Bill Text: TX HB3247 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the Texas Emergency Services Retirement System.

Sponsorship: Bipartisan Bill

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB3247 Detail]

Download: Texas-2019-HB3247-Enrolled.html

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H.B. No. 3247

AN ACT
relating to the Texas Emergency Services Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 861.001, Government Code, is amended by
amending Subdivisions (4), (5), (8), (10), and (11-a) and adding
Subdivisions (6-a), (6-b), (8-a), (8-b), and (10-a) to read as
follows:
(4) "Dependent" means an unmarried child, natural or
adopted, who:
(A) is less than 18 years of age;
(B) is less than 19 years of age and a full-time
student at an elementary or secondary school; or
(C) became permanently disabled before the
child's 22nd birthday, as determined by the executive director [and
remains disabled].
(5) "Emergency services" means only those services
relating to fire, rescue, [and] emergency medical services, and
emergency response services [including support services for those
duties, performed by a volunteer or auxiliary employee of a
participating department].
(6-a) "Governing body of a department" or "governing
body of a participating department" means:
(A) the board of trustees or other governing body
of the department; or
(B) if the department does not have a governing
body, the governing body of the political subdivision.
(6-b) "Governing body of a political subdivision"
means the governing body of the political subdivision or unit of
government of which the department is a part.
(8) "Member" means a person having membership
[volunteer or auxiliary employee who participates] in the pension
system under Section 862.002.
(8-a) "Participating department" means a department
that elects to participate in the pension system under Section
862.001.
(8-b) "Participating department head" means the
person designated as a participating department head under Section
865.0115.
(10) "Qualified service" means service performed:
(A) for a participating department that [is
recognized as an emergency services department by its governing
body and that] conducts at least 48 hours of training in a calendar
year; and
(B) [that is performed] by a member in good
standing in the department who:
(i) attends at least 20 hours of annual
training and at least 25 percent of the department's emergencies in
a calendar year;
(ii) attends at least 20 hours of annual
training and provides support services for at least 25 percent of
the department's emergencies in a calendar year; or
(iii) does not attend because the member is
absent because of military duty.
(10-a) "Retiree" means a person who receives a service
or disability retirement benefit from the pension system.
(11-a) "Support services" means services that
directly assist in the delivery of emergency services. The term
includes:
(A) directing traffic at an emergency scene;
(B) [,] dispatching emergency services
personnel;
(C) [,] driving an emergency services vehicle;
(D) [,] supplying or maintaining equipment at an
emergency scene;
(E) [,] providing essential recordkeeping for a
participating department;[,] and
(F) other similar services as determined by a
participating department.
SECTION 2. Section 861.008, Government Code, is amended to
read as follows:
Sec. 861.008. IMMUNITY FROM LIABILITY. The state board,
the executive director, a local board, each participating
department head, and employees of the pension system are not liable
for any action taken or omission made or suffered by them in good
faith in the performance of any duty or prerogative in connection
with the administration of the pension system.
SECTION 3. Section 862.001, Government Code, is amended to
read as follows:
Sec. 862.001. PARTICIPATION BY DEPARTMENT. (a) For
purposes of this section, "department" means a department or other
organization that:
(1) performs emergency services, including a
volunteer fire department, as defined by Section 614.101; and
(2) is not a for-profit entity.
(a-1) The governing body of a department [that performs
emergency services] may, in the manner provided for taking official
action by the body, elect to participate in the pension system. The
[A] governing body of a department shall notify the executive
director as soon as practicable of an election made under this
subsection. Except as provided by Subsection (b), an election to
participate under this subsection is irrevocable.
(b) The state board may adopt rules that allow the governing
body of a participating department to revoke its [that makes an]
election to participate in the pension system under Subsection
(a-1) in a manner that maintains an actuarially sound [(a) may
terminate participation in the] pension system [not later than the
fifth anniversary of the date of the election to participate,
except that a department that begins participation after September
1, 2005, may not terminate that participation].
SECTION 4. Section 862.002, Government Code, is amended to
read as follows:
Sec. 862.002. MEMBERSHIP BY INDIVIDUAL. (a) Except as
otherwise provided by this section and Section 862.0021, each
person who performs emergency services or, subject to Section
862.0025, support services [service] as a volunteer or [auxiliary]
employee of a participating department, regardless of whether the
person receives compensation from the participating department for
the services, is a member of the pension system.
(b) A person is not a member of the pension system if the
person:
(1) is less than 18 years of age;
(2) is subject to [in] a waiting [probationary] period
under Section 862.0021 [of service before becoming a regular member
of a participating department] for which the governing body of the
political subdivision [department] is not making contributions
during the waiting period [for the service];
(3) does not receive a certification of physical
fitness or assignment to perform support services under Section
862.003; or
(4) is a retiree [retired under this subtitle],
regardless of whether the person continues to perform emergency or
support services [participate in emergency service-related
functions] for a department [from which the person retired].
SECTION 5. Section 862.0021, Government Code, is amended to
read as follows:
Sec. 862.0021. WAITING [PROBATIONARY] PERIOD BEFORE
MEMBERSHIP. (a) A participating department may impose a waiting
[probationary] period for a person who is eligible to perform or who
is training to perform emergency services or, subject to Section
862.0025, support services as a volunteer or [auxiliary] employee
of the department during which time the department is not required
to enroll the person as a member of the pension system.
(b) A waiting [probationary] period imposed under this
section must end not later than six months after the date the person
begins service or training with the participating department.
(c) The governing body of a political subdivision may, but
[participating department] is not required to, pay contributions
for the person during the waiting [probationary] period.
(d) A person's membership in the pension system begins on
the date that the governing body of a political subdivision
[department] begins payment of contributions for that person,
without regard to whether the:
(1) person's membership in the pension system
[service] is subject to a waiting [probationary] period under this
section; or
(2) person is subject to a probationary period imposed
by a participating department for other purposes.
SECTION 6. Sections 862.0025(a) and (c), Government Code,
are amended to read as follows:
(a) Except as provided by Subsection (b), the governing body
of a participating department may, at any time, make an election to
include all persons who provide support services for the department
as members of the pension system [on the same terms as all other
volunteers of the department]. An election under this section
takes effect on the first day of the calendar month that begins
after the month in which the election is made and communicated to
the executive director. Once made, an election under this section
is irrevocable.
(c) After an election under this section, a participating
department that previously did not enroll its support staff as
members of the pension system may purchase service credit for
service performed before the date of the election under the terms
required for prior service credit for service before departmental
participation under Section 863.004.
SECTION 7. Section 862.003, Government Code, is amended to
read as follows:
Sec. 862.003. CERTIFICATION OF PHYSICAL FITNESS. (a) A
person who performs emergency services for a participating
department [prospective member] shall present to the participating
department [local] head [of the department, for delivery to the
local board,] a certification of physical fitness by a qualified
physician. [The person becomes a member of the pension system if
the local board accepts the certification or if the local board
assigns the person to perform support services and enrolls its
support staff as members of the system.]
(b) If a participating department provides membership to a
person who performs support services under Section 862.0025, the
participating department head [A local board] shall assign a person
to perform support services if the person:
(1) does not present an acceptable certification under
Subsection (a); or
(2) will only perform support services for the
department [and the person is at least 18 years of age, is not
retired from the pension system, and is not serving a probationary
period before becoming a regular member of a participating
department].
SECTION 8. Section 863.003, Government Code, is amended to
read as follows:
Sec. 863.003. RECOGNITION [TRANSFER] OF PRIOR SERVICE
CREDIT. A member who terminates service, except by service
retirement under Chapter 864, and later resumes service with the
same participating department or begins service with another
participating department may receive service credit for [transfer]
all previously accrued service credit in the pension system earned
for service with any participating [to the new] department.
SECTION 9. Chapter 863, Government Code, is amended by
adding Section 863.0045 to read as follows:
Sec. 863.0045. SERVICE CREDIT AND MEMBERSHIP IN MULTIPLE
PUBLIC RETIREMENT SYSTEMS. In accordance with Section 67(a)(2),
Article XVI, Texas Constitution, a person may not earn service
credit for the same service with the pension system and another
public retirement system.
SECTION 10. Section 863.005, Government Code, is amended to
read as follows:
Sec. 863.005. CHARGE FOR CERTAIN PAST DUE CONTRIBUTIONS.
The state board by rule may impose an interest charge on
contributions due because of a correction of an error [by a local
board] related to enrollment or qualified service. The charge must
be based on the pension system's current assumed rate of return.
