S.B. No. 200

	AN ACT
	relating to the continuation and functions of the State Pension
	Review Board.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subsection (a), Section 801.102, Government
	Code, is amended to read as follows:
	(a)  The board is composed of seven [nine] members.
	SECTION 2.  Section 801.1021, Government Code, is amended to
	read as follows:
	Sec. 801.1021.  CONFLICT PROVISIONS. (a)  In this section,
	"Texas trade association" means a cooperative and voluntarily
	joined statewide association of business or professional
	competitors in this state designed to assist its members and its
	industry or profession in dealing with mutual business or
	professional problems and in promoting their common interest.
	(b)  A person is not eligible for appointment as a member of
	the board if the person or the person's spouse:
	(1)  is employed by or participates in the management
	of a business entity or other organization receiving funds from the
	board;
	(2)  owns or controls, directly or indirectly, more
	than a 10 percent interest in a business entity or other
	organization receiving funds from the board; or
	(3)  uses or receives a substantial amount of tangible
	goods, services, or funds from the board, other than compensation
	or reimbursement authorized by law for board membership,
	attendance, or expenses.
	(c) [(b)]  A person may not serve as a member of the board or
	act as the general counsel to the board if the person is required to
	register as a lobbyist under Chapter 305 because of the person's
	activities for compensation on behalf of a profession related to
	the operation of the board.
	(d)  A person may not be a member of the board and may not be a
	board employee employed in a "bona fide executive, administrative,
	or professional capacity," as that phrase is used for purposes of
	establishing an exemption to the overtime provisions of the federal
	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
	if:
	(1)  the person is an officer, employee, or paid
	consultant of a Texas trade association in the field of pensions; or
	(2)  the person's spouse is an officer, manager, or paid
	consultant of a Texas trade association in the field of pensions.
	SECTION 3.  Section 801.106, Government Code, is amended to
	read as follows:
	Sec. 801.106.  TERMS OF OFFICE. Members of the board hold
	office for staggered terms of six years, with the terms of two or
	three members, as appropriate, expiring on January 31 of each
	odd-numbered year.
	SECTION 4.  Subsection (a), Section 801.1061, Government
	Code, is amended to read as follows:
	(a)  It is a ground for removal from the board that a member:
	(1)  does not have at the time of taking office the
	qualifications required by Section 801.103 [or 801.104];
	(2)  does not maintain during service on the board the
	qualifications required by Section 801.103 [or 801.104];
	(3)  is ineligible for membership under Section
	801.1021;
	(4)  cannot, because of illness or disability,
	discharge the member's duties for a substantial part of the member's
	term; or
	(5)  is absent from more than half of the regularly
	scheduled board meetings that the member is eligible to attend
	during a calendar year without an excuse approved by a majority vote
	of the board.
	SECTION 5.  Section 801.107, Government Code, is amended to
	read as follows:
	Sec. 801.107.  SUNSET PROVISION. The State Pension Review
	Board is subject to Chapter 325 (Texas Sunset Act). Unless
	continued in existence as provided by that chapter, the board is
	abolished and this chapter expires September 1, 2025 [2013].
	SECTION 6.  Subchapter C, Chapter 801, Government Code, is
	amended by adding Section 801.2012 to read as follows:
	Sec. 801.2012.  NEGOTIATED RULEMAKING AND ALTERNATIVE
	DISPUTE RESOLUTION PROCEDURES. (a)  The board shall develop and
	implement a policy to encourage the use of:
	(1)  negotiated rulemaking procedures under Chapter
	2008 for the adoption of board rules; and
	(2)  appropriate alternative dispute resolution
	procedures under Chapter 2009 to assist in the resolution of
	internal and external disputes under the board's jurisdiction.
	(b)  The board's procedures relating to alternative dispute
	resolution must conform, to the extent possible, to any model
	guidelines issued by the State Office of Administrative Hearings
	for the use of alternative dispute resolution by state agencies.
	(c)  The board shall:
	(1)  coordinate the implementation of the policy
	adopted under Subsection (a);
	(2)  provide training as needed to implement the
	procedures for negotiated rulemaking or alternative dispute
	resolution; and
	(3)  collect data concerning the effectiveness of those
	procedures.
