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HB 476

Tax Return Donation Amendments

2025 General Session Introduced by Luz Escamilla and 1 co-sponsor

Shifts reversal of forfeited retirement benefits from the State Treasurer to the relevant Boards of Trustees; restored benefits require lump-sum repayment plus 6.5% interest.

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Bill Summary · HB 476

HB 476 — Department of State Treasurer Technical Corrections / Administrative Changes (2025)

Status: Enacted (Session Law 2025‑19); signed by Governor 6/26/2025
Introduced: 11/12/2024

Purpose and intent

HB 476 makes targeted technical and administrative changes to statutes governing the Department of State Treasurer and several state retirement systems. The bill clarifies decision‑making authority for certain benefit‑forfeiture reversals and adjusts procedural rules for charter schools seeking participation in the Teachers’ and State Employees’ Retirement System (TSERS). The changes are intended to streamline administrative responsibilities and clarify which body (the Board of Trustees or the State Treasurer) makes specified determinations.

Key provisions

Part I — Charter school provisional entry into TSERS
- Extends and clarifies the provisional entry process for charter schools that seek to join TSERS:
- A charter school initially granted provisional entry for one year may have that provisional entry extended by the Board of Trustees by up to two additional years.
- After the initial provisional year (or during the extended provisional period), the charter school must undergo actuarial and financial reviews required by the Board prior to full entry.
- The financial review is based on financial statements and independent audit reports (or functionally equivalent reports). A charter school unable to provide the required information is ineligible for entry.
- The Board may accept a charter school’s application conditionally, contingent on receipt of a financially sound independent audit; such conditional approvals may result in continued provisional participation for up to one additional year or until the application is denied.
- Applicability: the Part applies to charter schools seeking TSERS participation (or in provisional entry) on or after the act’s effective date.

Part II — Reversal of benefit forfeitures (felonious conduct)
- Reassigns authority to decide reversal of benefit forfeitures (for convictions later vacated/ pardoned or otherwise set aside) from the State Treasurer to the relevant Board of Trustees.
- Affected statutes/retirement systems include: Teachers’ & State Employees’ Retirement System, Local Governmental Employees’ Retirement System, Consolidated Judicial Retirement System, and the Legislative Retirement System.
- If the Board of Trustees determines reversal is appropriate, benefits are restored only after:
- Repayment in a lump sum of all accumulated contributions previously received under the forfeiture provisions, plus interest compounded annually at 6.5% for each calendar year from the year of forfeiture to repayment.
- Reinstatement of the service credit forfeited.

Who is affected

  • Charter schools seeking TSERS participation and their employees (affects timing and requirements for entry).
  • Members or former members of the listed retirement systems whose benefits were forfeited because of felony convictions that are later vacated or pardoned.
  • The Boards of Trustees of the affected retirement systems (assume added decision authority and responsibilities).
  • The Office of the State Treasurer (administrative role reduced with respect to reversal determinations).

Administrative and fiscal considerations

  • The bill is largely procedural/administrative. Potential impacts include increased Board workload for actuarial/financial reviews and for adjudicating reversal requests. Restored benefits contingent on lump‑sum repayment plus interest mean no new recurring benefit obligations if repayment is made; however, processing and actuarial review resources may be required.
  • Part I imposes documentation and audit requirements on charter schools, which may affect their administrative costs and timeline to join TSERS.

Effective date and timeline

  • Enacted as Session Law 2025‑19 and signed by the Governor on 6/26/2025. Provisions apply as specified in the Act (the charter school provisions apply to schools seeking entry on or after the act’s effective date).

Compiled from official sources — confirm details with the bill’s official record.

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