By:  Brown                                             S.B. No. 998
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to a firefighters' relief and retirement fund in certain
 1-2     municipalities.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1(11), Article 6243e.2(1), Revised
 1-5     Statutes, is amended to read as follows:
 1-6                 (11)  "Firefighter" means a full-time, fully paid,
 1-7     active, classified member of a regularly organized fire department
 1-8     of an incorporated municipality with a fund established under this
 1-9     article, including a member who has made a DROP election, but is
1-10     otherwise described in this definition.
1-11           SECTION 2.  Section 2(l), Article 6243e.2(1), Revised
1-12     Statutes, is amended to read as follows:
1-13           (l)  The board shall hold regular monthly meetings at a time
1-14     and place as the board by resolution designates and may hold
1-15     special meetings on call of the chair as the chair determines is
1-16     necessary, keep accurate minutes of board meetings and records of
1-17     board proceedings, keep separate from all other municipal funds all
1-18     money for the use and benefit of the fund, and keep a record of
1-19     claims, receipts, and disbursements.  A disbursement from the fund
1-20     may be made in accordance with procedures established by the board.
1-21     The municipality shall allow municipal employees who are board
1-22     trustees to promptly attend all board and committee meetings.  Each
 2-1     board trustee who is an employee of the municipality shall provide
 2-2     the municipality with reasonable notice of the trustee's required
 2-3     attendance at regularly scheduled board and committee meetings.
 2-4     The municipality shall allow board trustees the time required to
 2-5     travel to and attend educational workshops and legislative hearings
 2-6     and meetings regarding proposed amendments to this article if
 2-7     attendance is consistent with a board trustee's duty to the board.
 2-8     The municipality may not use the trustee's attendance or travel
 2-9     related to attendance described by this subsection to reduce or
2-10     withhold the wages that the trustee would otherwise earn.  The
2-11     board may reimburse from the fund the municipality for costs
2-12     incurred by the municipality for allowing a trustee's attendance
2-13     under this subsection.
2-14           SECTION 3.  Section 3, Article 6243e.2(1), Revised Statutes,
2-15     is amended by adding Subsections (h) and (i) to read as follows:
2-16           (h)  The board may purchase with board funds a life insurance
2-17     policy from an insurer licensed to do business in this state to
2-18     cover the amount of lump-sum death benefits that may become payable
2-19     to a member's eligible survivor or estate.  The amount payable
2-20     under a policy under this subsection on the death of one member may
2-21     not exceed the amount of the lump-sum death benefits payable under
2-22     this article.  The board shall be the policyholder of any life
2-23     insurance purchased under this subsection and shall use any
2-24     proceeds received from the insurer to satisfy any lump-sum death
2-25     benefits owed under this article.
2-26           (i)  The board may pay with fund assets the reasonable
 3-1     expenses incurred in providing annual or semiannual meetings of
 3-2     retired members, spouses of retired members, and eligible survivors
 3-3     that facilitate communication regarding benefits paid under this
 3-4     article if the expenses do not materially affect the total assets
 3-5     of the fund.  Reasonable expenses may include the purchase of items
 3-6     or services necessary to promote and facilitate these meetings.
 3-7           SECTION 4.  Section 4, Article 6243e.2(1), Revised Statutes,
 3-8     is amended to read as follows:
 3-9           Sec. 4.  SERVICE PENSION BENEFITS.  (a)  A member with at
3-10     least 20 years of participation who terminates active service for
3-11     any reason other than death is entitled to receive a service
3-12     pension provided by this section.
3-13           (b)  A member who terminates active service on or after
3-14     November 1, 1997, and who has completed at least 20 years of
3-15     participation in the fund on the effective date of termination of
3-16     service is entitled to a monthly service pension, beginning on the
3-17     effective date of termination of active service, in an amount equal
3-18     to 50 percent of the member's average monthly salary, plus three
3-19     percent of the member's average monthly salary for each year of
3-20     participation in excess of 20 years, but not in excess of 30 years
3-21     of participation, for a maximum total benefit of 80 percent of the
3-22     member's average monthly salary.