	SECTION 7.  Subchapter C, Chapter 801, Government Code, is
	amended by adding Section 801.208 to read as follows:
	Sec. 801.208.  EDUCATION AND TRAINING. As authorized by
	Section 801.113(e), the board may develop and conduct training
	sessions and other educational activities for trustees and
	administrators of public retirement systems. In exercising the
	board's authority under this section, the board may:
	(1)  conduct live training seminars on an Internet
	website at intervals the board considers necessary to keep trustees
	and administrators reasonably informed;
	(2)  maintain archives of previous seminars reasonably
	accessible to trustees and administrators on the Internet website;
	and
	(3)  use technologies and innovations the board
	considers appropriate to educate the greatest practicable number of
	trustees and administrators.
	SECTION 8.  Section 802.001, Government Code, is amended by
	adding Subdivision (1-a) to read as follows:
	(1-a)  "Defined contribution plan" means a plan
	provided by the governing body of a public retirement system that
	provides for an individual account for each participant and for
	benefits based solely on the amount contributed to the
	participant's account, and any income, expenses, gains and losses,
	and any forfeitures of accounts of other participants that may be
	allocated to the participant's account.
	SECTION 9.  Section 802.002, Government Code, is amended by
	amending Subsection (b) and adding Subsections (c) and (d) to read
	as follows:
	(b)  If a public [an exempt] retirement system or program
	that is exempt under Subsection (a) is required by law to make an
	actuarial valuation of the assets of the system or program and
	publish actuarial information about the system or program, the
	actuary making the valuation and the governing body publishing the
	information must include the information required by Section
	802.101(b).
	(c)  Notwithstanding any other law, a defined contribution
	plan is exempt from Sections 802.101, 802.1012, 802.1014, 802.103,
	802.104, and 802.202(d). This subsection may not be construed to
	exempt any plan from Section 802.105 or 802.106(h).
	(d)  Notwithstanding any other law, a retirement system that
	is organized under the Texas Local Fire Fighters Retirement Act
	(Article 6243e, Vernon's Texas Civil Statutes) for a fire
	department consisting exclusively of volunteers as defined by that
	Act is exempt from Sections 802.101, 802.1012, 802.1014, 802.102,
	802.103, 802.104, and 802.202(d). This subsection may not be
	construed to exempt any plan from Section 802.105 or 802.106(h).
	SECTION 10.  Subchapter B, Chapter 802, Government Code, is
	amended by adding Section 802.1014 to read as follows:
	Sec. 802.1014.  ACTUARIAL EXPERIENCE STUDY. (a)  In this
	section, "actuarial experience study" means a study in which
	actuarial assumptions are reviewed in light of relevant experience
	factors, important trends, and economic projections with the
	purpose of determining whether actuarial assumptions require
	adjustment.
	(b)  Except as provided by Subsection (c), a public
	retirement system that conducts an actuarial experience study shall
	submit to the board a copy of the actuarial experience study before
	the 31st day after the date of the study's adoption.
	(c)  This section does not apply to the Employees Retirement
	System of Texas, the Teacher Retirement System of Texas, the Texas
	County and District Retirement System, the Texas Municipal
	Retirement System, or the Judicial Retirement System of Texas Plan
	Two.
	SECTION 11.  Section 802.102, Government Code, is amended to
	read as follows:
	Sec. 802.102.  AUDIT. The governing body of a public
	retirement system shall have the accounts of the system audited at
	least annually by a certified public accountant in accordance with
	generally accepted auditing standards. A general audit of a
	governmental entity, as defined by Section 802.1012, does not
	satisfy the requirement of this section.
	SECTION 12.  Section 802.103, Government Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  A general audit of a governmental entity, as defined by
	Section 802.1012, does not satisfy the requirement of this section.
	SECTION 13.  Subsection (h), Section 802.106, Government
	Code, is amended to read as follows:
	(h)  A public retirement system shall submit to the board
	[State Pension Review Board] copies of the summarized information
	required by Subsections (a) and (b)[. A system shall submit a copy
	of the information required by Subsection (a)] before the 31st day
	after the date of publication or [and a copy of the information
	required by Subsection (b) before the 271st day after] the date a
	change is adopted, as appropriate.
	SECTION 14.  (a)  Subtitle A, Title 8, Government Code, is
	amended by adding Chapter 807 to read as follows:
	CHAPTER 807.  PROHIBITION ON INVESTMENT IN IRAN
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 807.001.  DEFINITIONS. In this chapter:
	(1)  "Active business operations" means all business
	operations that are not inactive business operations.
	(2)  "Board" means the State Pension Review Board.
	(3)  "Business operations" means engaging in commerce
	in any form in Iran, including by acquiring, developing,
	maintaining, owning, selling, possessing, leasing, or operating
	equipment, facilities, personnel, products, services, personal
	property, real property, or any other apparatus of business or
	commerce.
	(4)  "Company" means a sole proprietorship,
	organization, association, corporation, partnership, joint
	venture, limited partnership, limited liability partnership,
	limited liability company, or other entity or business association
	whose securities are publicly traded, including a wholly owned
	subsidiary, majority-owned subsidiary, parent company, or
	affiliate of those entities or business associations, that exists
	to make a profit.
	(5)  "Direct holdings" means, with respect to a
	company, all securities of that company held directly by a state
	governmental entity in an account or fund in which a state
	governmental entity owns all shares or interests.
	(6)  "Inactive business operations" means the mere
	continued holding or renewal of rights to property previously
	operated to generate revenue but not presently deployed to generate
	revenue.
	(7)  "Indirect holdings" means, with respect to a
	company, all securities of that company held in an account or fund,
	such as a mutual fund, managed by one or more persons not employed
	by a state governmental entity, in which the state governmental
	entity owns shares or interests together with other investors not
	subject to the provisions of this chapter. The term does not
	include money invested under a plan described by Section 401(k) or
	457 of the Internal Revenue Code of 1986.
	(8)  "Listed company" means a company listed by the
	board under Section 807.051.
	(9)  "Military equipment" means weapons, arms,
	military supplies, and equipment that readily may be used for
	military purposes, including radar systems and military-grade
	transport vehicles.
	(10)  "Scrutinized company" means a company that
	engages in scrutinized business operations described by Section
	807.002.
	(11)  "State governmental entity" means:
	(A)  the Employees Retirement System of Texas,
	including a retirement system administered by that system;
	(B)  the Teacher Retirement System of Texas;
	(C)  the Texas Municipal Retirement System;
	(D)  the Texas County and District Retirement
	System; and
	(E)  the Texas Emergency Services Retirement
	System.
	Sec. 807.002.  SCRUTINIZED BUSINESS OPERATIONS. A company
	engages in scrutinized business operations if:
	(1)  the company has business operations that involve
	contracts with or providing supplies or services to the government
	of Iran, a company in which the government of Iran has any direct or
	indirect equity share, a consortium or project commissioned by the
	government of Iran, or a company involved in a consortium or project
	commissioned by the government of Iran; or
	(2)  the company supplies military equipment to Iran.
	Sec. 807.003.  EXCEPTION. Notwithstanding any provision of
	this chapter, a company that the United States government
	affirmatively declares to be excluded from its federal sanctions
	regime relating to Iran is not subject to divestment or the
	investment prohibition under this chapter.
	Sec. 807.004.  OTHER LEGAL OBLIGATIONS. With respect to
	actions taken in compliance with this chapter, including all good
	faith determinations regarding companies as required by this
	chapter, a state governmental entity is exempt from any conflicting
	statutory or common law obligations, including any obligations with
	respect to making investments, divesting from any investment,
	preparing or maintaining any list of companies, or choosing asset
	managers, investment funds, or investments for the state
	governmental entity's securities portfolios.
