Texas 2019 - 86th Regular

Texas House Bill HB3247 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3247
	1	+	By: Martinez, et al. (Senate Sponsor - Alvarado) H.B. No. 3247
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 7, 2019, read first time and referred to Committee on State
	4	+	Affairs; May 19, 2019, reported favorably by the following vote:
	5	+	Yeas 8, Nays 0; May 19, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the Texas Emergency Services Retirement System.
6	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	13		SECTION 1. Section 861.001, Government Code, is amended by
8	14		amending Subdivisions (4), (5), (8), (10), and (11-a) and adding
9	15		Subdivisions (6-a), (6-b), (8-a), (8-b), and (10-a) to read as
10	16		follows:
11	17		(4) "Dependent" means an unmarried child, natural or
12	18		adopted, who:
13	19		(A) is less than 18 years of age;
14	20		(B) is less than 19 years of age and a full-time
15	21		student at an elementary or secondary school; or
16	22		(C) became permanently disabled before the
17	23		child's 22nd birthday, as determined by the executive director [and
18	24		remains disabled].
19	25		(5) "Emergency services" means only those services
20	26		relating to fire, rescue, [and] emergency medical services, and
21	27		emergency response services [including support services for those
22	28		duties, performed by a volunteer or auxiliary employee of a
23	29		participating department].
24	30		(6-a) "Governing body of a department" or "governing
25	31		body of a participating department" means:
26	32		(A) the board of trustees or other governing body
27	33		of the department; or
28	34		(B) if the department does not have a governing
29	35		body, the governing body of the political subdivision.
30	36		(6-b) "Governing body of a political subdivision"
31	37		means the governing body of the political subdivision or unit of
32	38		government of which the department is a part.
33	39		(8) "Member" means a person having membership
34	40		[volunteer or auxiliary employee who participates] in the pension
35	41		system under Section 862.002.
36	42		(8-a) "Participating department" means a department
37	43		that elects to participate in the pension system under Section
38	44		862.001.
39	45		(8-b) "Participating department head" means the
40	46		person designated as a participating department head under Section
41	47		865.0115.
42	48		(10) "Qualified service" means service performed:
43	49		(A) for a participating department that [is
44	50		recognized as an emergency services department by its governing
45	51		body and that] conducts at least 48 hours of training in a calendar
46	52		year; and
47	53		(B) [that is performed] by a member in good
48	54		standing in the department who:
49	55		(i) attends at least 20 hours of annual
50	56		training and at least 25 percent of the department's emergencies in
51	57		a calendar year;
52	58		(ii) attends at least 20 hours of annual
53	59		training and provides support services for at least 25 percent of
54	60		the department's emergencies in a calendar year; or
55	61		(iii) does not attend because the member is
56	62		absent because of military duty.
57	63		(10-a) "Retiree" means a person who receives a service
58	64		or disability retirement benefit from the pension system.
59	65		(11-a) "Support services" means services that
60	66		directly assist in the delivery of emergency services. The term
61	67		includes:
62	68		(A) directing traffic at an emergency scene;
63	69		(B) [,] dispatching emergency services
64	70		personnel;
65	71		(C) [,] driving an emergency services vehicle;
66	72		(D) [,] supplying or maintaining equipment at an
67	73		emergency scene;
68	74		(E) [,] providing essential recordkeeping for a
69	75		participating department;[,] and
70	76		(F) other similar services as determined by a
71	77		participating department.
72	78		SECTION 2. Section 861.008, Government Code, is amended to
73	79		read as follows:
74	80		Sec. 861.008. IMMUNITY FROM LIABILITY. The state board,
75	81		the executive director, a local board, each participating
76	82		department head, and employees of the pension system are not liable
77	83		for any action taken or omission made or suffered by them in good
78	84		faith in the performance of any duty or prerogative in connection
79	85		with the administration of the pension system.
80	86		SECTION 3. Section 862.001, Government Code, is amended to
81	87		read as follows:
82	88		Sec. 862.001. PARTICIPATION BY DEPARTMENT. (a) For
83	89		purposes of this section, "department" means a department or other
84	90		organization that:
85	91		(1) performs emergency services, including a
86	92		volunteer fire department, as defined by Section 614.101; and
87	93		(2) is not a for-profit entity.
88	94		(a-1) The governing body of a department [that performs
89	95		emergency services] may, in the manner provided for taking official
90	96		action by the body, elect to participate in the pension system. The
91	97		[A] governing body of a department shall notify the executive
92	98		director as soon as practicable of an election made under this
93	99		subsection. Except as provided by Subsection (b), an election to
94	100		participate under this subsection is irrevocable.
95	101		(b) The state board may adopt rules that allow the governing
96	102		body of a participating department to revoke its [that makes an]
97	103		election to participate in the pension system under Subsection
98	104		(a-1) in a manner that maintains an actuarially sound [(a) may
99	105		terminate participation in the] pension system [not later than the
100	106		fifth anniversary of the date of the election to participate,
101	107		except that a department that begins participation after September
102	108		1, 2005, may not terminate that participation].
103	109		SECTION 4. Section 862.002, Government Code, is amended to
104	110		read as follows:
105	111		Sec. 862.002. MEMBERSHIP BY INDIVIDUAL. (a) Except as
106	112		otherwise provided by this section and Section 862.0021, each
107	113		person who performs emergency services or, subject to Section
108	114		862.0025, support services [service] as a volunteer or [auxiliary]
109	115		employee of a participating department, regardless of whether the
110	116		person receives compensation from the participating department for
111	117		the services, is a member of the pension system.
112	118		(b) A person is not a member of the pension system if the
113	119		person:
114	120		(1) is less than 18 years of age;
115	121		(2) is subject to [in] a waiting [probationary] period
116	122		under Section 862.0021 [of service before becoming a regular member
117	123		of a participating department] for which the governing body of the
118	124		political subdivision [department] is not making contributions
119	125		during the waiting period [for the service];
120	126		(3) does not receive a certification of physical
121	127		fitness or assignment to perform support services under Section
122	128		862.003; or
123	129		(4) is a retiree [retired under this subtitle],
124	130		regardless of whether the person continues to perform emergency or
125	131		support services [participate in emergency service-related
126	132		functions] for a department [from which the person retired].
127	133		SECTION 5. Section 862.0021, Government Code, is amended to
128	134		read as follows:
129	135		Sec. 862.0021. WAITING [PROBATIONARY] PERIOD BEFORE
130	136		MEMBERSHIP. (a) A participating department may impose a waiting
131	137		[probationary] period for a person who is eligible to perform or who
132	138		is training to perform emergency services or, subject to Section
133	139		862.0025, support services as a volunteer or [auxiliary] employee
134	140		of the department during which time the department is not required
135	141		to enroll the person as a member of the pension system.
136	142		(b) A waiting [probationary] period imposed under this
137	143		section must end not later than six months after the date the person
138	144		begins service or training with the participating department.
139	145		(c) The governing body of a political subdivision may, but
140	146		[participating department] is not required to, pay contributions
141	147		for the person during the waiting [probationary] period.
142	148		(d) A person's membership in the pension system begins on
143	149		the date that the governing body of a political subdivision
144	150		[department] begins payment of contributions for that person,
145	151		without regard to whether the:
146	152		(1) person's membership in the pension system
147	153		[service] is subject to a waiting [probationary] period under this
148	154		section; or
149	155		(2) person is subject to a probationary period imposed
150	156		by a participating department for other purposes.
151	157		SECTION 6. Sections 862.0025(a) and (c), Government Code,
152	158		are amended to read as follows:
153	159		(a) Except as provided by Subsection (b), the governing body
154	160		of a participating department may, at any time, make an election to
155	161		include all persons who provide support services for the department
156	162		as members of the pension system [on the same terms as all other
157	163		volunteers of the department]. An election under this section
158	164		takes effect on the first day of the calendar month that begins
159	165		after the month in which the election is made and communicated to
160	166		the executive director. Once made, an election under this section
161	167		is irrevocable.
162	168		(c) After an election under this section, a participating
163	169		department that previously did not enroll its support staff as
164	170		members of the pension system may purchase service credit for
165	171		service performed before the date of the election under the terms
166	172		required for prior service credit for service before departmental
167	173		participation under Section 863.004.
168	174		SECTION 7. Section 862.003, Government Code, is amended to
169	175		read as follows:
170	176		Sec. 862.003. CERTIFICATION OF PHYSICAL FITNESS. (a) A
171	177		person who performs emergency services for a participating
172	178		department [prospective member] shall present to the participating
173	179		department [local] head [of the department, for delivery to the
174	180		local board,] a certification of physical fitness by a qualified
175	181		physician. [The person becomes a member of the pension system if
176	182		the local board accepts the certification or if the local board
177	183		assigns the person to perform support services and enrolls its
178	184		support staff as members of the system.]
179	185		(b) If a participating department provides membership to a
180	186		person who performs support services under Section 862.0025, the
181	187		participating department head [A local board] shall assign a person
182	188		to perform support services if the person:
183	189		(1) does not present an acceptable certification under
184	190		Subsection (a); or
185	191		(2) will only perform support services for the
186	192		department [and the person is at least 18 years of age, is not
187	193		retired from the pension system, and is not serving a probationary
188	194		period before becoming a regular member of a participating
189	195		department].
190	196		SECTION 8. Section 863.003, Government Code, is amended to
191	197		read as follows:
192	198		Sec. 863.003. RECOGNITION [TRANSFER] OF PRIOR SERVICE
193	199		CREDIT. A member who terminates service, except by service
194	200		retirement under Chapter 864, and later resumes service with the
195	201		same participating department or begins service with another
196	202		participating department may receive service credit for [transfer]
197	203		all previously accrued service credit in the pension system earned
198	204		for service with any participating [to the new] department.
199	205		SECTION 9. Chapter 863, Government Code, is amended by
200	206		adding Section 863.0045 to read as follows:
201	207		Sec. 863.0045. SERVICE CREDIT AND MEMBERSHIP IN MULTIPLE
202	208		PUBLIC RETIREMENT SYSTEMS. In accordance with Section 67(a)(2),
203	209		Article XVI, Texas Constitution, a person may not earn service
204	210		credit for the same service with the pension system and another
205	211		public retirement system.
206	212		SECTION 10. Section 863.005, Government Code, is amended to
207	213		read as follows:
208	214		Sec. 863.005. CHARGE FOR CERTAIN PAST DUE CONTRIBUTIONS.
209	215		The state board by rule may impose an interest charge on
210	216		contributions due because of a correction of an error [by a local
211	217		board] related to enrollment or qualified service. The charge must
212	218		be based on the pension system's current assumed rate of return.
213	219		Charges collected shall be deposited in the fund.
214	220		SECTION 11. Section 864.001(b), Government Code, is amended
215	221		to read as follows:
216	222		(b) The state board may change the benefit formula for any
217	223		person who is not a retiree [an annuitant] of the pension system.
218	224		SECTION 12. Section 864.002(a), Government Code, is amended
219	225		to read as follows:
220	226		(a) A service retirement annuity is payable in monthly
221	227		installments based on:
222	228		(1) the [governing body's] average monthly
223	229		contribution during the member's term of qualified service with all
224	230		participating departments under this subtitle, not including a
225	231		contribution to reduce the unfunded accrued actuarial liability of
226	232		the pension system; and
227	233		(2) a formula adopted by the state board by rule that
228	234		allows the pension system, assuming maximum state contributions are
229	235		provided under Section 865.015, to be maintained as actuarially
230	236		sound.
231	237		SECTION 13. Section 864.004, Government Code, is amended to
232	238		read as follows:
233	239		Sec. 864.004. TEMPORARY DISABILITY RETIREMENT BENEFITS.
234	240		(a) A member is entitled to disability retirement benefits from the
235	241		pension system only if a local board determines that the member
236	242		became disabled during the performance of emergency services or
237	243		support services [service duties] and is unable to return to work at
238	244		the member's regular occupation or, if the member is a student, is
239	245		unable to return to the member's scholastic studies. A disabled
240	246		member must, at the time of disability, elect between a service
241	247		retirement annuity or disability retirement benefits, if eligible
242	248		for both.
243	249		(b) Subject to Subsection (c), a [A disabled] member
244	250		described by Subsection (a) who does not elect to receive a service
245	251		retirement annuity is entitled to a temporary disability retirement
246	252		benefit [benefits] of:
247	253		(1) $300 per [a] month; or
248	254		(2) a greater amount that the state board by rule
249	255		adopts based on the monthly contributions made for the members by
250	256		the governing body of the political subdivision [of a participating
251	257		department for its members].
252	258		(c) Except as provided by Section 864.005, a temporary [To
253	259		continue to receive] disability retirement benefit under [benefits
254	260		in the form of a continuing annuity, computed in the manner
255	261		described by] Subsection (b) must cease on the expiration of a
256	262		period, not to exceed one year, determined to be the likely duration
257	263		of the disability by a physician in a written statement to the local
258	264		board. The local board shall select the physician making a
259	265		determination under this subsection[, a person who is determined by
260	266		a local board to be temporarily disabled must:
261	267		[(1) apply to the medical board appointed by the state
262	268		board; and
263	269		[(2) not later than the first anniversary of the date
264	270		the person was determined to be temporarily disabled, be certified
265	271		by the medical board as permanently disabled for the performance of
266	272		the duties of the person's regular occupation].
267	273		SECTION 14. Sections 864.005(a), (b), (d), and (h),
268	274		Government Code, are amended to read as follows:
269	275		(a) A local board may [shall] require a member who is
270	276		receiving a temporary disability retirement benefit [benefits] to
271	277		file a disability rating report every three months from a physician
272	278		chosen by the local board. If a report indicates a significant
273	279		improvement in condition, the local board, after notice and a
274	280		hearing, may adopt an order to terminate temporary disability
275	281		retirement benefit payments. The local board shall send a copy of
276	282		each order adopted under this subsection to the executive director.
277	283		(b) Temporary disability benefits cease if:
278	284		(1) the recipient returns to work at the person's
279	285		regular occupation, resumes scholastic studies, or performs
280	286		emergency services or support services [service duties] for any
281	287		participating department or other entity; or
282	288		(2) [agency, or if] the local board adopts an order
283	289		under Subsection (d).
284	290		(d) If the local board has reason to believe that a ground
285	291		for termination of temporary disability retirement benefits
286	292		exists, the local board may set a date for a hearing on the matter.
287	293		The local board, after notice and a hearing, may adopt an order
288	294		terminating temporary disability retirement benefits if the local
289	295		board determines that a ground for termination exists. The local
290	296		board may not adopt an order under this subsection on the basis of a
291	297		physician's previously submitted statement as to the likely
292	298		duration of the disability if the local board determines, after a
293	299		hearing, that the disability continues. The local board shall send
294	300		a copy of each order adopted under this subsection to the executive
295	301		director.
296	302		(h) A [The state board or a] local board may require
297	303		financial information from a person as a condition to the continued
298	304		receipt of temporary disability retirement benefits, including
299	305		federal income tax returns and wage earning forms. Failure to
300	306		timely provide requested information is a ground for terminating
301	307		benefits.
302	308		SECTION 15. Chapter 864, Government Code, is amended by
303	309		adding Section 864.0051 to read as follows:
304	310		Sec. 864.0051. CONTINUING DISABILITY RETIREMENT BENEFITS.
305	311		(a) To receive disability retirement benefits in the form of a
306	312		continuing annuity provided beyond the time prescribed under
307	313		Section 864.005, a person who has been determined by a local board
308	314		to be temporarily disabled must:
309	315		(1) not later than the first anniversary of the date
310	316		the person was determined to be temporarily disabled, apply to the
311	317		state board in the manner and form prescribed by the state board;
312	318		and
313	319		(2) be certified by the medical board designated by
314	320		the state board under Section 865.020 as permanently disabled for
315	321		the performance of the duties of any occupation:
316	322		(A) for which the person is reasonably suited by
317	323		education, training, and experience; and
318	324		(B) that could reasonably be expected to provide
319	325		the person with at least 75 percent of the salary the person was
320	326		earning at the time the disability occurred.
321	327		(b) The amount of a continuing disability retirement
322	328		annuity under this section is determined in the same manner as for a
323	329		temporary disability retirement benefit under Section 864.004(b).
324	330		(c) Except as otherwise provided by this section, a
325	331		continuing disability retirement annuity terminates on the fifth
326	332		anniversary of the date that payment of the continuing disability
327	333		retirement annuity begins following the certification of the
328	334		continuation of the disability under Subsection (a).
329	335		(d) To continue receiving payments of a continuing
330	336		disability retirement annuity after the fifth anniversary, the
331	337		retiree must be recertified as permanently disabled by the medical
332	338		board every five years using the same standard prescribed by
333	339		Subsection (a)(2).
334	340		(e) Payments of a continuing disability retirement annuity
335	341		to a retiree certified by the medical board as permanently disabled
336	342		under Subsection (a) or (d) shall cease if the retiree:
337	343		(1) returns to work at any occupation that provides
338	344		the person with at least 75 percent of the salary the person was
339	345		earning at the time the disability occurred;
340	346		(2) performs emergency services or support services
341	347		for any participating department; or
342	348		(3) rejects a suitable offer of employment, as
343	349		determined by the local board.
344	350		(f) If the state board has reason to believe that a ground
345	351		for termination of a continuing disability retirement annuity
346	352		exists, the state board shall set a date for a hearing on the
347	353		continuation or termination of the annuity. If the state board
348	354		determines that a ground for termination exists, the state board,
349	355		after notice and a hearing, shall adopt an order terminating the
350	356		continuing disability retirement annuity.
351	357		(g) The state board may require financial information,
352	358		including federal income tax returns and wage earning forms, from a
353	359		retiree as a condition of the continued receipt of continuing
354	360		disability retirement benefits. Failure to timely provide
355	361		requested information is a ground for terminating benefits.
356	362		SECTION 16. Section 864.006, Government Code, is amended to
357	363		read as follows:
358	364		Sec. 864.006. MEMBER SERVICE DEATH BENEFITS. (a) The
359	365		surviving spouse and dependents of a member who dies as a result of
360	366		performing emergency services or support services [service duties]
361	367		are entitled to receive in equal shares a death benefit annuity
362	368		equal to the service retirement annuity that the decedent would
363	369		have been entitled to receive if the decedent had been able to
364	370		retire, vested at 100 percent, on the date of the decedent's death.
365	371		(b) The beneficiary of a member who dies as a result of
366	372		performing emergency services or support services [service duties]
367	373		is entitled to a lump-sum benefit of $5,000 or a greater amount that
368	374		the state board provides by rule.
369	375		SECTION 17. Sections 864.007(a) and (b), Government Code,
370	376		are amended to read as follows:
371	377		(a) The state board by rule may provide one or more
372	378		beneficiaries of a deceased member whose death did not result from
373	379		the performance of emergency services or support services [service
374	380		duties] a benefit, which may be a lump-sum amount or an annuity.
375	381		(b) A rule adopted under this section must include the type
376	382		of eligible recipient of the benefit, including any service or age
377	383		requirement, and the method of calculating the amount of the
378	384		benefit. A rule may include any other terms the state board
379	385		considers appropriate.
380	386		SECTION 18. Section 864.010, Government Code, is amended to
381	387		read as follows:
382	388		Sec. 864.010. BENEFITS FOR MEMBERS AND RETIREES OF
383	389		DEPARTMENT THAT WITHDRAWS FROM PARTICIPATION OR CEASES TO EXIST.
384	390		(a) The executive director shall continue to administer benefits
385	391		of the pension system for members and retirees who performed
386	392		emergency services or support services [perform service] for a
387	393		formerly participating department that has withdrawn from
388	394		participation in the pension system or has ceased to exist.
389	395		(b) The governing body of a political subdivision [in which
390	396		a department described by Subsection (a) is or was located] shall
391	397		perform the duties required of a local board for the members and
392	398		retirees who served for the formerly participating department. The
393	399		state board may by rule:
394	400		(1) provide a procedure under which the governing body
395	401		of a department may delegate its duties under this subsection to the
396	402		executive director; or
397	403		(2) appoint the executive director to perform the
398	404		duties of a governing body of a political subdivision if the
399	405		governing body fails to perform or delegate its duties under this
400	406		subsection within a prescribed period of time.
401	407		SECTION 19. Section 864.011, Government Code, is amended to
402	408		read as follows:
403	409		Sec. 864.011. FIRST PAYMENT OF RETIREMENT OR DEATH BENEFIT
404	410		ANNUITY. The cashing or depositing of the first payment of a
405	411		service retirement annuity, disability retirement annuity, or
406	412		death benefit annuity by a person entitled to it, or the receipt by
407	413		a financial institution for credit to that person's account of a
408	414		transfer of funds by the pension system through electronic means,
409	415		is considered acceptance of the amount of the annuity and of the
410	416		amount of qualified service of the person on whose service the
411	417		annuity is based.
412	418		SECTION 20. Section 864.013, Government Code, is amended to
413	419		read as follows:
414	420		Sec. 864.013. COST-OF-LIVING INCREASE. The state board by
415	421		rule may provide a cost-of-living increase for any benefit provided
416	422		by the pension system. If benefits are increased, the state board
417	423		shall require an increase in monthly [governing body] contributions
418	424		if necessary to maintain an actuarially sound pension system.
419	425		SECTION 21. Section 864.0135, Government Code, is amended
420	426		to read as follows:
421	427		Sec. 864.0135. OPTIONAL ANNUITY INCREASE OR SUPPLEMENTAL
422	428		PAYMENTS. (a) The state board by rule may authorize the governing
423	429		body of a participating department to:
424	430		(1) make one or more supplemental payments to its
425	431		retirees and [other] beneficiaries of the pension system; or
426	432		(2) provide an increase in the amount of annuities
427	433		paid to retirees and [other] beneficiaries of the pension system.
428	434		(b) The governing body of a [A] participating department
429	435		that elects an option under a rule adopted under this section shall
430	436		fund all increased benefits that are provided to its retirees and
431	437		[other] beneficiaries of the pension system [department] under the
432	438		option.
433	439		SECTION 22. The heading to Section 864.015, Government
434	440		Code, is amended to read as follows:
435	441		Sec. 864.015. BENEFICIARY CAUSING DEATH OF MEMBER OR
436	442		RETIREE [ANNUITANT].
437	443		SECTION 23. Sections 864.015(a), (b), and (d), Government
438	444		Code, are amended to read as follows:
439	445		(a) A benefit payable on the death of a member or retiree
440	446		[annuitant] may not be paid to a person convicted of causing that
441	447		death but instead is payable as if the convicted person had
442	448		predeceased the decedent.
443	449		(b) The pension system is not required to change the
444	450		recipient of benefits under this section unless it receives actual
445	451		notice of the conviction of a beneficiary. The system may delay
446	452		payment of a benefit payable on the death of a member or retiree
447	453		[annuitant] pending the results of a criminal investigation and of
448	454		legal proceedings relating to the cause of death.
449	455		(d) For the purposes of this section, a person has been
450	456		convicted of causing the death of a member or retiree [annuitant] if
451	457		the person:
452	458		(1) pleads guilty or nolo contendere to, or is found
453	459		guilty by a court of, an offense at the trial of which it is
454	460		established that the person's intentional, knowing, or reckless act
455	461		or omission resulted in the death of a person who was a member or
456	462		retiree [annuitant], regardless of whether sentence is imposed or
457	463		probated; and
458	464		(2) has no appeal of the conviction pending and the
459	465		time provided for appeal has expired.