Charges collected shall be deposited in the fund.
SECTION 11. Section 864.001(b), Government Code, is amended
to read as follows:
(b) The state board may change the benefit formula for any
person who is not a retiree [an annuitant] of the pension system.
SECTION 12. Section 864.002(a), Government Code, is amended
to read as follows:
(a) A service retirement annuity is payable in monthly
installments based on:
(1) the [governing body's] average monthly
contribution during the member's term of qualified service with all
participating departments under this subtitle, not including a
contribution to reduce the unfunded accrued actuarial liability of
the pension system; and
(2) a formula adopted by the state board by rule that
allows the pension system, assuming maximum state contributions are
provided under Section 865.015, to be maintained as actuarially
sound.
SECTION 13. Section 864.004, Government Code, is amended to
read as follows:
Sec. 864.004. TEMPORARY DISABILITY RETIREMENT BENEFITS.
(a) A member is entitled to disability retirement benefits from the
pension system only if a local board determines that the member
became disabled during the performance of emergency services or
support services [service duties] and is unable to return to work at
the member's regular occupation or, if the member is a student, is
unable to return to the member's scholastic studies. A disabled
member must, at the time of disability, elect between a service
retirement annuity or disability retirement benefits, if eligible
for both.
(b) Subject to Subsection (c), a [A disabled] member
described by Subsection (a) who does not elect to receive a service
retirement annuity is entitled to a temporary disability retirement
benefit [benefits] of:
(1) $300 per [a] month; or
(2) a greater amount that the state board by rule
adopts based on the monthly contributions made for the members by
the governing body of the political subdivision [of a participating
department for its members].
(c) Except as provided by Section 864.005, a temporary [To
continue to receive] disability retirement benefit under [benefits
in the form of a continuing annuity, computed in the manner
described by] Subsection (b) must cease on the expiration of a
period, not to exceed one year, determined to be the likely duration
of the disability by a physician in a written statement to the local
board. The local board shall select the physician making a
determination under this subsection[, a person who is determined by
a local board to be temporarily disabled must:
[(1) apply to the medical board appointed by the state
board; and
[(2) not later than the first anniversary of the date
the person was determined to be temporarily disabled, be certified
by the medical board as permanently disabled for the performance of
the duties of the person's regular occupation].
SECTION 14. Sections 864.005(a), (b), (d), and (h),
Government Code, are amended to read as follows:
(a) A local board may [shall] require a member who is
receiving a temporary disability retirement benefit [benefits] to
file a disability rating report every three months from a physician
chosen by the local board. If a report indicates a significant
improvement in condition, the local board, after notice and a
hearing, may adopt an order to terminate temporary disability
retirement benefit payments. The local board shall send a copy of
each order adopted under this subsection to the executive director.
(b) Temporary disability benefits cease if:
(1) the recipient returns to work at the person's
regular occupation, resumes scholastic studies, or performs
emergency services or support services [service duties] for any
participating department or other entity; or
(2) [agency, or if] the local board adopts an order
under Subsection (d).
(d) If the local board has reason to believe that a ground
for termination of temporary disability retirement benefits
exists, the local board may set a date for a hearing on the matter.
The local board, after notice and a hearing, may adopt an order
terminating temporary disability retirement benefits if the local
board determines that a ground for termination exists. The local
board may not adopt an order under this subsection on the basis of a
physician's previously submitted statement as to the likely
duration of the disability if the local board determines, after a
hearing, that the disability continues. The local board shall send
a copy of each order adopted under this subsection to the executive
director.
(h) A [The state board or a] local board may require
financial information from a person as a condition to the continued
receipt of temporary disability retirement benefits, including
federal income tax returns and wage earning forms. Failure to
timely provide requested information is a ground for terminating
benefits.
SECTION 15. Chapter 864, Government Code, is amended by
adding Section 864.0051 to read as follows:
Sec. 864.0051. CONTINUING DISABILITY RETIREMENT BENEFITS.
(a) To receive disability retirement benefits in the form of a
continuing annuity provided beyond the time prescribed under
Section 864.005, a person who has been determined by a local board
to be temporarily disabled must:
(1) not later than the first anniversary of the date
the person was determined to be temporarily disabled, apply to the
state board in the manner and form prescribed by the state board;
and
(2) be certified by the medical board designated by
the state board under Section 865.020 as permanently disabled for
the performance of the duties of any occupation:
(A) for which the person is reasonably suited by
education, training, and experience; and
(B) that could reasonably be expected to provide
the person with at least 75 percent of the salary the person was
earning at the time the disability occurred.
(b) The amount of a continuing disability retirement
annuity under this section is determined in the same manner as for a
temporary disability retirement benefit under Section 864.004(b).
(c) Except as otherwise provided by this section, a
continuing disability retirement annuity terminates on the fifth
anniversary of the date that payment of the continuing disability
retirement annuity begins following the certification of the
continuation of the disability under Subsection (a).
(d) To continue receiving payments of a continuing
disability retirement annuity after the fifth anniversary, the
retiree must be recertified as permanently disabled by the medical
board every five years using the same standard prescribed by
Subsection (a)(2).
(e) Payments of a continuing disability retirement annuity
to a retiree certified by the medical board as permanently disabled
under Subsection (a) or (d) shall cease if the retiree:
(1) returns to work at any occupation that provides
the person with at least 75 percent of the salary the person was
earning at the time the disability occurred;
(2) performs emergency services or support services
for any participating department; or
(3) rejects a suitable offer of employment, as
determined by the local board.
(f) If the state board has reason to believe that a ground
for termination of a continuing disability retirement annuity
exists, the state board shall set a date for a hearing on the
continuation or termination of the annuity. If the state board
determines that a ground for termination exists, the state board,
after notice and a hearing, shall adopt an order terminating the
continuing disability retirement annuity.
(g) The state board may require financial information,
including federal income tax returns and wage earning forms, from a
retiree as a condition of the continued receipt of continuing
disability retirement benefits. Failure to timely provide
requested information is a ground for terminating benefits.
SECTION 16. Section 864.006, Government Code, is amended to
read as follows:
Sec. 864.006. MEMBER SERVICE DEATH BENEFITS. (a) The
surviving spouse and dependents of a member who dies as a result of
performing emergency services or support services [service duties]
are entitled to receive in equal shares a death benefit annuity
equal to the service retirement annuity that the decedent would
have been entitled to receive if the decedent had been able to
retire, vested at 100 percent, on the date of the decedent's death.
(b) The beneficiary of a member who dies as a result of
performing emergency services or support services [service duties]
is entitled to a lump-sum benefit of $5,000 or a greater amount that
the state board provides by rule.
SECTION 17. Sections 864.007(a) and (b), Government Code,
are amended to read as follows:
(a) The state board by rule may provide one or more
beneficiaries of a deceased member whose death did not result from
the performance of emergency services or support services [service
duties] a benefit, which may be a lump-sum amount or an annuity.
(b) A rule adopted under this section must include the type
of eligible recipient of the benefit, including any service or age
requirement, and the method of calculating the amount of the
benefit. A rule may include any other terms the state board
considers appropriate.
SECTION 18. Section 864.010, Government Code, is amended to
read as follows:
Sec. 864.010. BENEFITS FOR MEMBERS AND RETIREES OF
DEPARTMENT THAT WITHDRAWS FROM PARTICIPATION OR CEASES TO EXIST.
(a) The executive director shall continue to administer benefits
of the pension system for members and retirees who performed
emergency services or support services [perform service] for a
formerly participating department that has withdrawn from
participation in the pension system or has ceased to exist.
(b) The governing body of a political subdivision [in which
a department described by Subsection (a) is or was located] shall
perform the duties required of a local board for the members and
retirees who served for the formerly participating department. The
state board may by rule:
(1) provide a procedure under which the governing body
of a department may delegate its duties under this subsection to the
executive director; or
(2) appoint the executive director to perform the
duties of a governing body of a political subdivision if the
governing body fails to perform or delegate its duties under this
subsection within a prescribed period of time.
SECTION 19. Section 864.011, Government Code, is amended to
read as follows:
Sec. 864.011. FIRST PAYMENT OF RETIREMENT OR DEATH BENEFIT
ANNUITY. The cashing or depositing of the first payment of a
service retirement annuity, disability retirement annuity, or
death benefit annuity by a person entitled to it, or the receipt by
a financial institution for credit to that person's account of a
transfer of funds by the pension system through electronic means,
is considered acceptance of the amount of the annuity and of the
amount of qualified service of the person on whose service the
annuity is based.
