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COMMITTEE AMENDMENT NO. 1 |
By: Duncan |
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Amend H.B. 3357 as follows: |
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(1) Strike SECTION 6 of the bill, adding Section 825.103(h), |
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Government Code (page 3, lines 63-67). |
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(2) In SECTION 9 of the bill (page 5, lines 4-10), strike |
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amended Section 825.212(c), Government Code, and substitute the |
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following: |
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(c) This chapter modifies the common law of conflict of |
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interests as applied to trustees, employees, and contracts of the |
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retirement system to the extent that violations of the common law of |
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conflict of interests do not void retirement system contracts. The |
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retirement system shall by rule or policy adopt procedures for |
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disclosing and curing violations of the common law of conflict of |
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interests and any such rule or policy may specify time periods in |
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which disclosures and cures must be completed [An employee who has a
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business or commercial relationship that could reasonably be
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expected to diminish the employee's independence of judgment in the
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performance of the employee's responsibilities to the retirement
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system shall disclose that relationship in writing to a person
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designated by the board]. |
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(3) Strike SECTION 22 of the bill, repealing certain |
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provisions of the Government Code, and substitute the following |
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appropriately numbered SECTION: |
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SECTION 22. The following laws are repealed: |
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(1) Section 825.211, Government Code; |
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(2) Sections 825.212(d), (e), (f), (g), and (h), |
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Government Code; |
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(3) sections 825.402(b), (c), and (d), Government |
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Code; |
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(4) Section 825.404(d), Government Code; |
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(5) Section 825.411, Government Code; and |
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(6) Section 1579.103, Insurance Code. |
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(4) Strike SECTION 23 of the bill, providing an effective |
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date for the Act, and substitute the following appropriately |
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numbered SECTION: |
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SECTION 23. EFFECTIVE DATE. (a) Except as provided by |
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Subsection (b) of this section, this Act takes effect immediately |
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if it receives a vote of two-thirds of all the members elected to |
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each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2013. |
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(b) Sections 824.1012 and 824.1013, Government Code, as |
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amended by this Act, take effect September 1, 2013. |
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(5) Renumber SECTIONS of the bill appropriately. |
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COMMITTEE AMENDMENT NO. 2 |
By: Duncan |
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Amend H.B. No. 3357 (engrossed version) by inserting the |
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following new SECTIONS, appropriately numbered, and renumbering |
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the subsequent SECTIONS of the bill accordingly: |
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SECTION ____. Section 12.055, Education Code, is amended to |
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read as follows: |
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Sec. 12.055. APPLICABILITY OF LAWS AND RULES TO CAMPUS OR |
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PROGRAM GRANTED CHARTER. (a) A campus or program for which a |
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charter is granted under this subchapter is subject to federal and |
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state laws and rules governing public schools, except that the |
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campus or program is subject to this code and rules adopted under |
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this code only to the extent the applicability to a campus or |
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program for which a charter is granted under this subchapter of a |
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provision of this code or a rule adopted under this code is |
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specifically provided. |
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(b) A school district may contract with another district or |
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an open-enrollment charter holder for services at a campus charter. |
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An employee of the district or open-enrollment charter holder |
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providing contracted services to a campus charter is eligible for |
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membership in and benefits from the Teacher Retirement System of |
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Texas if the employee would be eligible for membership and benefits |
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if holding the same position at the employing district or |
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open-enrollment charter school operated by the charter holder. |
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SECTION ____. Section 12.057, Education Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) An employee of a charter holder, as defined by Section |
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12.1012, who is employed on a campus or in a program granted a |
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charter under this subchapter and who qualifies for membership in |
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the Teacher Retirement System of Texas shall be covered under the |
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system in the same manner and to the same extent as a qualified |
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employee of an independent school district who is employed on a |
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regularly operating campus or in a regularly operating program. |
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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of and benefits payable by the |
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Teacher 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. Sections 551.130(e) and (j), Government Code, |
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are amended to read as follows: |
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(e) The location where a quorum is physically present must |
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be open to the public during the open portions of a telephone |
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conference call meeting. The open portions of the meeting must be |
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audible to the public at the location where the quorum is present |
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and be recorded [tape-recorded] at that location. The [tape] |
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recording shall be made available to the public. |
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(j) A person who is not a member of the board may [not] speak |
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at the meeting from a remote location by telephone conference |
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call[, except as provided by Section 551.129]. |
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SECTION 2. The heading to Section 824.1012, Government |
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Code, is amended to read as follows: |
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Sec. 824.1012. POST-RETIREMENT CHANGE IN RETIREMENT |
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PAYMENT PLAN [REVOCATION OF BENEFICIARY DESIGNATION] FOR CERTAIN |
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RETIREMENT BENEFIT OPTIONS. |
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SECTION 3. Sections 824.1012(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) As an exception to Section 824.101(c), a retiree who |
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selected an optional service retirement annuity under Section |
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824.204(c)(1), (c)(2), or (c)(5) or an optional disability |
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retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5) |
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and who has received at least one payment under the plan selected |
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may change the optional annuity selection made by the retiree to a |
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standard service or disability retirement annuity as provided for |
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in this section. If the beneficiary is the spouse or former spouse |
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of the retiree, the beneficiary must sign a notarized consent to the |
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change, or [may revoke the designation of the beneficiary to
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receive the annuity on the death of the retiree, if] a court in a |
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divorce proceeding involving the retiree and beneficiary must |
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approve or order the change [approves or orders the revocation] in |
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the divorce decree or acceptance of a property settlement [or if the
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beneficiary is the spouse, a former spouse, or an adult child of the
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retiree and signs a notarized consent to the revocation]. The |
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change in plan selection [revocation] takes effect when the |
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retirement system receives it. |
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(b) A change [revocation] described by Subsection (a) |
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cancels the optional annuity selection made by the retiree, |
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effective with the beginning of payments of the annuity as |
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recomputed under this subsection. The retiree is entitled to |
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receive payments of a standard service or disability retirement |
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annuity, as applicable, reduced for early retirement, if |
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applicable, beginning with the payment for the month after the |
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month in which the retirement system receives the notice of change |
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[revocation] and ending on the death of the retiree. The change |
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also cancels the designation of beneficiary with respect to the |
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optional annuity benefit but does not cancel a designation with |
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respect to any other benefit payable by the retirement system on the |
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death of the retiree. |
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SECTION 4. Section 824.1013(b), Government Code, is amended |
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to read as follows: |
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(b) If the beneficiary designated at the time of the |
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retiree's retirement is the spouse [or former spouse] of the |
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retiree at the time of the designation: |
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(1) the spouse [or former spouse] must give written, |
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notarized consent to the change; [or] |
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(2) if the parties divorce after the designation, the |
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former spouse who was designated beneficiary must give written, |
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notarized consent to the change; or |
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(3) a court with jurisdiction over the marriage must |
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have ordered the change. |
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SECTION 5. Sections 825.002(c), (e), and (e-1), Government |
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Code, are amended to read as follows: |
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(c) The governor shall appoint two members of the board from |
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a slate of three members of the retirement system who are currently |
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employed by a public school district, charter school, or regional |
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education service center and who have been nominated in accordance |
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with Subsection (f) by the members of the retirement system whose |
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most recent credited service was performed for a public school |
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district, charter school, or regional education service center. |
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The two members hold office for staggered terms. |
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(e) The governor shall appoint one member of the board from |
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a slate of three persons who have been nominated in accordance with |
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Subsection (f) by the following groups collectively: |
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(1) members of the retirement system whose most recent |
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credited service was performed for an institution of higher |
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education; |
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(2) members of the retirement system whose most recent |
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credited service was performed for a public school district, |
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charter school, or regional education service center; and |
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(3) persons who have retired and are receiving |
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benefits from the retirement system. |
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(e-1) A person may be nominated for appointment to the board |
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under Subsection (e) if the person is: |
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(1) a member of the retirement system who is currently |
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employed by an institution of higher education; |
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(2) a member of the retirement system who is currently |
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employed by a public school district, charter school, or regional |
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education service center; or |
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(3) a former member of the retirement system who has |
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retired and is receiving benefits from the system. |
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SECTION 6. Section 825.103, Government Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) The board of trustees may accept on behalf of the |
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retirement system gifts of money, services, or other property from |
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any public or private source. |
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SECTION 7. Section 825.115, Government Code, is amended by |
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adding Subsections (d) and (e) to read as follows: |
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(d) The board of trustees or its audit committee may conduct |
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a closed meeting in accordance with Subchapter E, Chapter 551, with |
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the retirement system's internal or external auditors to discuss: |
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(1) governance, risk management or internal control |
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weaknesses, known or suspected compliance violations or fraud, |
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status of regulatory reviews or investigations, or identification |
