Texas 2021 - 87th Regular

Texas House Bill HB3787 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R7641 JCG-D
2	2	By: Dean H.B. No. 3787
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the loss of benefits by and the payment of certain
8	8	employer contributions for certain retirees of the Teacher
9	9	Retirement System of Texas who resume service.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 824.601(b-1) and (b-2), Government
12	12	Code, are amended to read as follows:
13	13	(b-1) Subsection (b) does not apply to a retiree under
14	14	Section 824.202 whose effective date of retirement is on or before
15	15	January 1, 2021 [2011].
16	16	(b-2) A retiree is considered to be employed by a Texas
17	17	public educational institution for purposes of Subsection (b) if
18	18	the retiree performs duties or provides services, other than any
19	19	online supplemental educational and support services provided by a
20	20	nonprofit entity, for or on behalf of the institution that an
21	21	employee of the institution would otherwise perform or provide and:
22	22	(1) the retiree waives, defers, or forgoes
23	23	compensation from the institution for the performance of the duties
24	24	or provision of the services at any time during the 12 consecutive
25	25	calendar months after the retiree's effective date of retirement,
26	26	notwithstanding any other law, including Sections 824.602(a)(1),
27	27	(a)(2), and (a)(4);
28	28	(2) the retiree performs the duties or provides the
29	29	services for or on behalf of the institution as an independent
30	30	contractor at any time during the 12 consecutive calendar months
31	31	after the retiree's effective date of retirement; or
32	32	(3) the retiree, as a volunteer without compensation,
33	33	performs the same duties or provides the same services for an
34	34	institution that the retiree performed or provided immediately
35	35	before retiring and the retiree has an agreement to perform those
36	36	duties or provide those services after the 12 consecutive calendar
37	37	months after the retiree's effective date of retirement.
38	38	SECTION 2. Section 824.602, Government Code, is amended by
39	39	amending Subsection (a) and adding Subsections (c), (d), and (d-1)
40	40	to read as follows:
41	41	(a) Subject to Subsections (c), (d), and (d-1) and Section
42	42	825.506, the retirement system may not, under Section 824.601,
43	43	withhold a monthly benefit payment if the retiree is employed in a
44	44	Texas public educational institution:
45	45	(1) as a substitute only with pay not more than the
46	46	daily rate of substitute pay established by the employer and, if the
47	47	retiree is a disability retiree, the employment has not exceeded a
48	48	total of 90 days in the school year;
49	49	(2) in a position, other than as a substitute, on no
50	50	more than a one-half time basis for the month;
51	51	(3) in one or more positions on as much as a full-time
52	52	basis, if the retiree has been separated from service with all Texas
53	53	public educational institutions for at least 12 full consecutive
54	54	months after the retiree's effective date of retirement; or
55	55	(4) in a position, other than as a substitute, on no
56	56	more than a one-half time basis for no more than 90 days in the
57	57	school year, if the retiree is a disability retiree.
58	58	(c) Subject to Section 825.506, with respect to a retiree
59	59	who is employed by a Texas public educational institution in excess
60	60	of a limitation on employment provided by Subsection (a), the
61	61	retirement system may not withhold a monthly benefit payment under
62	62	Section 824.601 and shall provide a written warning regarding the
63	63	consequences of further employment that exceeds those limitations.
64	64	(d) If the retirement system determines that a retiree,
65	65	after receipt of a warning under Subsection (c), is employed in a
66	66	manner that exceeds a limitation on employment provided by
67	67	Subsection (a), the system shall provide notice of that
68	68	determination to the retiree and require the retiree, in the manner
69	69	prescribed by the system, to:
70	70	(1) return to the system the prorated amount of the
71	71	monthly benefit payment received by the retiree that is
72	72	attributable to the period in which the retiree exceeded the
73	73	limitation provided by Subsection (a); or
74	74	(2) pay to the system the difference between the
75	75	actual hours or days for which the retiree was compensated and the
76	76	hours or days permitted under Subsection (a).
77	77	(d-1) If the retirement system determines that a retiree,
78	78	after receipt of a notice under Subsection (d), is employed in a
79	79	manner that exceeds a limitation on employment provided by
80	80	Subsection (a), the system may withhold a monthly benefit payment
81	81	under Section 824.601.
82	82	SECTION 3. Section 825.408(a), Government Code, is amended
83	83	to read as follows:
84	84	(a) An [Except as provided by Subsection (a-1), an] employer
85	85	that fails to remit, before the seventh day after the last day of a
86	86	month, all member and employer deposits and documentation of the
87	87	deposits required by this subchapter to be remitted by the employer
88	88	for the month shall pay to the retirement system, in addition to the
89	89	deposits, interest on the unpaid amounts at an annual rate
90	90	compounded monthly and a late fee in an amount determined by the
91	91	retirement system that is based on the size of the employer and may
92	92	not exceed $1,000 for each business day after the deadline imposed
93	93	by this subsection that the employer fails to submit the
94	94	documentation of the deposits. The cumulative amount of late fees
95	95	assessed against an employer under this subsection may not exceed
96	96	$25,000 per reporting period. The rate of interest is the rate
97	97	established under Section 825.313(b)(1), plus two percent.
98	98	Interest and late fees required under this section are creditable
99	99	to the interest account. On request, the retirement system may
100	100	grant a waiver of the deadline imposed by this subsection based on
101	101	an employer's financial or technological resources. The retirement
102	102	system may establish a process for filing an appeal to reduce or
103	103	waive a late fee imposed under this subsection.
104	104	SECTION 4. Section 825.4092(e), Government Code, is amended
105	105	to read as follows:
106	106	(e) The amounts required to be paid under Subsection
107	107	[Subsections (b) and] (c) are not required to be paid by a reporting
108	108	employer for a retiree who retired from the retirement system
109	109	before September 1, 2005.
110	110	SECTION 5. The following provisions of the Government Code
111	111	are repealed:
112	112	(1) Sections 825.408(a-1) and (a-2); and
113	113	(2) Sections 825.4092(b) and (d).
114	114	SECTION 6. The changes in law made by this Act apply
115	115	beginning with the 2021-2022 school year.
116	116	SECTION 7. This Act takes effect immediately if it receives
117	117	a vote of two-thirds of all the members elected to each house, as
118	118	provided by Section 39, Article III, Texas Constitution. If this
119	119	Act does not receive the vote necessary for immediate effect, this
120	120	Act takes effect September 1, 2021.