83R5475 KFF-D
By: Martinez H.B. No. 3292
A BILL TO BE ENTITLED
AN ACT
relating to the continuation of the office of the fire fighters'
pension commissioner and the administration of the Texas emergency
services retirement system and the Texas local firefighters
retirement systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. AMENDMENTS TO CHAPTER 865, GOVERNMENT CODE
SECTION 1.01. Section 865.002, Government Code, is amended
by adding Subsections (c), (d), and (e) to read as follows:
(c) A person may not be a trustee or an employee of the
pension system employed in a "bona fide executive, administrative,
or professional capacity," as that phrase is used for purposes of
establishing an exemption to the overtime provisions of the federal
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of investment
or insurance; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of investment
or insurance.
(d) In this section, a Texas trade association means a
cooperative and voluntarily joined statewide association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest.
(e) A person may not serve as a trustee or act as the general
counsel to the state board or the pension system if the person is
required to register as a lobbyist under Chapter 305 because of the
person's activities for compensation on behalf of a business or an
association related to the operation of the state board.
SECTION 1.02. Chapter 865, Government Code, is amended by
adding Section 865.0035 to read as follows:
Sec. 865.0035. STATE BOARD MEMBER TRAINING. (a) A person
who is appointed to and qualifies for office as a member of the
state board may not vote, deliberate, or be counted as a member in
attendance at a meeting of the state board until the person
completes a training program that complies with this section.
(b) A training program must provide the person with
information regarding:
(1) this subtitle;
(2) the programs, functions, rules, and budget of the
pension system;
(3) the results of the most recent formal audit of the
system;
(4) the requirements of laws relating to open
meetings, public information, administrative procedure, and
conflicts of interest; and
(5) any applicable ethics policies adopted by the
system or the Texas Ethics Commission.
(c) A person appointed to the state board is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
ARTICLE 2. AMENDMENTS TO TEXAS LOCAL FIRE FIGHTERS RETIREMENT ACT
SECTION 2.01. Section 2, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended by amending Subdivision (1) and adding Subdivisions (1-a)
and (1-b) to read as follows:
(1) "Commissioner" means the fire fighters' pension
commissioner appointed under Section 21 of this Act.
(1-a) "Compensation" includes amounts of workers'
compensation benefits that are received by an employee and by which
the employee's salary is reduced.
(1-b) "Contribution" means an amount of money paid by
a municipality or other political subdivision to a retirement
system or required to be paid periodically to a retirement system by
or on behalf of a member of the retirement system for the purpose of
financing benefits payable by the system.
SECTION 2.02. Section 2(10), Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
redesignated as Section 2(1-c), Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), to
read as follows:
(1-c) [(10)] "Determination date" means:
(A) the day before the effective date of an
addition or change adopted by the board of trustees of a retirement
system under Section 7 of this Act; or
(B) the date of divorce for a member or retiree
whose benefits under this Act are subject to a qualified domestic
relations order.
SECTION 2.03. Section 18(g), Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
(g) A board of trustees established under this Act shall,
not later than February 28 of each year, file with the [fire
fighters' pension] commissioner a detailed and itemized report of
all receipts and disbursements with respect to its fund during the
fund's preceding fiscal year, together with a list of the members of
the board. A board shall file such additional information as is
required or requested from time to time by the [fire fighters'
pension] commissioner.
SECTION 2.04. Section 18A, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
Sec. 18A. ENFORCEMENT OF ACT. (a) If a board of trustees
fails or refuses to comply with an applicable requirement of this
Act, the [fire fighters' pension] commissioner may issue a subpoena
addressed to a sheriff or constable to require the production of
books, records, or other documents that may be necessary to provide
or determine compliance.
(b) The attorney general shall represent the [fire
fighters' pension] commissioner in the enforcement of this Act and
may file an appropriate pleading or action in a district court in
Travis County to enforce a subpoena or secure a writ of mandamus to
compel compliance with this Act.
SECTION 2.05. Section 21, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
Sec. 21. [FIRE FIGHTERS' PENSION] COMMISSIONER. (a) The
governor shall appoint, with the advice and consent of the senate, a
[fire fighters' pension] commissioner from lists, each containing
not fewer than three nor more than 10 nominees, that are submitted
by the State Firemen's and Fire Marshals' Association of Texas and
the Texas State Association of Fire Fighters.
(b) A person is not eligible for appointment as the [fire
fighters' pension] commissioner if the person or the person's
spouse:
(1) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving money from the office of the commissioner;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by or receiving money from the office of the
commissioner; or
(3) uses or receives a substantial amount of tangible
goods, services, or money from the office of the commissioner other
than compensation or reimbursement authorized by law for the [fire
fighters' pension] commissioner.
(c) Appointment of the [fire fighters' pension]
commissioner shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the
appointee.
(d) The [fire fighters' pension] commissioner serves a term
of six [four] years.
(e) The office of the [fire fighters' pension] commissioner
shall be located in Austin.
(g) The [fire fighters' pension] commissioner is entitled
to reimbursement by the state for actual and necessary expenses
incurred in performing functions of the office.
(h) The office of the [fire fighters' pension] commissioner
is subject to Chapter 325, Government Code (Texas Sunset Act).
Unless continued in existence as provided by that chapter, the
office is abolished September 1, 2025 [2013].
(i) Any reference in law to the firemen's pension
commissioner means the [fire fighters' pension] commissioner
provided by this section.
(j) The [fire fighters' pension] commissioner may conduct
seminars or workshops for persons interested in issues pertaining
to retirement systems under this Act. The commissioner may impose
and collect a fee for attendance at a seminar or workshop in an
amount that, in the aggregate, does not exceed the estimated costs
of preparing for and conducting the seminar or workshop. Fees
collected under this subsection shall be remitted to the
comptroller of public accounts for deposit in an account in the
general revenue fund to be known as the fire fighters' pension
commissioner account. Amounts in the account may be appropriated
only to the commissioner for the payment of administrative
expenses.
(k) A person may not serve as the [fire fighters' pension]
commissioner or act as the general counsel to the commissioner [or
to the office of the fire fighters' pension commissioner] if the
person is required to register as a lobbyist under Chapter 305,
Government Code, because of the person's activities for
compensation on behalf of a profession related to the operation of
the office of the [fire fighters' pension] commissioner.
SECTION 2.06. Section 21A, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended by amending Subsections (a), (b), (c), (f), (g), (h),
(h-1), (i), and (j) and adding Subsection (k) to read as follows:
(a) The [fire fighters' pension] commissioner shall provide
to the commissioner's employees [and to the state board of trustees
of the Fire Fighters' Relief and Retirement Fund established under
the Texas Statewide Volunteer Fire Fighters Retirement Act (Article
6243e.3, Vernon's Texas Civil Statutes)], as often as necessary,
information regarding the employees' [their] qualifications for
[office or] employment and [their] responsibilities under
applicable laws relating to standards of conduct for state
[officers or] employees.
(b) The [fire fighters' pension] commissioner or the
commissioner's designee shall develop a system of annual
performance evaluations. All merit pay for employees of the
commissioner must be based on the system established under this
subsection.
(c) The [fire fighters' pension] commissioner or the
commissioner's designee shall prepare and maintain a written policy
statement that implements a program of equal employment opportunity
to ensure that all personnel decisions are made without regard to
race, color, disability, sex, religion, age, or national origin.
The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the [office of the fire fighters'
pension] commissioner to avoid the unlawful employment practices
described by Chapter 21, Labor Code; and
(2) an analysis of the extent to which the composition
of the [office's] personnel of the commissioner's office is in
accordance with state and federal law and a description of
reasonable methods to achieve compliance with state and federal
law.
(f) The [fire fighters' pension] commissioner shall hear
appeals as provided by this Act and may examine the records and
accounts of boards of trustees established under this Act and adopt
rules and prescribe forms for the administration of this Act and
shall classify and coordinate the reports of the various boards of
trustees and shall verify any and all applications of the boards of
trustees.
(g) The [fire fighters' pension] commissioner shall file
annually with the governor and the presiding officer of each house
of the legislature a complete and detailed written report
accounting for all funds received and disbursed by the commissioner
during the preceding fiscal year, other than funds of the Texas
emergency services retirement fund [Fire Fighters' Relief and
Retirement Fund] established under Section 865.009, Government
Code [the Texas Statewide Volunteer Fire Fighters Retirement Act
(Article 6243e.3, Vernon's Texas Civil Statutes)]. The annual
report must be in the form and reported in the time provided by the
General Appropriations Act.
(h) The office of the [fire fighters' pension] commissioner
shall maintain a file on each written complaint filed with the
office. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the office;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the office closed the file without taking action other than to
investigate the complaint.
(h-1) The [fire fighters' pension] commissioner shall
prepare and maintain a written plan that describes how a person who
does not speak English or who has a physical, mental, or
developmental disability can be provided reasonable access to the
programs administered by the commissioner.
(i) The [office of the fire fighters' pension] commissioner
shall provide to the person filing the complaint and to each person
who is a subject of the complaint a copy of the commissioner's
[office's] policies and procedures relating to complaint
investigation and resolution.
(j) The [office of the fire fighters' pension]
commissioner, at least quarterly until final disposition of the
complaint, shall notify the person filing the complaint and each
person who is a subject of the complaint of the status of the
investigation unless the notice would jeopardize an undercover
investigation.
(k) The commissioner may accept on behalf of the
commissioner's office gifts of money or other property from any
public or private source.
SECTION 2.07. Section 22, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
Sec. 22. APPEALS FROM LOCAL BOARD DECISIONS. (a) A person
aggrieved by a decision of a board of trustees relating to
eligibility for or amount of benefits payable by a retirement
system may appeal the decision to the [fire fighters' pension]
commissioner.
(b) An appeal under this section is begun by delivering a
notice of appeal with the chairman, secretary, or
secretary-treasurer of the board of trustees that made the
decision. The notice must be delivered not later than the 20th day
after the date of the decision and contain a brief description of
the reasons or grounds for appeal. The aggrieved person must file a
copy of the notice with the [fire fighters' pension] commissioner.
(c) An appeal under this section to the [fire fighters'
pension] commissioner is held in Austin and is a contested case
under Chapter 2001, Government Code, [the Administrative Procedure
and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
Statutes)] conducted as a de novo hearing by the State Office of
Administrative Hearings.
(d) After a hearing under Subsection (c) of this section,
the commissioner shall decide each appeal from a board of trustees'
decision, issue a written opinion, and notify the board of trustees
and the claimant if the commissioner overrules the board of
trustees' decision.
SECTION 2.08. Section 22A, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
Sec. 22A. ATTORNEY. A board of trustees may employ an
attorney to represent the board in one or all legal matters,
including a hearing on appeal to the [fire fighters' pension]
commissioner. At the request of a board of trustees, the city
attorney of the municipality of which the board is a part shall,
without additional compensation, represent the board in one or all
legal matters.
SECTION 2.09. Section 26, Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
Sec. 26. GIFTS ACCEPTED FROM ANY SOURCE. The commissioner
or the board of trustees of a retirement system established under
this Act is authorized to accept and receive for the use and benefit
of the fund, in addition to member contributions and contributions
of the municipality or other political subdivision, gifts of money
from any source.
SECTION 2.10. Section 27(d), Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
(d) A board of trustees established under this Act shall
adopt formal investment policies that emphasize safety and
diversity as well as liquidity for benefit payments. In developing
those policies, the board of trustees shall give special
consideration to the preferred investment practices of the
Government Finance [Financial] Officers Association. Not later
than December 31 of each year, the board of trustees shall submit to
the [fire fighters' pension] commissioner a copy of the investment
policies adopted by the board.
SECTION 2.11. Sections 30(b) and (c), Texas Local Fire
Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
Statutes), are amended to read as follows:
(b) Contributions picked up as provided by this section
shall be treated as employer contributions in determining tax
treatment of the amounts under the Internal Revenue Code of 1986.
Each municipality or other political subdivision picking up
contributions shall continue, however, to compute federal income
tax withholding as if these contributions were employee wages until
the first payroll period that begins after the date the [fire
fighters' pension] commissioner files with the secretary of state a
notice stating that the United States Internal Revenue Service has
determined or a federal court has ruled that under Section 414(h),
Internal Revenue Code of 1986 [(26 U.S.C. Section 414(h))], the
contributions are not includable in the gross income of a member
until they are distributed or made available. Employee
contributions picked up as provided by this section shall be
deposited to the credit of the individual account of each affected
member and shall be treated for all other purposes of this Act as if
the contributions had been deducted from the compensation of
members. Picked up contributions are not includable in a
computation of contribution rates of the municipality or other
political subdivision.
(c) A pick up of employee contributions takes effect in a
municipality or other political subdivision on January 1 of the
year following the year in which:
(1) the governing body of the municipality or other
political subdivision by ordinance has adopted the pick up;
(2) the pick up has been approved by majority vote of
the participating members of the retirement system at an election
by secret ballot at which at least 50 percent of the participating
members vote; and
(3) the [fire fighters' pension] commissioner has
filed with the secretary of state a notice stating that the United
States Internal Revenue Service has issued a determination that the
plan covering employees of the municipality or other political
subdivision is a qualified retirement plan under Section 401(a),
Internal Revenue Code of 1986 [(26 U.S.C. Section 401(a))], and
that its related trust is tax exempt under Section 501(a) of that
code [(26 U.S.C. Section 501(a))].
SECTION 2.12. Sections 31(b) and (c), Texas Local Fire
Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
Statutes), are amended to read as follows:
(b) The board of trustees of a retirement system for a fire
department consisting partly of employees and partly of volunteers
may transfer assets actuarially attributable to the volunteers from
the retirement system under this Act to the Texas Emergency
Services Retirement System under Subtitle H, Title 8, Government
Code [statewide program provided by the Texas Statewide Volunteer
Fire Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
Statutes)], if the board obtains approval as provided by Section 7
of this Act provided 51 percent of the volunteers first petition the
board for such change.
(c) The [fire fighters' pension] commissioner shall
determine whether retirement systems for fire departments
consisting exclusively of volunteers are inactive, for purposes of
this Act, because of the infrequency of their submission of
contributions and reports required by this Act or other law. The
commissioner shall, not later than June 1, 1992, notify the boards
of trustees of retirement systems determined inactive under this
subsection of that determination. This Act does not apply after
December 31, 1992, to a retirement system determined inactive under
this subsection unless before that date, the retirement system has
completed an actuarial study of the retirement system and agreed to
provide financing to the retirement system determined by the
actuary to be sufficient to finance an actuarially sound system.
[The board of trustees of an inactive retirement system may, in lieu
of agreeing to actuarially sound financing, elect to transfer the
assets of the retirement system to the statewide program provided
by the Texas Statewide Volunteer Fire Fighters Retirement Act
(Article 6243e.3, Vernon's Texas Civil Statutes).]
SECTION 2.13. Section 32(a), Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
amended to read as follows:
(a) Information contained in records that are in the custody
of a retirement system established under this Act concerning an
individual member, retiree, annuitant, or beneficiary is
confidential under Section 552.101, Government Code [3(a)(1),
Chapter 424, Acts of the 63rd Legislature, Regular Session, 1973
(Article 6252-17a, Vernon's Texas Civil Statutes)], and may not be
disclosed in a form identifiable with a specific individual unless:
(1) the information is disclosed to:
(A) the individual;
(B) the individual's attorney, guardian,
executor, administrator, conservator, or other person who the board
of trustees of the retirement system determines is acting in the
interest of the individual or the individual's estate;
(C) a spouse or former spouse of the individual
if the board of trustees determines that the information is
relevant to the spouse's or former spouse's interest in member
accounts, benefits, or other amounts payable by the retirement
system; or
(D) a person authorized by the individual in
writing to receive the information; or
(2) the information is disclosed under an
authorization of the board of trustees that specifies the reason
for the disclosure.
SECTION 2.14. Section 2(9), Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is
repealed.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2013.