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of potential fraud risk areas and audits for the annual internal |
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audit plan; or |
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(2) the auditors' ability to perform duties in |
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accordance with the Internal Audit Charter, relevant auditing |
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standards, and Chapter 2102. |
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(e) The board of trustees may conduct a closed meeting in |
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accordance with Subchapter E, Chapter 551, to deliberate or confer |
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with one or more employees, consultants, or legal counsel of the |
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retirement system or a third party regarding a procurement to be |
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awarded by the board of trustees if, before conducting the closed |
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meeting, a majority of the trustees in an open meeting vote that |
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deliberating or conferring in an open meeting would have a |
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detrimental effect on the position of the retirement system in |
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negotiations with a third person. The board of trustees is required |
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to vote or take final action on the procurement in an open meeting. |
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SECTION 8. Section 825.204, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) The medical board is not subject to subpoena regarding |
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findings it makes in assisting the executive director or board of |
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trustees under this section, and its members may not be held liable |
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for any opinions, conclusions, or recommendations made under this |
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section. |
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SECTION 9. Sections 825.212(a), (b), and (c), Government |
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Code, are amended to read as follows: |
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(a) The [In addition to any other requirements provided by
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law, the] board of trustees shall adopt a code or codes of [enforce
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an] ethics, including standards of ethical conduct and disclosure |
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requirements, applicable to: |
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(1) trustees; |
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(2) [policy as provided by this section for] |
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employees; and |
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(3) any contractors or any categories of contractors |
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that the board of trustees determines provide: |
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(A) advice or opinion [of and consultants and
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advisors] to the retirement system that is the basis for a |
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significant decision or action by or on behalf of the retirement |
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system; or |
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(B) significant services to the retirement |
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system that relate to the administration and operation of the |
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retirement system. |
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(b) In any code of ethics adopted under this section, [Each
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employee of the retirement system who exercises significant
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decisionmaking or fiduciary authority, as determined by] the board |
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of trustees may: |
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(1) impose enhanced[, shall file financial] |
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disclosure requirements on employees that [statements with a person
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designated by] the board of trustees determines exercise |
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significant fiduciary authority; |
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(2) impose disclosure requirements on contractors for |
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expenditures on behalf of retirement system trustees or employees |
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in amounts equal to or greater than a minimum amount considered |
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material by the board of trustees; or |
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(3) address topics related to ethical conduct, |
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including prohibited conduct, conflicts of interest, waivers of |
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conflicts of interest, remedies for conflicts of interest, and |
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sanctions. [The content of a financial disclosure statement must
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comply substantially with the requirements of Subchapter B, Chapter
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572. A statement must be filed not later than the 30th day after the
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date a person is employed in a significant decisionmaking or
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fiduciary position and annually after employment not later than
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April 30. The filing deadline may be postponed by the executive
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director for not more than 60 days on written request or for an
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additional period for good cause, as determined by the chairman of
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the board. The retirement system shall maintain a financial
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disclosure statement for at least five years after the date of its
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filing.] |
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(c) This section preempts the common law of conflicts of |
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interest as applied to trustees, employees, and contracts of [An
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employee who has a business or commercial relationship that could
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reasonably be expected to diminish the employee's independence of
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judgment in the performance of the employee's responsibilities to] |
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the retirement system [shall disclose that relationship in writing
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to a person designated by the board]. |
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SECTION 10. Section 825.312(b), Government Code, is amended |
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to read as follows: |
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(b) The retirement system shall pay from the account all |
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administrative expenses of the retirement system [that exceed the
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amounts appropriated under Section 825.404(d) and] that are |
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required to perform the fiduciary duties of the board. |
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SECTION 11. The heading to Section 825.313, Government |
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Code, is amended to read as follows: |
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Sec. 825.313. TRANSFERS FROM INTEREST [OR STATE
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CONTRIBUTION] ACCOUNT. |
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SECTION 12. Section 825.313(d), Government Code, is amended |
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to read as follows: |
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(d) The board of trustees, by resolution recorded in its |
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minutes, may transfer from the interest account to the expense |
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account an amount necessary to cover the expenses of the retirement |
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system for the fiscal year [that exceed the amount of operating
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expenses appropriated under Section 825.404(d) and] that are |
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required to perform the fiduciary duties of the board[, including
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the expense of servicing mortgages insured by the Federal Housing
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Administration under the National Housing Act (12 U.S.C. Section
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1701 et seq.)]. |
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SECTION 13. Section 825.314, Government Code, is amended to |
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read as follows: |
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Sec. 825.314. USE [AND REPORTING] OF STATE CONTRIBUTIONS |
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[AND OTHER APPROPRIATIONS AND ASSETS]. [(a)] The retirement |
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system shall use all assets contributed by the state[, other than
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operating expenses appropriated under Section 825.404(d),] to pay |
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benefits authorized by this subtitle. |
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[(b)
The staff of the retirement system shall report to the
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board at each board meeting the amounts and uses since the preceding
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board meeting of any money expended by the system from amounts
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transferred under Section 825.313(d) and include an explanation of
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why the amounts were needed to perform the fiduciary duties of the
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board. The retirement system annually shall prepare and issue to
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each contributing member and annuitant and to the governor,
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lieutenant governor, and speaker of the house of representatives a
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summary of the reports presented during the preceding year to the
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board.] |
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SECTION 14. The heading to Section 825.404, Government |
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Code, is amended to read as follows: |
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Sec. 825.404. COLLECTION OF STATE CONTRIBUTIONS [AND
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APPROPRIATED OPERATING EXPENSES]. |
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SECTION 15. Section 825.404(e), Government Code, is amended |
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to read as follows: |
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(e) All money appropriated by the state to the retirement |
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system shall be paid to the state contribution account in equal |
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monthly installments as provided by Section 403.093(c)[,
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Government Code, except money appropriated under Subsection (d),
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which remains in the general revenue fund until expenses are
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approved under Chapter 2103]. |
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SECTION 16. Section 825.410(b), Government Code, is amended |
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to read as follows: |
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(b) Service credit shall be established pursuant to the |
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following provisions: |
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(1) The retirement system shall credit a member's |
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payments made under this section to a suspense account in the trust |
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fund until the sum of the payments equals the amount required for |
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one year of service credit, at which time the retirement system |
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shall deposit the payments in the appropriate accounts in the trust |
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fund and grant the applicable amount of service credit. No credit |
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shall be established for service pursuant to Section 823.501 [or
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Section 825.403] until a lump sum has been paid or all payroll |
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deduction or installment payments have been completed. |
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(2) No credit shall be established for other service |
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when the cost of establishing the service has been determined by |
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using withdrawn service to be reinstated pursuant to Section |
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823.501 [or previously unreported service to be established
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pursuant to Section 825.403] until a lump sum or all payroll |
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deductions or installments for the withdrawn [or previously
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unreported] service have been paid. |
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(3) All other service shall be credited when |
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sufficient payroll deductions or installments have been completed |
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to satisfy the cost requirements for a year of service. |
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SECTION 17. Sections 825.507(a), (b), (c), (f), and (g), |
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Government Code, are amended to read as follows: |
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(a) Records of a participant and information about the |
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records of a participant that are in the custody of the retirement |
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system or of an administrator, carrier, attorney, consultant, or |
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governmental agency, including the comptroller, acting in |
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cooperation with or on behalf of the retirement system are |
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confidential and not subject to public disclosure [in a form that
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would identify an individual and are exempt from the public access
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provisions of Chapter 552, except as otherwise provided by this
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section]. Because the records and information described by this |
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section [subsection] are exempt from the public access provisions |
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of Chapter 552, the retirement system or an administering firm, |
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carrier, attorney, consultant, or governmental agency, including |
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the comptroller, acting in cooperation with or on behalf of the |
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retirement system, is not required to accept or comply with a |
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request for a record or information about a record or to seek an |
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opinion from the attorney general, except as otherwise provided by |
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this section. |
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(b) The retirement system may release records of a |
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participant, or information about the records of a participant, |
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including a participant to which Chapter 803 applies, to: |
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(1) the participant or the participant's attorney or |
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guardian or another person who the executive director determines is |
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acting on behalf of the participant; |
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(2) the executor or administrator of the deceased |
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participant's estate, including information relating to the |
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deceased participant's beneficiary, or if an executor or |
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administrator of the deceased participant's estate has not been |
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named, a person or entity who the executive director determines is |
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acting in the interest of the deceased participant's estate, or an |
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heir, legatee, or devisee of the deceased participant; |
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(3) a spouse or former spouse of the participant if the |
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executive director determines that the information is relevant to |
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the spouse's or former spouse's interest in member accounts, |
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benefits, or other amounts payable by the retirement system; |
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(4) an administrator, carrier, consultant, attorney, |
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or agent acting on behalf of the retirement system; |
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(5) a governmental entity, an employer, or the |
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designated agent of an employer, only to the extent the retirement |
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system needs to share the information to perform the purposes of the |
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retirement system, as determined by the executive director; |
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(6) a person authorized by the participant in writing |
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to receive the information; |
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(7) a federal, state, or local criminal law |
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enforcement agency that requests a record for a law enforcement |
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purpose; |
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(8) the attorney general to the extent necessary to |
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enforce child support; or |
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(9) a party in response to a subpoena issued under |
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applicable law if the executive director determines that the |
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participant will have a reasonable opportunity to contest the |
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subpoena. |
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(c) The records of a participant and information about the |
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records remain confidential after release to a person as authorized |
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by this section. This section does not prevent the retirement |
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system or administering firm or carrier acting in cooperation with |
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or on behalf of the retirement system from disclosing or confirming |
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[disclosure or confirmation], on an individual basis, [of] the |
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status or identity of a participant as a member, former member, |
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retiree, deceased member or retiree, beneficiary, or alternate |
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payee of the retirement system. |
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(f) This section does not authorize the retirement system to |
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compile or disclose a list of participants' names, addresses, |
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including e-mail addresses, or social security numbers unless the |
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executive director determines that a compilation or disclosure is |
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necessary to administer the retirement system. |
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(g) In this section, "participant" means a member, former |
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member, retiree, annuitant, beneficiary, or alternate payee of the |
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retirement system, or an employee or contractor of an employer |
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covered by the retirement system for whom records were received by |
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the retirement system for the purpose of administering the terms of |
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the plan, including for audit or investigative purposes. |
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SECTION 18. Section 825.515(a), Government Code, is amended |
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to read as follows: |
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(a) At least annually, the retirement system shall acquire |
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and maintain records identifying members and specifying the types |
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of positions they hold as members. Employers shall provide to the |
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retirement system information specifying the type of position held |
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by each member [The type of position shall be identified] as |
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Administrative/Professional, Teacher/Full-Time Librarian, |
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Support, Bus Driver, or Peace Officer. Employers shall also |
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provide to the retirement system the work e-mail address for each |
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member. For each member identified as a Peace Officer, the records |
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must specify whether the member is an employee of an institution of |
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higher education or of a public school that is not an institution of |
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higher education. An employer shall provide the information |
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required by this section in the form and manner specified by the |
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retirement system. |
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SECTION 19. Section 1575.003(1), Insurance Code, is amended |
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to read as follows: |
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(1) "Dependent" means: |
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(A) the spouse of a retiree; |
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(B) a [an unmarried] child of a retiree or |
|
deceased active member if the child is younger than 26 [25] years of |
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age, including: |
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(i) an adopted child or child who is |
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lawfully placed for legal adoption; |
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(ii) a foster child, stepchild, or other |
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child who is in a regular parent-child relationship; or |
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(iii) a [recognized] natural child; |
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(C) a retiree's [recognized] natural child, |
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adopted child, foster child, stepchild, or other child who is in a |
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regular parent-child relationship and who lives with or has his or |
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her care provided by the retiree or surviving spouse on a regular |
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basis regardless of the child's age, if the child has a mental |
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disability or is physically incapacitated to an extent that the |
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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] |
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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 |
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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 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 20. Section 1575.205(c), Insurance Code, is amended |
|
to read as follows: |
|
(c) The trustee may spend a part of the money received for |
|
the group program to offset a part of the costs for optional |
|
coverage paid by retirees if [the expenditure does not reduce the
|
|
period] the group program is projected to remain financially |
|
solvent during the currently funded [by more than one year in a] |
|
biennium. |
|
SECTION 21. 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) a [an unmarried] child of a full-time or part-time |
|
employee if the child is younger than 26 [25] years of age, |
|
including: |
|
(A) an adopted child or child who is lawfully |
|
placed for adoption; |
|
(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 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 22. The following laws are repealed: |
|
(1) Section 825.211, Government Code; |
|
(2) Sections 825.212(d), (e), (f), (g), and (h), |
|
Government Code; |
|
(3) Sections 825.402(b), (c), and (d), Government |
|
Code; |
|
(4) Section 825.404(d), Government Code; and |
|
(5) Section 825.411, Government Code. |
|
SECTION 23. This Act takes effect September 1, 2013. |
|
|
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* * * * * |