By: Duncan  S.B. No. 1812
         (In the Senate - Filed March 8, 2013; March 25, 2013, read
  first time and referred to Committee on State Affairs;
  April 17, 2013, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; April 17, 2013,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1812 By:  Duncan
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the determination of state contributions for
  participation by certain junior college employees in the state
  employees group benefits program, the Teacher Retirement System of
  Texas, and the Optional Retirement Program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (b), Section 825.404, Government
  Code, is amended to read as follows:
         (b)  Before November 2 of each even-numbered year, the board
  of trustees shall certify to the comptroller of public accounts for
  review and adoption an estimate of the amount necessary to pay the
  state's contributions to the retirement system for the following
  biennium.  In determining the amount to be certified, the board of
  trustees shall include 50 percent of the cost associated with
  eligible public junior college employees.
         (b-1)  For purposes of this section, a public junior college
  employee is eligible if the employee is:
               (1)  otherwise eligible to participate in the group
  benefits program; and
               (2)  an instructional or administrative employee whose
  salary may be fully paid from funds appropriated under the General
  Appropriations Act, regardless of whether the salary is actually
  paid from appropriated funds.
         (b-2)  In determining the amount described in Subsection
  (b), the number of eligible employees included for each college in
  each biennium may not be adjusted in a proportion greater than the
  change in student enrollment at each college during the reporting
  period.
         SECTION 2.  Section 825.407, Government Code, is amended to
  read as follows:
         Sec. 825.407.  COLLECTION OF CONTRIBUTIONS FROM
  NONEDUCATIONAL AND GENERAL FUNDS.  (a)  In this section:
               (1)  "General academic teaching institution" has the
  meaning assigned by Section 61.003, Education Code.
               (2)  "Medical and dental unit" has the meaning assigned
  by Section 61.003, Education Code.
               (3)  "Noneducational and general funds" means all funds
  of an institution of higher education except those funds used as a
  method of financing for an institutional appropriation in the
  General Appropriations Act or dedicated by the Constitution of the
  State of Texas.
               (4)  "Public junior college" has the meaning assigned
  by Section 61.003, Education Code.
         (b)  The governing board of each general academic teaching
  institution, the governing board of each public junior college or
  each public junior college district, and the governing board of
  each medical and dental unit shall reimburse the state, from
  noneducational and general funds of the institution, public junior
  college, or unit, for state contributions that are made based on any
  portion of a member's salary that is paid from the noneducational
  and general funds.
         (c)  The designated disbursing officer of each general
  academic teaching institution, public junior college, and [the
  designated disbursing officer of each] medical and dental unit
  shall:
               (1)  submit to the retirement system, at a time and in
  the manner prescribed by the retirement system, a monthly report
  containing a certification of the total amount of salary paid from
  noneducational and general funds and the total amount of employer
  contributions due under this section for the payroll period; and
               (2)  maintain and retain the following information:
                     (A)  the name of each member employed by the
  institution, public junior college, or unit who, for the most
  recent payroll period, was paid wholly or partly from
  noneducational and general funds;
                     (B)  the amount of the employee's salary for the
  most recent payroll period that was paid from noneducational and
  general funds; and
                     (C)  any other information the retirement system
  determines is necessary to administer this section.
         (d)  A monthly report required under Subsection (c) shall be
  accompanied by payment of the amount certified under Subdivision
  (1) [(3)] of that subsection.
         (e)  After the end of each fiscal year, the retirement system
  shall report to the comptroller of public accounts and the State
  Auditor the name of any general academic teaching institution, any
  public junior college, and any medical and dental unit delinquent
  in the reimbursement of contributions under this section for the
  preceding fiscal year and the amount by which each reported
  institution, public junior college, or unit is delinquent.
         (f)  Any portion of the reimbursement required under this
  section to be made for a fiscal year by a general academic teaching
  institution, a public junior college, or a medical and dental unit
  that remains unpaid on the first day of the next fiscal year accrues
  interest, beginning on that day or the due date for the portion,
  whichever is later, at an annual rate, compounded monthly, equal to
  the rate established under Section 825.313(b)(1), plus two percent.
         (g)  The retirement system shall deposit all money it
  receives under this section in the state contribution account.
         SECTION 3.  Section 830.201, Government Code, is amended by
  adding Subsections (g), (h), and (i) to read as follows:
         (g)  In determining the amount to be appropriated for the
  purposes of Subsection (a), the legislature shall include 50
  percent of the cost associated with eligible public junior college
  employees.
         (h)  For purposes of this section, a public junior college
  employee is eligible if the employee is:
               (1)  otherwise eligible to participate in the group
  benefits program; and
               (2)  an instructional or administrative employee whose
  salary may be fully paid from funds appropriated under the General
  Appropriations Act, regardless of whether the salary is actually
  paid from appropriated funds.
         (i)  In determining the amount described in Subsection (g),
  the number of eligible employees included for each college in each
  biennium may not be adjusted in a proportion greater than the change
  in student enrollment at each college during the reporting period.
         SECTION 4.  Subchapter G, Chapter 1551, Insurance Code, is
  amended by adding Section 1551.3111 to read as follows:
         Sec. 1551.3111.  AMOUNT OF STATE CONTRIBUTION FOR CERTAIN
  JUNIOR COLLEGE EMPLOYEES.  (a)  In determining the amount to be
  certified under Section 1551.311, the board of trustees shall
  include 50 percent of the cost associated with eligible public
  junior college employees.
         (b)  For purposes of this section, a public junior college
  employee is eligible if the employee is:
               (1)  otherwise eligible to participate in the group
  benefits program; and
               (2)  an instructional or administrative employee whose
  salary may be fully paid from funds appropriated under the General
  Appropriations Act, regardless of whether the salary is actually
  paid from appropriated funds.
         (c)  In determining the amount described in Subsection (a),
  the number of eligible employees included for each college in each
  biennium may not be adjusted in a proportion greater than the change
  in student enrollment at each college during the reporting period.
         SECTION 5.  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, 2013.
 
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