By McCall, Tillery, Bosse, Chisum, Gallego            H.B. No. 1503
         77R1067 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation of the State Pension Review Board, to
 1-3     functions performed by the board, and to the funding of the board.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 801.102(b), Government Code, is amended to
 1-6     read as follows:
 1-7           (b)  Appointments to the board shall be made without regard
 1-8     to the race, color, disability [handicap], sex, religion, age, or
 1-9     national origin of the appointees.
1-10           SECTION 2. Sections 801.1061(a) and (c), Government Code, are
1-11     amended to read as follows:
1-12           (a)  It is a ground for removal from the board that [if] a
1-13     member:
1-14                 (1)  does not have at the time of taking office
1-15     [appointment] the qualifications required by Section 801.103 or
1-16     801.104;
1-17                 (2)  does not maintain during service on the board the
1-18     qualifications required by Section 801.103 or 801.104;
1-19                 (3)  is ineligible for membership under [violates a
1-20     prohibition established by] Section 801.1021;
1-21                 (4)  cannot discharge, because of illness or
1-22     disability, the member's duties for a substantial part of the
1-23     member's term [for which the member is appointed because of illness
1-24     or disability]; or
 2-1                 (5)  is absent from more than half of the regularly
 2-2     scheduled board meetings that the member is eligible to attend
 2-3     during a calendar year without an excuse approved [unless the
 2-4     absence is excused] by a majority vote of the board.
 2-5           (c)  If the executive director has knowledge that a potential
 2-6     ground for removal exists, the executive director shall notify the
 2-7     presiding officer of the board of the potential ground.  The
 2-8     presiding officer shall then notify the governor and the attorney
 2-9     general that a potential ground for removal exists.  If the
2-10     potential ground for removal involves the presiding officer, the
2-11     executive director shall notify the next highest ranking officer of
2-12     the board, who shall then notify the governor and the attorney
2-13     general that a potential ground for removal exists.
2-14           SECTION 3. Subchapter B, Chapter 801, Government Code, is
2-15     amended by adding Section 801.1062 to read as follows:
2-16           Sec. 801.1062.  TRAINING PROGRAM. (a)  A person who is
2-17     appointed to and qualifies for office as a member of the board may
2-18     not vote, deliberate, or be counted as a member in attendance at a
2-19     meeting of the board until the person completes a training program
2-20     that complies with this section.
2-21           (b)  The training program must provide the person with
2-22     information regarding:
2-23                 (1)  this chapter;
2-24                 (2)  the programs operated by the agency;
2-25                 (3)  the role and functions of the agency;
2-26                 (4)  the rules of the agency with an emphasis on the
2-27     rules that relate to disciplinary and investigatory authority;
 3-1                 (5)  the current budget for the agency;
 3-2                 (6)  the results of the most recent formal audit of the
 3-3     agency;
 3-4                 (7)  the requirements of:
 3-5                       (A)  the open meetings law, Chapter 551,
 3-6     Government Code;
 3-7                       (B)  the public information law, Chapter 552,
 3-8     Government Code;
 3-9                       (C)  the administrative procedure law,  Chapter
3-10     2001, Government Code; and
3-11                       (D)  other laws relating to public officials,
3-12     including conflict-of-interest laws; and
3-13                 (8)  any applicable ethics policies adopted by the
3-14     agency or the Texas Ethics Commission.
3-15           (c)  A person appointed to the board is entitled to
3-16     reimbursement, as provided by the General Appropriations Act, for
3-17     the travel expenses incurred in attending the training program
3-18     regardless of whether the attendance at the program occurs before
3-19     or after the person qualifies for office.
3-20           SECTION 4. Section 801.107, Government Code, is amended to
3-21     read as follows:
3-22           Sec. 801.107.  SUNSET PROVISION. The State Pension Review
3-23     Board is subject to Chapter 325 (Texas Sunset Act).  Unless
3-24     continued in existence as provided by that chapter, the board is
3-25     abolished and this chapter expires September 1, 2013 [2001].
3-26           SECTION 5. Section 801.110, Government Code, is amended to
3-27     read as follows:
 4-1           Sec. 801.110.  PRESIDING OFFICERS. The governor [board] shall
 4-2     designate a member of the board as the [select its] presiding
 4-3     officer of the board to serve in that capacity at the will of the
 4-4     governor [officers].
