HBA-TBM, CCH H.B. 877 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 877 By: Flores Appropriations 7/16/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, the Employee Retirement System of Texas (ERS) did not provide benefits to the surviving spouses and minor children (survivor) of certain public employees, including state peace officers or employees of the institutional division or state jail division of the Texas Department of Criminal Justice (employees) killed in the line of duty who had not yet vested in ERS at the time of death. Providing survivor benefits to the beneficiaries of deceased officers and employees would help to ease the financial burden that compounds a surviving family's emotional difficulties. House Bill 877 provides survivor benefits for the family of state peace officers and employees killed in the line of duty. 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. ANALYSIS House Bill 877 amends the Government Code relating to the benefits provided to the surviving spouse, children, or parent of certain public employees killed in the line of duty. A surviving child rather than a minor child of such a public employee is eligible to receive a death benefit payment if there is no surviving spouse. A surviving parent rather than a surviving dependent parent is eligible to receive a death benefit payment if there is no surviving spouse or child. The bill removes provisions related to a surviving dependent sibling and a surviving parent of the deceased public employee. Except for changes in law regarding dependent siblings, these provisions apply only to the death of a public employee that occurs on or after September 1, 2001. The modifications of provisions regarding dependent siblings apply to the death of a public employee that occurs on or after September 1, 2001 (Sec. 615.021 and SECTION 9). The bill increases the payment to an eligible surviving spouse of a deceased public employee from $50,000 to $250,000 and provides for distribution of the money if there is no eligible surviving spouse or child (Sec. 615.022). The bill provides education benefits for a surviving spouse or dependent child of a deceased peace officer including exemption from tuition and fees at an institution of higher education payment by the institution of the student's food, housing, and textbooks. These provisions apply only to the death of a public employee that occurs on or after on September 1, 2001 (Sec. 615.0225 and SECTION 9). The bill sets forth provisions relating to the benefits provided to the surviving spouse or minor children of a peace officer (officer) or an employee of the institutional division or state jail division of the Texas Department of Criminal Justice (employee) killed in the line of duty who had not qualified for an annuity under an employees' retirement plan. The bill requires the state to pay for the deceased officer or employee's funeral expenses and the greater of monthly annuity payments that the deceased officer or employee would have received had the officer or employee survived and retired on the last day of the month in which the officer or employee died, or the minimum monthly annuity payment the deceased officer or employee would have received if the officer or employee had been employed by the state for 10 years, had been paid a salary at the lowest amount provided by the General Appropriations Act for a peace officer or employee, and had been eligible to retire under the Employees Retirement System of Texas (ERS). The bill entitles a surviving spouse to receive monthly payments until the surviving spouse remarries, becomes eligible for retirement under an employees' retirement plan, or becomes eligible for Social Security benefits. The bill authorizes the ERS to require the surviving spouse to provide information as necessary to administer these provisions. The bill authorizes ERS to adopt rules necessary to administer these provisions. ERS shall apply reduction factors, as applicable to an annuity payable under these provisions, in the same manner the factors are applied to a death benefit plan administered by the system. These provisions apply only to the death of a public employee that occurs on or after on September 1, 2001 (Sec. 615.121 and SECTION 10). If an eligible surviving spouse does not exist, the state is required to pay the funeral expenses of the deceased officer or employee to the guardian or legal representative of any surviving minor children. These benefits supplement any other benefits provided under current law. These provisions apply only to the death of a public employee that occurs on or after on September 1, 2001 (Secs. 615.122 and 615.123 and SECTION 10). The bill repeals provisions related to payments to a surviving minor child, spouse, or dependent sibling. Except for changes in law regarding dependent siblings, these provisions apply only to the death of a public employee that occurs on or after September 1, 2001. The modifications of provisions regarding dependent siblings apply to the death of a public employee that occurs on or after June 17, 2001 (SECTIONS 8 and 9). EFFECTIVE DATE September 1, 2001.