Bill Text: TX SB1459 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to the powers and duties of and contributions to and benefits from the systems and programs administered by the Employees Retirement System of Texas.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-06-14 - See remarks for effective date [SB1459 Detail]
Download: Texas-2013-SB1459-Enrolled.html
S.B. No. 1459 |
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relating to the powers and duties of and contributions to and | ||
benefits from the systems and programs administered by the | ||
Employees Retirement System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subsection (a), Section 411.1402, Government | ||
Code, is amended to read as follows: | ||
(a) The Employees Retirement System of Texas is entitled to | ||
obtain from the department, the Federal Bureau of Investigation | ||
Criminal Justice Information Services Division, or another law | ||
enforcement agency criminal history record information maintained | ||
by the department, division, or agency that relates to a person who | ||
is: | ||
(1) an applicant for employment with, or who is or has | ||
been employed by, the retirement system; | ||
(2) a consultant, contract employee, independent | ||
contractor, intern, or volunteer for the retirement system or an | ||
applicant to serve in one of those positions; or | ||
(3) a candidate for appointment or election to the | ||
board of trustees of the retirement system or an advisory committee | ||
to that board. | ||
SECTION 2. Subsection (a), Section 661.091, Government | ||
Code, is amended to read as follows: | ||
(a) A contributing member of the Employees Retirement | ||
System of Texas who retires is entitled to a lump-sum payment [ |
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which the member retires, for the member's accrued vacation time as | ||
of the date of retirement, unless the member opts to receive for | ||
that accrued vacation time service credit under Section 813.511(a). | ||
SECTION 3. Section 811.007, Government Code, is amended to | ||
read as follows: | ||
Sec. 811.007. IMMUNITY FROM LIABILITY. The board of | ||
trustees, executive director, members of an advisory committee | ||
appointed by the board of trustees, and employees of the retirement | ||
system are not liable for any action taken or omission made or | ||
suffered by them in good faith in the performance of any duty in | ||
connection with any program or system administered by the | ||
retirement system. | ||
SECTION 4. Subsection (b), Section 812.003, Government | ||
Code, is amended to read as follows: | ||
(b) An office or employment that is included in the coverage | ||
of the Teacher Retirement System of Texas, the Judicial Retirement | ||
System of Texas Plan One, or the Judicial Retirement System of Texas | ||
Plan Two or, except as provided by Section 9.01, Chapter 238 | ||
(S.B. 378), Acts of the 73rd Legislature, Regular Session, 1993, is | ||
with a university system or institution of higher education, as | ||
defined by Section 61.003, Education Code, is not a position with a | ||
department, commission, board, agency, or institution of the state | ||
for purposes of this subtitle. | ||
SECTION 5. Subsection (c), Section 813.202, Government | ||
Code, is amended to read as follows: | ||
(c) The state shall contribute for service established | ||
under this section an amount in the same ratio to the member's | ||
contribution and interest paid under Subsection (b) for the service | ||
as the state's contribution bears to the contribution for current | ||
service required of a member of the employee class at the time the | ||
service is established under this section. The state's | ||
contribution and interest must be paid from the fund or account from | ||
which the member receives compensation at the time the service is | ||
established or, if the member does not hold a position at the time | ||
the service is established, from the fund or account from which the | ||
member received compensation when the member most recently held a | ||
position. | ||
SECTION 6. Subsection (b), Section 813.302, Government | ||
Code, is amended to read as follows: | ||
(b) A member eligible to establish military service credit | ||
is one who: | ||
(1) does not receive and is not eligible to receive | ||
federal retirement payments based on 20 years or more of active | ||
federal military duty [ |
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(2) has been released from military duty under | ||
conditions not dishonorable; and | ||
(3) has credit in the retirement system for membership | ||
service performed after the member's date of release from active | ||
military duty. | ||
SECTION 7. Subsection (k), Section 813.509, Government | ||
Code, is amended to read as follows: | ||
(k) A member [ |
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of that member may use sick leave creditable under this section only | ||
for purposes of calculating the member's or beneficiary's annuity. | ||
SECTION 8. Subsections (a) and (j), Section 813.511, | ||
Government Code, are amended to read as follows: | ||
(a) A member who holds a position included in the employee | ||
class of membership during the month that includes the effective | ||
