1-1     By:  Yarbrough (Senate Sponsor - Brown)               H.B. No. 1173
 1-2           (In the Senate - Received from the House April 9, 1999;
 1-3     April 12, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; April 29, 1999, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; April 29, 1999, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to a firefighters' relief and retirement fund in certain
1-10     municipalities.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 1(11), Article 6243e.2(1), Revised
1-13     Statutes, is amended to read as follows:
1-14                 (11)  "Firefighter" means a full-time, fully paid,
1-15     active, classified member of a regularly organized fire department
1-16     of an incorporated municipality with a fund established under this
1-17     article, including a member who has made a DROP election, but is
1-18     otherwise described in this definition.
1-19           SECTION 2.  Section 2(l), Article 6243e.2(1), Revised
1-20     Statutes, is amended to read as follows:
1-21           (l)  The board shall hold regular monthly meetings at a time
1-22     and place as the board by resolution designates and may hold
1-23     special meetings on call of the chair as the chair determines is
1-24     necessary, keep accurate minutes of board meetings and records of
1-25     board proceedings, keep separate from all other municipal funds all
1-26     money for the use and benefit of the fund, and keep a record of
1-27     claims, receipts, and disbursements.  A disbursement from the fund
1-28     may be made in accordance with procedures established by the board.
1-29     The municipality shall allow municipal employees who are board
1-30     trustees  to promptly attend all board and committee meetings.
1-31     Each board trustee who is an employee of the municipality shall
1-32     provide the municipality with reasonable notice of the trustee's
1-33     required attendance at regularly scheduled board and committee
1-34     meetings.  The municipality shall allow board trustees the time
1-35     required to travel to and attend educational workshops and
1-36     legislative hearings and meetings regarding proposed amendments to
1-37     this article if attendance is consistent with a board trustee's
1-38     duty to the board.  The municipality may not use the trustee's
1-39     attendance or travel related to attendance described by this
1-40     subsection to reduce or withhold the wages that the trustee would
1-41     otherwise earn.  The board may reimburse from the fund the
1-42     municipality for costs incurred by the municipality for allowing a
1-43     trustee's attendance under this subsection.
1-44           SECTION 3.  Section 3, Article 6243e.2(1), Revised Statutes,
1-45     is amended by adding Subsections (h) and (i) to read as follows:
1-46           (h)  The board may purchase with board funds a life insurance
1-47     policy from an insurer licensed to do business in this state to
1-48     cover the amount of lump-sum death benefits that may become payable
1-49     to a member's eligible survivor or estate.  The amount payable
1-50     under a policy under this subsection on the death of one member may
1-51     not exceed the amount of the lump-sum death benefits payable under
1-52     this article.  The board shall be the policyholder of any life
1-53     insurance purchased under this subsection and shall use any
1-54     proceeds received from the insurer to satisfy any lump-sum death
1-55     benefits owed under this article.
1-56           (i)  The board may pay with fund assets the reasonable
1-57     expenses incurred in providing annual or semiannual meetings of
1-58     retired members, spouses of retired members, and eligible survivors
1-59     that facilitate communication regarding benefits paid under this
1-60     article if the expenses do not materially affect the total assets
1-61     of the fund.  Reasonable expenses may include the purchase of items
1-62     or services necessary to promote and facilitate these meetings.
1-63           SECTION 4.  Section 4, Article 6243e.2(1), Revised Statutes,
1-64     is amended to read as follows:
 2-1           Sec. 4.  SERVICE PENSION BENEFITS.  (a)  A member with at
 2-2     least 20 years of participation who terminates active service for
 2-3     any reason other than death is entitled to receive a service
 2-4     pension provided by this section.
 2-5           (b)  A member who terminates active service on or after
 2-6     November 1, 1997, and who has completed at least 20 years of
 2-7     participation in the fund on the effective date of termination of
 2-8     service is entitled to a monthly service pension, beginning on the
 2-9     effective date of termination of active service, in an amount equal
2-10     to 50 percent of the member's average monthly salary, plus three
2-11     percent of the member's average monthly salary for each year of
2-12     participation in excess of 20 years, but not in excess of 30 years
2-13     of participation, for a maximum total benefit of 80 percent of the
2-14     member's average monthly salary.
2-15           (c)  A member who terminated active service before November
2-16     1, 1997, and who had completed at least 20 years of participation
2-17     on the effective date of termination of service is entitled on
2-18     retirement to receive a monthly service pension in the amount
2-19     provided under the law in effect on the effective date of that
2-20     retirement, unless a subsequent benefit increase is expressly made
2-21     applicable to that member.
2-22           (d)  [A member with a service or disability pension, other
2-23     than a deferred retiree or an active member who has elected the
2-24     DROP under Section 5(b) of this article, who began receiving
2-25     benefits from the fund before November 1, 1997, or a member's
2-26     beneficiary who began receiving benefits from the fund before
2-27     November 1, 1997, shall be paid a one-time additional benefit of
2-28     $5,000 from the fund, payable in a lump sum as soon as
2-29     administratively practicable after November 1, 1997.]
2-30           [(e)]  The total monthly benefit payable to a retired or
2-31     disabled member, other than a deferred retiree or active member who
2-32     has elected the DROP under Section 5(b) of this article, or each
2-33     eligible survivor of a deceased member, shall be increased by $100,
2-34     beginning with the monthly payment made for July 1999.  That
2-35     additional benefit may not be increased under Section 11(c) of this
2-36     article.
2-37           [(f)  The benefit under Subsection (d) of this section shall
2-38     be paid to the member or to the eligible spouse of a deceased
2-39     member.  If the member is deceased and there is no eligible spouse,
2-40     the benefit shall be divided equally among and paid  to each
2-41     eligible child of the member, or, if there is no eligible child,
2-42     the benefit shall be divided among the eligible parents of the
2-43     member.]
2-44           SECTION 5.  Section 5, Article 6243e.2(1), Revised Statutes,
2-45     is amended to read as follows:
2-46           Sec. 5.  DEFERRED RETIREMENT OPTION PLAN.  (a)  A member who
2-47     is eligible to receive a service pension under Section 4 of this
2-48     article and who remains in active service may elect to participate
2-49     in the deferred retirement option plan provided by this section.
2-50     On subsequently terminating active service, a member who elected
2-51     the DROP may apply for a monthly service pension under Section 4 of
2-52     this article, except that the effective date of the member's
2-53     election to participate in the DROP will be considered the member's
2-54     retirement date for determining the amount of the member's monthly
2-55     service pension.  The member may also apply for any DROP benefit
2-56     provided under this section on terminating active service.  Except
2-57     as provided by Subsection (l) [(n)] of this section, an election to
2-58     participate in the DROP, once approved by the board, is
2-59     irrevocable.
2-60           (b)  A member may elect to participate in the DROP by
2-61     complying with the election process established by the board.  The
2-62     member's election may be made at any time beginning on the date the
2-63     member has completed 20 years of participation in the fund and is
2-64     otherwise eligible for a service pension under Section 4 of this
2-65     article.  The election becomes effective on the first day of the
2-66     month following the month in which the board approves the member's
2-67     DROP election.  Beginning on the effective date of the member's
2-68     DROP election, amounts equal to the deductions made from the
2-69     member's salary under Section 13(c) of this article shall be
 3-1     credited to the member's DROP account.  If a DROP participant
 3-2     remains in active service after the seventh [fifth] anniversary of
 3-3     the effective date of the member's DROP election, subsequent
 3-4     deductions from the member's salary under Section 13(c) of this
 3-5     article may not be credited to the member's DROP account and may
 3-6     not otherwise increase any benefit payable from the fund for the
 3-7     member's service.
 3-8           (c)  Beginning in the month a member's DROP election becomes
 3-9     effective, an amount equal to the monthly service pension the
3-10     member would have received under Section 4 of this article and
3-11     Section 11(c) of this article, if applicable, had the member
3-12     terminated active service on the effective date of the member's
3-13     DROP election shall be credited to a DROP account maintained for
3-14     the member.  That monthly credit to the member's DROP account shall
3-15     continue until the earlier of the date the member terminates active
3-16     service or the seventh [fifth] anniversary of the effective date of
3-17     the member's DROP election.
3-18           (d)  A member's DROP account shall be credited with earnings
3-19     or losses at an annual rate equal to the average annual return
3-20     earned by the fund over the five years preceding, but not
3-21     including, the year during which the credit is given.  Those
3-22     earnings or losses shall be computed and credited at a time and in
3-23     a manner determined by the board, except that earnings or losses
3-24     shall be credited not less frequently than once in each 13-month
3-25     period and shall take into account partial years of participation
3-26     in the DROP. If the member has not terminated active service, the
3-27     member's DROP account may not be credited with earnings or losses
3-28     after the seventh [fifth] anniversary of the effective date of the
3-29     member's DROP election.
3-30           (e)  A member who terminates active service after
3-31     participating in the DROP is entitled to receive, in addition to
3-32     the member's service pension under Section 4 of this article, a
3-33     benefit equal to the balance of the member's DROP account.  Unless
3-34     the member elects to receive [installment or] partial distributions
3-35     in accordance with Subsection (f) [or (h)] of this section, the
3-36     balance of a member's DROP account shall be paid to the member in a
3-37     single lump-sum payment as soon as is administratively practicable
3-38     after the member's termination of active service.
3-39           (f)  [In lieu of a single lump-sum payment, a member may
3-40     elect to receive the balance of the member's DROP account in three
3-41     substantially equal installments.  A member electing the
3-42     installment form of distribution is entitled to receive the first
3-43     installment within a reasonable period after terminating active
3-44     service.  The second and third installments shall be paid to the
3-45     member on the first and second anniversaries of the date of the
3-46     first installment.  A member electing to receive the member's DROP
3-47     account balance in installments may convert that election at any
3-48     time after receipt of the first installment to an election to
3-49     receive the remainder of the member's DROP account balance in a
3-50     lump-sum payment.  If a member elects to receive installments, the
3-51     member's DROP account may not be credited with earnings or losses
3-52     occurring after the member leaves active service.  The DROP account
3-53     balance of a member who elects to receive the member's DROP account
3-54     balance in installments may not be credited with interest after the
3-55     date of payment of the first installment.]
3-56           [(g)  The board may adopt by a majority vote the provisions
3-57     of Subsections (h) and (i) of this section.]
3-58           [(h)]  In lieu of a single lump-sum payment, a member may
3-59     elect to receive partial payments from the member's DROP account
3-60     for each calendar year, in an amount elected by the member.  The
3-61     board may establish procedures concerning partial payments,
3-62     including limitations on timing and frequency of those payments.  A
3-63     member who elects partial payments may, at any time, elect to
3-64     receive the member's entire remaining DROP account balance in a
3-65     single lump-sum payment.
3-66           (g) [(i)]  If a member elects partial payments, for periods
3-67     after a member terminates active service and before the member's
3-68     DROP account is completely distributed, the member's DROP account
3-69     shall be credited with earnings or losses of the fund as computed
 4-1     under Subsection (d) of this section and reduced by an
 4-2     administrative fee of one percent of the account balance each year,
 4-3     determined before adjustment for earnings or losses for the year.
 4-4           (h) [(j)]  An election by a member concerning single lump-sum
 4-5     [installment] or partial payments as provided by Subsection (e) or
 4-6     (f) [Subsections (f) (i)] of this section must satisfy the
 4-7     requirements of Section 401(a)(9) of the code.  All distributions
 4-8     and changes in form of distribution must be made in a manner and at
 4-9     a time that comply with that provision of the code.
4-10           (i) [(k)]  A member who elects to participate in the DROP is
4-11     considered to have terminated active service on the effective date
4-12     of the member's DROP election for purposes of computing and
4-13     providing service pension benefits under Section 4 of this article
4-14     and for purposes of computing and providing death benefits under
4-15     Section 7 of this article.  A salary earned or additional years of
4-16     participation completed after the member's DROP election becomes
4-17     effective may not be considered in the computation of retirement,
4-18     disability, or death benefits unless a DROP revocation is made as
4-19     prescribed by Subsection (l) [(n)] of this section.
4-20           (j) [(l)]  If a DROP participant dies before complete
4-21     distribution of the member's DROP account has been made, the
4-22     member's DROP account balance shall be distributed to the member's
4-23     eligible beneficiaries, determined as follows:
4-24                 (1)  if the member is survived by a spouse [person] who
4-25     was the member's spouse on the member's last day of active service
4-26     and one or more eligible children, one-half of the member's DROP
4-27     account balance shall be paid to that eligible spouse, and the
4-28     remaining one-half shall be divided equally among the member's
4-29     eligible children;
4-30                 (2)  if the member is survived by a spouse described by
4-31     Subdivision (1) of this subsection, but not by an eligible child,
4-32     the member's entire DROP account balance shall be paid to the
4-33     surviving spouse;
4-34                 (3)  if the member is survived by one or more eligible
4-35     children, but not by a spouse described by Subdivision (1) of this
4-36     subsection, the member's DROP account balance shall be divided
4-37     equally among the eligible children;
4-38                 (4)  if the member is not survived by a spouse
4-39     described by Subdivision (1) of this subsection or an eligible
4-40     child, the member's DROP account balance shall be divided equally
4-41     among the member's eligible parents;
4-42                 (5)  if the member is not survived by a spouse
4-43     described by Subdivision (1) of this subsection, an eligible child,
4-44     or an eligible parent, the member's DROP account balance shall be
4-45     distributed in accordance with the member's beneficiary designation
4-46     filed with the board or, if the member has failed to file a valid
4-47     beneficiary designation, to the member's estate; and
4-48                 (6)  if a member's spouse described by Subdivision (1)
4-49     of this subsection was not married to the member on the date the
4-50     member's DROP election became effective, the spouse shall receive a
4-51     reduced benefit equal to the benefit otherwise payable to the
4-52     surviving spouse under this subsection, multiplied by the
4-53     percentage of the period between the member's DROP election and the
4-54     date the member left active service during which the spouse and the
4-55     member were married, and the amount by which the spouse's benefit
4-56     is reduced shall be divided among any other eligible survivors as
4-57     if the member did not have an eligible spouse.
4-58           (k) [(m)]  An eligible beneficiary's share of a deceased
4-59     member's DROP account shall be distributed as soon as
4-60     administratively practicable after the member's death in the form
4-61     of a single lump-sum payment.  All distributions to beneficiaries
4-62     under this subsection must be made in a manner and at a time that
4-63     comply with Section 401(a)(9) of the code.
4-64           (l) [(n)]  Except as otherwise provided by this subsection, a
4-65     member who participates in the DROP is ineligible for disability
4-66     benefits described by Section 6 of this article, and the member's
4-67     survivors are ineligible to receive enhanced death benefits
4-68     described by Section 7(c) of this article.  A DROP participant who
4-69     is determined under Section 6(c) of this article to be incapable of
 5-1     performing any substantial gainful employment because of an on-duty
 5-2     disability may retroactively revoke the member's DROP election if
 5-3     the revocation occurs before the member receives a distribution
 5-4     from the member's DROP account or retirement benefits.  If a DROP
 5-5     participant dies in the course of the performance of the member's
 5-6     duty or dies as a result of an on-duty disability described by
 5-7     Section 6(c) of this article, the DROP participant's eligible
 5-8     survivors under Section 7 of this article and the member's eligible
 5-9     DROP beneficiaries under Subsection (j) [(l)] of this section may,
5-10     by unanimous agreement, retroactively revoke the member's DROP
5-11     election if the revocation occurs before receipt of a distribution
5-12     from the member's DROP account, service pension benefits under
5-13     Section 4 of this article, or death benefits under Section 7 of
5-14     this article.  For purposes of this subsection, an on-duty
5-15     disability must have occurred after the effective date of a
5-16     member's election to participate in the DROP. If a DROP election
5-17     revocation is made as prescribed by this subsection, the member's
5-18     DROP account is not distributed, and the member or the member's
5-19     beneficiary, as applicable, is entitled to benefits under this
5-20     article as if a DROP election had not been made.
5-21           (m) [(o)]  A retired member who previously participated in
5-22     the DROP and who returns to active service is subject to the terms
5-23     of this section in effect at the time of the member's return to
5-24     active service.
5-25           (n) [(p)]  After August 31, 2000, the board may set a date
5-26     after which additional members will not be allowed to elect to
5-27     participate in the DROP. A member whose election to participate in
5-28     the DROP becomes effective before a deadline established by the
5-29     board is entitled to continue participating in the DROP.
5-30           (o)  A member who has made a DROP election is not  classified
5-31     as retired, eligible to be paid, or eligible to accrue or to
5-32     receive any benefit that is accrued or received by a member who has
5-33     terminated active service or by the eligible survivors of deceased
5-34     members unless the member who has made the DROP election has
5-35     terminated active service.
5-36           SECTION 6.  Section 6(d), Article 6243e.2(1), Revised
5-37     Statutes, is amended to read as follows:
5-38           (d)  If a full-time active member with at least six years of
5-39     service becomes disabled or dies from heart or lung disease or
5-40     cancer, and the member successfully passed a physical examination
5-41     before the claimed disability or death or on beginning employment
5-42     as a firefighter, and the examination failed to reveal any evidence
5-43     of the heart or lung disease or cancer, that condition will be
5-44     presumed to have caused an on-duty disability for purposes of
5-45     determining eligibility for disability benefits under this section,
5-46     and the amount of the disability benefit is presumed to constitute,
5-47     unless the presumption is rebutted, [constitutes] the pension
5-48     amount that shall be used to determine  the death benefit payable
5-49     with respect to that member.  The on-duty disability presumption
5-50     may be rebutted only by clear and convincing evidence.  Another
5-51     statutory presumption regarding the  cause of illnesses or
5-52     conditions does not affect any benefit payable under this article.
5-53           SECTION 7.  Section 7(e), Article 6243e.2(1), Revised
5-54     Statutes, is amended to read as follows:
5-55           (e)  In addition to the monthly death benefit provided under
5-56     Subsection (a) of this section, if an active member or a member
5-57     receiving a service pension under Section 4 of this article or a
5-58     disability pension under Section 6 of this article dies on or after
5-59     July 1, 1998, the member's eligible survivors are entitled to a
5-60     one-time $5,000 death benefit, payable as a lump sum as follows:
5-61                 (1)  if the member is survived by an eligible spouse,
5-62     the eligible spouse is entitled to receive $5,000;
5-63                 (2)  if the member is not survived by an eligible
5-64     spouse, the member's eligible children are entitled to receive
5-65     $5,000, divided equally among those children;  [or]
5-66                 (3)  if the member is not survived by an eligible
5-67     spouse or an eligible child, the $5,000 death benefit shall be
5-68     divided equally among the eligible parents of the deceased member;
5-69     or
 6-1                 (4)  if the member is not survived by an eligible
 6-2     spouse, an eligible child, or an eligible parent, the $5,000 death
 6-3     benefit shall be paid to the deceased member's estate.
 6-4           SECTION 8.  Section 10, Article 6243e.2(1), Revised Statutes,
 6-5     is amended to read as follows:
 6-6           Sec. 10.  NONSTATUTORY BENEFIT INCREASES.  The benefits
 6-7     provided by this article may be increased if:
 6-8                 (1)  [the increase is first approved by] an actuary
 6-9     selected by the board who, if an individual, is a Fellow of the
6-10     Society of Actuaries, a Fellow of the Conference of Actuaries in
6-11     Public Practice, or a member of the American Academy of Actuaries
6-12     determines that the increase cannot reasonably be viewed as posing
6-13     a material risk of jeopardizing the fund's ability to pay any
6-14     existing benefit;
6-15                 (2)  a majority of the participating members of the
6-16     fund vote for the increase by a secret ballot;
6-17                 (3)  the increase does not deprive a member, without
6-18     the member's written consent, of a right to receive benefits that
6-19     have already become fully vested and matured in a member; and
6-20                 (4)  the State Pension Review Board approves the
6-21     determination by the actuary selected by the board that the
6-22     increase cannot reasonably be  viewed as posing a material risk of
6-23     jeopardizing the fund's ability to pay any existing benefit
6-24     [increase, which approval may not be unreasonably withheld].
6-25           SECTION 9.  Article 6243e.2(1), Revised Statutes, is amended
6-26     by adding Sections 10A and 10B to read as follows:
6-27           Sec. 10A.  ANNUAL SUPPLEMENTAL BENEFIT FOR CERTAIN RETIRED
6-28     MEMBERS AND ELIGIBLE SURVIVORS.  (a)  The board shall pay
6-29     supplemental benefits under this section to retired members, not
6-30     including deferred retirees, and to eligible survivors, not
6-31     including survivors of deferred retirees, if the requirements of
6-32     Subsection (b) of this section are met. The board shall pay the
6-33     supplemental benefits in January following a fiscal year of the
6-34     fund in which the requirements of Subsection (b) of this section
6-35     are met.
6-36           (b)  The board shall pay supplemental benefits under this
6-37     section if the fund actuary determines that, as of the end of any
6-38     fund fiscal year:
6-39                 (1)  the value of the fund's assets exceeds the amount
6-40     of the fund's accrued liability;
6-41                 (2)  the fund's gross rate of return on investments for
6-42     that fiscal year exceeds 9.25 percent; and
6-43                 (3)  payment of supplemental benefits will not result
6-44     in an increase of the municipality's contribution rate.
6-45           (c)  The board shall adopt rules and procedures to govern the
6-46     payment of benefits under this section and shall establish a
6-47     minimum income level consistent with the national poverty level set
6-48     by the United States Department of Health and Human Services.
6-49           (d)  The board shall determine an aggregate supplemental
6-50     benefit amount that may not exceed the lesser of:
6-51                 (1)  the amount by which the value of fund assets
6-52     exceeds the amount of accrued liability as determined under
6-53     Subsection (b)(1) of this section; or
6-54                 (2)  $4 million.
6-55           (e)  Based on the aggregate supplemental benefit amount
6-56     determined under Subsection (d) of this section,  the board shall
6-57     determine the amount of a lump-sum payment for each retired member
6-58     or eligible survivor.
6-59           (f)  In determining the lump-sum payment amount, the total
6-60     number of years since the commencement date of each retired
6-61     member's or eligible survivor's annual retirement or survivor
6-62     benefit shall be divided by the total number of years since the
6-63     commencement date of all retired members' and eligible survivors'
6-64     annual retirement or survivor benefit to establish a payment
6-65     percentage for each retired member and eligible survivor.
6-66           (g)  The payment percentage of each retired member and
6-67     eligible survivor shall be multiplied by the aggregate supplemental
6-68     benefit less the total amount of any payments made under Subsection
6-69     (i) of this section.
 7-1           (h)  The product of the computation under Subsection (g) of
 7-2     this section determines the lump-sum payment to the retired member
 7-3     or eligible survivor unless the lump-sum payment plus the annual
 7-4     retirement benefit is less than the minimum income level
 7-5     established by the board.
 7-6           (i)  If the lump-sum payment plus the annual retirement
 7-7     benefit is less than the minimum income level established by the
 7-8     board, the retired member or eligible survivor is entitled to
 7-9     receive an additional payment from the amount determined under
7-10     Subsection (d) of this section that will cause the recipient to
7-11     meet but not exceed the minimum income level.
7-12           (j)  The benefits commencement date for a retired member or
7-13     the eligible survivor of a retired member is the first day on which
7-14     the retired member most recently began  receiving pension benefits
7-15     from the fund.  The benefits commencement date for an eligible
7-16     survivor of an active member is the first day of receipt of
7-17     benefits as an eligible survivor.
7-18           (k)  Notwithstanding any other provision of this section, if
7-19     more than one eligible survivor is to receive a supplemental
7-20     benefit as a result of one deceased person under this section:
7-21                 (1)  only one eligible survivor is considered in
7-22     computations under this section other than computations under
7-23     Subdivision (2) of this subsection and as receiving the payments
7-24     received by all eligible survivors of the one deceased person; and
7-25                 (2)  the amount of payments under this section will be
7-26     paid to the eligible survivors in the same manner as payments under
7-27     Sections 7(a) and (b) of this article are made.
7-28           (l)  All actuarial determinations required under this section
7-29     must be made by the fund's actuary.
7-30           Sec. 10B.  ADDITIONAL LUMP-SUM RETIREMENT OR DEATH BENEFIT.
7-31     (a)  The board shall pay the following people a $4,000 lump-sum
7-32     payment from the fund, in addition to any other benefits, as soon
7-33     as administratively practicable after the date of the person's
7-34     retirement, if the person's retirement occurs or occurred after
7-35     June 30, 1998:
7-36                 (1)  each member who retires or retired after
7-37     completing 20 years of service and is eligible to receive service
7-38     pension benefits under Section 4 of this article; and
7-39                 (2)  each member who retires or retired and is eligible
7-40     to receive disability benefits under Section 6 of this article.
7-41           (b)  The board shall pay a $4,000 lump-sum payment from the
7-42     fund, in addition to any other benefits, to an eligible survivor of
7-43     a member:
7-44                 (1)  whose death occurs or occurred after June 30,
7-45     1998;
7-46                 (2)  who had not terminated active service; and
7-47                 (3)  who was ineligible to receive service pension
7-48     benefits under Section 4 of this article or disability benefits
7-49     under Section 6 of this article.
7-50           (c)  If more than one eligible survivor of one deceased
7-51     member exists, the amount of each survivor's benefit is determined
7-52     in the same manner as payment of death benefits is determined under
7-53     Section 7(e) of this article.  The board shall make payments under
7-54     Subsection (b) of this section as soon as administratively
7-55     practicable after the date of death of the member of whom each
7-56     recipient is an eligible survivor.
7-57           SECTION 10.  Sections 13(b) and (h), Article 6243e.2(1),
7-58     Revised Statutes, are amended to read as follows:
7-59           (b)  [The board shall establish minimum physical requirements
7-60     for membership in the fund that may not exceed the physical
7-61     requirements established by the Fire Fighters' and Police Officers'
7-62     Civil Service Commission under Section 143.022, Local Government
7-63     Code, and that must be the same for all applicants.]  At the time
7-64     that physical examinations are administered on behalf of the
7-65     municipality, each applicant must be provided written notice that a
7-66     copy of the results of the examination will be forwarded to the
7-67     board for the purpose of determining whether the applicant has a
7-68     preexisting condition that would be relevant to any determination
7-69     under Section 6 of this article [to determine eligibility for
 8-1     membership in the fund and the existence of any preexisting
 8-2     condition].  Not later than the 10th day after the date of a
 8-3     physical examination performed on an applicant for a beginning
 8-4     position in the fire department as required by Section 143.022,
 8-5     Local Government Code, the municipality shall provide to the board
 8-6     a copy of all documents resulting from the physical examination.
 8-7     The board may require additional physical examinations if necessary
 8-8     in determining the presence or absence of any preexisting condition
 8-9     [to determine whether the applicant meets the minimum physical
8-10     requirements for membership in the fund].  The fund shall pay the
8-11     cost of any additional physical examination the board requires.
8-12     [Within a reasonable time after receiving the examination reports
8-13     of an applicant, the board shall, on the basis of one or more
8-14     physical examinations, determine whether the applicant meets the
8-15     minimum physical requirements for membership in the fund.  The
8-16     board shall notify the applicant and the chief of the fire
8-17     department not later than the 10th calendar day after the date of
8-18     the board's decision on the applicant's satisfaction of the minimum
8-19     physical requirements.  If the board rejects the applicant, the
8-20     applicant may request further examination by a board of three
8-21     physicians appointed by the board at the expense of the applicant.
8-22     If a physician board finds that an applicant meets the minimum
8-23     physical requirements for membership in the fund, the board shall
8-24     accept the applicant for membership.]  If accepted by the board,
8-25     the applicant's membership in the fund is effective on being
8-26     appointed to the position of probationary firefighter.
8-27           (h)  If the municipality's actuarially determined
8-28     contribution rate computed in accordance with Subsection (d) of
8-29     this section would exceed the minimum contribution rate specified,
8-30     the benefits payable under Sections 4(d)[, 4(e),] and 7(e) of this
8-31     article may not be paid, an eligible spouse whose benefit is
8-32     reduced under Section 7(b) of this article may not be paid a
8-33     benefit if there are no other eligible survivors, and the
8-34     municipality's actuarially determined contribution rate shall be
8-35     recomputed on the basis of the assumption that those benefits are
8-36     suspended indefinitely.  If the recomputation results in an
8-37     actuarially determined contribution rate less than the minimum
8-38     contribution rate specified, a portion of the benefits shall be
8-39     paid, as determined by the board, to the extent that, with the
8-40     payments determined, the two contribution rates are equal.  This
8-41     subsection expires July 31, 1999, unless on that date the
8-42     municipality's actuarially determined contribution rate computed in
8-43     accordance with Subsection (d) of this section would exceed the
8-44     minimum contribution rate specified.
8-45           SECTION 11.  This Act takes effect November 1, 1999.
8-46           SECTION 12.  The importance of this legislation and the
8-47     crowded condition of the calendars in both houses create an
8-48     emergency and an imperative public necessity that the
8-49     constitutional rule requiring bills to be read on three several
8-50     days in each house be suspended, and this rule is hereby suspended.
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