3-23           (c)  A member who terminated active service before November
3-24     1, 1997, and who had completed at least 20 years of participation
3-25     on the effective date of termination of service is entitled on
3-26     retirement to receive a monthly service pension in the amount
 4-1     provided under the law in effect on the effective date of that
 4-2     retirement, unless a subsequent benefit increase is expressly made
 4-3     applicable to that member.
 4-4           (d)  [A member with a service or disability pension, other
 4-5     than a deferred retiree or an active member who has elected the
 4-6     DROP under Section 5(b) of this article, who began receiving
 4-7     benefits from the fund before November 1, 1997, or a member's
 4-8     beneficiary who began receiving benefits from the fund before
 4-9     November 1, 1997, shall be paid a one-time additional benefit of
4-10     $5,000 from the fund, payable in a lump sum as soon as
4-11     administratively practicable after November 1, 1997.]
4-12           [(e)]  The total monthly benefit payable to a retired or
4-13     disabled member, other than a deferred retiree or active member who
4-14     has elected the DROP under Section 5(b) of this article, or each
4-15     eligible survivor of a deceased member, shall be increased by $100,
4-16     beginning with the monthly payment made for July 1999.  That
4-17     additional benefit may not be increased under Section 11(c) of this
4-18     article.
4-19           [(f)  The benefit under Subsection (d) of this section shall
4-20     be paid to the member or to the eligible spouse of a deceased
4-21     member.  If the member is deceased and there is no eligible spouse,
4-22     the benefit shall be divided equally among and paid to each
4-23     eligible child of the member, or, if there is no eligible child,
4-24     the benefit shall be divided among the eligible parents of the
4-25     member.]
4-26           SECTION 5.  Section 5, Article 6243e.2(1), Revised Statutes,
 5-1     is amended to read as follows:
 5-2           Sec. 5.  DEFERRED RETIREMENT OPTION PLAN.  (a)  A member who
 5-3     is eligible to receive a service pension under Section 4 of this
 5-4     article and who remains in active service may elect to participate
 5-5     in the deferred retirement option plan provided by this section.
 5-6     On subsequently terminating active service, a member who elected
 5-7     the DROP may apply for a monthly service pension under Section 4 of
 5-8     this article, except that the effective date of the member's
 5-9     election to participate in the DROP will be considered the member's
5-10     retirement date for determining the amount of the member's monthly
5-11     service pension. The member may also apply for any DROP benefit
5-12     provided under this section on terminating active service.  Except
5-13     as provided by Subsection (l) [(n)] of this section, an election to
5-14     participate in the DROP, once approved by the board, is
5-15     irrevocable.
5-16           (b)  A member may elect to participate in the DROP by
5-17     complying with the election process established by the board. The
5-18     member's election may be made at any time beginning on the date the
5-19     member has completed 20 years of participation in the fund and is
5-20     otherwise eligible for a service pension under Section 4 of this
5-21     article.  The election becomes effective on the first day of the
5-22     month following the month in which the board approves the member's
5-23     DROP election.  Beginning on the effective date of the member's
5-24     DROP election, amounts equal to the deductions made from the
5-25     member's salary under Section 13(c) of this article shall be
5-26     credited to the member's DROP account.  If a DROP participant
 6-1     remains in active service after the seventh [fifth] anniversary of
 6-2     the effective date of the member's DROP election, subsequent
 6-3     deductions from the member's salary under Section 13(c) of this
 6-4     article may not be credited to the member's DROP account and may
 6-5     not otherwise increase any benefit payable from the fund for the
 6-6     member's service.
 6-7           (c)  Beginning in the month a member's DROP election becomes
 6-8     effective, an amount equal to the monthly service pension the
 6-9     member would have received under Section 4 of this article and
6-10     Section 11(c) of this article, if applicable, had the member
6-11     terminated active service on the effective date of the member's
6-12     DROP election shall be credited to a DROP account maintained for
6-13     the member.  That monthly credit to the member's DROP account shall
6-14     continue until the earlier of the date the member terminates active
6-15     service or the seventh [fifth] anniversary of the effective date of
6-16     the member's DROP election.
6-17           (d)  A member's DROP account shall be credited with earnings
6-18     or losses at an annual rate equal to the average annual return
6-19     earned by the fund over the five years preceding, but not
6-20     including, the year during which the credit is given.  Those
6-21     earnings or losses shall be computed and credited at a time and in
6-22     a manner determined by the board, except that earnings or losses
6-23     shall be credited not less frequently than once in each 13-month
6-24     period and shall take into account partial years of participation
6-25     in the DROP. If the member has not terminated active service, the
6-26     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
 8-1     balance in installments may not be credited with interest after the
 8-2     date of payment of the first installment.]
 8-3           [(g)  The board may adopt by a majority vote the provisions
 8-4     of Subsections (h) and (i) of this section.]
 8-5           [(h)]  In lieu of a single lump-sum payment, a member may
 8-6     elect to receive partial payments from the member's DROP account
 8-7     for each calendar year, in an amount elected by the member.  The
 8-8     board may establish procedures concerning partial payments,
 8-9     including limitations on timing and frequency of those payments. A
8-10     member who elects partial payments may, at any time, elect to
8-11     receive the member's entire remaining DROP account balance in a
8-12     single lump-sum payment.
8-13           (g) [(i)]  If a member elects partial payments, for periods
8-14     after a member terminates active service and before the member's
8-15     DROP account is completely distributed, the member's DROP account
8-16     shall be credited with earnings or losses of the fund as computed
8-17     under Subsection (d) of this section and reduced by an
8-18     administrative fee of one percent of the account balance each year,
8-19     determined before adjustment for earnings or losses for the year.
8-20           (h) [(j)]  An election by a member concerning single lump-sum
8-21     [installment] or partial payments as provided by Subsection (e) or
8-22     (f) [Subsections (f) (i)] of this section must satisfy the
8-23     requirements of Section 401(a)(9) of the code.  All distributions
8-24     and changes in form of distribution must be made in a manner and at
8-25     a time that comply with that provision of the code.
8-26           (i) [(k)]  A member who elects to participate in the DROP is
 9-1     considered to have terminated active service on the effective date
 9-2     of the member's DROP election for purposes of computing and
 9-3     providing service pension benefits under Section 4 of this article
 9-4     and for purposes of computing and providing death benefits under
 9-5     Section 7 of this article.  A salary earned or additional years of
 9-6     participation completed after the member's DROP election becomes
 9-7     effective may not be considered in the computation of retirement,
 9-8     disability, or death benefits unless a DROP revocation is made as
 9-9     prescribed by Subsection (l) [(n)] of this section.
9-10           (j) [(l)]  If a DROP participant dies before complete
9-11     distribution of the member's DROP account has been made, the
9-12     member's eligible beneficiaries, determined as follows:
9-13                 (1)  if the member is survived by a spouse [person] who
9-14     was the member's spouse on the member's last day of active service
9-15     and one or more eligible children, one-half of the member's DROP
9-16     account balance shall be paid to that eligible spouse, and the
9-17     remaining one-half shall be divided equally among the member's
9-18     eligible children;
9-19                 (2)  if the member is survived by a spouse described by
9-20     Subdivision (1) of this subsection, but not by an eligible child,
9-21     the member's entire DROP account balance shall be paid to the
9-22     surviving spouse;
9-23                 (3)  if the member is survived by one or more eligible
9-24     children, but not by a spouse described by Subdivision (1) of this
9-25     subsection, the member's DROP account balance shall be divided
9-26     equally among the eligible children;
 10-1                (4)  if the member is not survived by a spouse
 10-2    described by Subdivision (1) of this subsection or an eligible
 10-3    child, the member's DROP account balance shall be divided equally
 10-4    among the member's eligible parents;
 10-5                (5)  if the member is not survived by a spouse
 10-6    described by Subdivision (1) of this subsection, an eligible child,
 10-7    or an eligible parent, the member's DROP account balance shall be
 10-8    distributed in accordance with the member's beneficiary designation
 10-9    filed with the board or, if the member has failed to file a valid
10-10    beneficiary designation, to the member's estate; and
10-11                (6)  if a member's spouse described by Subdivision (1)
10-12    of this subsection was not married to the member on the date the
10-13    member's DROP election became effective, the spouse shall receive a
10-14    reduced benefit equal to the benefit otherwise payable to the
10-15    surviving spouse under this subsection, multiplied by the
10-16    percentage of the period between the member's DROP election and the
10-17    date the member left active service during which the spouse and the
10-18    member were married, and the amount by which the spouse's benefit
10-19    is reduced shall be divided among any other eligible survivors as
10-20    if the member did not have an eligible spouse.
10-21          (k) [(m)]  An eligible beneficiary's share of a deceased
10-22    member's DROP account shall be distributed as soon as
10-23    administratively practicable after the member's death in the form
10-24    of a single lump-sum payment.  All distributions to beneficiaries
10-25    under this subsection must be made in a manner and at a time that
10-26    comply with Section 401(a)(9) of the code.
 11-1          (l) [(n)]  Except as otherwise provided by this subsection, a
 11-2    member who participates in the DROP is ineligible for disability
 11-3    benefits described by Section 6 of this article, and the member's
 11-4    survivors are ineligible to receive enhanced death benefits
 11-5    described by Section 7(c) of this article.  A DROP participant who
 11-6    is determined under Section 6(c) of this article to be incapable of
 11-7    performing any substantial gainful employment because of an on-duty
 11-8    disability may retroactively revoke the member's DROP election if
 11-9    the revocation occurs before the member receives a distribution
11-10    from the member's DROP account or retirement benefits.  If a DROP
11-11    participant dies in the course of the performance of the member's
11-12    duty or dies as a result of an on-duty disability described by
11-13    Section 6(c) of this article, the DROP participant's eligible
11-14    survivors under Section 7 of this article and the member's eligible
11-15    DROP beneficiaries under Subsection (j) [(l)] of this section may,
11-16    by unanimous agreement, retroactively revoke the member's DROP
11-17    election if the revocation occurs before receipt of a distribution
11-18    from the member's DROP account, service pension benefits under
11-19    Section 4 of this article, or death benefits under Section 7 of
11-20    this article.  For purposes of this subsection, an on-duty
11-21    disability must have occurred after the effective date of a
11-22    member's election to participate in the DROP. If a DROP election
11-23    revocation is made as prescribed by this subsection, the member's
11-24    DROP account is not distributed, and the member or the member's
11-25    beneficiary, as applicable, is entitled to benefits under this
11-26    article as if a DROP election had not been made.
 12-1          (m) [(o)]  A retired member who previously participated in
 12-2    the DROP and who returns to active service is subject to the terms
 12-3    of this section in effect at the time of the member's return to
 12-4    active service.
 12-5          (n) [(p)]  After August 31, 2000, the board may set a date
 12-6    after which additional members will not be allowed to elect to
 12-7    participate in the DROP. A member whose election to participate in
 12-8    the DROP becomes effective before a deadline established by the
 12-9    board is entitled to continue participating in the DROP.
12-10          (o)  A member who has made a DROP election is not  classified
12-11    as retired, eligible to be paid, or eligible to accrue or to
12-12    receive any benefit that is accrued or received by a member who has
12-13    terminated active service or by the eligible survivors of deceased
12-14    members unless the member who has made the DROP election has
12-15    terminated active service.
12-16          SECTION 6.  Section 6(d), Article 6243e.2(1), Revised
12-17    Statutes, is amended to read as follows:
12-18          (d)  If a full-time active member with at least six years of
12-19    service becomes disabled or dies from heart or lung disease or
12-20    cancer, and the member successfully passed a physical examination
12-21    before the claimed disability or death or on beginning employment
12-22    as a firefighter, and the examination failed to reveal any evidence
12-23    of the heart or lung disease or cancer, that condition will be
12-24    presumed to have caused an on-duty disability for purposes of
12-25    determining eligibility for disability benefits under this section,
12-26    and the amount of the disability benefit is presumed to constitute,
 13-1    unless the presumption is rebutted, [constitutes] the pension
 13-2    amount that shall be used to determine the death benefit payable
 13-3    with respect to that member.  The on-duty disability presumption
 13-4    may be rebutted only by clear and convincing evidence.  Another
 13-5    statutory presumption regarding the  cause of illnesses or
 13-6    conditions does not affect any benefit payable under this article.
 13-7          SECTION 7.  Section 7(e), Article 6243e.2(1), Revised
 13-8    Statutes, is amended to read as follows:
 13-9          (e)  In addition to the monthly death benefit provided under
13-10    Subsection (a) of this section, if an active member or a member
13-11    receiving a service pension under Section 4 of this article or a
13-12    disability pension under Section 6 of this article dies on or after
13-13    July 1, 1998, the member's eligible survivors are entitled to a
13-14    one-time $5,000 death benefit, payable as a lump sum as follows:
13-15                (1)  if the member is survived by an eligible spouse,
13-16    the eligible spouse is entitled to receive $5,000;
13-17                (2)  if the member is not survived by an eligible
13-18    spouse, the member's eligible children are entitled to receive
13-19    $5,000, divided equally among those children;  [or]
13-20                (3)  if the member is not survived by an eligible
13-21    spouse or an eligible child, the $5,000 death benefit shall be
13-22    divided equally among the eligible parents of the deceased member;
13-23    or
13-24                (4)  if the member is not survived by an eligible
13-25    spouse, an eligible child, or an eligible parent, the $5,000 death
13-26    benefit shall be paid to the deceased member's estate.
 14-1          SECTION 8.  Section 10, Article 6243e.2(1), Revised Statutes,
 14-2    is amended to read as follows:
 14-3          Sec. 10.  NONSTATUTORY BENEFIT INCREASES.  The benefits
 14-4    provided by this article may be increased if:
 14-5                (1)  [the increase is first approved by] an actuary
 14-6    selected by the board who, if an individual, is a Fellow of the
 14-7    Society of Actuaries, a Fellow of the Conference of Actuaries in
 14-8    Public Practice, or a member of the American Academy of Actuaries
 14-9    determines that the increase cannot reasonably be viewed as posing
14-10    a material risk of jeopardizing the fund's ability to pay any
14-11    existing benefit;
14-12                (2)  a majority of the participating members of the
14-13    fund vote for the increase by a secret ballot;
14-14                (3)  the increase does not deprive a member, without
14-15    the member's written consent, of a right to receive benefits that
14-16    have already become fully vested and matured in a member; and
14-17                (4)  the State Pension Review Board approves the
14-18    determination by the actuary selected by the board that the
14-19    increase cannot reasonably be  viewed as posing a material risk of
14-20    jeopardizing the fund's ability to pay any existing benefit
14-21    [increase, which approval may not be unreasonably withheld].
14-22          SECTION 9.  Article 6243e.2(1), Revised Statutes, is amended
14-23    by adding Sections 10A and 10B to read as follows:
14-24          Sec. 10A.  ANNUAL SUPPLEMENTAL BENEFIT FOR CERTAIN RETIRED
14-25    MEMBERS AND ELIGIBLE SURVIVORS.  (a)  The board shall pay
14-26    supplemental benefits under this section to retired members, not
 15-1    including deferred retirees, and to eligible survivors, not
 15-2    including survivors of deferred retirees, if the requirements of
 15-3    Subsection (b) of this section are met. The board shall pay the
 15-4    supplemental benefits in January following a fiscal year of the
 15-5    fund in which the requirements of Subsection (b) of this section
 15-6    are met.
 15-7          (b)  The board shall pay supplemental benefits under this
 15-8    section if the fund actuary determines that, as of the end of any
 15-9    fund fiscal year:
15-10                (1)  the value of the fund's assets exceeds the amount
15-11    of the fund's accrued liability;
15-12                (2)  the fund's gross rate of return on investments for
15-13    that fiscal year exceeds 9.25 percent; and
15-14                (3)  payment of supplemental benefits will not result
15-15    in an increase of the municipality's contribution rate.
15-16          (c)  The board shall adopt rules and procedures to govern the
15-17    payment of benefits under this section and shall establish a
15-18    minimum income level consistent with the national poverty level set
15-19    by the United States Department of Health and Human Services.
15-20          (d)  The board shall determine an aggregate supplemental
15-21    benefit amount that may not exceed the lesser of:
15-22                (1)  the amount by which the value of fund assets
15-23    exceeds the amount of accrued liability as determined under
15-24    Subsection (b)(1) of this section; or
15-25                (2)  $4 million.
15-26          (e)  Based on the aggregate supplemental benefit amount
 16-1    determined under Subsection (d) of this section, the board shall
 16-2    determine the amount of a lump-sum payment for each retired member
 16-3    or eligible survivor.
 16-4          (f)  In determining the lump-sum payment amount, the total
 16-5    number of years since the commencement date of each retired
 16-6    member's or eligible survivor's annual retirement or survivor
 16-7    benefit shall be divided by the total number of years since the
 16-8    commencement date of all retired members' and eligible survivors'
 16-9    annual retirement or survivor benefit to establish a payment
16-10    percentage for each retired member and eligible survivor.
16-11          (g)  The payment percentage of each retired member and
16-12    eligible survivor shall be multiplied by the aggregate supplemental
16-13    benefit less the total amount of any payments made under Subsection
16-14    (i) of this section.
16-15          (h)  The product of the computation under Subsection (g) of
16-16    this section determines the lump-sum payment to the retired member
16-17    or eligible survivor unless the lump-sum payment plus the annual
16-18    retirement benefit is less than the minimum income level
16-19    established by the board.
16-20          (i)  If the lump-sum payment plus the annual retirement
16-21    benefit is less than the minimum income level established by the
16-22    board, the retired member or eligible survivor is entitled to
16-23    receive an additional payment from the amount determined under
16-24    Subsection (d) of this section that will cause the recipient to
16-25    meet but not exceed the minimum income level.
16-26          (j)  The benefits commencement date for a retired member or
 17-1    the eligible survivor of a retired member is the first day on which
 17-2    the retired member most recently began  receiving pension benefits
 17-3    from the fund.  The benefits commencement date for an eligible
 17-4    survivor of an active member is the first day of receipt of
 17-5    benefits as an eligible survivor.
 17-6          (k)  Notwithstanding any other provision of this section, if
 17-7    more than one eligible survivor is to receive a supplemental
 17-8    benefit as a result of one deceased person under this section:
 17-9                (1)  only one eligible survivor is considered in
17-10    computations under this section other than computations under
17-11    Subdivision (2) of this subsection and as receiving the payments
17-12    received by all eligible survivors of the one deceased person; and
17-13                (2)  the amount of payments under this section will be
17-14    paid to the eligible survivors in the same manner as payments under
17-15    Sections 7(a) and (b) of this article are made.
17-16          (l)  All actuarial determinations required under this section
17-17    must be made by the fund's actuary.
17-18          Sec. 10B.  ADDITIONAL LUMP-SUM RETIREMENT OR DEATH BENEFIT.
17-19    (a)  The board shall pay the following people a $4,000 lump-sum
17-20    payment from the fund, in addition to any other benefits, as soon
17-21    as administratively practicable after the date of the person's
17-22    retirement, if the person's retirement occurs or occurred after
17-23    June 30, 1998:
17-24                (1)  each member who retires or retired after
17-25    completing 20 years of service and is eligible to receive service
17-26    pension benefits under Section 4 of this article; and
 18-1                (2)  each member who retires or retired and is eligible
 18-2    to receive disability benefits under Section 6 of this article.
 18-3          (b)  The board shall pay a $4,000 lump-sum payment from the
 18-4    fund, in addition to any other benefits, to an eligible survivor of
 18-5    a member:
 18-6                (1)  whose death occurs or occurred after June 30,
 18-7    1998;
 18-8                (2)  who had not terminated active service; and
 18-9                (3)  who was ineligible to receive service pension
18-10    benefits under Section 4 of this article or disability benefits
18-11    under Section 6 of this article.
18-12          (c)  If more than one eligible survivor of one deceased
18-13    member exists, the amount of each survivor's benefit is determined
18-14    in the same manner as payment of death benefits is determined under
18-15    Section 7(e) of this article.  The board shall make payments under
18-16    Subsection (b) of this section as soon as administratively
18-17    practicable after the date of death of the member of whom each
18-18    recipient is an eligible survivor.
18-19          SECTION 10.  Sections 13(b) and (h), Article 6243e.2(1),
18-20    Revised Statutes, are amended to read as follows:
18-21          (b)  [The board shall establish minimum physical requirements
18-22    for membership in the fund that may not exceed the physical
18-23    requirements established by the Fire Fighters' and Police Officers'
18-24    Civil Service Commission under Section 143.022, Local Government
18-25    Code, and that must be the same for all applicants.] At the time
18-26    that physical examinations are administered on behalf of the
 19-1    municipality, each applicant must be provided written notice that a
 19-2    copy of the results of the examination will be forwarded to the
 19-3    board for the purpose of determining whether the applicant has a
 19-4    preexisting condition that would be relevant to any determination
 19-5    under Section 6 of this article [to determine eligibility for
 19-6    membership in the fund and the existence of any preexisting
 19-7    condition].  Not later than the 10th day after the date of a
 19-8    physical examination performed on an applicant for a beginning
 19-9    position in the fire department as required by Section 143.022,
19-10    Local Government Code, the municipality shall provide to the board
19-11    a copy of all documents resulting from the physical examination.
19-12    The board may require additional physical examinations if necessary
19-13    in determining the presence or absence of any preexisting condition
19-14    [to determine whether the applicant meets the minimum physical
19-15    requirements for membership in the fund].  The fund shall pay the
19-16    cost of any additional physical examination the board requires.
19-17    [Within a reasonable time after receiving the examination reports
19-18    of an applicant, the board shall, on the basis of one or more
19-19    physical examinations, determine whether the applicant meets the
19-20    minimum physical requirements for membership in the fund.  The
19-21    board shall notify the applicant and the chief of the fire
19-22    department not later than the 10th calendar day after the date of
19-23    the board's decision on the applicant's satisfaction of the minimum
19-24    physical requirements.  If the board rejects the applicant, the
19-25    applicant may request further examination by a board of three
19-26    physicians appointed by the board at the expense of the applicant.
 20-1    If a physician board finds that an applicant meets the minimum
 20-2    physical requirements for membership in the fund, the board shall
 20-3    accept the applicant for membership.]  If accepted by the board,
 20-4    the applicant's membership in the fund is effective on being
 20-5    appointed to the position of probationary firefighter.
 20-6          (h)  If the municipality's actuarially determined
 20-7    contribution rate computed in accordance with Subsection (d) of
 20-8    this section would exceed the minimum contribution rate specified,
 20-9    the benefits payable under Sections 4(d)[, 4(e),] and 7(e) of this
20-10    article may not be paid, an eligible spouse whose benefit is
20-11    reduced under Section 7(b) of this article may not be paid a
20-12    benefit if there are no other eligible survivors, and the
20-13    municipality's actuarially determined contribution rate shall be
20-14    recomputed on the basis of the assumption that those benefits are
20-15    suspended indefinitely.  If the recomputation results in an
20-16    actuarially determined contribution rate less than the minimum
20-17    contribution rate specified, a portion of the benefits shall be
20-18    paid, as determined by the board, to the extent that, with the
20-19    payments determined, the two contribution rates are equal.  This
20-20    subsection expires July 31, 1999, unless on that date the
20-21    municipality's actuarially determined contribution rate computed in
20-22    accordance with Subsection (d) of this section would exceed the
20-23    minimum contribution rate specified.
20-24          SECTION 11.  This Act takes effect November 1, 1999.
20-25          SECTION 12.  The importance of this legislation and the
20-26    crowded condition of the calendars in both houses create an
 21-1    emergency and an imperative public necessity that the
 21-2    constitutional rule requiring bills to be read on three several
 21-3    days in each house be suspended, and this rule is hereby suspended.