Texas 2013 - 83rd Regular

Texas Senate Bill SB220 Compare Versions

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1	1	By: Birdwell, et al. S.B. No. 220
2	2	(Anchia)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the abolition of the office of the fire fighters'
8	8	pension commissioner and the transfer and disposition of its
9	9	functions relating to the Texas Emergency Services Retirement
10	10	System and the Texas local firefighters retirement systems.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	ARTICLE 1. AMENDMENTS TO SUBTITLE H, TITLE 8, GOVERNMENT CODE
13	13	SECTION 1.01. Section 861.001, Government Code, is amended
14	14	by adding Subdivision (5-a) to read as follows:
15	15	(5-a) "Executive director" means the person appointed
16	16	executive director under Section 865.0095.
17	17	SECTION 1.02. Section 861.008, Government Code, is amended
18	18	to read as follows:
19	19	Sec. 861.008. IMMUNITY FROM LIABILITY. The state board,
20	20	executive director [commissioner], and employees of the pension
21	21	system are not liable for any action taken or omission made or
22	22	suffered by them in good faith in the performance of any duty or
23	23	prerogative in connection with the administration of the pension
24	24	system.
25	25	SECTION 1.03. Subsection (a), Section 862.001, Government
26	26	Code, is amended to read as follows:
27	27	(a) The governing body of a department that performs
28	28	emergency services may, in the manner provided for taking official
29	29	action by the body, elect to participate in the pension system. A
30	30	governing body shall notify the executive director [commissioner]
31	31	as soon as practicable of an election made under this subsection.
32	32	Except as provided by Subsection (b), an election to participate
33	33	under this subsection is irrevocable.
34	34	SECTION 1.04. Subsection (a), Section 862.0025, Government
35	35	Code, is amended to read as follows:
36	36	(a) Except as provided by Subsection (b), the governing body
37	37	of a participating department may make an election to include all
38	38	persons who provide support services for the department as members
39	39	of the pension system on the same terms as all other volunteers of
40	40	the department. An election under this section takes effect on the
41	41	first day of the calendar month that begins after the month in which
42	42	the election is made and communicated to the executive director
43	43	[commissioner]. Once made, an election under this section is
44	44	irrevocable.
45	45	SECTION 1.05. Subsections (a), (d), and (f), Section
46	46	864.005, Government Code, are amended to read as follows:
47	47	(a) A local board shall require a member who is receiving
48	48	temporary disability benefits to file a disability rating report
49	49	every three months from a physician chosen by the local board. If a
50	50	report indicates a significant improvement in condition, the local
51	51	board, after notice and a hearing, may adopt an order to terminate
52	52	payments. The local board shall send a copy of each order adopted
53	53	under this subsection to the executive director [commissioner].
54	54	(d) If the local board has reason to believe that a ground
55	55	for termination of temporary disability benefits exists, the local
56	56	board may set a date for a hearing on the matter. The local board,
57	57	after notice and a hearing, may adopt an order terminating
58	58	temporary disability benefits if the local board determines that a
59	59	ground for termination exists. The local board may not adopt an
60	60	order under this subsection on the basis of a physician's
61	61	previously submitted statement as to the likely duration of the
62	62	disability if the local board determines, after a hearing, that the
63	63	disability continues. The local board shall send a copy of each
64	64	order adopted under this subsection to the executive director
65	65	[commissioner].
66	66	(f) If the state board [commissioner] has reason to believe
67	67	that a ground for termination of a continuing disability retirement
68	68	annuity exists, the state board [commissioner] shall set a date for
69	69	a hearing on continuation or termination of the annuity. The state
70	70	board [commissioner], after notice and a hearing, shall adopt an
71	71	order terminating the continuing disability retirement annuity if
72	72	the state board [commissioner] determines that a ground for
73	73	termination exists.
74	74	SECTION 1.06. Subsection (a), Section 864.010, Government
75	75	Code, is amended to read as follows:
76	76	(a) The executive director [commissioner] shall continue to
77	77	administer benefits of the pension system for members and retirees
78	78	who perform service for a formerly participating department that
79	79	has withdrawn from participation in the pension system or has
80	80	ceased to exist.
81	81	SECTION 1.07. Subsections (a), (b), (c), (e), (f), and (g),
82	82	Section 864.016, Government Code, are amended to read as follows:
83	83	(a) A claim for disability retirement benefits or a lump-sum
84	84	death benefit must be filed with the local board. A claim for
85	85	service retirement benefits must be filed with the executive
86	86	director [commissioner], who shall forward the claim to the
87	87	appropriate local board for a hearing. A claim for a death benefit
88	88	annuity must be filed with the executive director. The executive
89	89	director [commissioner, who] shall make a determination of the
90	90	merits of the claim for a death benefit annuity and issue a decision
91	91	to the claimant. On receiving a claim under this section, the local
92	92	board shall hold a hearing to decide the claim. The local board
93	93	shall send a written copy of its decision to the claimant and the
94	94	executive director [commissioner]. If a local board does not
95	95	determine a claim for service retirement benefits and file its
96	96	determination with the executive director [commissioner] before
97	97	the 16th day after the date the local board receives the claim, the
98	98	executive director [commissioner] may determine the merits of the
99	99	claim.
100	100	(b) A person aggrieved by a decision of a local board
101	101	relating to eligibility for or the amount of benefits under this
102	102	subtitle may appeal the decision to the state board [commissioner].
103	103	(c) An appeal of a local board decision under this section
104	104	is begun by delivering a notice of appeal to the presiding officer
105	105	or secretary of the local board that made the decision. The notice
106	106	must be delivered not later than the 20th day after the date of the
107	107	decision and contain a brief description of the reasons for the
108	108	appeal. The aggrieved person must file a copy of the notice with
109	109	the state board [commissioner].
110	110	(e) After a hearing under Subsection (d), the state board
111	111	[commissioner] shall decide each appeal from a local board
112	112	decision, issue a written opinion, and notify the local board and
113	113	the claimant if the state board [commissioner] overrules the local
114	114	board's decision.
115	115	(f) [A person aggrieved by a decision of the commissioner
116	116	under this section may appeal the decision to the state board. The
117	117	state board shall decide each appeal based on the hearing record.
118	118	[(g)] A final decision of the state board under this section
119	119	is subject to judicial review under Chapter 2001. The standard of
120	120	review is by substantial evidence. Venue of the appeal is only in a
121	121	district court in Travis County [may not be appealed to a court or
122	122	be subject to any other legal process].
123	123	SECTION 1.08. Section 865.001, Government Code, is amended
124	124	by amending Subsection (b) and adding Subsection (c) to read as
125	125	follows:
126	126	(b) At least five [Six] trustees must be active members of
127	127	the pension system, one of whom must represent emergency medical
128	128	services personnel.
129	129	(c) One trustee may be a retiree of the pension system.
130	130	SECTION 1.09. Chapter 865, Government Code, is amended by
131	131	adding Section 865.0011 to read as follows:
132	132	Sec. 865.0011. SUNSET REVIEW. The state board of the
133	133	pension system is subject to review under Chapter 325 (Texas Sunset
134	134	Act) but is not abolished under that chapter. The state board shall
135	135	be reviewed during the period in which state agencies scheduled to
136	136	be abolished in 2025, and every 12th year after that year, are
137	137	reviewed.
138	138	SECTION 1.10. Section 865.002, Government Code, is amended
139	139	by adding Subsections (c), (d), and (e) to read as follows:
140	140	(c) A person may not be a trustee or an employee of the
141	141	pension system employed in a "bona fide executive, administrative,
142	142	or professional capacity," as that phrase is used for purposes of
143	143	establishing an exemption to the overtime provisions of the federal
144	144	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
145	145	if:
146	146	(1) the person is an officer, employee, or paid
147	147	consultant of a Texas trade association in the field of emergency
148	148	services, including firefighting, or public retirement systems; or
149	149	(2) the person's spouse is an officer, manager, or paid
150	150	consultant of a Texas trade association in the field of emergency
151	151	services, including firefighting, or public retirement systems.
152	152	(d) In this section, a Texas trade association means a
153	153	cooperative and voluntarily joined statewide association of
154	154	business or professional competitors in this state designed to
155	155	assist its members and its industry or profession in dealing with
156	156	mutual business or professional problems and in promoting their
157	157	common interest.
158	158	(e) A person may not serve as a trustee or act as the general
159	159	counsel to the state board or the pension system if the person is
160	160	required to register as a lobbyist under Chapter 305 because of the
161	161	person's activities for compensation on behalf of a business or an
162	162	association related to the operation of the state board.
163	163	SECTION 1.11. Chapter 865, Government Code, is amended by
164	164	adding Section 865.0035 to read as follows:
165	165	Sec. 865.0035. STATE BOARD MEMBER TRAINING. (a) A person
166	166	who is appointed to and qualifies for office as a member of the
167	167	state board may not vote, deliberate, or be counted as a member in
168	168	attendance at a meeting of the state board until the person
169	169	completes a training program that complies with this section.
170	170	(b) A training program must provide the person with
171	171	information regarding:
172	172	(1) this subtitle;
173	173	(2) the programs, functions, rules, and budget of the
174	174	pension system;
175	175	(3) the results of the most recent formal audit of the
176	176	system;
177	177	(4) the requirements of laws relating to open
178	178	meetings, public information, administrative procedure, and
179	179	conflicts of interest; and
180	180	(5) any applicable ethics policies adopted by the
181	181	system or the Texas Ethics Commission.
182	182	(c) A person appointed to the state board is entitled to
183	183	reimbursement, as provided by the General Appropriations Act, for
184	184	the travel expenses incurred in attending the training program
185	185	regardless of whether the attendance at the program occurs before
186	186	or after the person qualifies for office.
187	187	SECTION 1.12. Subsection (c), Section 865.005, Government
188	188	Code, is amended to read as follows:
189	189	(c) If the executive director [commissioner] has knowledge
190	190	that a potential ground for removal exists, the executive director
191	191	[commissioner] shall notify the presiding officer of the state
192	192	board of the ground. The presiding officer shall then notify the
193	193	governor that a potential ground for removal exists.
194	194	SECTION 1.13. Section 865.006, Government Code, is amended
195	195	by adding Subsection (c) to read as follows:
196	196	(c) The state board shall develop and implement policies
197	197	that:
198	198	(1) clearly separate the policy-making
199	199	responsibilities of the state board and the management
200	200	responsibilities of the executive director and the staff of the
201	201	pension system; and
202	202	(2) provide the public with a reasonable opportunity
203	203	to appear before the state board and to speak on any issue under the
204	204	jurisdiction of the state board.
