Texas Laws - Government Code
GOVERNMENT CODE
TITLE 6. PUBLIC OFFICERS AND EMPLOYEES

TITLE 6. PUBLIC OFFICERS AND EMPLOYEES (58931)(1-click HTML)

SUBTITLE A. PROVISIONS GENERALLY APPLICABLE TO PUBLIC OFFICERS AND EMPLOYEES (58932)(1-click HTML)

CHAPTER 601. ELECTION AND OFFICE HOLDING (58933)(1-click HTML)
Sec. 601.001. DELIVERY OF CERTAIN BOOKS, PAPERS, AND DOCUMENTS TO SUCCESSOR. (58934)(1-click HTML)

(a) On leaving office, an officer shall deliver all books, papers, and documents relating to the office to the officer's successor. (58935)

(b) In this section, "officer" includes: (58936)

(1) each officer selected under the laws of this state; and (58937)

(2) a member of a board or commission created by state law. (58938)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (58939)

Sec. 601.002. PERFORMANCE OF DUTIES BY FIRST ASSISTANT OR CHIEF DEPUTY. (58940)(1-click HTML)

(a) The first assistant or chief deputy of a public office in which a physical vacancy occurs shall conduct the affairs of the office until a successor qualifies for the office. (58941)

(b) The authority of a first assistant or chief deputy to discharge the duties of an office under Subsection (a) ceases when the successor to the office qualifies for the office. (58942)

(c) If the vacancy occurs during a legislative session and the successor to the office is subject to senate confirmation, the authority of the first assistant or chief deputy to discharge the duties of an office under Subsection (a) ceases on the earlier of: (58943)

(1) the end of the last day of the session; or (58944)

(2) the end of the 21st day after the day the person began discharging the duties of the office. (58945)

(d) This section does not apply to a vacancy on a board or commission. (58946)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 8.14, eff. Sept. 1, 1999. (58947)

Sec. 601.003. REGULAR TERM OF STATE, DISTRICT, COUNTY, OR PRECINCT OFFICE. (58948)(1-click HTML)

(a) The regular term of an elective state, district, county, or precinct office begins on January 1 of the year following the general election for state and county officers. (58949)

(b) A person elected to a regular term of office shall qualify and assume the duties of the office on, or as soon as possible after, January 1 of the year following the person's election. (58950)

(c) This section does not apply to the office of governor, lieutenant governor, state senator, or state representative. (58951)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (58952)

Sec. 601.004. PERSON ELECTED TO UNEXPIRED TERM OF STATE, DISTRICT, COUNTY, OR PRECINCT OFFICE. (58953)(1-click HTML)

A person who receives a certificate of election to an unexpired term of an office is entitled to qualify for and assume the duties of the office immediately and shall take office as soon as possible after the receipt of the certificate of election, subject to Section 212.0331, Election Code. (58954)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 1144, Sec. 3, eff. Sept. 1, 2001. (58955)

Sec. 601.005. GOVERNOR TO COMMISSION STATE OR COUNTY OFFICERS. (58956)(1-click HTML)

(a) The governor shall issue a commission to each state or county officer, other than the governor, the lieutenant governor, a state senator, or a state representative, who qualifies for office. (58957)

(b) The secretary of state shall perform ministerial duties incidental to administer this section. (58958)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (58959)

Sec. 601.006. CERTIFIED STATEMENT OF PERSONS ELECTED TO COUNTY OR PRECINCT OFFICES. (58960)(1-click HTML)

(a) On or immediately after January 1 after a general election for state and county officers, each county clerk shall deliver to the secretary of state a certified statement that contains for each person elected to a county or precinct office in the election: (58961)

(1) the name of the person; (58962)

(2) the office to which the person was elected; and (58963)

(3) the date the person qualified for the office. (58964)

(b) The secretary of state shall prescribe necessary forms for the statement and instructions for delivery of the statement. (58965)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (58966)

Sec. 601.007. EVIDENCE OF QUALIFICATION FOR OFFICE. (58967)(1-click HTML)

On demand of a citizen of this state, the comptroller, a commissioners court, a county treasurer, or any other officer of the state or of a municipality who is authorized by law to make, order, or audit payment to an officer of the state, of a county, or of a municipality of compensation, fees, or perquisites for official services shall, before making, ordering, or auditing the payment, require the officer to produce: (58968)

(1) the certificate of election or of appointment to the office that is required by law to be issued to the officer; or (58969)

(2) a certified copy of the judgment or decree that: (58970)

(A) was issued by a court of competent jurisdiction; and (58971)

(B) determined the officer's claim to the office. (58972)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.37, eff. Sept. 1, 1997. (58973)

Sec. 601.008. UNAUTHORIZED OFFICERS. (58974)(1-click HTML)

(a) An officer or court of this state or of a municipality may not make, order, allow, or audit payment of a person's claim for compensation, fees, perquisites, or services as an officer of the state or of the municipality unless the person: (58975)

(1) has been: (58976)

(A) lawfully elected as the officer and determined to be elected to the office by the canvass conducted of the election for the office; (58977)

(B) appointed as the officer by the lawful appointing authority; or (58978)

(C) adjudged to be the officer by a state court of competent jurisdiction; and (58979)

(2) has qualified as the officer under law. (58980)

(b) A person who has not been elected or appointed to an office or has not qualified for office, as prescribed by Subsection (a), is not entitled to: (58981)

(1) receive payment for services as the officer; or (58982)

(2) exercise the powers or jurisdiction of the office. (58983)

(c) The official acts of a person who claims a right to exercise the power or jurisdiction of an office contrary to this section are void. (58984)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (58985)

Sec. 601.009. ELECTED OFFICER MUST BE REGISTERED VOTER. (58986)(1-click HTML)

(a) A person may not qualify for a public elective office unless the person is a registered voter. (58987)

(b) Subsection (a) does not apply to an office for which the federal or state constitution prescribes exclusive qualification requirements. (58988)

(c) Subsection (a) does not apply to a member of the governing body of a district created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution. (58989)

Added by Acts 2015, 84th Leg., R.S., Ch. 504 (H.B. 484), Sec. 2, eff. September 1, 2015. (58990)

Sec. 601.011. VACANCY ON FINAL FELONY CONVICTION OF MEMBER OF LEGISLATURE, GOVERNOR, OR STATE ELECTED OFFICIAL. (58991)(1-click HTML)

A member of the legislature, the governor, or a state elected official convicted of a felony vacates the member's, governor's, or official's office on the date the conviction becomes final. (58992)

Added by Acts 2017, 85th Leg., R.S., Ch. 443 (S.B. 500), Sec. 2, eff. June 6, 2017. (58993)

CHAPTER 602. ADMINISTRATION OF OATHS (58994)(1-click HTML)
Sec. 602.001. DEFINITION. (58995)(1-click HTML)

In this chapter, "oath" includes the oath in an affidavit. (58996)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (58997)

Sec. 602.002. OATH MADE IN TEXAS. (58998)(1-click HTML)

An oath made in this state may be administered and a certificate of the fact given by: (58999)

(1) a judge, retired judge, or clerk of a municipal court; (59000)

(2) a judge, retired judge, senior judge, clerk, or commissioner of a court of record; (59001)

(3) a justice of the peace or a clerk of a justice court; (59002)

(4) an associate judge, magistrate, master, referee, or criminal law hearing officer; (59003)

(5) a notary public; (59004)

(6) a member of a board or commission created by a law of this state, in a matter pertaining to a duty of the board or commission; (59005)

(7) a person employed by the Texas Ethics Commission who has a duty related to a report required by Title 15, Election Code, in a matter pertaining to that duty; (59006)

(8) a county tax assessor-collector or an employee of the county tax assessor-collector if the oath relates to a document that is required or authorized to be filed in the office of the county tax assessor-collector; (59007)

(9) the secretary of state or a former secretary of state; (59008)

(10) an employee of a personal bond office, or an employee of a county, who is employed to obtain information required to be obtained under oath if the oath is required or authorized by Article 17.04 or by Article 26.04(n) or (o), Code of Criminal Procedure; (59009)

(11) the lieutenant governor or a former lieutenant governor; (59010)

(12) the speaker of the house of representatives or a former speaker of the house of representatives; (59011)

(13) the governor or a former governor; (59012)

(14) a legislator or retired legislator; (59013)

(15) the attorney general or a former attorney general; (59014)

(16) the secretary or clerk of a municipality in a matter pertaining to the official business of the municipality; (59015)

(17) a peace officer described by Article 2.12, Code of Criminal Procedure, if: (59016)

(A) the oath is administered when the officer is engaged in the performance of the officer's duties; and (59017)

(B) the administration of the oath relates to the officer's duties; or (59018)

(18) a county treasurer. (59019)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 165, Sec. 19, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 325, Sec. 1, eff. May 29, 1999; Acts 1999, 76th Leg., ch. 638, Sec. 1, eff. Aug. 30, 1999; Acts 1999, 76th Leg., ch. 653, Sec. 1, eff. June 18, 1999; Acts 2001, 77th Leg., ch. 514, Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 986, Sec. 1, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 568, Sec. 1, eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1171, Sec. 1, eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 9.015, eff. Sept. 1, 2003. (59020)

Amended by: (59021)

Acts 2007, 80th Leg., R.S., Ch. 372 (S.B. 397), Sec. 1, eff. June 15, 2007. (59022)

Acts 2009, 81st Leg., R.S., Ch. 907 (H.B. 1285), Sec. 1, eff. June 19, 2009. (59023)

Acts 2011, 82nd Leg., 1st C.S., Ch. 3 (H.B. 79), Sec. 6.05, eff. January 1, 2012. (59024)

Acts 2015, 84th Leg., R.S., Ch. 66 (S.B. 435), Sec. 1, eff. September 1, 2015. (59025)

Sec. 602.003. OATH MADE OUTSIDE TEXAS BUT INSIDE UNITED STATES. (59026)(1-click HTML)

An oath made outside this state but inside the United States or its territories may be administered and a certificate of the fact given by: (59027)

(1) a clerk of a court of record having a seal; (59028)

(2) a commissioner of deeds appointed under a law of this state; or (59029)

(3) a notary public. (59030)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59031)

Sec. 602.004. OATH MADE OUTSIDE UNITED STATES. (59032)(1-click HTML)

An oath made outside the United States and its territories may be administered and a certificate of the fact given by: (59033)

(1) a minister, commissioner, or charge d'affaires of the United States who resides in and is accredited to the country where the oath or affidavit is made; (59034)

(2) a consul-general, consul, vice-consul, commercial agent, vice-commercial agent, deputy consul, or consular agent of the United States who resides in the country where the oath or affidavit is made; or (59035)

(3) a notary public. (59036)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59037)

Sec. 602.005. OATH MADE BY MEMBER OF ARMED FORCES OR BY MEMBER'S SPOUSE. (59038)(1-click HTML)

(a) A commissioned officer of the United States armed forces or of a United States armed forces auxiliary may administer an oath made by a member of the armed forces, a member of an armed forces auxiliary, or a member's spouse and may give a certificate of the fact. (59039)

(b) Unless there is pleading or evidence to the contrary, a certificate signed under this section that is offered in evidence establishes that: (59040)

(1) the commissioned officer who signed was a commissioned officer on the date the officer signed; and (59041)

(2) the person who made the oath or affidavit was a member of the armed forces or an armed forces auxiliary or was a member's spouse when the oath was made. (59042)

(c) An oath is not invalid because the commissioned officer who certified the oath did not attach an official seal to the certificate. (59043)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59044)

Sec. 602.006. OATH OF OFFICE. (59045)(1-click HTML)

An oath of office may be administered and a certificate of the fact given by a member of the legislature. (59046)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59047)

Sec. 602.007. FILING OF OATH MADE BY CERTAIN JUDICIAL OFFICERS AND JUDICIAL APPOINTEES. (59048)(1-click HTML)

The oath made and signed statement executed as required by Section 1, Article XVI, Texas Constitution, by any of the following judicial officers and judicial appointees shall be filed with the secretary of state: (59049)

(1) an officer appointed by the supreme court, the court of criminal appeals, or the State Bar of Texas; and (59050)

(2) an associate judge appointed under Subchapter B or C, Chapter 201, Family Code. (59051)

Added by Acts 2017, 85th Leg., R.S., Ch. 912 (S.B. 1329), Sec. 4.01, eff. September 1, 2017. (59052)

CHAPTER 603. PROVISION OF DOCUMENTS AND FEES OF OFFICE (59053)(1-click HTML)
Sec. 603.001. DEFINITION. (59054)(1-click HTML)

In this chapter, "document" includes any instrument, paper, or other record. (59055)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59056)

Sec. 603.002. COPIES OF DOCUMENTS AVAILABLE TO PUBLIC. (59057)(1-click HTML)

The secretary of state, Commissioner of the General Land Office, comptroller, commissioner of agriculture, Banking Commissioner, state librarian, or attorney general: (59058)

(1) shall furnish to a person on request a certified copy, under seal, of any document in the officer's office that is available under law to that person; and (59059)

(2) may not demand or collect a fee from an officer of the state for a copy of any document in the respective offices or for a certificate in relation to a matter in the respective offices if the copy is required in the performance of an official duty of the office of the state officer requesting the copy. (59060)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.38, eff. Sept. 1, 1997. (59061)

Sec. 603.003. COPIES FOR CLAIMS RELATING TO MILITARY SERVICE. (59062)(1-click HTML)

(a) A county clerk, district clerk, or other public official on request shall furnish without cost to a person or the person's guardian, dependent, or heir one or more certified copies of a document that is in the custody of or on file in the county clerk's, district clerk's, or other public official's office if: (59063)

(1) the person or the person's guardian, dependent, or heir is eligible to make a claim against the United States government because of service in the United States armed forces or an auxiliary service, including the maritime service or the merchant marine; and (59064)

(2) the document is necessary to prove the claim. (59065)

(b) The issuance of a certified copy under this section may not be considered in determining the maximum fee of the office. (59066)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59067)

Sec. 603.004. FEES FOR CERTIFICATES OR COPIES OF DOCUMENTS. (59068)(1-click HTML)

(a) Except as otherwise provided by law, the secretary of state, land commissioner, comptroller, commissioner of agriculture, Banking Commissioner, state librarian, attorney general, or other officer of the state or a head of a state department shall collect the following fees for the following services: (59069)

(1) a copy, other than a photographic copy, of a document in an office in English, for each page or fraction of a page, $1.50; (59070)

(2) a copy, other than a photographic copy, of a document in an office in a language other than English, for each page or fraction of a page, $2; (59071)

(3) a translated copy of a document in an office, the greater of $.03 for each word or $5; (59072)

(4) a copy of a plat or map in an office, a fee the officer of the office in which the copy is made may establish with reference to the amount of labor, supplies, and materials required; or (59073)

(5) a sealed certificate affixed to a copy, including a certificate affixed to a photographic copy, $1. (59074)

(b) The state librarian may charge for a photographic copy a fee determined by the Texas State Library and Archives Commission with reference to the amount of labor, supplies, and materials required. (59075)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59076)

Sec. 603.005. FEE FOR ACKNOWLEDGMENT. (59077)(1-click HTML)

An officer who is authorized by law to take acknowledgment or proof of a deed or other written instrument shall receive the same fee a notary public may receive for the same service. (59078)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59079)

Sec. 603.006. FEE BOOK. (59080)(1-click HTML)

An officer who by law may charge a fee for a service shall keep a fee book and shall enter in the book all fees charged for services rendered. (59081)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59082)

Sec. 603.007. BILL FOR FEES. (59083)(1-click HTML)

A fee under this chapter is not payable to a person until a clerk or officer produces, or is ready to produce, a bill in writing containing the details of the fee to the person who owes the fee. The bill must be signed by the clerk or officer to whom the fee is due or who charges the fee or by the successor in office or legal representative of the clerk or officer. (59084)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59085)

Sec. 603.008. POSTING OF FEES REQUIRED. (59086)(1-click HTML)

A county judge, clerk of a district or county court, sheriff, justice of the peace, constable, or notary public shall keep posted at all times in a conspicuous place in the respective offices a complete list of fees the person may charge by law. (59087)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59088)

Sec. 603.009. DISPOSITION OF FEES. (59089)(1-click HTML)

(a) Except as provided by this section, an officer required to collect a fee under Section 603.004 shall deposit the fee in the state treasury to the credit of the general revenue fund. (59090)

(b) Repealed by Acts 1999, 76th Leg., ch. 62, Sec. 7.61, eff. Sept. 1, 1999. (59091)

(c) The Texas Employment Commission shall deposit fees in accordance with federal law. (59092)

(d) The Texas State Library and Archives Commission shall retain fees collected under this chapter by the state librarian. (59093)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.61, eff. Sept. 1, 1999. (59094)

Sec. 603.010. OVERCHARGING OF FEES; PENALTY. (59095)(1-click HTML)

An officer named in this chapter who demands and receives a higher fee than authorized under this chapter or a fee that is not authorized under this chapter is liable to the aggrieved person for four times the amount unlawfully demanded and received. (59096)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59097)

CHAPTER 604. OFFICIAL BONDS (59098)(1-click HTML)
Sec. 604.001. FILING OF OFFICIAL BOND. (59099)(1-click HTML)

An officer required by law to give an official bond shall file the bond with the officer's oath of office. (59100)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59101)

Sec. 604.002. SURETIES. (59102)(1-click HTML)

An officer shall execute the officer's official bond with: (59103)

(1) two or more good and sufficient sureties; or (59104)

(2) a solvent surety company authorized to do business in this state. (59105)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59106)

Sec. 604.003. DEPOSITORY OF BOND OF CERTAIN OFFICERS. (59107)(1-click HTML)

(a) Except as provided by Subsection (b) or other law, the officer approving the bond of an officer required by law to give an official bond payable to the governor or the state shall deposit the bond with the comptroller. (59108)

(b) The governor shall deposit the official bond of the comptroller with the secretary of state. (59109)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.08(a), eff. Sept. 1, 1995. (59110)

Sec. 604.004. COPY OF CERTAIN BONDS TO BE FILED WITH SECRETARY OF STATE. (59111)(1-click HTML)

A member of the governing body of a political subdivision created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution who is required by law to file an official bond shall file a copy of the individual's bond with the secretary of state not later than the 10th day after the date the bond is required by law to be filed. (59112)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59113)

Sec. 604.005. BOND NOT VOID ON FIRST RECOVERY. (59114)(1-click HTML)

(a) The official bond of a state, county, or precinct officer is not void on first recovery. (59115)

(b) An injured party may sue separately on a bond until the bond is exhausted. (59116)

(c) In no event may the surety be liable for more than the penal sum of the surety bond minus any amounts already paid out under the bond. (59117)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59118)

Amended by: (59119)

Acts 2007, 80th Leg., R.S., Ch. 421 (S.B. 1269), Sec. 7, eff. September 1, 2007. (59120)

Sec. 604.006. BOND INURES TO PERSONS AGGRIEVED. (59121)(1-click HTML)

In a suit arising from the defalcation of a public officer or the misapplication or misappropriation of money by a public officer, the official bond of the officer inures to the benefit of a person aggrieved by the defalcation or misapplication or misappropriation occurring in the period covered by the bond. (59122)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59123)

Sec. 604.007. LIMITATION. (59124)(1-click HTML)

For purposes of limitation, a suit on an official bond of a public officer arising from the defalcation of the officer or the misapplication or misappropriation of money by the officer is an action for debt founded on a contract in writing governed by Section 16.004, Civil Practice and Remedies Code. (59125)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59126)

CHAPTER 605. EIGHT-HOUR WORKDAY (59127)(1-click HTML)
Sec. 605.001. EIGHT-HOUR WORKDAY FOR CERTAIN PUBLIC WORKS. (59128)(1-click HTML)

Eight hours of work in a calendar day constitute a day's work for a laborer, worker, or mechanic employed by or on behalf of the state or a political subdivision of the state for the construction, repair, or improvement of a building, bridge, road, highway, stream, or levee or for other similar work. (59129)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59130)

Sec. 605.002. LENGTH OF WORKDAY; EMERGENCY WORK. (59131)(1-click HTML)

(a) In a contract for any work made by or on behalf of the state or a legal or political subdivision of the state eight hours constitutes a day's work. (59132)

(b) The time spent by a worker in going to and from the workplace is not a part of the hours of work. (59133)

(c) A person having a contract with the state or a legal or political subdivision of the state may not require or permit a laborer, worker, or mechanic to work more than eight hours in a calendar day, except: (59134)

(1) in employment to which the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) applies; (59135)

(2) in an emergency that may arise in a time of war; (59136)

(3) to protect property or human life; (59137)

(4) for the housing of inmates of a public institution in case of fire or destruction by the elements; or (59138)

(5) for work financed in whole or part by the federal government or any of its agencies in which the total number of hours a week required or permitted of a worker does not exceed the number of hours a week allowed by federal regulation. (59139)

(d) A laborer, worker, or mechanic who works in an emergency described by Subsection (c) more than eight hours in a calendar day is entitled to be paid according to the workday provided by Subsection (a). (59140)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59141)

Sec. 605.003. CRIMINAL OFFENSE. (59142)(1-click HTML)

(a) A person or officer, agent, or employee of the person commits an offense if the person or officer, agent, or employee of the person violates any provision of this chapter. (59143)

(b) An offense under this section is a misdemeanor punishable by a fine of not less than $50 or more than $1,000 and confinement in jail for not more than six months or both a fine and confinement. (59144)

(c) Each day a person violates a provision of this chapter is a separate offense. (59145)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59146)

Sec. 605.004. FEDERAL LABOR STANDARDS ACT EXEMPTION. (59147)(1-click HTML)

An employer who complies with the overtime provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. Sec. 201 et seq.) is considered to comply with the eight-hour day requirements of this chapter and is not civilly or criminally liable for a violation of the requirements. (59148)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59149)

