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AN ACT
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relating to the operations and functions of the Teacher Retirement |
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System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 824.2031(b), Government Code, is amended |
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to read as follows: |
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(b) A determination under this section shall be founded on |
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the information in the most recent report of an investment |
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practices and performance evaluation [audit] conducted under |
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Section 802.109 [825.512] and the application of that information |
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to: |
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(1) the present amortization period for liabilities of |
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the retirement system; |
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(2) the rate of return on retirement system |
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investments over and above the rate of inflation of the investment |
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portfolio as a whole, of the portion of the investment portfolio |
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entrusted to private investment entities, and of the portion of the |
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investment portfolio entrusted to investment officers who are |
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employees of the retirement system; |
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(3) economic projections of market conditions and |
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future investment rates of return as reflected in the comptroller's |
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most recent economic forecast and revenue estimate; |
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(4) the costs, including changes in the amortization |
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period for liabilities of the retirement system, of providing |
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cost-of-living or other increases in benefits to current |
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annuitants; and |
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(5) an evaluation of the diversity of retirement |
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system investments and whether the portfolio provides low-risk, |
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long-term growth. |
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SECTION 2. Section 824.601, Government Code, is amended by |
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amending Subsections (b) and (b-1) and adding Subsections (b-3) and |
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(b-4) to read as follows: |
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(b) Except as provided by Subsection (b-1) or (b-4), or |
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Section 824.602 and subject to Subsection (b-2) and, if applicable, |
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Subsection (b-3), a retiree is not entitled to service or |
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disability retirement benefit payments, as applicable, for any |
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month in which the retiree is employed in any position by a Texas |
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public educational institution. |
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(b-1) Subsection (b) does not apply to a retiree under |
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Section 824.202 whose effective date of retirement is on or before |
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January 1, 2021 [2011]. |
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(b-3) A retiree under Section 824.202 is subject to |
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Subsection (b) only if the retirement system first issues the |
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following notices to the retiree: |
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(1) with respect to the first occurrence of the |
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retiree's employment that does not qualify for an exception under |
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Section 824.602, the system issued a written warning notifying the |
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retiree of that fact; and |
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(2) in a month following the month in which the system |
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issued the warning described by Subdivision (1) and with respect to |
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a subsequent occurrence of the retiree's continued employment that |
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does not qualify for an exception under Section 824.602, the system |
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issued a written notice: |
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(A) warning the retiree of the fact described by |
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this subdivision; and |
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(B) requiring the retiree to pay to the system, |
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in a form and manner prescribed by the system, an amount, as elected |
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by the retiree, that equals the total sum the retiree: |
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(i) earned for all employment by Texas |
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public educational institutions for each month occurring after the |
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issuance of the warning under Subdivision (1) for which the retiree |
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did not qualify for an exception under Section 824.602 and before |
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the month the system issued the written notice described by this |
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subdivision; or |
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(ii) received in retirement benefit |
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payments for each month occurring after the issuance of the warning |
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under Subdivision (1) for which the retiree did not qualify for an |
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exception under Section 824.602 and before the month the system |
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issued the written notice described by this subdivision. |
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(b-4) A retiree under Section 824.302 who is employed in any |
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position by a Texas public educational institution for more than 90 |
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days in a school year is not entitled to disability retirement |
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benefit payments for the remaining months of the school year during |
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which the retiree continues to be employed by an institution unless |
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the retiree qualifies for the exception described by Section |
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824.602(g). |
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SECTION 3. Section 824.601(f), Government Code, is |
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redesignated as Section 824.604, Government Code, and amended to |
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read as follows: |
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Sec. 824.604. RULES. [(f)] The board of trustees [system] |
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may adopt rules necessary for administering this subchapter. |
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SECTION 4. Section 825.0041, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (d) to read as |
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follows: |
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(b) The [A] training program must provide the person with |
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information regarding: |
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(1) the law governing [legislation that created the] |
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retirement system operations; [and the system's] |
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(2) the programs, functions, rules, and budget of the |
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system; |
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(3) the scope of and limitations on the rulemaking |
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authority of the board of trustees; |
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(4) [(2)] the results of the most recent formal audit |
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of the system; |
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(5) [(3)] the requirements of: |
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(A) laws relating to open meetings, public |
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information, administrative procedure, and disclosing |
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conflicts-of-interest [conflicts of interest]; and |
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(B) other laws applicable to members of a state |
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policy-making body in performing their duties; and |
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(6) [(4)] any applicable ethics policies adopted by |
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the system or the Texas Ethics Commission. |
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(d) The executive director of the retirement system shall |
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create a training manual that includes the information required by |
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Subsection (b). The executive director shall distribute a copy of |
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the training manual annually to each member of the board of |
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trustees. Each member of the board of trustees shall sign and |
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submit to the executive director a statement acknowledging that the |
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member received and has reviewed the training manual. |
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SECTION 5. Section 825.006, Government Code, is amended to |
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read as follows: |
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Sec. 825.006. SUNSET PROVISION. The board of trustees of |
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the Teacher Retirement System of Texas is subject to review under |
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Chapter 325 (Texas Sunset Act), but is not abolished under that |
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chapter. The board shall be reviewed during the period in which |
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state agencies abolished in 2033 [2021], and every 12th year after |
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that year, are reviewed. |
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SECTION 6. Subchapter C, Chapter 825, Government Code, is |
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amended by adding Section 825.216 to read as follows: |
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Sec. 825.216. OMBUDSMAN. (a) Subject to Section 825.506, |
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the board of trustees shall designate an ombudsman within the |
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retirement system to assist members and retirees by performing |
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member and retiree protection and advocacy functions, including: |
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(1) monitoring the system's interactions with members |
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and retirees; |
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(2) receiving and reviewing complaints from members |
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or retirees; |
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(3) taking appropriate action regarding complaints, |
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including conducting investigations of complaints or escalating or |
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reporting complaints to the board; |
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(4) informing a member or retiree and the board of the |
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results of the ombudsman's review or investigation of the member's |
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or retiree's complaint; and |
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(5) recommending corrective actions to the board as |
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determined necessary by the ombudsman to resolve complaints. |
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(b) The ombudsman designated under this section shall |
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regularly submit a report to the board of trustees recommending |
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changes to the retirement system's operations that would benefit |
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members and retirees and increase opportunities for the members and |
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retirees to participate in the system's decisions. |
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SECTION 7. Section 825.308, Government Code, is amended to |
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read as follows: |
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Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement |
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system shall deposit in the state contribution account: |
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(1) all state contributions to the retirement system |
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required by Section 825.404; |
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(2) amounts from the interest account as provided by |
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Section 825.313(b)(2); |
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(3) retirement annuities waived or forfeited in |
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accordance with Section 824.601 or 824.004; |
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(3-a) retiree earnings described by Section |
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824.601(b-3)(2)(B)(i) that have been paid to the system; |
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(4) fees collected under Section 825.403(h); |
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(5) fees and interest for reinstatement of service |
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credit or establishment of membership service credit as provided by |
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Section 823.501; |
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(6) the portion of a deposit required by Section |
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823.302 to establish military service credit that represents a fee; |
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and |
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(7) employer contributions required under Section |
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825.4092. |
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SECTION 8. Section 825.4041(f), Government Code, is amended |
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to read as follows: |
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(f) At the end of each school year, the retirement system |
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shall certify to the [commissioner of education and to the] state |
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auditor: |
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(1) the name of each employer that is an institution of |
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higher education and has failed to remit, within the period |
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required by Section 825.408, all payments required under this |
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section for the school year; and |
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(2) the amounts of the unpaid required payments. |
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SECTION 9. Section 825.405(f), Government Code, is amended |
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to read as follows: |
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(f) If the commissioner of education receives a |
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certification from the retirement system regarding unpaid |
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contributions [under Subsection (e)], the commissioner shall |
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direct the comptroller of public accounts to withhold the amount |
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certified, plus interest computed at the rate and in the manner |
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provided by Section 825.408, from the first state money payable to |
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the employer. The amount withheld shall be deposited to the credit |
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of the appropriate accounts of the retirement system. |
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SECTION 10. Section 825.502, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) If the member or the member's heirs cannot be found |
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after complying with the policy adopted under Subsection (c), the |
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member's accumulated contributions are forfeited to the retirement |
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system. The retirement system shall credit the amount forfeited to |
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the retired reserve account. |
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(c) The board of trustees shall adopt a policy requiring the |
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retirement system to make all reasonable efforts to locate and |
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notify a member or, if appropriate, the member's heirs of their |
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entitlement to a return of accumulated contributions under this |
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section. The policy must ensure that the: |
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(1) notice: |
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(A) provides information on how a member or the |
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member's heirs, as appropriate, may withdraw the accumulated |
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contributions, including information on how to effectuate a |
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withdrawal through an election to receive a direct rollover of the |
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contributions to an eligible retirement plan; and |
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(B) is initially sent to the member by certified |
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mail, return receipt requested, at the last known address of the |
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member according to the system's records; and |
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(2) procedure used to locate a member or the member's |
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heirs: |
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(A) requires, at a minimum, that the system |
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conduct Internet searches to determine a current and accurate |
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mailing address of the member or the member's heir and send a notice |
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that complies with Subdivision (1) to the member or the member's |
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heir, as applicable, by certified mail, return receipt requested; |
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and |
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(B) employs a matrix based on defined factors for |
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determining on a graduated scale the degree and type of additional |
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effort required, and those efforts must include: |
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(i) contacting the member's designated |
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beneficiary; |
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(ii) obtaining information from consumer |
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reporting agencies; and |
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(iii) using commercial locating services. |
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SECTION 11. Sections 825.511(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) The retirement system shall maintain a system to |
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promptly and efficiently act on complaints filed with the |
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retirement system [that the system has authority to resolve]. The |
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retirement system shall maintain information about parties to the |
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complaint, the subject matter of the complaint, a summary of the |
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results of the review or investigation of the complaint, and its |
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disposition. |
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(c) The retirement system shall periodically notify the |
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complaint parties of the status of the complaint until final |
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disposition unless the notice would jeopardize an investigation. |
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SECTION 12. Section 825.521, Government Code, is amended to |
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read as follows: |
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Sec. 825.521. DEADLINE TO APPEAL [FINAL] ADMINISTRATIVE |
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DECISION. In adopting rules governing an [the] appeal authorized |
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by law or rule of a determination or decision of the retirement |
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system by the system's staff, including a final administrative |
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decision of the [retirement] system, the board of trustees shall |
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ensure that rules establishing deadlines for [the] filing the [of |
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an] appeal afford a member or retiree at least the same amount of |
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time to file the [an] appeal as the retirement system has to issue |
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the determination or [retirement system's] decision. |
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SECTION 13. The heading to Subchapter G, Chapter 825, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER G. OUTREACH TO MEMBERS AND EMPLOYERS [MEMBER SERVICES] |
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SECTION 14. Section 825.601, Government Code, is amended to |
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read as follows: |
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Sec. 825.601. OUTREACH PLAN [POLICIES GOVERNING RETIREMENT |
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BENEFITS COUNSELING]. (a) The board of trustees shall develop and |
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adopt an outreach plan designed to assist each member of the system, |
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and as appropriate the members' employers, in effectively planning |
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for the member's retirement. The plan must require the retirement |
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system to: |
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(1) identify and implement ways to improve |
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communication between the system and the system's members and |
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employers; |
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(2) update and develop outreach materials and other |
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information distributed by the system, including handbooks, |
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brochures, presentations, and handouts, in a manner that complies |
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with Section 802.106(g); |
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(3) update and develop policies governing retirement |
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benefits counseling provided to members by the system, including[. |
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The] policies that [must]: |
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(A) subject to Section 825.602, ensure [(1) |
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address the manner in which] the [retirement] system makes group |
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and individual member retirement benefits counseling available |
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throughout the state; |
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[(2) identify the geographic regions of the state most |
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in need of retirement benefits counseling services and the manner |
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in which that need will be met;] and |
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(B) [(3)] clarify that the retirement system |
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does not provide financial or legal advice; |
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(4) provide at least annually to each member of the |
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system, regardless of whether the member is vested in the system, an |
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estimate of the member's retirement benefits; |
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(5) enhance employer training and establish an |
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Internet portal designed to assist employers to: |
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(A) satisfy applicable reporting requirements; |
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(B) provide general information to individual |
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members on: |
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(i) employment after retirement; |
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(ii) enrollment in health insurance |
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benefit plans; and |
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(iii) retirement benefits and retirement |
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planning; and |
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(C) facilitate other communications or exchanges |
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involving members and the retirement system; and |
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(6) design and implement methods for maintaining |
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up-to-date contact information for members and beneficiaries based |
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on best practices for outreach. |
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(b) In developing the outreach plan, the board of trustees |
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shall solicit input through surveys or other means from members of |
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the system, employers, and other stakeholders, including |
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appropriate advisory groups. |
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(c) Once every five years, the retirement system shall |
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review and update the outreach plan adopted under this section. |
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SECTION 15. Section 825.602(b), Government Code, is amended |
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to read as follows: |
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(b) The retirement system shall provide retirement benefits |
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counseling for individual members: |
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(1) in different geographic regions of this state, |
