Texas 2015 - 84th Regular

Texas House Bill HB638 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Anchia, Simmons (Senate Sponsor - Ellis) H.B. No. 638
2		-	(In the Senate - Received from the House May 11, 2015;
3		-	May 12, 2015, read first time and referred to Committee on State
4		-	Affairs; May 21, 2015, reported favorably by the following vote:
5		-	Yeas 9, Nays 0; May 21, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 638
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to annuity payments to surviving spouses and designated
12	6		beneficiaries of persons wrongfully imprisoned.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Section 103.053, Civil Practice and Remedies
15	9		Code, is amended to read as follows:
16	10		Sec. 103.053. ANNUITY COMPENSATION GENERALLY; STANDARD
17	11		ANNUITY PAYMENTS. (a) A person entitled to compensation under
18	12		Section 103.001(a) is entitled to standard annuity payments under
19	13		this section unless the person elects to receive alternative
20	14		annuity payments under Section 103.0535.
21	15		(a-1) Standard annuity payments are[,] based on a present
22	16		value sum equal to the amount to which the person is entitled under
23	17		Sections 103.052(a)(1) and (b).
24	18		(b) Standard [The] annuity payments [under this section]
25	19		are payable in equal monthly installments for the life of the
26	20		claimant.
27	21		(c) Annuity payments under this chapter [and] must be based
28	22		on a five percent per annum interest rate and other actuarial
29	23		factors within the discretion of the comptroller. Annuity
30	24		[(c) The annuity] payments under this chapter may not be
31	25		accelerated, deferred, increased, or decreased. A person entitled
32	26		to annuity payments under this chapter, including a claimant's
33	27		spouse or designated beneficiary entitled to payments under Section
34	28		103.0535, [The applicant] may not sell, mortgage or otherwise
35	29		encumber, or anticipate the payments, wholly or partly, by
36	30		assignment or otherwise.
37	31		SECTION 2. Subchapter B, Chapter 103, Civil Practice and
38	32		Remedies Code, is amended by adding Sections 103.0535 and 103.0536
39	33		to read as follows:
40	34		Sec. 103.0535. ALTERNATIVE ANNUITY COMPENSATION. (a) A
41	35		person entitled to compensation under Section 103.001(a) may elect
42	36		to receive reduced alternative annuity payments under this section
43	37		instead of standard annuity payments.
44	38		(b) Alternative annuity payments are payable throughout the
45	39		life of the claimant and are actuarially reduced from the standard
46	40		annuity payments to their actuarial equivalent under the option
47	41		selected under Subsection (c).
48	42		(c) A claimant may select one of the following options,
49	43		which provide that:
50	44		(1) after the claimant's death, the alternative
51	45		annuity payments are payable to and throughout the life of the
52	46		claimant's spouse;
53	47		(2) after the claimant's death, three-fourths of the
54	48		initial alternative annuity payment amount is payable to and
55	49		throughout the life of the claimant's spouse;
56	50		(3) after the claimant's death, one-half of the
57	51		initial alternative annuity payment amount is payable to and
58	52		throughout the life of the claimant's spouse;
59	53		(4) if the claimant dies before 180 monthly
60	54		alternative annuity payments have been made, the remainder of the
61	55		180 payments are payable to the claimant's spouse or designated
62	56		beneficiary; or
63	57		(5) if the claimant dies before 120 monthly
64	58		alternative annuity payments have been made, the remainder of the
65	59		120 payments are payable to the claimant's spouse or designated
66	60		beneficiary.
67	61		(d) An election under this section must be made not later
68	62		than the 45th day after the date on which the claimant files with
69	63		the comptroller the application required by Section 103.051 on a
70	64		form prescribed by the comptroller that:
71	65		(1) identifies the claimant's spouse or designated
72	66		beneficiary according to Section 103.0536; and
73	67		(2) specifies the option selected under Subsection
74	68		(c).
75	69		(e) A claimant who elects to receive alternative annuity
76	70		payments under this section that are payable to the claimant and the
77	71		claimant's spouse and survives the claimant's spouse is entitled to
78	72		an increase in the amount of the claimant's monthly annuity
79	73		payments so that the claimant's monthly payments equal the monthly
80	74		payments the claimant would have received had the claimant not
81	75		elected to receive the alternative annuity payments. The claimant
82	76		is entitled to the increased payments beginning the month after the
83	77		month in which the claimant's spouse dies and ending on the date of
84	78		the claimant's death.
85	79		Sec. 103.0536. DESIGNATED BENEFICIARY. (a) A claimant who
86	80		selects a designated beneficiary to receive the remainder of the
87	81		alternative annuity payments payable under Section 103.0535(c)(4)
88	82		or (5) may designate:
89	83		(1) one designated beneficiary to receive the
90	84		remainder of the annuity payments;
91	85		(2) two or more designated beneficiaries to receive
92	86		the remainder of the annuity payments in equal amounts; or
93	87		(3) a primary designated beneficiary to receive the
94	88		remainder of the annuity payments and an additional beneficiary.
95	89		(b) If a designated beneficiary designated under Subsection
96	90		(a)(2) dies before the remainder of the annuity payments are paid,
97	91		the comptroller shall recalculate the payments so that the
98	92		remaining designated beneficiaries receive the remainder of the
99	93		annuity payments in equal amounts.
100	94		(c) An additional beneficiary designated under Subsection
101	95		(a)(3) takes the place of the primary beneficiary if the primary
102	96		beneficiary dies before the remainder of the annuity payments are
103	97		paid. A claimant may select not more than four additional
104	98		beneficiaries and shall determine the order in which the additional
105	99		beneficiaries are to succeed the primary beneficiary. The remainder
106	100		of the annuity payments under this subsection are paid to one
107	101		beneficiary at a time until the beneficiary dies or the remaining
108	102		annuity payments are paid. If each additional beneficiary dies
109	103		before the remainder of the annuity payments are paid, the
110	104		remainder of the annuity payments are payable to the claimant's
111	105		estate.
112	106		(d) A designated beneficiary under this section must be a
113	107		dependent of the claimant. For purposes of this subsection,
114	108		"dependent" includes a claimant's spouse, minor child, and any
115	109		other person for whom the claimant is legally obligated to provide
116	110		support, including alimony.
117	111		SECTION 3. Section 103.151(b), Civil Practice and Remedies
118	112		Code, is amended to read as follows:
119	113		(b) The comptroller shall begin making annuity payments [to
120	114		a claimant] under Section 103.053(a) or 103.0535 on the first
121	115		anniversary of the date of payment of the compensation due under
122	116		Section 103.052.
123	117		SECTION 4. Sections 103.154(a) and (b), Civil Practice and
124	118		Remedies Code, are amended to read as follows:
125	119		(a) Except as provided by Subsection (c), compensation
126	120		payments [to a person] under this chapter terminate if, after the
127	121		date the claimant [person] becomes eligible for compensation under
128	122		Section 103.001, the claimant [person] is convicted of a crime
129	123		punishable as a felony. Annuity payments to a claimant's spouse or
130	124		designated beneficiary under this chapter terminate if, after the
131	125		date the spouse or designated beneficiary begins receiving annuity
132	126		payments, the spouse or designated beneficiary is convicted of a
133	127		crime punishable as a felony. Payments [Compensation payments]
134	128		terminate under this subsection on the date of the felony
135	129		[subsequent] conviction. If annuity payments to a designated
136	130		beneficiary are terminated under this subsection, the remainder of
137	131		the annuity payments are payable under Section 103.0536 as if the
138	132		beneficiary died on the date of termination.
139	133		(b) Except as provided by Sections 103.0535 and 103.0536:
140	134		(1) annuity [Annuity] payments to a person under this
141	135		chapter [Section 103.151(b)] terminate on the date of the person's
142	136		death; and
143	137		(2) [. Any] payments scheduled to be paid after that
144	138		date are credited to the state and may not be paid to any other
145	139		person, including the person's surviving spouse, heirs, devisees,
146	140		or beneficiaries under the person's will, or to the person's estate.
147	141		SECTION 5. (a) Not later than December 1, 2015, the
148	142		comptroller shall develop and make available the form described by
149	143		Section 103.0535(d), Civil Practice and Remedies Code, as added by
150	144		this Act.
151	145		(b) A person entitled to compensation under Section
152	146		103.001(a), Civil Practice and Remedies Code, who started receiving
153	147		annuity payments before the effective date of this Act may elect to
154	148		receive any remaining payments as alternative annuity payments
155	149		under Section 103.0535, Civil Practice and Remedies Code, as added
156	150		by this Act, by filing the form described by Section 103.0535(d),
157	151		Civil Practice and Remedies Code, as added by this Act, with the
158	152		comptroller not later than the 45th day after the date the
159	153		comptroller makes the form available. The value of alternative
160	154		annuity payments elected under this section must be actuarially
161	155		equivalent to the remaining value of the annuity payments the
162	156		person would receive absent the election.
163	157		SECTION 6. This Act takes effect September 1, 2015.
164		-	* * * * *
	158	+	______________________________ ______________________________
	159	+	President of the Senate Speaker of the House
	160	+	I certify that H.B. No. 638 was passed by the House on May 7,
	161	+	2015, by the following vote: Yeas 142, Nays 0, 2 present, not
	162	+	voting.
	163	+	______________________________
	164	+	Chief Clerk of the House
	165	+	I certify that H.B. No. 638 was passed by the Senate on May
	166	+	24, 2015, by the following vote: Yeas 30, Nays 0.
	167	+	______________________________
	168	+	Secretary of the Senate
	169	+	APPROVED: _____________________
	170	+	Date
	171	+	_____________________
	172	+	Governor