 4-5           SECTION 6. Section 801.111, Government Code, is amended by
 4-6     amending Subsection (c) and by adding Subsection (e) to read as
 4-7     follows:
 4-8           (c)  The board shall develop and implement policies that
 4-9     clearly separate [define] the policymaking [respective]
4-10     responsibilities of the board and the management responsibilities
4-11     of the executive director and the staff of the board.
4-12           (e)  The executive director or the executive director's
4-13     designee shall provide to board employees information and training
4-14     on the benefits and methods of participation in the state employee
4-15     incentive program.
4-16           SECTION 7. Section 801.1111, Government Code, is amended to
4-17     read as follows:
4-18           Sec. 801.1111.  EQUAL EMPLOYMENT OPPORTUNITY. (a)  The
4-19     executive director or the executive director's designee shall
4-20     prepare and maintain a written policy statement that implements [to
4-21     assure implementation of] a program of equal employment opportunity
4-22     to ensure that [under which] all personnel decisions [transactions]
4-23     are made without regard to race, color, disability [handicap], sex,
4-24     religion, age, or national origin.
4-25           (b)  The policy statement must include:
4-26                 (1)  personnel policies, including policies relating to
4-27     recruitment, evaluation, selection, [appointment,] training, and
 5-1     promotion of personnel, that show the intent of the agency to avoid
 5-2     the unlawful employment practices described by Chapter 21, Labor
 5-3     Code; and
 5-4                 (2)  an [a comprehensive] analysis of the extent to
 5-5     which the composition of the agency's personnel is in accordance
 5-6     with state and [board work force that meets] federal law and a
 5-7     description of [and state guidelines;]
 5-8                 [(3)  procedures by which a determination can be made
 5-9     of significant underutilization in the board work force of all
5-10     persons for whom federal or state guidelines encourage a more
5-11     equitable balance; and]
5-12                 [(4)]  reasonable methods to achieve compliance with
5-13     state and federal law [appropriately address those areas of
5-14     significant underutilization].
5-15           (c) [(b)]  A policy statement [prepared under Subsection (a)]
5-16     must:
5-17                 (1)  [cover an annual period,] be updated [at least]
5-18     annually;
5-19                 (2)  be reviewed by the state Commission on Human
5-20     Rights for compliance with Subsection (b)(1); [,] and
5-21                 (3)  be filed with the governor's office.
5-22           (d) [(c)]  The governor's office shall deliver a biennial
5-23     report to the legislature based on the information received under
5-24     Subsection (c) [(b)]. The report may be made separately or as a
5-25     part of other biennial reports made to the legislature.
5-26           SECTION 8. Section 801.113, Government Code, is amended to
5-27     read as follows:
 6-1           Sec. 801.113.  FUND. (a)  The State Pension Review Board fund
 6-2     is [created] in the state treasury.  Money in the fund may be
 6-3     appropriated only to assist in paying staff salaries, operating and
 6-4     actuarial expenses of the board, and for [such] activities [as]
 6-5     defined by Subsection (c) [(e) of this section].
 6-6           (b)  [In this section:]
 6-7                 [(1)  "Active member" means a person who is on the
 6-8     payroll of an employing entity included in the coverage of a public
 6-9     retirement system and who receives credit in the retirement system
6-10     for service performed in the position for which the person is paid.]
6-11                 [(2)  "Annuitant" means a person who receives periodic
6-12     payments from a public retirement system that are based on service
6-13     that was credited in the retirement system to a person who was an
6-14     active member.]
6-15           [(c)]  The governing board of any public retirement system
6-16     may not [vote to] make a [an annual] contribution to the State
6-17     Pension Review Board [not to exceed 50 cents for each active member
6-18     and annuitant of the retirement system as of September 1 of the
6-19     year for which the contribution is made.  The contribution is
6-20     payable in a lump sum].
6-21           (c) [(d)  Each public retirement system shall certify to the
6-22     board and to the comptroller of public accounts the amount of the
6-23     annual contribution to be made under Subsection (c) of this
6-24     section.  The comptroller by rule may prescribe the form and
6-25     content of certifications.  The comptroller shall deposit
6-26     remittances received under this subsection in the State Pension
6-27     Review Board fund.]
 7-1           [(e)]  The board is authorized to conduct training sessions,
 7-2     schools, or other educational activities for trustees and
 7-3     administrators of public retirement systems.  The board may also
 7-4     furnish other appropriate services such as actuarial studies or
 7-5     other requirements of systems and may establish appropriate fees
 7-6     for these activities and services.  [The fees may be based on
 7-7     whether or not the trustees, administrators, or systems contribute
 7-8     to the State Pension Review Board fund under Subsection (c) of this
 7-9     section.]  The net proceeds of these fees shall be deposited in the
7-10     fund.
7-11           (d) [(f)] Under the provisions of Section [Sections 403.094
7-12     and] 403.095, the dedication of the State Pension Review Board fund
7-13     is reenacted, and the fund is established as a special account
7-14     within the state treasury dedicated for the purposes defined by
7-15     Subsections (a) and (c) [(e)].
7-16           SECTION 9. Section 801.114, Government Code, is amended to
7-17     read as follows:
7-18           Sec. 801.114.  QUALIFICATIONS AND STANDARDS OF CONDUCT. The
7-19     executive director or the executive director's designee [board]
7-20     shall provide to [its] members of the board and to agency
7-21     employees, as often as necessary, information regarding the
7-22     requirements [their qualifications] for office or employment under
7-23     this chapter, including information regarding a person's [and
7-24     their] responsibilities under applicable laws relating to standards
7-25     of conduct for state officers or employees.
7-26           SECTION 10. Section 801.201, Government Code, is amended by
7-27     adding Subsection (c) to read as follows:
 8-1           (c)  The board by rule shall:
 8-2                 (1)  adopt a brief standard form that will assist the
 8-3     board in efficiently determining the actuarial soundness and
 8-4     current financial condition of a public retirement system; and
 8-5                 (2)  require that a retirement system submitting
 8-6     information required for the review or study described under
 8-7     Section 801.202(1) or (2) include the form with the submission.
 8-8           SECTION 11. Subchapter C, Chapter 801, Government Code, is
 8-9     amended by adding Section 801.207 to read as follows:
8-10           Sec. 801.207.  COMPLAINTS. (a)  The agency shall maintain a
8-11     file on each written complaint filed with the agency.  The file
8-12     must include:
8-13                 (1)  the name of the person who filed the complaint;
8-14                 (2)  the date the complaint is received by the agency;
8-15                 (3)  the subject matter of the complaint;
8-16                 (4)  the name of each person contacted in relation to
8-17     the complaint;
8-18                 (5)  a summary of the results of the review or
8-19     investigation of the complaint; and
8-20                 (6)  an explanation of the reason the file was closed,
8-21     if the agency closed the file without taking action other than to
8-22     investigate the complaint.
8-23           (b)  The agency shall provide to the person filing the
8-24     complaint and to each person who is a subject of the complaint a
8-25     copy of the agency's policies and procedures relating to complaint
8-26     investigation and resolution.
8-27           (c)  The agency, at least quarterly until final disposition
 9-1     of the complaint, shall notify the person filing the complaint and
 9-2     each person who is a subject of the complaint of the status of the
 9-3     investigation unless the notice would jeopardize an undercover
 9-4     investigation.
 9-5           SECTION 12. The designation of a presiding officer of the
 9-6     board under Section 801.110, Government Code, as amended by this
 9-7     Act, applies only to the designation of a presiding officer for a
 9-8     term of office that begins on or after the effective date of this
 9-9     Act.  The presiding officer who is serving immediately before the
9-10     effective date of this Act continues to serve as presiding officer
9-11     for the term for which the person was selected.
9-12           SECTION 13. This Act takes effect September 1, 2001.
9-13                          COMMITTEE AMENDMENT NO. 1
9-14           Amend H.B. 1503 as follows:
9-15           (1)  Beginning on page 5, line 26, strike SECTION 8 of the
9-16     bill.
9-17           (2)  Renumber subsequent SECTIONS of the bill appropriately.
9-18     77R8789 GJH-D                                               Telford