or annuitant if the person is:
	(1)  found not guilty by reason of insanity under
	Chapter 46C, Code of Criminal Procedure, of causing the death of the
	member or annuitant; or
	(2)  the subject of an indictment, information,
	complaint, or other charging instrument alleging that the person
	caused the death of the member or annuitant and the person is
	determined to be incompetent to stand trial under Chapter 46B, Code
	of Criminal Procedure.
	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:
	Age at date of 55 56 57 58 59 60 61 62 63 64 65
	retirement
	Percentage of 47% 51% 55% 59% 63% 67% 73% 80% 87% 93% 100%
	standard annuity
	receivable
	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.
	(b-1)  Subsection (b) does not apply to a retiree under
	Section 824.202 whose effective date of retirement is on or before
	January 1, 2011.
	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].
	(h)  If only two persons are nominated under Subsection (c),
	(d), or (e), the governor shall appoint a member of the board to the
	applicable trustee position from the slate of two nominated
	persons.  If only one person is nominated under Subsection (c), (d),
	or (e), the governor shall appoint that person to the applicable
	trustee position. If no member or retiree is nominated for a
	position under Subsection (c), (d), or (e), the governor shall
	appoint to the applicable trustee position a person who otherwise
	meets the qualifications required for the position.
	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.
	(b)  This section does not prohibit comments by an employee
	of the retirement system on federal laws, regulations, or other
	official actions or proposed actions affecting or potentially
	affecting the retirement system that are made in accordance with
	policies adopted by the board.
	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.
	(b)  This section does not prohibit the use of system assets
	by an employee of the retirement system to comment on federal laws,
	regulations, or other official actions or proposed actions
	affecting or potentially affecting the retirement system that are
	made in accordance with policies adopted by the board.
	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 provisions 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 Subsection (b-1),
	Section 824.601, 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.