1-1  By:  Turner of Harris (Senate Sponsor - Whitmire)     H.B. No. 1810
    1-2        (In the Senate - Received from the House May 8, 1995;
    1-3  May 9, 1995, read first time and referred to Committee on
    1-4  Intergovernmental Relations; May 17, 1995, reported favorably, as
    1-5  amended, by the following vote:  Yeas 10, Nays 0; May 17, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE AMENDMENT NO. 1                             By:  Whitmire
    1-8  Amend HB 1810 as follows:
    1-9  1.  On page 3, Line 2, insert the following after "SECTION 3.":
   1-10  "Section 4, Chapter 76, Acts of the 50th Legislature, 1947 (Article
   1-11  6243g-1, Vernon's Texas Civil Statutes), is amended by adding
   1-12  Subsection (k) to read as follows:
   1-13        (k)(1)  If the Pension Board has not purchased insurance as
   1-14  described by Subsection (j) of this section for any reason or if
   1-15  the insurance is insufficient or otherwise inadequate, the Board
   1-16  shall, except as provided by Subdivision (2) of this subsection,
   1-17  indemnify a Board member or officer or employee of the Board for
   1-18  liability imposed as damages because of an alleged act, error, or
   1-19  omission committed in the individual's capacity as a Board member
   1-20  or officer or employee of the Board and for reasonable costs and
   1-21  expenses, including attorney's fees, incurred in the individual's
   1-22  defense of a claim of an alleged act, error, or omission.
   1-23        (2)  The Pension Board may not indemnify a Board member or
   1-24  officer or employee of the Board for liability imposed or expenses
   1-25  incurred because of the individual's dishonesty, fraudulent breach
   1-26  of trust, lack of good faith, intentional fraud or deception,
   1-27  intentional failure to act prudently, or gross negligence.
   1-28        (3)  Indemnification under this subsection applies to acts,
   1-29  errors, or omissions by Board members, officers or employees of the
   1-30  Board, former Board members, and former officers or employees of
   1-31  the Board that occur or occurred on or after July 1, 1993."
   1-32                         A BILL TO BE ENTITLED
   1-33                                AN ACT
   1-34  relating to membership on the boards of trustees of retirement
   1-35  systems for police officers in certain municipalities.
   1-36        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-37        SECTION 1.  Section 4(b), Chapter 76, Acts of the 50th
   1-38  Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
   1-39  is amended to read as follows:
   1-40        (b)  The Pension Board shall be composed of seven (7) members
   1-41  as follows:
   1-42              (1)  The administrative head of the city, or his
   1-43  authorized representative.
   1-44              (2)  Three (3) employees of the police department
   1-45  having membership in the Pension System and elected by the members
   1-46  of such police department and system.
   1-47              (3)  Two (2) retired members receiving pensions from
   1-48  the Pension System <legally qualified taxpaying voters of such
   1-49  city, residents thereof for the preceding three (3) years>, to be
   1-50  chosen by the elected members of the Pension Board and confirmed by
   1-51  the Board, being neither employees nor officers of such city.
   1-52              (4)  The City Treasurer of the city, or the person
   1-53  discharging the duties of the City Treasurer.
   1-54        The terms of office of the elected members of the Pension
   1-55  Board shall be three (3) years, provided, however, that at the
   1-56  first election after the effective date of this Act, one such
   1-57  elected member shall be elected to a term of one year, one such
   1-58  elected member shall be elected to a term of two (2) years; and one
   1-59  such elected member shall be elected to a term of three (3) years.
   1-60  Thereafter, at an annual election called by the Chief of Police,
   1-61  and held during the month of December, one member shall be elected
   1-62  to a three-year term.  Whenever a vacancy occurs among the three
   1-63  (3) elected members of the Pension Board, the Pension Board shall
   1-64  appoint a Pension Fund member to serve the balance of the calendar
   1-65  year and until the next regularly scheduled election of Board
   1-66  members.  At that time, the membership of the police department
   1-67  shall elect a Pension Fund member to serve for the remainder of the
   1-68  term.
    2-1        The term of office of appointed members of the Board shall be
    2-2  two (2) years, with such appointed members being nominated by the
    2-3  elected members of the Board and confirmed by the Board, and having
    2-4  terms commencing when the appointed members are qualified.
    2-5        The term of office of the Board members statutorily provided
    2-6  for, shall be and continue so long as such member holds the
    2-7  position defined in this Act for automatic members of such Board.
    2-8        SECTION 2.  The change in law made by this Act in the
    2-9  qualifications for membership on the boards of trustees of
   2-10  retirement systems for police officers in certain municipalities
   2-11  applies only to members appointed for terms that begin on or after
   2-12  the effective date of this Act.  Qualifications for membership on a
   2-13  board of trustees for a term that began before the effective date
   2-14  of this Act are those provided immediately before the effective
   2-15  date of this Act, and the former law is continued in effect for
   2-16  that purpose.
   2-17        SECTION 3.  This Act takes effect September 1, 1995.
   2-18        SECTION 4.  The importance of this legislation and the
   2-19  crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended.
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