HBA-SEB H.B. 3008 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3008 By: Greenberg Pensions and Investments 5/19/1999 Enrolled BACKGROUND AND PURPOSE Currently, the Teacher Retirement System of Texas (TRS) allows the purchase of out-of-state experience in a public school, however, a teacher who has worked in an out-of-state public school system may not purchase credit in the Employees Retirement System of Texas (ERS) for that service. This provision may impede out-of-state teachers from seeking employment with the Texas School for the Blind and Visually Impaired or with the Texas School for the Deaf, as both schools are members of ERS, rather than TRS. H.B. 3008 allows a person with service in an out-of-state public school to purchase credit in ERS for that service. It sets forth the eligibility requirements and contributions necessary for the establishment of credit. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter F, Chapter 813, Government Code, by adding Section 813.511, as follows: Sec. 813.511. CERTAIN OUT-OF-STATE SERVICE. (a) Authorizes an eligible member of the Employees Retirement System of Texas (ERS) to establish service credit in ERS for employment with a public school system maintained wholly or partly by another state or territory of the United States or by the United States for children of its citizens. Establishes that a school receiving funds under 22 U.S.C. Section 2701 (Educational Facilities) is considered a public school for the purposes of this section. (b) Prohibits a member from establishing credit for service performed for a public school while a member of the armed forces and for which the member was compensated by the United States or for service credited in the Teacher Retirement System of Texas. (c) Provides that an eligible member is one who has at least five years of service credit in ERS and is an employee of the Texas School for the Deaf or the Texas School for the Blind and Visually Impaired. (d) Authorizes a member to establish credit by depositing with ERS a contribution based on a member's monthly salary at the time credit is sought and computed for the number of months for which credit is sought at a specific rate, interest at a specific rate, and any membership fees required. (e) Prohibits the amount of service credit established under this section from exceeding the number of months of service credit the member has in ERS or 120 months, whichever is lesser. (f) Requires ERS to deposit the compensation contribution in a member's individual account in the employees saving account, interest in the state accumulation account, and membership fees in the expense account. (g) Requires ERS to determine the amount to be deposited in each case. Prohibits ERS from granting service credit until a member provides satisfactory proof of eligibility. (h) Prohibits ERS from using the service credit in computing a member's average monthly compensation. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.