| 1 | | - | H.B. No. 3375 |
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| 1 | + | By: Davis (Senate Sponsor - Johnson) H.B. No. 3375 |
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| 2 | + | (In the Senate - Received from the House May 17, 2021; |
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| 3 | + | May 17, 2021, read first time and referred to Committee on Finance; |
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| 4 | + | May 21, 2021, reported favorably by the following vote: Yeas 10, |
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| 5 | + | Nays 0; May 21, 2021, sent to printer.) |
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| 6 | + | Click here to see the committee vote |
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| 4 | 10 | | AN ACT |
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| 5 | 11 | | relating to certain benefits payable by the public retirement |
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| 6 | 12 | | systems for police and fire fighters in certain municipalities. |
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| 7 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 14 | | SECTION 1. Sections 6.14(e-3) and (e-4), Article 6243a-1, |
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| 9 | 15 | | Revised Statutes, are amended to read as follows: |
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| 10 | 16 | | (e-3) The board may by rule allow any person receiving an |
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| 11 | 17 | | annuity from the annuitization of a DROP account under this section |
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| 12 | 18 | | [a DROP participant who has terminated active service and who is |
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| 13 | 19 | | eligible for a retirement pension] to: |
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| 14 | 20 | | (1) assign the distribution from the person's |
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| 15 | 21 | | [participant's] annuitized DROP account to a third party provided |
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| 16 | 22 | | the pension system receives a favorable private letter ruling from |
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| 17 | 23 | | the Internal Revenue Service ruling that such an assignment will |
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| 18 | 24 | | not negatively impact the pension system's qualified plan status; |
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| 19 | 25 | | and |
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| 20 | 26 | | (2) subject to Subsection (e-4) of this section, in |
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| 21 | 27 | | the event of a financial hardship that was not reasonably |
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| 22 | 28 | | foreseeable obtain a lump-sum distribution from the person's |
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| 23 | 29 | | [participant's] DROP account resulting in a corresponding |
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| 24 | 30 | | reduction in the total number or in the amount of annuity payments. |
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| 25 | 31 | | (e-4) The board shall adopt rules necessary to implement |
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| 26 | 32 | | Subsection (e-3)(2) of this section, including rules regarding what |
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| 27 | 33 | | constitutes a financial hardship for purposes of that subdivision. |
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| 28 | 34 | | In adopting the rules, the board shall provide flexibility to |
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| 29 | 35 | | persons receiving an annuity from the annuitization of a DROP |
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| 30 | 36 | | account [members]. |
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| 31 | 37 | | SECTION 2. This Act takes effect September 1, 2021. |
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| 32 | | - | ______________________________ ______________________________ |
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| 33 | | - | President of the Senate Speaker of the House |
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| 34 | | - | I certify that H.B. No. 3375 was passed by the House on May |
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| 35 | | - | 14, 2021, by the following vote: Yeas 145, Nays 0, 2 present, not |
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| 36 | | - | voting. |
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| 37 | | - | ______________________________ |
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| 38 | | - | Chief Clerk of the House |
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| 39 | | - | I certify that H.B. No. 3375 was passed by the Senate on May |
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| 40 | | - | 26, 2021, by the following vote: Yeas 31, Nays 0. |
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| 41 | | - | ______________________________ |
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| 42 | | - | Secretary of the Senate |
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| 43 | | - | APPROVED: _____________________ |
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| 44 | | - | Date |
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| 45 | | - | _____________________ |
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| 46 | | - | Governor |
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| 38 | + | * * * * * |
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