460	466		SECTION 24. Section 864.016, Government Code, is amended by
461	467		amending Subsections (a), (b), (c), (d), and (e) and adding
462	468		Subsection (a-1) to read as follows:
463	469		(a) An application [A claim] for disability retirement
464	470		benefits or a [lump-sum] death benefit must be filed with the local
465	471		board. [A claim for service retirement benefits must be filed with
466	472		the executive director, who shall forward the claim to the
467	473		appropriate local board for a hearing. A claim for a death benefit
468	474		annuity must be filed with the executive director. The executive
469	475		director shall make a determination of the merits of the claim for a
470	476		death benefit annuity and issue a decision to the claimant.] On
471	477		receiving an application [a claim] under this subsection [section],
472	478		the local board shall hold a hearing to decide the merits of the
473	479		application and whether to approve or deny the application [claim].
474	480		The local board shall send a written copy of its decision to the
475	481		claimant, [and] the applicant, and the executive director. [If a
476	482		local board does not determine a claim for service retirement
477	483		benefits and file its determination with the executive director
478	484		before the 16th day after the date the local board receives the
479	485		claim, the executive director may determine the merits of the
480	486		claim.]
481	487		(a-1) A claim for a service retirement annuity must be filed
482	488		with the executive director.
483	489		(b) A person aggrieved by a decision of a local board or of
484	490		the executive director relating to eligibility for or the amount of
485	491		benefits under this subtitle may appeal the decision to the state
486	492		board.
487	493		(c) An appeal of a local board or executive director
488	494		decision under this section is begun by delivering a notice of
489	495		appeal to the presiding officer or secretary of the local board that
490	496		made the decision or to the executive director, as applicable. The
491	497		notice must be delivered not later than the 20th day after the date
492	498		of the decision and contain a brief description of the reasons for
493	499		the appeal. The aggrieved person must file a copy of the notice
494	500		with the state board.
495	501		(d) An appeal of a local board or executive director
496	502		decision under this section is held in Austin and is a contested
497	503		case under Chapter 2001, conducted as a de novo hearing by the State
498	504		Office of Administrative Hearings.
499	505		(e) After a hearing under Subsection (d), the state board
500	506		shall decide each appeal from a local board or executive director
501	507		decision, issue a written opinion, and notify the local board or
502	508		executive director, as applicable, and the claimant if the state
503	509		board overrules the [local board's] decision.
504	510		SECTION 25. Section 865.001, Government Code, is amended by
505	511		amending Subsection (b) and adding Subsection (b-1) to read as
506	512		follows:
507	513		(b) Except as provided by Subsection (b-1), at [At] least
508	514		five trustees must be active members of the pension system, one of
509	515		whom must represent emergency medical services personnel.
510	516		(b-1) If there are no participating departments in the
511	517		pension system that provide emergency medical services, the
512	518		governor is not required to appoint a trustee to represent
513	519		emergency medical services personnel.
514	520		SECTION 26. Section 865.006, Government Code, is amended by
515	521		amending Subsection (a) and adding Subsection (d) to read as
516	522		follows:
517	523		(a) The state board shall employ a certified public
518	524		accountant, an actuary, and an investment consultant for the fund
519	525		and may acquire computer, custodial, or investment management
520	526		services for the fund. The costs of accounting, actuarial,
521	527		investment consulting, computer, custodial, or investment
522	528		management services and other administrative expenses may be paid
523	529		from income earned by investment of the fund. No portion of the
524	530		corpus or income of the fund may be used for purposes other than the
525	531		benefit of members, retirees [retired emergency services
526	532		personnel], and their beneficiaries.
527	533		(d) The state board is responsible for seeking and
528	534		recovering any benefits fraudulently acquired from the pension
529	535		system. If the state board suspects fraud has occurred, the state
530	536		board shall notify the appropriate local board and the benefit
531	537		recipient and hold a hearing to determine whether fraud has
532	538		occurred. If, after the hearing, the state board determines that
533	539		benefits from the pension system have been or are being
534	540		fraudulently acquired, the state board shall seek appropriate
535	541		relief.
536	542		SECTION 27. Section 865.007(c), Government Code, is amended
537	543		to read as follows:
538	544		(c) The state board or the executive director may accept on
539	545		behalf of the pension system gifts of money or other property from
540	546		any public or private source. Money received under this subsection
541	547		shall be deposited into the fund.
542	548		SECTION 28. Section 865.0095(a), Government Code, is
543	549		amended to read as follows:
544	550		(a) The state board, by a majority vote of all members,
545	551		shall appoint a person other than a member of the state board to
546	552		serve at the state board's will as executive director.
547	553		SECTION 29. Section 865.010, Government Code, is amended by
548	554		adding Subsection (e) to read as follows:
549	555		(e) Not later than the 30th day after the date the executive
550	556		director receives from a participating department head notice of a
551	557		change in the membership records of the participating department,
552	558		the executive director shall notify the presiding officer of the
553	559		local board of the participating department of the change.
554	560		SECTION 30. Sections 865.011(a) and (b), Government Code,
555	561		are amended to read as follows:
556	562		(a) The executive director may at any reasonable time
557	563		examine the:
558	564		(1) records and accounts of a local board; and
559	565		(2) membership records of a participating department
560	566		head [boards].
561	567		(b) The executive director shall:
562	568		(1) require in a timely manner periodic reports from
563	569		participating department heads and [the] local boards; and
564	570		(2) [shall] prepare necessary forms for use by
565	571		participating departments and local boards.
566	572		SECTION 31. Chapter 865, Government Code, is amended by
567	573		adding Sections 865.0115 and 865.0116 to read as follows:
568	574		Sec. 865.0115. PARTICIPATING DEPARTMENT HEAD. (a) Except
569	575		as provided by Subsection (b), the chief, designated leader, or
570	576		other executive head of a participating department is the
571	577		participating department head.
572	578		(b) Subject to the approval of the executive director, the
573	579		governing body of a participating department may designate a
574	580		participating department head.
575	581		Sec. 865.0116. PARTICIPATING DEPARTMENT HEAD'S DUTIES. The
576	582		participating department head:
577	583		(1) is responsible for:
578	584		(A) enrolling new members in the pension system;
579	585		and
580	586		(B) maintaining current and accurate membership
581	587		records; and
582	588		(2) shall provide information to the pension system
583	589		related to changes in the membership records of the participating
584	590		department in the time and manner prescribed by the pension system.
585	591		SECTION 32. Sections 865.012(a), (a-1), and (c), Government
586	592		Code, are amended to read as follows:
587	593		(a) A local board is composed of:
588	594		(1) one trustee selected by the governing body of the
589	595		political subdivision [of which a participating department is a
590	596		part];
591	597		(2) except as provided by Subsection (a-1), three
592	598		trustees who are active members representing a participating
593	599		department chosen by a majority of the members [emergency services
594	600		personnel] in the department [who are eligible to participate in
595	601		the pension system]; and
596	602		(3) two trustees who are representatives of the
597	603		political subdivision or unit of government who are chosen by the
598	604		other members of the local board.
599	605		(a-1) If a participating department does not have a
600	606		sufficient number of active members to serve on a local board under
601	607		Subsection (a)(2), the other members of the local board, or if there
602	608		are no other members of the local board, the governing body of the
603	609		political subdivision [of which the department is a part] shall
604	610		select one or more trustees to serve under that subsection
605	611		[subdivision]. A person selected under this subsection to serve as
606	612		a trustee must be:
607	613		(1) a retiree of the pension system; or
608	614		(2) a beneficiary of the pension system who is the
609	615		surviving spouse of a former member or retiree.
610	616		(c) A local board shall hold not fewer than two [four]
611	617		meetings a year under Chapter 551.
612	618		SECTION 33. Chapter 865, Government Code, is amended by
613	619		adding Section 865.0121 to read as follows:
614	620		Sec. 865.0121. DELEGATION OF LOCAL BOARD DUTIES. The state
615	621		board by rule may adopt a procedure by which the duties of a local
616	622		board may be delegated to the executive director if:
617	623		(1) trustees of the local board have not been
618	624		appointed under Section 865.012(a) or (a-1); or
619	625		(2) the local board fails to perform its duties under
620	626		this subtitle within a reasonable time, as determined by the board,
621	627		including failure to hold the minimum number of meetings each year
622	628		required by Section 865.012(c).
623	629		SECTION 34. Sections 865.014(a), (c), and (d), Government
624	630		Code, are amended to read as follows:
625	631		(a) The [Each] governing body of a political subdivision [of
626	632		which a participating department is a part] shall contribute for
627	633		each member performing emergency services or support services for
628	634		the participating department for each month of service beginning on
629	635		the date that the member enters the pension system at a rate
630	636		determined in accordance with Subsection (b) and may make
631	637		additional contributions as determined by the governing body of the
632	638		political subdivision. The pension system may collect from [If the
633	639		participating department is located in more than one political
634	640		subdivision,] the governing body [bodies] of the political
635	641		subdivision any contributions the governing body fails to make
636	642		under this section and associated interest accrued in accordance
637	643		with Subsection (c). The pension system [subdivisions] shall
638	644		deposit interest collected under this section into the fund
639	645		[contribute equally for each member for each month of service].
640	646		(c) Contributions required as provided by this section
641	647		shall be paid at the times and in the manner that the state board
642	648		prescribes by rule. Contributions required by this section shall
643	649		be submitted by electronic funds transfer, by wire transfer, or as
644	650		an automated clearinghouse withdrawal (ACH debit) unless the
645	651		executive director grants an exception based on the difficulty of
646	652		the [a participating department's] use of those payment methods.
647	653		Contributions that are not paid within the time required by the
648	654		state board accrue interest at the most recent assumed actuarial
649	655		rate of return on investments of the fund.
650	656		(d) The state board may by rule require a monthly
651	657		contribution be made by the governing bodies of [from] political
652	658		subdivisions that do not participate in the pension system but
653	659		whose employees or former employees are members or retirees of the
654	660		pension system in an amount necessary to pay the expenses of
655	661		administering benefits for those persons.
656	662		SECTION 35. Section 865.017(b), Government Code, is amended
657	663		to read as follows:
658	664		(b) The pension system may not begin service or disability
659	665		retirement annuity or death benefit payments based on the service
660	666		of a person whose local board or participating department head is
661	667		not current in its filing of a required periodic report.
662	668		SECTION 36. The heading to Section 865.019, Government
663	669		Code, is amended to read as follows:
664	670		Sec. 865.019. CONFIDENTIALITY OF INFORMATION ABOUT
665	671		MEMBERS, RETIREES [ANNUITANTS], AND BENEFICIARIES.
666	672		SECTION 37. Sections 865.019(a) and (d), Government Code,
667	673		are amended to read as follows:
668	674		(a) Information contained in records that are in the custody
669	675		of the pension system concerning an individual member, retiree
670	676		[annuitant], or beneficiary is confidential under Section 552.101
671	677		and may not be disclosed in a form identifiable with a specific
672	678		individual unless:
673	679		(1) the information is disclosed to:
674	680		(A) the individual or the individual's attorney,
675	681		guardian, executor, administrator, conservator, or other person
676	682		who the executive director determines is acting in the interest of
677	683		the individual or the individual's estate;
678	684		(B) a spouse or former spouse of the individual
679	685		after the executive director determines that the information is
680	686		relevant to the spouse's or former spouse's interest in member
681	687		accounts, benefits, or other amounts payable by the pension system;
682	688		(C) a governmental official or employee after the
683	689		executive director determines that disclosure of the information
684	690		requested is reasonably necessary to the performance of the duties
685	691		of the official or employee; or
686	692		(D) a person authorized by the individual in
687	693		writing to receive the information; or
688	694		(2) the information is disclosed under a subpoena and
689	695		the executive director determines that the individual will have a
690	696		reasonable opportunity to contest the subpoena.
691	697		(d) A determination and disclosure under Subsection (a) may
692	698		be made without notice to the individual member, retiree
693	699		[annuitant], or beneficiary.
694	700		SECTION 38. The following provisions of the Government Code
695	701		are repealed:
696	702		(1) Section 861.001(2);
697	703		(2) Section 864.003;
698	704		(3) Sections 864.005(c), (e), (f), and (g); and
699	705		(4) Section 865.010(d).
700	706		SECTION 39. Section 864.005, Government Code, as amended by
701	707		this Act, and Section 864.0051, Government Code, as added by this
702	708		Act, apply only to a claim for a disability retirement benefit that
703	709		is filed on or after the effective date of this Act. A claim for a
704	710		disability retirement benefit that is filed before the effective
705	711		date of this Act is governed by the law in effect immediately before
706	712		the effective date of this Act, and the former law is continued in
707	713		effect for that purpose.
708	714		SECTION 40. Section 864.016, Government Code, as amended by
709	715		this Act, applies only to an application for a disability
710	716		retirement or death benefit that is filed on or after the effective
711	717		date of this Act. A claim for a disability retirement or death
712	718		benefit that is filed before the effective date of this Act is
713	719		governed by the law in effect immediately before the effective date
714	720		of this Act, and the former law is continued in effect for that
715	721		purpose.
716	722		SECTION 41. This Act takes effect September 1, 2019.
717		-	______________________________ ______________________________
718		-	President of the Senate Speaker of the House
719		-	I certify that H.B. No. 3247 was passed by the House on May 3,
720		-	2019, by the following vote: Yeas 140, Nays 0, 2 present, not
721		-	voting.
722		-	______________________________
723		-	Chief Clerk of the House
724		-	I certify that H.B. No. 3247 was passed by the Senate on May
725		-	22, 2019, by the following vote: Yeas 31, Nays 0.
726		-	______________________________
727		-	Secretary of the Senate
728		-	APPROVED: _____________________
729		-	Date
730		-	_____________________
731		-	Governor
	723	+	* * * * *