SECTION 20. Section 864.013, Government Code, is amended to
read as follows:
Sec. 864.013. COST-OF-LIVING INCREASE. The state board by
rule may provide a cost-of-living increase for any benefit provided
by the pension system. If benefits are increased, the state board
shall require an increase in monthly [governing body] contributions
if necessary to maintain an actuarially sound pension system.
SECTION 21. Section 864.0135, Government Code, is amended
to read as follows:
Sec. 864.0135. OPTIONAL ANNUITY INCREASE OR SUPPLEMENTAL
PAYMENTS. (a) The state board by rule may authorize the governing
body of a participating department to:
(1) make one or more supplemental payments to its
retirees and [other] beneficiaries of the pension system; or
(2) provide an increase in the amount of annuities
paid to retirees and [other] beneficiaries of the pension system.
(b) The governing body of a [A] participating department
that elects an option under a rule adopted under this section shall
fund all increased benefits that are provided to its retirees and
[other] beneficiaries of the pension system [department] under the
option.
SECTION 22. The heading to Section 864.015, Government
Code, is amended to read as follows:
Sec. 864.015. BENEFICIARY CAUSING DEATH OF MEMBER OR
RETIREE [ANNUITANT].
SECTION 23. Sections 864.015(a), (b), and (d), Government
Code, are amended to read as follows:
(a) A benefit payable on the death of a member or retiree
[annuitant] may not be paid to a person convicted of causing that
death but instead is payable as if the convicted person had
predeceased the decedent.
(b) The pension system is not required to change the
recipient of benefits under this section unless it receives actual
notice of the conviction of a beneficiary. The system may delay
payment of a benefit payable on the death of a member or retiree
[annuitant] pending the results of a criminal investigation and of
legal proceedings relating to the cause of death.
(d) For the purposes of this section, a person has been
convicted of causing the death of a member or retiree [annuitant] if
the person:
(1) pleads guilty or nolo contendere to, or is found
guilty by a court of, an offense at the trial of which it is
established that the person's intentional, knowing, or reckless act
or omission resulted in the death of a person who was a member or
retiree [annuitant], regardless of whether sentence is imposed or
probated; and
(2) has no appeal of the conviction pending and the
time provided for appeal has expired.
SECTION 24. Section 864.016, Government Code, is amended by
amending Subsections (a), (b), (c), (d), and (e) and adding
Subsection (a-1) to read as follows:
(a) An application [A claim] for disability retirement
benefits or a [lump-sum] death benefit must be filed with the local
board. [A claim for service retirement benefits must be filed with
the executive director, who shall forward the claim to the
appropriate local board for a hearing. A claim for a death benefit
annuity must be filed with the executive director. The executive
director shall make a determination of the merits of the claim for a
death benefit annuity and issue a decision to the claimant.] On
receiving an application [a claim] under this subsection [section],
the local board shall hold a hearing to decide the merits of the
application and whether to approve or deny the application [claim].
The local board shall send a written copy of its decision to the
claimant, [and] the applicant, and the executive director. [If a
local board does not determine a claim for service retirement
benefits and file its determination with the executive director
before the 16th day after the date the local board receives the
claim, the executive director may determine the merits of the
claim.]
(a-1) A claim for a service retirement annuity must be filed
with the executive director.
(b) A person aggrieved by a decision of a local board or of
the executive director relating to eligibility for or the amount of
benefits under this subtitle may appeal the decision to the state
board.
(c) An appeal of a local board or executive director
decision under this section is begun by delivering a notice of
appeal to the presiding officer or secretary of the local board that
made the decision or to the executive director, as applicable. The
notice must be delivered not later than the 20th day after the date
of the decision and contain a brief description of the reasons for
the appeal. The aggrieved person must file a copy of the notice
with the state board.
(d) An appeal of a local board or executive director
decision under this section is held in Austin and is a contested
case under Chapter 2001, conducted as a de novo hearing by the State
Office of Administrative Hearings.
(e) After a hearing under Subsection (d), the state board
shall decide each appeal from a local board or executive director
decision, issue a written opinion, and notify the local board or
executive director, as applicable, and the claimant if the state
board overrules the [local board's] decision.
SECTION 25. Section 865.001, Government Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsection (b-1), at [At] least
five trustees must be active members of the pension system, one of
whom must represent emergency medical services personnel.
(b-1) If there are no participating departments in the
pension system that provide emergency medical services, the
governor is not required to appoint a trustee to represent
emergency medical services personnel.
SECTION 26. Section 865.006, Government Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) The state board shall employ a certified public
accountant, an actuary, and an investment consultant for the fund
and may acquire computer, custodial, or investment management
services for the fund. The costs of accounting, actuarial,
investment consulting, computer, custodial, or investment
management services and other administrative expenses may be paid
from income earned by investment of the fund. No portion of the
corpus or income of the fund may be used for purposes other than the
benefit of members, retirees [retired emergency services
personnel], and their beneficiaries.
(d) The state board is responsible for seeking and
recovering any benefits fraudulently acquired from the pension
system. If the state board suspects fraud has occurred, the state
board shall notify the appropriate local board and the benefit
recipient and hold a hearing to determine whether fraud has
occurred. If, after the hearing, the state board determines that
benefits from the pension system have been or are being
fraudulently acquired, the state board shall seek appropriate
relief.
SECTION 27. Section 865.007(c), Government Code, is amended
to read as follows:
(c) The state board or the executive director may accept on
behalf of the pension system gifts of money or other property from
any public or private source. Money received under this subsection
shall be deposited into the fund.
SECTION 28. Section 865.0095(a), Government Code, is
amended to read as follows:
(a) The state board, by a majority vote of all members,
shall appoint a person other than a member of the state board to
serve at the state board's will as executive director.
SECTION 29. Section 865.010, Government Code, is amended by
adding Subsection (e) to read as follows:
(e) Not later than the 30th day after the date the executive
director receives from a participating department head notice of a
change in the membership records of the participating department,
the executive director shall notify the presiding officer of the
local board of the participating department of the change.
SECTION 30. Sections 865.011(a) and (b), Government Code,
are amended to read as follows:
(a) The executive director may at any reasonable time
examine the:
(1) records and accounts of a local board; and
(2) membership records of a participating department
head [boards].
(b) The executive director shall:
(1) require in a timely manner periodic reports from
participating department heads and [the] local boards; and
(2) [shall] prepare necessary forms for use by
participating departments and local boards.
SECTION 31. Chapter 865, Government Code, is amended by
adding Sections 865.0115 and 865.0116 to read as follows:
Sec. 865.0115. PARTICIPATING DEPARTMENT HEAD. (a) Except
as provided by Subsection (b), the chief, designated leader, or
other executive head of a participating department is the
participating department head.
(b) Subject to the approval of the executive director, the
governing body of a participating department may designate a
participating department head.
Sec. 865.0116. PARTICIPATING DEPARTMENT HEAD'S DUTIES. The
participating department head:
(1) is responsible for:
(A) enrolling new members in the pension system;
and
(B) maintaining current and accurate membership
records; and
(2) shall provide information to the pension system
related to changes in the membership records of the participating
department in the time and manner prescribed by the pension system.
SECTION 32. Sections 865.012(a), (a-1), and (c), Government
Code, are amended to read as follows:
(a) A local board is composed of:
(1) one trustee selected by the governing body of the
political subdivision [of which a participating department is a
part];
(2) except as provided by Subsection (a-1), three
trustees who are active members representing a participating
department chosen by a majority of the members [emergency services
personnel] in the department [who are eligible to participate in
the pension system]; and
(3) two trustees who are representatives of the
political subdivision or unit of government who are chosen by the
other members of the local board.
(a-1) If a participating department does not have a
sufficient number of active members to serve on a local board under
Subsection (a)(2), the other members of the local board, or if there
are no other members of the local board, the governing body of the
political subdivision [of which the department is a part] shall
select one or more trustees to serve under that subsection
[subdivision]. A person selected under this subsection to serve as
a trustee must be:
(1) a retiree of the pension system; or
(2) a beneficiary of the pension system who is the
surviving spouse of a former member or retiree.
(c) A local board shall hold not fewer than two [four]
meetings a year under Chapter 551.
SECTION 33. Chapter 865, Government Code, is amended by
adding Section 865.0121 to read as follows:
Sec. 865.0121. DELEGATION OF LOCAL BOARD DUTIES. The state
board by rule may adopt a procedure by which the duties of a local
board may be delegated to the executive director if:
(1) trustees of the local board have not been
appointed under Section 865.012(a) or (a-1); or
(2) the local board fails to perform its duties under
this subtitle within a reasonable time, as determined by the board,
including failure to hold the minimum number of meetings each year
required by Section 865.012(c).
SECTION 34. Sections 865.014(a), (c), and (d), Government
Code, are amended to read as follows:
(a) The [Each] governing body of a political subdivision [of
which a participating department is a part] shall contribute for
each member performing emergency services or support services for
the participating department for each month of service beginning on
the date that the member enters the pension system at a rate
determined in accordance with Subsection (b) and may make
additional contributions as determined by the governing body of the
political subdivision. The pension system may collect from [If the
participating department is located in more than one political
subdivision,] the governing body [bodies] of the political
subdivision any contributions the governing body fails to make
under this section and associated interest accrued in accordance
with Subsection (c). The pension system [subdivisions] shall
deposit interest collected under this section into the fund
[contribute equally for each member for each month of service].
(c) Contributions required as provided by this section
shall be paid at the times and in the manner that the state board
prescribes by rule. Contributions required by this section shall
be submitted by electronic funds transfer, by wire transfer, or as
an automated clearinghouse withdrawal (ACH debit) unless the
executive director grants an exception based on the difficulty of
the [a participating department's] use of those payment methods.
Contributions that are not paid within the time required by the
state board accrue interest at the most recent assumed actuarial
rate of return on investments of the fund.
(d) The state board may by rule require a monthly
contribution be made by the governing bodies of [from] political
subdivisions that do not participate in the pension system but
whose employees or former employees are members or retirees of the
pension system in an amount necessary to pay the expenses of
administering benefits for those persons.
SECTION 35. Section 865.017(b), Government Code, is amended
to read as follows:
(b) The pension system may not begin service or disability
retirement annuity or death benefit payments based on the service
of a person whose local board or participating department head is
not current in its filing of a required periodic report.
SECTION 36. The heading to Section 865.019, Government
Code, is amended to read as follows:
Sec. 865.019. CONFIDENTIALITY OF INFORMATION ABOUT
MEMBERS, RETIREES [ANNUITANTS], AND BENEFICIARIES.
SECTION 37. Sections 865.019(a) and (d), Government Code,
are amended to read as follows:
(a) Information contained in records that are in the custody
of the pension system concerning an individual member, retiree
[annuitant], or beneficiary is confidential under Section 552.101
and may not be disclosed in a form identifiable with a specific
individual unless:
(1) the information is disclosed to:
(A) the individual or the individual's attorney,
guardian, executor, administrator, conservator, or other person
who the executive director determines is acting in the interest of
the individual or the individual's estate;
(B) a spouse or former spouse of the individual
after the executive director determines that the information is
relevant to the spouse's or former spouse's interest in member
accounts, benefits, or other amounts payable by the pension system;
(C) a governmental official or employee after the
executive director determines that disclosure of the information
requested is reasonably necessary to the performance of the duties
of the official or employee; or
(D) a person authorized by the individual in
writing to receive the information; or
(2) the information is disclosed under a subpoena and
the executive director determines that the individual will have a
reasonable opportunity to contest the subpoena.
(d) A determination and disclosure under Subsection (a) may
be made without notice to the individual member, retiree
[annuitant], or beneficiary.
SECTION 38. The following provisions of the Government Code
are repealed:
(1) Section 861.001(2);
(2) Section 864.003;
(3) Sections 864.005(c), (e), (f), and (g); and
(4) Section 865.010(d).
SECTION 39. Section 864.005, Government Code, as amended by
this Act, and Section 864.0051, Government Code, as added by this
Act, apply only to a claim for a disability retirement benefit that
is filed on or after the effective date of this Act. A claim for a
disability retirement benefit that is filed before the effective
date of this Act is governed by the law in effect immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 40. Section 864.016, Government Code, as amended by
this Act, applies only to an application for a disability
retirement or death benefit that is filed on or after the effective
date of this Act. A claim for a disability retirement or death
benefit that is filed before the effective date of this Act is
governed by the law in effect immediately before the effective date
of this Act, and the former law is continued in effect for that
purpose.
SECTION 41. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3247 was passed by the House on May 3,
2019, by the following vote: Yeas 140, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3247 was passed by the Senate on May
22, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor