S.B. No. 1063
 
 
 
 
AN ACT
  relating to the powers of certain hospital districts and to the
  retirement benefits of employees of the districts and related
  entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 803.203, Government Code, is amended by
  amending Subsections (a), (c), and (e) and adding Subsection (h) to
  read as follows:
         (a)  Except as provided by Subsection (g), a person who is a
  member of a retirement system participating in the program provided
  by this chapter may reestablish service credit, including prior
  service credit if applicable, previously canceled in another
  retirement system that is participating in the program provided by
  this chapter if the person:
               (1)  is not a current member of the system under which
  the service was performed; [or]
               (2)  in the case of the Texas County and District
  Retirement System, does not have an open account with the
  subdivision for which the person performed the service for which
  the credit is sought; or
               (3)  in the case of an employee to whom Section 803.204
  applies, does not have an open account with the employing hospital
  district, charitable organization, or administrative agency, as
  applicable, for which the person performed the service for which
  the credit is sought.
         (c)  Except as provided by Subsection (f), the retirement
  system in which the service credit was originally credited shall
  grant the service credit after receiving an application and a
  certification required by Subsection (b) and:
               (1)  to reestablish service credit other than in the
  Texas County and District Retirement System, [or] the Texas
  Municipal Retirement System, or the retirement system in which a
  hospital district, charitable organization, or administrative
  agency described by Section 803.204 participates, a contribution in
  the amount generally required to reestablish service credit in the
  system, including any applicable interest and membership fees;
               (2)  to reestablish service credit in the Texas County
  and District Retirement System, [or] the Texas Municipal Retirement
  System, or the retirement system in which a hospital district,
  charitable organization, or administrative agency described by
  Section 803.204 participates, a statement that the applicant does
  not wish to make a contribution for the service credit; or
               (3)  at the applicant's option, to reestablish current
  service credit in the Texas County and District Retirement System,
  the actuarial present value of the additional standard service
  benefits that would be attributable to the credit based on rates and
  tables recommended by the actuary and adopted by the board of
  trustees of the system.
         (e)  Service credit [reestablished] in the Texas County and
  District Retirement System, [or] the Texas Municipal Retirement
  System, or the retirement system in which a hospital district,
  charitable organization, or administrative agency described by
  Section 803.204 participates that is reestablished under
  Subsection (c)(2) may be used only to meet eligibility requirements
  for benefits. Service credit reestablished in the Texas County and
  District Retirement System or the Texas Municipal Retirement System 
  [either system] under Subsection (c)(3) or (d) has the same value as
  service credit performed for the particular subdivision or
  municipality at the time of deposit. The credit is creditable to
  the member's and employer's accounts in each subdivision or
  municipality for which the service was performed.
         (h)  This section applies to an employee described by Section
  803.204 on the date the federal government establishes as the
  effective date of the transfer of federally qualified health center
  status from a municipality described by Section 803.0021(1) to a
  hospital district, charitable organization, or administrative
  agency described by Section 803.204.
         SECTION 2.  Section 803.204, Government Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         (a)  This section applies only to an employee who:
               (1)  is a member of a municipal retirement system
  described by Section 803.0021(1);
               (2)  is employed by a hospital district, a charitable
  organization supervised, overseen, and effectively controlled
  [created] by the hospital district, or an administrative agency
  created under Section 791.013, either before or after being
  employed by the employing municipality located in the same county
  as the hospital district, charitable organization, or
  administrative agency; and
               (3)  participates in a public retirement system:
                     (A)  that is determined to be a qualified plan
  under Section 401(a), Internal Revenue Code of 1986 (26 U.S.C.
  Section 401(a)), of a hospital district, charitable organization,
  or administrative agency that is determined to be a governmental
  unit, or an agency or an instrumentality of a governmental unit; and
                     (B)  that records and reports service credit as
  defined by Section 803.001.
         (d)  For purposes of this section, a charitable organization
  supervised, overseen, and effectively controlled by a hospital
  district or an administrative agency created under Section 791.013
  is an agency or instrumentality of a governmental unit.
         SECTION 3.  Section 61.056, Health and Safety Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  A hospital district created in a county with a
  population of more than 800,000 that was not included in the
  boundaries of a hospital district before September 1, 2003, may
  provide or arrange to provide health care services for eligible
  residents through the purchase of health coverage or other health
  benefits, including benefits described by Chapter 75.  For purposes
  of this subsection, the board of managers of the district has the
  powers and duties provided to the commissioners court of a county
  under Chapter 75.
         SECTION 4.  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, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1063 passed the Senate on
  April 24, 2009, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1063 passed the House on
  May 15, 2009, by the following vote:  Yeas 144, Nays 0, one present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor