By: Duncan S.B. No. 1812
(Otto)
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. Section 825.404, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsections (a-1) and
(b-1) to read as follows:
(a) Except as provided by Subsection (a-1), during [During]
each fiscal year, the state shall contribute to the retirement
system an amount equal to at least six and not more than 10 percent
of the aggregate annual compensation of all members of the
retirement system during that fiscal year. The amount of the state
contribution made under this section may not be less than the amount
contributed by members during that fiscal year in accordance with
Section 825.402.
(a-1) In computing the amount owed by the state under
Subsection (a), the compensation of members who are employed by
public junior colleges or public junior college districts shall be
included in the aggregate annual compensation as follows:
(1) 50 percent of the eligible creditable compensation
of employees who:
(A) otherwise are eligible for membership in the
retirement system; and
(B) are instructional or administrative
employees whose salaries may be fully paid from funds appropriated
under the General Appropriations Act, regardless of whether such
salaries are actually paid from appropriated funds; and
(2) none of the eligible creditable compensation of
all other employees who:
(A) do not meet the requirements of Subdivision
(1)(B) but are otherwise eligible for membership in the retirement
system; or
(B) cannot be included as a qualifying employee
under Subdivision (1) by application of Subsection (b-1).
(b) Before November 2 of each even-numbered year, the board
of trustees, in coordination with the Legislative Budget Board,
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.
For qualifying employees under Subsection (a-1)(1), the board of
trustees shall include only the amount payable by the state under
Subsection (a-1)(1) in determining the amount to be certified.
(b-1) In determining the amount described by Subsection
(b), the number of qualifying employees under Subsection (a-1)(1)
whose compensation may be included for each public junior college
or public junior college district in each biennium may not be
adjusted in a proportion greater than the change in student
enrollment at each college during the reporting period except that
a college that experiences a decline in student enrollment may
petition the Legislative Budget Board to maintain the number of
eligible employees up to 98 percent of the level of the prior
biennium.
SECTION 2. Subchapter E, Chapter 825, Government Code, is
amended by adding Section 825.4071 to read as follows:
Sec. 825.4071. COLLECTION OF CONTRIBUTIONS FROM EMPLOYERS
THAT ARE PUBLIC JUNIOR COLLEGES OR PUBLIC JUNIOR COLLEGE DISTRICTS.
(a) This section applies to an employer that is a public junior
college or a public junior college district.
(b) An employer described by Subsection (a) shall
contribute monthly to the retirement system:
(1) an amount equal to the state contribution rate
then in effect multiplied by 50 percent of the aggregate eligible
creditable compensation of members who are qualifying employees
under Section 825.404(a-1)(1) that the employer reports to the
retirement system; and
(2) an amount equal to the state contribution rate
then in effect multiplied by 100 percent of the aggregate eligible
creditable compensation of all other members under Section
825.404(a-1)(2) that the employer reports to the retirement system.
(c) The designated disbursing officer of each public junior
college and each public junior college district 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 that includes:
(A) the total amount of compensation paid;
(B) the total amount of employer contributions
due under this section for the payroll period; and
(C) any other information the retirement system
determines is necessary to administer this section; and
(2) maintain and retain the following information:
(A) the name of each member employed by the
public junior college or public junior college district;
(B) the amount of the member's salary for the
most recent payroll period;
(C) whether the member is a qualifying employee
under Section 825.404(a-1)(1); and
(D) 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 of employer contributions
certified in Subsection (c)(1).
(e) Not later than the 90th day after the date each school
year ends, the retirement system shall certify to the comptroller
the names of any public junior colleges or public junior college
districts that have failed to remit, within the period required by
Section 825.408, all contributions required under this section for
the school year and the amounts of the unpaid contributions.
(f) If the comptroller receives a certification under
Subsection (e), the comptroller shall withhold the amount
certified, plus interest computed at the rate and in the manner
provided by Section 825.408, from the first state money payable to
the public junior college or public junior college district. The
amount withheld shall be deposited to the credit of the appropriate
accounts of the retirement system.
(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 computing the amount owed by the state under
Subsection (a), the compensation of members who are employed by
public junior colleges or public junior college districts shall be
included in the aggregate annual compensation as follows:
(1) 50 percent of the eligible creditable compensation
of employees who:
(A) otherwise are eligible for membership in the
retirement system; and
(B) are instructional or administrative
employees whose salaries may be fully paid from funds appropriated
under the General Appropriations Act, regardless of whether such
salaries are actually paid from appropriated funds; and
(2) none of the eligible creditable compensation of
all other employees who:
(A) do not meet the requirements of Subdivision
(1)(B) but are otherwise eligible for membership in the retirement
system; or
(B) cannot be included as a qualifying employee
under Subdivision (1) by application of Subsection (i).
(h) Before November 2 of each even-numbered year, the board
of trustees, in coordination with the Legislative Budget Board,
shall certify to the comptroller for review and adoption an
estimate of the amount necessary to pay the state's contributions
to the retirement system for the following biennium. For
qualifying employees under Subsection (g)(1), the board of trustees
shall include only the amount payable by the state under Subsection
(g)(1) in determining the amount to be certified.
(i) In determining the amount described by Subsection (h),
the number of qualifying employees under Subsection (g)(1) whose
compensation may be included for each public junior college or
public junior college district in each biennium may not be adjusted
in a proportion greater than the change in student enrollment at
each college during the reporting period except that a college that
experiences a decline in student enrollment may petition the
Legislative Budget Board to maintain the number of eligible
employees up to 98 percent of the level of the prior biennium.
SECTION 4. Subsection (a), Section 1551.311, Insurance
Code, is amended to read as follows:
(a) Not later than November 1 preceding each regular session
of the legislature, the board of trustees, in coordination with
[shall certify to] the Legislative Budget Board, shall certify to
[and] the budget division of the governor's office for information
and review the amount necessary to pay the contributions of the
state to the board for the coverages provided under this chapter
during the following biennium.
SECTION 5. 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 computing the amount to be
certified under Section 1551.311, for participants who are employed
by public junior colleges or public junior college districts, the
board of trustees shall include:
(1) 50 percent of the cost associated with eligible
employees who:
(A) otherwise are eligible to participate in the
group benefits program; and
(B) are instructional or administrative
employees whose salaries may be fully paid from funds appropriated
under the General Appropriations Act, regardless of whether such
salaries are actually paid from appropriated funds; and
(2) none of the cost associated with employees who:
(A) do not meet the requirements of Subdivision
(1)(B) but are otherwise eligible to participate in the group
benefits program; or
(B) cannot be included as a qualifying employee
under Subdivision (1) by application of Subsection (c).
(b) For qualifying employees under Subsection (a)(1), the
board of trustees shall include only the amount payable by the state
under Subsection (a)(1) in determining the amount to be certified
under Section 1551.311.
(c) In determining the amount described by Subsection (b),
the number of qualifying employees under Subsection (a)(1) whose
group benefits program costs may be included for each public junior
college or public junior college district in each biennium may not
be adjusted in a proportion greater than the change in student
enrollment at each college during the reporting period except that
a college that experiences a decline in student enrollment may
petition the Legislative Budget Board to maintain the number of
eligible employees up to 98 percent of the level of the prior
biennium.
SECTION 6. (a) The legislature finds that all governmental
acts and proceedings of the board of trustees of a public junior
college or of an officer or employee of the college to comply with
demands for payment of retirement contributions by the comptroller
or the Teacher Retirement System of Texas for fiscal years 2012 and
2013 are valid as of the dates on which they occurred.
(b) This section does not apply to any matter that on the
effective date of this section:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court of competent jurisdiction; or
(2) has been held invalid by a final judgment of a
court of competent jurisdiction.
SECTION 7. 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.