	Sec. 807.005.  INDEMNIFICATION OF STATE GOVERNMENTAL
	ENTITIES, EMPLOYEES, AND OTHERS. In a cause of action based on an
	action, inaction, decision, divestment, investment, company
	communication, report, or other determination made or taken in
	connection with this chapter, the state shall, without regard to
	whether the person performed services for compensation, indemnify
	and hold harmless for actual damages, court costs, and attorney's
	fees adjudged against, and defend:
	(1)  an employee, a member of the governing body, or any
	other officer of a state governmental entity;
	(2)  a contractor of a state governmental entity;
	(3)  a former employee, a former member of the
	governing body, or any other former officer of a state governmental
	entity who was an employee or officer when the act or omission on
	which the damages are based occurred;
	(4)  a former contractor of a state governmental entity
	who was a contractor when the act or omission on which the damages
	are based occurred; and
	(5)  a state governmental entity.
	Sec. 807.006.  NO PRIVATE CAUSE OF ACTION. (a)  A person,
	including a member, retiree, or beneficiary of a retirement system
	to which this chapter applies, an association, a research firm, a
	company, or any other person may not sue or pursue a private cause
	of action against the state, a state governmental entity, an
	employee, a member of the governing body, or any other officer of a
	state governmental entity, or a contractor of a state governmental
	entity, for any claim or cause of action, including breach of
	fiduciary duty, or for violation of any constitutional, statutory,
	or regulatory requirement in connection with any action, inaction,
	decision, divestment, investment, company communication, report,
	or other determination made or taken in connection with this
	chapter.
	(b)  A person who files suit against the state, a state
	governmental entity, an employee, a member of the governing body,
	or any other officer of a state governmental entity, or a contractor
	of a state governmental entity, is liable for paying the costs and
	attorney's fees of a person sued in violation of this section.
	Sec. 807.007.  INAPPLICABILITY OF REQUIREMENTS INCONSISTENT
	WITH FIDUCIARY RESPONSIBILITIES AND RELATED DUTIES. A state
	governmental entity is not subject to a requirement of this chapter
	if the state governmental entity determines that the requirement
	would be inconsistent with its fiduciary responsibility with
	respect to the investment of entity assets or other duties imposed
	by law relating to the investment of entity assets, including the
	duty of care established under Section 67, Article XVI, Texas
	Constitution.
	Sec. 807.008.  RELIANCE ON COMPANY RESPONSE. The board and a
	state governmental entity may rely on a company's response to a
	notice or communication made under this chapter without conducting
	any further investigation, research, or inquiry.
	SUBCHAPTER B.  DUTIES REGARDING INVESTMENTS
	Sec. 807.051.  LISTED COMPANIES. (a)  The board shall
	prepare and maintain, and provide to each state governmental
	entity, a list of all scrutinized companies. In maintaining the
	list, the board may review and rely, as appropriate in the board's
	judgment, on publicly available information regarding companies
	with business operations in Iran, including information provided by
	the state, nonprofit organizations, research firms, international
	organizations, and governmental entities.
	(b)  The board shall update the list annually or more often
	as the board considers necessary, but not more often than
	quarterly, based on information from, among other sources, those
	listed in Subsection (a).
	(c)  Not later than the 30th day after the date the list of
	scrutinized companies is first provided or updated, the board shall
	file the list with the presiding officer of each house of the
	legislature and the attorney general.
	Sec. 807.052.  IDENTIFICATION OF INVESTMENT IN LISTED
	COMPANIES. Not later than the 14th day after the date a state
	governmental entity receives the list provided under Section
	807.051, the state governmental entity shall notify the board of
	the listed companies in which the state governmental entity owns
	direct holdings or indirect holdings.
	Sec. 807.053.  NOTICE TO LISTED COMPANY ENGAGED IN INACTIVE
	BUSINESS OPERATIONS. For each listed company identified under
	Section 807.052 that is engaged in only scrutinized inactive
	business operations, the state governmental entity shall send a
	written notice informing the company of this chapter and
	encouraging the company to continue to refrain from initiating
	active business operations in Iran until it is able to avoid being
	considered a listed company. The state governmental entity shall
	continue the correspondence as the entity, in its sole discretion,
	considers necessary, but is not required to initiate correspondence
	more often than semiannually.
	Sec. 807.054.  ACTIONS RELATING TO LISTED COMPANY ENGAGED IN
	ACTIVE BUSINESS OPERATIONS. (a)  For each listed company
	identified under Section 807.052 that is engaged in scrutinized
	active business operations, the state governmental entity shall
	send a written notice informing the company of its listed company
	status and warning the company that it may become subject to
	divestment by state governmental entities.
	(b)  The notice must offer the company the opportunity to
	clarify its Iran-related activities and must encourage the company,
	not later than the 90th day after the date the company receives
	notice under this section, to either cease its scrutinized business
	operations or convert the operations to inactive business
	operations in order to avoid qualifying for divestment by state
	governmental entities.
	(c)  If, during the time provided by Subsection (b), the
	company ceases scrutinized business operations, the board shall
	remove the company from the list maintained under Section 807.051
	and this chapter will no longer apply to the company unless it
	resumes scrutinized business operations.
	(d)  If, during the time provided by Subsection (b), the
	company converts its scrutinized active business operations to
	inactive business operations, the company is subject to all
	provisions of this chapter relating to inactive business
	operations.
	(e)  If, after the time provided by Subsection (b) expires,
	the company continues to have scrutinized active business
	operations, the state governmental entity shall sell, redeem,
	divest, or withdraw all publicly traded securities of the company,
	except securities described by Section 807.056, according to the
	schedule provided by Section 807.055.
	Sec. 807.055.  DIVESTMENT OF ASSETS. (a)  A state
	governmental entity required to sell, redeem, divest, or withdraw
	all publicly traded securities of a listed company shall comply
	with the following schedule:
	(1)  at least 50 percent of those assets must be removed
	from the state governmental entity's assets under management not
	later than the 270th day after the date the company receives notice
	under Section 807.054 or Subsection (b) unless the state
	governmental entity determines, based on a good faith exercise of
	its fiduciary discretion and subject to Subdivision (2), that a
	later date is more prudent; and
	(2)  100 percent of those assets must be removed from
	the state governmental entity's assets under management not later
	than the 450th day after the date the company receives notice under
	Section 807.054 or Subsection (b).
	(b)  If a company that ceased scrutinized active business
	operations after receiving notice under Section 807.054 resumes
	scrutinized active business operations, the state governmental
	entity shall send a written notice to the company informing it that
	the state governmental entity will sell, redeem, divest, or
	withdraw all publicly traded securities of the scrutinized company
	according to the schedule in Subsection (a).
	(c)  Except as provided by Subsection (a), a state
	governmental entity may delay the schedule for divestment under
	that subsection only to the extent that the state governmental
	entity determines, in the state governmental entity's good faith
	judgment, that divestment from listed companies will likely result
	in a loss in value or a benchmark deviation described by Section
	807.057(a). If a state governmental entity delays the schedule for
	divestment, the state governmental entity shall submit a report to
	the presiding officer of each house of the legislature and the
	attorney general stating the reasons and justification for the
	state governmental entity's delay in divestment from listed
	companies. The report must include documentation supporting its
	determination that the divestment would result in a loss in value or
	benchmark deviation described by Section 807.057(a), including
	objective numerical estimates. The state governmental entity shall
	update the report every six months.
	Sec. 807.056.  INVESTMENTS EXEMPTED FROM DIVESTMENT. A
	state governmental entity is not required to divest from any
	indirect holdings in actively or passively managed investment funds
	or private equity funds. The state governmental entity shall
	submit letters to the managers of investment funds containing
	listed companies requesting that they consider removing those
	companies from the fund or create a similar actively or passively
	managed fund with indirect holdings devoid of listed companies. If
	the manager creates a similar fund with substantially the same
	management fees and same level of investment risk and anticipated
	return, the state governmental entity may replace all applicable
	investments with investments in the similar fund in a time frame
	consistent with prudent fiduciary standards.
	Sec. 807.057.  AUTHORIZED INVESTMENT IN LISTED COMPANIES.
	(a)  A state governmental entity may cease divesting from or may
	reinvest in one or more listed companies if clear and convincing
	evidence shows that:
	(1)  the state governmental entity has suffered or will
	suffer a loss in the hypothetical value of all assets under
	management by the state governmental entity as a result of having to
	divest from listed companies under this chapter; or
	(2)  an individual portfolio that uses a
	benchmark-aware strategy would be subject to an aggregate expected
	deviation from its benchmark as a result of having to divest from
	listed companies under this chapter.
	(b)  A state governmental entity may cease divesting from or
	may reinvest in a listed company as provided by this section only to
	the extent necessary to ensure that the state governmental entity
	does not suffer a loss in value or deviate from its benchmark as
	described by Subsection (a).
	(c)  Before a state governmental entity may cease divesting
	from or may reinvest in a listed company under this section, the
	state governmental entity must provide a written report to the
	presiding officer of each house of the legislature and the attorney
	general setting forth the reason and justification, supported by
	clear and convincing evidence, for its decisions to cease
	divestment, to reinvest, or to remain invested in a listed company.
	(d)  The state governmental entity shall update the report
	required by Subsection (c) semiannually, as applicable.
	(e)  This section does not apply to reinvestment in a company
	that is no longer a listed company.
	Sec. 807.058.  PROHIBITED INVESTMENTS. Except as provided
	by Sections 807.003 and 807.057, a state governmental entity may
	not acquire securities of a listed company.
	SUBCHAPTER C.  EXPIRATION; REPORT; ENFORCEMENT
	Sec. 807.101.  EXPIRATION OF CHAPTER. This chapter expires
	on the earlier of:
	(1)  the date the United States revokes its sanctions
	against the government of Iran; or
	(2)  the date the United States Congress or the
	president of the United States, through legislation or executive
	order, declares that mandatory divestment of the type provided for
	in this chapter interferes with the conduct of United States
	foreign policy.
	Sec. 807.102.  REPORT. Not later than December 31 of each
	year, each state governmental entity shall file a publicly
	available report with the presiding officer of each house of the
	legislature and the attorney general that:
	(1)  identifies all securities sold, redeemed,
	divested, or withdrawn in compliance with Section 807.055;
	(2)  identifies all prohibited investments under
	Section 807.058; and
	(3)  summarizes any changes made under Section 807.056.
	Sec. 807.103.  ENFORCEMENT. The attorney general may bring
	any action necessary to enforce this chapter.
	(b)  Not later than January 1, 2014, the State Pension Review
	Board shall prepare and provide to each state governmental entity,
	as defined by Section 807.001, Government Code, as added by this
	Act, the list of scrutinized companies required by Section 807.051,
	Government Code, as added by this Act.
	(c)  Notwithstanding any other provision of this Act, this
	section takes effect January 1, 2014.
	SECTION 15.  (a)  Sections 22 and 22A, Texas Local Fire
	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
	Statutes), are amended to read as follows:
	Sec. 22.  APPEALS FROM LOCAL BOARD DECISIONS. (a)  A person
	aggrieved by a decision of a board of trustees relating to
	eligibility for or amount of benefits payable by a retirement
	system may appeal the decision to the State Office of
	Administrative Hearings [fire fighters' pension commissioner].
	(b)  An appeal under this section is begun by delivering a
	notice of appeal with the chairman, secretary, or
	secretary-treasurer of the board of trustees that made the
	decision. The notice must be delivered not later than the 20th day
	after the date of the decision and contain a brief description of
	the reasons or grounds for appeal. The aggrieved person must file a
	copy of the notice with the State Pension Review Board [fire
	fighters' pension commissioner].
	(b-1)  As soon as practicable after receiving a notice of
	appeal under Subsection (b) of this section the State Pension
	Review Board shall refer the matter to the State Office of
	Administrative Hearings by submitting notice of the appeal to that
	office.
	(c)  An appeal under this section [to the fire fighters'
	pension commissioner] is held in Austin and is a contested case
	under Chapter 2001, Government Code, [the Administrative Procedure
	and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
	Statutes)] conducted as a de novo hearing by the State Office of
	Administrative Hearings.
	Sec. 22A.  ATTORNEY. A board of trustees may employ an
	attorney to represent the board in one or all legal matters,
	including a hearing on appeal to the State Office of Administrative
	Hearings [fire fighters' pension commissioner]. At the request of
	a board of trustees, the city attorney of the municipality of which
	the board is a part shall, without additional compensation,
	represent the board in one or all legal matters.
	(b)  Subsection (a) of this section takes effect only on the
	failure of legislation by the 83rd Legislature, Regular Session,
	2013, providing for the abolition of the office of the fire
	fighters' pension commissioner and the transfer and disposition of
	its functions relating to the Texas Emergency Services Retirement
	System and the Texas local firefighters retirement systems to
	become law.
	SECTION 16.  Subsection (h), Section 28, Texas Local Fire
	Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
	Statutes), is amended to read as follows:
	(h)  A retirement system established under this Act is exempt
	from Subchapter C, Chapter 802, Government Code, except Sections
	802.202, 802.205, and 802.207.
	SECTION 17.  Section 801.104 and Subsection (c), Section
	802.103, Government Code, are repealed.
	SECTION 18.  (a)  The change in law made by this Act to
	Section 801.1021, Government Code, regarding prohibitions on
	members of the State Pension Review Board does not affect the
	entitlement of a member serving on the board immediately before
	September 1, 2013, to continue to serve and function as a member of
	the board for the remainder of the member's term. The change in law
	made to that section applies only to a member appointed on or after
	September 1, 2013.
	(b)  Section 802.1014, Government Code, as added by this Act,
	applies only to an actuarial experience study conducted on or after
	the effective date of this Act. An actuarial experience study
	conducted before the effective date of this Act is governed by the
	law in effect immediately before that date, and that law is
	continued in effect for that purpose.
	(c)  Section 802.102, Government Code, as amended by this
	Act, is intended to clarify existing law with respect to the audit
	required by that section.
	(d)  Subsection (d), Section 802.103, Government Code, as
	added by this Act, is intended to clarify existing law with respect
	to the annual financial report required by Section 802.103,
	Government Code.
	(e)  Subsection (h), Section 802.106, Government Code, as
	amended by this Act, applies only to a change in statutes or
	ordinances governing a retirement system described by Subsection
	(b), Section 802.106, Government Code, that is adopted on or after
	the effective date of this Act. A change in statutes or ordinances
	that is adopted before the effective date of this Act is governed by
	the law in effect immediately before that date, and that law is
	continued in effect for that purpose.
	SECTION 19.  (a)  A person who is serving as a member of the
	State Pension Review Board appointed under Section 801.103,
	Government Code, on the effective date of this Act continues to
	serve until the person's term expires.
	(b)  The governor shall make appointments to fill vacancies
	on the State Pension Review Board so that board members' terms of
	office expire in compliance with Section 801.106, Government Code,
	as amended by this Act, and, if necessary for compliance with that
	section, a person may be appointed to a term of office that expires
	in less than six years.
	(c)  The term of a person who is serving as a member of the
	State Pension Review Board appointed under Section 801.104,
	Government Code, expires on the effective date of this Act.
	SECTION 20.  Contingent on the failure of legislation by the
	83rd Legislature, Regular Session, 2013, providing for the
	abolition of the office of the fire fighters' pension commissioner
	and the transfer and disposition of its functions relating to the
	Texas Emergency Services Retirement System and the Texas local
	firefighters retirement systems to become law, the State Pension
	Review Board shall provide any necessary assistance, including
	educational training, technical assistance, and other information
	to retirement systems organized under the Texas Local Fire Fighters
	Retirement Act (Article 6243e, Vernon's Texas Civil Statutes).
	SECTION 21.  This Act takes effect September 1, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 200 passed the Senate on
	April 2, 2013, by the following vote:  Yeas 31, Nays 0;
	May 7, 2013, Senate refused to concur in House amendments and
	requested appointment of Conference Committee; May 8, 2013, House
	granted request of the Senate; May 24, 2013, Senate adopted
	Conference Committee Report by the following vote:  Yeas 31,
	Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 200 passed the House, with
	amendments, on April 26, 2013, by the following vote:  Yeas 138,
	Nays 0, two present not voting; May 8, 2013, House granted request
	of the Senate for appointment of Conference Committee;
	May 24, 2013, House adopted Conference Committee Report by the
	following vote:  Yeas 145, Nays 0, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor