S.B. No. 1812
 
 
 
 
AN ACT
  relating to the determination of state contributions for
  participation by certain junior college employees in the state
  employees group benefits program, the Teacher Retirement System of
  Texas, and the Optional Retirement Program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 825.404, Government Code, is amended by
  amending Subsections (a) and (b) and adding Subsections (a-1) and
  (b-1) to read as follows:
         (a)  Except as provided by Subsection (a-1), during [During]
  each fiscal year, the state shall contribute to the retirement
  system an amount equal to at least six and not more than 10 percent
  of the aggregate annual compensation of all members of the
  retirement system during that fiscal year. The amount of the state
  contribution made under this section may not be less than the amount
  contributed by members during that fiscal year in accordance with
  Section 825.402.
         (a-1)  In computing the amount owed by the state under
  Subsection (a), the compensation of members who are employed by
  public junior colleges or public junior college districts shall be
  included in the aggregate annual compensation as follows:
               (1)  50 percent of the eligible creditable compensation
  of employees who:
                     (A)  otherwise are eligible for membership in the
  retirement system; and
                     (B)  are instructional or administrative
  employees whose salaries may be fully paid from funds appropriated
  under the General Appropriations Act, regardless of whether such
  salaries are actually paid from appropriated funds; and
               (2)  none of the eligible creditable compensation of
  all other employees who:
                     (A)  do not meet the requirements of Subdivision
  (1)(B) but are otherwise eligible for membership in the retirement
  system; or
                     (B)  cannot be included as a qualifying employee
  under Subdivision (1) by application of Subsection (b-1).
         (b)  Before November 2 of each even-numbered year, the board
  of trustees, in coordination with the Legislative Budget Board,
  shall certify to the comptroller of public accounts for review and
  adoption an estimate of the amount necessary to pay the state's
  contributions to the retirement system for the following biennium.  
  For qualifying employees under Subsection (a-1)(1), the board of
  trustees shall include only the amount payable by the state under
  Subsection (a-1)(1) in determining the amount to be certified.
         (b-1)  In determining the amount described by Subsection
  (b), the number of qualifying employees under Subsection (a-1)(1)
  whose compensation may be included for each public junior college
  or public junior college district in each biennium may not be
  adjusted in a proportion greater than the change in student
  enrollment at each college during the reporting period except that
  a college that experiences a decline in student enrollment may
  petition the Legislative Budget Board to maintain the number of
  eligible employees up to 98 percent of the level of the prior
  biennium.
         SECTION 2.  Subchapter E, Chapter 825, Government Code, is
  amended by adding Section 825.4071 to read as follows:
         Sec. 825.4071.  COLLECTION OF CONTRIBUTIONS FROM EMPLOYERS
  THAT ARE PUBLIC JUNIOR COLLEGES OR PUBLIC JUNIOR COLLEGE DISTRICTS.
  (a)  This section applies to an employer that is a public junior
  college or a public junior college district.
         (b)  An employer described by Subsection (a) shall
  contribute monthly to the retirement system:
               (1)  an amount equal to the state contribution rate
  then in effect multiplied by 50 percent of the aggregate eligible
  creditable compensation of members who are qualifying employees
  under Section 825.404(a-1)(1) that the employer reports to the
  retirement system; and
               (2)  an amount equal to the state contribution rate
  then in effect multiplied by 100 percent of the aggregate eligible
  creditable compensation of all other members under Section
  825.404(a-1)(2) that the employer reports to the retirement system.
         (c)  The designated disbursing officer of each public junior
  college and each public junior college district shall:
               (1)  submit to the retirement system, at a time and in
  the manner prescribed by the retirement system, a monthly report
  containing a certification that includes:
                     (A)  the total amount of compensation paid;
                     (B)  the total amount of employer contributions
  due under this section for the payroll period; and
                     (C)  any other information the retirement system
  determines is necessary to administer this section; and
               (2)  maintain and retain the following information:
                     (A)  the name of each member employed by the
  public junior college or public junior college district;
                     (B)  the amount of the member's salary for the
  most recent payroll period;
                     (C)  whether the member is a qualifying employee
  under Section 825.404(a-1)(1); and
                     (D)  any other information the retirement system
  determines is necessary to administer this section.
         (d)  A monthly report required under Subsection (c) shall be
  accompanied by payment of the amount of employer contributions
  certified in Subsection (c)(1).
         (e)  Not later than the 90th day after the date each school
  year ends, the retirement system shall certify to the comptroller
  the names of any public junior colleges or public junior college
  districts that have failed to remit, within the period required by
  Section 825.408, all contributions required under this section for
  the school year and the amounts of the unpaid contributions.
         (f)  If the comptroller receives a certification under
  Subsection (e), the comptroller shall withhold the amount
  certified, plus interest computed at the rate and in the manner
  provided by Section 825.408, from the first state money payable to
  the public junior college or public junior college district. The
  amount withheld shall be deposited to the credit of the appropriate
  accounts of the retirement system.
         (g)  The retirement system shall deposit all money it
  receives under this section in the state contribution account.
         SECTION 3.  Section 830.201, Government Code, is amended by
  adding Subsections (g), (h), and (i) to read as follows:
         (g)  In computing the amount owed by the state under
  Subsection (a), the compensation of members who are employed by
  public junior colleges or public junior college districts shall be
  included in the aggregate annual compensation as follows:
               (1)  50 percent of the eligible creditable compensation
  of employees who:
                     (A)  otherwise are eligible for membership in the
  retirement system; and
                     (B)  are instructional or administrative
  employees whose salaries may be fully paid from funds appropriated
  under the General Appropriations Act, regardless of whether such
  salaries are actually paid from appropriated funds; and
               (2)  none of the eligible creditable compensation of
  all other employees who:
                     (A)  do not meet the requirements of Subdivision
  (1)(B) but are otherwise eligible for membership in the retirement
  system; or
                     (B)  cannot be included as a qualifying employee
  under Subdivision (1) by application of Subsection (i).
         (h)  Before November 2 of each even-numbered year, the board
  of trustees, in coordination with the Legislative Budget Board,
  shall certify to the comptroller for review and adoption an
  estimate of the amount necessary to pay the state's contributions
  to the retirement system for the following biennium. For
  qualifying employees under Subsection (g)(1), the board of trustees
  shall include only the amount payable by the state under Subsection
  (g)(1) in determining the amount to be certified.
         (i)  In determining the amount described by Subsection (h),
  the number of qualifying employees under Subsection (g)(1) whose
  compensation may be included for each public junior college or
  public junior college district in each biennium may not be adjusted
  in a proportion greater than the change in student enrollment at
  each college during the reporting period except that a college that
  experiences a decline in student enrollment may petition the
  Legislative Budget Board to maintain the number of eligible
  employees up to 98 percent of the level of the prior biennium.
         SECTION 4.  Subsection (a), Section 1551.311, Insurance
  Code, is amended to read as follows:
         (a)  Not later than November 1 preceding each regular session
  of the legislature, the board of trustees, in coordination with
  [shall certify to] the Legislative Budget Board, shall certify to
  [and] the budget division of the governor's office for information
  and review the amount necessary to pay the contributions of the
  state to the board for the coverages provided under this chapter
  during the following biennium.
         SECTION 5.  Subchapter G, Chapter 1551, Insurance Code, is
  amended by adding Section 1551.3111 to read as follows:
         Sec. 1551.3111.  AMOUNT OF STATE CONTRIBUTION FOR CERTAIN
  JUNIOR COLLEGE EMPLOYEES. (a)  In computing the amount to be
  certified under Section 1551.311, for participants who are employed
  by public junior colleges or public junior college districts, the
  board of trustees shall include:
               (1)  50 percent of the cost associated with eligible
  employees who:
                     (A)  otherwise are eligible to participate in the
  group benefits program; and
                     (B)  are instructional or administrative
  employees whose salaries may be fully paid from funds appropriated
  under the General Appropriations Act, regardless of whether such
  salaries are actually paid from appropriated funds; and
               (2)  none of the cost associated with employees who:
                     (A)  do not meet the requirements of Subdivision
  (1)(B) but are otherwise eligible to participate in the group
  benefits program; or
                     (B)  cannot be included as a qualifying employee
  under Subdivision (1) by application of Subsection (c).
         (b)  For qualifying employees under Subsection (a)(1), the
  board of trustees shall include only the amount payable by the state
  under Subsection (a)(1) in determining the amount to be certified
  under Section 1551.311.
         (c)  In determining the amount described by Subsection (b),
  the number of qualifying employees under Subsection (a)(1) whose
  group benefits program costs may be included for each public junior
  college or public junior college district in each biennium may not
  be adjusted in a proportion greater than the change in student
  enrollment at each college during the reporting period except that
  a college that experiences a decline in student enrollment may
  petition the Legislative Budget Board to maintain the number of
  eligible employees up to 98 percent of the level of the prior
  biennium.
         SECTION 6.  (a)  The legislature finds that all governmental
  acts and proceedings of the board of trustees of a public junior
  college or of an officer or employee of the college to comply with
  demands for payment of retirement contributions by the comptroller
  or the Teacher Retirement System of Texas for fiscal years 2012 and
  2013 are valid as of the dates on which they occurred.
         (b)  This section does not apply to any matter that on the
  effective date of this section:
               (1)  is involved in litigation if the litigation
  ultimately results in the matter being held invalid by a final
  judgment of a court of competent jurisdiction; or
               (2)  has been held invalid by a final judgment of a
  court of competent jurisdiction.
         SECTION 7.  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, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1812 passed the Senate on
  May 1, 2013, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1812 passed the House on
  May 22, 2013, by the following vote:  Yeas 148, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor