By Yarbrough                                          H.B. No. 1173
         76R8664 GJH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a firefighters' relief and retirement fund in certain
 1-3     municipalities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 1(11), Article 6243e.2(1), Revised
 1-6     Statutes, is amended to read as follows:
 1-7                 (11)  "Firefighter" means a full-time, fully paid,
 1-8     active, classified member of a regularly organized fire department
 1-9     of an incorporated municipality with a fund established under this
1-10     article, including a member who has made a DROP election, but is
1-11     otherwise described in this definition.
1-12           SECTION 2.  Section 2(l), Article 6243e.2(1), Revised
1-13     Statutes, is amended to read as follows:
1-14           (l)  The board shall hold regular monthly meetings at a time
1-15     and place as the board by resolution designates and may hold
1-16     special meetings on call of the chair as the chair determines is
1-17     necessary, keep accurate minutes of board meetings and records of
1-18     board proceedings, keep separate from all other municipal funds all
1-19     money for the use and benefit of the fund, and keep a record of
1-20     claims, receipts, and disbursements.  A disbursement from the fund
1-21     may be made in accordance with procedures established by the board.
1-22     The municipality shall allow municipal employees who are board
1-23     trustees  to promptly attend all board and committee meetings.
1-24     Each board trustee who is an employee of the municipality shall
 2-1     provide the municipality with reasonable notice of the trustee's
 2-2     required attendance at regularly scheduled board and committee
 2-3     meetings.  The municipality shall allow board trustees the time
 2-4     required to travel to and attend educational workshops and
 2-5     legislative hearings and meetings regarding proposed amendments to
 2-6     this article if attendance is consistent with a board trustee's
 2-7     duty to the board.  The municipality may not use the trustee's
 2-8     attendance or travel related to attendance described by this
 2-9     subsection to reduce or withhold the wages that the trustee would
2-10     otherwise earn.  The board may reimburse from the fund the
2-11     municipality for costs incurred by the municipality for allowing a
2-12     trustee's attendance under this subsection.
2-13           SECTION 3.  Section 3, Article 6243e.2(1), Revised Statutes,
2-14     is amended by adding Subsections (h) and (i) to read as follows:
2-15           (h)  The board may purchase with board funds a life insurance
2-16     policy from an insurer licensed to do business in this state to
2-17     cover the amount of lump-sum death benefits that may become payable
2-18     to a member's eligible survivor or estate.  The amount payable
2-19     under a policy under this subsection on the death of one member may
2-20     not exceed the amount of the lump-sum death benefits payable under
2-21     this article.  The board shall be the policyholder of any life
2-22     insurance purchased under this subsection and shall use any
2-23     proceeds received from the insurer to satisfy any lump-sum death
2-24     benefits owed under this article.
2-25           (i)  The board may pay with fund assets the reasonable
2-26     expenses incurred in providing annual or semiannual meetings of
2-27     retired members, spouses of retired members, and eligible survivors
 3-1     that facilitate communication regarding benefits paid under this
 3-2     article if the expenses do not materially affect the total assets
 3-3     of the fund.  Reasonable expenses may include the purchase of items
 3-4     or services necessary to promote and facilitate these meetings.
 3-5           SECTION 4.  Section 4, Article 6243e.2(1), Revised Statutes,
 3-6     is amended to read as follows:
 3-7           Sec. 4.  SERVICE PENSION BENEFITS.  (a)  A member with at
 3-8     least 20 years of participation who terminates active service for
 3-9     any reason other than death is entitled to receive a service
3-10     pension provided by this section.
3-11           (b)  A member who terminates active service on or after
3-12     November 1, 1997, and who has completed at least 20 years of
3-13     participation in the fund on the effective date of termination of
3-14     service is entitled to a monthly service pension, beginning on the
3-15     effective date of termination of active service, in an amount equal
3-16     to 50 percent of the member's average monthly salary, plus three
3-17     percent of the member's average monthly salary for each year of
3-18     participation in excess of 20 years, but not in excess of 30 years
3-19     of participation, for a maximum total benefit of 80 percent of the
3-20     member's average monthly salary.
3-21           (c)  A member who terminated active service before November
3-22     1, 1997, and who had completed at least 20 years of participation
3-23     on the effective date of termination of service is entitled on
3-24     retirement to receive a monthly service pension in the amount
3-25     provided under the law in effect on the effective date of that
3-26     retirement, unless a subsequent benefit increase is expressly made
3-27     applicable to that member.
 4-1           (d)  [A member with a service or disability pension, other
 4-2     than a deferred retiree or an active member who has elected the
 4-3     DROP under Section 5(b) of this article, who began receiving
 4-4     benefits from the fund before November 1, 1997, or a member's
 4-5     beneficiary who began receiving benefits from the fund before
 4-6     November 1, 1997, shall be paid a one-time additional benefit of
 4-7     $5,000 from the fund, payable in a lump sum as soon as
 4-8     administratively practicable after November 1, 1997.]
 4-9           [(e)]  The total monthly benefit payable to a retired or
4-10     disabled member, other than a deferred retiree or active member who
4-11     has elected the DROP under Section 5(b) of this article, or each
4-12     eligible survivor of a deceased member, shall be increased by $100,
4-13     beginning with the monthly payment made for July 1999.  That
4-14     additional benefit may not be increased under Section 11(c) of this
4-15     article.
4-16           [(f)  The benefit under Subsection (d) of this section shall
4-17     be paid to the member or to the eligible spouse of a deceased
4-18     member.  If the member is deceased and there is no eligible spouse,
4-19     the benefit shall be divided equally among and paid  to each
4-20     eligible child of the member, or, if there is no eligible child,
4-21     the benefit shall be divided among the eligible parents of the
4-22     member.]
4-23           SECTION 5.  Section 5, Article 6243e.2(1), Revised Statutes,
4-24     is amended to read as follows:
4-25           Sec. 5.  DEFERRED RETIREMENT OPTION PLAN.  (a)  A member who
4-26     is eligible to receive a service pension under Section 4 of this
4-27     article and who remains in active service may elect to participate
 5-1     in the deferred retirement option plan provided by this section.
 5-2     On subsequently terminating active service, a member who elected
 5-3     the DROP may apply for a monthly service pension under Section 4 of
 5-4     this article, except that the effective date of the member's
 5-5     election to participate in the DROP will be considered the member's
 5-6     retirement date for determining the amount of the member's monthly
 5-7     service pension.  The member may also apply for any DROP benefit
 5-8     provided under this section on terminating active service.  Except
 5-9     as provided by Subsection (l) [(n)] of this section, an election to
5-10     participate in the DROP, once approved by the board, is
5-11     irrevocable.
5-12           (b)  A member may elect to participate in the DROP by
5-13     complying with the election process established by the board.  The
5-14     member's election may be made at any time beginning on the date the
5-15     member has completed 20 years of participation in the fund and is
5-16     otherwise eligible for a service pension under Section 4 of this
5-17     article.  The election becomes effective on the first day of the
5-18     month following the month in which the board approves the member's
5-19     DROP election.  Beginning on the effective date of the member's
5-20     DROP election, amounts equal to the deductions made from the
5-21     member's salary under Section 13(c) of this article shall be
5-22     credited to the member's DROP account.  If a DROP participant
5-23     remains in active service after the seventh [fifth] anniversary of
5-24     the effective date of the member's DROP election, subsequent
5-25     deductions from the member's salary under Section 13(c) of this
5-26     article may not be credited to the member's DROP account and may
5-27     not otherwise increase any benefit payable from the fund for the
 6-1     member's service.
 6-2           (c)  Beginning in the month a member's DROP election becomes
 6-3     effective, an amount equal to the monthly service pension the
 6-4     member would have received under Section 4 of this article and
 6-5     Section 11(c) of this article, if applicable, had the member
 6-6     terminated active service on the effective date of the member's
 6-7     DROP election shall be credited to a DROP account maintained for
 6-8     the member.  That monthly credit to the member's DROP account shall
 6-9     continue until the earlier of the date the member terminates active
6-10     service or the seventh [fifth] anniversary of the effective date of
6-11     the member's DROP election.
6-12           (d)  A member's DROP account shall be credited with earnings
6-13     or losses at an annual rate equal to the average annual return
6-14     earned by the fund over the five years preceding, but not
6-15     including, the year during which the credit is given.  Those
6-16     earnings or losses shall be computed and credited at a time and in
6-17     a manner determined by the board, except that earnings or losses
6-18     shall be credited not less frequently than once in each 13-month
6-19     period and shall take into account partial years of participation
6-20     in the DROP. If the member has not terminated active service, the
6-21     member's DROP account may not be credited with earnings or losses
6-22     after the seventh [fifth] anniversary of the effective date of the
6-23     member's DROP election.
6-24           (e)  A member who terminates active service after
6-25     participating in the DROP is entitled to receive, in addition to
6-26     the member's service pension under Section 4 of this article, a
6-27     benefit equal to the balance of the member's DROP account.  Unless
 7-1     the member elects to receive [installment or] partial distributions
 7-2     in accordance with Subsection (f) [or (h)] of this section, the
 7-3     balance of a member's DROP account shall be paid to the member in a
 7-4     single lump-sum payment as soon as is administratively practicable
 7-5     after the member's termination of active service.
 7-6           (f)  [In lieu of a single lump-sum payment, a member may
 7-7     elect to receive the balance of the member's DROP account in three
 7-8     substantially equal installments.  A member electing the
 7-9     installment form of distribution is entitled to receive the first
7-10     installment within a reasonable period after terminating active
7-11     service.  The second and third installments shall be paid to the
7-12     member on the first and second anniversaries of the date of the
7-13     first installment.  A member electing to receive the member's DROP
7-14     account balance in installments may convert that election at any
7-15     time after receipt of the first installment to an election to
7-16     receive the remainder of the member's DROP account balance in a
7-17     lump-sum payment.  If a member elects to receive installments, the
7-18     member's DROP account may not be credited with earnings or losses
7-19     occurring after the member leaves active service.  The DROP account
7-20     balance of a member who elects to receive the member's DROP account
7-21     balance in installments may not be credited with interest after the
7-22     date of payment of the first installment.]
7-23           [(g)  The board may adopt by a majority vote the provisions
7-24     of Subsections (h) and (i) of this section.]
7-25           [(h)]  In lieu of a single lump-sum payment, a member may
7-26     elect to receive partial payments from the member's DROP account
7-27     for each calendar year, in an amount elected by the member.  The
 8-1     board may establish procedures concerning partial payments,
 8-2     including limitations on timing and frequency of those payments.  A
 8-3     member who elects partial payments may, at any time, elect to
 8-4     receive the member's entire remaining DROP account balance in a
 8-5     single lump-sum payment.
 8-6           (g) [(i)]  If a member elects partial payments, for periods
 8-7     after a member terminates active service and before the member's
 8-8     DROP account is completely distributed, the member's DROP account
 8-9     shall be credited with earnings or losses of the fund as computed
8-10     under Subsection (d) of this section and reduced by an
8-11     administrative fee of one percent of the account balance each year,
8-12     determined before adjustment for earnings or losses for the year.
8-13           (h) [(j)]  An election by a member concerning single lump-sum
8-14     [installment] or partial payments as provided by Subsection (e) or
8-15     (f) [Subsections (f) (i)] of this section must satisfy the
8-16     requirements of Section 401(a)(9) of the code.  All distributions
8-17     and changes in form of distribution must be made in a manner and at
8-18     a time that comply with that provision of the code.
8-19           (i) [(k)]  A member who elects to participate in the DROP is
8-20     considered to have terminated active service on the effective date
8-21     of the member's DROP election for purposes of computing and
8-22     providing service pension benefits under Section 4 of this article
8-23     and for purposes of computing and providing death benefits under
8-24     Section 7 of this article.  A salary earned or additional years of
8-25     participation completed after the member's DROP election becomes
8-26     effective may not be considered in the computation of retirement,
8-27     disability, or death benefits unless a DROP revocation is made as
 9-1     prescribed by Subsection (l) [(n)] of this section.
 9-2           (j) [(l)]  If a DROP participant dies before complete
 9-3     distribution of the member's DROP account has been made, the
 9-4     member's DROP account balance shall be distributed to the member's
 9-5     eligible beneficiaries, determined as follows:
 9-6                 (1)  if the member is survived by a spouse [person] who
 9-7     was the member's spouse on the member's last day of active service
 9-8     and one or more eligible children, one-half of the member's DROP
 9-9     account balance shall be paid to that eligible spouse, and the
9-10     remaining one-half shall be divided equally among the member's
9-11     eligible children;
9-12                 (2)  if the member is survived by a spouse described by
9-13     Subdivision (1) of this subsection, but not by an eligible child,
9-14     the member's entire DROP account balance shall be paid to the
9-15     surviving spouse;
9-16                 (3)  if the member is survived by one or more eligible
9-17     children, but not by a spouse described by Subdivision (1) of this
9-18     subsection, the member's DROP account balance shall be divided
9-19     equally among the eligible children;
9-20                 (4)  if the member is not survived by a spouse
9-21     described by Subdivision (1) of this subsection or an eligible
9-22     child, the member's DROP account balance shall be divided equally
9-23     among the member's eligible parents;
9-24                 (5)  if the member is not survived by a spouse
9-25     described by Subdivision (1) of this subsection, an eligible child,
9-26     or an eligible parent, the member's DROP account balance shall be
9-27     distributed in accordance with the member's beneficiary designation
 10-1    filed with the board or, if the member has failed to file a valid
 10-2    beneficiary designation, to the member's estate; and
 10-3                (6)  if a member's spouse described by Subdivision (1)
 10-4    of this subsection was not married to the member on the date the
 10-5    member's DROP election became effective, the spouse shall receive a
 10-6    reduced benefit equal to the benefit otherwise payable to the
 10-7    surviving spouse under this subsection, multiplied by the
 10-8    percentage of the period between the member's DROP election and the
 10-9    date the member left active service during which the spouse and the
10-10    member were married, and the amount by which the spouse's benefit
10-11    is reduced shall be divided among any other eligible survivors as
10-12    if the member did not have an eligible spouse.
10-13          (k) [(m)]  An eligible beneficiary's share of a deceased
10-14    member's DROP account shall be distributed as soon as
10-15    administratively practicable after the member's death in the form
10-16    of a single lump-sum payment.  All distributions to beneficiaries
10-17    under this subsection must be made in a manner and at a time that
10-18    comply with Section 401(a)(9) of the code.
10-19          (l) [(n)]  Except as otherwise provided by this subsection, a
10-20    member who participates in the DROP is ineligible for disability
10-21    benefits described by Section 6 of this article, and the member's
10-22    survivors are ineligible to receive enhanced death benefits
10-23    described by Section 7(c) of this article.  A DROP participant who
10-24    is determined under Section 6(c) of this article to be incapable of
10-25    performing any substantial gainful employment because of an on-duty
10-26    disability may retroactively revoke the member's DROP election if
10-27    the revocation occurs before the member receives a distribution
 11-1    from the member's DROP account or retirement benefits.  If a DROP
 11-2    participant dies in the course of the performance of the member's
 11-3    duty or dies as a result of an on-duty disability described by
 11-4    Section 6(c) of this article, the DROP participant's eligible
 11-5    survivors under Section 7 of this article and the member's eligible
 11-6    DROP beneficiaries under Subsection (j) [(l)] of this section may,
 11-7    by unanimous agreement, retroactively revoke the member's DROP
 11-8    election if the revocation occurs before receipt of a distribution
 11-9    from the member's DROP account, service pension benefits under
11-10    Section 4 of this article, or death benefits under Section 7 of
11-11    this article.  For purposes of this subsection, an on-duty
11-12    disability must have occurred after the effective date of a
11-13    member's election to participate in the DROP. If a DROP election
11-14    revocation is made as prescribed by this subsection, the member's
11-15    DROP account is not distributed, and the member or the member's
11-16    beneficiary, as applicable, is entitled to benefits under this
11-17    article as if a DROP election had not been made.
11-18          (m) [(o)]  A retired member who previously participated in
11-19    the DROP and who returns to active service is subject to the terms
11-20    of this section in effect at the time of the member's return to
11-21    active service.
11-22          (n) [(p)]  After August 31, 2000, the board may set a date
11-23    after which additional members will not be allowed to elect to
11-24    participate in the DROP. A member whose election to participate in
11-25    the DROP becomes effective before a deadline established by the
11-26    board is entitled to continue participating in the DROP.
11-27          (o)  A member who has made a DROP election is not  classified
 12-1    as retired, eligible to be paid, or eligible to accrue or to
 12-2    receive any benefit that is accrued or received by a member who has
 12-3    terminated active service or by the eligible survivors of deceased
 12-4    members unless the member who has made the DROP election has
 12-5    terminated active service.
 12-6          SECTION 6.  Section 6(d), Article 6243e.2(1), Revised
 12-7    Statutes, is amended to read as follows:
 12-8          (d)  If a full-time active member with at least six years of
 12-9    service becomes disabled or dies from heart or lung disease or
12-10    cancer, and the member successfully passed a physical examination
12-11    before the claimed disability or death or on beginning employment
12-12    as a firefighter, and the examination failed to reveal any evidence
12-13    of the heart or lung disease or cancer, that condition will be
12-14    presumed to have caused an on-duty disability for purposes of
12-15    determining eligibility for disability benefits under this section,
12-16    and the amount of the disability benefit is presumed to constitute,
12-17    unless the presumption is rebutted, [constitutes] the pension
12-18    amount that shall be used to determine  the death benefit payable
12-19    with respect to that member.  The on-duty disability presumption
12-20    may be rebutted only by clear and convincing evidence.  Another
12-21    statutory presumption regarding the  cause of illnesses or
12-22    conditions does not affect any benefit payable under this article.
12-23          SECTION 7.  Section 7(e), Article 6243e.2(1), Revised
12-24    Statutes, is amended to read as follows:
12-25          (e)  In addition to the monthly death benefit provided under
12-26    Subsection (a) of this section, if an active member or a member
12-27    receiving a service pension under Section 4 of this article or a
 13-1    disability pension under Section 6 of this article dies on or after
 13-2    July 1, 1998, the member's eligible survivors are entitled to a
 13-3    one-time $5,000 death benefit, payable as a lump sum as follows:
 13-4                (1)  if the member is survived by an eligible spouse,
 13-5    the eligible spouse is entitled to receive $5,000;
 13-6                (2)  if the member is not survived by an eligible
 13-7    spouse, the member's eligible children are entitled to receive
 13-8    $5,000, divided equally among those children;  [or]
 13-9                (3)  if the member is not survived by an eligible
13-10    spouse or an eligible child, the $5,000 death benefit shall be
13-11    divided equally among the eligible parents of the deceased member;
13-12    or
13-13                (4)  if the member is not survived by an eligible
13-14    spouse, an eligible child, or an eligible parent, the $5,000 death
13-15    benefit shall be paid to the deceased member's estate.
13-16          SECTION 8.  Section 10, Article 6243e.2(1), Revised Statutes,
13-17    is amended to read as follows:
13-18          Sec. 10.  NONSTATUTORY BENEFIT INCREASES.  The benefits
13-19    provided by this article may be increased if:
13-20                (1)  [the increase is first approved by] an actuary
13-21    selected by the board who, if an individual, is a Fellow of the
13-22    Society of Actuaries, a Fellow of the Conference of Actuaries in
13-23    Public Practice, or a member of the American Academy of Actuaries
13-24    determines that the increase cannot reasonably be viewed as posing
13-25    a material risk of jeopardizing the fund's ability to pay any
13-26    existing benefit;
13-27                (2)  a majority of the participating members of the
 14-1    fund vote for the increase by a secret ballot;
 14-2                (3)  the increase does not deprive a member, without
 14-3    the member's written consent, of a right to receive benefits that
 14-4    have already become fully vested and matured in a member; and
 14-5                (4)  the State Pension Review Board approves the
 14-6    determination by the actuary selected by the board that the
 14-7    increase cannot reasonably be  viewed as posing a material risk of
 14-8    jeopardizing the fund's ability to pay any existing benefit
 14-9    [increase, which approval may not be unreasonably withheld].
14-10          SECTION 9.  Article 6243e.2(1), Revised Statutes, is amended
14-11    by adding Sections 10A and 10B to read as follows:
14-12          Sec. 10A.  ANNUAL SUPPLEMENTAL BENEFIT FOR CERTAIN RETIRED
14-13    MEMBERS AND ELIGIBLE SURVIVORS.  (a)  The board shall pay
14-14    supplemental benefits under this section to retired members, not
14-15    including deferred retirees, and to eligible survivors, not
14-16    including survivors of deferred retirees, if the requirements of
14-17    Subsection (b) of this section are met. The board shall pay the
14-18    supplemental benefits in January following a fiscal year of the
14-19    fund in which the requirements of Subsection (b) of this section
14-20    are met.
14-21          (b)  The board shall pay supplemental benefits under this
14-22    section if the fund actuary determines that, as of the end of any
14-23    fund fiscal year:
14-24                (1)  the value of the fund's assets exceeds the amount
14-25    of the fund's accrued liability;
14-26                (2)  the fund's gross rate of return on investments for
14-27    that fiscal year exceeds 9.25 percent; and
 15-1                (3)  payment of supplemental benefits will not result
 15-2    in an increase of the municipality's contribution rate.
 15-3          (c)  The board shall adopt rules and procedures to govern the
 15-4    payment of benefits under this section and shall establish a
 15-5    minimum income level consistent with the national poverty level set
 15-6    by the United States Department of Health and Human Services.
 15-7          (d)  The board shall determine an aggregate supplemental
 15-8    benefit amount that may not exceed the lesser of:
 15-9                (1)  the amount by which the value of fund assets
15-10    exceeds the amount of accrued liability as determined under
15-11    Subsection (b)(1) of this section; or
15-12                (2)  $4 million.
15-13          (e)  Based on the aggregate supplemental benefit amount
15-14    determined under Subsection (d) of this section,  the board shall
15-15    determine the amount of a lump-sum payment for each retired member
15-16    or eligible survivor.
15-17          (f)  In determining the lump-sum payment amount, the total
15-18    number of years since the commencement date of each retired
15-19    member's or eligible survivor's annual retirement or survivor
15-20    benefit shall be divided by the total number of years since the
15-21    commencement date of all retired members' and eligible survivors'
15-22    annual retirement or survivor benefit to establish a payment
15-23    percentage for each retired member and eligible survivor.
15-24          (g)  The payment percentage of each retired member and
15-25    eligible survivor shall be multiplied by the aggregate supplemental
15-26    benefit less the total amount of any payments made under Subsection
15-27    (i) of this section.
 16-1          (h)  The product of the computation under Subsection (g) of
 16-2    this section determines the lump-sum payment to the retired member
 16-3    or eligible survivor unless the lump-sum payment plus the annual
 16-4    retirement benefit is less than the minimum income level
 16-5    established by the board.
 16-6          (i)  If the lump-sum payment plus the annual retirement
 16-7    benefit is less than the minimum income level established by the
 16-8    board, the retired member or eligible survivor is entitled to
 16-9    receive an additional payment from the amount determined under
16-10    Subsection (d) of this section that will cause the recipient to
16-11    meet but not exceed the minimum income level.
16-12          (j)  The benefits commencement date for a retired member or
16-13    the eligible survivor of a retired member is the first day on which
16-14    the retired member most recently began  receiving pension benefits
16-15    from the fund.  The benefits commencement date for an eligible
16-16    survivor of an active member is the first day of receipt of
16-17    benefits as an eligible survivor.
16-18          (k)  Notwithstanding any other provision of this section, if
16-19    more than one eligible survivor is to receive a supplemental
16-20    benefit as a result of one deceased person under this section:
16-21                (1)  only one eligible survivor is considered in
16-22    computations under this section other than computations under
16-23    Subdivision (2) of this subsection and as receiving the payments
16-24    received by all eligible survivors of the one deceased person; and
16-25                (2)  the amount of payments under this section will be
16-26    paid to the eligible survivors in the same manner as payments under
16-27    Sections 7(a) and (b) of this article are made.
 17-1          (l)  All actuarial determinations required under this section
 17-2    must be made by the fund's actuary.
 17-3          Sec. 10B.  ADDITIONAL LUMP-SUM RETIREMENT OR DEATH BENEFIT.
 17-4    (a)  The board shall pay the following people a $4,000 lump-sum
 17-5    payment from the fund, in addition to any other benefits, as soon
 17-6    as administratively practicable after the date of the person's
 17-7    retirement, if the person's retirement occurs or occurred after
 17-8    June 30, 1998:
 17-9                (1)  each member who retires or retired after
17-10    completing 20 years of service and is eligible to receive service
17-11    pension benefits under Section 4 of this article; and
17-12                (2)  each member who retires or retired and is eligible
17-13    to receive disability benefits under Section 6 of this article.
17-14          (b)  The board shall pay a $4,000 lump-sum payment from the
17-15    fund, in addition to any other benefits, to an eligible survivor of
17-16    a member:
17-17                (1)  whose death occurs or occurred after June 30,
17-18    1998;
17-19                (2)  who had not terminated active service; and
17-20                (3)  who was ineligible to receive service pension
17-21    benefits under Section 4 of this article or disability benefits
17-22    under Section 6 of this article.
17-23          (c)  If more than one eligible survivor of one deceased
17-24    member exists, the amount of each survivor's benefit is determined
17-25    in the same manner as payment of death benefits is determined under
17-26    Section 7(e) of this article.  The board shall make payments under
17-27    Subsection (b) of this section as soon as administratively
 18-1    practicable after the date of death of the member of whom each
 18-2    recipient is an eligible survivor.
 18-3          SECTION 10.  Sections 13(b) and (h), Article 6243e.2(1),
 18-4    Revised Statutes, are amended to read as follows:
 18-5          (b)  [The board shall establish minimum physical requirements
 18-6    for membership in the fund that may not exceed the physical
 18-7    requirements established by the Fire Fighters' and Police Officers'
 18-8    Civil Service Commission under Section 143.022, Local Government
 18-9    Code, and that must be the same for all applicants.]  At the time
18-10    that physical examinations are administered on behalf of the
18-11    municipality, each applicant must be provided written notice that a
18-12    copy of the results of the examination will be forwarded to the
18-13    board for the purpose of determining whether the applicant has a
18-14    preexisting condition that would be relevant to any determination
18-15    under Section 6 of this article [to determine eligibility for
18-16    membership in the fund and the existence of any preexisting
18-17    condition].  Not later than the 10th day after the date of a
18-18    physical examination performed on an applicant for a beginning
18-19    position in the fire department as required by Section 143.022,
18-20    Local Government Code, the municipality shall provide to the board
18-21    a copy of all documents resulting from the physical examination.
18-22    The board may require additional physical examinations if necessary
18-23    in determining the presence or absence of any preexisting condition
18-24    [to determine whether the applicant meets the minimum physical
18-25    requirements for membership in the fund].  The fund shall pay the
18-26    cost of any additional physical examination the board requires.
18-27    [Within a reasonable time after receiving the examination reports
 19-1    of an applicant, the board shall, on the basis of one or more
 19-2    physical examinations, determine whether the applicant meets the
 19-3    minimum physical requirements for membership in the fund.  The
 19-4    board shall notify the applicant and the chief of the fire
 19-5    department not later than the 10th calendar day after the date of
 19-6    the board's decision on the applicant's satisfaction of the minimum
 19-7    physical requirements.  If the board rejects the applicant, the
 19-8    applicant may request further examination by a board of three
 19-9    physicians appointed by the board at the expense of the applicant.
19-10    If a physician board finds that an applicant meets the minimum
19-11    physical requirements for membership in the fund, the board shall
19-12    accept the applicant for membership.]  If accepted by the board,
19-13    the applicant's membership in the fund is effective on being
19-14    appointed to the position of probationary firefighter.
19-15          (h)  If the municipality's actuarially determined
19-16    contribution rate computed in accordance with Subsection (d) of
19-17    this section would exceed the minimum contribution rate specified,
19-18    the benefits payable under Sections 4(d)[, 4(e),] and 7(e) of this
19-19    article may not be paid, an eligible spouse whose benefit is
19-20    reduced under Section 7(b) of this article may not be paid a
19-21    benefit if there are no other eligible survivors, and the
19-22    municipality's actuarially determined contribution rate shall be
19-23    recomputed on the basis of the assumption that those benefits are
19-24    suspended indefinitely.  If the recomputation results in an
19-25    actuarially determined contribution rate less than the minimum
19-26    contribution rate specified, a portion of the benefits shall be
19-27    paid, as determined by the board, to the extent that, with the
 20-1    payments determined, the two contribution rates are equal.  This
 20-2    subsection expires July 31, 1999, unless on that date the
 20-3    municipality's actuarially determined contribution rate computed in
 20-4    accordance with Subsection (d) of this section would exceed the
 20-5    minimum contribution rate specified.
 20-6          SECTION 11.  This Act takes effect November 1, 1999.
 20-7          SECTION 12.  The importance of this legislation and the
 20-8    crowded condition of the calendars in both houses create an
 20-9    emergency and an imperative public necessity that the
20-10    constitutional rule requiring bills to be read on three several
20-11    days in each house be suspended, and this rule is hereby suspended.