By Yarbrough                                          H.B. No. 1173
         76R5496 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.  Sections 2(i) and (l), Article 6243e.2(1),
1-13     Revised Statutes, are amended to read as follows:
1-14           (i)  A trustee of the board may not receive compensation for
1-15     service on the board, except that the board may approve an annual
1-16     clothing allowance not to exceed $500 a trustee for each
1-17     firefighter trustee and the retired firefighter trustee of the
1-18     board to provide appropriate business attire for board meetings and
1-19     functions.
1-20           (l)  The board shall hold regular monthly meetings at a time
1-21     and place as the board by resolution designates and may hold
1-22     special meetings on call of the chair as the chair determines is
1-23     necessary, keep accurate minutes of board meetings and records of
1-24     board proceedings, keep separate from all other municipal funds all
 2-1     money for the use and benefit of the fund, and keep a record of
 2-2     claims, receipts, and disbursements.  A disbursement from the fund
 2-3     may be made in accordance with procedures established by the board.
 2-4     The municipality shall allow municipal employees who are board
 2-5     trustees  to promptly attend all board and committee meetings.
 2-6     Each board trustee who is an employee of the municipality shall
 2-7     provide the municipality with reasonable notice of the trustee's
 2-8     required attendance at regularly scheduled board and committee
 2-9     meetings.  The municipality shall allow board trustees the time
2-10     required to travel to and attend educational workshops and
2-11     legislative hearings and meetings regarding proposed amendments to
2-12     this article if attendance is consistent with a board trustee's
2-13     duty to the board.  The municipality may not use the trustee's
2-14     attendance or travel related to attendance described by this
2-15     subsection to reduce or withhold the wages that the trustee would
2-16     otherwise earn.  The board may reimburse from the fund the
2-17     municipality for costs incurred by the municipality for allowing a
2-18     trustee's attendance under this subsection.
2-19           SECTION 3.  Section 3, Article 6243e.2(1), Revised Statutes,
2-20     is amended by adding Subsections (h) and (i) to read as follows:
2-21           (h)  The board may purchase with board funds a life insurance
2-22     policy from an insurer licensed to do business in this state to
2-23     cover the amount of lump-sum death benefits that may become payable
2-24     to a member's eligible survivor or estate.  The amount payable
2-25     under a policy under this subsection on the death of one member may
2-26     not exceed the amount of the lump-sum death benefits payable under
2-27     this article.  The board shall be the policyholder of any life
 3-1     insurance purchased under this subsection and shall use any
 3-2     proceeds received from the insurer to satisfy any lump-sum death
 3-3     benefits owed under this article.
 3-4           (i)  The board may pay with fund assets the reasonable
 3-5     expenses incurred in providing annual or semiannual meetings of
 3-6     retired members, spouses of retired members, and eligible survivors
 3-7     that facilitate communication regarding benefits paid under this
 3-8     article if the expenses do not materially affect the total assets
 3-9     of the fund.  Reasonable expenses may include the purchase of items
3-10     or services necessary to promote and facilitate these meetings.
3-11           SECTION 4.  Section 4, Article 6243e.2(1), Revised Statutes,
3-12     is amended to read as follows:
3-13           Sec. 4.  SERVICE PENSION BENEFITS.  (a)  A member with at
3-14     least 20 years of participation who terminates active service for
3-15     any reason other than death is entitled to receive a service
3-16     pension provided by this section.
3-17           (b)  A member who terminates active service on or after
3-18     November 1, 1997, and who has completed at least 20 years of
3-19     participation in the fund on the effective date of termination of
3-20     service is entitled to a monthly service pension, beginning on the
3-21     effective date of termination of active service, in an amount equal
3-22     to 50 percent of the member's average monthly salary, plus three
3-23     percent of the member's average monthly salary for each year of
3-24     participation in excess of 20 years, but not in excess of 30 years
3-25     of participation, for a maximum total benefit of 80 percent of the
3-26     member's average monthly salary.
3-27           (c)  A member who terminated active service before November
 4-1     1, 1997, and who had completed at least 20 years of participation
 4-2     on the effective date of termination of service is entitled on
 4-3     retirement to receive a monthly service pension in the amount
 4-4     provided under the law in effect on the effective date of that
 4-5     retirement, unless a subsequent benefit increase is expressly made
 4-6     applicable to that member.
 4-7           (d)  [A member with a service or disability pension, other
 4-8     than a deferred retiree or an active member who has elected the
 4-9     DROP under Section 5(b) of this article, who began receiving
4-10     benefits from the fund before November 1, 1997, or a member's
4-11     beneficiary who began receiving benefits from the fund before
4-12     November 1, 1997, shall be paid a one-time additional benefit of
4-13     $5,000 from the fund, payable in a lump sum as soon as
4-14     administratively practicable after November 1, 1997.]
4-15           [(e)]  The total monthly benefit payable to a retired or
4-16     disabled member, other than a deferred retiree or active member who
4-17     has elected the DROP under Section 5(b) of this article, or each
4-18     eligible survivor of a deceased member, shall be increased by $100,
4-19     beginning with the monthly payment made for July 1999.  That
4-20     additional benefit may not be increased under Section 11(c) of this
4-21     article.
4-22           [(f)  The benefit under Subsection (d) of this section shall
4-23     be paid to the member or to the eligible spouse of a deceased
4-24     member.  If the member is deceased and there is no eligible spouse,
4-25     the benefit shall be divided equally among and paid  to each
4-26     eligible child of the member, or, if there is no eligible child,
4-27     the benefit shall be divided among the eligible parents of the
 5-1     member.]
 5-2           SECTION 5.  Section 5, Article 6243e.2(1), Revised Statutes,
 5-3     is amended to read as follows:
 5-4           Sec. 5.  DEFERRED RETIREMENT OPTION PLAN.  (a)  A member who
 5-5     is eligible to receive a service pension under Section 4 of this
 5-6     article and who remains in active service may elect to participate
 5-7     in the deferred retirement option plan provided by this section.
 5-8     On subsequently terminating active service, a member who elected
 5-9     the DROP may apply for a monthly service pension under Section 4 of
5-10     this article, except that the effective date of the member's
5-11     election to participate in the DROP will be considered the member's
5-12     retirement date for determining the amount of the member's monthly
5-13     service pension.  The member may also apply for any DROP benefit
5-14     provided under this section on terminating active service.  Except
5-15     as provided by Subsection (l) [(n)] of this section, an election to
5-16     participate in the DROP, once approved by the board, is
5-17     irrevocable.
5-18           (b)  A member may elect to participate in the DROP by
5-19     complying with the election process established by the board.  The
5-20     member's election may be made at any time beginning on the date the
5-21     member has completed 20 years of participation in the fund and is
5-22     otherwise eligible for a service pension under Section 4 of this
5-23     article.  The election becomes effective on the first day of the
5-24     month following the month in which the board approves the member's
5-25     DROP election.  Beginning on the effective date of the member's
5-26     DROP election, amounts equal to the deductions made from the
5-27     member's salary under Section 13(c) of this article shall be
 6-1     credited to the member's DROP account.  If a DROP participant
 6-2     remains in active service after the seventh [fifth] anniversary of
 6-3     the effective date of the member's DROP election, subsequent
 6-4     deductions from the member's salary under Section 13(c) of this
 6-5     article may not be credited to the member's DROP account and may
 6-6     not otherwise increase any benefit payable from the fund for the
 6-7     member's service.
 6-8           (c)  Beginning in the month a member's DROP election becomes
 6-9     effective, an amount equal to the monthly service pension the
6-10     member would have received under Section 4 of this article and
6-11     Section 11(c) of this article, if applicable, had the member
6-12     terminated active service on the effective date of the member's
6-13     DROP election shall be credited to a DROP account maintained for
6-14     the member.  That monthly credit to the member's DROP account shall
6-15     continue until the earlier of the date the member terminates active
6-16     service or the seventh [fifth] anniversary of the effective date of
6-17     the member's DROP election.
6-18           (d)  A member's DROP account shall be credited with earnings
6-19     or losses at an annual rate equal to the average annual return
6-20     earned by the fund over the five years preceding, but not
6-21     including, the year during which the credit is given.  Those
6-22     earnings or losses shall be computed and credited at a time and in
6-23     a manner determined by the board, except that earnings or losses
6-24     shall be credited not less frequently than once in each 13-month
6-25     period and shall take into account partial years of participation
6-26     in the DROP. If the member has not terminated active service, the
6-27     member's DROP account may not be credited with earnings or losses
 7-1     after the seventh [fifth] anniversary of the effective date of the
 7-2     member's DROP election.
 7-3           (e)  A member who terminates active service after
 7-4     participating in the DROP is entitled to receive, in addition to
 7-5     the member's service pension under Section 4 of this article, a
 7-6     benefit equal to the balance of the member's DROP account.  Unless
 7-7     the member elects to receive [installment or] partial distributions
 7-8     in accordance with Subsection (f) [or (h)] of this section, the
 7-9     balance of a member's DROP account shall be paid to the member in a
7-10     single lump-sum payment as soon as is administratively practicable
7-11     after the member's termination of active service.
7-12           (f)  [In lieu of a single lump-sum payment, a member may
7-13     elect to receive the balance of the member's DROP account in three
7-14     substantially equal installments.  A member electing the
7-15     installment form of distribution is entitled to receive the first
7-16     installment within a reasonable period after terminating active
7-17     service.  The second and third installments shall be paid to the
7-18     member on the first and second anniversaries of the date of the
7-19     first installment.  A member electing to receive the member's DROP
7-20     account balance in installments may convert that election at any
7-21     time after receipt of the first installment to an election to
7-22     receive the remainder of the member's DROP account balance in a
7-23     lump-sum payment.  If a member elects to receive installments, the
7-24     member's DROP account may not be credited with earnings or losses
7-25     occurring after the member leaves active service.  The DROP account
7-26     balance of a member who elects to receive the member's DROP account
7-27     balance in installments may not be credited with interest after the
 8-1     date of payment of the first installment.]
 8-2           [(g)  The board may adopt by a majority vote the provisions
 8-3     of Subsections (h) and (i) of this section.]
 8-4           [(h)]  In lieu of a single lump-sum payment, a member may
 8-5     elect to receive partial payments from the member's DROP account
 8-6     for each calendar year, in an amount elected by the member.  The
 8-7     board may establish procedures concerning partial payments,
 8-8     including limitations on timing and frequency of those payments.  A
 8-9     member who elects partial payments may, at any time, elect to
8-10     receive the member's entire remaining DROP account balance in a
8-11     single lump-sum payment.
8-12           (g) [(i)]  If a member elects partial payments, for periods
8-13     after a member terminates active service and before the member's
8-14     DROP account is completely distributed, the member's DROP account
8-15     shall be credited with earnings or losses of the fund as computed
8-16     under Subsection (d) of this section and reduced by an
8-17     administrative fee of one percent of the account balance each year,
8-18     determined before adjustment for earnings or losses for the year.
8-19           (h) [(j)]  An election by a member concerning single lump-sum
8-20     [installment] or partial payments as provided by Subsections (e) or
8-21     (f)[-(i)] of this section must satisfy the requirements of Section
8-22     401(a)(9) of the code.  All distributions and changes in form of
8-23     distribution must be made in a manner and at a time that comply
8-24     with that provision of the code.
8-25           (i) [(k)]  A member who elects to participate in the DROP is
8-26     considered to have terminated active service on the effective date
8-27     of the member's DROP election for purposes of computing and
 9-1     providing service pension benefits under Section 4 of this article
 9-2     and for purposes of computing and providing death benefits under
 9-3     Section 7 of this article.  A salary earned or additional years of
 9-4     participation completed after the member's DROP election becomes
 9-5     effective may not be considered in the computation of retirement,
 9-6     disability, or death benefits unless a DROP revocation is made as
 9-7     prescribed by Subsection (l) [(n)] of this section.