date of the member's retirement and who retires based on service or | ||
a disability is entitled to service credit in the retirement system | ||
for the member's annual leave that has accumulated and is unused on | ||
the last day of employment, unless the member opts to receive for | ||
that accumulated leave a lump-sum payment under Section 661.091. | ||
(j) A member [ |
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of that member may use annual leave creditable under this section | ||
only for purposes of calculating the member's or beneficiary's | ||
annuity. | ||
SECTION 9. Subsections (a) and (d), Section 814.105, | ||
Government Code, are amended to read as follows: | ||
(a) The [ |
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standard service retirement annuity for service credited in the | ||
employee class of membership is an amount computed as the member's | ||
average monthly compensation for service in that class for the 60 | ||
[ |
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each year of service credit in that class. | ||
(d) The standard service retirement annuity computed under | ||
this section [ |
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year the member retires before the member reaches age 62 [ |
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SECTION 10. Section 814.107, Government Code, is amended by | ||
amending Subsections (b) and (c) and adding Subsection (c-1) to | ||
read as follows: | ||
(b) The standard service retirement annuity payable for at | ||
least 20 years of service credit as a law enforcement or custodial | ||
officer is an amount computed on the basis of the member's average | ||
monthly compensation for the 60 [ |
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in the employee class, times the sum of the percentage factor used | ||
in the computation of a standard service retirement annuity under | ||
Section 814.105 plus .5 percent. | ||
(c) The standard combined service retirement annuity that | ||
is payable under this section is based on retirement on or after the | ||
attainment of the normal retirement age, which for purposes of this | ||
section is the earlier of either the age of 57 [ |
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which the sum of the member's age and amount of service credit in | ||
the employee class equals the number 80. The annuity of a law | ||
enforcement or custodial officer who retires before reaching the | ||
age of 57 under any eligibility criteria is actuarially reduced by | ||
five percent for each year of difference between the member's age at | ||
retirement and 57. The actuarial reduction described by this | ||
section is in addition to any other actuarial reduction required by | ||
law. | ||
(c-1) A law enforcement or custodial officer who retires | ||
before attaining the [ |
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to an annuity that is actuarially reduced from the annuity | ||
available at the [ |
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enforcement or custodial officer whose service credit annuity | ||
amount is based on the sum of the member's age and amount of law | ||
enforcement or custodial officer service credit and employee class | ||
service credit, and is not entitled to have the annuity | ||
recalculated at normal retirement age. The standard or reduced | ||
annuity under this section is payable from the trust fund | ||
established by Section 815.310 and the law enforcement and | ||
custodial officer supplemental retirement fund in a ratio | ||
determined by the retirement system. | ||
SECTION 11. Subsection (a), Section 814.1081, Government | ||
Code, is amended to read as follows: | ||
(a) A person who retired and selected an optional service | ||
retirement annuity described by Section 814.108(c)(1), (c)(2), or | ||
(c)(5) may change the optional annuity selection to the selection | ||
of a standard service retirement annuity if: | ||
(1) pursuant to a divorce decree, a court orders the | ||
change in the annuity selection to a standard service retirement | ||
annuity; or | ||
(2) the retiree files [ |
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system a request to change the annuity selection, if the retiree | ||
designated a person as beneficiary who: | ||
(A) [ |
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is not currently the retiree's spouse or dependent child; or | ||
(B) is not currently the retiree's spouse or | ||
dependent child and [ |
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written, notarized instrument that releases the retirement system | ||
from any claim to the annuity by the beneficiary and that transfers | ||
all [ |
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interest in the annuity to the retiree [ |
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SECTION 12. Subchapter G, Chapter 814, Government Code, is | ||
amended by adding Section 814.604 to read as follows: | ||
Sec. 814.604. COST-OF-LIVING ADJUSTMENT. (a) The | ||
retirement system shall grant a one-time cost-of-living adjustment | ||
as provided by Subsections (b) and (c) on a finding by the board of | ||
trustees that, as determined by an actuarial valuation: | ||
(1) the amortization period for the unfunded actuarial | ||
liabilities of the retirement system does not exceed 30 years by one | ||
or more years; and | ||
(2) as a result of paying the adjustment, the time | ||
required to amortize the unfunded actuarial liabilities of the | ||
retirement system would not be increased to a period that exceeds 30 | ||
years by one or more years. | ||
(b) The retirement system shall pay the cost-of-living | ||
adjustment under this section to a retiree who has been retired for | ||
20 years or more on the date the board of trustees makes the finding | ||
in Subsection (a), or to a beneficiary of the retiree, as an | ||
increase to a monthly service retirement benefit, disability | ||
retirement benefit, or death benefit, as applicable, paid under | ||
this chapter for service credited in the employee class. | ||
(c) A cost-of-living adjustment under this section is | ||
limited to the lesser of: | ||
(1) an amount equal to three percent of the monthly | ||
benefit subject to the increase; or | ||
(2) $100 a month. | ||
SECTION 13. Subsection (b), Section 815.311, Government | ||
Code, is amended to read as follows: | ||
(b) Interest on money in an individual account in the | ||
employees saving account is earned monthly and is computed at the | ||
rate of two [ |
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member's account for the fiscal year. | ||
SECTION 14. Section 815.317, Government Code, is amended by | ||
adding Subsection (d) to read as follows: | ||
(d) Member contributions to the fund deducted under Section | ||
815.402(h): | ||
(1) earn interest at the same rate as money in an | ||
individual account in the employees saving account under Section | ||
815.311; and | ||
(2) are subject to the same computations and | ||
limitations that apply to member contributions under Section | ||
815.311. | ||
SECTION 15. Subsection (a), Section 815.402, Government | ||
Code, is amended to read as follows: | ||
(a) Except as provided by Section 813.201, each payroll | ||
period, each department or agency of the state shall cause to be | ||
deducted from each member's compensation a contribution of: | ||
(1) 6.6 [ |
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member is not a member of the legislature, for service rendered | ||
after August 31, 2013, and before September 1, 2014; | ||
(2) 6.9 percent of the compensation if the member is | ||
not a member of the legislature, for service rendered after August | ||
31, 2014, and before September 1, 2015; | ||
(3) 7.2 percent of the compensation if the member is | ||
not a member of the legislature, for service rendered after August | ||
31, 2015, and before September 1, 2016; | ||
(4) 7.5 percent of the compensation if the member is | ||
not a member of the legislature, for service rendered after August | ||
31, 2016; | ||
(5) for service rendered on or after September 1, | ||
2017, the lesser of: | ||
(A) 7.5 percent of the member's annual | ||
compensation; or | ||
(B) a percentage of the member's annual | ||
compensation equal to 7.5 percent reduced by one-tenth of one | ||
percent for each one-tenth of one percent that the state | ||
contribution rate for the fiscal year to which the service relates | ||
is less than the state contribution rate established for the 2015 | ||
fiscal year [ |
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(6) [ |
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member is a member of the legislature. | ||
SECTION 16. Subchapter E, Chapter 815, Government Code, is | ||
amended by adding Section 815.4035 to read as follows: | ||
Sec. 815.4035. COLLECTION OF STATE RETIREMENT | ||
CONTRIBUTION. (a) Except as provided by Section 813.201, the | ||
board of trustees shall assess each employer whose employees are | ||
members of the retirement system a state retirement contribution in | ||
an amount equal to 0.5 percent of the employer's total payroll, as | ||
determined by the General Appropriations Act. | ||
(b) The board of trustees shall deposit the state retirement | ||
contribution to the credit of the trust fund established by Section | ||
815.310 to be used for the purposes specified by Section 815.103. | ||
SECTION 17. Section 837.002, Government Code, is amended to | ||
read as follows: | ||
Sec. 837.002. TERMINATION OF MEMBERSHIP. A person's | ||
membership in the retirement system is terminated by: | ||
(1) death of the person; | ||
(2) retirement based on service credited in the | ||
retirement system; or | ||
(3) withdrawal of all of the person's accumulated | ||
contributions[ |
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SECTION 18. Subsection (b), Section 838.103, Government | ||
Code, is amended to read as follows: | ||
(b) A member eligible to establish military service credit | ||
is one who: | ||
(1) has at least eight years of service credit in the | ||
retirement system; | ||
(2) does not receive and is not eligible to receive | ||
federal retirement payments based on 20 years or more of active | ||
federal military duty [ |
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(3) has been released from military duty under | ||
conditions not dishonorable. | ||
SECTION 19. Subsections (a) and (c), Section 838.106, | ||
Government Code, are amended to read as follows: | ||
(a) A member may establish service credit in the retirement | ||
system for any calendar year during which the member[ |
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retirement system[ |
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(c) For the purpose of Subsection (a) [ |
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a member leaving judicial office ends not later than December 31 | ||
regardless of the date on which the member's successor takes the | ||
oath of office. | ||
SECTION 20. Subsection (a), Section 840.102, Government | ||
Code, is amended to read as follows: | ||
(a) Except as provided by Subsections (g) and (h), each | ||
payroll period, a judicial officer who is a member of the retirement | ||
system is required to contribute: | ||
(1) 6.6 [ |
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compensation for service rendered after August 31, 2013, and before | ||
September 1, 2014; | ||
(2) 6.9 percent of the officer's state compensation | ||
for service rendered after August 31, 2014, and before September 1, | ||
2015; | ||
(3) 7.2 percent of the officer's state compensation | ||
for service rendered after August 31, 2015, and before September 1, | ||
2016; | ||
(4) 7.5 percent of the officer's state compensation | ||
for service rendered after August 31, 2016; or | ||
(5) for service rendered on or after September 1, | ||
2017, the lesser of: | ||
(A) 7.5 percent of the officer's state | ||
compensation; or | ||
(B) a percentage of the officer's state | ||
compensation equal to 7.5 percent reduced by one-tenth of one | ||
percent for each one-tenth of one percent that the state | ||
contribution rate for the fiscal year to which the service relates | ||
is less than the state contribution rate established for the 2015 | ||
fiscal year [ |
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SECTION 21. Subdivisions (9) and (11), Section 1551.003, | ||
Insurance Code, are amended to read as follows: | ||
(9) "Full-time employee" means an employee designated | ||
as a full-time employee under Section 1551.319(c) or (d) or an | ||
employee designated by the employer as working 30 [ |
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a week. | ||
(11) "Part-time employee" means an employee | ||
designated by the employer as working less than 30 [ |
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week. For purposes of this chapter, an individual described by | ||
Section 1551.101(e)(2) is considered a part-time employee. | ||
SECTION 22. Subsection (b), Section 1551.004, Insurance | ||
Code, is amended to read as follows: | ||
(b) In this section, "child" includes: | ||
(1) a natural child, adopted child, stepchild, [ |
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foster child, or child in the possession of a participant who is | ||
designated as managing conservator of the child under an | ||
irrevocable or unrevoked affidavit of relinquishment under Chapter | ||
161, Family Code; or | ||
(2) a child who is related by blood or marriage and was | ||
claimed as a dependent on the federal income tax return of an | ||
individual who is eligible to participate in the group benefits | ||
program under Section 1551.101 or 1551.102 for the calendar year | ||
preceding the plan year in which the child is first enrolled as a | ||
dependent under Subchapter D, and for each subsequent year in which | ||
the child is enrolled as a dependent. | ||
SECTION 23. Subsections (a) and (b), Section 1551.1055, | ||
Insurance Code, are amended to read as follows: | ||
(a) Except as provided by Subsection (c) or (d), eligibility | ||
under Section 1551.101 begins not later than [ |
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the employee performs services for a state agency or is qualified | ||
for and begins to hold elected or appointed office. | ||
(b) Except as provided by Subsection (c), eligibility under | ||
Section 1551.102, for an individual who does not retire at the end | ||
of the last month for which the individual is on the payroll of a | ||
state agency before retirement, begins not later than [ |
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date the individual retires. | ||
SECTION 24. Subsection (a), Section 1551.158, Insurance | ||
Code, is amended to read as follows: | ||
(a) A dependent child who is unmarried and whose coverage | ||
under this chapter ends when the child becomes 26 [ |
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may, on expiration of continuation coverage under the Consolidated | ||
Omnibus Budget Reconciliation Act of 1985 (Pub. L. No. 99-272), | ||
reinstate health benefit plan coverage under this chapter if the | ||
child, or the child's participating parent, pays the full cost of | ||
the health benefit plan coverage. | ||
SECTION 25. Subchapter G, Chapter 1551, Insurance Code, is | ||
amended by adding Section 1551.3196 to read as follows: | ||
Sec. 1551.3196. AMOUNT OF CONTRIBUTION FOR CERTAIN | ||
ANNUITANTS. (a) An annuitant receives the benefits of a state | ||
contribution for coverage under this chapter based on the | ||
annuitant's eligible service credit, as follows: | ||
(1) for an annuitant with 20 years or more of eligible | ||
service credit, a full state contribution; | ||
(2) for an annuitant with at least 15 years but less | ||
than 20 years of eligible service credit, 75 percent of a full state | ||
contribution; and | ||
(3) for an annuitant with less than 15 years of | ||
eligible service credit, 50 percent of a full state contribution. | ||
(b) An annuitant receiving a reduced state contribution | ||
under Subsection (a) shall have any state contribution for | ||
dependent coverage reduced in an amount proportional to the | ||
reduction under Subsection (a). | ||
(c) This section does not apply to an individual who: | ||
(1) receives or is eligible to receive an annuity that | ||
is based on eligibility under Section 814.002, 814.102, 834.101, or | ||
839.101, Government Code; or | ||
(2) is eligible to participate in the group benefits | ||
program under: | ||
(A) Section 1551.102(d) because of a disability; | ||
or | ||
(B) Section 1551.102(f). | ||
SECTION 26. (a) The following provisions of the Government | ||
Code are repealed: | ||
(1) Subsection (i), Section 76.006; | ||
(2) Subsection (f), Section 606.030; | ||
(3) Subsections (d) and (e), Section 813.509; | ||
(4) Subsections (d) and (e), Section 813.511; | ||
(5) Subsection (c), Section 814.105; | ||
(6) Section 814.1075; and | ||
(7) Section 840.401. | ||
(b) Section 1551.321, Insurance Code, is repealed. | ||
SECTION 27. The changes in law made by this Act to Sections | ||
661.091, 813.509, 813.511, 814.105, and 814.107, Government Code, | ||
apply only to a person who is hired on or after September 1, 2013, to | ||
work in a position that requires membership in the Employees | ||
Retirement System of Texas. A person hired before September 1, | ||
2013, to work in a position that requires membership in the | ||
Employees Retirement System of Texas is subject to those laws as | ||
they existed immediately before that date, and the former law is | ||
continued in effect for that purpose. | ||
SECTION 28. Section 815.311, Government Code, as amended by | ||
this Act, applies only to interest accrued on or after January 1, | ||
2014. Interest accrued before that date is governed by the law in | ||
effect on the date the interest was accrued, and that law is | ||
continued in effect for that purpose. | ||
SECTION 29. Section 1551.3196, Insurance Code, as added by | ||
this Act, applies only to an individual who does not have five years | ||
of eligible service credit on September 1, 2014. An individual who | ||
has at least five years of eligible service credit, or is | ||
participating in the group benefits program as a retiree, on that | ||
date is governed by the law in effect on August 31, 2014, and the | ||
former law is continued in effect for that purpose. | ||
SECTION 30. (a) Notwithstanding any other law, for the | ||
2014-2015 state fiscal biennium, it is the intent of the | ||
legislature that all state retirement assets and liabilities | ||
attributable to members and retirees of the law enforcement and | ||
custodial officer supplemental retirement fund be measured and | ||
accounted for in aggregate and separately from the retirement | ||
assets and liabilities attributable to members and retirees in any | ||
other retirement plan for purposes of determining an actuarially | ||
required contribution or making any other actuarial calculation. | ||
(b) For purposes of Section 811.006, Government Code, the | ||
law enforcement and custodial officer supplemental retirement fund | ||
shall be considered a part of the retirement system, as that term is | ||
defined by Subdivision (15), Section 811.001, Government Code, and | ||
shall be subject to all other provisions of Subtitle B, Title 8, | ||
Government Code, that do not directly conflict with Subsection (a) | ||
of this section. | ||
(c) The board of trustees of the Employees Retirement System | ||
of Texas may adopt rules necessary to implement or administer this | ||
section. | ||
SECTION 31. The Employees Retirement System of Texas shall | ||
conduct an interim study on the feasibility of adding custodial | ||
officers employed by the Texas Juvenile Justice Department to the | ||
class of employees eligible to participate in the law enforcement | ||
and custodial officer supplemental retirement fund as custodial | ||
officers. Not later than September 1, 2014, the retirement system | ||
shall report the findings of the study to the governor, the | ||
lieutenant governor, the speaker of the house of representatives, | ||
and each senate and house committee that has jurisdiction over the | ||
retirement system. | ||
SECTION 32. Subsection (a), Section 840.102, Government | ||
Code, as amended by this Act, takes effect September 1, 2013. | ||
SECTION 33. (a) Except as provided by Subsections (b), | ||
(c), and (d) of this section, this Act takes effect September 1, | ||
2013. | ||
(b) Section 815.311, Government Code, as amended by this | ||
Act, takes effect January 1, 2014. | ||
(c) The changes in law made by this Act to Section | ||
1551.1055, Insurance Code, take effect September 1, 2014. | ||
(d) Section 1551.3196, Insurance Code, as added by this Act, | ||
takes effect September 1, 2014. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1459 passed the Senate on | ||
May 13, 2013, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1459 passed the House on | ||
May 21, 2013, by the following vote: Yeas 147, Nays 0, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |