HBA-TBM, CCH H.B. 877 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 877
By: Flores
Appropriations
7/16/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, the Employee Retirement System of Texas
(ERS) did not provide benefits to the surviving spouses and minor children
(survivor) of certain public employees, including state peace officers or
employees of the institutional division or state jail division of the Texas
Department of Criminal Justice (employees) killed in the line of duty who
had not yet vested in ERS at the time of death.  Providing survivor
benefits to the beneficiaries of deceased officers and employees would help
to ease the financial burden that compounds a surviving family's emotional
difficulties.  House Bill 877 provides survivor benefits for the family of
state peace officers and employees killed in the line of duty.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 877 amends the Government Code relating to the benefits provided
to the surviving spouse, children, or parent of certain public employees
killed in the line of duty.  A surviving child rather than a minor child of
such a public employee is eligible to receive a death benefit payment if
there is no surviving spouse.  A surviving parent rather than a surviving
dependent parent is eligible to receive a death benefit payment if there is
no surviving spouse or child.  The bill removes provisions related to a
surviving dependent sibling and a surviving parent of the deceased public
employee.  Except for changes in law regarding dependent siblings, these
provisions apply only to the death of a public employee that occurs on or
after September 1, 2001.  The modifications of provisions regarding
dependent siblings apply to the death of a public employee that occurs on
or after September 1, 2001 (Sec. 615.021 and SECTION 9).  

The bill increases the payment to an eligible surviving spouse of a
deceased public employee from $50,000 to $250,000 and provides for
distribution of the money if there is no eligible surviving spouse or child
(Sec. 615.022).  The bill provides education benefits for a surviving
spouse or dependent child of a deceased peace officer including exemption
from tuition and fees at an institution of higher education payment by the
institution of the student's food, housing, and textbooks.  These
provisions apply only to the death of a public employee that occurs on or
after on September 1, 2001 (Sec. 615.0225 and SECTION 9).   

The bill sets forth provisions relating to the benefits provided to the
surviving spouse or minor children of a peace officer (officer) or an
employee of the institutional division or state jail division of the Texas
Department of Criminal Justice (employee) killed in the line of duty who
had not qualified for an annuity under an employees' retirement plan.  The
bill requires the state to pay for the deceased officer or employee's
funeral expenses and the greater of monthly annuity payments that the
deceased officer or employee would have received had the officer or
employee survived and retired on the last day of the month in which the
officer or employee died, or the minimum monthly annuity payment the
deceased officer or employee would have received if the officer or employee
had been employed by the state for 10 years, had been paid a salary at the
lowest amount provided by the General Appropriations Act for a peace
officer or employee, and had been eligible to retire under the Employees
Retirement System of Texas  (ERS).  The bill entitles a surviving spouse to
receive monthly payments until the surviving spouse remarries, becomes
eligible for retirement under an employees' retirement plan, or becomes
eligible for Social Security benefits. The bill authorizes the ERS to
require the surviving spouse to provide information as necessary to
administer these provisions.  The bill authorizes ERS to adopt rules
necessary to administer these provisions.  ERS shall apply reduction
factors, as applicable to an annuity payable under these provisions, in the
same manner the factors are applied to a death benefit plan administered by
the system.  These provisions apply only to the death of a public employee
that occurs on or after on September 1, 2001 (Sec. 615.121 and SECTION 10).

If an eligible surviving spouse does not exist, the state is required to
pay the funeral expenses of the deceased officer or employee to the
guardian or legal representative of any surviving minor children.  These
benefits supplement any other benefits provided under current law.  These
provisions apply only to the death of a public employee that occurs on or
after on September 1, 2001 (Secs. 615.122 and 615.123 and SECTION 10).  The
bill repeals provisions related to payments to a surviving minor child,
spouse, or dependent sibling.  Except for changes in law regarding
dependent siblings, these provisions apply only to the death of a public
employee that occurs on or after September 1, 2001.  The modifications of
provisions regarding dependent siblings apply to the death of a public
employee that occurs on or after June 17, 2001 (SECTIONS 8 and 9).   

EFFECTIVE DATE

September 1, 2001.