Texas 2013 - 83rd Regular

Texas House Bill HB3357 Compare Versions

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1	1	By: Callegari, Murphy (Senate Sponsor - Duncan) H.B. No. 3357
2	2	(In the Senate - Received from the House May 6, 2013;
3	3	May 7, 2013, read first time and referred to Committee on State
4	4	Affairs; May 17, 2013, reported favorably, as amended, by the
5	5	following vote: Yeas 9, Nays 0; May 17, 2013, sent to printer.)
6	6
7	7
8	8	COMMITTEE AMENDMENT NO. 1 By: Duncan
9	9	Amend H.B. 3357 as follows:
10	10	(1) Strike SECTION 6 of the bill, adding Section 825.103(h),
11	11	Government Code (page 3, lines 63-67).
12	12	(2) In SECTION 9 of the bill (page 5, lines 4-10), strike
13	13	amended Section 825.212(c), Government Code, and substitute the
14	14	following:
15	15	(c) This chapter modifies the common law of conflict of
16	16	interests as applied to trustees, employees, and contracts of the
17	17	retirement system to the extent that violations of the common law of
18	18	conflict of interests do not void retirement system contracts. The
19	19	retirement system shall by rule or policy adopt procedures for
20	20	disclosing and curing violations of the common law of conflict of
21	21	interests and any such rule or policy may specify time periods in
22	22	which disclosures and cures must be completed [An employee who has a
23	23	business or commercial relationship that could reasonably be
24	24	expected to diminish the employee's independence of judgment in the
25	25	performance of the employee's responsibilities to the retirement
26	26	system shall disclose that relationship in writing to a person
27	27	designated by the board].
28	28	(3) Strike SECTION 22 of the bill, repealing certain
29	29	provisions of the Government Code, and substitute the following
30	30	appropriately numbered SECTION:
31	31	SECTION 22. The following laws are repealed:
32	32	(1) Section 825.211, Government Code;
33	33	(2) Sections 825.212(d), (e), (f), (g), and (h),
34	34	Government Code;
35	35	(3) sections 825.402(b), (c), and (d), Government
36	36	Code;
37	37	(4) Section 825.404(d), Government Code;
38	38	(5) Section 825.411, Government Code; and
39	39	(6) Section 1579.103, Insurance Code.
40	40	(4) Strike SECTION 23 of the bill, providing an effective
41	41	date for the Act, and substitute the following appropriately
42	42	numbered SECTION:
43	43	SECTION 23. EFFECTIVE DATE. (a) Except as provided by
44	44	Subsection (b) of this section, this Act takes effect immediately
45	45	if it receives a vote of two-thirds of all the members elected to
46	46	each house, as provided by Section 39, Article III, Texas
47	47	Constitution. If this Act does not receive the vote necessary for
48	48	immediate effect, this Act takes effect September 1, 2013.
49	49	(b) Sections 824.1012 and 824.1013, Government Code, as
50	50	amended by this Act, take effect September 1, 2013.
51	51	(5) Renumber SECTIONS of the bill appropriately.
52	52	COMMITTEE AMENDMENT NO. 2 By: Duncan
53	53	Amend H.B. No. 3357 (engrossed version) by inserting the
54	54	following new SECTIONS, appropriately numbered, and renumbering
55	55	the subsequent SECTIONS of the bill accordingly:
56	56	SECTION ____. Section 12.055, Education Code, is amended to
57	57	read as follows:
58	58	Sec. 12.055. APPLICABILITY OF LAWS AND RULES TO CAMPUS OR
59	59	PROGRAM GRANTED CHARTER. (a) A campus or program for which a
60	60	charter is granted under this subchapter is subject to federal and
61	61	state laws and rules governing public schools, except that the
62	62	campus or program is subject to this code and rules adopted under
63	63	this code only to the extent the applicability to a campus or
64	64	program for which a charter is granted under this subchapter of a
65	65	provision of this code or a rule adopted under this code is
66	66	specifically provided.
67	67	(b) A school district may contract with another district or
68	68	an open-enrollment charter holder for services at a campus charter.
69	69	An employee of the district or open-enrollment charter holder
70	70	providing contracted services to a campus charter is eligible for
71	71	membership in and benefits from the Teacher Retirement System of
72	72	Texas if the employee would be eligible for membership and benefits
73	73	if holding the same position at the employing district or
74	74	open-enrollment charter school operated by the charter holder.
75	75	SECTION ____. Section 12.057, Education Code, is amended by
76	76	adding Subsection (b-1) to read as follows:
77	77	(b-1) An employee of a charter holder, as defined by Section
78	78	12.1012, who is employed on a campus or in a program granted a
79	79	charter under this subchapter and who qualifies for membership in
80	80	the Teacher Retirement System of Texas shall be covered under the
81	81	system in the same manner and to the same extent as a qualified
82	82	employee of an independent school district who is employed on a
83	83	regularly operating campus or in a regularly operating program.
84	84	A BILL TO BE ENTITLED
85	85	AN ACT
86	86	relating to the administration of and benefits payable by the
87	87	Teacher Retirement System of Texas.
88	88	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
89	89	SECTION 1. Sections 551.130(e) and (j), Government Code,
90	90	are amended to read as follows:
91	91	(e) The location where a quorum is physically present must
92	92	be open to the public during the open portions of a telephone
93	93	conference call meeting. The open portions of the meeting must be
94	94	audible to the public at the location where the quorum is present
95	95	and be recorded [tape-recorded] at that location. The [tape]
96	96	recording shall be made available to the public.
97	97	(j) A person who is not a member of the board may [not] speak
98	98	at the meeting from a remote location by telephone conference
99	99	call[, except as provided by Section 551.129].
100	100	SECTION 2. The heading to Section 824.1012, Government
101	101	Code, is amended to read as follows:
102	102	Sec. 824.1012. POST-RETIREMENT CHANGE IN RETIREMENT
103	103	PAYMENT PLAN [REVOCATION OF BENEFICIARY DESIGNATION] FOR CERTAIN
104	104	RETIREMENT BENEFIT OPTIONS.
105	105	SECTION 3. Sections 824.1012(a) and (b), Government Code,
106	106	are amended to read as follows:
107	107	(a) As an exception to Section 824.101(c), a retiree who
108	108	selected an optional service retirement annuity under Section
109	109	824.204(c)(1), (c)(2), or (c)(5) or an optional disability
110	110	retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5)
111	111	and who has received at least one payment under the plan selected
112	112	may change the optional annuity selection made by the retiree to a
113	113	standard service or disability retirement annuity as provided for
114	114	in this section. If the beneficiary is the spouse or former spouse
115	115	of the retiree, the beneficiary must sign a notarized consent to the
116	116	change, or [may revoke the designation of the beneficiary to
117	117	receive the annuity on the death of the retiree, if] a court in a
118	118	divorce proceeding involving the retiree and beneficiary must
119	119	approve or order the change [approves or orders the revocation] in
120	120	the divorce decree or acceptance of a property settlement [or if the
121	121	beneficiary is the spouse, a former spouse, or an adult child of the
122	122	retiree and signs a notarized consent to the revocation]. The
123	123	change in plan selection [revocation] takes effect when the
124	124	retirement system receives it.
125	125	(b) A change [revocation] described by Subsection (a)
126	126	cancels the optional annuity selection made by the retiree,
127	127	effective with the beginning of payments of the annuity as
128	128	recomputed under this subsection. The retiree is entitled to
129	129	receive payments of a standard service or disability retirement
130	130	annuity, as applicable, reduced for early retirement, if
131	131	applicable, beginning with the payment for the month after the
132	132	month in which the retirement system receives the notice of change
133	133	[revocation] and ending on the death of the retiree. The change
134	134	also cancels the designation of beneficiary with respect to the
135	135	optional annuity benefit but does not cancel a designation with
136	136	respect to any other benefit payable by the retirement system on the
137	137	death of the retiree.
138	138	SECTION 4. Section 824.1013(b), Government Code, is amended
139	139	to read as follows:
140	140	(b) If the beneficiary designated at the time of the
141	141	retiree's retirement is the spouse [or former spouse] of the
142	142	retiree at the time of the designation:
143	143	(1) the spouse [or former spouse] must give written,
144	144	notarized consent to the change; [or]
145	145	(2) if the parties divorce after the designation, the
146	146	former spouse who was designated beneficiary must give written,
147	147	notarized consent to the change; or
148	148	(3) a court with jurisdiction over the marriage must
149	149	have ordered the change.
150	150	SECTION 5. Sections 825.002(c), (e), and (e-1), Government
151	151	Code, are amended to read as follows:
152	152	(c) The governor shall appoint two members of the board from
153	153	a slate of three members of the retirement system who are currently
154	154	employed by a public school district, charter school, or regional
155	155	education service center and who have been nominated in accordance
156	156	with Subsection (f) by the members of the retirement system whose
157	157	most recent credited service was performed for a public school
158	158	district, charter school, or regional education service center.
159	159	The two members hold office for staggered terms.
160	160	(e) The governor shall appoint one member of the board from
161	161	a slate of three persons who have been nominated in accordance with
162	162	Subsection (f) by the following groups collectively:
163	163	(1) members of the retirement system whose most recent
164	164	credited service was performed for an institution of higher
165	165	education;
166	166	(2) members of the retirement system whose most recent
167	167	credited service was performed for a public school district,
168	168	charter school, or regional education service center; and
169	169	(3) persons who have retired and are receiving
170	170	benefits from the retirement system.
171	171	(e-1) A person may be nominated for appointment to the board
172	172	under Subsection (e) if the person is:
173	173	(1) a member of the retirement system who is currently
174	174	employed by an institution of higher education;
175	175	(2) a member of the retirement system who is currently
176	176	employed by a public school district, charter school, or regional
177	177	education service center; or
178	178	(3) a former member of the retirement system who has
179	179	retired and is receiving benefits from the system.
180	180	SECTION 6. Section 825.103, Government Code, is amended by
181	181	adding Subsection (h) to read as follows:
182	182	(h) The board of trustees may accept on behalf of the
183	183	retirement system gifts of money, services, or other property from
184	184	any public or private source.
185	185	SECTION 7. Section 825.115, Government Code, is amended by
186	186	adding Subsections (d) and (e) to read as follows:
187	187	(d) The board of trustees or its audit committee may conduct
188	188	a closed meeting in accordance with Subchapter E, Chapter 551, with
189	189	the retirement system's internal or external auditors to discuss:
190	190	(1) governance, risk management or internal control
191	191	weaknesses, known or suspected compliance violations or fraud,
192	192	status of regulatory reviews or investigations, or identification
193	193	of potential fraud risk areas and audits for the annual internal
194	194	audit plan; or
195	195	(2) the auditors' ability to perform duties in
196	196	accordance with the Internal Audit Charter, relevant auditing
197	197	standards, and Chapter 2102.
198	198	(e) The board of trustees may conduct a closed meeting in
199	199	accordance with Subchapter E, Chapter 551, to deliberate or confer
200	200	with one or more employees, consultants, or legal counsel of the
201	201	retirement system or a third party regarding a procurement to be
202	202	awarded by the board of trustees if, before conducting the closed
203	203	meeting, a majority of the trustees in an open meeting vote that
204	204	deliberating or conferring in an open meeting would have a
205	205	detrimental effect on the position of the retirement system in
206	206	negotiations with a third person. The board of trustees is required
207	207	to vote or take final action on the procurement in an open meeting.
208	208	SECTION 8. Section 825.204, Government Code, is amended by
209	209	adding Subsection (d) to read as follows:
210	210	(d) The medical board is not subject to subpoena regarding
211	211	findings it makes in assisting the executive director or board of
212	212	trustees under this section, and its members may not be held liable
213	213	for any opinions, conclusions, or recommendations made under this
214	214	section.
215	215	SECTION 9. Sections 825.212(a), (b), and (c), Government
216	216	Code, are amended to read as follows:
217	217	(a) The [In addition to any other requirements provided by
218	218	law, the] board of trustees shall adopt a code or codes of [enforce
219	219	an] ethics, including standards of ethical conduct and disclosure
220	220	requirements, applicable to:
221	221	(1) trustees;
222	222	(2) [policy as provided by this section for]
223	223	employees; and
224	224	(3) any contractors or any categories of contractors
225	225	that the board of trustees determines provide:
226	226	(A) advice or opinion [of and consultants and
227	227	advisors] to the retirement system that is the basis for a
228	228	significant decision or action by or on behalf of the retirement
229	229	system; or
230	230	(B) significant services to the retirement
231	231	system that relate to the administration and operation of the
232	232	retirement system.
233	233	(b) In any code of ethics adopted under this section, [Each
234	234	employee of the retirement system who exercises significant
235	235	decisionmaking or fiduciary authority, as determined by] the board
236	236	of trustees may:
237	237	(1) impose enhanced[, shall file financial]
238	238	disclosure requirements on employees that [statements with a person
239	239	designated by] the board of trustees determines exercise
240	240	significant fiduciary authority;
241	241	(2) impose disclosure requirements on contractors for
242	242	expenditures on behalf of retirement system trustees or employees
243	243	in amounts equal to or greater than a minimum amount considered
244	244	material by the board of trustees; or
245	245	(3) address topics related to ethical conduct,
246	246	including prohibited conduct, conflicts of interest, waivers of
247	247	conflicts of interest, remedies for conflicts of interest, and
248	248	sanctions. [The content of a financial disclosure statement must
249	249	comply substantially with the requirements of Subchapter B, Chapter
250	250	572. A statement must be filed not later than the 30th day after the
251	251	date a person is employed in a significant decisionmaking or
252	252	fiduciary position and annually after employment not later than
253	253	April 30. The filing deadline may be postponed by the executive
254	254	director for not more than 60 days on written request or for an
255	255	additional period for good cause, as determined by the chairman of
256	256	the board. The retirement system shall maintain a financial
257	257	disclosure statement for at least five years after the date of its
258	258	filing.]
259	259	(c) This section preempts the common law of conflicts of
260	260	interest as applied to trustees, employees, and contracts of [An
261	261	employee who has a business or commercial relationship that could
262	262	reasonably be expected to diminish the employee's independence of
263	263	judgment in the performance of the employee's responsibilities to]
264	264	the retirement system [shall disclose that relationship in writing
265	265	to a person designated by the board].
266	266	SECTION 10. Section 825.312(b), Government Code, is amended
267	267	to read as follows:
268	268	(b) The retirement system shall pay from the account all
269	269	administrative expenses of the retirement system [that exceed the
270	270	amounts appropriated under Section 825.404(d) and] that are
271	271	required to perform the fiduciary duties of the board.
272	272	SECTION 11. The heading to Section 825.313, Government
273	273	Code, is amended to read as follows:
274	274	Sec. 825.313. TRANSFERS FROM INTEREST [OR STATE
275	275	CONTRIBUTION] ACCOUNT.
276	276	SECTION 12. Section 825.313(d), Government Code, is amended
277	277	to read as follows:
278	278	(d) The board of trustees, by resolution recorded in its
279	279	minutes, may transfer from the interest account to the expense
280	280	account an amount necessary to cover the expenses of the retirement
281	281	system for the fiscal year [that exceed the amount of operating
282	282	expenses appropriated under Section 825.404(d) and] that are
283	283	required to perform the fiduciary duties of the board[, including
284	284	the expense of servicing mortgages insured by the Federal Housing
285	285	Administration under the National Housing Act (12 U.S.C. Section
286	286	1701 et seq.)].
287	287	SECTION 13. Section 825.314, Government Code, is amended to
288	288	read as follows:
289	289	Sec. 825.314. USE [AND REPORTING] OF STATE CONTRIBUTIONS
290	290	[AND OTHER APPROPRIATIONS AND ASSETS]. [(a)] The retirement
291	291	system shall use all assets contributed by the state[, other than
292	292	operating expenses appropriated under Section 825.404(d),] to pay
293	293	benefits authorized by this subtitle.
294	294	[(b) The staff of the retirement system shall report to the
295	295	board at each board meeting the amounts and uses since the preceding
296	296	board meeting of any money expended by the system from amounts
297	297	transferred under Section 825.313(d) and include an explanation of
298	298	why the amounts were needed to perform the fiduciary duties of the
299	299	board. The retirement system annually shall prepare and issue to
300	300	each contributing member and annuitant and to the governor,
301	301	lieutenant governor, and speaker of the house of representatives a
302	302	summary of the reports presented during the preceding year to the
303	303	board.]
304	304	SECTION 14. The heading to Section 825.404, Government
305	305	Code, is amended to read as follows:
306	306	Sec. 825.404. COLLECTION OF STATE CONTRIBUTIONS [AND
307	307	APPROPRIATED OPERATING EXPENSES].
308	308	SECTION 15. Section 825.404(e), Government Code, is amended
309	309	to read as follows:
310	310	(e) All money appropriated by the state to the retirement
311	311	system shall be paid to the state contribution account in equal
312	312	monthly installments as provided by Section 403.093(c)[,
313	313	Government Code, except money appropriated under Subsection (d),
314	314	which remains in the general revenue fund until expenses are
315	315	approved under Chapter 2103].
316	316	SECTION 16. Section 825.410(b), Government Code, is amended
317	317	to read as follows:
318	318	(b) Service credit shall be established pursuant to the
319	319	following provisions:
320	320	(1) The retirement system shall credit a member's
321	321	payments made under this section to a suspense account in the trust
322	322	fund until the sum of the payments equals the amount required for
323	323	one year of service credit, at which time the retirement system
324	324	shall deposit the payments in the appropriate accounts in the trust
325	325	fund and grant the applicable amount of service credit. No credit
326	326	shall be established for service pursuant to Section 823.501 [or
327	327	Section 825.403] until a lump sum has been paid or all payroll
328	328	deduction or installment payments have been completed.
329	329	(2) No credit shall be established for other service
330	330	when the cost of establishing the service has been determined by
331	331	using withdrawn service to be reinstated pursuant to Section
332	332	823.501 [or previously unreported service to be established
333	333	pursuant to Section 825.403] until a lump sum or all payroll
334	334	deductions or installments for the withdrawn [or previously
335	335	unreported] service have been paid.
336	336	(3) All other service shall be credited when
337	337	sufficient payroll deductions or installments have been completed
338	338	to satisfy the cost requirements for a year of service.
339	339	SECTION 17. Sections 825.507(a), (b), (c), (f), and (g),
340	340	Government Code, are amended to read as follows:
341	341	(a) Records of a participant and information about the
342	342	records of a participant that are in the custody of the retirement
343	343	system or of an administrator, carrier, attorney, consultant, or
344	344	governmental agency, including the comptroller, acting in
345	345	cooperation with or on behalf of the retirement system are
346	346	confidential and not subject to public disclosure [in a form that
347	347	would identify an individual and are exempt from the public access
348	348	provisions of Chapter 552, except as otherwise provided by this
349	349	section]. Because the records and information described by this
350	350	section [subsection] are exempt from the public access provisions
351	351	of Chapter 552, the retirement system or an administering firm,
352	352	carrier, attorney, consultant, or governmental agency, including
353	353	the comptroller, acting in cooperation with or on behalf of the
354	354	retirement system, is not required to accept or comply with a
355	355	request for a record or information about a record or to seek an
356	356	opinion from the attorney general, except as otherwise provided by
357	357	this section.