205	205	SECTION 1.14. Chapter 865, Government Code, is amended by
206	206	adding Section 865.0061 to read as follows:
207	207	Sec. 865.0061. WRITTEN POLICY ON MANAGING AND ADMINISTERING
208	208	CONTRACTS. The state board shall adopt a written policy, including
209	209	procedures, to guide staff in managing and administering contracts
210	210	entered into by or on behalf of the pension system. The written
211	211	policy adopted under this section must, at a minimum:
212	212	(1) address how the pension system:
213	213	(A) plans for contracting needs and develops
214	214	solicitation documents;
215	215	(B) reviews, evaluates, and awards contract
216	216	proposals;
217	217	(C) manages and approves contract changes;
218	218	(D) identifies performance issues and resolves
219	219	contract disputes;
220	220	(E) monitors contract expenditures; and
221	221	(F) closes out contracts; and
222	222	(2) require the pension system to maintain a central
223	223	location for filing contracts and information related to contracts
224	224	entered into by or on behalf of the pension system.
225	225	SECTION 1.15. Subsection (c), Section 865.007, Government
226	226	Code, is amended to read as follows:
227	227	(c) The state board or the executive director
228	228	[commissioner] may accept on behalf of the pension system gifts of
229	229	money or other property from any public or private source.
230	230	SECTION 1.16. Chapter 865, Government Code, is amended by
231	231	adding Section 865.0095 to read as follows:
232	232	Sec. 865.0095. EXECUTIVE DIRECTOR. (a) The state board,
233	233	by a majority vote of all members, shall appoint a person other than
234	234	a member of the board to serve at the board's will as executive
235	235	director.
236	236	(b) To be eligible to serve as the executive director, a
237	237	person must:
238	238	(1) be a citizen of the United States; and
239	239	(2) have executive ability and experience necessary to
240	240	conduct the duties of executive director.
241	241	SECTION 1.17. Sections 865.010, 865.011, and 865.013,
242	242	Government Code, are amended to read as follows:
243	243	Sec. 865.010. EXECUTIVE DIRECTOR'S [COMMISSIONER'S]
244	244	DUTIES. (a) The executive director [commissioner] shall oversee
245	245	the distribution of all benefits.
246	246	(b) The executive director [commissioner] shall collect the
247	247	revenues for the fund from the governing bodies of participating
248	248	departments.
249	249	(c) The executive director [commissioner] may request and
250	250	administer state funds appropriated by the legislature in addition
251	251	to those required by this subtitle.
252	252	(d) The state board [commissioner] is responsible for
253	253	recovering any fraudulently acquired benefits. If it appears that
254	254	fraud has occurred, the state board [commissioner] shall notify the
255	255	appropriate local board and the claimant and hold a hearing. If
256	256	after the hearing the state board [commissioner] determines that
257	257	benefits have been or are being fraudulently acquired, the state
258	258	board [commissioner] shall seek action in a court.
259	259	Sec. 865.011. RECORDS AND REPORTS. (a) The executive
260	260	director [commissioner] may at any reasonable time examine the
261	261	records and accounts of local boards.
262	262	(b) The executive director [commissioner] shall require in
263	263	a timely manner periodic reports from the local boards and shall
264	264	prepare necessary forms for use by local boards.
265	265	(c) The executive director [commissioner] shall prepare an
266	266	annual report on the activity and status of the fund and submit the
267	267	report to the governor, the lieutenant governor, and the speaker of
268	268	the house of representatives.
269	269	(d) The state board shall electronically submit a report to
270	270	the governor, the lieutenant governor, the speaker of the house of
271	271	representatives, the Legislative Budget Board, and the State
272	272	Pension Review Board if:
273	273	(1) as a result of an event or action, there is a
274	274	significant change to the actuarial valuation of the pension
275	275	system's assets or liabilities, including the extent to which the
276	276	system's liabilities are unfunded;
277	277	(2) there is any change to the contributions made to or
278	278	benefits paid from the system; or
279	279	(3) an actuarial valuation must be corrected or
280	280	repeated because of the use of erroneous information or assumptions
281	281	used in the valuation.
282	282	(e) A report submitted under Subsection (d)(1) must include
283	283	and consider the effect alternative contributions and benefit
284	284	structures would have on the actuarial valuation of the system,
285	285	including changes in the state's contribution under Section
286	286	865.015, as well as state funding of administrative expenses.
287	287	(f) The state board shall determine the meaning of
288	288	"significant change" for purposes of Subsection (d)(1), which must
289	289	include circumstances in which there is an increase in the time
290	290	required to amortize the unfunded liabilities of the pension system
291	291	to a period that exceeds 30 years, assuming a maximum state
292	292	contribution under Section 865.015.
293	293	(g) A report required under Subsection (d) may be combined
294	294	with any other report required by this chapter or other law.
295	295	Sec. 865.013. MONITORING OF CONTRIBUTION SUBMISSION. A
296	296	local board shall monitor the timely submission of required
297	297	contributions to the executive director [commissioner].
298	298	SECTION 1.18. Subsection (c), Section 865.014, Government
299	299	Code, is amended to read as follows:
300	300	(c) Contributions required as provided by this section
301	301	shall be paid at the times and in the manner that the state board
302	302	prescribes by rule. Contributions required by this section shall
303	303	be submitted by electronic funds transfer unless the executive
304	304	director [commissioner] grants an exception based on the difficulty
305	305	of a participating department's use of that payment method.
306	306	Contributions that are not paid within the time required by the
307	307	state board accrue interest at the most recent assumed actuarial
308	308	rate of return on investments of the fund.
309	309	SECTION 1.19. Subsection (a), Section 865.017, Government
310	310	Code, is amended to read as follows:
311	311	(a) The pension system shall withhold payment of a monthly
312	312	retirement annuity if a participating department attempts to
313	313	provide information to the executive director [commissioner]
314	314	relating to continued eligibility to receive the payments and the
315	315	recipient fails to cooperate or provide the requested information.