 9-8           (j) [(l)]  If a DROP participant dies before complete
 9-9     distribution of the member's DROP account has been made, the
9-10     member's DROP account balance shall be distributed to the member's
9-11     eligible beneficiaries, determined as follows:
9-12                 (1)  if the member is survived by a spouse [person] who
9-13     was the member's spouse on the member's last day of active service
9-14     and one or more eligible children, one-half of the member's DROP
9-15     account balance shall be paid to that eligible spouse, and the
9-16     remaining one-half shall be divided equally among the member's
9-17     eligible children;
9-18                 (2)  if the member is survived by a spouse described by
9-19     Subdivision (1) of this subsection, but not by an eligible child,
9-20     the member's entire DROP account balance shall be paid to the
9-21     surviving spouse;
9-22                 (3)  if the member is survived by one or more eligible
9-23     children, but not by a spouse described by Subdivision (1) of this
9-24     subsection, the member's DROP account balance shall be divided
9-25     equally among the eligible children;
9-26                 (4)  if the member is not survived by a spouse
9-27     described by Subdivision (1) of this subsection or an eligible
 10-1    child, the member's DROP account balance shall be divided equally
 10-2    among the member's eligible parents;
 10-3                (5)  if the member is not survived by a spouse
 10-4    described by Subdivision (1) of this subsection, an eligible child,
 10-5    or an eligible parent, the member's DROP account balance shall be
 10-6    distributed in accordance with the member's beneficiary designation
 10-7    filed with the board or, if the member has failed to file a valid
 10-8    beneficiary designation, to the member's estate; and
 10-9                (6)  if a member's spouse described by Subdivision (1)
10-10    of this subsection was not married to the member on the date the
10-11    member's DROP election became effective, the spouse shall receive a
10-12    reduced benefit equal to the benefit otherwise payable to the
10-13    surviving spouse under this subsection, multiplied by the
10-14    percentage of the period between the member's DROP election and the
10-15    date the member left active service during which the spouse and the
10-16    member were married, and the amount by which the spouse's benefit
10-17    is reduced shall be divided among any other eligible survivors as
10-18    if the member did not have an eligible spouse.
10-19          (k) [(m)]  An eligible beneficiary's share of a deceased
10-20    member's DROP account shall be distributed as soon as
10-21    administratively practicable after the member's death in the form
10-22    of a single lump-sum payment.  All distributions to beneficiaries
10-23    under this subsection must be made in a manner and at a time that
10-24    comply with Section 401(a)(9) of the code.
10-25          (l) [(n)]  Except as otherwise provided by this subsection, a
10-26    member who participates in the DROP is ineligible for disability
10-27    benefits described by Section 6 of this article, and the member's
 11-1    survivors are ineligible to receive enhanced death benefits
 11-2    described by Section 7(c) of this article.  A DROP participant who
 11-3    is determined under Section 6(c) of this article to be incapable of
 11-4    performing any substantial gainful employment because of an on-duty
 11-5    disability may retroactively revoke the member's DROP election if
 11-6    the revocation occurs before the member receives a distribution
 11-7    from the member's DROP account or retirement benefits.  If a DROP
 11-8    participant dies in the course of the performance of the member's
 11-9    duty or dies as a result of an on-duty disability described by
11-10    Section 6(c) of this article, the DROP participant's eligible
11-11    survivors under Section 7 of this article and the member's eligible
11-12    DROP beneficiaries under Subsection (j) [(l)] of this section may,
11-13    by unanimous agreement, retroactively revoke the member's DROP
11-14    election if the revocation occurs before receipt of a distribution
11-15    from the member's DROP account, service pension benefits under
11-16    Section 4 of this article, or death benefits under Section 7 of
11-17    this article.  For purposes of this subsection, an on-duty
11-18    disability must have occurred after the effective date of a
11-19    member's election to participate in the DROP. If a DROP election
11-20    revocation is made as prescribed by this subsection, the member's
11-21    DROP account is not distributed, and the member or the member's
11-22    beneficiary, as applicable, is entitled to benefits under this
11-23    article as if a DROP election had not been made.
11-24          (m) [(o)]  A retired member who previously participated in
11-25    the DROP and who returns to active service is subject to the terms
11-26    of this section in effect at the time of the member's return to
11-27    active service.
 12-1          (n) [(p)]  After August 31, 2000, the board may set a date
 12-2    after which additional members will not be allowed to elect to
 12-3    participate in the DROP. A member whose election to participate in
 12-4    the DROP becomes effective before a deadline established by the
 12-5    board is entitled to continue participating in the DROP.
 12-6          (o)  A member who has made a DROP election is not  classified
 12-7    as retired, eligible to be paid, or eligible to accrue or to
 12-8    receive any benefit that is accrued or received by a member who has
 12-9    terminated active service or by the eligible survivors of deceased
12-10    members unless the member who has made the DROP election has
12-11    terminated active service.
12-12          SECTION 6.  Section 6(d), Article 6243e.2(1), Revised
12-13    Statutes, is amended to read as follows:
12-14          (d)  If a full-time active member with at least six years of
12-15    service becomes disabled or dies from heart or lung disease or
12-16    cancer, and the member successfully passed a physical examination
12-17    before the claimed disability or death or on beginning employment
12-18    as a firefighter, and the examination failed to reveal any evidence
12-19    of the heart or lung disease or cancer, that condition will be
12-20    presumed to have caused an on-duty disability for purposes of
12-21    determining eligibility for disability benefits under this section,
12-22    and the amount of the disability benefit is presumed to constitute,
12-23    unless the presumption is rebutted, [constitutes] the pension
12-24    amount that shall be used to determine  the death benefit payable
12-25    with respect to that member.  The on-duty disability presumption
12-26    may be rebutted only by clear and convincing evidence.  Another
12-27    statutory presumption regarding the  cause of illnesses or
 13-1    conditions does not affect any benefit payable under this article.
 13-2          SECTION 7.  Section 7(e), Article 6243e.2(1), Revised
 13-3    Statutes, is amended to read as follows:
 13-4          (e)  In addition to the monthly death benefit provided under
 13-5    Subsection (a) of this section, if an active member or a member
 13-6    receiving a service pension under Section 4 of this article or a
 13-7    disability pension under Section 6 of this article dies on or after
 13-8    July 1, 1998, the member's eligible survivors are entitled to a
 13-9    one-time $5,000 death benefit, payable as a lump sum as follows:
13-10                (1)  if the member is survived by an eligible spouse,
13-11    the eligible spouse is entitled to receive $5,000;
13-12                (2)  if the member is not survived by an eligible
13-13    spouse, the member's eligible children are entitled to receive
13-14    $5,000, divided equally among those children;  [or]
13-15                (3)  if the member is not survived by an eligible
13-16    spouse or an eligible child, the $5,000 death benefit shall be
13-17    divided equally among the eligible parents of the deceased member;
13-18    or
13-19                (4)  if the member is not survived by an eligible
13-20    spouse, an eligible child, or an eligible parent, the $5,000 death
13-21    benefit shall be paid to the deceased member's estate.
13-22          SECTION 8.  Section 10, Article 6243e.2(1), Revised Statutes,
13-23    is amended to read as follows:
13-24          Sec. 10.  NONSTATUTORY BENEFIT INCREASES.  The benefits
13-25    provided by this article may be increased if:
13-26                (1)  [the increase is first approved by] an actuary
13-27    selected by the board who, if an individual, is a Fellow of the
 14-1    Society of Actuaries, a Fellow of the Conference of Actuaries in
 14-2    Public Practice, or a member of the American Academy of Actuaries
 14-3    determines that the increase cannot reasonably be viewed as posing
 14-4    a material risk of jeopardizing the fund's ability to pay any
 14-5    existing benefit;
 14-6                (2)  a majority of the participating members of the
 14-7    fund vote for the increase by a secret ballot;
 14-8                (3)  the increase does not deprive a member, without
 14-9    the member's written consent, of a right to receive benefits that
14-10    have already become fully vested and matured in a member; and
14-11                (4)  the State Pension Review Board approves the
14-12    determination by the actuary selected by the board that the
14-13    increase cannot reasonably be  viewed as posing a material risk of
14-14    jeopardizing the fund's ability to pay any existing benefit
14-15    [increase, which approval may not be unreasonably withheld].
14-16          SECTION 9.  Article 6243e.2(1), Revised Statutes, is amended
14-17    by adding Sections 10A and 10B to read as follows:
14-18          Sec. 10A.  ANNUAL SUPPLEMENTAL BENEFIT FOR CERTAIN RETIRED
14-19    MEMBERS AND ELIGIBLE SURVIVORS.  (a)  The board shall pay
14-20    supplemental benefits under this section to retired members, not
14-21    including deferred retirees, and to eligible survivors, not
14-22    including survivors of deferred retirees, if the requirements of
14-23    Subsection (b) of this section are met. The board shall pay the
14-24    supplemental benefits in January following a fiscal year of the
14-25    fund in which the requirements of Subsection (b) of this section
14-26    are met.
14-27          (b)  The board shall pay supplemental benefits under this
 15-1    section if the fund actuary determines that, as of the end of any
 15-2    fund fiscal year:
 15-3                (1)  the value of the fund's assets exceeds the amount
 15-4    of the fund's accrued liability;
 15-5                (2)  the fund's gross rate of return on investments for
 15-6    that fiscal year exceeds 9.25 percent; and
 15-7                (3)  payment of supplemental benefits will not result
 15-8    in an increase of the municipality's contribution rate.
 15-9          (c)  The board shall adopt rules and procedures to govern the
15-10    payment of benefits under this section and shall establish a
15-11    minimum income level consistent with the national poverty level set
15-12    by the United States Department of Health and Human Services.
15-13          (d)  The board shall determine an aggregate supplemental
15-14    benefit amount that may not exceed the lesser of:
15-15                (1)  the amount by which the value of fund assets
15-16    exceeds the amount of accrued liability as determined under
15-17    Subsection (b)(1) of this section; or
15-18                (2)  $4 million.
15-19          (e)  Based on the aggregate supplemental benefit amount
15-20    determined under Subsection (d) of this section,  the board shall
15-21    determine the amount of a lump-sum payment for each retired member
15-22    or eligible survivor.
15-23          (f)  In determining the lump-sum payment amount, the total
15-24    number of years since the commencement date of each retired
15-25    member's or eligible survivor's annual retirement or survivor
15-26    benefit shall be divided by the total number of years since the
15-27    commencement date of all retired members' and eligible survivors'
 16-1    annual retirement or survivor benefit to establish a payment
 16-2    percentage for each retired member and eligible survivor.
 16-3          (g)  The payment percentage of each retired member and
 16-4    eligible survivor shall be multiplied by the aggregate supplemental
 16-5    benefit less the total amount of any payments made under Subsection
 16-6    (i) of this section.
 16-7          (h)  The product of the computation under Subsection (g) of
 16-8    this section determines the lump-sum payment to the retired member
 16-9    or eligible survivor unless the lump-sum payment plus the annual
16-10    retirement benefit is less than the minimum income level
16-11    established by the board.
16-12          (i)  If the lump-sum payment plus the annual retirement
16-13    benefit is less than the minimum income level established by the
16-14    board, the retired member or eligible survivor is entitled to
16-15    receive an additional payment from the amount determined under
16-16    Subsection (d) of this section that will cause the recipient to
16-17    meet but not exceed the minimum income level.
16-18          (j)  The benefits commencement date for a retired member or
16-19    the eligible survivor of a retired member is the first day on which
16-20    the retired member most recently began  receiving pension benefits
16-21    from the fund.  The benefits commencement date for an eligible
16-22    survivor of an active member is the first day of receipt of
16-23    benefits as an eligible survivor.
16-24          (k)  Notwithstanding any other provision of this section, if
16-25    more than one eligible survivor is to receive a supplemental
16-26    benefit as a result of one deceased person under this section:
16-27                (1)  only one eligible survivor is considered in
 17-1    computations under this section other than computations under
 17-2    Subdivision (2) of this subsection and as receiving the payments
 17-3    received by all eligible survivors of the one deceased person; and
 17-4                (2)  the amount of payments under this section will be
 17-5    paid to the eligible survivors in the same manner as payments under
 17-6    Sections 7(a) and (b) of this article are made.
 17-7          (l)  All actuarial determinations required under this section
 17-8    must be made by the fund's actuary.
 17-9          Sec. 10B.  ADDITIONAL LUMP-SUM RETIREMENT OR DEATH BENEFIT.
17-10    (a)  The board shall pay the following people a $4,000 lump-sum
17-11    payment from the fund, in addition to any other benefits, as soon
17-12    as administratively practicable after the date of the person's
17-13    retirement, if the person's retirement occurs or occurred after
17-14    June 30, 1998:
17-15                (1)  each member who retires or retired after
17-16    completing 20 years of service and is eligible to receive service
17-17    pension benefits under Section 4 of this article; and
17-18                (2)  each member who retires or retired and is eligible
17-19    to receive disability benefits under Section 6 of this article.
17-20          (b)  The board shall pay a $4,000 lump-sum payment from the
17-21    fund, in addition to any other benefits, to an eligible survivor of
17-22    a member:
17-23                (1)  whose death occurs or occurred after June 30,
17-24    1998;
17-25                (2)  who had not terminated active service; and
17-26                (3)  who was ineligible to receive service pension
17-27    benefits under Section 4 of this article or disability benefits
 18-1    under Section 6 of this article.
 18-2          (c)  If more than one eligible survivor of one deceased
 18-3    member exists, the amount of each survivor's benefit is determined
 18-4    in the same manner as payment of death benefits is determined under
 18-5    Section 7(e) of this article.  The board shall make payments under
 18-6    Subsection (b) of this section as soon as administratively
 18-7    practicable after the date of death of the member of whom each
 18-8    recipient is an eligible survivor.
 18-9          SECTION 10.  Sections 13(b) and (h), Article 6243e.2(1),
18-10    Revised Statutes, are amended to read as follows:
18-11          (b)  [The board shall establish minimum physical requirements
18-12    for membership in the fund that may not exceed the physical
18-13    requirements established by the Fire Fighters' and Police Officers'
18-14    Civil Service Commission under Section 143.022, Local Government
18-15    Code, and that must be the same for all applicants.]  At the time
18-16    that physical examinations are administered on behalf of the
18-17    municipality, each applicant must be provided written notice that a
18-18    copy of the results of the examination will be forwarded to the
18-19    board for the purpose of determining whether the applicant has a
18-20    preexisting condition that would be relevant to any determination
18-21    under Section 6 of this article [to determine eligibility for
18-22    membership in the fund and the existence of any preexisting
18-23    condition].  Not later than the 10th day after the date of a
18-24    physical examination performed on an applicant for a beginning
18-25    position in the fire department as required by Section 143.022,
18-26    Local Government Code, the municipality shall provide to the board
18-27    a copy of all documents resulting from the physical examination.
 19-1    The board may require additional physical examinations if necessary
 19-2    in determining the presence or absence of any preexisting condition
 19-3    [to determine whether the applicant meets the minimum physical
 19-4    requirements for membership in the fund].  The fund shall pay the
 19-5    cost of any additional physical examination the board requires.
 19-6    [Within a reasonable time after receiving the examination reports
 19-7    of an applicant, the board shall, on the basis of one or more
 19-8    physical examinations, determine whether the applicant meets the
 19-9    minimum physical requirements for membership in the fund.  The
19-10    board shall notify the applicant and the chief of the fire
19-11    department not later than the 10th calendar day after the date of
19-12    the board's decision on the applicant's satisfaction of the minimum
19-13    physical requirements.  If the board rejects the applicant, the
19-14    applicant may request further examination by a board of three
19-15    physicians appointed by the board at the expense of the applicant.
19-16    If a physician board finds that an applicant meets the minimum
19-17    physical requirements for membership in the fund, the board shall
19-18    accept the applicant for membership.]  If accepted by the board,
19-19    the applicant's membership in the fund is effective on being
19-20    appointed to the position of probationary firefighter.
19-21          (h)  If the municipality's actuarially determined
19-22    contribution rate computed in accordance with Subsection (d) of
19-23    this section would exceed the minimum contribution rate specified,
19-24    the benefits payable under Sections 4(d)[, 4(e),] and 7(e) of this
19-25    article may not be paid, an eligible spouse whose benefit is
19-26    reduced under Section 7(b) of this article may not be paid a
19-27    benefit if there are no other eligible survivors, and the
 20-1    municipality's actuarially determined contribution rate shall be
 20-2    recomputed on the basis of the assumption that those benefits are
 20-3    suspended indefinitely.  If the recomputation results in an
 20-4    actuarially determined contribution rate less than the minimum
 20-5    contribution rate specified, a portion of the benefits shall be
 20-6    paid, as determined by the board, to the extent that, with the
 20-7    payments determined, the two contribution rates are equal.  This
 20-8    subsection expires July 31, 1999, unless on that date the
 20-9    municipality's actuarially determined contribution rate computed in
20-10    accordance with Subsection (d) of this section would exceed the
20-11    minimum contribution rate specified.
20-12          SECTION 11.  This Act takes effect November 1, 1999.
20-13          SECTION 12.  The importance of this legislation and the
20-14    crowded condition of the calendars in both houses create an
20-15    emergency and an imperative public necessity that the
20-16    constitutional rule requiring bills to be read on three several
20-17    days in each house be suspended, and this rule is hereby suspended.