358	358	(b) The retirement system may release records of a
359	359	participant, or information about the records of a participant,
360	360	including a participant to which Chapter 803 applies, to:
361	361	(1) the participant or the participant's attorney or
362	362	guardian or another person who the executive director determines is
363	363	acting on behalf of the participant;
364	364	(2) the executor or administrator of the deceased
365	365	participant's estate, including information relating to the
366	366	deceased participant's beneficiary, or if an executor or
367	367	administrator of the deceased participant's estate has not been
368	368	named, a person or entity who the executive director determines is
369	369	acting in the interest of the deceased participant's estate, or an
370	370	heir, legatee, or devisee of the deceased participant;
371	371	(3) a spouse or former spouse of the participant if the
372	372	executive director determines that the information is relevant to
373	373	the spouse's or former spouse's interest in member accounts,
374	374	benefits, or other amounts payable by the retirement system;
375	375	(4) an administrator, carrier, consultant, attorney,
376	376	or agent acting on behalf of the retirement system;
377	377	(5) a governmental entity, an employer, or the
378	378	designated agent of an employer, only to the extent the retirement
379	379	system needs to share the information to perform the purposes of the
380	380	retirement system, as determined by the executive director;
381	381	(6) a person authorized by the participant in writing
382	382	to receive the information;
383	383	(7) a federal, state, or local criminal law
384	384	enforcement agency that requests a record for a law enforcement
385	385	purpose;
386	386	(8) the attorney general to the extent necessary to
387	387	enforce child support; or
388	388	(9) a party in response to a subpoena issued under
389	389	applicable law if the executive director determines that the
390	390	participant will have a reasonable opportunity to contest the
391	391	subpoena.
392	392	(c) The records of a participant and information about the
393	393	records remain confidential after release to a person as authorized
394	394	by this section. This section does not prevent the retirement
395	395	system or administering firm or carrier acting in cooperation with
396	396	or on behalf of the retirement system from disclosing or confirming
397	397	[disclosure or confirmation], on an individual basis, [of] the
398	398	status or identity of a participant as a member, former member,
399	399	retiree, deceased member or retiree, beneficiary, or alternate
400	400	payee of the retirement system.
401	401	(f) This section does not authorize the retirement system to
402	402	compile or disclose a list of participants' names, addresses,
403	403	including e-mail addresses, or social security numbers unless the
404	404	executive director determines that a compilation or disclosure is
405	405	necessary to administer the retirement system.
406	406	(g) In this section, "participant" means a member, former
407	407	member, retiree, annuitant, beneficiary, or alternate payee of the
408	408	retirement system, or an employee or contractor of an employer
409	409	covered by the retirement system for whom records were received by
410	410	the retirement system for the purpose of administering the terms of
411	411	the plan, including for audit or investigative purposes.
412	412	SECTION 18. Section 825.515(a), Government Code, is amended
413	413	to read as follows:
414	414	(a) At least annually, the retirement system shall acquire
415	415	and maintain records identifying members and specifying the types
416	416	of positions they hold as members. Employers shall provide to the
417	417	retirement system information specifying the type of position held
418	418	by each member [The type of position shall be identified] as
419	419	Administrative/Professional, Teacher/Full-Time Librarian,
420	420	Support, Bus Driver, or Peace Officer. Employers shall also
421	421	provide to the retirement system the work e-mail address for each
422	422	member. For each member identified as a Peace Officer, the records
423	423	must specify whether the member is an employee of an institution of
424	424	higher education or of a public school that is not an institution of
425	425	higher education. An employer shall provide the information
426	426	required by this section in the form and manner specified by the
427	427	retirement system.
428	428	SECTION 19. Section 1575.003(1), Insurance Code, is amended
429	429	to read as follows:
430	430	(1) "Dependent" means:
431	431	(A) the spouse of a retiree;
432	432	(B) a [an unmarried] child of a retiree or
433	433	deceased active member if the child is younger than 26 [25] years of
434	434	age, including:
435	435	(i) an adopted child or child who is
436	436	lawfully placed for legal adoption;
437	437	(ii) a foster child, stepchild, or other
438	438	child who is in a regular parent-child relationship; or
439	439	(iii) a [recognized] natural child;
440	440	(C) a retiree's [recognized] natural child,
441	441	adopted child, foster child, stepchild, or other child who is in a
442	442	regular parent-child relationship and who lives with or has his or
443	443	her care provided by the retiree or surviving spouse on a regular
444	444	basis regardless of the child's age, if the child has a mental
445	445	disability or is physically incapacitated to an extent that the
446	446	child is dependent on the retiree or surviving spouse for care or
447	447	support, as determined by the trustee; or
448	448	(D) a deceased active member's [recognized]
449	449	natural child, adopted child, foster child, stepchild, or other
450	450	child who is in a regular parent-child relationship, without regard
451	451	to the age of the child, if, while the active member was alive, the
452	452	child:
453	453	(i) lived with or had the child's care
454	454	provided by the active member on a regular basis; and
455	455	(ii) had a mental disability or was
456	456	physically incapacitated to an extent that the child was dependent
457	457	on the active member or surviving spouse for care or support, as
458	458	determined by the trustee.
459	459	SECTION 20. Section 1575.205(c), Insurance Code, is amended
460	460	to read as follows:
461	461	(c) The trustee may spend a part of the money received for
462	462	the group program to offset a part of the costs for optional
463	463	coverage paid by retirees if [the expenditure does not reduce the
464	464	period] the group program is projected to remain financially
465	465	solvent during the currently funded [by more than one year in a]
466	466	biennium.
467	467	SECTION 21. Section 1579.004, Insurance Code, is amended to
468	468	read as follows:
469	469	Sec. 1579.004. DEFINITION OF DEPENDENT. In this chapter,
470	470	"dependent" means:
471	471	(1) a spouse of a full-time employee or part-time
472	472	employee;
473	473	(2) a [an unmarried] child of a full-time or part-time
474	474	employee if the child is younger than 26 [25] years of age,
475	475	including:
476	476	(A) an adopted child or child who is lawfully
477	477	placed for adoption;
478	478	(B) a foster child, stepchild, or other child who
479	479	is in a regular parent-child relationship; and
480	480	(C) a [recognized] natural child;
481	481	(3) a full-time or part-time employee's [recognized]
482	482	natural child, adopted child, foster child, stepchild, or other
483	483	child who is in a regular parent-child relationship and who lives
484	484	with or has his or her care provided by the employee or the
485	485	surviving spouse on a regular basis, regardless of the child's age,
486	486	if the child has a mental disability or is physically incapacitated
487	487	to an extent that the child is dependent on the employee or
488	488	surviving spouse for care or support, as determined by the board of
489	489	trustees; and
490	490	(4) notwithstanding any other provision of this code,
491	491	any other dependent of a full-time or part-time employee specified
492	492	by rules adopted by the board of trustees.
493	493	SECTION 22. The following laws are repealed:
494	494	(1) Section 825.211, Government Code;
495	495	(2) Sections 825.212(d), (e), (f), (g), and (h),
496	496	Government Code;
497	497	(3) Sections 825.402(b), (c), and (d), Government
498	498	Code;
499	499	(4) Section 825.404(d), Government Code; and
500	500	(5) Section 825.411, Government Code.
501	501	SECTION 23. This Act takes effect September 1, 2013.
502	502	* * * * *