316	316	The state board may adopt rules to enforce this subsection.
317	317	SECTION 1.20. Section 865.018, Government Code, is amended
318	318	by amending Subsection (b) and adding Subsections (c), (d), and (e)
319	319	to read as follows:
320	320	(b) The executive director [commissioner] and the state
321	321	board shall certify the actuarial and financial soundness of the
322	322	fund every two years with the assistance of a qualified actuary.
323	323	(c) An actuarial valuation conducted under this section
324	324	must include:
325	325	(1) an analysis clearly shown in the valuation based
326	326	on each of the following assumptions:
327	327	(A) no state contribution to the fund, including
328	328	no state funding of administrative expenses; and
329	329	(B) a maximum state contribution to the fund,
330	330	including state funding of administrative expenses; and
331	331	(2) the number of years required to amortize the
332	332	unfunded actuarial liabilities of the pension system under each
333	333	assumption under Subdivision (1).
334	334	(d) At least once every five years, the state board, with
335	335	the assistance of the actuary, shall:
336	336	(1) audit the actuarial valuation required under this
337	337	section; and
338	338	(2) conduct an actuarial experience study, the
339	339	contents of which are determined by the state board in consultation
340	340	with the actuary.
341	341	(e) The actuarial valuation and experience study required
342	342	under Subsection (d) are not required to be conducted concurrently.
343	343	SECTION 1.21. Subsections (a) and (c), Section 865.019,
344	344	Government Code, are amended to read as follows:
345	345	(a) Information contained in records that are in the custody
346	346	of the pension system concerning an individual member, annuitant,
347	347	or beneficiary is confidential under Section 552.101 and may not be
348	348	disclosed in a form identifiable with a specific individual unless:
349	349	(1) the information is disclosed to:
350	350	(A) the individual or the individual's attorney,
351	351	guardian, executor, administrator, conservator, or other person
352	352	who the executive director [commissioner] determines is acting in
353	353	the interest of the individual or the individual's estate;
354	354	(B) a spouse or former spouse of the individual
355	355	after the executive director [commissioner] determines that the
356	356	information is relevant to the spouse's or former spouse's interest
357	357	in member accounts, benefits, or other amounts payable by the
358	358	pension system;
359	359	(C) a governmental official or employee after the
360	360	executive director [commissioner] determines that disclosure of
361	361	the information requested is reasonably necessary to the
362	362	performance of the duties of the official or employee; or
363	363	(D) a person authorized by the individual in
364	364	writing to receive the information; or
365	365	(2) the information is disclosed under a subpoena and
366	366	the executive director [commissioner] determines that the
367	367	individual will have a reasonable opportunity to contest the
368	368	subpoena.
369	369	(c) The executive director [commissioner] may designate
370	370	other employees of the pension system to make the necessary
371	371	determinations under Subsection (a).
372	372	SECTION 1.22. Subsections (c) and (d), Section 865.020,
373	373	Government Code, are amended to read as follows:
374	374	(c) The medical board shall:
375	375	(1) investigate essential statements and certificates
376	376	made by or on behalf of a member of the pension system in connection
377	377	with an application for disability retirement or, as requested by
378	378	the executive director [commissioner], with an application for an
379	379	on-duty death benefit; and
380	380	(2) report in writing to the executive director
381	381	[commissioner] its conclusions and recommendations on all matters
382	382	referred to it.
383	383	(d) The medical board is not subject to subpoena regarding
384	384	findings it makes in assisting the executive director
385	385	[commissioner] under this section, and its members may not be held
386	386	liable for any opinions, conclusions, or recommendations made under
387	387	this section.
388	388	SECTION 1.23. Chapter 865, Government Code, is amended by
389	389	adding Section 865.021 to read as follows:
390	390	Sec. 865.021. COMPLAINT FILES. (a) The pension system
391	391	shall maintain a system to promptly and efficiently act on
392	392	complaints filed with the system. The system shall maintain
393	393	information about:
394	394	(1) parties to the complaint;
395	395	(2) the subject matter of the complaint;
396	396	(3) a summary of the results of the review or
397	397	investigation of the complaint; and
398	398	(4) the disposition of the complaint.
399	399	(b) The pension system shall make information available
400	400	describing its procedures for complaint investigation and
401	401	resolution.
402	402	(c) The pension system shall periodically notify the
403	403	complaint parties of the status of the complaint until final
404	404	disposition.
405	405	ARTICLE 2. AMENDMENTS TO CIVIL STATUTES
406	406	SECTION 2.01. The Texas Local Fire Fighters Retirement Act
407	407	(Article 6243e, Vernon's Texas Civil Statutes) is amended by adding
408	408	Section 18B to read as follows:
409	409	Sec. 18B. TECHNICAL ASSISTANCE, TRAINING, AND INFORMATION
410	410	FOR BOARDS OF TRUSTEES. (a) The State Pension Review Board shall
411	411	provide technical assistance, training, and information to members
412	412	of the boards of trustees established under this Act. The training
413	413	required by this section must be designed to meet the specific needs
414	414	of members of boards of trustees administering benefit plans for
415	415	local fire fighters, including small-to-medium-sized benefit
416	416	plans.
417	417	(b) To the extent resources are available, the board shall
418	418	designate one person who specializes in providing the technical
419	419	assistance, training, and information required under Subsection
420	420	(a).
421	421	SECTION 2.02. Sections 22 and 22A, Texas Local Fire
422	422	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
423	423	Statutes), are amended to read as follows:
424	424	Sec. 22. APPEALS FROM LOCAL BOARD DECISIONS. (a) A person
425	425	aggrieved by a decision of a board of trustees relating to
426	426	eligibility for or amount of benefits payable by a retirement
427	427	system may appeal the decision to the State Office of
428	428	Administrative Hearings [fire fighters' pension commissioner].
429	429	(b) An appeal under this section is begun by delivering a
430	430	notice of appeal with the chairman, secretary, or
431	431	secretary-treasurer of the board of trustees that made the
432	432	decision. The notice must be delivered not later than the 20th day
433	433	after the date of the decision and contain a brief description of
434	434	the reasons or grounds for appeal. The aggrieved person must file a
435	435	copy of the notice with the State Pension Review Board [fire
436	436	fighters' pension commissioner].
437	437	(b-1) As soon as practicable after receiving a notice of
438	438	appeal under Subsection (b) of this section, the State Pension
439	439	Review Board shall refer the matter to the State Office of
440	440	Administrative Hearings by submitting notice of the appeal to that
441	441	office.
442	442	(c) An appeal under this section [to the fire fighters'
443	443	pension commissioner] is held in Austin and is a contested case
444	444	under Chapter 2001, Government Code, [the Administrative Procedure
445	445	and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
446	446	Statutes)] conducted as a de novo hearing by the State Office of
447	447	Administrative Hearings.
448	448	(d) The sole function of the State Pension Review Board with
449	449	respect to an appeal under this section is to refer the appeal to
450	450	the State Office of Administrative Hearings, and that office has
451	451	exclusive authority to decide the appeal.
452	452	Sec. 22A. ATTORNEY. A board of trustees may employ an
453	453	attorney to represent the board in one or all legal matters,
454	454	including a hearing on appeal to the State Office of Administrative
455	455	Hearings [fire fighters' pension commissioner]. At the request of
456	456	a board of trustees, the city attorney of the municipality of which
457	457	the board is a part shall, without additional compensation,
458	458	represent the board in one or all legal matters.
459	459	SECTION 2.03. Subsection (d), Section 27, Texas Local Fire
460	460	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
461	461	Statutes), is amended to read as follows:
462	462	(d) A board of trustees established under this Act shall
463	463	adopt formal investment policies that emphasize safety and
464	464	diversity as well as liquidity for benefit payments. In developing
465	465	those policies, the board of trustees shall give special
466	466	consideration to the preferred investment practices of the
467	467	Government Financial Officers Association. [Not later than
468	468	December 31 of each year, the board of trustees shall submit to the
469	469	fire fighters' pension commissioner a copy of the investment
470	470	policies adopted by the board.]
471	471	SECTION 2.04. Subsection (h), Section 28, Texas Local Fire
472	472	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
473	473	Statutes), is amended to read as follows:
474	474	(h) A retirement system established under this Act is exempt
475	475	from Subchapter C, Chapter 802, Government Code, except Sections
476	476	802.202, 802.205, and 802.207.
477	477	SECTION 2.05. Subsections (b) and (c), Section 30, Texas
478	478	Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas
479	479	Civil Statutes), are amended to read as follows:
480	480	(b) Contributions picked up as provided by this section
481	481	shall be treated as employer contributions in determining tax
482	482	treatment of the amounts under the Internal Revenue Code of 1986.
483	483	Each municipality or other political subdivision picking up
484	484	contributions shall continue, however, to compute federal income
485	485	tax withholding as if these contributions were employee wages until
486	486	the first payroll period that begins after the date the [fire
487	487	fighters' pension commissioner files with the secretary of state a
488	488	notice stating that the] United States Internal Revenue Service
489	489	determines [has determined] or a federal court rules [has ruled]
490	490	that under Section 414(h), Internal Revenue Code of 1986 (26 U.S.C.
491	491	Section 414(h)), the contributions are not includable in the gross
492	492	income of a member until they are distributed or made available.
493	493	Employee contributions picked up as provided by this section shall
494	494	be deposited to the credit of the individual account of each
495	495	affected member and shall be treated for all other purposes of this
496	496	Act as if the contributions had been deducted from the compensation
497	497	of members. Picked up contributions are not includable in a
498	498	computation of contribution rates of the municipality or other
499	499	political subdivision.
500	500	(c) A pick up of employee contributions takes effect in a
501	501	municipality or other political subdivision on January 1 of the
502	502	year following the year in which:
503	503	(1) the governing body of the municipality or other
504	504	political subdivision by ordinance has adopted the pick up;
505	505	(2) the pick up has been approved by majority vote of
506	506	the participating members of the retirement system at an election
507	507	by secret ballot at which at least 50 percent of the participating
508	508	members vote; and
509	509	(3) the [fire fighters' pension commissioner has filed
510	510	with the secretary of state a notice stating that the] United States
511	511	Internal Revenue Service issues [has issued] a determination that
512	512	the plan covering employees of the municipality or other political
513	513	subdivision is a qualified retirement plan under Section 401(a),
514	514	Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)), and that
515	515	its related trust is tax exempt under Section 501(a) of that code
516	516	(26 U.S.C. Section 501(a)).
517	517	ARTICLE 3. CONFORMING CHANGES TO OTHER LAW
518	518	SECTION 3.01. (a) Sections 54.353 and 54.3531, Education
519	519	Code, which were added by Section 17, Chapter 359 (S.B. 32), Acts of
520	520	the 82nd Legislature, Regular Session, 2011, as a nonsubstantive
521	521	redesignation of the two versions of Section 54.208, Education
522	522	Code, as amended by Chapters 1285 (H.B. 2013) and 1299 (H.B. 2347),
523	523	Acts of the 81st Legislature, Regular Session, 2009, are reenacted
524	524	to conform to the reenactment of Section 54.208, Education Code,
525	525	and the addition of Section 54.2081, Education Code, by Chapter 959
526	526	(H.B. 1163), Acts of the 82nd Legislature, Regular Session, 2011,
527	527	and Section 54.353, Education Code, is amended to read as follows:
528	528	Sec. 54.353. FIREFIGHTERS ENROLLED IN FIRE SCIENCE COURSES.
529	529	(a) The governing board of an institution of higher education
530	530	shall exempt from the payment of tuition and laboratory fees any
531	531	student enrolled in one or more courses offered as part of a fire
532	532	science curriculum who:
533	533	(1) is employed as a firefighter by a political
534	534	subdivision of this state; or
535	535	(2) is currently, and has been for at least one year,
536	536	an active member of an organized volunteer fire department
537	537	participating in the Texas Emergency Services Retirement System or
538	538	a retirement system established under the Texas Local Fire Fighters
539	539	Retirement Act (Article 6243e, Vernon's Texas Civil Statutes) and
540	540	[in this state, as defined by the fire fighters' pension
541	541	commissioner,] who holds:
542	542	(A) an Accredited Advanced level of
543	543	certification, or an equivalent successor certification, under the
544	544	State Firemen's and Fire Marshals' Association of Texas volunteer
545	545	certification program; or
546	546	(B) Phase V (Firefighter II) certification, or an
547	547	equivalent successor certification, under the Texas Commission on
548	548	Fire Protection's voluntary certification program under Section
549	549	419.071, Government Code.
550	550	(b) An exemption provided under this section does not apply
551	551	to deposits that may be required in the nature of security for the
552	552	return or proper care of property loaned for the use of students.
553	553	(c) Notwithstanding Subsection (a), a student who for a
554	554	semester or term at an institution of higher education receives an
555	555	exemption under this section may continue to receive the exemption
556	556	for a subsequent semester or term at any institution only if the
557	557	student makes satisfactory academic progress toward a degree or
558	558	certificate at that institution as determined by the institution
559	559	for purposes of financial aid.
560	560	(d) Notwithstanding Subsection (a), the exemption provided
561	561	under this section does not apply to any amount of additional
562	562	tuition the institution elects to charge a resident undergraduate
563	563	student under Section 54.014(a) or (f).
564	564	(e) Notwithstanding Subsection (a), the exemption provided
565	565	under this section does not apply to any amount of tuition the
566	566	institution charges a graduate student in excess of the amount of
567	567	tuition charged to similarly situated graduate students because the
568	568	student has a number of semester credit hours of doctoral work in
569	569	excess of the applicable number provided by Section 61.059(l)(1) or
570	570	(2).
571	571	(f) The Texas Higher Education Coordinating Board shall
572	572	adopt:
573	573	(1) rules governing the granting or denial of an
574	574	exemption under this section, including rules relating to the
575	575	determination of a student's eligibility for an exemption; and
576	576	(2) a uniform listing of degree programs covered by
577	577	the exemption under this section.
578	578	Sec. 54.3531. PEACE OFFICERS ENROLLED IN CERTAIN COURSES.
579	579	(a) The governing board of an institution of higher education
580	580	shall exempt from the payment of tuition and laboratory fees
581	581	charged by the institution for a criminal justice or law
582	582	enforcement course or courses an undergraduate student who:
583	583	(1) is employed as a peace officer by this state or by
584	584	a political subdivision of this state;
585	585	(2) is enrolled in a criminal justice or law
586	586	enforcement-related degree program at the institution;
587	587	(3) is making satisfactory academic progress toward
588	588	the student's degree as determined by the institution; and
589	589	(4) applies for the exemption at least one week before
590	590	the last date of the institution's regular registration period for
591	591	the applicable semester or other term.
592	592	(b) Notwithstanding Subsection (a), a student may not
593	593	receive an exemption under this section for any course if the
594	594	student has previously attempted a number of semester credit hours
595	595	for courses taken at any institution of higher education while
596	596	classified as a resident student for tuition purposes in excess of
597	597	the maximum number of those hours specified by Section 61.0595(a)
598	598	as eligible for funding under the formulas established under
599	599	Section 61.059.
600	600	(c) Notwithstanding Subsection (a), the governing board of
601	601	an institution of higher education may not provide exemptions under
602	602	this section to students enrolled in a specific class in a number
603	603	that exceeds 20 percent of the maximum student enrollment
604	604	designated by the institution for that class.
605	605	(d) An exemption provided under this section does not apply
606	606	to deposits that may be required in the nature of security for the
607	607	return or proper care of property loaned for the use of students.
608	608	(e) The Texas Higher Education Coordinating Board shall
609	609	adopt:
610	610	(1) rules governing the granting or denial of an
611	611	exemption under this section, including rules relating to the
612	612	determination of a student's eligibility for an exemption; and
613	613	(2) a uniform listing of degree programs covered by
614	614	the exemption under this section.
615	615	(f) If the legislature does not specifically appropriate
616	616	funds to an institution of higher education in an amount sufficient
617	617	to pay the institution's costs in complying with this section for a
618	618	semester, the governing board of the institution of higher
619	619	education shall report to the Senate Finance Committee and the
620	620	House Appropriations Committee the cost to the institution of
621	621	complying with this section for that semester.
622	622	(b) Sections 54.208 and 54.2081, Education Code, are
623	623	repealed.
624	624	SECTION 3.02. Subsection (b), Section 572.003, Government
625	625	Code, is amended to read as follows:
626	626	(b) The term means:
627	627	(1) the Banking Commissioner of The Banking Department
628	628	of Texas;
629	629	(2) [the fire fighters' pension commissioner;
630	630	[(3)] the administrative director of the Office of
631	631	Court Administration of the Texas Judicial System;
632	632	(3) [(4)] the chief executive of the Office of Public
633	633	Utility Counsel;
634	634	(4) [(5)] the executive director of the State Bar of
635	635	Texas;
636	636	(5) [(6)] the director of the lottery division of the
637	637	Texas Lottery Commission;
638	638	(6) [(7)] the deputy in charge of the department of
639	639	security in the lottery division of the Texas Lottery Commission;
640	640	(7) [(8)] the director of the bingo division of the
641	641	Texas Lottery Commission; or
642	642	(8) [(9)] the secretary of state.
643	643	SECTION 3.03. Subdivision (3), Section 614.152, Government
644	644	Code, is amended to read as follows:
645	645	(3) "State fire agency" means the:
646	646	(A) Office [firefighters' pension commissioner;
647	647	[(B) Texas Department] of Rural Affairs
648	648	established in the Department of Agriculture;
649	649	(B) [(C)] service;
650	650	(C) [(D)] Texas Commission on Fire Protection;
651	651	(D) [(E)] Texas A&M Engineering Extension
652	652	Service [of The Texas A&M University System]; and
653	653	(E) [(F)] Texas State Fire Marshal's Office of
654	654	the Texas Department of Insurance.
655	655	SECTION 3.04. Section 2155.148, Government Code, is amended
656	656	to read as follows:
657	657	Sec. 2155.148. CERTAIN PURCHASES FOR TEXAS [STATEWIDE]
658	658	EMERGENCY SERVICES [PERSONNEL] RETIREMENT SYSTEM [FUND]. (a) The
659	659	Texas Emergency Services Retirement System [fire fighters' pension
660	660	commissioner] is delegated all purchasing functions relating to the
661	661	purchase of goods or services from funds other than general revenue
662	662	funds for a purpose the state board of trustees of the Texas
663	663	Emergency Services Retirement System [statewide emergency services
664	664	personnel retirement fund] determines relates to the fiduciary
665	665	duties of the retirement system [fund].
666	666	(b) The Texas Emergency Services Retirement System [fire
667	667	fighters' pension commissioner] shall acquire goods or services by
668	668	any procurement method approved by the state board of trustees of
669	669	the Texas Emergency Services Retirement System [statewide
670	670	emergency services personnel retirement fund] that provides the
671	671	best value to the retirement system [fund]. The retirement system
672	672	[fire fighters' pension commissioner] shall consider the best value
673	673	standards provided by Section 2155.074.
674	674	(c) The commission shall procure goods or services for the
675	675	Texas Emergency Services Retirement System [fire fighters' pension
676	676	commissioner] at the request of the retirement system [pension
677	677	commissioner], and the retirement system [pension commissioner]
678	678	may use the services of the commission in procuring goods or
679	679	services.
680	680	ARTICLE 4. REPEALER
681	681	SECTION 4.01. The following statutes are repealed:
682	682	(1) Subsection (c), Section 802.103, Government Code;
683	683	(2) Subdivision (3), Section 861.001, Government
684	684	Code;
685	685	(3) Subsection (g), Section 18, Texas Local Fire
686	686	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
687	687	Statutes);
688	688	(4) Section 18A, Texas Local Fire Fighters Retirement
689	689	Act (Article 6243e, Vernon's Texas Civil Statutes);
690	690	(5) Section 21, Texas Local Fire Fighters Retirement
691	691	Act (Article 6243e, Vernon's Texas Civil Statutes);
692	692	(6) Section 21A, Texas Local Fire Fighters Retirement
693	693	Act (Article 6243e, Vernon's Texas Civil Statutes); and
694	694	(7) Subsection (c), Section 31, Texas Local Fire
695	695	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
696	696	Statutes).
697	697	ARTICLE 5. TRANSITION
698	698	SECTION 5.01. (a) Not later than September 1, 2013, the
699	699	state board of trustees of the Texas Emergency Services Retirement
700	700	System shall appoint an executive director under Section 865.0095,
701	701	Government Code, as added by this Act.
702	702	(b) Effective September 1, 2013:
703	703	(1) the office of the fire fighters' pension
704	704	commissioner is abolished and the term of the person holding that
705	705	position expires; and
706	706	(2) all powers, duties, obligations, and rights of
707	707	action of the fire fighters' pension commissioner under:
708	708	(A) Subtitle H, Title 8, Government Code, as
709	709	provided by Article 1 of this Act, are transferred to the:
710	710	(i) executive director of the Texas
711	711	Emergency Services Retirement System appointed under Section
712	712	865.0095, Government Code, as added by this Act; or
713	713	(ii) state board of trustees of the Texas
714	714	Emergency Services Retirement System established under Section
715	715	865.001, Government Code; and
716	716	(B) Section 2155.148, Government Code, are
717	717	transferred to the Texas Emergency Services Retirement System.
718	718	(c) In connection with the transfers required by Subsection
719	719	(b) of this section, the furniture, computers, other property and
720	720	equipment, files, and related materials used by the fire fighters'
721	721	pension commissioner are transferred to the executive director of
722	722	the Texas Emergency Services Retirement System.
723	723	(d) A rule adopted by or on behalf of the fire fighters'
724	724	pension commissioner in connection with or relating to Subtitle H,
725	725	Title 8, Government Code, in effect on September 1, 2013, continues
726	726	in effect until it is amended or repealed by the state board of
727	727	trustees of the Texas Emergency Services Retirement System.
728	728	(e) The unobligated and unexpended balance of any
729	729	appropriation made to the fire fighters' pension commissioner in
730	730	connection with or relating to Subtitle H, Title 8, Government
731	731	Code, for the state fiscal biennium ending August 31, 2013, is
732	732	transferred and reappropriated to the state board of trustees of
733	733	the Texas Emergency Services Retirement System for the purpose of
734	734	implementing the powers, duties, obligations, and rights of action
735	735	transferred to that system under Subsection (b) of this section.
736	736	(f) Notwithstanding the amendment by this Act of Subsection
737	737	(b), Section 572.003, Government Code, Subsection (d), Section
738	738	572.003, Government Code, does not apply to the abolition of the
739	739	office of the fire fighters' pension commissioner by this Act.
740	740	(g) Subsection (f), Section 864.016, Government Code, as
741	741	amended by this Act, applies to a final decision of the state board
742	742	of trustees of the Texas Emergency Services Retirement System that
743	743	is rendered on or after the effective date of this Act. A decision
744	744	of the state board rendered before the effective date of this Act is
745	745	governed by the law in effect on the date the decision was rendered,
746	746	and the former law is continued in effect for that purpose.
747	747	SECTION 5.02. The change in law made by this Act to Section
748	748	865.002, Government Code, regarding prohibitions on members of the
749	749	state board of trustees of the Texas Emergency Services Retirement
750	750	System does not affect the entitlement of a member serving on the
751	751	board immediately before September 1, 2013, to continue to serve
752	752	and function as a member of the board for the remainder of the
753	753	member's term. The change in law made to that section applies only
754	754	to a member appointed on or after September 1, 2013.
755	755	SECTION 5.03. (a) Effective September 1, 2013, all powers,
756	756	duties, obligations, and rights of action of the fire fighters'
757	757	pension commissioner under the Texas Local Fire Fighters Retirement
758	758	Act (Article 6243e, Vernon's Texas Civil Statutes) are, except as
759	759	provided by Subsection (e) of this section, terminated as provided
760	760	by Article 2 of this Act.
761	761	(b) In connection with the requirements of Subsection (a) of
762	762	this section, property and records other than those described by
763	763	Subsection (c), Section 5.01 of this article are transferred to the
764	764	comptroller of public accounts in accordance with Subsection (e),
765	765	Section 325.017, Government Code.
766	766	(c) A rule adopted by the fire fighters' pension
767	767	commissioner in connection with or relating to the Texas Local Fire
768	768	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
769	769	Statutes) expires on September 1, 2013.
770	770	(d) Effective September 1, 2013, the unobligated and
771	771	unexpended balance of any appropriations made to the fire fighters'
772	772	pension commissioner in connection with or relating to the Texas
773	773	Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas
774	774	Civil Statutes), for the state fiscal biennium ending August 31,
775	775	2013, is transferred to the general revenue fund in accordance with
776	776	Subsection (c), Section 325.017, Government Code.
777	777	(e) Any administrative hearing on appeal to the fire
778	778	fighters' pension commissioner under Section 22, Texas Local Fire
779	779	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
780	780	Statutes), is transferred without change in status to the State
781	781	Office of Administrative Hearings.
782	782	SECTION 5.04. The attorney general shall continue any
783	783	proceeding involving the office of the fire fighters' pension
784	784	commissioner that is pending on the effective date of this Act in
785	785	accordance with the law in effect on the date the proceeding was
786	786	commenced, and the former law is continued in effect for that
787	787	purpose.
788	788	SECTION 5.05. Except as provided by Subsection (e), Section
789	789	5.03 of this Act, the changes in law made by this Act apply only to a
790	790	proceeding involving an appeal under Section 864.016, Government
791	791	Code, as amended by this Act, or Section 22, Texas Local Fire
792	792	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
793	793	Statutes), as amended by this Act, that is commenced on or after the
794	794	effective date of this Act. A proceeding involving an appeal
795	795	commenced before the effective date of this Act is governed by the
796	796	law as it existed immediately before the effective date of this Act,
797	797	and that law is continued in effect for that purpose.
798	798	SECTION 5.06. Sections 325.017 and 325.020, Government
799	799	Code, apply in relation to the abolition of the office of the fire
800	800	fighters' pension commissioner. In the event of a conflict between
801	801	those sections and a provision of this Act, this Act prevails.
802	802	SECTION 5.07. If the transfers required under Sections 5.01
803	803	and 5.03 of this article are not completed by September 1, 2013, the
804	804	governor shall appoint a person to complete the transfers.
805	805	SECTION 5.08. To the extent of any conflict, this Act
806	806	prevails over another Act of the 83rd Legislature, Regular Session,
807	807	2013, relating to nonsubstantive additions to and corrections in
808	808	enacted codes.
809	809	ARTICLE 6. EFFECTIVE DATE
810	810	SECTION 6.01. This Act takes effect immediately if it
811	811	receives a vote of two-thirds of all the members elected to each
812	812	house, as provided by Section 39, Article III, Texas Constitution.
813	813	If this Act does not receive the vote necessary for immediate
814	814	effect, this Act takes effect September 1, 2013.