| 1 | 1 | | 89R4912 RDR-D |
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| 2 | 2 | | By: Dean H.B. No. 2130 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the payment of certain employer contributions for |
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| 10 | 10 | | retirees of the Teacher Retirement System of Texas who resume |
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| 11 | 11 | | service. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 825.408(a), Government Code, is amended |
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| 14 | 14 | | to read as follows: |
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| 15 | 15 | | (a) An [Except as provided by Subsection (a-1), an] employer |
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| 16 | 16 | | that fails to remit, before the seventh day after the last day of a |
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| 17 | 17 | | month, all member and employer deposits and documentation of the |
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| 18 | 18 | | deposits required by this subchapter to be remitted by the employer |
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| 19 | 19 | | for the month shall pay to the retirement system, in addition to the |
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| 20 | 20 | | deposits, interest on the unpaid amounts at an annual rate |
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| 21 | 21 | | compounded monthly and a late fee in an amount determined by the |
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| 22 | 22 | | retirement system that is based on the size of the employer and may |
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| 23 | 23 | | not exceed $1,000 for each business day after the deadline imposed |
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| 24 | 24 | | by this subsection that the employer fails to submit the |
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| 25 | 25 | | documentation of the deposits. The cumulative amount of late fees |
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| 26 | 26 | | assessed against an employer under this subsection may not exceed |
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| 27 | 27 | | $25,000 per reporting period. The rate of interest is the rate |
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| 28 | 28 | | established under Section 825.313(b)(1), plus two percent. |
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| 29 | 29 | | Interest and late fees required under this section are creditable |
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| 30 | 30 | | to the interest account. On request, the retirement system may |
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| 31 | 31 | | grant a waiver of the deadline imposed by this subsection based on |
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| 32 | 32 | | an employer's financial or technological resources. The retirement |
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| 33 | 33 | | system may establish a process for filing an appeal to reduce or |
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| 34 | 34 | | waive a late fee imposed under this subsection. |
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| 35 | 35 | | SECTION 2. Sections 825.4092(e) and (f), Government Code, |
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| 36 | 36 | | are amended to read as follows: |
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| 37 | 37 | | (e) The amounts required to be paid under Subsection |
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| 38 | 38 | | [Subsections (b) and] (c) are not required to be paid by a reporting |
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| 39 | 39 | | employer for a retiree who retired from the retirement system |
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| 40 | 40 | | before September 1, 2005. |
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| 41 | 41 | | (f) A reporting employer is ultimately responsible for |
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| 42 | 42 | | payment of the amounts required to be contributed under Subsection |
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| 43 | 43 | | [Subsections (b) and] (c). The employer may not directly or |
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| 44 | 44 | | indirectly pass that cost on to the retiree through payroll |
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| 45 | 45 | | deduction, by imposition of a fee, or by any other means designed to |
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| 46 | 46 | | recover the cost. |
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| 47 | 47 | | SECTION 3. The following provisions of the Government Code |
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| 48 | 48 | | are repealed: |
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| 49 | 49 | | (1) Sections 825.408(a-1) and (a-2); and |
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| 50 | 50 | | (2) Sections 825.4092(b) and (d). |
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| 51 | 51 | | SECTION 4. The changes in law made by this Act apply |
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| 52 | 52 | | beginning with the 2025-2026 school year. |
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| 53 | 53 | | SECTION 5. This Act takes effect immediately if it receives |
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| 54 | 54 | | a vote of two-thirds of all the members elected to each house, as |
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| 55 | 55 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 56 | 56 | | Act does not receive the vote necessary for immediate effect, this |
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| 57 | 57 | | Act takes effect September 1, 2025. |
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