By: Anchia, Simmons H.B. No. 638
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
 
  relating to annuity payments to surviving spouses and designated
  beneficiaries of persons wrongfully imprisoned.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 103.053, Civil Practice and Remedies
  Code, is amended to read as follows:
         Sec. 103.053.  ANNUITY COMPENSATION GENERALLY; STANDARD
  ANNUITY PAYMENTS. (a) A person entitled to compensation under
  Section 103.001(a) is entitled to standard annuity payments under
  this section unless the person elects to receive alternative
  annuity payments under Section 103.0535.
         (a-1)  Standard annuity payments are[,] based on a present
  value sum equal to the amount to which the person is entitled under
  Sections 103.052(a)(1) and (b).
         (b)  Standard [The] annuity payments [under this section]
  are payable in equal monthly installments for the life of the
  claimant.
         (c)  Annuity payments under this chapter [and] must be based
  on a five percent per annum interest rate and other actuarial
  factors within the discretion of the comptroller. Annuity 
  [(c)  The annuity] payments under this chapter may not be
  accelerated, deferred, increased, or decreased. A person entitled
  to annuity payments under this chapter, including a claimant's
  spouse or designated beneficiary entitled to payments under Section
  103.0535, [The applicant] may not sell, mortgage or otherwise
  encumber, or anticipate the payments, wholly or partly, by
  assignment or otherwise.
         SECTION 2.  Subchapter B, Chapter 103, Civil Practice and
  Remedies Code, is amended by adding Sections 103.0535 and 103.0536
  to read as follows:
         Sec. 103.0535.  ALTERNATIVE ANNUITY COMPENSATION. (a)  A
  person entitled to compensation under Section 103.001(a) may elect
  to receive reduced alternative annuity payments under this section
  instead of standard annuity payments.
         (b)  Alternative annuity payments are payable throughout the
  life of the claimant and are actuarially reduced from the standard
  annuity payments to their actuarial equivalent under the option
  selected under Subsection (c).
         (c)  A claimant may select one of the following options,
  which provide that:
               (1)  after the claimant's death, the alternative
  annuity payments are payable to and throughout the life of the
  claimant's spouse;
               (2)  after the claimant's death, three-fourths of the
  initial alternative annuity payment amount is payable to and
  throughout the life of the claimant's spouse;
               (3)  after the claimant's death, one-half of the
  initial alternative annuity payment amount is payable to and
  throughout the life of the claimant's spouse;
               (4)  if the claimant dies before 180 monthly
  alternative annuity payments have been made, the remainder of the
  180 payments are payable to the claimant's spouse or designated
  beneficiary; or
               (5)  if the claimant dies before 120 monthly
  alternative annuity payments have been made, the remainder of the
  120 payments are payable to the claimant's spouse or designated
  beneficiary.
         (d)  An election under this section must be made not later
  than the 45th day after the date on which the claimant files with
  the comptroller the application required by Section 103.051 on a
  form prescribed by the comptroller that:
               (1)  identifies the claimant's spouse or designated
  beneficiary according to Section 103.0536; and
               (2)  specifies the option selected under Subsection
  (c).
         (e)  A claimant who elects to receive alternative annuity
  payments under this section that are payable to the claimant and the
  claimant's spouse and survives the claimant's spouse is entitled to
  an increase in the amount of the claimant's monthly annuity
  payments so that the claimant's monthly payments equal the monthly
  payments the claimant would have received had the claimant not
  elected to receive the alternative annuity payments. The claimant
  is entitled to the increased payments beginning the month after the
  month in which the claimant's spouse dies and ending on the date of
  the claimant's death.
         Sec. 103.0536.  DESIGNATED BENEFICIARY. (a)  A claimant who
  selects a designated beneficiary to receive the remainder of the
  alternative annuity payments payable under Section 103.0535(c)(4)
  or (5) may designate:
               (1)  one designated beneficiary to receive the
  remainder of the annuity payments;
               (2)  two or more designated beneficiaries to receive
  the remainder of the annuity payments in equal amounts; or
               (3)  a primary designated beneficiary to receive the
  remainder of the annuity payments and an additional beneficiary.
         (b)  If a designated beneficiary designated under Subsection
  (a)(2) dies before the remainder of the annuity payments are paid,
  the comptroller shall recalculate the payments so that the
  remaining designated beneficiaries receive the remainder of the
  annuity payments in equal amounts.
         (c)  An additional beneficiary designated under Subsection
  (a)(3) takes the place of the primary beneficiary if the primary
  beneficiary dies before the remainder of the annuity payments are
  paid. A claimant may select not more than four additional
  beneficiaries and shall determine the order in which the additional
  beneficiaries are to succeed the primary beneficiary. The remainder
  of the annuity payments under this subsection are paid to one
  beneficiary at a time until the beneficiary dies or the remaining
  annuity payments are paid. If each additional beneficiary dies
  before the remainder of the annuity payments are paid, the
  remainder of the annuity payments are payable to the claimant's
  estate.
         (d)  A designated beneficiary under this section must be a
  dependent of the claimant. For purposes of this subsection,
  "dependent" includes a claimant's spouse, minor child, and any
  other person for whom the claimant is legally obligated to provide
  support, including alimony.
         SECTION 3.  Section 103.151(b), Civil Practice and Remedies
  Code, is amended to read as follows:
         (b)  The comptroller shall begin making annuity payments [to
  a claimant] under Section 103.053(a) or 103.0535 on the first
  anniversary of the date of payment of the compensation due under
  Section 103.052.
         SECTION 4.  Sections 103.154(a) and (b), Civil Practice and
  Remedies Code, are amended to read as follows:
         (a)  Except as provided by Subsection (c), compensation
  payments [to a person] under this chapter terminate if, after the
  date the claimant [person] becomes eligible for compensation under
  Section 103.001, the claimant [person] is convicted of a crime
  punishable as a felony.  Annuity payments to a claimant's spouse or
  designated beneficiary under this chapter terminate if, after the
  date the spouse or designated beneficiary begins receiving annuity
  payments, the spouse or designated beneficiary is convicted of a
  crime punishable as a felony.  Payments  [Compensation payments]
  terminate under this subsection on the date of the felony 
  [subsequent] conviction. If annuity payments to a designated
  beneficiary are terminated under this subsection, the remainder of
  the annuity payments are payable under Section 103.0536 as if the
  beneficiary died on the date of termination.
         (b)  Except as provided by Sections 103.0535 and 103.0536:
               (1)  annuity [Annuity] payments to a person under this
  chapter [Section 103.151(b)] terminate on the date of the person's
  death; and
               (2)  [. Any] payments scheduled to be paid after that
  date are credited to the state and may not be paid to any other
  person, including the person's surviving spouse, heirs, devisees,
  or beneficiaries under the person's will, or to the person's estate.
         SECTION 5.  (a)  Not later than December 1, 2015, the
  comptroller shall develop and make available the form described by
  Section 103.0535(d), Civil Practice and Remedies Code, as added by
  this Act.
         (b)  A person entitled to compensation under Section
  103.001(a), Civil Practice and Remedies Code, who started receiving
  annuity payments before the effective date of this Act may elect to
  receive any remaining payments as alternative annuity payments
  under Section 103.0535, Civil Practice and Remedies Code, as added
  by this Act, by filing the form described by Section 103.0535(d),
  Civil Practice and Remedies Code, as added by this Act, with the
  comptroller not later than the 45th day after the date the
  comptroller makes the form available. The value of alternative
  annuity payments elected under this section must be actuarially
  equivalent to the remaining value of the annuity payments the
  person would receive absent the election.
         SECTION 6.  This Act takes effect September 1, 2015.