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including regions outside of Austin; and |
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(2) in person or by phone, at the election of the |
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member. |
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SECTION 16. Subchapter A, Chapter 1575, Insurance Code, is |
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amended by adding Section 1575.010 to read as follows: |
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Sec. 1575.010. INFORMATION REGARDING APPEALS. The trustee |
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shall develop and distribute informational materials to |
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individuals enrolled in a health benefit plan offered under the |
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group program regarding: |
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(1) the enrollee's right to appeal denial of an adverse |
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determination, as defined by Section 4201.002, to an independent |
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review organization; |
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(2) the procedures for appealing to an independent |
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review organization; and |
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(3) the assistance available from the trustee in |
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navigating the procedures for appeal. |
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SECTION 17. Section 1575.453, Insurance Code, is amended to |
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read as follows: |
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Sec. 1575.453. STUDY AND REPORT BY TRUSTEE. (a) The |
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trustee shall study the operation and administration of this |
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chapter, including: |
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(1) conducting surveys and preparing reports on |
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financing group coverages and health benefit plans available to |
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participants; [and] |
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(2) studying the experience and projected cost of |
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coverage; and |
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(3) reviewing the group coverages provided to and the |
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benefits and services being received by individuals covered under |
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this chapter. |
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(b) The trustee shall report annually to the legislature and |
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the department [at each regular session] on the operation and |
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administration of this chapter. |
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SECTION 18. Subchapter A, Chapter 1579, Insurance Code, is |
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amended by adding Section 1579.010 to read as follows: |
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Sec. 1579.010. INFORMATION REGARDING APPEALS. The trustee |
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shall develop and distribute informational materials to |
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individuals enrolled in a health coverage plan provided under this |
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chapter regarding: |
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(1) an enrollee's right to appeal denial of an adverse |
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determination, as defined by Section 4201.002, to an independent |
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review organization; |
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(2) the procedures for appealing to an independent |
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review organization; and |
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(3) the assistance available from the trustee in |
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navigating the procedures for appeal. |
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SECTION 19. Section 1579.106, Insurance Code, is amended by |
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amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) Every 12 [six] months the trustee shall submit to the |
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comptroller and the Legislative Budget Board a report regarding any |
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cost savings achieved in the program through implementation of the |
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prior authorization requirement of this section. The report must |
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cover the previous 12-month [six-month] period. |
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(d) In the report under Subsection (c), the trustee: |
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(1) may include any cost savings achieved in the |
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program for coverage of prescribed drugs that are not included in |
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the categories listed in Subsection (b) for which prior |
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authorization is required by a health coverage plan provided under |
|
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this chapter; and |
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(2) considering cost and medical necessity, shall |
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identify any categories of prescribed drugs in addition to the |
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categories listed in Subsection (b) for which requiring prior |
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authorization could achieve cost savings. |
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SECTION 20. The following provisions are repealed: |
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(1) Section 802.109(j), Government Code; |
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(2) Section 825.405(e), Government Code; |
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(3) Section 825.512, Government Code; and |
|
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(4) Section 1575.452, Insurance Code. |
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SECTION 21. Section 824.601, Government Code, as amended by |
|
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this Act, applies only to employment by a retiree of the Teacher |
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Retirement System of Texas that occurs on or after the effective |
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date of this Act. |
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SECTION 22. (a) Except as provided by Subsection (b) of |
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this section, Section 825.0041, Government Code, as amended by this |
|
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Act, applies to a member of the board of trustees of the Teacher |
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Retirement System of Texas appointed before, on, or after the |
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effective date of this Act. |
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(b) A member of the board of trustees of the Teacher |
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Retirement System of Texas who, before the effective date of this |
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Act, completed the training program required by Section 825.0041, |
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Government Code, as that law existed before the effective date of |
|
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this Act, is only required to complete additional training on the |
|
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subjects added by this Act to the training program required by |
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Section 825.0041, Government Code. A board member described by |
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this subsection may not vote, deliberate, or be counted as a member |
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in attendance at a meeting of the board held on or after December 1, |
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2021, until the member completes the additional training. |
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SECTION 23. As soon as practicable after the effective date |
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of this Act, but not later than December 1, 2021, the Teacher |
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Retirement System of Texas shall implement the outreach plan |
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required by Section 825.601, Government Code, as amended by this |
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Act. |
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SECTION 24. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1585 was passed by the House on April |
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14, 2021, by the following vote: Yeas 148, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
|
|
No. 1585 on May 12, 2021, by the following vote: Yeas 146, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1585 was passed by the Senate, with |
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amendments, on April 28, 2021, by the following vote: Yeas 31, |
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Nays 0. |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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Governor |