1-1 AN ACT
1-2 relating to the administration of a statewide retirement system for
1-3 volunteer firefighters and other emergency services personnel.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 14(c) and (d), Texas Statewide Emergency
1-6 Services Retirement Act (Article 6243e.3, Vernon's Texas Civil
1-7 Statutes), are amended to read as follows:
1-8 (c) The state board of trustees shall employ a professional
1-9 investment manager [counselor], a legal reserve life insurance
1-10 company licensed to do business in the State of Texas, or a bank
1-11 with trust powers under the laws of the State of Texas. The
1-12 investment manager [counselor] or bank employed by the board must
1-13 be a nationally known organization whose business includes managing
1-14 investments [investment counseling] for public pension and
1-15 retirement funds. A life insurance company employed by the board
1-16 must provide a group annuity contract that guarantees expenses and
1-17 provides a formula for determining the amount of funds available
1-18 for transfer at the end of a contract period. The contract may not
1-19 include requirements that guaranteed life annuities be purchased.
1-20 (d) The cost of the investment management services
1-21 [counseling service] may be paid from income earned by investments.
1-22 SECTION 2. Section 19, Texas Statewide Emergency Services
1-23 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
1-24 is amended to read as follows:
2-1 Sec. 19. COMMISSIONER'S DUTIES. (a) The commissioner may
2-2 not administer any pension plan other than the pension system
2-3 created by this Act and the system created by Chapter 125, Acts of
2-4 the 45th Legislature, Regular Session, 1937, as amended (Article
2-5 6243e, Vernon's Texas Civil Statutes).
2-6 (b) [(c)] The commissioner and the state board of trustees
2-7 shall assemble and disseminate the information necessary for the
2-8 disclosure requirements concerning the pension system as outlined
2-9 in Section 16 of this Act.
2-10 (c) [(d)] The commissioner is responsible for recovering any
2-11 fraudulently acquired benefits. If it appears that fraud has
2-12 occurred, the commissioner shall notify the local board and the
2-13 claimant and hold a hearing. If after the hearing the commissioner
2-14 decides that benefits have been or are being fraudulently acquired,
2-15 he shall seek action in a court of appropriate jurisdiction.
2-16 (d) [(e)] The commissioner shall collect the revenues for
2-17 the fund from the local boards of trustees or the governing bodies.
2-18 (e) [(f)] The commissioner may request and administer
2-19 additional state funds in an emergency.
2-20 (f) [(g)] The commissioner shall require annual reports from
2-21 the local boards of trustees.
2-22 (g) [(h)] The commissioner may at any reasonable time
2-23 examine the records and accounts of local boards of trustees.
2-24 (h) [(i)] The commissioner may recommend to the state board
2-25 of trustees rules to implement this Act.
2-26 (i) [(j)] The commissioner shall keep a copy of all rules
2-27 promulgated under this Act on file in the commissioner's office. A
3-1 copy of the rules shall be placed with each local board of trustees
3-2 and shall be made available for public inspection at any reasonable
3-3 time.
3-4 (j) [(k)] The commissioner shall prepare the necessary forms
3-5 for use by local boards of trustees.
3-6 (k) [(l)] The commissioner shall prepare an annual report on
3-7 the activity and status of the fund. The report shall go to the
3-8 governor, the lieutenant governor, and the speaker of the house.
3-9 (l) [(m)] The commissioner shall oversee the distribution of
3-10 all benefits. The commissioner shall make benefit payments to
3-11 claimants after receiving a copy of a local board of trustees'
3-12 decision in favor of a claim and reviewing that decision.
3-13 (m) [(n)] If the commissioner overrules a local board's
3-14 decision, he shall immediately notify the local board and the
3-15 claimant.
3-16 (n) [(o)] After a hearing conducted by the State Office of
3-17 Administrative Hearings, the commissioner shall determine each
3-18 appeal from a local board of trustees decision and issue a written
3-19 opinion in compliance with the procedures required by this Act.
3-20 (o) [(p)] The commissioner shall keep a written transcript
3-21 of all proceedings and hearings required by this Act.
3-22 SECTION 3. Section 20(a), Texas Statewide Emergency Services
3-23 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
3-24 is amended to read as follows:
3-25 (a) There is a state board of trustees composed of nine
3-26 persons [active members]. Six trustees must be active members of
3-27 the fund, and three trustees must be persons who have experience in
4-1 the fields of finance, securities investment, or pension
4-2 administration.
4-3 SECTION 4. Section 21(c), Texas Statewide Emergency Services
4-4 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
4-5 is amended to read as follows:
4-6 (c) After a hearing conducted by the State Office of
4-7 Administrative Hearings on the appeal of a decision of a local
4-8 board of trustees, the board shall determine each appeal from a
4-9 commissioner's decision based on the hearing record.
4-10 SECTION 5. Section 22(a), Texas Statewide Emergency Services
4-11 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
4-12 is amended to read as follows:
4-13 (a) The local board of trustees is composed of the
4-14 following:
4-15 (1) one representative selected by the governing body;
4-16 (2) five active members representing a participating
4-17 department chosen by a majority of the emergency services personnel
4-18 in the department who are eligible to participate in the pension
4-19 system; and
4-20 (3) two residents of a participating political
4-21 subdivision who are chosen by the other members of the board.
4-22 SECTION 6. (a) Sections 20(a) and 22(a), Texas Statewide
4-23 Emergency Services Retirement Act (Article 6243e.3, Vernon's Texas
4-24 Civil Statutes), as amended by this Act, apply only to the
4-25 selection of a trustee of a board of trustees under the Texas
4-26 Statewide Emergency Services Retirement Act that occurs on or after
4-27 the effective date of this Act.
5-1 (b) A person who is serving as a trustee immediately before
5-2 the effective date of this Act may complete the trustee's term of
5-3 office, and the trustee's qualifications for serving as a trustee
5-4 are governed by the law in effect immediately before the effective
5-5 date of this Act until the date that trustee's term expires.
5-6 SECTION 7. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2122 was passed by the House on May
5, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2122 was passed by the Senate on May
22, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor