1-1 By: Tillery (Senate Sponsor - Armbrister) H.B. No. 2122
1-2 (In the Senate - Received from the House May 7, 2001;
1-3 May 7, 2001, read first time and referred to Committee on State
1-4 Affairs; May 11, 2001, reported favorably by the following vote:
1-5 Yeas 8, Nays 0; May 11, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the administration of a statewide retirement system for
1-9 volunteer firefighters and other emergency services personnel.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 14(c) and (d), Texas Statewide Emergency
1-12 Services Retirement Act (Article 6243e.3, Vernon's Texas Civil
1-13 Statutes), are amended to read as follows:
1-14 (c) The state board of trustees shall employ a professional
1-15 investment manager [counselor], a legal reserve life insurance
1-16 company licensed to do business in the State of Texas, or a bank
1-17 with trust powers under the laws of the State of Texas. The
1-18 investment manager [counselor] or bank employed by the board must
1-19 be a nationally known organization whose business includes managing
1-20 investments [investment counseling] for public pension and
1-21 retirement funds. A life insurance company employed by the board
1-22 must provide a group annuity contract that guarantees expenses and
1-23 provides a formula for determining the amount of funds available
1-24 for transfer at the end of a contract period. The contract may not
1-25 include requirements that guaranteed life annuities be purchased.
1-26 (d) The cost of the investment management services
1-27 [counseling service] may be paid from income earned by investments.
1-28 SECTION 2. Section 19, Texas Statewide Emergency Services
1-29 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
1-30 is amended to read as follows:
1-31 Sec. 19. COMMISSIONER'S DUTIES. (a) The commissioner may
1-32 not administer any pension plan other than the pension system
1-33 created by this Act and the system created by Chapter 125, Acts of
1-34 the 45th Legislature, Regular Session, 1937, as amended (Article
1-35 6243e, Vernon's Texas Civil Statutes).
1-36 (b) [(c)] The commissioner and the state board of trustees
1-37 shall assemble and disseminate the information necessary for the
1-38 disclosure requirements concerning the pension system as outlined
1-39 in Section 16 of this Act.
1-40 (c) [(d)] The commissioner is responsible for recovering any
1-41 fraudulently acquired benefits. If it appears that fraud has
1-42 occurred, the commissioner shall notify the local board and the
1-43 claimant and hold a hearing. If after the hearing the commissioner
1-44 decides that benefits have been or are being fraudulently acquired,
1-45 he shall seek action in a court of appropriate jurisdiction.
1-46 (d) [(e)] The commissioner shall collect the revenues for
1-47 the fund from the local boards of trustees or the governing bodies.
1-48 (e) [(f)] The commissioner may request and administer
1-49 additional state funds in an emergency.
1-50 (f) [(g)] The commissioner shall require annual reports from
1-51 the local boards of trustees.
1-52 (g) [(h)] The commissioner may at any reasonable time
1-53 examine the records and accounts of local boards of trustees.
1-54 (h) [(i)] The commissioner may recommend to the state board
1-55 of trustees rules to implement this Act.
1-56 (i) [(j)] The commissioner shall keep a copy of all rules
1-57 promulgated under this Act on file in the commissioner's office. A
1-58 copy of the rules shall be placed with each local board of trustees
1-59 and shall be made available for public inspection at any reasonable
1-60 time.
1-61 (j) [(k)] The commissioner shall prepare the necessary forms
1-62 for use by local boards of trustees.
1-63 (k) [(l)] The commissioner shall prepare an annual report on
1-64 the activity and status of the fund. The report shall go to the
2-1 governor, the lieutenant governor, and the speaker of the house.
2-2 (l) [(m)] The commissioner shall oversee the distribution of
2-3 all benefits. The commissioner shall make benefit payments to
2-4 claimants after receiving a copy of a local board of trustees'
2-5 decision in favor of a claim and reviewing that decision.
2-6 (m) [(n)] If the commissioner overrules a local board's
2-7 decision, he shall immediately notify the local board and the
2-8 claimant.
2-9 (n) [(o)] After a hearing conducted by the State Office of
2-10 Administrative Hearings, the commissioner shall determine each
2-11 appeal from a local board of trustees decision and issue a written
2-12 opinion in compliance with the procedures required by this Act.
2-13 (o) [(p)] The commissioner shall keep a written transcript
2-14 of all proceedings and hearings required by this Act.
2-15 SECTION 3. Section 20(a), Texas Statewide Emergency Services
2-16 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
2-17 is amended to read as follows:
2-18 (a) There is a state board of trustees composed of nine
2-19 persons [active members]. Six trustees must be active members of
2-20 the fund, and three trustees must be persons who have experience in
2-21 the fields of finance, securities investment, or pension
2-22 administration.
2-23 SECTION 4. Section 21(c), Texas Statewide Emergency Services
2-24 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
2-25 is amended to read as follows:
2-26 (c) After a hearing conducted by the State Office of
2-27 Administrative Hearings on the appeal of a decision of a local
2-28 board of trustees, the board shall determine each appeal from a
2-29 commissioner's decision based on the hearing record.
2-30 SECTION 5. Section 22(a), Texas Statewide Emergency Services
2-31 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
2-32 is amended to read as follows:
2-33 (a) The local board of trustees is composed of the
2-34 following:
2-35 (1) one representative selected by the governing body;
2-36 (2) five active members representing a participating
2-37 department chosen by a majority of the emergency services personnel
2-38 in the department who are eligible to participate in the pension
2-39 system; and
2-40 (3) two residents of a participating political
2-41 subdivision who are chosen by the other members of the board.
2-42 SECTION 6. (a) Sections 20(a) and 22(a), Texas Statewide
2-43 Emergency Services Retirement Act (Article 6243e.3, Vernon's Texas
2-44 Civil Statutes), as amended by this Act, apply only to the
2-45 selection of a trustee of a board of trustees under the Texas
2-46 Statewide Emergency Services Retirement Act that occurs on or after
2-47 the effective date of this Act.
2-48 (b) A person who is serving as a trustee immediately before
2-49 the effective date of this Act may complete the trustee's term of
2-50 office, and the trustee's qualifications for serving as a trustee
2-51 are governed by the law in effect immediately before the effective
2-52 date of this Act until the date that trustee's term expires.
2-53 SECTION 7. This Act takes effect September 1, 2001.
2-54 * * * * *