Texas 2009 - 81st Regular

Texas House Bill HB2559 Compare Versions

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1	1	H.B. No. 2559
2	2
3	3
4	4	AN ACT
5	5	relating to the powers and duties of and benefits available under
6	6	the Employees Retirement System of Texas and to a chronic disease
7	7	prevention and wellness pilot program administered by the system
8	8	and the Department of State Health Services for department
9	9	employees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 615.045, Government Code, is amended by
12	12	amending Subsection (a) and adding Subsections (b-1) and (d) to
13	13	read as follows:
14	14	(a) Records of individuals listed by Section 615.003 and of
15	15	survivors eligible for benefits under this chapter that are in the
16	16	custody of the Employees Retirement System of Texas, [or] an
17	17	administering firm as defined by Section 1551.003, Insurance Code,
18	18	a carrier as defined by Section 1551.007, Insurance Code, or
19	19	another governmental agency acting with or on behalf of the
20	20	retirement system are confidential and not subject to public
21	21	disclosure, and the retirement system, administering firm,
22	22	carrier, or governmental agency is not required to accept or comply
23	23	with a request for a record or information about a record or to seek
24	24	an opinion from the attorney general, because the records are
25	25	exempt from the [public information] provisions of Chapter 552,
26	26	except as otherwise provided by this section.
27	27	(b-1) A record released or received by the retirement system
28	28	under this section may be transmitted electronically, including
29	29	through the use of an electronic signature or certification in a
30	30	form acceptable to the retirement system. An unintentional
31	31	disclosure to, or unauthorized access by, a third party related to
32	32	the transmission or receipt of information under this section is
33	33	not a violation by the retirement system of any law, including a law
34	34	or rule relating to the protection of confidential information.
35	35	(d) The retirement system has sole discretion in
36	36	determining whether a record is subject to this section. For
37	37	purposes of this section, a record includes any identifying
38	38	information about any person, living or deceased, who is or was:
39	39	(1) an individual listed in Section 615.003; or
40	40	(2) a survivor, heir, or beneficiary of an individual
41	41	listed in Section 615.003.
42	42	SECTION 2. Subchapter A, Chapter 811, Government Code, is
43	43	amended by adding Sections 811.010 and 811.011 to read as follows:
44	44	Sec. 811.010. VENUE. Subject to and without waiving the
45	45	retirement system's sovereign immunity or the official immunity of
46	46	the trustees, officers, and employees of the retirement system, the
47	47	venue for any action by or against the retirement system, the
48	48	trustees, officers, or employees of the retirement system, or an
49	49	administering firm, carrier, or other governmental agency acting in
50	50	cooperation with or on behalf of the retirement system is in Travis
51	51	County.
52	52	Sec. 811.011. STATUTE OF LIMITATIONS. Subject to and
53	53	without waiving the retirement system's sovereign immunity or the
54	54	official immunity of the trustees, officers, and employees of the
55	55	retirement system, unless specifically provided otherwise by
56	56	another statute, the statute of limitations for a claim against the
57	57	retirement system or a trustee, officer, or employee of the
58	58	retirement system is two years.
59	59	SECTION 3. Section 812.101, Government Code, is amended by
60	60	adding Subsection (c) to read as follows:
61	61	(c) For a law enforcement or custodial officer, the
62	62	withdrawal of accumulated contributions under Subsection (a)
63	63	includes all of the officer's contributions made under Section
64	64	815.402(h).
65	65	SECTION 4. Section 812.201(c), Government Code, is amended
66	66	to read as follows:
67	67	(c) A person who is retired from the elected class of
68	68	membership and who again holds a position included in that class may
69	69	elect to become a member again by filing notice with the retirement
70	70	system. Except as provided by Section 812.203(c) [812.203(e)],
71	71	when benefit payments are resumed, the retirement system shall
72	72	recompute the annuity selected at the time of the person's original
73	73	retirement to include the additional service established during
74	74	membership under this subsection.
75	75	SECTION 5. Subchapter C, Chapter 812, Government Code, is
76	76	amended by adding Section 812.205 to read as follows:
77	77	Sec. 812.205. WAITING PERIOD. A member who retires from the
78	78	employee class on or after May 31, 2009, may not return to work in a
79	79	position included in the employee class of membership before the
80	80	90th day after the date of the retiree's original retirement.
81	81	SECTION 6. Subchapter C, Chapter 812, Government Code, is
82	82	amended by adding Section 812.206 to read as follows:
83	83	Sec. 812.206. RETURN TO WORK SURCHARGE. (a) This section
84	84	applies only to a person who, on or after September 1, 2009:
85	85	(1) retires from the employee class; and
86	86	(2) is rehired as a retiree into a position that would
87	87	otherwise include membership in the employee class.
88	88	(b) For each month that a department or agency of this state
89	89	employs a person described by Subsection (a), the department or
90	90	agency shall remit to the retirement system an amount equal to the
91	91	amount of the state contribution that the department or agency
92	92	would remit for an active member employed in the person's position.
93	93	The amount remitted shall be deposited as provided by Section
94	94	815.309.
95	95	SECTION 7. Section 813.509, Government Code, is amended by
96	96	amending Subsections (d) and (e) and adding Subsection (k) to read
97	97	as follows:
98	98	(d) An individual who was a [A] member or employee on August
99	99	31, 2009, and who holds a position included in the employee class
100	100	may use sick leave creditable under this section to satisfy service
101	101	requirements for retirement under Section 814.104 or 814.107 if the
102	102	sick leave attributed to the eligibility requirements remains
103	103	otherwise unused on the last day of employment.