CHAPTER 606. SOCIAL SECURITY (59150)(1-click HTML)
Sec. 606.001. DEFINITIONS. (59151)(1-click HTML)

In this chapter: (59152)

(1) "Social security coverage" means federal old-age, survivors, and disability insurance benefits under 42 U.S.C. Chapter 7, Subchapter II. (59153)

(2) "Federal Insurance Contributions Act" means 26 U.S.C. Chapter 21. (59154)

(3) "Political subdivision" includes: (59155)

(A) a county; (59156)

(B) a municipality; or (59157)

(C) an instrumentality of the state, of another political subdivision, or of the state and another political subdivision: (59158)

(i) that is a juristic entity that is legally separate and distinct from the state or political subdivision; and (59159)

(ii) whose employees are not employees of the state or political subdivision. (59160)

(4) "Retirement system" means the Employees Retirement System of Texas. (59161)

(5) "Secretary" means the United States Secretary of Health and Human Services or an individual designated by the secretary to administer coverage of the Social Security Act to employees of a state and its political subdivisions. (59162)

(6) "Social Security Act" means Chapter 7, Title 42, United States Code (42 U.S.C. Section 301 et seq.), including regulations and requirements adopted under that chapter. (59163)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59164)

Sec. 606.002. ADMINISTRATION OF CHAPTER. (59165)(1-click HTML)

The executive director of the retirement system shall direct and administer the functions of the retirement system under this chapter. (59166)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59167)

Sec. 606.003. AGREEMENTS WITH SECRETARY. (59168)(1-click HTML)

(a) The retirement system may enter into agreements with the secretary to obtain social security coverage for employees of the state or a political subdivision. (59169)

(b) An agreement between the retirement system and the secretary may contain any appropriate provision, including a provision relating to coverage, benefits, contributions, effective date, modification, and administration. (59170)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59171)

SUBCHAPTER B. COVERAGE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS (59172)(1-click HTML)
Sec. 606.021. DEFINITIONS. (59173)(1-click HTML)

In this subchapter: (59174)

(1) "Employee" includes an officer of a political subdivision. (59175)

(2) "Employment" means service performed by an employee of a political subdivision except service: (59176)

(A) that in the absence of an agreement under this subchapter would constitute employment under the Social Security Act; (59177)

(B) that under the Social Security Act may not be included in an agreement between the retirement system and the secretary; or (59178)

(C) as a police officer in a position that, at the time the agreement is made, is subject to another retirement system of a municipality with a population of 250,000 or more, according to the most recent federal census before the date of the agreement. (59179)

(3) "Wages" means all remuneration for employment, including the cash value of all remuneration paid other than by cash. The term does not include remuneration that does not constitute "wages" under the Federal Insurance Contributions Act. (59180)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59181)

Sec. 606.022. AGREEMENTS WITH POLITICAL SUBDIVISIONS. (59182)(1-click HTML)

(a) The retirement system and the governing body of a political subdivision that is eligible under the Social Security Act may enter into an agreement to obtain social security coverage for the employees of the political subdivision. (59183)

(b) An agreement between the retirement system and the governing body: (59184)

(1) must include a provision that an action of the federal government may not impair or impede a retirement program of this state or a political subdivision; and (59185)

(2) may include any other appropriate provision, including a provision relating to coverage benefits, contributions, effective date, modification of the agreement, and administration. (59186)

(c) The retirement system shall prescribe the terms of agreements necessary to: (59187)

(1) carry out this subchapter; and (59188)

(2) insure the financial responsibility of the participating political subdivisions. (59189)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59190)

Sec. 606.023. RULES. (59191)(1-click HTML)

The retirement system shall adopt rules that it finds necessary to govern the application for and the eligibility of employees of a political subdivision to obtain social security coverage. (59192)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59193)

Sec. 606.024. PLAN FOR COVERAGE. (59194)(1-click HTML)

(a) To obtain social security coverage for its employees, a political subdivision must submit a plan for approval by the retirement system. (59195)

(b) The retirement system shall approve a plan if the retirement system finds that the plan: (59196)

(1) conforms to the retirement system's rules; (59197)

(2) conforms to federal law and agreements made between the federal government and the states; (59198)

(3) specifies the source of funds from which payments will be made and guarantees that this source will be adequate; (59199)

(4) provides methods for proper and efficient administration by the political subdivision that are found by the retirement system to be necessary; (59200)

(5) provides that the political subdivision will: (59201)

(A) report information at a time and in a form required by the retirement system; and (59202)

(B) comply with requirements of the retirement system or federal authorities for the receipt, correctness, and verification of reports; and (59203)

(6) specifies the personnel of the political subdivision who are responsible for making assessments, collections, and reports. (59204)

(c) The retirement system may not refuse to approve a submitted plan unless the retirement system gives the submitting political subdivision reasonable notice and an opportunity for a hearing. (59205)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59206)

Sec. 606.025. GUARANTEES FOR PAYMENT. (59207)(1-click HTML)

The retirement system by rule may require guarantees to create adequate security that a political subdivision will be financially responsible for its payments for at least the minimum period required by federal requirements to precede social security coverage cancellation. The guarantees may be in the form of: (59208)

(1) surety bonds; (59209)

(2) advance payments into an escrow account; (59210)

(3) detailed representations and assurances of priority dedication; or (59211)

(4) another legal undertaking. (59212)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59213)

Sec. 606.026. CONTRIBUTIONS BY POLITICAL SUBDIVISION. (59214)(1-click HTML)

(a) The governing body of a political subdivision may make contributions under an agreement to obtain social security coverage. (59215)

(b) The maximum compensation provided by statute for a county employee is not exceeded by the payment of a matching contribution by a political subdivision to obtain social security coverage for the employee. (59216)

(c) An instrumentality of the state that receives a direct legislative appropriation may contribute, for employees covered under Subtitle C, Title 8, only funds specifically appropriated for social security coverage. (59217)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59218)

Sec. 606.027. PROCEDURE FOR MAKING CONTRIBUTIONS. (59219)(1-click HTML)

(a) In accordance with state and federal requirements, a political subdivision that has an approved plan for social security coverage shall: (59220)

(1) make deductions from wages of employees whose services are covered by the plan; and (59221)

(2) pay matching contributions from the funds from which covered employees receive their compensation. (59222)

(b) The employment or continued employment of an employee covered by an approved plan of a political subdivision is consideration for the deductions. (59223)

(c) An employee or a political subdivision is not relieved from liability for a contribution if the political subdivision fails to deduct the contribution from the employee's wages. (59224)

(d) The county treasurer, or the person who acts as treasurer in a political subdivision other than a county, shall assess and collect the required contributions and transmit the contributions in accordance with federal requirements for the filing of reports and the payment of contributions. (59225)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59226)

Sec. 606.028. ADMINISTRATIVE EXPENSES. (59227)(1-click HTML)

(a) As agreed by the retirement system and the governing body of a political subdivision that has an approved plan, the retirement system shall require the political subdivision to pay the subdivision's proportionate share of the state administrative expenses for this subchapter by: (59228)

(1) an annual fee for the political subdivision; (59229)

(2) an annual fee for each employee covered; (59230)

(3) an amount equal to a percentage of the contributions made to federal authorities; or (59231)

(4) any other equitable measure. (59232)

(b) A political subdivision may make payment for administrative expenses under this section from any available fund not otherwise dedicated. (59233)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59234)

Sec. 606.029. DELINQUENT PAYMENTS. (59235)(1-click HTML)

(a) The retirement system may require in an agreement with a political subdivision that interest be paid on delinquent payments. (59236)

(b) The retirement system may bring suit to collect a delinquent payment and interest on the payment. (59237)

(c) The retirement system may direct the comptroller to deduct a delinquent payment and interest from funds payable by the state to the delinquent political subdivision that are expressly subject to deduction. The comptroller shall send to the retirement system in trust the amount deducted for the contribution of the delinquent political subdivision. (59238)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.39, eff. Sept. 1, 1997. (59239)

Sec. 606.030. SOCIAL SECURITY ADMINISTRATION FUND. (59240)(1-click HTML)

(a) The social security administration fund is outside the treasury. The comptroller is the custodian of the fund and shall administer the fund separately from other funds as directed by the retirement system. Credits of money in the fund are not state funds or subject to legislative appropriation. (59241)

(b) The retirement system shall deposit in the fund all money collected for administrative expenses under Section 606.028. (59242)

(c) The comptroller shall issue warrants for disbursements from the fund under sworn vouchers executed by the executive director of the retirement system or a person designated by the director. (59243)

(d) The fund may be used to pay: (59244)

(1) interest assessed as a penalty by the United States secretary of the treasury because of delinquent payment of contributions under this subchapter; or (59245)

(2) any expense necessary for the retirement system to administer this subchapter. (59246)

(e) A salary or expenditure paid from the fund shall be consistent with a comparable item in and the general provisions of the General Appropriations Act. (59247)

(f) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 618, Sec. 26(a)(2), eff. September 1, 2013. (59248)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.40, eff. Sept. 1, 1997. (59249)

Amended by: (59250)

Acts 2013, 83rd Leg., R.S., Ch. 618 (S.B. 1459), Sec. 26(a)(2), eff. September 1, 2013. (59251)

Sec. 606.031. EXPENDITURES. (59252)(1-click HTML)

The retirement system may employ personnel, purchase equipment, and make other expenditures as necessary to administer this subchapter. (59253)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59254)

SUBCHAPTER C. COVERAGE FOR STATE EMPLOYEES (59255)(1-click HTML)
Sec. 606.061. DEFINITIONS. (59256)(1-click HTML)

In this subchapter: (59257)

(1) "Employee tax" means the tax imposed by Section 3101 of the Internal Revenue Code of 1986 (26 U.S.C. Section 3101). (59258)

(2) "Employment" means service performed by a state employee except service: (59259)

(A) that in the absence of an agreement under this subchapter would constitute employment under the Social Security Act; or (59260)

(B) that under the Social Security Act may not be included in an agreement between the retirement system and the secretary. (59261)

(3) "State agency" means: (59262)

(A) a department, commission, board, office, or other agency in the executive or legislative branch created by the constitution or a statute of this state; (59263)

(B) the supreme court, the court of criminal appeals, a court of appeals, or the Texas Judicial Council; or (59264)

(C) a university system or an institution of higher education as defined by Section 61.003, Education Code. (59265)

(4) "State employee" includes an elected or appointed state officer but does not include an individual who: (59266)

(A) is compensated by fees; or (59267)

(B) is in a position eligible for membership in the Teacher Retirement System of Texas unless the person is employed by a state department, agency, or institution. (59268)

(5) "Wages" means all remuneration for employment, including the cash value of all remuneration paid other than by cash, except for remuneration that does not constitute "wages" under the Federal Insurance Contributions Act. (59269)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59270)

Sec. 606.062. DUTY OF EXECUTIVE DIRECTOR. (59271)(1-click HTML)

The executive director of the retirement system shall negotiate the best possible contract for social security coverage for state employees. (59272)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59273)

Sec. 606.063. CONTRIBUTIONS BY STATE AGENCY. (59274)(1-click HTML)

A state agency may pay contributions on social security coverage of the agency's state employees who are paid from the state treasury as required by an agreement with the secretary from funds appropriated to the comptroller for that purpose. A contribution made under this section is not considered compensation to the employee under any state law. (59275)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59276)

Sec. 606.064. EMPLOYEE CONTRIBUTIONS. (59277)(1-click HTML)

(a) Each state employee, including a judge paid by the state, for whom an agreement for social security coverage is in effect under this subchapter shall pay contributions on wages in the amount of the employee tax. (59278)

(b) The obligation provided by this section is a condition of employment or of holding office. (59279)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 417, Sec. 1, eff. Dec. 1, 1995. (59280)

Sec. 606.066. COLLECTION OF EMPLOYEE'S CONTRIBUTION. (59281)(1-click HTML)

(a) On the authorization of the head of a state agency, the disbursing officer of the department shall deduct from each payroll of a state employee with social security coverage the amount of the employee's contribution paid by the employee under this subchapter. The total amount deducted shall be paid in accordance with federal requirements. (59282)

(b) The head of a state agency shall, for each payroll: (59283)

(1) certify to the comptroller in the manner prescribed by the comptroller: (59284)

(A) the amount of a state employee's contribution to be deducted from the employee's salary; and (59285)

(B) the total amount to be deducted from all salaries; and (59286)

(2) include the total amount in the payroll voucher. (59287)

(c) If an amount less than the amount of the employee's contribution under this subchapter is deducted from a state employee's salary for the employee's contribution, the employee is liable for the difference between the amount deducted and the correct amount of the contribution. (59288)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59289)

Sec. 606.067. COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES PAID FROM TREASURY. (59290)(1-click HTML)

(a) For a state employee who is paid from the state treasury, the legislature shall appropriate, from the same fund from which the employee is paid, an amount equal to the state's contributions under Section 606.063. (59291)

(b) The state agency shall certify at the end of each payroll period to the comptroller in a manner prescribed by the comptroller the total amount of the department's state contributions for that period for employees paid from the state treasury. (59292)

(c) A state agency having employees paid from the state treasury shall include in the budget information the department submits to the Legislative Budget Board and the budget division of the governor's office a certification of the amount necessary to pay contributions of the state for the following biennium. The governor shall include this amount in the budget that the governor submits to the legislature. (59293)

(d) All money appropriated to the comptroller for the contributions of the state shall be allocated to the state agency according to rules adopted by the comptroller. (59294)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 417, Sec. 2, eff. Dec. 1, 1995. (59295)

Sec. 606.068. COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES NOT PAID FROM TREASURY. (59296)(1-click HTML)

(a) For state employees who are paid from funds not in the state treasury, the head of a state agency shall certify to the department's disbursing officer the total amount of the state's contributions based on compensation paid the employees. (59297)

(b) The disbursing officer of a state agency that has state employees who are paid from funds not in the state treasury shall pay the total amount of contributions of the state for employees in accordance with federal requirements. (59298)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59299)

Sec. 606.069. METHOD OF MAKING CONTRIBUTIONS TO FEDERAL GOVERNMENT. (59300)(1-click HTML)

A state agency shall comply with federal requirements for filing reports and paying contributions. (59301)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59302)

Sec. 606.070. RULES AND REPORTS. (59303)(1-click HTML)

(a) The retirement system may, as it finds necessary to the efficient administration of this subchapter, adopt rules and require state agencies to file reports. (59304)

(b) The retirement system shall certify to the comptroller any state agency that has not filed a required report within the specified time. (59305)

(c) The comptroller shall withhold salary or expense reimbursement warrants to the head or an employee of a state agency that the retirement system certifies under Subsection (b). On notification from the retirement system that the report has been filed, the comptroller shall release the warrants. (59306)

(d) If a state agency whose employees are not paid from funds in the state treasury is notified that a required report is delinquent, the disbursing officer may not pay a salary or an expense reimbursement. A disbursing officer is liable both personally and on the officer's official bond if the officer pays a salary or an expense reimbursement after notification of a delinquent report by the retirement system. (59307)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59308)

Sec. 606.071. EXPENDITURES. (59309)(1-click HTML)

The retirement system may employ personnel, including accountants and attorneys, purchase equipment, and make other expenditures as necessary to administer this subchapter. (59310)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59311)

Sec. 606.072. BENEFITS FOR STATE EMPLOYEES UNDER BOTH STATE AND FEDERAL LAW. (59312)(1-click HTML)

A state employee may receive benefits under both Chapters 811 through 815 and the Social Security Act. (59313)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59314)

SUBCHAPTER D. COVERAGE FOR STATE EMPLOYEES PAID FROM FEDERAL FUNDS (59315)(1-click HTML)
Sec. 606.101. COVERAGE. (59316)(1-click HTML)

Subchapter B applies to a state employee or officer who is paid entirely from federal funds but is classified as a state employee by the federal government. (59317)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59318)

CHAPTER 607. BENEFITS RELATING TO CERTAIN DISEASES AND ILLNESSES (59319)(1-click HTML)
SUBCHAPTER A. CONTAGIOUS DISEASES (59320)(1-click HTML)
Sec. 607.001. DEFINITION. (59321)(1-click HTML)

In this chapter, "public safety employee" means a peace officer, fire fighter, detention officer, county jailer, or emergency medical services employee of this state or a political subdivision of this state. (59322)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59323)

Amended by: (59324)

Acts 2005, 79th Leg., Ch. 986 (H.B. 1928), Sec. 1, eff. September 1, 2005. (59325)

Sec. 607.002. REIMBURSEMENT. (59326)(1-click HTML)

A public safety employee who is exposed to a contagious disease is entitled to reimbursement from the employing governmental entity for reasonable medical expenses incurred in treatment for the prevention of the disease if: (59327)

(1) the disease is not an "ordinary disease of life" as that term is used in the context of a workers' compensation claim; (59328)

(2) the exposure to the disease occurs during the course of the employment; and (59329)

(3) the employee requires preventative medical treatment because of exposure to the disease. (59330)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59331)

Sec. 607.003. PHYSICIAN OF CHOICE. (59332)(1-click HTML)

A public safety employee who is exposed to a disease described by Section 607.002 is entitled to be treated for the prevention of that disease by the physician of the employee's choice. (59333)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59334)

Sec. 607.004. PREVENTATIVE IMMUNIZATIONS AND VACCINATIONS. (59335)(1-click HTML)

(a) A certified fire fighter or other governmental employee who operates an ambulance or who responds to emergency medical calls is entitled to preventative immunization for any disease to which the fire fighter or other governmental employee may be exposed in performing official duties and for which immunization is possible. (59336)

(b) The employee and any member of the employee's immediate family are entitled to vaccination for a contagious disease to which the employee is exposed during the course of employment. (59337)

(c) The employing governmental entity may satisfy the requirements of this section by: (59338)

(1) providing the immunization or vaccination without charge; or (59339)

(2) reimbursing the employee for any necessary and reasonable expenses incurred by the employee for the immunization or vaccination. (59340)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59341)

SUBCHAPTER B. DISEASES OR ILLNESSES SUFFERED BY FIREFIGHTERS AND EMERGENCY MEDICAL TECHNICIANS (59342)(1-click HTML)
Sec. 607.051. DEFINITIONS. (59343)(1-click HTML)

In this subchapter: (59344)

(1) "Disability" means partial or total disability. (59345)

(2) "Emergency medical technician" means an individual who is certified as an emergency medical technician by the Department of State Health Services as provided by Chapter 773, Health and Safety Code, and who is employed by a political subdivision. (59346)

(3) "Firefighter" means: (59347)

(A) an individual who is defined as fire protection personnel under Section 419.021; or (59348)

(B) an individual who is a volunteer firefighter certified by the Texas Commission on Fire Protection or the State Firemen's and Fire Marshals' Association of Texas. (59349)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59350)

Sec. 607.052. APPLICABILITY. (59351)(1-click HTML)

(a) Notwithstanding any other law, this subchapter applies only to a firefighter or emergency medical technician who: (59352)

(1) on becoming employed or during employment as a firefighter or emergency medical technician, received a physical examination that failed to reveal evidence of the illness or disease for which benefits or compensation are sought using a presumption established by this subchapter; (59353)

(2) is employed for five or more years as a firefighter or emergency medical technician; and (59354)

(3) seeks benefits or compensation for a disease or illness covered by this subchapter that is discovered during employment as a firefighter or emergency medical technician. (59355)

(b) A presumption under this subchapter does not apply: (59356)

(1) to a determination of a survivor's eligibility for benefits under Chapter 615; (59357)

(2) in a cause of action brought in a state or federal court except for judicial review of a proceeding in which there has been a grant or denial of employment-related benefits or compensation; (59358)

(3) to a determination regarding benefits or compensation under a life or disability insurance policy purchased by or on behalf of the firefighter or emergency medical technician that provides coverage in addition to any benefits or compensation required by law; or (59359)

(4) if the disease or illness for which benefits or compensation is sought is known to be caused by the use of tobacco and: (59360)

(A) the firefighter or emergency medical technician is or has been a user of tobacco; or (59361)

(B) the firefighter's or emergency medical technician's spouse has, during the marriage, been a user of tobacco that is consumed through smoking. (59362)

(c) This subchapter does not create a cause of action. (59363)

(d) This subchapter does not enlarge or establish a right to any benefit or compensation or eligibility for any benefit or compensation. (59364)

(e) A firefighter or emergency medical technician who uses a presumption established under this subchapter is entitled only to the benefits or compensation to which the firefighter or emergency medical technician would otherwise be entitled to receive at the time the claim for benefits or compensation is filed. (59365)

(f) For purposes of this subchapter, an individual described by Section 607.051(3)(B) is considered to have been employed or compensated while the individual actively served as a volunteer firefighter. An individual who actively serves as a volunteer firefighter is one who participates in a minimum of 40 percent of the drills conducted by the individual's department and 25 percent of the fire or other emergency calls received by the department during the time that the volunteer firefighter is on call. (59366)

(g) This subchapter applies to a firefighter or emergency medical technician who provides services as an employee of an entity created by an interlocal agreement. (59367)

(h) Subsection (b)(4) only prevents the application of the presumption authorized by this subchapter and does not affect the right of a firefighter or emergency medical technician to provide proof, without the use of that presumption, that an injury or illness occurred during the course and scope of employment. (59368)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59369)

Sec. 607.053. IMMUNIZATION; SMALLPOX. (59370)(1-click HTML)

(a) A firefighter or emergency medical technician is presumed to have suffered a disability or death during the course and scope of employment if the firefighter or emergency medical technician: (59371)

(1) received preventative immunization against smallpox, or another disease to which the firefighter or emergency medical technician may be exposed during the course and scope of employment and for which immunization is possible; and (59372)

(2) suffered death or total or partial disability as a result of the immunization. (59373)

(b) An immunization described by this section is considered preventative whether the immunization occurs before or after exposure to the disease for which the immunization is prescribed. (59374)

(c) A presumption established under Subsection (a) may not be rebutted by evidence that the immunization was: (59375)

(1) not required by the employer; (59376)

(2) not required by law; or (59377)

(3) received voluntarily or with the consent of the firefighter or emergency medical technician. (59378)

(d) A firefighter or emergency medical technician who suffers from smallpox that results in death or total or partial disability is presumed to have contracted the disease during the course and scope of employment as a firefighter or emergency medical technician. (59379)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59380)

Sec. 607.054. TUBERCULOSIS OR OTHER RESPIRATORY ILLNESS. (59381)(1-click HTML)

A firefighter or emergency medical technician who suffers from tuberculosis, or any other disease or illness of the lungs or respiratory tract that has a statistically positive correlation with service as a firefighter or emergency medical technician, that results in death or total or partial disability is presumed to have contracted the disease or illness during the course and scope of employment as a firefighter or emergency medical technician. (59382)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59383)

Sec. 607.055. CANCER. (59384)(1-click HTML)

(a) A firefighter or emergency medical technician who suffers from cancer resulting in death or total or partial disability is presumed to have developed the cancer during the course and scope of employment as a firefighter or emergency medical technician if: (59385)

(1) the firefighter or emergency medical technician: (59386)

(A) regularly responded on the scene to calls involving fires or fire fighting; or (59387)

(B) regularly responded to an event involving the documented release of radiation or a known or suspected carcinogen while the person was employed as a firefighter or emergency medical technician; and (59388)

(2) the cancer is known to be associated with fire fighting or exposure to heat, smoke, radiation, or a known or suspected carcinogen, as described by Subsection (b). (59389)

(b) This section applies only to a type of cancer that may be caused by exposure to heat, smoke, radiation, or a known or suspected carcinogen as determined by the International Agency for Research on Cancer. (59390)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59391)

Sec. 607.056. ACUTE MYOCARDIAL INFARCTION OR STROKE. (59392)(1-click HTML)

(a) A firefighter or emergency medical technician who suffers an acute myocardial infarction or stroke resulting in disability or death is presumed to have suffered the disability or death during the course and scope of employment as a firefighter or emergency medical technician if: (59393)

(1) while on duty, the firefighter or emergency medical technician: (59394)

(A) was engaged in a situation that involved nonroutine stressful or strenuous physical activity involving fire suppression, rescue, hazardous material response, emergency medical services, or other emergency response activity; or (59395)

(B) participated in a training exercise that involved nonroutine stressful or strenuous physical activity; and (59396)

(2) the acute myocardial infarction or stroke occurred while the firefighter or emergency medical technician was engaging in the activity described under Subdivision (1). (59397)

(b) For purposes of this section, "nonroutine stressful or strenuous physical activity" does not include clerical, administrative, or nonmanual activities. (59398)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59399)

Sec. 607.057. EFFECT OF PRESUMPTION. (59400)(1-click HTML)

Except as provided by Section 607.052(b), a presumption established under this subchapter applies to a determination of whether a firefighter's or emergency medical technician's disability or death resulted from a disease or illness contracted in the course and scope of employment for purposes of benefits or compensation provided under another employee benefit, law, or plan, including a pension plan. (59401)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59402)

Sec. 607.058. PRESUMPTION REBUTTABLE. (59403)(1-click HTML)

(a) A presumption under Section 607.053, 607.054, 607.055, or 607.056 may be rebutted through a showing by a preponderance of the evidence that a risk factor, accident, hazard, or other cause not associated with the individual's service as a firefighter or emergency medical technician caused the individual's disease or illness. (59404)

(b) A rebuttal offered under this section must include a statement by the person offering the rebuttal that describes, in detail, the evidence that the person reviewed before making the determination that a cause not associated with the individual's service as a firefighter or emergency medical technician caused the individual's disease or illness. (59405)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59406)

Amended by: (59407)

Acts 2015, 84th Leg., R.S., Ch. 224 (H.B. 1388), Sec. 1, eff. May 29, 2015. (59408)

Sec. 607.059. PROHIBITED PAYMENT. (59409)(1-click HTML)

No payment shall be made to the subsequent injury fund under Section 403.007, Labor Code, for any death resulting from a disease or illness presumed to have been contracted in the course and scope of employment under this subchapter. (59410)

Added by Acts 2005, 79th Leg., Ch. 695 (S.B. 310), Sec. 3, eff. September 1, 2005. (59411)

SUBCHAPTER C. OTHER DISEASES OR ILLNESSES SUFFERED BY FIREFIGHTERS AND EMERGENCY MEDICAL TECHNICIANS (59412)(1-click HTML)
Sec. 607.101. DEFINITIONS. (59413)(1-click HTML)

In this subchapter: (59414)

(1) "Emergency medical technician" means an individual who is certified as an emergency medical technician by the Department of State Health Services as provided by Chapter 773, Health and Safety Code, and who is a full-time employee of a political subdivision. (59415)

(2) "Firefighter" means an individual who is defined as fire protection personnel under Section 419.021 and is a full-time employee of a political subdivision. (59416)

Added by Acts 2009, 81st Leg., R.S., Ch. 1049 (H.B. 4560), Sec. 1, eff. September 1, 2009. (59417)

Sec. 607.102. NOTIFICATION. (59418)(1-click HTML)

An emergency response employee or volunteer, as defined by Section 81.003, Health and Safety Code, who is exposed to methicillin-resistant Staphylococcus aureus or a disease caused by a select agent or toxin identified or listed under 42 C.F.R. Section 73.3 is entitled to receive notification of the exposure in the manner prescribed by Section 81.048, Health and Safety Code. (59419)

Added by Acts 2009, 81st Leg., R.S., Ch. 1049 (H.B. 4560), Sec. 1, eff. September 1, 2009. (59420)

Amended by: (59421)

Acts 2015, 84th Leg., R.S., Ch. 1278 (S.B. 1574), Sec. 2, eff. September 1, 2015. (59422)

CHAPTER 608. PAYROLL DEDUCTION FOR SAVINGS BONDS (59423)(1-click HTML)
Sec. 608.001. DEFINITIONS. (59424)(1-click HTML)

In this chapter: (59425)

(1) "Department administrator" means the chief administrator of a department of state government of which an individual executing an authorization is an officer or employee. (59426)

(2) "Disbursing officer" means the disbursing officer of a political subdivision of which an individual executing an authorization is an officer or employee. (59427)

(3) "Political subdivision" means a county, municipality, or other political subdivision of this state. (59428)

(4) "Savings bonds" means United States savings bonds. (59429)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59430)

Sec. 608.002. AUTHORIZATION FOR PAYROLL DEDUCTION. (59431)(1-click HTML)

(a) An officer or employee of this state or of a political subdivision may voluntarily authorize the individual's department administrator or disbursing officer, as appropriate, to deduct from the individual's compensation an amount to be used to purchase savings bonds. (59432)

(b) An authorization must: (59433)

(1) be in writing or recorded by electronic means; and (59434)

(2) state: (59435)

(A) the period for which the authorization is to be in effect; (59436)

(B) the amount to be deducted; and (59437)

(C) the denomination of the savings bonds to be purchased. (59438)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.09(b), eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1467, Sec. 1.22, eff. June 19, 1999. (59439)

Sec. 608.003. WITHHOLDING; DEDUCTION FROM PAYROLL. (59440)(1-click HTML)

(a) A department administrator or disbursing agent, as appropriate, may withhold the amount authorized under Section 608.002 from an individual's compensation each payday. (59441)

(b) If a withholding is made, the department administrator or disbursing officer shall make a deduction when the payroll of a state department or a political subdivision is presented to the comptroller or disbursing officer, as appropriate, for payment. (59442)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 1467, Sec. 1.23, eff. June 19, 1999. (59443)

Sec. 608.005. PAYMENT TO DEPARTMENT ADMINISTRATOR OR DISBURSING OFFICER. (59444)(1-click HTML)

(a) When the payroll of a state department is presented to the comptroller for payment, the comptroller shall pay to the department administrator the full amount deducted from the department's payroll for the payroll period to purchase savings bonds on behalf of department officers and employees. (59445)

(b) When the payroll of a political subdivision is presented to the disbursing officer for payment, the disbursing officer shall pay to the disbursing officer the full amount deducted from the political subdivision's payroll for the payroll period to purchase savings bonds on behalf of officers and employees of the political subdivision. (59446)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 1467, Sec. 1.24, eff. June 19, 1999. (59447)

Sec. 608.006. FORM OF PAYROLL. (59448)(1-click HTML)

(a) The comptroller shall prescribe the proper form of payroll for state officers and employees to comply with this chapter. (59449)

(b) A disbursing officer shall prescribe the proper form of payroll for officers and employees of the disbursing officer's political subdivision to comply with this chapter. (59450)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59451)

Sec. 608.007. TRUST ACCOUNT. (59452)(1-click HTML)

(a) A department administrator shall deposit money received under Section 608.005(a) with the comptroller to be held in trust by the comptroller until disbursed by the department administrator to purchase savings bonds for an individual designated in an authorization under Section 608.002 filed with the department administrator. (59453)

(b) A disbursing officer shall deposit money received under Section 608.005(b) with the comptroller of the political subdivision to be held in trust by the comptroller until disbursed by the disbursing officer to purchase savings bonds for an individual designated in an authorization under Section 608.002 filed with the disbursing officer. (59454)

(c) Money held in trust under this section shall be deposited in an account designated as the savings bond payroll savings account. (59455)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.41, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1467, Sec. 1.25, eff. June 19, 1999. (59456)

Sec. 608.008. PURCHASE OF SAVINGS BONDS. (59457)(1-click HTML)

(a) A department administrator and a disbursing officer shall use money deducted and held in trust under this chapter to purchase savings bonds on behalf of an individual who has executed an authorization under Section 608.002, in the denomination designated and authorized in the individual's authorization, when an amount sufficient to make a purchase has been withheld. (59458)

(b) A department administrator or disbursing officer, on receipt of a savings bond purchased under Subsection (a), shall immediately deliver the bond to the individual entitled to it or shall mail the bond to the address designated by the individual in the authorization. (59459)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59460)

Sec. 608.009. RECORDS. (59461)(1-click HTML)

A department administrator and disbursing officer shall keep records at all times, itemizing money deducted and disbursed by the department administrator or disbursing officer under this chapter. (59462)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59463)

Sec. 608.010. TERMINATION OF DEDUCTION. (59464)(1-click HTML)

(a) A department administrator or disbursing officer shall stop deducting money under this chapter from the compensation of an officer or employee if: (59465)

(1) the individual stops being an officer or employee of the department or political subdivision; (59466)

(2) the individual notifies the department administrator or disbursing officer by electronic means or in writing that the individual elects to cancel the authorization; or (59467)

(3) the arrangement for deducting money by department administrators or disbursing officers is terminated. (59468)

(b) On termination as provided by Subsection (a), any money that has been deducted from an officer's or employee's compensation but has not been used to purchase savings bonds shall be remitted immediately to the individual from whose compensation the money has been deducted. (59469)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.09(a), eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1467, Sec. 1.26, eff. June 19, 1999. (59470)

Sec. 608.011. NO LIABILITY ON OFFICIAL BOND. (59471)(1-click HTML)

A department administrator or disbursing officer is not liable on a bond required of the individual as an official because of a duty imposed on the individual by this chapter. (59472)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59473)

CHAPTER 609. DEFERRED COMPENSATION PLANS (59474)(1-click HTML)
Sec. 609.001. DEFINITIONS. (59475)(1-click HTML)

In this chapter: (59476)

(1) "Board of trustees" means the board of trustees of the Employees Retirement System of Texas. (59477)

(2) "Employee" means an individual who is an officer or employee of a state agency or political subdivision, as appropriate. (59478)

(2-a) "Institution of higher education" means an institution of higher education as defined by Section 61.003, Education Code. (59479)

(3) "Investment income" means the amount earned from investment in a qualified investment product of compensation deferred under a deferred compensation plan. (59480)

(4) "Participating employee" means an employee who contracts to participate in a deferred compensation plan. (59481)

(5) "Plan administrator" means the person responsible for administering a deferred compensation plan. (59482)

(6) "Political subdivision" means a governmental entity in the state that is not a state agency and includes a county, municipality, school district, river authority, other special purpose district or authority, and junior college district. (59483)

(7) "Qualified vendor" means a vendor approved by a plan administrator or with whom a plan administrator has contracted for participation in the deferred compensation plan. (59484)

(8) "State agency" means a board, commission, office, department, or other agency in the executive, judicial, or legislative branch of state government, including an institution of higher education. (59485)

(9) "Vendor" means a private entity that sells investment products. (59486)

(10) "401(k) plan" means an employees' deferred compensation plan, the federal income tax treatment of which is governed by Section 401(k) of the Internal Revenue Code of 1986 (26 U.S.C. Section 401(k)). (59487)

(11) "457 plan" means an employees' deferred compensation plan, the federal income tax treatment of which is governed by Section 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 457). (59488)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 2.01, eff. Jan. 1, 2004. (59489)

Amended by: (59490)

Acts 2005, 79th Leg., Ch. 347 (S.B. 1176), Sec. 2, eff. September 1, 2005. (59491)

Sec. 609.002. QUALIFICATIONS FOR QUALIFIED VENDOR. (59492)(1-click HTML)

A vendor may be a qualified vendor for a 457 plan or a 401(k) plan created by a political subdivision, group of political subdivisions, an institution of higher education, or a group of institutions of higher education only if the vendor satisfies the requirements for participation in the deferred compensation plan provided by: (59493)

(1) this chapter; and (59494)

(2) the plan administrator. (59495)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 2.02, eff. Jan. 1, 2004. (59496)

Sec. 609.003. QUALIFIED INVESTMENT PRODUCT. (59497)(1-click HTML)

(a) To be classified as a qualified investment product for a deferred compensation plan, an investment product must be approved by the plan administrator to receive investments under the plan. The approval of an investment product for a 457 plan must be in writing. (59498)

(b) The approval of an investment product for a 401(k) plan of a political subdivision, group of political subdivisions, an institution of higher education, or a group of institutions of higher education, or for a 457 plan of an institution of higher education or group of institutions of higher education, must be in accordance with a contract between the plan administrator and a qualified vendor. (59499)

(c) A qualified investment product may be offered only by a qualified vendor of the deferred compensation plan. (59500)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 2.03, eff. Jan. 1, 2004. (59501)

Sec. 609.004. PERMISSIBLE USE OF PUBLIC FUNDS. (59502)(1-click HTML)

A deferred compensation plan governed by this chapter is a permissible use of the funds of a state agency or political subdivision. (59503)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59504)

Sec. 609.005. PLAN AS COMPENSATION. (59505)(1-click HTML)

(a) A deferred compensation plan is a part of an employee's compensation and is in addition to a retirement, pension, or benefit system established by law. (59506)

(b) The deferral of compensation does not reduce retirement, pension, or other benefits provided by law unless the reduction is required by federal law. (59507)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59508)

Sec. 609.006. CONFORMANCE TO OR CONFLICT WITH FEDERAL LAW. (59509)(1-click HTML)

(a) A deferred compensation plan must conform to federal law to provide that deferred amounts and investment income are not includable, for federal income tax purposes, in the gross income of a participating employee until distributed to the employee, subject to the employee's option to designate or convert all or a portion of deferred amounts as or to Roth contributions under Section 609.1025 or 609.5021, as applicable, the federal income tax treatment of which is governed by Section 402A, Internal Revenue Code of 1986. (59510)

(b) Federal law controls to the extent that this chapter materially conflicts with: (59511)

(1) Section 401(k), Internal Revenue Code of 1986 (26 U.S.C. Section 401(k)); (59512)

(2) Section 457, Internal Revenue Code of 1986 (26 U.S.C. Section 457); or (59513)

(3) other federal law, including a federal rule governing deferred compensation plans. (59514)

(c) For the purposes of Subsection (b), a conflict is material only if, for federal income tax purposes, it is reasonably certain to result in the inclusion of an employee's deferred amounts or investment income in the employee's gross income before the amounts or income are distributed to the employee. (59515)

(d) The board of trustees of the Employees Retirement System of Texas may adopt rules necessary to make a deferred compensation plan established under Subchapter C a qualified plan under federal law, including federal rules and regulations. (59516)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59517)

Amended by: (59518)

Acts 2009, 81st Leg., R.S., Ch. 444 (H.B. 2283), Sec. 1, eff. September 1, 2009. (59519)

Acts 2013, 83rd Leg., R.S., Ch. 80 (S.B. 366), Sec. 1, eff. May 18, 2013. (59520)

Sec. 609.007. CONTRACT FOR DEFERMENT OF COMPENSATION. (59521)(1-click HTML)

(a) A political subdivision may contract with an employee of the political subdivision for the deferment of any part of the employee's compensation. (59522)

(b) The board of trustees of the Employees Retirement System of Texas may contract with an employee of a state agency participating in a deferred compensation plan for the deferment of any part of the employee's compensation. (59523)

(c) Except as provided by Section 609.5025, to participate in a deferred compensation plan, an employee must consent in the contract to automatic payroll deductions in an amount equal to the deferred amount. (59524)

(d) A contract created under this section need not be in writing and may be communicated to the plan administrator electronically or by any other means approved by the plan's trustees. (59525)

(e) An institution of higher education may contract with an employee of the institution of higher education for the deferment of any part of the employee's compensation. (59526)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 1541, Sec. 51, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1266, Sec. 2.04, eff. Jan. 1, 2004. (59527)

Amended by: (59528)

Acts 2007, 80th Leg., R.S., Ch. 1409 (H.B. 957), Sec. 2, eff. June 15, 2007. (59529)

Sec. 609.008. CREDITING TRUST FUND INTEREST. (59530)(1-click HTML)

Interest earned on an employee's deferred amounts and investment income deposited in any of the deferred compensation trust funds, as defined by Section 609.101, or to which Section 609.512 applies is credited to the employee. (59531)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1111, Sec. 1, eff. Sept. 1, 2003. (59532)

Sec. 609.009. TRUST FOR 457 PLAN. (59533)(1-click HTML)

An employee's deferred amounts and investment income under a 457 plan and the qualified investment products in which the amounts are invested are held in trust for the exclusive benefit of participants and their beneficiaries in accordance with Section 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 457). For purposes of this section, custodial accounts and contracts described by Section 457 are treated as trusts. A trust does not have to be established before January 1, 1999, for a 457 plan in existence on August 20, 1996. (59534)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1048, Sec. 38, eff. Sept. 1, 1997. (59535)

Sec. 609.010. LIABILITY; RESPONSIBILITY FOR MONITORING. (59536)(1-click HTML)

(a) The board of trustees, a state agency, a political subdivision, a plan administrator, or an employee of any of those persons is not liable to a participating employee for the diminution in value or loss of all or part of the participating employee's deferred amounts or investment income because of market conditions or the failure, insolvency, or bankruptcy of a qualified vendor. (59537)

(b) A participating employee is responsible for monitoring: (59538)

(1) the financial status of the qualified vendor in whose products the employee's deferred amounts and investment income are invested; (59539)

(2) market conditions; and (59540)

(3) the amount of the employee's deferred amounts and investment income that is invested in the qualified vendor's product. (59541)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59542)

Sec. 609.011. NOTIFICATION BY PLAN ADMINISTRATOR. (59543)(1-click HTML)

(a) The plan administrator of a plan established under this chapter may notify an employee participating in the plan that the administrator believes that: (59544)

(1) a qualified vendor is having significant financial difficulties; or (59545)

(2) the amount of the employee's deferred amounts and investment income invested with a qualified vendor exceeds an insured or guaranteed level. (59546)

(b) A plan administrator is not liable to a participating employee for a loss resulting from the failure to notify the employee under this section. (59547)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1111, Sec. 2, eff. Sept. 1, 2003. (59548)

Sec. 609.012. TRANSFER FROM A PLAN VENDOR. (59549)(1-click HTML)

The plan administrator of a plan established under this chapter may immediately transfer to the plan's deferred compensation trust fund all deferred amounts and investment income from a vendor who at any time fails to satisfy the requirements of this chapter or the plan administrator. A vendor may not charge a fee or penalty as the result of a plan administrator's transfer under this section. Immediately after making the transfer, the plan administrator shall give to each employee whose deferred amounts and investment income were transferred a notice that states that: (59550)

(1) the vendor's investment products are ineligible to receive additional deferred amounts; (59551)

(2) the amounts have been transferred from the vendor to the deferred compensation trust fund; and (59552)

(3) the employee is required to promptly designate another qualified investment product to receive the transferred amount. (59553)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1111, Sec. 2, eff. Sept. 1, 2003. (59554)

Sec. 609.013. INABILITY TO DISTRIBUTE. (59555)(1-click HTML)

If a plan administrator cannot distribute promptly an employee's deferred amounts and investment income when a distribution is due and permissible under federal law, the plan administrator shall deposit the amount to be distributed in the deferred compensation trust fund defined by Section 609.101 or described by Section 609.512, as appropriate. (59556)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59557)

Sec. 609.014. COORDINATION OF PLANS. (59558)(1-click HTML)

Notwithstanding any other provision of this chapter, an institution of higher education, as defined by Section 61.003, Education Code, participating in a group benefits program under Chapter 1551, Insurance Code, may participate under this chapter only in a deferred compensation plan described by Subchapter C. (59559)

Added by Acts 2003, 78th Leg., ch. 1310, Sec. 30, eff. June 20, 2003. (59560)

Sec. 609.015. BENEFICIARY CAUSING DEATH OF PARTICIPATING EMPLOYEE. (59561)(1-click HTML)

(a) Any benefits, funds, or account balances payable on the death of a participating employee may not be paid to a person convicted of or adjudicated as having caused that death but instead are payable as if the convicted person had predeceased the decedent. (59562)

(b) The plan is not required to change the recipient of any benefits, funds, or account balances under this section unless it receives actual notice of the conviction or adjudication of a beneficiary. However, the plan may delay payment of any benefits, funds, or account balances payable on the death of a participating employee pending the results of a criminal investigation or civil proceeding and other legal proceedings relating to the cause of death. (59563)

(c) For the purposes of this section, a person has been convicted of or adjudicated as having caused the death of a participating employee if the person: (59564)

(1) pleads guilty or nolo contendere to, or is found guilty by a court or jury in a criminal proceeding of, causing the death of the participating employee, regardless of whether sentence is imposed or probated, and no appeal of the conviction is pending and the time provided for appeal has expired; or (59565)

(2) is found liable by a court or jury in a civil proceeding for causing the death of the participating employee and no appeal of the judgment is pending and the time provided for appeal has expired. (59566)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1249 (S.B. 1664), Sec. 1, eff. September 1, 2011. (59567)

SUBCHAPTER B. DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF POLITICAL SUBDIVISIONS (59568)(1-click HTML)
Sec. 609.101. DEFINITIONS. (59569)(1-click HTML)

In this subchapter: (59570)

(1) "Deferred compensation plan" means a plan established under this subchapter. (59571)

(2) "Deferred compensation trust fund" means the fund in which deferred amounts and investment income of participating employees are temporarily held. (59572)

(3) "Investment product" includes a life insurance policy, fixed or variable rate annuity, mutual fund, certificate of deposit, money market account, passbook savings account, stock, bond, obligation, and any other investment product not prohibited under Section 457 or 401(k), Internal Revenue Code of 1986, as amended. (59573)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 890, Sec. 1, eff. Sept. 1, 2001. (59574)

Sec. 609.102. CREATION OF PLAN. (59575)(1-click HTML)

(a) A political subdivision may create and administer for its employees a 401(k) plan under this subchapter. (59576)

(b) A political subdivision may create and administer for its employees a 457 plan under this subchapter. (59577)

(c) A political subdivision may contract with other political subdivisions to create a single deferred compensation plan for their employees under Subsection (a) or (b). (59578)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59579)

Sec. 609.1025. ROTH CONTRIBUTION PROGRAMS. (59580)(1-click HTML)

A political subdivision may: (59581)

(1) establish a qualified Roth contribution program in accordance with Section 402A, Internal Revenue Code of 1986, under which an employee may: (59582)

(A) designate all or a portion of the employee's contribution under a 401(k) plan as a Roth contribution at the time the contribution is made; or (59583)

(B) convert all or a portion of the employee's previous contribution under the plan to a Roth contribution; and (59584)

(2) if authorized by federal law, establish a program in accordance with the applicable federal law under which an employee may: (59585)

(A) designate all or a portion of the employee's contribution under a 457 plan as a Roth contribution at the time the contribution is made; or (59586)

(B) convert all or a portion of the employee's previous contribution under the plan to a Roth contribution. (59587)

Added by Acts 2013, 83rd Leg., R.S., Ch. 80 (S.B. 366), Sec. 2, eff. May 18, 2013. (59588)

Sec. 609.103. DESIGNATION OF PLAN ADMINISTRATOR. (59589)(1-click HTML)

(a) A political subdivision that creates a deferred compensation plan shall designate a plan administrator for the plan. (59590)

(b) Political subdivisions that create a single plan shall designate jointly a plan administrator for the plan. (59591)

(c) A plan administrator may be an employee, a nonprofit corporation, an individual, a trustee, a private entity, another political subdivision, or an association of political subdivisions. (59592)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59593)

Sec. 609.104. REMOVAL OF PLAN ADMINISTRATOR. (59594)(1-click HTML)

A political subdivision or group of political subdivisions that designates a plan administrator may remove the plan administrator at any time unless specifically provided otherwise by contract. (59595)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59596)

Sec. 609.105. DELEGATION OF 401(K) PLAN ADMINISTRATOR'S AUTHORITY AND RESPONSIBILITIES. (59597)(1-click HTML)

A plan administrator of a 401(k) plan may delegate the administrator's authority and responsibilities under this subchapter to another person. (59598)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59599)

Sec. 609.106. OVERSIGHT COMMITTEE. (59600)(1-click HTML)

(a) A political subdivision or group of political subdivisions that creates a deferred compensation plan may direct and supervise the activities of the plan administrator through an oversight committee. (59601)

(b) The political subdivision or group shall determine the authority, activities, and composition of an oversight committee created under this section. (59602)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59603)

Sec. 609.107. AUTHORITY OF PLAN ADMINISTRATOR. (59604)(1-click HTML)

(a) A plan administrator shall execute necessary contracts for the administration of the deferred compensation plan, subject to any prior approval required by the political subdivision or group of political subdivisions that created the plan. (59605)

(b) A plan administrator shall develop and implement criteria and procedures for any matter not covered by this subchapter that the plan administrator considers appropriate for the operation of the deferred compensation plan. (59606)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59607)

Sec. 609.108. INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS AND INCOME. (59608)(1-click HTML)

The plan administrator shall: (59609)

(1) invest the deferred amounts and investment income of a participating employee in the qualified investment products designated by the employee; and (59610)

(2) transfer the deferred amounts and investment income of a participating employee from one qualified investment product to another on the employee's request. (59611)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59612)

Sec. 609.109. PARTICIPATION OF INDEPENDENT CONTRACTORS. (59613)(1-click HTML)

(a) The plan administrator shall determine whether a person who provides services as an independent contractor to a political subdivision that created the plan may participate in the deferred compensation plan. (59614)

(b) For the purposes of Subchapter A and this subchapter, an independent contractor that is authorized to participate in a deferred compensation plan is treated as an employee of the political subdivision creating the plan. (59615)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59616)

Sec. 609.110. CHANGING AMOUNT DEFERRED. (59617)(1-click HTML)

An employee may change the amount to be deferred by notifying the plan administrator of the change in accordance with the requirements of the administrator. (59618)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59619)

Sec. 609.111. DISTRIBUTION. (59620)(1-click HTML)

A plan administrator shall develop and implement procedures for: (59621)

(1) the designation by a participating employee of a beneficiary to receive the employee's deferred amounts and investment income after the employee's death; and (59622)

(2) the distribution of a participating employee's deferred amounts and investment income to the employee or the employee's beneficiary, as appropriate, because of the employee's death or termination of employment, a financial hardship, or another reason permissible under federal law. (59623)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59624)

Sec. 609.112. FEE. (59625)(1-click HTML)

(a) A political subdivision or group of political subdivisions that creates a deferred compensation plan may assess a fee for the administration of the plan against each participating employee. (59626)

(b) The political subdivision or group of political subdivisions shall determine the method for computing and assessing the fee. (59627)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59628)

Sec. 609.113. EVALUATION AND APPROVAL OF QUALIFIED VENDOR. (59629)(1-click HTML)

(a) A plan administrator shall develop and implement criteria and procedures for evaluating a vendor's application to become a qualified vendor. (59630)

(b) A plan administrator may not approve a vendor's application if the vendor is: (59631)

(1) a state or national bank or savings and loan association, the deposits of which are not insured by the Federal Deposit Insurance Corporation; (59632)

(2) a credit union, the deposits of which are not insured by the National Credit Union Administration Board or the Texas Share Guaranty Credit Union; or (59633)

(3) an insurance company that: (59634)

(A) is not a member of the Texas Life and Health Insurance Guaranty Association; or (59635)

(B) is an impaired or insolvent insurer under Chapter 463, Insurance Code. (59636)

(c) On written request, the Texas Department of Insurance shall certify in writing to a plan administrator whether an insurance company is prohibited from being approved as a qualified vendor under Subsection (b)(3). The plan administrator may rely on the certification. (59637)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59638)

Amended by: (59639)

Acts 2011, 82nd Leg., R.S., Ch. 14 (S.B. 567), Sec. 12, eff. September 1, 2011. (59640)

Sec. 609.114. NUMBER OF VENDORS UNDER 457 PLAN. (59641)(1-click HTML)

The plan administrator of a 457 plan shall determine the minimum and maximum number of vendors that may be qualified vendors for the plan at any given time. (59642)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59643)

Sec. 609.115. CONTRACT WITH QUALIFIED VENDOR. (59644)(1-click HTML)

(a) After a plan administrator approves an application of a vendor to become a qualified vendor or, under a 401(k) plan, after the plan administrator approves an application of a vendor to become a qualified vendor and approves the vendor's investment products, the plan administrator shall execute a written contract with the vendor to participate in the deferred compensation plan. (59645)

(b) A plan administrator shall develop and implement criteria and procedures for evaluating a qualified vendor's investment products to determine whether those products are acceptable as qualified investment products. (59646)

(c) A qualified vendor may offer to employees participating in a 457 plan only qualified investment products. (59647)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59648)

Sec. 609.116. REGULATION OF QUALIFIED VENDORS. (59649)(1-click HTML)

A plan administrator shall develop and implement requirements for qualified vendors and their employees concerning disclosure, reporting, standards of conduct, solicitation, advertising, relationships with participating employees, the nature and quality of services provided to those employees, and other matters. (59650)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59651)

Sec. 609.117. LOANS UNDER 401(K) PLAN. (59652)(1-click HTML)

The plan administrator of a 401(k) plan shall develop and implement procedures to efficiently administer a program that allows a qualified vendor to lend money to a participating employee. (59653)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59654)

Sec. 609.1175. LOANS UNDER 457 PLAN. (59655)(1-click HTML)

The plan administrator of a 457 plan may develop and implement procedures to efficiently administer a program under the plan that allows a qualified vendor to lend money to a participating employee. (59656)

Added by Acts 2013, 83rd Leg., R.S., Ch. 80 (S.B. 366), Sec. 3, eff. May 18, 2013. (59657)

Sec. 609.118. TRUST FOR 401(K) PLAN. (59658)(1-click HTML)

A political subdivision or group of political subdivisions that creates a 401(k) plan may: (59659)

(1) establish a trust to hold deferred amounts and investment income for the benefit of participating employees; and (59660)

(2) act as trustee of the trust. (59661)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59662)

Sec. 609.119. TRANSFER ON VENDOR'S FAILURE. (59663)(1-click HTML)

A political subdivision or group of subdivisions that creates a deferred compensation plan may authorize or require as a part of the plan that the plan administrator immediately transfer to the deferred compensation trust fund all deferred amounts and investment income from a vendor who fails to satisfy the requirements of this subchapter or the plan administrator. (59664)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59665)

SUBCHAPTER C. DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF STATE AGENCIES (59666)(1-click HTML)
Sec. 609.501. DEFINITION. (59667)(1-click HTML)

In this subchapter, "deferred compensation plan" means a plan established under this subchapter. (59668)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59669)

Sec. 609.502. CREATION OF PLAN; PARTICIPATION. (59670)(1-click HTML)

(a) The board of trustees of the Employees Retirement System of Texas is the trustee and the plan administrator of a 401(k) plan and a 457 plan, collectively known as the TexaSaver program, established under this subchapter. (59671)

(b) The board of trustees shall administer all aspects of each plan. (59672)

(c) The board of trustees may designate a person to assist in the execution of the board's authority and responsibilities as plan administrator. (59673)

(d) A state agency may participate in either or both plans. (59674)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1048, Sec. 39, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1111, Sec. 3, eff. Sept. 1, 2003. (59675)

Sec. 609.5021. ROTH CONTRIBUTION PROGRAMS. (59676)(1-click HTML)

The board of trustees may: (59677)

(1) establish a qualified Roth contribution program in accordance with Section 402A, Internal Revenue Code of 1986, under which an employee may designate all or a portion of the employee's contribution under a 401(k) plan as a Roth contribution at the time the contribution is made; and (59678)

(2) if authorized by federal law, establish a program in accordance with the applicable federal law under which an employee may designate all or a portion of the employee's contribution under a 457 plan as a Roth contribution at the time the contribution is made. (59679)

Added by Acts 2009, 81st Leg., R.S., Ch. 444 (H.B. 2283), Sec. 2, eff. September 1, 2009. (59680)

Sec. 609.5025. AUTOMATIC PARTICIPATION; DEFAULT INVESTMENT PRODUCT. (59681)(1-click HTML)

(a) This section applies only to an employee of a state agency participating in a 401(k) plan. (59682)

(b) An employee participates in a 401(k) plan unless the employee affirmatively elects not to participate in the plan. Notwithstanding Sections 609.007(b) and (c), an employee is not required to affirmatively contract for and consent to participation in a plan under this section. (59683)

(c) An employee participating in a 401(k) plan under this section makes a contribution of one percent of the compensation earned by the employee to a default investment product selected by the board of trustees based on the criteria established under Section 609.505(d) and the rules adopted under Subsection (f). The contribution is made by automatic payroll deduction. (59684)

(d) At any time, an employee participating in a 401(k) plan under this section may, in accordance with rules adopted by the board of trustees, elect to end participation in the 401(k) plan, to contribute to a different investment product, to contribute a different amount to the plan, or to designate all or a portion of the employee's contribution as a Roth contribution subject to the availability of a Roth contribution program under Section 609.5021. (59685)

(e) The board of trustees shall ensure that, at the time of employment, each employee is informed of: (59686)

(1) the elections the employee may make under this section; and (59687)

(2) the responsibilities of the employee under Section 609.010. (59688)

(f) The board of trustees shall adopt rules to implement the requirements of this section. The rules must ensure that the operation of the 401(k) plan under this section conforms to the applicable requirements of any federal rule that provides fiduciary relief for investments in qualified default investment alternatives or otherwise governs default investment alternatives under participant-directed individual account plans. (59689)

(g) The amount deducted under this section from an employee's compensation is not deducted for payment of a debt and the automatic payroll deduction is not garnishment or assignment of wages. (59690)

(h) Within existing resources, a state agency participating in a 401(k) plan shall inform new hires of their automatic enrollment in a 401(k) account and their right to opt-out of enrollment. Within existing resources, this information shall be included as part of the new employee orientation process. State agencies participating in a 401(k) plan shall maintain a record of a new hire's acknowledgement of receipt of information regarding the ability to opt-out of enrollment in a 401(k) plan. (59691)

Added by Acts 2007, 80th Leg., R.S., Ch. 1409 (H.B. 957), Sec. 1, eff. June 15, 2007. (59692)

Amended by: (59693)

Acts 2009, 81st Leg., R.S., Ch. 444 (H.B. 2283), Sec. 3, eff. September 1, 2009. (59694)

Sec. 609.5026. STATE MATCHING CONTRIBUTIONS. (59695)(1-click HTML)

Subject to a separate legislative appropriation for that purpose, the Employees Retirement System of Texas may make matching contributions to a 401(k) plan on behalf of employees participating in the plan solely from, and in an amount specified by, the appropriation. (59696)

Added by Acts 2009, 81st Leg., R.S., Ch. 444 (H.B. 2283), Sec. 4, eff. September 1, 2009. (59697)

Sec. 609.503. CHANGING AMOUNT DEFERRED. (59698)(1-click HTML)

An employee may change the amount to be deferred by notifying the board of trustees in accordance with the requirements of the board of trustees. (59699)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.10(a), eff. Sept. 1, 1995. (59700)

Sec. 609.504. INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS AND INCOME. (59701)(1-click HTML)

After execution of a contract under Section 609.007, the board of trustees shall: (59702)

(1) invest the deferred amounts and investment income of the employee in the qualified investment products designated by the employee; and (59703)

(2) promptly transfer the deferred amounts and investment income of the employee from one qualified investment product to another in accordance with the requirements of the board of trustees. (59704)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.10(a), eff. Sept. 1, 1995. (59705)

Sec. 609.505. QUALIFIED VENDOR. (59706)(1-click HTML)

(a) The board of trustees or a third party administrator approved by the board, in accordance with rules adopted under this subchapter, may contract with a vendor qualified to participate in a deferred compensation plan. (59707)

(b) In a contract under Subsection (a), the board of trustees may require the vendor to be audited annually by an independent auditor paid by the vendor. (59708)

(c) A vendor or investment product having an ownership or other financial interest in the contractor selected by the board of trustees to administer a deferred compensation plan is not qualified to participate in that plan. (59709)

(d) The board of trustees shall select vendors or investment products based on the quality of investment performance, proven ability to manage institutional assets, minimum net worth requirements, fee structure, compliance with applicable federal and state laws, and other criteria established by the board. The board of trustees shall determine the minimum and maximum number of vendors and investment products that may be offered by a plan at any particular time. (59710)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 1541, Sec. 52, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1111, Sec. 4, eff. Sept. 1, 2003. (59711)

Sec. 609.506. INSURANCE COMPANY AS QUALIFIED VENDOR. (59712)(1-click HTML)

On written request, the Texas Department of Insurance shall certify in writing to the board of trustees whether an insurance company is eligible to be a qualified vendor under rules adopted by the board. The board is entitled to rely on the certification. (59713)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59714)

Sec. 609.507. FINANCIAL INSTITUTION AS QUALIFIED VENDOR. (59715)(1-click HTML)

Each bank or savings and loan association that is a qualified vendor is not required to comply with Chapter 404 with regard to deferrals and investment income, but shall comply with plan rules that deal with vendors and investment products. (59716)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 586, Sec. 44, eff. Aug. 28, 1995. (59717)

Sec. 609.508. RULES. (59718)(1-click HTML)

(a) The board of trustees may adopt rules, including plans and procedures, and orders necessary to carry out the purposes of this subchapter, including rules or orders relating to: (59719)

(1) the selection and regulation of vendors for a deferred compensation plan; (59720)

(2) the regulation of the practices of agents employed by vendors and a participating employee's use and reimbursement of investment advisors participating in the program; (59721)

(3) the disclosure of information concerning investment products; (59722)

(4) the regulation of advertising materials to be used by vendors; (59723)

(5) the submission of financial information by a vendor; and (59724)

(6) the development of a system to facilitate electronic authorization, distribution, transfer, and investment of deferrals. (59725)

(b) The plan administrator of the TexaSaver 401(k) or the TexaSaver 457 plan may adopt rules and procedures to allow a participating employee, subject to applicable requirements of the Internal Revenue Code of 1986, to obtain a loan from the employee's account. (59726)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.10(a), eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 1111, Sec. 5, eff. Sept. 1, 2003. (59727)

Sec. 609.509. CONTRACTS FOR GOODS AND SERVICES. (59728)(1-click HTML)

(a) The board of trustees may contract for necessary goods and consolidated billing, accounting, and other services to be provided in connection with a deferred compensation plan. (59729)

(b) In a contract under Subsection (a), the board of trustees may provide for the board to audit periodically the person with whom the contract is made. The audit may cover: (59730)

(1) the proper handling and accounting of state or trust funds; and (59731)

(2) other matters related to the proper performance of the contract. (59732)

(c) The board of trustees may contract with a private entity to conduct the audit under Subsection (b). (59733)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1048, Sec. 40, eff. Sept. 1, 1997. (59734)

Sec. 609.510. EXEMPTION FOR CERTAIN CONTRACTS. (59735)(1-click HTML)

A contract authorized by Section 609.505 or by Section 609.509 for either deferred compensation plan is exempt from: (59736)

(1) Subtitle D, Title 10; (59737)

(2) Chapter 463; and (59738)

(3) Chapter 2254. (59739)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.19(5), eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1541, Sec. 53, eff. Sept. 1, 1999. (59740)

Sec. 609.511. FEE. (59741)(1-click HTML)

(a) The board of trustees may assess a fee against participating employees or qualified vendors, or both the employees and the qualified vendors, in the manner and to the extent it determines necessary to cover the costs of administering the plan. (59742)

(b) The board of trustees shall determine the method for computing and assessing a fee under this section. (59743)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. (59744)

Sec. 609.512. DEFERRED COMPENSATION PLAN TRUST FUNDS. (59745)(1-click HTML)

(a) The TexaSaver 401(k) trust fund is in the state treasury. The fund is for the benefit of the program described by Section 609.001(10). (59746)

(b) The TexaSaver 457 trust fund is in the state treasury. The fund is for the benefit of the program described by Section 609.001(11). (59747)

(c) The board of trustees shall administer each trust fund. (59748)

(d) Deferred amounts, fees collected under Section 609.511, and state appropriations for the administration of a deferred compensation plan shall be credited to the appropriate trust fund. (59749)

(e) The interest on and earnings of amounts in a trust fund and the proceeds from the sale of investments shall be credited to the fund. (59750)

(f) The amounts credited to a trust fund are available without fiscal year limitation: (59751)

(1) to pay expenses for administering the deferred compensation plan for which the trust fund was established; and (59752)

(2) to purchase qualified investment products for participants of the appropriate plan. (59753)

(g) The board of trustees may establish accounts in a trust fund that it considers necessary, including an account for the administration of the deferred compensation plan for which the trust fund was established. (59754)

(h) The board of trustees may transfer assets from one account of a trust fund to another account of the fund for financial management purposes if adequate arrangements are made to: (59755)

(1) reimburse the account from which the transfer is made; and (59756)

(2) pay administrative expenses. (59757)

(i) The board of trustees may invest and reinvest money in a trust fund subject only to the duty of care provided by Section 815.307 that would apply if the investments were being made for the Employees Retirement System of Texas. (59758)

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1048, Sec. 41, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1111, Sec. 6, eff. Sept. 1, 2003. (59759)

Sec. 609.513. DISCRETIONARY TRANSFER. (59760)(1-click HTML)

(a) The board of trustees may transfer an employee's deferred amounts and investment income from a qualified investment product to the trust fund of the deferred compensation plan in which the employee participates if the board of trustees determines that the transfer is in the best interest of the plan and the employee. (59761)

  

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