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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