104	104	(e) A death benefit beneficiary [designee] under Section
105	105	814.302 may use the deceased member's sick leave credit under this
106	106	section to qualify for making a death benefit plan selection under
107	107	Section 814.302 if the decedent was a member or employee on August
108	108	31, 2009.
109	109	(k) A member who was not a member on the date hired and was
110	110	hired on or after September 1, 2009, or a death benefit beneficiary
111	111	of that member may use sick leave creditable under this section only
112	112	for purposes of calculating the member's or beneficiary's annuity.
113	113	SECTION 8. Section 813.511, Government Code, is amended by
114	114	amending Subsections (d) and (e) and adding Subsection (j) to read
115	115	as follows:
116	116	(d) An individual who was a [A] member or employee on August
117	117	31, 2009, and who holds a position included in the employee class
118	118	may use annual leave creditable under this section to satisfy
119	119	service requirements for retirement under Section 814.104 or
120	120	814.107 if the annual leave attributed to the eligibility
121	121	requirements remains otherwise unused on the last day of
122	122	employment.
123	123	(e) A death benefit beneficiary [designee] under Section
124	124	814.302 may use the deceased member's annual leave credit under
125	125	this section to qualify for making a death benefit plan selection
126	126	under Section 814.302 if the decedent was a member or employee on
127	127	August 31, 2009.
128	128	(j) A member who was not a member on the date hired and was
129	129	hired on or after September 1, 2009, or a death benefit beneficiary
130	130	of that member may use annual leave creditable under this section
131	131	only for purposes of calculating the member's or beneficiary's
132	132	annuity.
133	133	SECTION 9. Section 814.008(a), Government Code, is amended
134	134	to read as follows:
135	135	(a) A retiree receiving an optional service or disability
136	136	retirement annuity approved by the board of trustees or described
137	137	by Section 814.108(c)(1), [or] (c)(2), or (c)(5) may change the
138	138	designated beneficiary as provided by this section for the benefits
139	139	payable after the retiree's death.
140	140	SECTION 10. Subchapter A, Chapter 814, Government Code, is
141	141	amended by adding Section 814.012 to read as follows:
142	142	Sec. 814.012. DISPOSITION OF UNCLAIMED BENEFICIARY
143	143	BENEFITS. If, as of the fourth anniversary of the death of a member
144	144	or annuitant, the retirement system has not paid benefits and a
145	145	claim for benefits is not pending with the retirement system based
146	146	on the death of the member or annuitant, the accumulated
147	147	contributions of the deceased member or the balance of the reserve
148	148	for the deceased annuitant reverts to the benefit of the retirement
149	149	system. The retirement system shall transfer funds reverted under
150	150	this section to the state accumulation account.
151	151	SECTION 11. Section 814.104, Government Code, is amended by
152	152	amending Subsection (a) and adding Subsection (d) to read as
153	153	follows:
154	154	(a) Except as provided by Subsection (d) of this section,
155	155	Section 814.102, or by rule adopted under Section 813.304(d) or
156	156	803.202(a)(2), a member who has service credit in the retirement
157	157	system is eligible to retire and receive a service retirement
158	158	annuity if the member:
159	159	(1) is at least 60 years old and has at least 5 years of
160	160	service credit in the employee class; or
161	161	(2) has at least 5 years of service credit in the
162	162	employee class and the sum of the member's age and amount of service
163	163	credit in the employee class, including months of age and credit,
164	164	equals or exceeds the number 80.
165	165	(d) Except as provided by Section 814.102 or by rule adopted
166	166	under Section 813.304(d) or 803.202(a)(2), a member who was not a
167	167	member on the date hired, was hired on or after September 1, 2009,
168	168	and has service credit in the retirement system is eligible to
169	169	retire and receive a service retirement annuity if the member:
170	170	(1) is at least 65 years old and has at least 10 years
171	171	of service credit in the employee class; or
172	172	(2) has at least 5 years of service credit in the
173	173	employee class and the sum of the member's age and amount of service
174	174	credit in the employee class, including months of age and credit,
175	175	equals or exceeds the number 80.
176	176	SECTION 12. Section 814.105, Government Code, is amended by
177	177	adding Subsections (c) and (d) to read as follows:
178	178	(c) The standard service retirement annuity for service
179	179	credited in the employee class of membership for a member who was
180	180	not a member on the date hired, was hired on or after September 1,
181	181	2009, and is eligible to retire is an amount computed as the
182	182	member's average monthly compensation for service in that class for
183	183	the 48 highest months of compensation multiplied by 2.3 percent for
184	184	each year of service credit in that class.
185	185	(d) The standard service retirement annuity computed under
186	186	Subsection (c) is reduced by five percent for each year the member
187	187	retires before the member reaches age 60, with a maximum possible
188	188	reduction of 25 percent.
189	189	SECTION 13. Sections 814.107(c) and (d), Government Code,
190	190	are amended to read as follows:
191	191	(c) The standard combined service retirement annuity that
192	192	is payable under this section is based on retirement on or after the
193	193	attainment of the normal retirement age, which for purposes of this
194	194	section is the earlier of either the age of 50 or the age at which
195	195	the sum of the member's age and amount of service credit in the
196	196	employee class equals the number 80. A law enforcement or custodial
197	197	officer who retires before attaining the normal retirement age is
198	198	entitled only to an annuity that is actuarially reduced from the
199	199	annuity available at the normal retirement age to the law
200	200	enforcement or custodial officer whose service credit annuity
201	201	amount is based on [available at] the sum of the member's age and
202	202	amount of law enforcement or custodial officer service credit and
203	203	employee class service credit, and is not entitled to have the
204	204	annuity recalculated at normal retirement age. The standard or
205	205	reduced annuity is payable from the trust fund established by
206	206	Section 815.310 and the law enforcement and custodial officer
207	207	supplemental retirement fund in a ratio determined by the
208	208	retirement system.
209	209	(d) A member who retires under this section retires
210	210	simultaneously from the employee class of membership. [Benefits for
211	211	service in the employee class of membership become payable from the
212	212	trust fund established by Section 815.310 at the normal retirement
213	213	age under the computation provided by Section 814.105.] Optional
214	214	retirement annuities provided by Section 814.108 are available to a
215	215	member eligible to receive a service retirement annuity under this
216	216	section, but the same optional plan and beneficiary [designee] must
217	217	be selected for the portion of the annuity payable from the law
218	218	enforcement and custodial officer supplemental retirement fund and
219	219	the portion payable from the trust fund established by Section
220	220	815.310.
221	221	SECTION 14. Subchapter B, Chapter 814, Government Code, is
222	222	amended by adding Section 814.1075 to read as follows:
223	223	Sec. 814.1075. ADJUSTED BENEFITS FOR CERTAIN PEACE
224	224	OFFICERS. (a) This section applies only to a person hired on or
225	225	after September 1, 2009, who was not a member on the date hired.
226	226	(b) A member who has at least 20 years of service credit as a
227	227	law enforcement or custodial officer is eligible to retire
228	228	regardless of age and receive a standard service retirement annuity
229	229	as provided by this section.
230	230	(c) The standard service retirement annuity payable for at
231	231	least 20 years of service credit as a law enforcement or custodial
232	232	officer is an amount computed on the basis of the member's average
233	233	monthly compensation for the 48 highest months of compensation in
234	234	the employee class multiplied by the sum of the percentage factor
235	235	used in the computation of a standard service retirement annuity
236	236	under Section 814.105(c) plus 0.5 percent.
237	237	(d) The standard combined service retirement annuity that
238	238	is payable under this section is based on retirement at either the
239	239	age of 55 or the age at which the sum of the member's age and amount
240	240	of service credit in the employee class equals or exceeds the number
241	241	80. The annuity of a law enforcement or custodial officer who
242	242	retires before reaching the age of 55 under any eligibility
243	243	criteria is actuarially reduced by five percent for each year the
244	244	member retires before the member reaches age 55, with a maximum
245	245	possible reduction of 25 percent.
246	246	(e) An annuity payable under this section:
247	247	(1) is payable from the trust fund established by
248	248	Section 815.310 and from the law enforcement and custodial officer
249	249	supplemental retirement fund in a ratio determined by the
250	250	retirement system; and
251	251	(2) is based on the service credit available to the law
252	252	enforcement or custodial officer at the time of retirement and the
253	253	sum of the member's age and amount of law enforcement or custodial
254	254	officer service credit and employee class service credit.
255	255	(f) A member who retires under this section retires
256	256	simultaneously from the employee class of membership. Optional
257	257	retirement annuities provided by Section 814.108 are available to a
258	258	member eligible to receive a service retirement annuity under this
259	259	section, but the same optional plan and beneficiary must be
260	260	selected for the portion of the annuity payable from the law
261	261	enforcement and custodial officer supplemental retirement fund and
262	262	the portion payable from the trust fund established by Section
263	263	815.310.
264	264	(g) The amount payable from the law enforcement and
265	265	custodial officer supplemental retirement fund is reducible by the
266	266	amount paid from the trust fund established by Section 815.310 for
267	267	service as a law enforcement or custodial officer. The total
268	268	combined amount of an annuity under this section may not be less
269	269	than the authorized benefit under Subsection (c) subtracted by any
270	270	amount necessary because of the selection of an optional annuity,
271	271	because of retirement before the age of 55, or as provided by
272	272	Subsection (h).
273	273	(h) The standard combined service retirement annuity
274	274	payable for at least 20 years of service credit as a law enforcement
275	275	or custodial officer may not exceed 100 percent of the average
276	276	compensation computed under Subsection (c).
277	277	(i) For purposes of this section, service as a law
278	278	enforcement or custodial officer is creditable as provided by rule
279	279	of the board of trustees or on a month-to-month basis, whichever is
280	280	greater.
281	281	SECTION 15. Sections 814.108(c), (g), and (h), Government
282	282	Code, are amended to read as follows:
283	283	(c) An eligible person may select [any optional retirement
284	284	annuity approved by the board of trustees, or may select] one of the
285	285	following options, which provides [provide] that:
286	286	(1) after the retiree's death, the reduced annuity is
287	287	payable in the same amount throughout the life of the person
288	288	designated by the retiree before retirement;
289	289	(2) after the retiree's death, one-half of the reduced
290	290	annuity is payable throughout the life of the person designated by
291	291	the retiree before retirement;
292	292	(3) if the retiree dies before 60 monthly annuity
293	293	payments have been made, the remainder of the 60 payments are
294	294	payable to one or more beneficiaries [designees] or, if one does not
295	295	exist, to the retiree's estate; [or]
296	296	(4) if the retiree dies before 120 monthly annuity
297	297	payments have been made, the remainder of the 120 payments are
298	298	payable to one or more beneficiaries [designees] or, if one does not
299	299	exist, to the retiree's estate; or
300	300	(5) after the retiree's death, three-fourths of the
301	301	reduced annuity is payable throughout the life of the person
302	302	designated by the retiree before retirement.
303	303	(g) Except as provided by Section 814.008 or 814.1081, a
304	304	person who selected an optional service retirement annuity approved
305	305	by the board of trustees or an optional service retirement annuity
306	306	described by Subsection (c)(1), [or] (c)(2), or (c)(5) may not
307	307	change or revoke a beneficiary designation after the person's
308	308	effective date of retirement.
309	309	(h) A beneficiary designation that names a former spouse as
310	310	beneficiary for a guaranteed optional annuity described by
311	311	Subsection (c)(3) or (c)(4) is invalid unless the designation is
312	312	made after the date of the divorce.
313	313	SECTION 16. Section 814.1081(a), Government Code, is
314	314	amended to read as follows:
315	315	(a) A person who retired and selected an optional service
316	316	retirement annuity [approved by the board of trustees or an
317	317	optional service retirement annuity] described by Section
318	318	814.108(c)(1), [or] (c)(2), or (c)(5) may change the optional
319	319	annuity selection to the selection of a standard service retirement
320	320	annuity by filing with the retirement system a request to change the
321	321	annuity selection, if the retiree designated a person as
322	322	beneficiary who:
323	323	(1) was not at the time of designation and is not
324	324	currently the retiree's spouse or dependent child; or
325	325	(2) has executed since the designation a transfer and
326	326	release, approved by a court of competent jurisdiction pursuant to
327	327	a divorce decree, of the beneficiary's interest in the annuity and
328	328	is not currently the retiree's spouse or dependent child.
329	329	SECTION 17. Section 814.202, Government Code, is amended by
330	330	adding Subsection (g) to read as follows:
331	331	(g) A member otherwise eligible to receive a disability
332	332	retirement annuity may not receive the annuity if the member is:
333	333	(1) still earning a salary or wage from the employment
334	334	for which the member is claiming disability; or
335	335	(2) on leave without pay from the employment for which
336	336	the member is claiming disability.
337	337	SECTION 18. Section 814.203, Government Code, is amended to
338	338	read as follows:
339	339	Sec. 814.203. CERTIFICATION OF DISABILITY. (a) As soon as
340	340	practicable after an application for disability retirement is
341	341	filed, the medical board shall evaluate the medical and other
342	342	pertinent information regarding the member's application. If the
343	343	medical board finds that the member is mentally or physically
344	344	incapacitated for the further performance of duty, as supported by
345	345	substantial, objective, medical evidence, and that the incapacity
346	346	is likely to be permanent, the medical board shall issue a
347	347	certification of disability and submit it to the executive
348	348	director. A certification under this section is admissible in a
349	349	contested case under Section 815.511 without proving the medical
350	350	board as experts.
351	351	(b) For purposes of this subchapter, a member is
352	352	incapacitated for the further performance of duty if the member has
353	353	demonstrably sought and been denied workplace accommodation of the
354	354	disability in accordance with applicable law, and the member is
355	355	physically or mentally unable to continue to hold the position
356	356	occupied or to hold any other position offering comparable pay. The
357	357	employee's education, training, and experience must be considered
358	358	when making a determination of incapacity under this subchapter.
359	359	(c) For the purposes of this section, "comparable pay" means
360	360	80 percent or more of the member's final state employment base pay
361	361	before deductions for taxes or deferred compensation under state
362	362	and federal law, including any longevity or hazardous duty pay, but
363	363	excluding the monetary value of any insurance or retirement
364	364	benefits. Comparable pay may be adjusted by the retirement system
365	365	to account for adjustments in state pay rates.
366	366	SECTION 19. Subchapter C, Chapter 815, Government Code, is
367	367	amended by adding Section 815.214 to read as follows:
368	368	Sec. 815.214. SUBPOENA. Notwithstanding any other law, the
369	369	retirement system may issue a subpoena that conforms to Rule 176,
370	370	Texas Rules of Civil Procedure, including a preappeal investigative
371	371	subpoena or any subpoena otherwise authorized by the Texas Rules of
372	372	Civil Procedure, that the retirement system determines necessary to
373	373	protect the interests of a program or system administered by the
374	374	retirement system.
375	375	SECTION 20. Section 815.301, Government Code, is amended by
376	376	adding Subsections (g), (h), and (i) to read as follows:
377	377	(g) In awarding contracts to private professional
378	378	investment managers under Subsection (c) or otherwise acquiring
379	379	private financial services, the board of trustees shall make a good
380	380	faith effort to award contracts to or acquire services from
381	381	qualified emerging fund managers.
382	382	(h) For purposes of Subsection (g):
383	383	(1) "Emerging fund manager" means a private
384	384	professional investment manager that manages assets of not more
385	385	than $2 billion.
386	386	(2) "Private financial services" includes pension
387	387	fund management, consulting, investment advising, brokerage
388	388	services, hedge fund management, private equity fund management,
389	389	and real estate investment.
390	390	(i) The retirement system shall report to the board of
391	391	trustees on the methods and results of the system's efforts to hire
392	392	emerging fund managers, including data disaggregated by race,
393	393	ethnicity, gender, and fund size.
394	394	SECTION 21. Section 815.307, Government Code, as amended by
395	395	Chapters 1103 (H.B. 2240) and 1111 (H.B. 2359), Acts of the 78th
396	396	Legislature, Regular Session, 2003, is reenacted to read as
397	397	follows:
398	398	Sec. 815.307. DUTY OF CARE. The assets of the retirement
399	399	system shall be invested and reinvested without distinction as to
400	400	their source in accordance with Section 67, Article XVI, Texas
401	401	Constitution. A determination of whether the board of trustees has
402	402	exercised prudence with respect to an investment decision must be
403	403	made taking into consideration the investment of all assets of the
404	404	trust or all assets of the collective investment vehicle, as
405	405	applicable, over which the board has management and control, rather
406	406	than considering the prudence of a single investment of the trust or
407	407	the collective investment vehicle, as applicable.
408	408	SECTION 22. Section 815.402, Government Code, is amended by
409	409	amending Subsection (a) and adding Subsection (h) to read as
410	410	follows:
411	411	(a) Except as provided by Section 813.201, each payroll
412	412	period, each department or agency of the state shall cause to be
413	413	deducted from each member's compensation a contribution of:
414	414	(1) 6.5 [six] percent of the compensation if the
415	415	member is not a member of the legislature, provided that if the
416	416	state contribution to the retirement system is computed using a
417	417	percentage less than 6.5 percent, the member's contribution is
418	418	computed using a percentage equal to the percentage used to compute
419	419	the state contribution, which may not be less than six percent; or
420	420	(2) eight percent of the compensation if the member is
421	421	a member of the legislature.
422	422	(h) In addition to the contribution under Subsection
423	423	(a)(1), each department or agency of the state that employs a law
424	424	enforcement or custodial officer shall deduct an additional 0.5
425	425	percent contribution from that member's compensation, to be
426	426	deposited in the law enforcement and custodial officer supplemental
427	427	retirement fund, provided that, if the state contribution to the
428	428	law enforcement and custodial officer supplemental retirement fund
429	429	is computed using a percentage less than 0.5 percent, the member's
430	430	contribution is computed using a percentage equal to the percentage
431	431	used to compute the state contribution.
432	432	SECTION 23. Section 815.503, Government Code, is amended by
433	433	amending Subsections (a) and (b) and adding Subsections (b-1) and
434	434	(e) to read as follows:
435	435	(a) Records of members, annuitants, retirees,
436	436	beneficiaries, and alternate payees under retirement plans
437	437	administered by the retirement system that are in the custody of the
438	438	system or of an administering firm [administrator], carrier, or
439	439	other governmental agency acting in cooperation with or on behalf
440	440	of the retirement system are confidential and not subject to public
441	441	disclosure, and the retirement system, administering firm,
442	442	carrier, or governmental agency is not required to accept or comply
443	443	with a request for a record or information about a record or to seek
444	444	an opinion from the attorney general, because the records are
445	445	exempt from the [public access] provisions of Chapter 552, except
446	446	as otherwise provided by this section.
447	447	(b) Records may be released to a member, annuitant, retiree,
448	448	beneficiary, or alternate payee or to an authorized attorney,
449	449	family member, or representative acting on behalf of the member,
450	450	annuitant, retiree, beneficiary, or alternate payee. The
451	451	retirement system may release the records to an administering firm
452	452	[administrator], carrier, or agent or attorney acting on behalf of
453	453	the retirement system, to another governmental entity having a
454	454	legitimate need for the information to perform the purposes of the
455	455	retirement system, or to a party in response to a subpoena issued
456	456	under applicable law.
457	457	(b-1) A record released or received by the retirement system
458	458	under this section may be transmitted electronically, including
459	459	through the use of an electronic signature or certification in a
460	460	form acceptable to the retirement system. An unintentional
461	461	disclosure to, or unauthorized access by, a third party related to
462	462	the transmission or receipt of information under this section is
463	463	not a violation by the retirement system of any law, including a law
464	464	or rule relating to the protection of confidential information.
465	465	(e) The retirement system has sole discretion in
466	466	determining if a record is subject to this section. For purposes of
467	467	this section, a record includes any identifying information about a
468	468	person, living or deceased, who is or was a member, annuitant,
469	469	retiree, beneficiary, or alternate payee, under any retirement plan
470	470	or program administered by the retirement system.
471	471	SECTION 24. Section 815.512, Government Code, is amended to
472	472	read as follows:
473	473	Sec. 815.512. PROTECTION FROM DOUBLE OR MULTIPLE LIABILITY.
474	474	(a) The executive director may cause an action for interpleader [a
475	475	suit] concerning a claim to be filed on behalf of the retirement
476	476	system in a district court in Travis County to protect the system
477	477	from double or multiple liability if the executive director
478	478	determines that a claim may expose the retirement system to such
479	479	liability.
480	480	(b) A person may not pursue a counterclaim or other cause of
481	481	action against the retirement system, a trustee, officer, or
482	482	employee of the retirement system, or a carrier or administering
483	483	firm for the retirement system in connection with a transaction or
484	484	occurrence related to the interpleader action.
485	485	(c) A person who violates Subsection (b) is liable for the
486	486	costs and attorney's fees incurred by the retirement system, a
487	487	trustee, officer, or employee of the retirement system, or a
488	488	carrier or administering firm for the retirement system as a result
489	489	of the violation.
490	490	SECTION 25. Subchapter F, Chapter 815, Government Code, is
491	491	amended by adding Section 815.515 to read as follows:
492	492	Sec. 815.515. DISPOSITION OF UNCLAIMED CONTRIBUTIONS OF
493	493	FORMER MEMBERS. (a) Subject to Chapters 803 and 805, if the
494	494	retirement system has not received a request for a refund of the
495	495	accumulated contributions of a member in accordance with Subchapter
496	496	B, Chapter 812, before the seventh anniversary of the member's last
497	497	day of service, the retirement system may refund the accumulated
498	498	contributions to the member or the member's heirs. If the member or
499	499	the member's heirs cannot be found, the member's accumulated
500	500	contributions revert to the retirement system.
501	501	(b) The retirement system shall credit any amounts that
502	502	revert to the retirement system under Subsection (a) to the state
503	503	accumulation account.
504	504	(c) The board of trustees may adopt rules to implement and
505	505	administer this section.
506	506	SECTION 26. Section 837.003, Government Code, is amended by
507	507	adding Subsection (e) to read as follows:
508	508	(e) At the time a service retirement, disability
509	509	retirement, or death benefit annuity becomes payable, the
510	510	retirement system shall refund any contributions, interest, or
511	511	membership fees used to establish service credit that is not used in
512	512	computing the amount of the annuity.
513	513	SECTION 27. Section 838.106, Government Code, is amended by
514	514	adding Subsection (c) to read as follows:
515	515	(c) For the purpose of Subsection (a)(1), the term of a
516	516	member leaving judicial office ends not later than December 31
517	517	regardless of the date on which the member's successor takes the
518	518	oath of office.
519	519	SECTION 28. Section 839.103(a), Government Code, is amended
520	520	to read as follows:
521	521	(a) Instead of a service retirement annuity payable under
522	522	Section 839.102, a retiring member may elect to receive [an
523	523	optional service retirement annuity provided by the board of
524	524	trustees or] one of the following optional service retirement
525	525	annuities, actuarially reduced to an actuarially equivalent value
526	526	and consisting of:
527	527	(1) an annuity payable during the retiring member's
528	528	life and continuing after death in the same amount, throughout the
529	529	life of one person designated by the retiring member before
530	530	retirement;
531	531	(2) an annuity payable during the retiring member's
532	532	life and continuing after death in an amount equal to one-half of
533	533	the amount payable during the retiring member's life, throughout
534	534	the life of one person designated by the retiring member before
535	535	retirement;
536	536	(3) an annuity payable for the greater of the rest of
537	537	the retiring member's life or 60 months; [or]
538	538	(4) an annuity payable for the greater of the rest of
539	539	the retiring member's life or 120 months; or
540	540	(5) an annuity payable during the retiring member's
541	541	life and continuing after death in an amount equal to three-fourths
542	542	of the amount payable during the retiring member's life, throughout
543	543	the life of one person designated by the retiring member before
544	544	retirement.
545	545	SECTION 29. Section 840.303, Government Code, as amended by
546	546	Chapters 1103 (H.B. 2240) and 1111 (H.B. 2359), Acts of the 78th
547	547	Legislature, Regular Session, 2003, is reenacted to read as
548	548	follows:
549	549	Sec. 840.303. DUTY OF CARE. The assets of the retirement
550	550	system shall be invested and reinvested without distinction as to
551	551	their source in accordance with Section 67, Article XVI, Texas
552	552	Constitution. A determination of whether the board of trustees has
553	553	exercised prudence with respect to an investment decision must be
554	554	made taking into consideration the investment of all assets of the
555	555	trust or all assets of the collective investment vehicle, as
556	556	applicable, over which the board has management and control, rather
557	557	than considering the prudence of a single investment of the trust or
558	558	the collective investment vehicle, as applicable.
559	559	SECTION 30. Section 840.402, Government Code, is amended to
560	560	read as follows:
561	561	Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of
562	562	members, annuitants, retirees, beneficiaries, and alternate payees
563	563	of the retirement system are confidential and are not subject to
564	564	public disclosure and are exempt from the provisions of Chapter
565	565	552. Records maintained as confidential under this section may be
566	566	released or received in the manner provided by Section 815.503.
567	567	SECTION 31. Section 1551.003, Insurance Code, is amended by
568	568	adding Subdivision (10-a) to read as follows:
569	569	(10-a) "Participant" means an eligible individual who
570	570	participates in the group benefits program.
571	571	SECTION 32. Section 1551.004, Insurance Code, is amended to
572	572	read as follows:
573	573	Sec. 1551.004. DEFINITION OF DEPENDENT. (a) In this
574	574	chapter, "dependent" with respect to an individual eligible to
575	575	participate in the group benefits program under Section 1551.101 or
576	576	1551.102 means the individual's:
577	577	(1) spouse;
578	578	(2) unmarried child younger than 25 years of age;
579	579	(3) child of any age who the board of trustees
580	580	determines lives with or has the child's care provided by the
581	581	individual on a regular basis if:
582	582	(A) the child is mentally retarded or physically
583	583	incapacitated to the extent that the child is dependent on the
584	584	individual for care or support, as determined by the board of
585	585	trustees;
586	586	(B) the child's coverage under this chapter has
587	587	not lapsed; and
588	588	(C) the child is at least 25 years old and was
589	589	enrolled as a participant in the health benefits coverage under the
590	590	group benefits program on the date of the child's 25th birthday;
591	591	[and]
592	592	(4) child of any age who is unmarried, for purposes of
593	593	health benefit coverage under this chapter, on expiration of the
594	594	child's continuation coverage under the Consolidated Omnibus
595	595	Budget Reconciliation Act of 1985 (Pub. L. No. 99-272) and its
596	596	subsequent amendments; and
597	597	(5) ward, as that term is defined by Section 601, Texas
598	598	Probate Code.
599	599	(b) In this section, "child" includes:
600	600	(1) a natural child, [an] adopted child, [and a]
601	601	stepchild, or foster child; [,] or
602	602	(2) a [other] child who is related by blood or marriage
603	603	and was claimed as a dependent on the federal income tax return of
604	604	[is in a parent-child relationship with] an individual who is
605	605	eligible to participate in the group benefits program under Section
606	606	1551.101 or 1551.102 for the calendar year preceding the plan year
607	607	in which the child is first enrolled as a dependent under Subchapter
608	608	D, and for each subsequent year in which the child is enrolled as a
609	609	dependent.
610	610	(c) The requirement in Subsection (b)(2) that a child must
611	611	be claimed as a dependent on a federal income tax return in the
612	612	calendar year preceding the child's enrollment does not apply if:
613	613	(1) the child is born in the year in which the child is
614	614	first enrolled; or
615	615	(2) the participant can demonstrate good cause for not
616	616	claiming the child as a dependent in the preceding calendar year.
617	617	SECTION 33. Section 1551.063, Insurance Code, is amended by
618	618	amending Subsections (a) and (c) and adding Subsections (d-1) and
619	619	(f) to read as follows:
620	620	(a) The records of a participant in the group benefits
621	621	program in the custody of the Employees Retirement System of Texas
622	622	[board of trustees], or of an administering firm, [administrator
623	623	or] carrier, or another governmental entity acting on behalf of the
624	624	retirement system [board], are confidential and not subject to
625	625	disclosure, and the retirement system, administering firm,
626	626	carrier, or governmental entity [board] is not required to accept
627	627	or comply with a request for a record or information about a record
628	628	or to seek an opinion from the attorney general, because the records
629	629	are exempt from the [public access] provisions of Chapter 552,
630	630	Government Code, except as provided by this section.
631	631	(c) To accomplish the purposes of this chapter, the board of
632	632	trustees may release the records to:
633	633	(1) an administering firm [administrator], carrier,
634	634	agent, or attorney acting on behalf of the board;
635	635	(2) another governmental entity having a legitimate
636	636	need for the information to perform a function of the board of
637	637	trustees;
638	638	(3) an authorized medical provider of the participant;
639	639	or
640	640	(4) a party in response to a subpoena issued under
641	641	applicable law.
642	642	(d-1) A record released or received by the Employees
643	643	Retirement System of Texas under this section may be transmitted
644	644	electronically, including through the use of an electronic
645	645	signature or certification in a form acceptable to the retirement
646	646	system. An unintentional disclosure to, or unauthorized access by,
647	647	a third party related to the transmission or receipt of information
648	648	under this section is not a violation by the retirement system of
649	649	any law, including a law or rule relating to the protection of
650	650	confidential information.
651	651	(f) The Employees Retirement System of Texas has sole
652	652	discretion in determining if a record is subject to this section.
653	653	For purposes of this section, a record includes any identifying
654	654	information about a person, living or deceased, who is or was an
655	655	employee, annuitant, dependent, or participant in the group
656	656	benefits program.
657	657	SECTION 34. Section 1551.102(d), Insurance Code, is amended
658	658	to read as follows:
659	659	(d) An individual is eligible to participate in the group
660	660	benefits program as provided by Subsection (a) if [the individual]:
661	661	(1) the individual retires under the optional
662	662	retirement program established by Chapter 830, Government Code;
663	663	(2) the individual has [, with] at least 10 years of
664	664	eligible service credit; and
665	665	(3) [(2) receives or is eligible to receive an
666	666	annuity under that program and] the individual:
667	667	(A) is at least 65 years of age, or would have
668	668	been eligible to retire and receive a service or disability
669	669	retirement annuity from the Teacher Retirement System of Texas or
670	670	the Employees Retirement System of Texas in an amount such that the
671	671	sum of the person's age and amount of service credit, including
672	672	months of age and credit, equals or exceeds the number 80 or would
673	673	have been eligible to retire and receive a disability retirement
674	674	annuity from the Teacher Retirement System of Texas or the
675	675	Employees Retirement System of Texas, if the individual had not
676	676	elected to participate in the optional retirement program, and is
677	677	eligible to receive an annuity or periodic distribution of funds
678	678	from an account under the optional retirement program; or
679	679	(B) is disabled as determined by the Employees
680	680	Retirement System of Texas based on at least 10 years of eligible
681	681	service credit, and is receiving an annuity or periodic
682	682	distribution of funds from an account under the optional retirement
683	683	program.
684	684	SECTION 35. Section 1551.155, Insurance Code, is amended by
685	685	adding Subsections (c) and (d) to read as follows:
686	686	(c) A person who is the surviving spouse of an individual
687	687	described by Subsection (a) may secure group health coverage
688	688	without evidence of the person's insurability if the individual was
689	689	eligible to participate in the group benefits program under Section
690	690	1551.101 or 1551.102 but was not participating at the time of the
691	691	individual's death.
692	692	(d) A surviving spouse seeking group coverage under
693	693	Subsection (c):
694	694	(1) must apply for the coverage not later than the 30th
695	695	day after the date on which the individual who was eligible to
696	696	participate in the group benefits program dies; and
697	697	(2) shall pay for the coverage at the group rate as
698	698	provided by Subsection (b).
699	699	SECTION 36. The heading to Section 1551.156, Insurance
700	700	Code, is amended to read as follows:
701	701	Sec. 1551.156. COVERAGE OPTIONS FOR SURVIVING DEPENDENT
702	702	[WHEN THERE IS NO SURVIVING SPOUSE].
703	703	SECTION 37. Section 1551.156, Insurance Code, is amended by
704	704	adding Subsections (d) and (e) to read as follows:
705	705	(d) A person who is a surviving dependent of an annuitant
706	706	may secure group health coverage after the death of the annuitant
707	707	without evidence of the person's insurability if the annuitant was
708	708	eligible to participate in the group benefits program of a
709	709	retirement system named in this chapter but was not participating
710	710	at the time of the individual's death.
711	711	(e) A surviving dependent seeking group coverage under
712	712	Subsection (d):
713	713	(1) must apply for the coverage not later than the 30th
714	714	day after the date on which the individual who was eligible to
715	715	participate in the group benefits program dies; and
716	716	(2) shall pay for the coverage at the group rate as
717	717	provided by Subsection (b).
718	718	SECTION 38. Section 1551.354, Insurance Code, is amended by
719	719	amending Subsection (b) and adding Subsections (c) and (d) to read
720	720	as follows:
721	721	(b) The executive director may cause the filing of an action
722	722	for interpleader [a suit] concerning the claim in a district court
723	723	in Travis County on behalf of the Employees Retirement System of
724	724	Texas to protect the group coverage plan from double or multiple
725	725	liability.
726	726	(c) A person may not pursue a counterclaim or other cause of
727	727	action against the Employees Retirement System of Texas, a trustee,
728	728	officer, or employee of the retirement system, or a carrier or
729	729	administering firm for the retirement system in connection with a
730	730	transaction or occurrence related to the interpleader action.
731	731	(d) A person who violates Subsection (c) is liable for the
732	732	costs and attorney's fees incurred by the Employees Retirement
733	733	System of Texas, a trustee, officer, or employee of the retirement
734	734	system, or a carrier or administering firm for the retirement
735	735	system as a result of the violation.
736	736	SECTION 39. Subchapter H, Chapter 1551, Insurance Code, is
737	737	amended by adding Section 1551.362 to read as follows:
738	738	Sec. 1551.362. SUBPOENA. Notwithstanding any other law,
739	739	the Employees Retirement System of Texas may issue a subpoena that
740	740	conforms to Rule 176, Texas Rules of Civil Procedure, including a
741	741	preappeal investigative subpoena or any subpoena otherwise
742	742	authorized by the Texas Rules of Civil Procedure, that the
743	743	retirement system determines necessary to protect the interests of
744	744	a program or system administered by the retirement system.
745	745	SECTION 40. Section 1551.401, Insurance Code, is amended by
746	746	adding Subsection (g) to read as follows:
747	747	(g) Except as provided by Section 1551.259(d), the
748	748	retirement system may deposit to the credit of the fund any
749	749	unclaimed money on a finding that a good faith effort has been made
750	750	to locate the person entitled to the money.
751	751	SECTION 41. The following laws are repealed:
752	752	(1) Section 833.1035(c), Government Code;
753	753	(2) Section 833.104, Government Code;
754	754	(3) Section 835.1015(c), Government Code;
755	755	(4) Section 838.1035(c), Government Code;
756	756	(5) Section 838.104, Government Code;
757	757	(6) Section 840.1025(c), Government Code;
758	758	(7) Section 840.1027(c), Government Code;
759	759	(8) Section 1551.218(c), Insurance Code; and
760	760	(9) Section 1551.221, Insurance Code.
761	761	SECTION 42. Under Section 67, Article XVI, Texas
762	762	Constitution, the Employees Retirement System of Texas may
763	763	distribute a supplemental annuity payment on behalf of the State of
764	764	Texas using money appropriated from the general revenue fund to the
765	765	retirement system by an Act of the 81st Legislature, Regular
766	766	Session, 2009, that is enacted and becomes law.
767	767	SECTION 43. Sections 811.010 and 811.011, Government Code,
768	768	as added by this Act, and Sections 815.512, Government Code, and
769	769	1551.354, Insurance Code, as amended by this Act, apply only to an
770	770	action filed by or against the Employees Retirement System of
771	771	Texas, the trustees, officers, or employees of the retirement
772	772	system, or an administering firm, carrier, or other governmental
773	773	agency acting in cooperation with or on behalf of the retirement
774	774	system on or after the effective date of this Act. An action filed
775	775	before the effective date of this Act is governed by the law in
776	776	effect when the action was filed, and that law is continued in
777	777	effect for that purpose.
778	778	SECTION 44. Section 837.003(e), Government Code, as added
779	779	by this Act, applies only to a service retirement, disability
780	780	retirement, or death benefit annuity that becomes payable by the
781	781	Judicial Retirement System of Texas Plan Two on or after the
782	782	effective date of this Act. A service retirement, disability
783	783	retirement, or death benefit annuity that becomes payable by the
784	784	Judicial Retirement System of Texas Plan Two before the effective
785	785	date of this Act is governed by the law in effect on the date the
786	786	annuity becomes payable, and that law is continued in effect for
787	787	that purpose.
788	788	SECTION 45. Section 1551.004, Insurance Code, as amended by
789	789	this Act, applies only to an individual claimed as a dependent for a
790	790	plan year beginning on or after September 1, 2010. An individual
791	791	claimed as a dependent for a plan year that began before September
792	792	1, 2010, is governed by the law in effect when the individual was
793	793	claimed as a dependent, and that law is continued in effect for that
794	794	purpose.
795	795	SECTION 46. DEPARTMENT OF STATE HEALTH SERVICES: STATE
796	796	EMPLOYEE PILOT PROGRAM. The Department of State Health Services
797	797	and the Employees Retirement System of Texas may enter into an
798	798	interagency contract to establish a state employee pilot program
799	799	consistent with federal guidelines for chronic disease prevention
800	800	and wellness initiatives. To support the pilot program the
801	801	Department of State Health Services may use funds received from the
802	802	American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
803	803	or other such federal funds available to the Department of State
804	804	Health Services.
805	805	SECTION 47. This Act takes effect September 1, 2009.
806	806	______________________________ ______________________________
807	807	President of the Senate Speaker of the House
808	808	I certify that H.B. No. 2559 was passed by the House on May
809	809	11, 2009, by the following vote: Yeas 141, Nays 0, 2 present, not
810	810	voting; that the House concurred in Senate amendments to H.B. No.
811	811	2559 on May 29, 2009, by the following vote: Yeas 100, Nays 43, 2
812	812	present, not voting; and that the House adopted H.C.R. No. 292
813	813	authorizing certain corrections in H.B. No. 2559 on June 1, 2009, by
814	814	the following vote: Yeas 141, Nays 0, 1 present, not voting.
815	815	______________________________
816	816	Chief Clerk of the House
817	817	I certify that H.B. No. 2559 was passed by the Senate, with
818	818	amendments, on May 26, 2009, by the following vote: Yeas 26, Nays
819	819	5; and that the Senate adopted H.C.R. No. 292 authorizing certain
820	820	corrections in H.B. No. 2559 on June 1, 2009, by the following
821	821	vote: Yeas 31, Nays 0.
822	822	______________________________
823	823	Secretary of the Senate
824	824	APPROVED: __________________
825	825	Date
826	826	__________________
827	827	Governor